HomeMy WebLinkAboutAccepting Bid for Paducah Water Works Refunding Rev Bonds 816
A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE CITY OF
PADUCAH, KENTUCKY, ACCEPTING THE SUCCESSFUL BID FOR THE PURCHASE OF
$1,280,000 PRINCIPAL AMOUNT OF CITY OF PADUCAH WATER WORKS REFUNDING
REVENUE BONDS OF 1978, DATED APRIL 1, 1978
WHEREAS, notice of sale of $1,275,000 principal amount of City of Paducah
Water Works Refunding Revenue Bonds of 1978, dated April 1, 1978, has 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 the amount of up to $25, 000
($5, 000 denomination) with such increase or decrease to be in any one or more of
the years of maturity (1989 -2002 and 2008) so that the total amount of Bonds awarded
to such best bidder will be a minimum of $1,250,000 or a maximum of $1,300,000,
without re- bidding or re- calculation of the bid submitted, and
WHEREAS, all bids received for the purchase of said Bonds have been con-
sidered and are as follows:
TOTAL AMOUNTS BID
FOR SAID $1,275,000
OF BONDS PLUS ACCRUED NET
INTEREST INTEREST FROM INTEREST
BIDDERS RATES APRIL 1, 1978 COST
John Nuveen Co., Inc. 1989-5.00%; 1990 $1,255,875.00 $2,068,461..25
Johnston, Brown, Burnett 5.10 1991-5.20%
Knight, Inc. 1992- 5.30 1993 5.45
1994 5.60 1995-5.75%;
1996- 5..90 1997 6..00
1998- 6.00 1999 6.00
2000 6.00 20017_6-.00%;
2002- 6.00 2008 -6.15%
J.J.B. Hilliard, W.L. 1989 5.25 1990 5.35 $1,252,687.50 $2,048,512.50
Lyons, Inc. &_Assoc 1991 5.45 1992 5.55
1993 5.60 1994 5.70
1995- 5.75 1996 -_5, 80
1997 5.80 1998- 5.90
1999- 5.90 20007.6. -00
2001 6.00 2002 6.00
2008 -6.05%
Bache Halsey Stuart 1989 5.00 1990 $1,252,687.50 $2,087,915.00
Shields Inc. Assoc. 1991 5.25 1992
1993- 5.50 199475
1995- 5.70 1996 5.80
1997 5.90 1998 6.00
1999 6.05 2000 6.10
2001- 6.10 2002 6.10
2008 -6.20%
WHEREAS, the matter of which bid is the most advantageous, and with the most
favorable net interest cost to the City, has been sufficiently considered,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE
CITY OF PADUCAH, KENTUCKY, AS FOLLOWS:
817
SECTION 1. That the Bid of J. J. B. Hilliard, W. L. Lyons, Inc., and
Associates, Louisville, Kentucky, for the _purchase of said $1,275,000 principal amount of
City. of Paducah Water Works Refunding. Revenue Bonds of 1978, dated April 1, _1978, be
accepted and confirmed, said bid being at a Jotal price of $1,252,687.50 for said
$1,275,000 principal amount of Bonds, 131 accrued interest from April. 1,. 1978, to the date
of delivery of theBonds, such Bonds to bear interest payable semi-annually at the following
annual rates:
MATURITIES INTEREST RATES MATURITIES INTEREST RATES
1989 5.25 1997 5.800
1990 5.35% 1998 5.90%
1991 5.45% 1999, 5.90% 1992 555% 2000 6.00%
1993 '5.60% 2001 6.00%
1994 5.70% 2002 6.00%
1995
1996 5.80% 2008 6.05%
said bid being a bid at an average net interest cost to the City of 6.05537% per annum,
said bid being hereby determined to be the most advantageous and with the most favor-
able net interest cost to the City for said Bonds. Provided, however, that pursuant
to the right retained by the Board of Commissioners to increase or decrease the total
amount of Bonds of 1978 sold to the best bidder, in the amount of up to $25,000
($5,000 denornitlation), with such increase or decrease to be in any one or more of
the years of maturity (1989-2002 and 2008) it is hereby determined that the total
amount of Bonds awarded to such best bidder will be $1,280,000 of Bonds, with the
1992 maturity being increased from $50,000 to $55,000.
SECTION 2. That all other bids are hereby rejected, and the City Clerk is
ordered to hold the good faith check of the successful purchasers in accordance with the
Official Terms and Conditions of Sale of Bonds arid to return the other checks to the
respective unsuccessful bidders immediately.
SECTION 3. That in accordance of Section 6 of the Bond Ordinance, said
Bonds shall, at the written election of said purchasers, be delivered by the City Treasurer
and/or other proper City officials to said purchasers in the form of a single, fully registered
Bond, numbered R-1, at the Bank designated by such purchasers in Louisville, Kentucky.
Such single Bond shall be payable to the _purchasers, and shall be exchangeable at the
sole expense of the City, at any time, 14ion_thirty(30) days' written notice to the City from
the purchasers, and upon surrender of the Bond to the City at the main office of the Citizens
Bank Trust Company, Paducah, Kentucky, or at a: bank,or trust company in Louisville,
Kentucky, designated by the purchasers, for negotiable coupon bonds, payable to bearer,
of the denomination of $5,000 each, in an aggregate principal amount equal to and maturing
in conformity with the unpaid principal amount of such single Bond, and in the form of such
coupon bonds as provided in the Bond Ordinance, with the respective maturities of said
818
coupon bonds corresponding to the principal installments of the single Bond, and with
semi- annual coupons annexed representing the accrual of interest corresponding to the
respective interest rates for the respective principal installments (maturities) indicated above.
Both principal of and interest on said Bond shall be payable to the purchasers by check
issued by or through the Citizens Bank Trust Company, Paducah, Kentucky, as the
Paying Agent.
SECTION 4. That said bid is accepted subject to the condition that such
acceptance subjects the City to no liability if for any reason the City is unable to obtain the
final approving legal opinion of the firm of Rubin Hays, Municipal Bond Attorneys, Louis-
ville, Kentucky, as to said Bonds, together with the separate approving legal opinion of
Haynes Miller, Washington, D.C., with respect to compliance with the "arbitrage rules"
of Section 103 of the Internal Revenue Code, 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 purchasers shall not be required to
take delivery of said Bonds without the final approving opinions of said Attorneys accompany_ng
said Bonds or if said Bonds or the interest thereon shall become subject to taxation on or
before said delivery date.
SECTION 5. That authority is given by the City to Mr. David L. Miller, Mr.
C. Willis Ritter, and Ms. Karen A. Ellis, of Haynes Miller, Suite 401, 1511 K Street, N W
Washington, D. C. 20005, Mr. Joseph R. Rubin and Mr. Franklin P. Hays of Rubin Hays,
Suite 300, Fireside Building, 209 South Fifth Street, Louisville, Kentucky 40202, Mr J.
Rudolph Bauer, Jr., and Mr George Sullivan, J. J. B. Hilliard, W. L. Lyons, Inc., 425
South Third Street, Louisville, Kentucky 40202, and to any one of them, to act upon behalf
of the City in signing upon behalf of the City subscriptions for the purchase and issue of
United States Treasury Certificates, Notes or Bonds State and Local Government Series, to
be issued to the Citizens Bank Trust Company, Paducah, Kentucky, as Escrow Agent, in
connection with the application of the proceeds of the Bonds of 1978. The Mayor and /or the
City Clerk is authorized to send a letter to the Securities division, Federal Reserve Bank,
Louisville, Kentucky, certifying as to the authority of such individuals. That this Board of
Commissioners hereby ratifies the action of the Mayor in previously sending such letter to
the Federal Reserve Bank.
SECTION 6. That all motions, ordinances and resolutions, or parts thereof,
in conflict herewith, be and the same are hereby amended or repealed to the extent of such
conflict, and this Resolution shall be in force immediately upon its adoption and approval as
required by law.
Adopted and approved on April 17, 1978.
819
CITY OF PADUCAH, KENTUCKY
By: Robert A. Coleman, Mayor Protem and
Gordon Meeks, Commissioner
Passed by the Board of Commissioners April 17, 1978
Recorded by Louise McKinney, City Clerk, April 17, 1978.
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