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HomeMy WebLinkAboutMO # 1772187 MUNICIPAL ORDER NO. 1772 MUNICIPAL ORDER APPROVING THE ADVERTISEMENT FOR BID AND DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT FOR THE PURCHASE OF CITY OF PADUCAH, KENTUCKY GENERAL OBLIGATION REFUNDING BONDS, SERIES 2014A IN THE AGGREGATE PRINCIPAL AMOUNT OF APPROXIMATELY $5,765,000. WHEREAS, the City of Paducah, Kentucky (the "City"), heretofore issued its $6,645,000 City of Paducah, Kentucky Taxable General Obligation Build America Bonds, Series 2010 (Build America Bonds - Direct Payment) (the "Prior Bonds"), the proceeds of which were used to finance various public projects within the City, including the construction of Greenway Trail, the construction of a replacement for the existing Noble Park parking lot and construction of related appurtenances, the resurfacing of City streets, the acquisition and installation of generators throughout the City, the acquisition and installation of traffic signals, the acquisition of the Executive Inn and related appurtenances and the construction and installation of public improvements on a portion of the site thereof, the acquisition and construction of an air dome pavilion, the acquisition of real property for use as a sports park and the acquisition of such additional improvements in substitution of any of the foregoing as were identified in the budget of the City adopted for the fiscal year ending June 30, 2010 (collectively, the "Project")finance the acquisition, construction and installation of a public works building and riverwall within the City (the "Project"); and WHEREAS, the Prior Bonds were issued as Build America Bonds ("Build America Bonds"), as permitted by the American Recovery and Reinvestment Act of 2009, pursuant to which the United States Treasury was to pay to the City 35% of the interest payable on the Prior Bonds (the "Credit Payment") contemporaneously with each interest payment date for such Prior Bonds so long as the Prior Bonds complied with all federal tax requirements of the Build America Bonds; and WHEREAS, subsequent to the date of issuance of the Prior Bonds, provisions were enacted resulting in the Credit Payment being reduced below the 35% threshold; and WHEREAS, the terms of the Prior Bonds provide that the Prior Bonds may be redeemed at any time at the election of the City, in whole or in part, at a redemption price equal to the face amount of the Prior Bonds to be redeemed, plus accrued interest to the date of redemption, Section 54AA or 6431 of the Internal Revenue Code of 1986, as amended (the "Code") is modified, amended or interpreted in a manner pursuant to which the City's Credit Payments from the United States Treasury are reduced or eliminated (an "Extraordinary Redemption Event"); and WHEREAS, the City has determined that the present conditions of the municipal market are such that it is advantageous and in the best interests of the City for the City to proceed with the issuance of its General Obligation Refunding Bonds, Series 2014A in the aggregate principal amount of $5,765,000 (the "Bonds"), subject to a permitted adjustment increasing or decreasing the principal amount of the Bonds by up to $575,000 (the "Permitted Adjustment"), to currently refund the Prior Bonds and enable the City to exercise the Extraordinary Redemption Event with respect to the Prior Bonds; and WHEREAS, on the 13th day of May, 2014 the City gave first reading to, and on the 20th day of May, 2014 proposes to give second reading to and adopt, an ordinance providing for the issuance of the Bonds in order to provide funds to pay the costs, not otherwise provided for, of the refunding and retirement of the Prior Bonds, which ordinance is titled as follows: AN ORDINANCE OF THE CITY OF PADUCAH, KENTUCKY AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION REFUNDING BONDS, SERIES 2014A IN THE AGGREGATE PRINCIPAL AMOUNT OF $5,765,000 (SUBJECT TO A PERMITTED ADJUSTMENT INCREASING OR DECREASING THE SIZE OF SAID BONDS BY UP TO $575,000) TO CURRENTLY REFUND THE OUTSTANDING CITY OF PADUCAH, KENTUCKY TAXABLE GENERAL OBLIGATION BUILD AMERICA BONDS, SERIES 2010 (BUILD AMERICA BONDS - DIRECT PAYMENT), THE PROCEEDS OF WHICH WERE USED TO FINANCE THE LALuLu.:-�. ---- J - :. L- I I_ COSTS OF VARIOUS PUBLIC PROJECTS WITHIN THE CITY OF PADUCAH, KENTUCKY; AUTHORIZING DESIGNATED OFFICERS TO EXECUTE AND DELIVER THE BONDS; PROVIDING FOR THE PAYMENT AND SECURITY OF THE BONDS; CREATING A BOND PAYMENT FUND; MAINTAINING THE HERETOFORE CREATED SINKING FUND; AUTHORIZING ACCEPTANCE OF THE BIDS OF THE BOND PURCHASER OR PURCHASERS FOR THE PURCHASE OF THE BONDS; AND REPEALING INCONSISTENT ORDINANCES. WHEREAS, it is appropriate at this time that the City authorize the advertisement for bid for the purchase of the Bonds. NOW, THEREFORE, BE IT ORDERED BY THE CITY OF PADUCAH, KENTUCKY, AS FOLLOWS: SECTION 1. The City of Paducah, a municipal corporation and political subdivision of the Commonwealth of Kentucky, shall issue its "General Obligation Refunding Bonds, Series 2014A (the "Bonds") in the aggregate principal amount of approximately $5,765,000. SECTION 2. The City shall comply with the requirements of KRS Chapters 66 and 424 by advertising for bids for the purchase of the Bonds. Actions heretofore taken by the City in connection with the preparation of such instruments and the distribution of such information by the City as shall be necessary to accomplish the foregoing, including the preparation of a Preliminary Official Statement (the "Preliminary Official Statement") which Preliminary Official Statement shall be deemed final by the Mayor of the City in accordance with Rule 15c2-12 of the Securities and Exchange Commission (the "Rule"), are hereby ratified and approved. In order to enable prospective purchasers to submit a bid for the purchase of the Bonds, the City hereby covenants and agrees that it will execute, comply with and carry out all of the provisions of a continuing disclosure undertaking (the "Continuing Disclosure Undertaking") in connection with the issuance of the Bonds. Failure to comply with any such provisions of the Continuing Disclosure Undertaking shall not constitute a default on the Bonds; however, any holder of the Bonds, including the beneficial owners of the Bonds, may take such action as may be necessary and appropriate, including seeking specific performance, to cause the City to comply with its obligations under the Continuing Disclosure Undertaking. SECTION 3. Proposals for the purchase of the Bonds shall be opened and reviewed by the Finance Director of the City, and shall be acted upon by the City Manager or Finance Director on that same day, based upon the advice of the City's financial advisor, J.J.B. Hilliard, W.L. Lyons, LLC, without the need for further action by this City Commission. The City hereby ratifies and approves the use of the "Notice of Bond Sale," substantially in the form attached hereto, which shall be published as required by law. SECTION 4. The City Manager or Finance Director shall, in a certificate of award accepting the successful bid or bids for the Bonds (the "Certificate of Award"), determine the exact principal amount of Bonds to be awarded and the exact rate or rates of interest which said Bonds shall bear, and the interest rate or rates on said Bonds shall be automatically fixed at the rate or rates set out in the successful bid accepted by said Certificate of Award. The proceeds of the sale of said Bonds shall be applied to the costs of refunding the Prior Bonds and the costs of issuing the Bonds and shall be expended as provided in the Ordinance authorizing the Bonds. SECTION 5. In the event that no bid shall be accepted for the purchase of the Bonds, bids may again be solicited for the purchase of the Bonds at a future date and hour at the discretion of the Mayor, without the necessity of further authorization by the City. SECTION 6. All motions, orders, resolutions and parts thereof in conflict herewith, are hereby repealed to the extent of such conflict, and this Municipal Order shall be effective immediately. SECTION 7. This Municipal Order shall be in full force and effect immediately upon its adoption. INTRODUCED, PUBLICLY READ, AND FINALLY APPROVED on one reading, this 13th day of May, 2014. 2 YWA i a,, Tammy Sanderson, City Clerk W -NO EXHIBIT A NOTICE OF BOND SALE Notice is hereby given that electronic bids will be received by the City of Paducah, Kentucky (the "City"), until 12:00 p.m., C.T. on May 27, 2014 (or at such later time and date announced at least forty- eight hours in advance via the BiDCOMPTM/PARITYTM system) for the purchase of approximately $5,765,000 of the City's General Obligation Refunding Bonds, Series 2014A (the "Bonds"). Alternatively, written sealed or facsimile bids for one or more series of the Bonds by the designated time will be received by the Finance Director, 300 South Fifth Street, Paducah, Kentucky 42002 (FAX: (270) 440- 8589). The Bonds will each be dated their date of initial delivery, will be issued as fully registered bonds in denominations in multiples of $5,000 (within the same maturity), will mature on March 1 of the years 2015 through 2030. Electronic bids may be submitted via BiDCOMPTM/PARITYTM, in the manner described below. Additional information, including the Preliminary Official Statement, the Official Terms and Conditions of Bond Sale and the Official Bid Form, may be obtained from the City's Financial Advisor, J.J.B. Hilliard, W.L. Lyons, LLC; 500 West Jefferson Street, Louisville, Kentucky 40202; Telephone: (502) 588-8639 or at http://pos.hilliard.com. Further information regarding BiDCOMPTM/PARITYTM may be obtained from BiDCOMPTM/PARITYTM, 1359 Broadway - 2nd Floor, New York, NY 10018, Telephone: (800) 850-7422. Sale of Bonds on tax-exempt basis. Issuance of Bonds subject to approving legal opinion of Peck, Shaffer & Williams, a division of Dinsmore & Shohl LLP, Bond Counsel, Covington, Kentucky. The City has designated the Series Bonds as "qualified tax-exempt obligations" pursuant to Section 265 of the Internal Revenue Code of 1986, as amended. Right to reject bids or waive informality reserved. 85255v1 4/17/2014 CITY OF PADUCAKENTUCKY By /s/ Gale Kaler, M yor 5 191