HomeMy WebLinkAbout0176.092(.
March 12. 1992
Honorable city council
Palo Alto, California
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SALE OF '1,7S0,000 CITY OF ~1tLO ~r"To. UTILITY fiEVE~E ______ BOWPS. 1992
SERrES A
Members of the Council:
Report in Brief
This report requests that Council adopt the attached Resolution
selling $4,750,000 city of Palo Alto Utility Revenue Bonds, 1992
SerieQ A.
Baskqround
On February 24, 1992 Council authorized the issuance of $4,75Q~OOO
in Utility Revenue Bonds to financ~ extensions and improvemen~s to
the storm and surface vater syster.-.. The Official Statement and
Notice of Sale containing detailed informa~ion about the bond issue
and inviting bids far the purchase of the bonds have been ilridely
distributed to se~urity dealers and financial institutions. The
bond issue ~as rated "Aa" by Moody's and AA+ by Standard and Poor's
investors r3ting services --an extr~rnely good rating~ particularly
for a revenue bond.
Bond bids .... ill be received up to 11:00 a.:rn., ~~onday, March 16,
1992, at the office of Jones, Hall. Hill & White.
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NeX~~-ti! ;~~;:.
The next step in the iss-lIanee of Utility Revenue Bonds is tl.e award
of sale to the bidder offering the Jowest net interest cost to the
City. The City Counci 1 'Will then aW'ard the sale on the same day
CMR: 176:92
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are opened on MJ!lrcb. 16·,. 19.92.
hi,\"" .. _ .... ~ .... ~ .... {ll .............. ,... ..... u{..:I.n.,.;
M.;~~h-16: --i992 -~~;ti;i.-... ----
o
J.. lI1e'aJ.ot:'andum swnmarizing all bond
-t;~ -('~'~~-,:,i! ~~=-~:"~ ~4; ;-2.~~!:= .::t ';..~~
The City will receive proceeds from the sale of the bonds approxi
mately two to three weeks after the award of sale.
ataff R.eomaendatiop
It is recommended that the Council adopt the attached Resol~tion
selling $4,750,000 City of Falo Alto Utility Revenue Bonds, 1992
Series A. This Resolution has been reviewad and approved as to
fo~ by the City A~torneyts Office.
Respectfully submitted,
#~3.#-£
GORDON B. FORD
Related ~s: CMR:407:9
ClIR:427:9
C!ffi:510:9
CMR:548:9
CI'\R:160:91
CMR:209: 91
ClIR:269:91
CMR:407!~.1
CMR:llO:92
CMR:176:92 2
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RESOLUTION NO.
A RESOLUTION
OF nt! COUNCIL OF THE CITY OF PAL.O ALTO
APPROVING AND AIJTHORIZJNQ THE ISSUANCE OF
$4.7~OOO PAlNCIPAL AMOUNT OF UTILfTY REVENUE BONDI!, 1m a .. RIES A. AND AUTHORIZlNQ AHD DIRECTlNI) ;OO:CUTluN
0' !'IRST 8UPPLEME~AL INDENTURE OF TRUST RELATlNCl THERETO.
AWARDINCl SALE Of SUCH SEAlES OF BONDS,
AND AUTHORIZING OFFICIAL ACTION
RESOLVED, by Ihe Co\JncIl of Ihe City of Palo AIIo, Callfomla, !hal
WHEREAS, lIle CIty, after dus 'nveoIIg1lllon and deJllleratlon, has delermlned that ~ Is In
lIle puIlrlC Inter881 01 tile CIIy at IhIB ~me to prlMde ~ the Istllanoe of I1l; CIty of Palo Mo utility
Reven ue Bonda, 1 eS2 SerlllS A (the • Bonda,), under the provf81one of Chapl8l' 12.28
(comme<lCing wfth Seclicn 12.2s.o10r of !he Palo Altc MunJcJpal Code (the 'law") for !he PIJ'P.Q8:8
01 financing certaIn improvemllTl8lo !he Blel'm and eurfa<>e -.mer 8y8Iem component of the CityS
utility Emetprise:
WHER EAS, the Bonds 8/lI proposed to be Issued pursuant to on IndentU re 01 Trost
dated u of AugUll! I, 1990 !!no 'Ind8ntvre'), by and lJetweeI1 the City and Security Padfic
National Bank, 88 _ (the 'Trustee") and a FIis! Supp!emenlallndenlure of Trust (!he 'FIrst
SUpp!ement'), ds!ed as af Mardi 1 , 1 SS2 by and between the City and tho Tn."atoe:
WHEREAS lhIs Council, throogh lis 1InancIaI atM90f end bond oounse(, has sol1clted biCd
for the puroh_ 01 the Bornle by pybilCatlon as required by law and by c(rcule'Won of an OffIcial
Notkle af Sale and ~aI S1a18menl flt1d !?ida have tIeen duly reoeJved and Plesen!ed 10 this
Couro!1: and
WHEREAS, !he Ccundl wishes at this time to atl!llO!lZe lIle exeauUon ond delvery 011118
Firat Supplement, to award eale of the Bonds and !JIe performance of such acts .. may be
necaesary or d88Irabie \0 ef!ect Ihe Iss08nce and Sale 011118 Bonds as herein P'O'Jfded; .
NOW, THeREFORE, ft Is hereby delBrmlned one ordered as ronows:
1. 1"3"AOge g! BqOd!!, The Council hereby authOrlZee and HPPrnvp.s a serlee rJf Bona.,
to be known and deSignated as the "City 01 Palo Me ~I;(y Revenue Bonds, 1992 Series A',
uneer and pursuant to!Jle Law and the Indenture end 1Il8 First Suppiement In lhe PIlnclpal
amount of $iI,750,ooo.
prOVide 2,"~r~~:'B:rri~'~~:~P~n~~ffa~:n~ ~~~~~.:
extension. to the exlBtfng Blorm and eurface waler eystem componenl of the City'S util~y
En!erprlae.
3. Ind!!ntJlre pf Trulll er<! Flm S!~fDBnl The Bonde 8IlaR be Issued pUlsuonl 10 and
secured by lIle Indenture and the FIrst upplement, each of which is h.reby referred to and
1nc0000rated herein by reference.
. 4. 0IIIaIIa. The Bonds shall be dated, shall bear Irrter88l8t the rales, shan mallJ re on lIle
dales, shall be Issued in thelorm, shall be sui?Jec! to redemflUon, and shall oIhe:wise be l$6Ued
on the terms an<! cond1!Jons, aR as set forth In tne Firs! SUfJpiem9!Jl The Mayor and th. Oireclor
01 Finance are hereby authorized and directed, for and In the name of the City, 10 execute the
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6. Award of Sale The prllP9sal for tho puroh ••• 01 th. Bond. oubmftted by
(the "Original Pu rChaser") 18 hereoy ~ on the terms and ooOO"lon5
set fC11l1 in lite propo8!:Il 0I111S Origln!ll Purcheser and all bids received for the purchase of !he
Bonds, excep1lng such bid of the Original Purchaser, are hereby re]ec1ed and the Bonds are
hereby sold III the OriginaJ Purollase<, oiaId .ale III be subjeCl1C> aI! Of the terms and oondillons set
forth Iillh. 0tIIcIaI Nofloe of Sale of!h& Bonds,
The Director of Finance I. hereby dlTPCted to .:ause!he Bonds 10 IlS prir.tecf, signed and
8ea1ed, and to be den.ered 10 the Trustee fo, auff"otication and denvery to the Orfginal
Purcha88f on receipt of Ihe purchase price therefor and upon pe<!ormanoe 01 the conditions
oon!BIned In 1hs Official Na1ice of Sale arid the FIrst Supplement
TIle Trustee Is hereby authorized 10 au!heniicate and c!errVB r the Sende to the Orfglnal Purchaser_ .
The officers of the ClIy are hilreby aultlortzed &rod directed 10
SUCh aetionB 88 thoy may deem neces&aI'f '" advisable In ortier
!h!J:~~ of this ReeolulJon, and the execullon 01' laking of such
.' .ucI1 n.ce .... ty '" advfsabUlIy,
8. TranSCript The CIIy Clerk Is hor6by authortzed to prepare end furnish to the
purc:llaaen; of the SO!1d8 iS8uedliereunder and attorneys examining the same • complete set of
cer1l1led copie$ of aD 0I'din!I1lC8S, reooluUons and cfoOuments of the Couno, and 1llol.Cily rela1lng 10
the Bonds aner of an other pr,,,, • .,cfl.nJjS and rscorers of the CoU<lCll s""wing the righ~ power and
ou1hor!ly to ISsue !he SOnde and 10 provlde the S80<Jr!Iy tl)eretor, and such certifled copies and
oertffloofss shall be deemed represoola1Jons of the Cou~1 as 10 an fBCIs eta1ed mare! n.
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AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:
APPROVED AS TO FORM:
JONES HALL HILL & WHITE,
A Profal!8ionall.aw Co<porofIOn
APP~D:
CITY OF "ALO ALTO
ey' __ ~~~~ ______ ___
CiiY Manager
Syr __ ~~~~ ________ __
CIi)I AlIOiriiIY
PASSED: .. ______ ---" 1 m
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APPROVED:
ey, __ ~~~ ________ _
Mayor
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