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Home My WebLink AboutMO # 246MUNICIPAL ORDER NO. 24.6 ORDER OF THE BOARD OF COMMISSIONERS OF THE CITY -OF PADUCAH, KENTUCKY, ACCEPTING THE SUCCESSFUL BID FOR THE PURCHASE OF $1.2,180,:0.00 PRINCIPAL AMOUNT OF CITY OF PADUCAH (KENTUCKY) WATER WORKS REVENUE REFUNDING BONDS, SERIES 1985, DATED APRIL 1, 1985 WHEREAS, notice of sale of $12,020,000, (subject to adjustment as provided in the Official Terms and Conditions of Sale of Bonds with reference to such Bonds) principal amount of City of Paducah (Kentucky) Water Works Revenue Refunding Bonds, Series 1985, dated April 1, 1985, has heretofore been advertised in strict compliance with all legal requirements, and WHEREAS, prospective bidders were informed in said Notice of Bond Sale, and in the Official Terms and Conditions of Sale of Bonds in connection with said Bonds, that the Board of Commissioners has retained the right to increase or decrease the total amount of Bonds sold to the best bidder, in an amount of not exceeding -$500,000 ($5,000) denomination), so that the total amount -of Bonds awarded to such best bidder will be a minimum of $11,520,000 or a maximum of $12,520,000, the price at which such adjusted amount of Bonds will be sold to be at the same price per $1,000 of Bonds as the price bid in the successful bid per $1,000, for the $12,020,000 of Bonds initially offered for sale, and WHEREAS, all bids received for the purchase of said Bonds from the City have been duly considered and are as follows: BIDDERS J.J.B. Hilliard, W.L. Lyons, Inc., and Associates McDonald & Co. Securities, Inc. INTEREST RATES 1985 - 5.00% 1986-1990 - 7.25% 1991-1993 - 8:00% 1994-1995 - 8.50% 1996 - 8.60% 1997 - 8.75% 1998 - 8.90% 2004 - 9.30% 2009 - 9.45% 1985 - 5.00% 1986 - 5.50% 1.987-1988- 6.75% 1989 - 7:00% 1990 - 7.259 1991 -.7.50% 1992 7.75% 1993 - 8.00% 1994 - 5.20% 1995 - 8.40% 1996 - 8.60% 1997 - 8.80% AMOUNTS BID FOR SAID $12,020,000 PRINCIPAL AMOUNT,OF BONDS, PLUS ACCRUED INTEREST FROM APRIL 1, 1985 $11,779,600.00 $11,827,680.00 425 426 x Drexel Burnham Lambert, Inc. Donaldson, Lufkin & Jenrette 1998 - 9.00% 2004 - 9.60% 2009 - 9.70% 1985-1987 - 6.50% 1988 - 7:00% 1989 - 7.50% 1990 -.7,75% 1991 - 8.00% 1992 - 8.20% 1993 - 8.40% 1994 - 8.60% 1995 - 8.80% 1996 - 9..00% 1997 - 9.25% 1998 - 9.50% 2004 - 9.75% 2009 - 9.80% 1985-2009 - 9.50% $11, 779,:600.00 $11,781,425.65 9.751209% 9.624745% Salomon Bros,., Inc. 1985-1987 - 6.25% $11,803,344.15 9.6936% 1988 - 6.75% 1989 - 7.00%. 1990 - 7.30% 1991 - 7.60% 1992 - 7.90% 1993 - 8.10% 1994 - 8.30% 1995 - 8.50% 1996 - 8.75% 1997 - 9.00% 1998 - 9.20% 2004 - 9.75% 2009 - 9.80% WHEREAS, the matter of which bid is the most advantageous and with the most favorable net interest cost to the City of Paducah, has been- sufficiently considered; NOW, THEREFORE, BE IT ORDERED BY THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY, AS FOLLOWS: SECTION 1. That the bid of J.J.B. Hilliard, W.L. Lyons, Inc., and Associates for the purchase of said $12,020,000 principal amount of City-ofPaducah Water Works Revenue Refunding Bonds, Series 1985, dated April 1, 1985, be accepted and confirmed, said bid being at a price of $11,779,600.00 for said $12,020,000 principal amount of Bonds, plus accrued interest from April 1, 1985, to the date of deliver of the Bonds, such -interest to be payable semi-annually at the following annual rates: 427 MATURITY INTEREST MATURITY INTEREST JULY 1 RATES JULY 1 RATES 1985 5.00% 1993 8.00% 1986 7.25% 1994 8.50% 1987 7.25% 1995 8.50% 1988 7.25% 1996 8.60% 1989 7.25% 1997 8.75% 1990 7.25% 1998 8.90% 1991 8.00% 2004 9.30% 1992 8.00% 2009 9.45% and being at an average net interest cost to the City of 9.3712931% per annum, and said bid is hereby determined to be the best bid and with the most favorable net interest cost to the City for said Bonds; provided, however, that pursuant to:the right reserved by the Board of Commissioners to increase or decrease the total amount of Bonds sold to the best bidder, in an amount of not exceeding $500,000 ($5,000) denomination, so that the total amount of Bonds awarded to such best bidder will be a minimum•of $11,520,000 or a maximum of $12,520,000, with the interest rate for such additional bonds to be the -same price per $1,000 of bonds as the price bid in the successful bid per $1,000 for the $12,020,000 of Bonds initially offered for sale, it is hereby determined that the total amount of Bonds to be issued and to be awarded to such successful bidder will be $12,180,000 of Bonds, at an adjusted price of $11,936,400 plus accrued interest, and that the maturities shall be as follows: Year of Maturity Amount 1985 $640,000 1986 125,000 1987 140,000 1988 140,000 1989 205,000 1990 220,000 1991 235,000 1992 255,000 1993 275,000 1994 295,000 1995 320,000 1996 350,000 1997 380,000 1998 415,000 2004 3,825,000 2009 4,775,000 and the interest rates on said $12,180,000 of Bonds are fixed at the rates set out in said successful bid. As provided in Section 5 of the Ordinance authorizing the Bonds, the Term Bonds due on July 1, 2004, and July 1, 2009, hereby sold must be mandatorily redeemed as follows: Series 1995 Term Bonds Series 1985 Term Bonds Due July 1, 2004 Due July 1, 2009 Year Principal Year Principal (July 1) Amount (July 1) -Amount 1999 $450,000 2005 $765,000 2000 490,000 2006 840,000 2001 540,000 2007 920,000 2002 590,000 2008 1,150,000 2003 640,000 2009 (final) 1,100,000 2004 (final 700,000 maturity) maturity) SECTION 2. That all other bids are hereby rejected, and the City Clerk is ordered to hold the good faith check of the successful purchaser(s) in accordance with the published Notice of Bond Sale and the Official Terms and Conditions of Sale of Bonds, and to return the other checks to the respective unsuccessful bidders immediately. 428 SECTION 3. That said Bonds shall be delivered by the City Treasurer and/or other proper City officials to said purchaser(s) as soon as said Bonds are printed and ready for delivery in accordance with the Ordinance authorizing said Bonds, and all of the proceeds of a said Bonds shall be used only as provided in said Ordinance. SECTION.4.. That said bid is accepted subject to the condition that such acceptance subjects the City to no obligation to deliver the Bonds if for any reason the City is unable to obtain the unconditional, final approving legal opinion of the firm of Rubin & Hays, Municipal Bond Attorneys, Louisville, Kentucky, as to said Bonds, as provided in the Official Terms and Conditions of Sale of Bonds -as amended, together with the separate approving legal opinion of Haynes & Miller, Washington, D.C., with respect to compliance with the "arbitrage rules" of Section 103(c) of the Internal Revenue Code, and the applicable regulations thereunder, or if said Bonds should be subject to ad valorem taxation by the Commonwealth -,of Kentucky, or if the receipt of interest on said Bonds should be subject to income taxation by the Federal Government or by the Commonwealth of Kentucky, prior to or on the delivery date of said Bonds; and the purchase shall not be required to accept delivery of said Bonds without such opinions of said Attorneys accompanying said Bonds, or if said Bonds or the interest thereon should become subject to such ad valorem or income taxation prior to such delivery date. That the Preliminary Official Statement as distributed to prospective purchasers for the Bonds, a copy of which has been presented to the meeting at which this Resolution was proposed, is hereby approved, and the Mayor is'authorized to approve such instruments upon behalf of the City of Paducah. SECTION 5. That all motions, ordinances, orders and resolutions, or parts thereof, inconflict herewith, be and the same are hereby amended or repealed to the extent of such conflict, and this Order shall be effective immediately upon its adoption. Adopted on March 28, 1985. ATTEST: City Clerk rVPTTFTrATR Mayor I, LENITA SMITH, 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 an Order adopted by the Board of Commissioners of said City at a meeting held on March 28, 1985, and that said Order has been duly recorded in the records of the City as a matter of public record. IN TESTIMONY WHEREOF, witness my signature and Seal of said City on this the 28th day of March, 1985. City Clerk SEAL OF CITY: