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HomeMy WebLinkAbout1976-15 Concerning the Public Sale of Special Assessment Bonds of the TownRE50LUT10N N0. ~~ -76 CONCERNING THE PUBLIC SALE OF SPECIAL ASSESSMENT BONDS OF THE TOWN OF VAIL, FOR TOWN OF VAIL, COLORADO, STREET IMPROVEMENT DISTRICT N0. 1, AND AUTHORTZING NOTICE THEREOF. WHEREAS, the Town Council has heretofore by Ordinance No. 14-75 created Town of Vail, Colorado, Street Improvement District No. 1 and authorized the construction of improvements thereon; and WHEREAS, the Town Council is empowered by Ordinance No. 9-76 to finance said construction by issuing its special assessment bands payable out of moneys collected on account of assessments to be levied against the property within said District and specially benefited by said improvements; and ' WHEREAS, the Town Council has determined to offer special as- sessment bonds to be designated Town of Vail, Colorado, Street Im- provement District No. 1 Local Improvement Bonds, Series October 1, 1976, for said purpose for public sale; and WHEREAS, the Town Council has heretofore adopted Resolution t1o. 1.3 -76 authorizing and prescribing the form of notice of such sale; and ,, WHEREAS, no action has been taken pursuant to said Resolution; and WHEREAS, the form of said notice requires revision prior to the publication and distribution thereof in order to conform to the pro- visions of Ordinance No. 14-76. NOW, THEREFORE, BE IT RESOLVED BY THE 'T'OWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Section 1. Resolution No. ~3 --76 is hereby repealed and re- placed hereby. Section 2. The Town of Vail, Colorado, Street Improvement Dis- trict No. 1 Local Improvement Bonds, Series October 1, ].976, in the aggregate principal amount of $540,000, are hereby ordered to be advertised publicly for sale, as hereinafter provided. On Friday, September 17, 1976, at the hour of 10:00 a.m., Mountain Time, at Roam 203, Boston Building, 828 17th Street, Denver, Colorado, the Town Manager shall cause sealed bids to be received and to be opened 2~. publicly for the purchase of the Bands. Section 3. The Town Manager is hereby authorized and directed to have published a notice of sale of the bonds in abbreviated farm in the Vail Trail, Vail, Colorado, on a date sufficiently prior to the sale date to give adequate notice thereof. The Town Manager is also authorized to give such other and further notice of such sale as may seem appropriate. The abbreviated notice so to be published shall be in substantially the following form: a 3-- r i S CERTIFIED RECORD OF PROCEEDINGS OF THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO RELATING TO A RESOLUTION AUTI30RTZTNG NOTICE OF PUBLIC SALE a OF TTS SPECIAL ASSESSMENT BONI]S xN THE PRINCIPAL AMOUNT OF $S~O,OdO FOR TOL~N OF VATL, COLORADO STREET IPiPROVEl~ENT DISTRICT NO. I. i • ~ ~ ST11TE OF COLOR71D0 } COUNTY OF EAGLE ) ss.• TOWN OF VAIL ) The Tawn Council of the Town of Vail., Colorado, met in regular session at the Vail Municipal. Building in said Town on Tuesday, the 7th day•of September, 3.976, at the hour of 7:3a p.m. The following members of the Town Council were present; Mayor: John A. Dobson Councilmen: John Donovan Bi11 Heimbach r~~Lz rcrsT±±~~? ~~ .. Bob Ruder 7asef Staufer The following members of the Town Council were absent: s G W~~ The following persons were also present: Thereupon, the following praceedings,,among athers~, were had and taken: Councilman f~j~L(~.~[/v introduced and moved the adoption of the following Resolution which was read in full. 1. 4 Form of Nvt.ice ) NOTICE OF BOND SALE 540,000 5 TOWN OF VAIL, COLORADO STREET IMPROVEMENT DISTRICT NO. 1 LOCAL IMPROVEMENT BONDS SERIES OCTOBER 1, 1976 PUBLTC NOTICE IS HEREBY GIVEN that the Town Manager of the Town of Vail, Colorado, on Friday, September 17, 1976, at the hour of 10:00 a.m., Mountain Time, in Room 203, Boston Building, 828 17th Street, Denver, Colorado, 80202, shall receive sealed bads and publicly open the same for the purchase of the Town of Vail, Colorado, Street Im- provement District No. 1 Local Improvement Bonds, Series October 1, 1976 in the aggregate principal amount of. $540,000, said bonds being dated October 1, 1976, maturing on October 1, 1987. The bonds will bear interest at a rate or rates not exceeding 10~ per annum, payable semiannually, with the first interest coupon being payable October 1, 1977. There as a maximum interest spread permitted of 20 per annum V! between the highest and lowest interest rate for different bonds, The bonds will be redeemable prior to maturity at the option of the Town an any interest payment date in regular numerical order, at a price equal to the principal amount of each band so redeemed, plus accrued interest thereon to the redemption date; provided, however, that whenever on any interest payment date there exist in the "'T'own of Vail, Colorado, Street Improvement District No. 1 Local Improvement Bonds, Series October 1, 1976 Bond and Interest Fund" hereinafter described, sufficient funds exceeding six months interest an the unpaid balance of the bonds issued and outstanding to redeem one or more bonds, the Town must exercise its option to redeem to the extent possible. The Town shall furnish to the successful bidder the executed bonds and the unqualified opinion of Messrs. DeMuth & Eiberger, Attorneys at Law, 1600 Western Federal Savings Building, Denver, 4~. L Colorado, 80202, approving the Legality of the bonds. The Official Notice of Bond Sale, of which this publication is a condensation, together with the Official Statement and the purchase proposal are available at the offices of the Town Manager, Town of Vail, P.O. Bax 100, Vail, Colorado, 81657, ar from Boettcher and Company, 828 17th Street, Denver, Colorado, 80202. BY ORDER OF the Town Council of the Town of Vail, Colorado, this 7th day o£ September, 1976. Rosalie Jeffrey Town Clerk, Town of Vail, Colorado End of Form of Notice) 0 5_ Section 4. An Official Notice of Bond Sale is hereby authorized to be prepared and mailed to such bond and investment houses and other interested persons as shall be deemed expedient by the Town Council or Boettcher and Company, such Notice to be in substantially the fal- lowing form: 6- OFFICIAL NOTICE OF BOND SALE rJ~~,aaa TOWN OF VAIL, COLORADO 5TREET IMPROVEMENT DISTRICT N0. 1 LOCAL IMPROVEMENT BONDS OCTOBER 1, 1976 PUBLIC NOTICE IS HEREBY GIVEN that the Town of Vail, Colorado, herein the "Town") will, on Friday, SEPTEMBER 17, 1976 at the hour of 10;00 a.m., Mountain Time, at Room 203, Boston Buil- ding, 828 17th Street, Denver, Colorado, 80202, receive sealed bids and publicly open the same for the purchase of the negotiable, coupon, special assessment bonds of the Town, particularly described below: BOND PROVISIONS ISSUE. The bonds will be "Town of Vail, Colorado, Street Tm- provement District Na. 1 Local Improvement Bonds, Series October 1, 1976," in the principal. amount of $540,000, dated as of October 1, 1976, in the denomination of $5,000 each, numbered consecutively in regular numerical order from 1 to 108, and payable to bearer~.(herein the "bonds") . MATURITY: The bonds will be term bonds maturing on October 1, 1987. PRIOR REDEMPTION: The bonds will be redeemable prior to maturity at the option of the Town on any interest payment date in regular numerical order, at a price equal to the principal amount of each band so redeemed plus accrued interest thereon to the redemption date; provided, however, that whenever on any interest payment date there exist in the "Town of Vail, Colorado, Street Improvement District No. 1 Local Improvement Bonds, Series October 1, 1976, Bond and Interest Fund" hereinafter described, sufficient funds exceeding six months' interest on the unpaid balance of the bonds issued and outstanding to redeem one ar more bonds, the Town must exercise its option to redeem to the extent possible. 7 V INTEREST RATES AND LIMITATIONS: The maximum net effective in- terest rate is ten per cent (l00) per annum. The maximum interest spread permitted for the issue is two percent (20} per annum; that is, the maximum rate of interest accruing on any bond prior t^ its ma- turity cannot exceed the minimum rate of interest accruing on any other bond prior to its maturity by more than two percent (24) per annum. Interest on the bonds may be evidenced by one or more sets of coupons payable to bearer and payable semiannually on April 1 and October 1 in each year, the first coupon being payable October 1, 1977. A zero (0) interest rate cannot be named. It is permissible to bid different or "split" interest rates for the bonds, provided, however, one interest rate only shall be specified for any bond. Each rate stated must be a multiple of one-eighth (1/8) or one-twentieth 1/20) of one percent {lg) per annum. PAYMENT: Both the principal of and interest on the bonds will be payable in lawful money of the United States of America without deduction for exchange or collection at United Bank of Denver National Association, Denver, Colorado. d0 REGISTRATION FOR PAYMENT: The authorizing proceedings and the bonds wi11 contain no provision for the registration of bonds far payment as to principal or interest, ar both. AUTHORIZATION: The bonds wi11 be authorized and issued, and the contract of the Town of Vail for payment of the principal of and interest on said bonds shall become effective, only pursuant to an ordinance of the Town Council, which will be finally adopted following the sale, under the limitations of the Colorado Constitution and the Charter and Ordinances of the Town of Vail, PURPOSE OF ISSUE: The bonds herein offered for sale will be authorized for the purpose of constructing street improvements, including grading, base asphalt paving, local drainage improvement, provisions for public utilities, and bridge improvements in the Bighorn area of the Town, SECURITY: The bonds wi11, in the opinion of bond Counsel, be special, limited obligations of the Town, payable as to both principal and interest solely from moneys collected on account of assessments 8~ 4 to be levied against the property within Town of Vail, Colorado, Street Improvement District No. 1 and specially benefited by the construction of the improvements therein, and not otherwise, The bonds are secured by an irrevocable pledge of the "Yawn of Vail, Colorado, Street Improvement District No. 1 Local Improvement Bonds, Series October 1, 1976, Bond and Interest Fund", into which such money shall be deposited, and of the "Town of Vail, Colorado, Local Im- provement District Surplus and Deficiency Fund", into which shall be deposited surplus moneys of any local improvement district of the Town now existing or hereafter created. As additional security, the Town will covenant in the authorizing proceedings that whenever three- faurths of the bonds have been paid and cancelled, and for any reason the remaining assessments are not paid in time to take up the re- maining bonds and the interest coupons appurtenant thereto and there are not sufficient moneys in the "Town of Vail, Colorado, Local Im- provement District Surplus and Deficiency Fund" to do so, then the Yawn shall pay said bands and the interest thereon when due and reimburse itself by collecting the unpaid assessments due. TERMS OF SALE BID PROPpSALS: All bidders are required to submit an uncon- ditional and written bid for the entire issue, specifying the interest rate or rates and premium, if any, bid for the bands. No specified bid form is required. It is also requested for informational purposes that each bid disclose the foal net interest cost in dollars and cents and the net effective interest rate. Each bid must also be in a sealed envelope addressed to the Town Manager, Town of Vail, Rvom 203, Boston Building, 828 17th Street, Denver, Colorado 80202. BTD CHECK: Each bid must be accompanied by a cashier's check or a certified check of a solvent bank or trust company made payable to the Tawn of Vail in the amount of at least $10,000, or by a cash deposit in a like amount. Such check or cash deposit will be held as evidence of good faith pending the delivery of the bonds, which deposit (check or cash) will be promptly returned to any such bidder if his bid is not accepted. TAX STATUS: In the opinion of band counsel, the interest on the 9-- bands is exempt from taxation by the United States of America under present federal income tax laws. If prior to the delivery of the bonds to the successful bidder therefor, the income received by private holders of obligations of the same type and character shall be taxable or shall be required to be used in any income tax computation by the terms of any federal law hereafter enacted, then the successful bidder at his election made prior to the tender by the Town of the bonds for delivery, may be relieved of his obligation under the contract to purchase the bonds. In such case the contract to purchase the bonds will 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 bond counsel hereinafter designated and deposited in the United States mails, as first-class mail, postage prepaid. SALE RESERVATIONS: The Town reserves the privilege: 1) Of waiving any irregularity or informality in any bid; 2) Of rejecting any and all bids for the bonds; and 3) Of reoffering the bonds for sale, as provided by law. BASIS OF AWARD: The bonds, subject to such sale reservations, will be sold to the responsible bidder making the bid for the bonds to the best advantage of the Town, which bid will be determined on the basis of the lowest net interest cost to the Town, which is defined as the total amount of interest to accrue from the date of the bonds to the date of maturity, without regard to any option of redemption, less the amount of any cash premium above par bid. zf there are two (2) or more equal bids for the bonds, and such equal bids are the best bids received, the Town will determine which bid will be accepted. NO SALE BELOW PAR: The bonds will not be sold at less than their principal amount and accrued interest thereon to the date of their delivery. MANNER AND TIME OF DELIVERY: The deposit of the best bidder will 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 within ten 10) days after the bonds are made ready and are tendered by the Town for delivery, the amount of his deposit will be forfeited {as liqui- 10- dated damages for noncompliance with the bid) to the Town, except as hereinafter provided. In that event the Town may reoffer the bonds for sale as provided by law. The purchaser will not be required to accept delivery of any of the bonds, if .they are not tendered for delivery within seventy (70) days from the date herein stated for opening bids; and if the bonds are not so teedered within said period of time, the good faith deposit will be returned to the purchaser upon his request. The Town contemplates, however, effecting the de- livery of the bonds.ta the purchaser thereof on or about November 4, 1976. PAYMENT AND PLACE OF DELIVERY: The successful bidder or bidders will be required to accept delivery of, and to make payment of the balance due for, the bonds: 1) At the office of Boettcher and Company, Denver, Co1o- rada; or 2} At the successful bidder's request and expense, at some bank or trust company in the United States of America, as requested. Payment of the balance of the purchase price due at delivery must be~ made in federal funds or other funds acceptable to the Town and to any bank or trust company designated as the place of delivery for immediate and,, unconditional credit to the Town, or as otherwise di- rected by the Town. The balance of the purchase price, including any premium, must be paid in such funds and not by cancellation of any interest coupons, nor by any waiver of interest, nor by any other concession as a substitution for such funds. CUSIP NUMBERS: Tt is anticipated that CUSIP identification numbers will be printed on the bonds, but neither the failure to print such numbers on any bond nor any error with respect thereto shall constitute cause for a failure or refusal by the purchaser thereof to accept delivery of and to pay far the bands in accordance with the terms hereof. All expenses in relation to the printing of the CUSIP numbers on the bonds shall be paid for by the Town, but the CUSIP Service Bureau charge for the assignment of said numbers shall be the responsibility of and shall be paid for by the purchaser. LEGAL OPINION, BONDS AND TRANSCRIPT: The legality of the bond issue will be approved by Messrs. DeMuth & Eiberger, Attorneys at Law, 13.- y f 1600 Western Federal Savings Building, Denver, Colorado 80202, whose unqualified, final, approving opinion, together with the printed bonds and a certified transcript of the legal proceedings, including a certificate stating that there is no litigation pending affecting the validity of the bonds as of the date of their delivery, and other " closing documents, will be furnished to the purchaser without charge by the Tawn. Bond counsel's approving opinion appertaining to the bond issue will recite, in conventional form, that bond counsel has examined the Constitution and the laws of the State of Colorado, the Charter of the_Town, and a certified copy of the record of the pro- ceedings of the Town Council taken preliminary to and in the issue of the bonds, and that bond counsel has examined bond no. 1 of said issue and has found the same properly executed and in due legal form. The opinion wi11 then conclude (subject to the provisions hereinabove entitled "Tax Status"} substantially as follows: Tt is our opinion that such proceedings show lawful autha~ rity for the creation of said District, the construction of said improvements, and the issue of said bonds under the Constitution and laws of the State of Colorado and the Charter and ordinances of the Town of Vail now in force; that said bands are valid and legally binding obligations of said Town; that the principal of and interest on said bonds are payable solely from a special fund irrevocably and exclusively pledged for the full and prompt payment of all said bands designated "Town of Vail, Colorado, Street Improvement District No. 1, Local Improvement Bands, Series October 1, 1976, Sand and Interest Fund", consisting of all the moneys collected by the Town on account of special assessments (principal, interest, and penalties, if any) to be levied upon the completion of said improvements against all the assessable lots, tracts, and parcels of land in said District, including any proceeds derived from the sale of the bonds and remaining after the payment of all the casts and expenses of making said improvements; that said bonds, together with bonds of other special or local improvement districts in the Town now existing or hereafter created are additionally secured by and are payable from moneys in the °Town of Vail, Colorado, Local Im- provement District Surplus and Deficiency Fund"; that whenever there is a deficiency in said Bond and Interest Fund, to meet the payment of outstanding bonds, principal and interest, as the same become due, the deficiency shall be paid, if possible, out of said Surplus and Deficiency Fund; that whenever three-fourths of said bonds have been paid and cancelled and for any reason the remaining assessments therefor are not paid in time to take up the remaining bonds of said District and interest due thereon, and there is not sufficient money therefor in said Surplus and Deficiency Fund, then the Town shall pay such remaining bonds when due and interest due thereon and reimburse itself by col- lecting the unpaid assessments due the District. It is also our opinion that the ordinance creating said District provides that except for the cost to be paid by other than special assessments, the total cost shall be apportioned, levied and assessed against such land in the District upon the completion of the work there- in. It is also our opinion that as to any subdivisions of any real estate assessed in pursuance of said ordinance, the as- sessments shall in each case be a lien upon all the subdivisions 12- in proportion to the respective shares, and that the lien for each such assessment shall be prior and superior to all other liens, claims, encumbrances and titles, whether prior in time or not, and shall constitute such a lien until paid, provided, however, a lien shall not attach to any tract or parcel of land so assessed which is owned by the state, or any agency, or in- strumentality thereof, or any county, municipality, school district, special or quasi-municipal district, other political subdivision, or private corporation operating a public utility; provided further, such assessment lien is subordinate and junior to any lien for general taxes and is subject to extinguishment by the sale of any property on account of the nonpayment of general taxes; and provided, further, any such assessment lien on any tract or parcel of land is prior and superior to any assessment lien thereon subsequently levied. Tt is also our opinion that the interest on the subject bonds is exemgt from federal income taxes under existing laws and regulations of the United States of America." A certified true copy of such opinion will be printed on each bond at the Town's expense. INFORMATIQN: This Official Notice o£ Bond Sale (a condensation of which may be published) and financial and other information con- cerning the Town and the bonds may be obtained from the Town Manager, Town of Vail, P.O. Box 100, Vail, Colorado, 81657, or from Boettcher and Company, 828 17th Street, Denver, Colorado 80202. s/ RQSALZF JEFFREY Town Clerk Town of Vail, Colorado 13- 4~ L Section 5. Upon receipt of such bids, the Town Manager shall tabulate the same and he thereupon Shall accept the bid of the best bidder or shall reject all bids forthwith, reporting to the Town Council which shall thereupon approve or disapprove of the action so taken. ' Section 6. The bonds shall be authorized and issued and the contract of the Town of Vail to pay the principal of and interest on said bonds shall become effective only pursuant to a duly adapted ordinance of the Town Council of the Town of Vail. Section 7. The officers of the Town of Vail, with the assistance of its financial consultants and bond counsel, are hereby authorized and directed to take all action necessary or appropriate to effectuate the provisions of this Resolution. Section 8. A11 action heretofore taken by the Town Council and by the officers of the Town of Vail on its behalf directed toward the accomplishment of the project for which the bonds are to be offered for public sale is hereby ratified, approved and confirmed. Section 9, A11 by-laws, orders and resolutions, or parts there- of, in conflict with this resolution, are hereby repealed, except that this repealer., shall not be construed to revive any by-.law, order or resolution, or part thereof, heretofore repealed. Section 10. If any section, paragraph, clause or provision of this resolution shall for any reason be held to be invalid or unen- forceable, such invalidity or unenforceability shall not affect any of the reamining sections, paragraphs, clauses ar provisions of this Resolution. Section 11. This Resolution shall take effect immediately upon its adoption. INTRODUCED, READ, APPROVED, PASSED, AND ADOPTED this 7th day of September, 1976. TOWN) SEAL ) Attest: Town Cle~dk TOWN OF V I Sy Mayor 1=~- N • ~ ~' ~ ` Councilman '~CM~G(~(if^~ seconded the motion, and the question being upon the passage and adoption of said Resolution, the roll was called with the following result: Those voting "Yes": Councilmen: John A. Dobson John Donovan• Bill Neimbach r,..1.:. l ~ ~... ~ I~ l u.~ Bob Ruder Josef Stainer Those voting "No" : "/ c~~ members of the Council present having voted in ~Eavor of the passage and adoption of the Resolution, the presiding officer thereupon declared the Resolution duly passed and adopted. Thereupon, after consideration of other business to come before the Council, the meeting was adjourned. a TOWN} SEAL} ATTEST: Town Clerk Town of Vail., Colorado of Vail, Colorado 1!:i_ r ~ •' STATE OI' COLORADO ) COI3NTY OF EAGLE ) ' s s . TOWN QF VATL ) T, Rosalie Jeffrey, the Town Clerk of the Town of Vail, Colorado, do hereby certify that the attached copy of Resolution No. -~76, authorizing Notice of Bond Sale for its Town of Vail, Colorado, Street Improvement District No. 1 Local Improvement Bonds, Series October 1, 1976, is a true and correct copy of said Resolution as passed and adapted by the Town Council at a regular meeting thereof held at the Vail Municipal Building, the regular meeting place of the Town Council in the Town, on Tuesday, the 7th day of September, 1976; that a true copy of said Resolution has been duly executed and authenticated by the s~.gnatures of the Mayor of the Town of Vail and myself, as Town Clerk of said Town, sealed with the seal of the Tawn, and recorded in the off~.cia1 records of the Tawn, T further certify that the fore- going pages constitute a true and correct copy of the record of the proceedings of the Town Council. at its regular meeting of September 7, 1976, insofar as said proceedings relate to said Resolution; that said proceedings were duly had and taken'; that said meeting Baas duly held; and that the persons were present at said meeting as therein shown< IN WITNESS WHEREOF, T have hereunto set my hand and the seal of the Town of Vail, Colorado this 7th day of September, 1976. Town Clerk Town of Vail, Colorado TOWN) SEAL )