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HomeMy WebLinkAbout93-025 . . . RESOLUTION NO. 93-25 RESOLUTION OF THE BOARD OF SUPERVISORS OF MOHAVE COUNTY, ARIZONA PROVIDING FOR THE ISSUANCE: AND SALE OF $8,000,000 PRINCIPAL AMOUNT OF LAKE RAVASU UNIFIED SCHOOL DISTRICT NO. 1 OF MORAVE COUNTY, ARIZONA SCHOOL IMPROVEMENT BONDS, PROJECT OF 1991, SERIES B (1993); PROVIDING :E'OR THE ANNUAL LEVY OF A TAX FOR THE PAYMENT OF TEE BONDS; ACCEPTING A PROPOSAL FOR THE PURCHASE OF THE BONDS; AND PRESCRIBING 'PERMS AND PROVISIONS AND APPOINTING A REGISTRAR AND PAYING AGENT WITH RESPECT TO THE BONDS WHEREAS, a special bond election was held in and for Lake Havasu Unified School District No. 1 of Mohave County, Arizona (the "District") on February 12, 1991, at which time a majority of the qualified electors of the District voted in favor of authorizing the District to issue school improvement bonds in the principal amount of $24,000,000 and $8,000,000 of such authorization remains available for the issuance of school improvement bonds; and WHEREAS, the Governing Board of the District now desires that school improvement bonds of this authorization in the principal amount of $8,000,000 be issued and sold at this time; NOW, THEREFORE, IT IS RESOLVED BY TEE BOARD OF SUPERVISORS OF MORAVE COUNTY, ARIZONA, AS FOLLOWS: Section 1. Authorization. There is hereby authorized to be issued and sold an issue of bonds of the District in an aggregate principal amount of $8,000,000. The bonds so authorized shall be designated Lake Eavasu Unified School District No. 1 of Mohave County, Arizona School Improvement Bonds, Project of 1991, Series B (1993) (the "Bonds"), and shall be issued and sold as dirE!cted by the Board of Supervisors of Mohave County, Arizona (the "Board of Supervisors") in accordance with the provisions of applicable laws. Section 2. Terms. The Bonds will be dated February 1, 1993, and will bear interest from their date to the maturity of each of the Bonds at rates of not to exceed 12% per annum, the first interest payment date to be January 1, 1994, interest payable semiannually thereafter on July 1 and January 1 of each year, during the term of the Bonds, the Bonds to be in the denomination of $5,000 each or integral multiples thereof, the Bonds to be in fully registered form. The Bonds wil1 mature on July 1 in the years 1999 to 2012, inclusive, as follows: r- . Year Amount Year Amount 1999 $215,000 2006 $ 345,000 2000 250,000 2007 360,000 2001 265,000 2008 380,000 2002 275,000 2009 400,000 2003 295,000 2010 410,000 2004 310,000 2011 2,025,000 2005 325,000 2012 2,145,000 The Bonds shall be sold under the terms and conditions set forth in the Notice Inviting Proposals for the Purchase of Bonds heretofore adopted by the Board of Supervisors and shal1 have such terms and provisions as are set forth in such Notice and in this resolution, including the form of Bond attached as Exhibit A, which is a part of this resolution. Section 3. Prior Redemption. . A. Optional Redemption. Bonds maturing on or before July 1, 2003, are not subj ect to call for redemption pr ior to matur i ty. Bonds maturing on or after July 1, 2004, are subject to call for redemption prior to maturity in any order of maturity specified by the District and by lot within a maturity, in whole or in part, on July 1, 2003, or on any interest payment date thereafter by the payment of the principal amount of each Bond called for redemption plus accrued interest to the date fixed for redemption plus a premium payable from any source lawfully available therefor, the premium to be computed as follows: Redemption Dates Premium July 1, 2003 through June 30, 2004 July 1, 2004 through June 30, 2005 July 1, 2005 and thereafter without premium 1.0% 0.5% B. Notice. Notice of redemption of any Bond will be mailed not more than 60 nor less than 30 days prior to the date set for redemption to the registered holder of the Bond or Bonds being redeemed at the address shown on the bond register maintained by the registrar. . C. Effect of Call for Redemption. On the date designated for redemption by notice given as herein provided, the Bonds so called for redemption shall become and be due and payable at the redemption pr ice provided for redemption o.f such Bonds on such date, and, if moneys for payment of the redemption price and accrued interest are held in separate accounts by the paying agent, interest on such Bonds or portions of Bonds so -2- . . . called for redemption shall cease to accrue, such Bonds shall cease to be entitled to any benefit or security hereunder and the holders of such Bonds shall have no rights in respect thereof except to receive payment of the redemption price thereof and accrued interest and such Bonds shall be deemed paid and no longer outstanding. D. Redemption of Less Than All of a Bond. The District may redeem an amount which is included in a Bond in the denomination in excess of, but divisible by, $5,000. In that event, the registered owner shall submi t the Bond for partial redemption and the paying agent shall make such partial payment and the registrar shall CclUse to be issued a new Bond in a pr incipal amount which reflects the redemption so made to be authenticated and delivered to the registered owner thereof. Section 4. Security. For the purpose of paying the principal of, interest on, premium (if any) on early redemption and costs of administration of the registration and payment of the Bonds there shall be levied on all the taxable property in the District a continuing, direct, annual, ad valorem tax sufficient to pay all such principal, interest, premium and administration costs on the Bonds as the same become due, such taxes to be levied, assessed and collected at the same time and in the same manner as other taxes are levied, assessed and collected. The proceeds of the taxes shall be kept in a special fund entitled the Debt Service Fund of the District and shall be used only for the payment of principal, interest, premium (if any) and administration costs as above-stated. Section 5. Use of Proceeds. The net proceeds from the sale of the Bonds, after payment of the expenses of issuance, shall be set aside and deposited by the Mohave County Treasurer (the "Treasurer") in a separate fund entitled "Lake Havasu Unified School Distr ict No. 1 of Mohave County, Ar izona Bond Fund" of the District. This resolution shall be construed as consent of Board of Supervisors to invest such funds, pending use, in any of the securitiE~s allowed by A.R.S. S 15-l025. The proceeds of the Bonds shall be expended only for the purpose set forth in the ballot used at the special bond election wherein issuance of the Bonds was approved. Monies earned as interest or otherwise derived from the investment of the proceeds of the sale of the Bonds shall be credited to the Bond Fund in accordance with A.R.S. S 15-1024.C as authorized under the separate ballot question approved by the voters on February 12, 1991. Section 6. Form of Bonds. Pursuant to A.R.S. S 35- 491, a fully registered bond form is adopted as an alternative to the form of bond provided in A.R.S. S 15-1023. A registrar and paying agent will be appointed for the administration of the -3- . . . Bonds. The Bonds shall be in substantially the form of Exhibit "A", attached hereto and incorporated by reference herein, with such necessary and appropriate omissions, insertions and variations as are permitted or required hereby or by the Notice Inviting Proposals for the Purchase of Bonds and are approved by those officers executing the Bonds and execution thereof by such officers shall constitute conclusive evidence of such approval. . The Bonds may have notations, legends or endorsements required by law, securities exchange rule or usage. Each Bond shall show both the date of the issue and the date of such Bond's authentication and registration. The Bonds are prohibited from being converted to coupon or bearer Bonds without the consent of Board of Supervisors and approval of bond counsel. Section 7. Execution of Bonds. The Bonds shall be executed for and on behalf of the District by the President and attested by the Clerk of the Governing Board and countersigned by the Chairman of Board of Supervisors by their fatsimile signatures. If an officer whose signature is on a Bond no longer holds that office at the time the Bond is authenticated and registered, the Bond shall nevertheless be valid. A Bond shall not be valid or binding until authenticated by the manual signature of an authorized officer of the registrar. The signature of the authorized officer of the registrar shall be conclusive evidence that the Bond has been authenticated and issued under this resolution. Section 8. Mutilated, Lost or Destroyed Bonds. In case any Bond becomes mutilated or destroyed or lost, the District shall cause to be executed and delivered a new Bond of like date and tenor in exchange and substitution for and upon the cancellation of such mutilated Bond or in lieu of and in substitution for such Bond destroyed or lost, upon the registered owner's paying the reasonable expenses and charges of the Distr ict in connection therewi th and, in the case of the Bond destroyed or lost, filing INi th the Treasurer by the registered owner evidence satisfactory to the Treasurer that such Bond was destroyed or lost, and furni.shing the Treasurer with a sufficient indemnity bond pursuant to A.R.S. S 47-8405. Section 9. Acceptance of Proposal. The proposal of Kemper Securities Inc. for the purchase of the Bonds is hereby accepted and the Bonds are hereby ordered saId to such purchaser -4- . . . in accordance with the terms of such proposal and the terms and conditions of the Notice Inviting Proposals for the Purchase of Bonds. The Treasurer is hereby authorized and directed to cause the Bonds to be delivered to the purchaser upon receipt of payment therefor and satisfaction of the other conditions for delivery thereof in accordance with the terms of the sale. Section 10. Registrar. The District will maintain an office or agency where Bonds may be presented for registration of transfer (the "Registrar") and an office or agency where Bonds may be presented for payment (the "Paying Agent"). The District may appoint one or more coregistrars or one or more addi tional Paying Agents. The Registrar and Paying Agent may make reasonable rules and set reasonable requirements for their respective functions with rl:spect to the holders of the Bonds. Initially, The Valley National Bank of Arizona is appointed to act as Registrar and Paying Agent with respect to the Bonds. The District may change the Registrar or Paying Agent wi thout notice to or conSE:nt of holders of the Bonds and the District may act in any such capacity. The Registrar's J:ee payment agreement between Mohave County (the "County") and the District is hereby approved in substantially the form on file with the Clerk, to provide for the payment of the costs of registration and printing of the Bonds. The contract for Registrar's services is hereby approved in substantially the form on file with the Clerk to provide for the payment of Registrar I s services. Upon full execution of the Registrar's fee payment agreement, the Chairman of the Board of Supervisors and the Treasurer are hereby authorized and directed to execute and deliver the contract. Each Paying Agent shall be required to agree in writing that the Paying Agent will hold in trust for the benefit of the holders of the Bonds all money held by the Paying Agent for the payment of pr incipal of and interest and any premium on the Bonds. The Registrar may appoint an authenticating agent acceptable to the Distr ict to authenticate Bonds. An authenticating agent may authenticate Bonds whenever the Registrar may do so. Each reference in this resolution to authentication by the Registrar includes authentication by an authenticating agent acting on behalf of and in the name of the Registrar and subject to the Registrar's direction. -5- . . . The Registrar shall keep a register of the Bonds, the registered owners of the Bonds and of transfer of the Bonds. When Bonds are presented to the Registrar or a coregistrar with a request to register transfer, the Registrar shall register the transfer on the registration books if its requirements for transfer are met and shall authenticate and deliver one or more Bonds registered in the name of the transferee of the same principal amount, maturity and rate of interest as the surrender Bonds. The "Record Date" for the Bonds shall be the close of business of the Registrar on the 15th day of the month preceding an interest payment date. Bonds presented to the Registrar for transfer after the close ()f business on the Record Date and before the close of businE~ss on the next subsequent interest payment date will be registe!red in the name of the transferee but the interest payment will be made payable to and mailed to the registered owners shown on the books of the Registrar as of the close of business on the respective Record Date. The Registrar shall authenticate Bonds for original issue up to $16,000,000 aggregate principal amount upon the written request of the Treasurer. The Registrar shall keep a register of the Bonds and of their transfer. The aggregate principal amount of Bonds outstanding at any time may not exceed that amount except for replacement Bonds as to which the requirements of the Registrar and the -District are met. Section 11. Resolution a Contract. This resolution shall constitute a contract between the District and the registered owners of the Bonds and shall not be repealed or amended in any manner which would impair, impede or lessen the rights of the registered owners of the Bonds then outstanding. Section 12. Tax Covenants. In consideration of the purchase and acceptance of the Bonds by the owners thereof and, as authorized by Arizona Revised Statutes, Title 35, Chapter 3, Article 7 enacted as Chapter 226, Laws of 1986, and in consideration of retaining the exemption from federal income taxes of interest income on the Bonds, the County covenants with the owners from time to time of the Bonds to neither take nor fail to take any action which action or failure to act is within its power and authority and would result in interest on the Bonds becoming subject to inclusion in gross income for federal income tax purposes. The County agrees that it will comply with such requirements as ~n the opinion of Chapman and Cutler ("bond counsel") are necessary to prevent interest on the Bonds becoming subject to inclusion in gross income for federal income tax purposes. Such requirementf~ may include but are not limited to making further specific covenants; making truthful certifications -6- . . . and representations and glvlng necessary assurances: complying with all representations, covenants and assurances contained in certificates or agreements to be prepared by bond counsel: to pay to the United States of America any required amounts representing rebates of arbitrage profits~ relating to the Bonds: filing forms, statements and supporting documents as may be required under the federal tax laws: limiting the term of and yield on investments made with moneys relating to the Bonds: and limiting the use of the proceeds of the Bonds and property financed thereby. Section 13. Severabili ty. If any section, paragraph, subdivision, sentence, clause or phrase of this resolution is for any reason held to be illegal or unenforceable, such decision will not affect the validity of the remaining portions of this resolution. The Board of Supervisors hereby declares that it would have adopted this resolution and each and every other section, paragraph, subdivision, sentence, clause or phrase hereof and authorized the issuance of the Bonds pursuant hereto irrespective of the fact that anyone or more sections, paragraphs, subdivisions, sentences, clauses or phrases of this resolution may be held illegal, invalid or unenforceable. Section 14. Ratification of Actions. All actions of the officers and agents of the District, the County or Board of Supervisors which conform to the purposes and intent of this resolution and which further the issuance and sale of the Bonds as contemplated by this resolution whether heretofore or hereafter taken are hereby ratified, confirmed and approved. Any changes made in the Notice Inviting Proposals for the Purchase of Bonds which do not conform to the prior order of Board of Supervisors are hereby ratified. The proper officers and agents of the District and the County are hereby authorized and directed to do all such acts and things and to execute and deliver all such documents on behalf of the District as may be necessary to carry out the terms and intent of this resolution. -7- . . . PASSED, ADOPTED Supervisors of Mohave County, ATTEST: AND APPROVED by the Board Arizona; on January 19, 1993. I J / ~aft(;;yd~ of -8- . . . EXHIBIT A (Face of Bond) LAKE HAVASU UNLinED SCHOOL DISTRICT NO. 1 OF MOHAVE COUNTY, ARIZONA SCHOOL IMPROVEMENT BONDS, PROJECT OF 1991, SERIES B (1993) Number: Denomination: $ Interest Rate Maturity Date Original Issue Date CUSIP % February 1, 1993 Registered Owner: Principal Amount: DOLLARS LAKE HAVASU UNIFIED SCHOOL DISTRICT NO. 1 OF MOHAVE COUNTY, ARIZONA (the "Distr ict"), for value received, hereby promises to pay to the registered owner identified above, or registered assigns as provided herein, on the maturity date set forth above, the principal amount set forth above, and to pay interest on the unpaid principal amount at the interest rate shown above. Certain bonds of the issue of which this bond is one are subject to call for redemption prior to maturity in accordance with the terms set forth on the reverse of this bond. Interest is payable on July 1 and January 1 of each year commencing January 1, 1994, and will accrue from the most recent date to which interest has been paid, or, if no interest has been paid, from the original issue date set forth above. Interest will be computed on the basis of a 360-day year comprised of twelve 30-day months. Principal, interest and any premium are payable in lawful money of the United States of America. Interest will be paid by check payable in such money drawn on the paying agent and payable to the order of and mailed to the registered owner at the address shown on the registration books maintained by the registrar at the close of business on the record date as explained on the reverse hereof. Principal and any premium will A-I . . . be paid when due to the re9istered owner upon surrender of this bond for payment at the designated office of the paying agent, which on the original issue date is the principal corporate trust office of The Valley National Bank of Arizona in Phoenix, Arizona. See the reverse side of this bond for additional provisions. It is hereby certified and recited that all conditions, acts and things required by the Constitution and laws of the State of Arizona to exist, to occur and to be performed precedent to and in the issuance of this bond exist, have occurred and have been performed and that the issue of bonds of which this is one, together with all other indebtedness of the District, is within every debt and other limi t prescr ibed by the Consti tution and laws of the State of Arizona, and that due provision has been made for the levy and collection of a direct, annual, ad valorem tax upon all of the taxable property in the Distr ict for the payment of this bond and of the interest hereon as each becomes due. The District has caused this bond to be executed by the President and attested by the Clerk of Governing Board of the District and countersigned by the Chairman of the Board of Supervisors of Mohave County, Ar izona, which signatures may be facsimile signatures. A-2 . . . This bond is not valid or binding upon the Distr ict without the manually affixed signature of an authorized representative of the registrar. LAKE RAVASU UNIFIED SCHOOL DISTRICT NO. 1 OF MORAVE COUNTY, ARIZONA President, Governing Board ATTEST: Clerk, Governing Board COUNTERSIGNED: Chairman, Board of Supervisors DATE OF AUTHENTICATION AND REGISTRATION: A-3 . . . CERTIFICA'I~E OF AUTHENTICATION This bond District No. 1 of Bonds, Project of resolution mentioned is one of the Lake Havasu Unified School Mohave County, Arizona School ImprOvement 1991, Series B (1993), described in the on the reverse hereof. THE VALLEY NATION BANK OF AIUZONA, as Registrar Authorized Representative (Form of Reverse Side of Bond) This bond is one of an issue of school improvement bonds in the total principal amount of $8,000,000 of like tenor except as to maturity date, rate of interest and number, issued by the Distr ict to provide funds to make those school improvements approved by a major i ty vote of qualified electors voting at a special bond election duly called and held in and for the Distr ict on February 12, 1991, pursuant to a resolution of the Board of Supervisors of Mohave County, Arizona duly adopted pr ior to the issuance hereof, and pursuant to the Constitution and laws of the State of l~rizona relative to the issuance and sale of school improvement bonds, and all amendments thereto, and all other laws of the State of Arizona thereunto enabling. For the punctual payment of this bond and the interest hereon and for the levy .and collection of ad valorem taxes sufficient for that pUrpOSE!, the full faith and credit of the District are hereby irrevocably pledged. Bonds maturing on or before July 1, 2003, are not subject to call for redemption prior to maturity. Bonds maturing on or after July 1, 2004, are subject to call for redemption prior to maturity in any order of maturity designated by the District and by lot within a maturity, in whole or in part, on July 1, 2003, or on any interest payment date thereafter by the payment of the principal amount of each bond called for redemption pIus accrued interest to the date fixed for redemption plus a premium payable from any source lawfully available therefor, the premiu~ to be computed as follows: A-4 . . . Redemption Dates July 1, 2003 through June 30, 2004 July 1, 2004 through June 30, 2005 July 1, 2005 and thereafter without premium Premium 1.0% 0.5% Notice of redemption of any bond will be mailed not more than 60 nor less than 30 days prior to the date set for redemption to the registered owner of the bond or bonds being redeemed at the address shown on the bond register maintained by the registrar. The registrar er paying agent may be changed by the District without notice. This bond is transferrable by the registered owner in person or by his attorney duly authorized in writing at the designated office of the registrar upon surrender and cancellation of this bond, but only in the manner and subject to the limitation and upon payment of the charges provided in the authorizing resolution. Upon such transfer a new bond or bonds of the same aggregate pr incipal amount, matur i ty and interest rate will be issued to the transferee in exchange. The registrar may require a holder, ameng other things, to furnish appropriate endorsements and transfer documents and to pay any taxes required by law. The Distr ict has chosen the 15th day of the month preceding an interest payment date as the record date for this issue of bonds, unless such date is a Saturday, Sunday or holiday, in which case the record date will be deemed to be the previous business day. Should this bond be submitted to the registrar for transfer during the per iod commencing after the close of business on the record date and continuing to and including the next interest payment date, ownership will be transferred in the normal manner but the next interest payment will be made payable toO and mailed to the owner shown on the registrar's books at the close of business on the record date. The registrar may, but need net, register the transfer of a bond which has been selected for redemption and need not register the transfer of any bond for a period of 15 days before a selection of bonds to be redeemed; if the transfer of any bond which has been called or selected for call for redemption in whole or in part is registered, any net ice of redemption which has been given to the transferor will be binding upon the transferee and a copy ef the notice of redemption will be delivered to the transferee along with the bond or bonds. Bonds of this issue are issuable only in ful1y registered form in the denomination of $5,000 each or integral multiples thereof. A-5 . . . The District, the registrar and the paying agent may treat the registered owner of this bond as the absolute owner for the purpose of receiving principal, interest and any premium and for all other purposes and none of them shall be affected by any notice to the contrary. ALL FEES AND COSTS OF TRANSFER SHALL BE PAID BY THE TRANSFBROR. The following abbreviations, when used in the inscr iption on the face oj: this bond, shall be construed as though they were written out in fu11 according to applicable laws or regulations: TEN COM-as tenants in common TEN ENT-as tenants by the entireties JT TEN-as joint tenants with right of survivorship and not as tenants in common UNIF GIFT MIN ACT- Custodian (Cust) (Minor) under Uniform Gifts to Minors Act (State) Additional abbrevi.ations may also be used though not in list above (Form of Assignment) FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto (Name and Address of Transferee) the within bond and all rights thereunder, and hereby irrevocably constitutes and appoints , attorney to transfer the within bond on the books kept for registration thereof, with full power of substitution in the premises. A-6 . . . Dated Signature Guaranteed: Commercial bank, trust company or member of a national securities exchange Note: The signature(s) on this assignment must correspond with the name(s) as written on the face of the wi thin registered bond in every particular without alteration or enlargement or any change whatsoever. A-7 . . . r PROPOSAL FOR ~l'HE PURCHASE OF $8,000,000 LAKE HAVASU UNIFIED SCHOOL DISTRICT NO. 1 OF MOHAVE COUNTY SCHOOL IMPROVEMENT BONDS, PROJECT OF 1991, SERIES B (1993) January 18, 1993 Board of Supervisors Mohave County, Arizona Office of the Clerk 809 East Beale Street Kingman, Arizona 86401 Ladies and Gentlemen: On behalf of the group listed below and pursuant to the Notice Inviting Proposals for the Purchase of Bonds, we offer to purchase the $8,000,000 principal amount of Lake Havasu Unified School Distr ict No. 1 of Mohave County, Ar izona School Improvement Bonds, Project of 1991, Series B (1993), dated February 1, 1993. This offE!r is being made for all of said bonds and for not less than all, maturing on July 1 in the years and amounts and bearing interest at the rate or rates set forth in the following schedule: Principal InterE!st principal Interest Year Amount RatE! Year Amount Rate 1999 $215,000 2006 $ 345,000 2000 250,000 2007 360,000 2001 265,000 2008 380,000 2002 275,000 2009 400,000 2003 295,000 2016 410,000 2004 310,000 2011 2,025,000 2005 325,000 2012 2,145,000 We wil1 pay therefor $8,000,000 pIus a premium of $ and accrued interest from the date of the bonds to the date of deliver. . . . This proposal is made for prompt acceptance and is made with the understanding that: the opinion of Chapman and Cutler, Attorneys at Law, Phoenix, Arizona, approving the legality of the bonds in all respects will be delivered with the bonds when paid in full. In accordance with your Notice Inviting Proposals and as evidence of our good faith, we hand you herewith a certified check drawn on a bank doing business in the State of Arizona in the amount of $160,000. The proceeds of such check are to be applied in partial payment of the bonds if our propo~al is accepted and the bonds an~ awarded to us, or to be returned promptly to us in the event. we are not awarded the bonds, or to be forfeited as full liquidated damages if we fail to fulfill the terms of this proposal. Respectfully submitted, For Information Only and Not a Part of this Proposal: Gross Interest Cost $ Less Premium Net Interest Cost Average Net Interest Cost (For your information you will find attached a list of the group of underwriters associated with us in this proposal.) -2-