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Home My WebLink AboutMO # 1780200 MUNICIPAL ORDER NO. 1780 MUNICIPAL ORDER APPROVING THE ADVERTISEMENT FOR BID AND DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT FOR THE PURCHASE OF CITY OF PADUCAH, KENTUCKY TAXABLE GENERAL OBLIGATION REFUNDING BONDS, SERIES 2014B (POLICE , AND FIREFIGHTERS PENSION PLAN) IN THE AGGREGATE PRINCIPAL AMOUNT OF APPROXIMATELY $4,230,000. WHEREAS, the City of Paducah, Kentucky (the "City"), heretofore issued its $6,100,000 Taxable General Obligation Bonds (Police and Firefighters Pension Plan), Series 2005 (the "Prior Bonds"), the proceeds of which were used to finance unfunded liabilities in the City's police and firefighters pension fund (the "Pension Fund"); 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 Taxable General Obligation Refunding Bonds, Series 2014B (Police and Firefighters Pension Plan) in the aggregate principal amount of $4,230,000 (the "Bonds"), subject to a permitted adjustment increasing or decreasing the principal amount of the Bonds by up to $425,000 (the "Permitted Adjustment"), to refund in advance of maturity the Prior Bonds maturing on or after November 1, 2016 (the "Refunded Prior Bonds"), thereby enabling the City to realize debt service savings; and WHEREAS, on the 17th day of June, 2014 the City gave first reading to, and on the 1St day of July, 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 Refunded Prior Bonds, which ordinance is titled as follows: AN ORDINANCE OF THE CITY OF PADUCAH, KENTUCKY AUTHORIZING THE ISSUANCE OF CITY OF PADUCAH, KENTUCKY TAXABLE GENERAL OBLIGATION REFUNDING BONDS, SERIES 2014B (POLICE AND FIREFIGHTERS PENSION PLAN) IN THE AGGREGATE PRINCIPAL AMOUNT OF $4,085,000 (SUBJECT TO A PERMITTED ADJUSTMENT INCREASING OR DECREASING THE SIZE OF SAID BONDS BY UP TO $405,000), FOR THE PURPOSE OF REFUNDING IN ADVANCE OF MATURITY A PORTION OF THE OUTSTANDING CITY OF PADUCAH, KENTUCKY TAXABLE GENERAL OBLIGATION BONDS (POLICE AND FIREFIGHTERS PENSION PLAN), SERIES 2005; AUTHORIZING AND APPROVING THE ENGAGEMENT OF THE FINANCIAL ADVISOR AND BOND COUNSEL IN CONNECTION WITH THE ISSUANCE AND SALE OF THE BONDS; APPROVING THE FORM OF THE BONDS; AUTHORIZING DESIGNATED OFFICERS TO EXECUTE AND DELIVER THE BONDS; AUTHORIZING AND DIRECTING FILINGS WITH THE STATE LOCAL DEBT OFFICER AND DEPARTMENT FOR LOCAL GOVERNMENT; PROVIDING FOR THE PAYMENT AND SECURITY OF THE BONDS; CREATING A BOND PAYMENT FUND; MAINTAINING THE HERETOFORE ESTABLISHED SINKING FUND; AUTHORIZING ACCEPTANCE OF THE BID OF THE BOND PURCHASER 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 "Taxable General Obligation Refunding Bonds, Series 2014B (Police and firefighters Pension Plan) (the "Bonds") in the aggregate principal amount of approximately $4,230,000. 201 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 Mayor, City Manager or Finance Director on that same day, based upon the advice of the City's financial advisor, Raymond James & Associates, Inc., 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 Mayor, 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 Refunded 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 24th day of June, 2014. %7 / > n Gale WE r, Mayor ,Atest: Tammy Sanderson, City Clerk Adopted by the Board of Commissioners, June 24, 2014 Recorded by Tammara S. Sanderson, City Clerk, June 24, 2014 mo\bond-2014B-pension fund K CERTIFICATE I, Tammy Sanderson, hereby certify that I am the duly qualified and acting City Clerk of the City of Paducah, Kentucky, that the foregoing is a full, true, and correct copy of a Municipal Order adopted by the City Commission of the City, at a meeting duly held on June 17, 2014, that said Municipal Order (together with the Notice of Bond Sale approved therein) appears as a matter of public record in the official records of the City, that said meeting was duly held in accordance with all applicable requirements of Kentucky law, including KRS 61.810, 61.815, 61.820, and 61.823, that a quorum was present at said meeting, that said Municipal Order has not been modified, amended, revoked, or repealed; and that same is now in full force and effect. IN TESTIMONY WHEREOF, witness my signature on this day of , 2014. 3 City Clerk 202 Notice is hereby given that electronic bids will be received by the City of Paducah, Kentucky (the "City"), until 10:00 a.m., C.T. on July 9, 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 $4,230,000 of the City's Taxable General Obligation Refunding Bonds, Series 2014B (Police and Firefighters Pension Plan) (the "Bonds"). Alternatively, written sealed or facsimile bids for 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 November 1 of the years 2014 through 2025. 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, Raymond James & Associates, Inc.; 400 West Market Street, Suite 2050, Louisville, Kentucky 40202, Telephone (502) 560-1274. 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 taxable basis. Issuance of Bonds subject to approving legal opinion of Peck, Shaffer & Williams, a division of Dinsmore & Shohl LLP, Bond Counsel, Covington, Kentucky. Right to reject bids or waive informality reserved. 4008637v1 5/27/2014 CITY OF PADUCAH, KENTUCKY By /s/ Ga le Kaler ZJ/ ayor 2