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.