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HomeMy WebLinkAboutMO # 2110MUNICIPAL ORDER NO. 2110 MUNICIPAL ORDER APPROVING THE ADVERTISEMENT FOR BID AND DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT FOR THE PURCHASE OF CITY OF PADUCAH, KENTUCKY GENERAL OBLIGATION BONDS, SERIES 2018A AND CITY OF PADUCAH, KENTUCKY GENERAL OBLIGATION REFUNDING BONDS, SERIES 2018B IN AGGREGATE PRINCIPAL AMOUNTS OF APPROXIMATELY $2,910,000 AND $2,845,000, RESPECTIVELY. WHEREAS, the City of Paducah, Kentucky (the "City") has determined that it is a public purpose of the City to finance the acquisition, construction and installation of improvements to the City's riverfront and the acquisition and installation 911 equipment (collectively, the "2018 Project"); and WHEREAS, the City further 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 currently refund a General Obligation Lease dated March 2, 2009, as amended (the "2009 Lease") between the City and the Kentucky League of Cities Funding Trust and a Lease Agreement dated as of July 1, 2003, as amended (the "2003 Lease") with the Kentucky League of Cities Funding Trust, the proceeds of which were used to finance various public improvements in the City, including (i) improvements to the City's floodwall, (ii) the construction of parking lots and related infrastructure at the Four Rivers Center, (iii) structural improvements and installation of an HVAC system at the City Building, (iv) the installation of an HVA system and related construction at the City's Police Building (v) playground equipment and restroom and shelter renovations at Kolb Park, (vi) basketball court and sprayground improvements as well as restroom renovations at Blackburn Park, (vii) trail development at Perkins Creek Nature Preserve and (viii) new restrooms and shelters and playground renovations at Noble Park (collectively, the "Prior Projects, " and together with the 2018 Project, the "Projects"); and WHEREAS, in order to achieve the foregoing objectives of the City, the City has determined and does hereby confirm that it is necessary and desirable at this time for the City to proceed with the issuance of (i) its General Obligation Bonds, Series 2018A in the approximate principal amount of $2,910,000 (which amount may be increased or decreased by up to $290,000) (the "Series 2018A Bonds") to finance the 2018 Project and (ii) its General Obligation Refunding Bonds, Series 2018B in in the approximate principal amount of $2,845,000 (which amount may be increased or decreased by up to $285,000) (the "Series 2018B Bonds," and together with the Series 2018A Bonds, the 'Bonds") to currently refund the 2003 Lease and 2009 Lease; and WHEREAS, on the 12th day of June, 2018 the City gave first reading to, and on the 26th day of June, 2018 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 the financing and refinancing of the Projects, which ordinance is titled as follows: AN ORDINANCE OF THE CITY OF PADUCAH, KENTUCKY AUTHORIZING THE ISSUANCE OF (1) CITY OF PADUCAH, KENTUCKY GENERAL OBLIGATION BONDS, SERIES 2018A IN THE APPROXIMATE AGGREGATE PRINCIPAL AMOUNT OF $2,910,000 (SUBJECT TO A PERMITTED ADJUSTMENT INCREASING OR DECREASING THE PRINCIPAL AMOUNT OF SERIES 2018A BONDS BY UP TO $290,000) FOR THE PURPOSE OF FINANCING A PORTION OF THE COSTS OF THE CONSTRUCTION OF RIVERFRONT IMPROVEMENTS AND THE ACQUISITION OF 911 EQUIPMENT, AND (II) CITY OF PADUCAH, KENTUCKY GENERAL OBLIGATION REFUNDING BONDS, SERIES 2018B IN THE APPROXIMATE AGGREGATE PRINCIPAL AMOUNT OF $2,845,000 (SUBJECT TO A PERMITTED ADJUSTMENT INCREASING OR DECREASING THE PRINCIPAL AMOUNT OF SERIES 2018B BONDS BY UP TO $285,000) FOR THE PURPOSE OF CURRENTLY REFUNDING A GENERAL OBLIGATION LEASE AGREEMENT DATED MARCH 2, 2009 BETWEEN THE CITY AND THE KENTUCKY LEAGUE OF CITIES FUNDING TRUST AND A LEASE AGREEMENT DATED JULY 1, 2003 300 BETWEEN THE CITY AND THE KENTUCKY LEAGUE OF CITIES FUNDING TRUST, THE PROCEEDS OF WHICH IN TURN FUNDED THE COSTS OF VARIOUS PUBLIC IMPROVEMENTS WITHIN THE CITY; APPROVING THE FORMS OF BONDS; AUTHORIZING DESIGNATED OFFICERS TO EXECUTE AND DELIVER THE BONDS; AUTHORIZING AND DIRECTING THE FILING OF NOTICE WITH THE STATE LOCAL DEBT OFFICER; PROVIDING FOR THE PAYMENT AND SECURITY OF THE BONDS; CREATING BOND PAYMENT FUNDS; MAINTAINING THE HERETOFORE ESTABLISHED SINKING FUND; AUTHORIZING ACCEPTANCE OF THE BIDS OF THE BOND 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 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 2. 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 Board of Commissioners. 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 3. The Mayor, City Manager or Finance Director of the City 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 the Projects and the costs of issuing the Bonds and shall be expended as provided in the Ordinance authorizing the Bonds. SECTION 4. 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 5. 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 6. This Municipal Order shall be in full force and effect immediately upon its adoption. INTRODUCED, PUBLICLY READ, AND FINALLY APPROVED on one reading, this 12' day of June, 2018. 301 hest: iL-U'9M Tammara Sanderson, City Clerk Brandi Harless, Mayor Adopted by the Board of Commissioners, June 12, 2018 Recorded by Tammara S. Sanderson, City Clerk, June 12, 2018 \no\Bond-Advertisement for bid 2018A & 2018B 302 CERTIFICATE I, Tammara 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 Board of Commissioners of the City, at a meeting duly held on June 12, 2018, 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. 2018. IN TESTIMONY WHEREOF, witness my signature on this day of , 303 City Clerk 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 10:00 a.m., C.T. and 10:30 a.m. C.T., respectively, on July 11, 2018 (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 $2,910,000 of the City's General Obligation Bonds, Series 2019A (the "Series A Bonds") and $2,845,000 of the City's General Obligation Refunding Bonds, Series 2018B (the "Series B Bonds," and collectively with the Series A, 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), and will mature in varying amounts as described in the Preliminary Official Statement relating to the Bonds. 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; 2929 Broadway Street, Paducah, Kentucky, 42001, Telephone (270) 443-8240 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 Dinsmoe & Shohl LLP, Bond Counsel, Covington, Kentucky. The City has designated each of the 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. 12945781v2 CITY OF PADUCAH, KENTUCKY By /s/ Brandi Harless Mayor 304