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HomeMy WebLinkAbout10405RESOLUTION NO. 10405 A RESOLUTION APPROVING A NOTICE OF SALE IN CONNECTION WITH THE PROPOSED ISSUANCE BY THE CITY OF PUEBLO, COLORADO, OF ITS LIMITED TAX GENERAL OBLIGATION REFUNDING BONDS, SERIES 2005; AUTHORIZING AND PRESCRIBING THE PUBLIC SALE OF SUCH BONDS; AND PROVIDING CERTAIN DETAILS IN CONNECTION WITH SUCH PUBLIC SALE WHEREAS, the City of Pueblo, Colorado, in the County of Pueblo and State of Colorado (the "City "), is a municipal corporation duly organized and existing as a home rule city pursuant to Article XX of the Constitution of the State of Colorado (the "Constitution ") and the Charter of the City (the "Charter "); and WHEREAS, the City is authorized pursuant to the Constitution and the Charter to borrow money for any municipal purpose by the issuance of bonds; and WHEREAS, the City, pursuant to Ordinance No. 6088, passed and adopted on second reading on May 13, 1996, issued and delivered its "City of Pueblo, Colorado, Limited Tax General Obligation Bonds, Series 1996" (the "Series 1996 Bonds "), originally issued in an aggregate principal amount of $12,850,000, of which $9,270,000 in principal amount is currently outstanding; and WHEREAS, the City has determined that it is in the best interests of the residents of the City, and the City therefore desires, to refund the Series 1996 Bonds maturing on June 1, 2011, and June 1, 2016, currently outstanding in the total principal amount of $8,130,000 (the "Refunded Bonds') in advance of their maturity (the 'Refunding "); and WHEREAS, Section 7 -24 of the Charter authorizes the City to issue refunding bonds without submitting the question of issuing such bonds to a vote of the electors of the City; and WHEREAS, Article X, Section 20 of the Constitution ('TABOR "), in Section 4(b), authorizes the City to refinance bonded debt at a lower interest rate without obtaining voter approval in advance of such refinancing; and WHEREAS, to implement the Refunding, the City deems it advisable and necessary for the City to issue its "City of Pueblo, Colorado, Limited Tax General Obligation Refunding Bonds, Series 2005' (the "Bonds"); and WHEREAS, the Bonds will be issued at a lower net effective interest rate than that of the Refunded Bonds, which will result in a net present value debt service saving to the City; and WHEREAS, the City has determined that it is in the best interests of its residents that the Bonds be sold based upon competitive bids to be received and publicly reviewed by the City, upon due notice; and WHEREAS, none of the members of the City Council has any potential conflicting interests in connection with the authorization, offer, issuance or sale of the Bonds, or the use of the proceeds thereof. NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF PUEBLO, COLORADO: Section 1. Official Notice of Bond Sale. The Finance Director of the City is hereby authorized and directed, along with the financial advisor to the City, to cause the official notice of bond sale to be distributed prior to the date bids are to be received. The official notice of bond sale is hereby approved in substantially the form presented at this meeting, as follows, with such changes as may be agreed to by the Finance Director of the City: OFFICIAL NOTICE OF BOND SALE $8,495,000' City of Pueblo, Colorado Limited Tax General Obligation Refunding Bonds Series 2005 PUBLIC NOTICE IS HEREBY GIVEN that the City of Pueblo, Colorado (the "City "), will receive bids for the purchase of the Bonds captioned above (the 'Bonds ") through the use of an electronic bidding system, only. No physical delivery of bids will be allowed. The bids will be received at the date and time specified below. Date and Time: Monday, June 13, 2005 10:00 a.m. (Colorado Time) Submission of Electronic Bids: Electronic proposals shall be submitted through BIDCOMP /PARITY® (the "Approved Provider "). Neither the City, James Capital Advisors, Inc. (the "Financial Advisor'), nor Kutak Rock LLP ( "Bond Counsel") shall be responsible for, and each bidder expressly assumes the risk of, any incomplete, inaccurate or untimely bid submitted through the Approved Provider by such bidder, including, without limitation, by reason of faulty transmissions, mechanical failure, engaged telephone or telecommunications lines or any other cause arising from the delivery of bids through the Approved Provider. See "TERMS OF SALE — Information Regarding Electronic Proposals" herein. Bond Insurance: The Finance Director of the City or, in his absence, the City Manager, will choose a Bond Insurer prior to the receipt of bids for the sale of the Bonds. See 'Bond Insurance." Delivery Date of Bonds: The Bonds will be delivered on Thursday, July 14, 2005. See 'TERMS OF SALE — Manner and Time of Delivery." See instructions under "TERMS OF SALE —Bid Proposal' below. Subject to change. BOND PROVISIONS Issue. The City will issue the Bonds pursuant to an Ordinance to be adopted by the City Council (the "Ordinance "). Information Available From Preliminary Official Statement. Reference is made to the Preliminary Official Statement dated June _, 2005 (the "Preliminary Official Statement') for information as to the authorization and purpose of the Bonds; security for the Bonds; the City's rights to issue additional obligations; the book -entry system, transfer, exchange and place of payment of the Bonds; and other information relating to the Bonds and the City. Form, Dates and Maturities. The Bonds will be issued as fully registered bonds without coupons and shall be executed and delivered only in global book entry form registered in the name of Cede & Co., as nominee of The Depository Trust Company ( "DTC "), New York, New York, acting as securities depository of the Bonds. The Bonds may be purchased in the denominations of $5,000 and any integral multiples thereof. The Bonds will be dated July 14, 2005. Interest will be payable on the Bonds on each June 1 and December 1, commencing December 1, 2005. The Bonds will mature on June 1 in each of the designated amounts and years as follows: Date Maturing Amounts' (June 1) Maturing 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Subject to adjustment as set forth below under the caption "TERMS OF SALE - Adjustment of Principal Amount." Book -Entry. The City will make arrangements for custodial deposit of the Bonds with The Depository Trust Company, New York, New York. The Bonds will therefore be registered in the name of Cede & Co., as nominee of The Depository Trust Company, which will act as securities depository for the Bonds. Ownership interest in the Bonds will be transferred only pursuant to the "Book- Entry -Only System" of The Depository Trust Company in a denomination of $5,000 or any integral multiple thereof. After the initial deposit of the Bonds with The Depository Trust Company, they may not be removed from such custodial deposit, transferred or exchanged except as provided in the Bond Ordinance. Interest Rates and Limitations. (a) It is permissible to bid different or "split' interest rates for the Bonds; provided, however, that only one interest rate shall be specified for any maturity. (b) The maximum differential between the lowest and highest interest rates stated in the bid may not exceed three percent (3.0 %) per annum. (c) Each rate stated must be in a multiple of one eighth (1/8) or one twentieth (1/20) of one percent (1 %) per annum. (d) A zero (0) rate of interest may not be designated. (e) Each Bond shall bear interest from its date to its stated maturity at the interest rate stated in the bid, computed on the basis of a 360 -day year of twelve 30 -day months. (f) Bids may not provide for supplemental or "B" coupons or interest rates. No Optional or Mandatory Sinking Fund Redemption. The Bonds are not subject to redemption by the City prior to their maturities. Place of Payment. Principal of the Bonds will be payable to the registered owner (Cede & Co.) upon presentation and surrender of the Bonds at the corporate office of American National Bank, in Denver, Colorado, as paying agent, or its successor or assignee. Bond Insurance. The City has delegated to the Finance Director of the City or, in his absence, the City Manager, the authority to accept bids from, and to choose, with the advice of the City's financial advisor, a bond insurance company (the 'Bond Insurer ") to issue a commitment for a bond insurance policy insuring payment, when due, of the principal of and interest on the Bonds (the "Bond Insurance "). The identity of the Bond Insurer will be communicated by prior to the receipt of bids for the purchase of the Bonds. Bids for the purchase of the Bonds shall be conditioned upon the issuance, effective as of the date on which the Bonds are issued, of a policy of insurance by the Bond Insurer, insuring the payment when due of principal of and interest on the Bonds. The premium for the Bond Insurance shall be paid by the City. Each Bond will bear a statement referring to the Bond Insurance. The purchaser, holder or owner is not authorized to make any statements concerning the insurance beyond those set out in the Official Statement and in the Bond form without the prior approval of the Bond Insurer. Limited Tax General Obligation Bonds. The Bonds are limited tax general obligations, payable from all available City funds, and secured by a pledge of the City ad valorem property taxes, without any increase in the current rate of property taxes. Thus, if the funds available to the City at any time are insufficient to pay the principal of or interest on the Bonds, the City is not authorized to levy additional ad valorem property taxes to make such payments without prior voter approval of a majority of the electorate of the City voting on such a ballot issue. TERMS OF SALE Bid Proposal. Each bid must be for all the Bonds herein offered for sale. Any bidder is required to submit an unconditional bid specifying the lowest rate or rates of interest and, if appropriate, the discount and /or premium at which the bidder will purchase all of the Bonds. (But see "Limitations on Discount and Premium" below.) Bidders also must disclose the True Interest Cost (i.e., actuarial yield) on the Bonds expressed as a nominal annual percentage rate. See "Basis of Award," below. Electronic Proposals. Electronic proposals must be submitted through BIDCOMP /PARITY® (the "Approved Provider ") in accordance with this Notice of Sale. If any provisions in this Notice of Sale conflict with information provided by the Approved Provider, this Notice of Sale shall control. The City is not responsible for proper operation of nor does it have any liability for any delays or interruptions of or any damages caused by the Approved Provider. The City is using the Approved Provider as a communications mechanism and not as the City's agent to conduct electronic bidding for the Bonds. The City is not bound by any advice and determination of the Approved Provider to the effect that any particular bid complies with the terms of this Notice of Sale. All costs and expenses incurred by prospective bidders in connection with their submission of bids through the Approved Provider are the sole responsibility of the bidders, and the City is not responsible for any of such costs or expenses. Further information about the Approved Provider, including any fee charged, may be obtained from i -Deal, LLC at 1359 Broadway — 2 nd Floor, New York, New York 10018 (800- 850 - 7422). The City does not assume any responsibility or liability for bids submitted through the Approved Provider. The City will regard the electronic submission of a bid through the Approved Provider (including information about the purchase price for the Bonds and interest rate to be borne by the various maturities of the Bonds and any other information included in such transmission) as though the bid were executed on the bidder's behalf by a duly authorized signatory. If such bid is accepted by the City, this Notice of Sale and the information that is electronically transmitted through the Approved Provider shall form a contract and the successful bidder shall be bound by the terms of such contract. Good Faith Deposit. A good faith deposit (the "Deposit') in the form of a certified or cashier's check or a financial surety bond (the "Financial Surety Bond ") in the amount of $100,000, payable to the order of City of Pueblo, Colorado, is required to be submitted for each bid to be considered. If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Colorado, and such bond must be submitted to the City prior to the receipt and opening of the bids. The Financial Surety Bond must identify each bidder whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to a bidder utilizing a Financial Surety Bond, then that purchaser (the "Purchaser ") is required to submit its Deposit to the City in the form of a cashier's check (or wire transfer such amount as instructed by the City) not later than 3:30 p.m. M.D.T. on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. No interest on the Deposit will accrue to the Purchaser. The Deposit of the Purchaser will either be applied to the purchase price of the Bonds or returned to the Purchaser on the closing date upon payment of the full purchase price of the Bonds. In the event the Purchaser fails to honor its accepted bid, the Deposit will be retained by the City. Deposits of all bidders other than the Purchaser shall be promptly returned to each such bidder. Tax Status. Kutak Rock LLP, bond counsel, will opine that, under existing laws, regulations, rulings and judicial decisions, and assuming the accuracy of certain representations and continuing compliance with certain covenants, the interest on the Bonds (a) is excluded from gross income for federal income tax purposes, (b) is excluded from Colorado taxable income and Colorado alternative minimum taxable income, and (c) is not a specific preference item for purposes of the federal alternative minimum tax. However, such opinion will also state that interest on the Bonds will be included in the adjusted current earnings of certain corporations, and such corporations are required to include in the calculation of alternative minimum taxable income 75% of the excess of each such corporation's adjusted current earnings over its alternative minimum taxable income (determined without regard to this adjustment and prior to reduction for certain net operating losses). Bond counsel's opinion will also state that the accrual or receipt of interest on the Bonds may otherwise affect the federal income tax liability of the recipient and that the extent of these other tax consequences will depend upon the recipient's particular tax status or other items of income or deduction. If, prior to the delivery of the Bonds to the successful bidder therefor, the income received by private owners of obligations of the same type and character as the Bonds shall be includible in gross income for federal or State of Colorado purposes, the successful bidder, at its election made prior to the tender by the City of the Bonds for delivery, may be relieved of any obligation under the contract to purchase the Bonds. In such case, the contract to purchase the Bonds shall terminate, and the deposit accompanying the Purchaser's bid will be returned to the Purchaser upon written request therefor. Any such option shall be exercised by a letter addressed to the Finance Director and bond counsel, and deposited in the United States mails, as first class mail, postage prepaid. Rating. The City will pay the expense of obtaining ratings from Standard & Poor's Rating Group, based upon the Bond Insurance. Sale Reservations. The City reserves the privilege: (a) of waiving any irregularity of informality in any bid; (b) of rejecting any and all bids for the Bonds; and (c) of reoffering the Bonds for sale in any manner permitted by law. Adjustment of Principal Amount. Upon acceptance of a bid, the City, after consultation with its Financial Advisor, shall determine the composition of the escrow. To the extent more or less Bond proceeds are required to establish such escrow, the principal amount of the Bonds shall be adjusted upward or downward as the City shall in its discretion determine. Such adjustments may occur in any one or more years, but the net amount of the adjustments shall not exceed five percent (5.0 %) of the aggregate principal amount of the Bonds. Further, the City reserves the discretion, notwithstanding the foregoing, to vary the principal amount of Bonds in excess of the parameters set forth above if the City deems it necessary to accomplish the refunding, and notice thereof will be given over the TM3 website prior to the time bids are to be received. In the event of any such adjustment of principal amounts, any premium or discount included in the conditionally accepted bid shall be adjusted proportionally. Basis of Award. The Bonds, subject to such sale reservations, shall be sold to the responsible bidder making the best bid for the Bonds. The best bid shall be determined by computing the actuarial yield on the Bonds (i.e., using an actuarial or True Interest Cost method) for each bid received, and an award will be made (if any is made) to the responsible bidder submitting the bid that results in the lowest actuarial yield on the Bonds. "Actuarial yield" on the Bonds as used herein means that yield which, if used to compute the present worth as of the date of the Bonds (i.e., July 14, 2005) of all payments of principal and interest to be made on the Bonds from their date to their respective maturity dates using the interest rates specified in the bid, produces an amount equal to the aggregate principal amount of the Bonds plus any premium bid and accrued interest to be paid, and less any discount bid. Such calculation shall be based on a 360 -day year and a semiannual compounding interval. If there are two or more equal bids for the Bonds and such equal bids are the best bids received, the City shall determine in its discretion which bid will be accepted. Limitations on Discount and Premium. It is permissible to bid (a) a premium above the par amount of the Bonds, but any premium bid must not exceed five percent (5.0 %) of the par amount of the Bonds, or (b) a discount, but any discount bid may not exceed one -half percent (0.50 %) of the par amount of the Bonds. Each bid shall specify the amount of the premium or the discount, if any. The dollar amount of such premium or discount may be adjusted as provided in "Adjustment of Principal Amount" above. Time of Award. The City shall receive electronic proposals at the time and on the date specified above. The City expects to take action through delegation under State law of its power to conditionally award the Bonds or reject all bids to the Finance Director of the City or, in his absence, the City Manager. Bids Constitute irrevocable Offers. Each bid submitted through the Approved Provider shall be deemed an irrevocable offer to purchase the Bonds on the terms provided in this Official Notice of Sale and shall be binding upon the bidder. Offering Prices and Yields. On the date herein stated for opening bids, the successful bidder shall notify the City in writing of (a) the initial offering price of the Bonds to the public (excluding bond brokers and other intermediaries) at which a substantial portion of the Bonds of each maturity were sold, including accrued interest; and (b) the initial offering yield to maturity for each maturity of the Bonds in a stated percentage for the City's use in making any necessary arbitrage bond investment yield calculations for federal income tax purposes, and shall furnish to the City a copy of the successful bidder's reoffering yield production printout. Such information as to initial officering prices shall be based on the successful bidder's expectations as of June 13, 2005, and not on actual facts after June 13, 2005. In addition, the successful bidder will be required to sign and deliver an exhibit to the tax compliance certificate of the City with respect to the public offering price and yield of the Bonds and the cost effectiveness of the Bond Insurance, in form and substance required by bond counsel. Manner and Time of De livery. The deposit of the successful bidder shall be credited to the Purchaser at the time of delivery of the Bonds (without accruing interest). If the successful bidder for the Bonds fails or neglects to complete the purchase of the Bonds on the date the Bonds are made ready and are tendered by the City for delivery, the amount of the deposit shall be forfeited (as liquidated damages for noncompliance with the bid) to the City, except as hereinafter provided. In that event, the City may reoffer the Bonds for sale. The Purchaser shall not be required to accept delivery of any of the Bonds if they are not tendered for delivery within sixty (60) days from the date herein stated for opening bids, and, if the Bonds are not so tendered within said period of time, the good faith deposit shall be returned to the Purchaser upon its request. Unless the City shall otherwise notify the Purchaser, the Bonds will be tendered to the Purchaser for delivery on July 14, 2005. Payment and Place of Delivery. The successful bidder shall be required to make payment of the balance due for the Bonds by wire transfer in immediately available funds to an account designated by the City. Such balance of the purchase price, including any premium, must be paid in such immediately available funds and not by any waiver of interest, nor by any other concession as a substitution for such immediately available funds. The successful bidder shall be required to accept delivery of the Bonds at the office of The Depository Trust Company in New York, New York. CUSIP Numbers. CUSIP numbers shall be printed on the Bonds at the expense of the City. If an incorrect number is imprinted on any Bond or if a number is not printed thereon, any such error or omission shall not constitute cause for the successful bidder to refuse delivery of any Bond. Official Statement. The City has caused the Preliminary Official Statement to be prepared, and the Preliminary Official Statement is deemed by the City to be final as of its date for purposes of allowing bidders to comply with Rule 15c2- 12(b)(1) of the Securities and Exchange Commission (the "Rule "), except for the omission of certain information as permitted by the Rule. The Preliminary Official Statement is subject to revision, amendment and completion in a Final Official Statement, as defined below. Copies of the Preliminary Official Statement and other information concerning the City and the Bonds may be obtained prior to the sale from the sources listed under "Information" below. The City will, as soon as practicable after the award of the Bonds to the winning bidder, update the information contained in the Preliminary Official Statement to the date of the award, and such updated Preliminary Official Statement will constitute the "Final Official Statement' relating to the Bonds. The City authorizes the winning bidder to distribute the Final Official Statement in connection with the offering of the Bonds. The City will provide to the winning bidder an amount not to exceed 200 copies of the Final Official Statement on or before the seventh business day following the date of the award to the winning bidder. The winning bidder may obtain additional copies of the Final Official Statement at its expense. The Final Official Statements will be delivered to the winning bidder at the offices of the Financial Advisor at the address listed below. If the winning bidder fails to pick up the Final Official Statements at the offices of the Financial Advisor, the Final Official Statements will be forwarded to the winning bidder by mail or another delivery service mutually agreed to between the winning bidder and the Financial Advisor. For a period beginning on the date of the Final Official Statement and ending 25 days following the date the winning bidder shall no longer hold for sale any of the Bonds, if any event concerning the affairs, properties or financial condition of the City shall occur as a result of which it is necessary to supplement the Final Official Statement in order to make the statements therein, in light of the circumstances existing at such time, not misleading, the City shall, at the request of the winning bidder, notify the winning bidder of any such event of which the Finance Director of the City has actual knowledge and shall cooperate fully in preparation and furnishing of any supplement to the Final Official Statement necessary, in the reasonable opinion of the City and the winning bidder, so that the statements therein as so supplemented will not be misleading in the light of the circumstances existing at such time. Secondary Market Disclosure Undertaking. Pursuant to Securities and Exchange Commission Rule 15c2 -12, the City will undertake to provide certain ongoing disclosure, including certain annual operating data and financial information, audited financial statements and the occurrence of certain material events. A form of the undertaking is set forth in the Preliminary Official Statement. Transcript and Legal Opinion. The validity and enforceability of the Bonds will be approved by Kutak Rock LLP, as Bond Counsel, as described above. The Purchaser will receive a transcript of legal proceedings, which will include, among other documents: (a) a certificate executed by officials of the City, stating that there is no litigation pending affecting the validity of the Bonds as of the date of their delivery; (b) a certificate executed by the Finance Director of the City, on behalf of the City, or other authorized official of the City, stating that, to the best of his knowledge, the Final Official Statement as of its date did not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements made in the Final Official Statement, in the light of the circumstances under which they were made, not misleading, and that, to the best of his knowledge, since the date of the Final Official Statement no event has occurred which would cause the Final Official Statement as of the date of the delivery of the Bonds to contain any untrue statement of a material fact or to omit to state any material fact necessary to make the statements made in the Final Official Statement, in the light of the circumstances under which they were made, not misleading (provided that, if between the date of the public sale of the Bonds and the date of delivery of the Bonds, any event should occur or be discovered which would cause the Final Official Statement to contain an untrue statement of a material fact or to omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, the City shall notify the Purchaser thereof, and if in the opinion of the City or the Purchaser such event requires the preparation and publication of a supplement or amendment to the Final Official Statement, the City, at its sole expense, will supplement or amend the Final Official Statement in a form and in a manner approved by the Purchaser and by Kutak Rock LLP, as special counsel to the City); (c) a letter from Kutak Rock LLP, addressed to the City, to the effect that the firm has not independently investigated or verified the information contained in the Final Official Statement, but that during the course of the firm's assistance in the preparation of the Final Official Statement, no information came to the attention of the attorneys in the firm rendering legal services in connection with the representation which lead it to believe that the Final Official Statement, as of its date (except for any financial statements, demographic, economic, engineering or statistical data and any statements of trends, forecasts, estimates, projections, assumptions or any expressions of opinion, information concerning the Bond Insurance and the Bond Insurer and information concerning The Depository Trust company contained in the Final Official Statement and its Appendices, as to which the firm will express no view), contained any untrue statement of a material fact or omitted to state any material fact required to be stated therein or necessary to make the statements in the Final Official Statement, in light of the circumstances under which they were made, not misleading; and (d) the opinion of Kutak Rock LLP as to the validity, enforceability and tax - exempt status of interest on the Bonds. Financial Advisor. James Capital Advisors, Inc. is acting as Financial Advisor to the City in connection with the issuance of the Bonds. The Financial Advisor will not submit a bid to purchase the Bonds. Information. This Official Notice of Sale (a condensation of which has been ordered published), the Preliminary Official Statement and other information concerning the City and the Bonds may be obtained from the City's Financial Advisor, James Capital Advisors Inc., 4950 South Yosemite, Suite F2 -502, Greenwood Village, Colorado 80111 (telephone 303 - 699 -4464, fax 303 - 699 - 4888). BY ORDER OF THE CITY COUNCIL OF THE CITY OF PUEBLO, COLORADO, dated this May_, 2005. /s/ President, City Council [End of Form of Official Notice of Bond Sale] Section 2. Preliminary Official Statement. The City hereby approves and ratifies all actions by its officers and its financial and legal advisors in causing the preparation of a Preliminary Official Statement of the City (the "Preliminary Official Statement') relating to the issuance and sale of the Bonds, and hereby authorizes the distribution of the Preliminary Official Statement. The Finance Director is hereby authorized to act on behalf of the City to make changes to the form of the Preliminary Official Statement until he is satisfied and then to deem the Preliminary Official Statement a "final official statement' for purposes of Rule 15c2 -12 of the Securities and Exchange Commission. Section 3. Delegation. The City hereby delegates to the Finance Director of the City or, in his absence, the City Manager (the "City's Agent'), pursuant to the provisions of the Colorado Supplemental Public Securities Act, Section 11 -57 -201, et seq., Colorado Revised Statutes, and upon consultation with the City's financial advisor, the authority to accept bids for, and to choose a, Bond Insurer for the Bonds. The City's Agent and the other officers of the City are hereby authorized and directed to take all actions necessary to cause the Bond Insurer to issue the Bond Insurance Policy. Section 4. Further Authority. The President of the City Council, the Finance Director and other appropriate officers and agents of the City are hereby authorized to give such other notice of the sale of the Bonds, if any, as they deem appropriate, including, but not limited to, publication of the Official Notice and the distribution among investment bankers and others of the Official Notice and the Preliminary Official Statement. The Finance Director is hereby authorized to complete and to change the Official Notice of Bond Sale, based on the advice of the City's financial and legal advisors, as appropriate to carry out the intent of this Resolution. Section 5. Ratification. All action (not inconsistent with the provisions of this Resolution) heretofore taken by the City or the officers of the City directed toward refunding the Refunded Bonds and the sale and issuance of the Bonds for such purpose, including, without limitation, all action taken in connection with advertising the public sale of the Bonds, and also including the printing and distribution of the Preliminary Official Statement relating to the Bonds, be, and the same is hereby ratified, approved and confirmed. Section 6. All Other Action. The officers and agents of the City are hereby authorized and directed to take all action necessary or appropriate to effectuate the provisions of this Resolution, including, but not limited to, the distribution of the Preliminary Official Statement and the publication and distribution of the Official Notices relating to the public sale of the Bonds. Section 7. No Recourse Against Officers, Employees or Agents. No recourse shall be had for the payment of the principal of or premium, if any, or interest on any of the Bonds or for any claim based thereon or upon any obligation, covenant or agreement contained in this Resolution against any past, present or future officer, employee or agent of the City, or of any successor public corporation, as such, either directly or through the City or any successor public corporation, under any rule of law or equity, statute or constitution or by the enforcement of any assessment or penalty or otherwise, and all such liability of any such officers, employees or agents as such is hereby expressly waived and released as a condition of and consideration for the passage of this Resolution and the issuance of the Bonds. Section 8. Resolution Is Contract with Owners of Bonds and Irrepealable. After the Bonds have been issued, this Resolution shall be and remain a contract between the City and the registered owners of the Bonds and shall be and remain irrepealable until all amounts due with respect to the Bonds shall be fully paid, satisfied and discharged and all other obligations of the City with respect to the Bonds shall have been satisfied in the manner provided herein. Section 9. Repealer. All resolutions, motions, orders, bylaws, rules or regulations, or parts thereof, in conflict with this Resolution are hereby repealed only to the extent of such inconsistency. Section 10. Severability. If any section, paragraph, clause or provision of this Resolution shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining parts or provisions of this Resolution. Section 11. Governing Law. This Resolution will be governed by and construed in accordance with the laws of the State of Colorado. Section 12. Effective. This Resolution shall take effect immediately upon its introduction and passage. INTRODUCED May 23, 2005 BY Dr. Bill Sova Councilperson APPROVED: PRESIDENT CITY C IL ATTESTED BY: CITY CLERK /& e) , _ 1C) q C o; — AGENDA ITEM # I DATE: MAY 23, 2005 DEPARTMENT: FINANCE DEPARTMENT ROBERT F. HAIN, DIRECTOR OF FINANCE TITLE A RESOLUTION APPROVING A NOTICE OF SALE IN CONNECTION WITH THE PROPOSED ISSUANCE BY THE CITY OF PUEBLO, COLORADO, OF ITS LIMITED TAX GENERAL OBLIGATION REFUNDING BONDS, SERIES 2005; AUTHORIZING AND PRESCRIBING THE PUBLIC SALE OF SUCH BONDS; AND PROVIDING CERTAIN DETAILS IN CONNECTION WITH SUCH PUBLIC SALE. ISSUE Should City Council approve the public sale of the Limited Tax General Obligation Bonds issued to provide funds to refund selected outstanding limited Tax General Obligation bonds from the Series 1996 used to construct the Historic Arkansas River Project RECOMMENDATION The Staff recommendation is, Approval of Resolution. BACKGROUND In 1996 the City of Pueblo issued $12,850,000 of Limited Tax General Obligation Bonds to help finance the Historic Arkansas River Project. The principal amount of $9,270,000 is currently outstanding. Bonds payable through 2006 are non refundable, but the remaining principal balance of $8,130,000 due after that date are being refunded through this advanced refunding. FINANCIAL IMPACT The City anticipates issuing $8,495,000 in new debt to refund $8,130,000 of 1996 debt, and cover the issuance cost of the new issue. Due to interest rate saving the City expects a net savings of approximately $80,000 per year over the eleven -year life of the new bond issue.