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HomeMy WebLinkAbout1975-12 Authorizing the Notice of Bond of Sale for its General Obligation Bonds Dated December 1, 1975i C E R T I F I E D R E C O R D O F PROCEEDINGS OF THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO RELATING TO A RESOLUTION AUTHORIZING NOTICE OF BOND SALE FOR ITS GENERAL OBLIGATION BONDS DATED DECEMBER 3., 1975 ZN THE PRINCIPAL AMOUNT OF $$6D,ODD STATE OF COLORADO ) COUNTY OF EAGLE ) ss. TOWN OF VAIL ) The Town Council of the Town of Vail, Colorado, met a.n regular session at the Municipal Building in said Town on Tuesday the 21st day of October, 1975, at the hour of 7:30 o'clock P.M. Upon roil call, the following were present: Mayor: John A. Dobson Councilmen: Thomas Steinberg John Donovan Joseph Langmaid Josef Staufer Kathleen Klug Town Clerk: Rosalie Jeffrey Town Attorney: Gene A. Smith Absent: James M. Slevin Thereupon Councilman John Donovan introduced and moved the adoption of the following Resolution which was read in full and is as follows: RESOLUTION N0. 1.2 Series of 2975 CONCERNING THE PUBLIC SALE OF GENERAL OBLIGATION BONDS OF THE TOWN OF VATL; PROVIDING DETAILS CONCERNING THE BONDS, THEIR SALE, THE PROJECT AND FUNDS RE- LATING THERETO; AND PROVIDING OTHER MATTERS RELATING THERETO. WHEREAS, the Town of Vail, in the County of Eagle and the State of Colorado, is a political subdivision of the State, a body corporate and politic, and a home-rule town pursuant to Article XX of the State Constitution, and article 2 of title 31, C.R.S. 1973; and WHEREAS, at a special municipal election duly called and held in the Town of Vail on Tuesday, October 14, 1975, the electors of the Town qualified to vote thereon approved each of three band questions submitted thereto, which bond questions included authorization for the Town to issue its negotiable, interest bearing general obligation bonds for the purpose of providing park and recreational land, improve- ments and facilities as well as bonds to provide additions and improvements to the Vail Transportation Center (herein collectively referred to as the "project" or "projects"), in aggregate principal amounts not to exceed the respective amounts hereinafter stated, to defray in whole or in part the cost of each project designated in the respective bond question submitted, as follows: Character of Bonds Park and Recreation Bonds Maximum Amount of Principal 775,000 Transportation Center Improvement Bonds and; 85,004 WHEREAS, the Town Council has determined to offer its bonds for said park and recreational purposes and for said Transportation Center Tnprovement purposes at public sale by means of its General Obligation Bonds, Series December 1, 2- 1975 {the "Bonds") as provided by this resolution; and ' WHEREAS, due to the necessity o£ immediately issuing without further delay the said Bonds and of obtaining promptly the proceeds thereof far the purpose of defraying in part the cost of the project pravided in the Park and Recreation 1 bond question and the Transportation Center Improvement bond question, due to the necessity of accepting a bid for the purchase of said Bonds and of issuing them in a relatively favorable market and at a time when a volatile and rapidly changing market without predictable direction permits their C sale and issuance on terms favorable to the Town, due to the necessity of undertaking each such project authorized by I said bond questions without further delay and of avoiding to the extent practicable any further maternal and rapid escalation of construction and other acquisition costs per- taming to said project, and due to the urgent need of ad- ditional facilities for use by and service to the public without serious disruption, the Town Council has also deter- mined, and does hereby further declare, that an emergency now exists and that this resolution sha11 take effect im- mediately from and after its passage in accordance with law. NOW, THEREFORE, be it resolved by the Town Council of the Town of Vail, Colorado: Section 1. The Town of Vail General Obligation Bands, Series December 1, 1975, in the aggregate principal amount of $850,000, sha11 be, and the same are hereby ordered to be, advertised publicly for sale, as hereinafter provided; and on Wednesday, November 5, 1975, at the hour of 10:00 a.m., Mountain Time, at Room 203, Boston Building, 828 17th Street, Denver, Colorado 80202, the Town Manager shall cause sealed bids to be received and to be opened publicly for the pur- chase o£ the Bonds. 3- Section 2. The Town Manager be and hE~ hereby is authorized and directed to have published a notice of sale of the bonds in abbreviated form 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 apW propriate. ,. Section 3. Such abbreviated notice so to be published shall be in substantially the following form: Form of Notice) NOTICE OF BOND SALE 860,000 TOWN OF VAIL, COLORADO GENERAL OBLIGATION BONDS SERIES DECEMBER 1, 1975 PUBLIC NOTICE IS HEREBY GIVEN that the Town txanager of the Town of Vaal, Colorado, on Wednesday, November 5, 1975, at the hour of 10:00 a.m., Mountain Time, in Room 203, Boston Building, 828 17th Street, Denver, Colorado 80202, sha11 receive sealed bids and publicly open the same for the I purchase of the Town of Vail General Obligation Bonds, Series December 1, 1975 in the aggregate principal amount of 850,000, said bonds being dated December I, 1975, maturing serially in varying amounts on December 1, in each of the years 1976 through 1995, inclusive. The bonds will bear in- terest at a rate or rates not exceeding 10~ per annum, payable semiannually, with the first interest coupan being payable June 1, 1976. There is a maximum interest spread permitted of 2~ per annum between the highest and lowest interest rate for different maturities. Bonds maturing on and after December 1, 1986, will be subject to prior re- demption on and after December 1, 1985 at a price equal to the principal amount of each bond so redeemed, accrued interest thereon to the redemption date, and a premium of 1 1/2~ of the principal amount of each bond so redeemed. The Town shall furnish to the successful bidder the executed bands and the unqualified opinion of Messrs. Rovira, DeMuth & Eiberger, Attorneys at Law, 1600 Western Federal Savings Building, Denver, 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. Box 100, 5- Vail, Colorado 81657, or from Boettcher and Company, 828 17th Street, Denver. Colorado 80202. . BY ORDER OF the Town Council of the Town of Vail, Colo- rado, this 21st day of October, 1975. Rosalie Jeffrey Town Clerk, Town of Vail, Colorado End of Form of Notice) 6_ Section 4. That an Official Notice of Bond Sale is hereby author~.zed 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 t'ollowing form: 7- OFFICIAL NOTICE OF BOND SALE 60,000 TOWN OF VAIL COLORADO GENERAL OBLIGATION BONDS Series December 1, 1975 PUBLIC NOTICE IS HEREBY GIVEN that the Town of Vail, Colorado (herein "TDwn"? will, on Wednesday, NOVEMBER S, 1975, at the hour of 10:00 a.m., rlountain Time, at Room 203, Boston Building, 828 17th Street, Denver, Colorado 80242, receive sealed bids and publicly open the same for the purchase of the negotiable, coupon, general obligation bonds of the Town, par~.icularly described below: BOND PROVISIONS ISSUE: "Town of Vail General Obligation Bonds, Series December 1, 1975," in the principal amount of $860,000, dated as of December 1, 1975, in the denomination of $5,000 each, numbered consecutively in regular numerical order from 1 upwards, and payable to bearer (herein "bonds"). MATURITY: The bonds will mature serially in regular numerical order on December 1 in each of the years and amounts hereinafter designated, as follows: Bonds Numbered Principal all incl usive}Amounts Maturity 1 to 3 15,000 1976 4 to 7 20,004 1977 8 to 12 25,000 1978 13 to 16 20,000 1979 17 to 21 25,000 1980 22 to 27 30,000 1981 28 to 33 30,000 1982 34 to 39 30,000 1983 40 to 46 35,000 1984 47 to 53 35,000 1985 54 to 61 40,000 1986 62 to 70 45,000 3.987 71.to 79 45,000 1988 80 to 89 50,000 1989 90 to 100 55,000 1990 101 to 112 60,000 1991 113 to 125 65,000 1992 126 to 139 70,000 1993 140 to 153 70,400 1994 154 to 172 95,000 1995 g.. PRIOR REDEMPTION: Bonds numbered 54 through 172 maturing on and after December ~., 1986, will be subject to redemption prior to their respective maturities, at the option of the Town, in whole or in part, in inverse numerical order, on December 1, 1985, or on,any interest payment date thereafter prior to maturity, at a price equal to the principal amount of each band so redeemed, accrued interest thereon to the redemption date, and a premium of one and one--half percent 1 1/2~) of the principal amount of each bond so.redeemed, INTEREST RATES AND LIMITATIONS: The maximum net effective interest rate is ten percent (l00) per annum, The maximum interest spread permitted for the issue is two per- cent (2~) per annum; that is, the maximum rate of interest accruing on~any band prior to its maturity cannot exceed the minimum rate of interest accruing on any other bond prior to its maturity by more than two percent (2~) per annum. Interest on the bonds shall be evidenced by only one set of coupons payable to bearer (that is, a second set of coupons designated "B" or any other sat of detachable coupons is not permitted) and payable semiannually on June 1, and December 1 in each year, the first coupon being payable .7une 1, 1976. 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 maturity. Each rate stated must be a multiple of one-eighth { 1/8 ) or one--twentieth (1/2 d ) of one per cent 1~) per annum. PAYMENT: Both the principal. of and the interest on the bonds wall 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, 9-- F NO REGISTRATION FOR PAYMENT: The authorizing proceedings and the bonds will contain no providian for the registration of bonds for payment, as to principal, or interest, or both. AUTHORIZATION. The bonds will be authorized and issued and the contract of the Town of Vail creating an indebtedness of the Town for payment of the principal of and interest on said bonds shall became 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 of the Town of Vail. PURPOSE OF ISSUE: The bonds herein offered for sale will be authorized for the purpose of providing Town park and recreational facilities and of providing improvements to the Vail Transportation Center of the Town {herein "System"}. SECURITY: The bonds will, in the opinion of the bond counsel, be direct general obligations of the Town, payable as to both principal and interest from general (ad valorem) taxes levied against ail taxable property within the Town without limitation as to rate or amount. The bands are additionally secured by a pledge of the Town's sales tax revenues derived from a sales tax of 2g of gross receipts from the sale of tangible personal property and the furni- shing of services within the Town, provided, however, such pledge of said sales tax revenues is on a parity with the Town's obligation to pay, from said sales tax revenues, the interest on and the principal of the Town's General Obli- gation.Bonds, Series November 1, 1973 in the original prin- cipal amount of $3,000,000 and the Town's General Obligation Bonds, Series March 1, 1974 in the original principal amount of $5,500,000, and the Town's General Obligation Refunding Bonds, Series 1974, dated November 15, 1974 in the original principal amount of $2,640,000, which Refunding Bonds refunded the full $3,000,000 principal amount of the Town's General Obligation Bonds, Series November 1, 1973. The bonds are additionally secured by a pledge of net revenues of the System. 10~ TERMS OF SALE BID PROPOSALS: Any bidder is required to submit an unconditional and written bid for the entire issue, specifying the interest rate or rates and premium, if any, bid for the bonds. No specified bid form is required. It is also re- quested for informational purposes that each bid disclose the total 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, Room 203, Boston Building, 828 17th Street, Denver, Colorado 80242. BID 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 Town of Vail in the amount of at least 10,U44, 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 bond counsel, the interest on the bonds is exempt from taxation by the United States of America under present federal income tax laws. If priar 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 hereinafter enacted, then the successful bidder at his election made prior to the tender by the Tawn of the bonds for delivery, may be relieved of his obligation under the contract to purchase the bonds. Tn such case the contract to purchase the bonds will terminate, and the deposit acM companying 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 band counsel. hereinafter designated and deposited in the United States mails, as first-class mail, postage prepaid. 11- 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 reser- vations, will be sold to the highest 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. If 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 liquidated 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 (7a) 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 will be returned to the purchaser upon his request. The Town contemplates, however, effecting the delivery of the bonds to the purchaser thereof on or before January 9, 1976. 12- 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, Colorado; 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 directed 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. CUSTP NUMBERS: It is anticipated that CUSTP identifi- cation numbers wi11 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 for the bonds in accordance with the terms hereof. A11 expenses in relation to the printing of the CUSTP numbers on the bonds shall be paid for by the Town, but the CUSTP 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. Rovira, DeAluth & Eiberger, Attorneys at Law, 1500 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 af- fecting the validity of the bands as of the date of their delivery, and other closing documents, wi11 be furnished to 13- t the purchaser without charge by the Town. Sond 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 proceedings of the Town Council taken preliminary to and in the issue of the bonds, and that bond counsel has examined bond numbered one of said issue and has found the same properly executed and in due legal forts. The opinion will then conclude (subject to the provisions hereinabove entitled Tax Status"} substantially as follows: It is our opinion that the above specified proceedings of the Town of Vail, Colorado evidence lawful authority for said bonds under the laws of the State of Colorado, including the Town of Vail Charter, now. in force; that said bonds are valid and the Town is legally bound by the same; and that all of the taxable property in said Town is subject to the levy of an ad valorem tax. to pay the saane without Limitation of rate or amount, and that the Town Council has provided for the application of certain sales tax revenues of the Town of Vail to pay the interest on and the principal of said bonds. It is also our opinion that the interest on the subject bonds is exempt 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. ZNFORMATYON: This Official Notice of Bond Sale (a con- densation of which may be published) and financial and other information concerning 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. $2$ 17th Street, Denver, Colorado $0202. s/ ROSALIE JEFFREY Town Clerk Town of Vail, Colorado 14-- Section 5. Upon receipt of such bids, the Town Manager shall tabulate the same and he thereupon shall accept the bad 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 5. The officers of the Town of Vail, with the assistance of its.financial consultants and bond counsel be, and they hereby are, authorized and directed to take all action necessary or appropriate to effecuate the provisions of this resolution. Section 7, All action heretofore taken by the Town Council and by the officers of the Town of Vail on its behalf directed toward the respective projects for which the subject General Obligation Bonds, Series December 1, 1975 are to be offered for-public sale be and the same hereby is, ratified, approved and confirmed. Section .8. The Bonds shall be authorized and issued and the contract of the Town of Vail creating an indebtedness of the Town to pay the principal of and interest on said Bonds shall become effective only pursuant to a duly adopted ordinance of the Town Council of the Town of Vail. Section 9. A11 by-laws, orders and resolutions, or parts thereof, in conflict with this resolution, are hereby repealed. This repealer shall not be construed to revive any by-Iaw, order or resolution, or part thereof, heretofore repealed. Section 10. If any section, paragraph, clause or pro- vision of this resolution shall for any reason be held to be invalid or unenforceable, such invalidity or unenforcea- bility shall not affect any of the remaining sections, para- graphs, clauses or provisions of this resolution. Section 11. In view of the factors stated in the last preamble of this resolution, the Town Council finds that this resolution is necessary for the immediate preservation 15- i ~ ~~ and protection of the public pacoperty, welfare, health and public safety, and determines that this resolution shall take effect immediately upon its passage. INTRODUCED, READ, APPROVED, PASSED, AND ADOPTED this 21st day o£ October, 1975. 1 SEAL) f Attest: Town Clerk / Town of Vail, C rado TOS~Ti~T OF VAXL 7 '~ By L.~_ Pzayor ' 1~- ii Councilman Kathleen Klux 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 Thomas Steinberg John Donovan Joseph Langmaid Josef Staufer Kathleen Klug Ctt~sc~xx~$~~ Those voting "No": None x lF1 members of the Council present having voted in favor of 'the passage and adoption of the Resolution, the presiding officer thereupon declared the Resolution duly passed and adopted. Thereupon, after consideration of other busin ss to come before the Council, the meeting s djo e . M o zL,. _ . -~. of Vail, Colorado S E A L) ATTEST: A .BLJI~~ Torn Cleric Town of Vai / olora o 17- i ~ STATE OF COLORADO ) COUNTY OF EAGLE } ss. TOWN OF VAIL } a i I, ROSALIE JEFFREY, the Town Clerk of the Town of Vail, Eagle County, Colorado, do hereby certify: That the attached copy of Resolution No. 12 authorizing Notice of Bond Sale for its General Obligation Bonds, Series December 1, 1975, is a true and correct copy of said Resolution as passed and adopted by the Town Council at a Regular A4eeting thereof held at the Town Municipal Building, the regular meeting place of the Town Council in the Town, on Tuesday, the 21st day of October, 1975; that a true copy of said Resolution has been duly executed and authenticated by the signatures of the Mayor of the Town of Vail and myself, as Town Clerk of said Town, sealed with the seal of the Town, and recorded in the official records of the Town. I further certify that the foregoing pages constitute a true and correct copy of the record of the proceedings of the Town Council at its said regular meeting of October 21. 1975, insofar as said proceedings relate to said Resolution; that said proceedings were duly had and taken; that said meeting was duly held; and that the persons were present at said meeting as therein shown. IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the Town of Vail, Colorado this 21st day of October 1975. Tow~i Clerk Town of Vail, o ado S E A L 1 18~