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HomeMy WebLinkAbout997 - AUTHORIZING the official notice of bond sale for Open-space Acquisition Bonds, Series 2006, inRESOLUTION NO. 997 SERIES 2006 A RESOLUTION CONCERNING THE PROPOSED CITY OF BOULDER, COLORADO OPEN SPACE ACQUISITION BONDS, SERIES 2006, IN THE PRINCIPAL AMOUNT OF $20,115,000 AUTHORIZING THE OFFICIAL NOTICE OF BOND SALE WITH RESPECT TO SAID SERIES 2006 BONDS; PRESCRIBING CERTAIN DETAILS CONCERNING SAID PROPOSED SALE AND SAID SERIES 2006 BONDS; APPROVING THE FORM OF A PRELIMINARY OFFICIAL STATEMENT; AND PROVIDING THE EFFECTNE DATE OF THIS RESOLUTION. WHEREAS, the City of Boulder, in the County of Boulder 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 home rule charter of the City (the "Charter"); and WHEREAS, Section 97 of the City's Charter presently authorizes the City to issue bonds for the acquisition of open space real property or interests therein payable from and pledging that portion of the proceeds of the City's sales and use tax earmarked and committed for such purpose, without an election, so ]ong as the projected average annual debt service coverage shall be at least 135:1; provided further, however, that refunding bonds may be issued without approval by vote of the qualified electors of the City; and WHEREAS, the Council deems it advisable and necessary to issue bonds of the City in an aggregate principal amount of $20,115,000, designated Open Space Acquisirion Bonds, Series 2006 (the "Series 2006 Bonds"), to provide funds far the acquisition of open space real property or interests therein, including all necessary incidental and appurtenant costs in connection therewith, and for paying issuance expenses with respect to the Series 2006 Bonds. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BOULDER THAT: Section 1. The Series 2006 Bonds shall be, and the same hereby are ordered to be, publicly sold; and the Council shall cause sealed bids to be received and to be opened publicly for the purchase of the Series 2006 Bonds on May 16, 2006 or on such other date as shall be determined by tbe City Manager of the Ciry (the "City Manager"). Upon making such a public sale date determination, the City Manager shall notify the Director of Finance and Record of the City (the "Director of Finance and Record") as to the date, hour and place that sealed bids shall be received and opened. The City shall indicate in the notice hereinafter described the date, the hour and the place that sealed bids shall be received and opened. Section 2. The Mayor of the City (the "Mayor") and the Director of Finance and Record are hereby authorized and directed to provide for the publication of the Official Notice of Bond Sale in the (Boulder) Daily Camera at such 6mes as they deem adequate to give reasonable notice of the proposed sale, but no ]ess than once after the date hereof and at least five days prior to the sale date hereinabove designated. The Official Notice of Bond Sale shall be in substantially the following form, with such changes therein, including but not limited to changes in dates, principa] amounts and 48153617-0240.3 maturities and completions thereto, as the Director of Finance and Record, ex-officio City Clerk shall direct and shall deem to be in the best interest and to the best advantage of the City, the execution of such notice by the Mayor and the Director of Finance and Record to indicate conclusively the approval of any and all such changes: (Form of Official Notice of Bond Sale) OFFICIAL NOTICE OF BOND SALE AND PRELIMINARY OFFICIAL STATEMENT DATED MAY 4, 2006 $20,115,000' CITY OF BOULDER, COLORADO OPEN SPACE ACQUISITION BONDS SERIES 2006 Electronic bids will be received for the purchase of the City of Boulder, Colorado Open Space Acquisition Bonds, Series 2006 (the "Series 2006 Bonds"), more particularly described herein. As more fully described in the Preliminary Official Statement, dated May 4, 2006, the City of Boulder, Colorado (the "City"), is causing the Series 2006 Bonds to be offered and issued pursuant to the Bond Ordinance of the City to be adopted on May 16, 2006 (the "Ordinance"). Bids for the purchase of the Series 2006 Bonds will be either sealed, electronic or by facsimile (at the option of the bidder) as further provided herein. If submitted electronically, bids must be submitted through the BIDCOMP/PARITY electronic bidding system. The date and time for submitting bids will be as follows: Bid Date: Tuesday, May 16, 2006 Bid Time: Between 11:30 a.m. and 12:00 p.m. New York City, New York Time (Between 9:30 a.m. and 10:00 a.m. Denver, Colorado Time) Submit Bid to: BIDCOMP/PARITY electronic bidding system or to the City's Fiuancial Advisor as set forth iu "TERMS OF SALE- Submission of Bids" Delivery Date: Tuesday, June 20, 2006 Information relating to this auction maybe obtained from the City's Financial Advisor, Piper Jaffray & Co. at 303-820-5700 (P. Jonathan Heroux or Michael Lund) or from PARITY at 212-849-5021 (Eric Washington). PIPER JAFFRAY & CO. FINANCIAL ADVISOR Preliminary, subject to change. 4815-3617-0240.3 2 OFFICIAL NOTICE OF BOND SALE $20,115,000" CITY OF BOULDER, COLORADO OPEN SPACE ACQUISITION BONDS SERIES 2006 PUBLIC NOTICE IS HEREBY GPJEN that electronic bids will be received for the purchase of the City of Boulder, Colorado Open Space Acquisition Bonds, Series 2006 (the "Series 2006 Bonds"), more particularly described below. As more fully described in the Preliminary Official Statement, dated May 4, 2006 (the "Preliminary Official Statement"), the City of Boulder, Colorado (the "City"), is causing the Series 2006 Bonds to be offered and issued pursuant to the Bond Ordinance of the City to be adopted on May 16, 2006 (the "Ordinance"). Bids for the purchase of the Series 2006 Bonds will be either sealed, electronic or by facsimile (at the option of the bidder) as further provided herein. If submitted electronically, bids must be submitted through the BIDCOMP/PARITY electronic bidding system ("PARITY"). The date and time for submitting bids will be as follows: Bid Date: Tuesday, May 16, 2006 Bid Time: Between 11:30 a.m. and 12:00 p.m. New York City, New York Time (Between 9:30 a.m. and 10:00 a.m. Denver, Colorado Time) Submit Bid to: BIDCOMP/PARITY electronic bidding system or to the City's Financial Advisor as set forth in "TERMS OF SALE-Submission of Bids" Delivery Date: Tuesday, June 20, 2006 Information relating to this auction maybe obtained from the City's Financial Advisor, Piper Jaffray & Co. at 303-820-5700 (P. Jonathan Heroux or Michael Lund) or from PARITY at 212-849-5021 (Eric Washington). To bid electronically, bidders must have both (1) a subscription to BIDCOMP and (2) requested and received admission to the bidding of the Series 2006 Bonds, as described under "TERMS OF SALE-Submission of Bids" below. The use of PARITY shall be at the bidder's risk and expense, and neither the City, the Financial Advisor, Kutak Rock LLP ("Bond Counsel") nor U.S. Bank National Association (the "Paying Agent") shall have any liability with respect thereto. Neither the City, the Paying Agent, the Financial Advisor, nor Bond Counsel shall be responsible for, and each bidder expressly assumes the risk of, any incomplete, inaccurate, or untimely bid submitted by Internet transmission by such bidder, including, without limitation, by reason of garbled transmissions, mechanical failure, engaged telephone or telecommunications lines, or any other cause arising from delivery by Internet transmission. Additionally, the PARITY time stamp will govern the receipt of all electronic bids. The official bid clock does not automatically refresh. Bidders must refresh the auction page periodically to monitor the progression of the bid clock and to ensure that their bid will be submitted prior to Preliminary; subject to change. 4815-3617A240.3 the termination of the auction. All bids will be deemed to incorporate the provisions of this Official Notice of Bond Sale. This Official Notice of Bond Sale, and the information set forth herein, are not to be treated as a complete disclosure of all relevant information with respect to the Series 2006 Bonds. The information set forth herein is subject, in all respects, to a more complete description of the Series 2006 Bonds and the security therefor set forth in the Preliminary Official Statement. BOND DETAILS Terms. The "City of Boulder, Colorado Open Space Acquisition Bonds, Series 2006" will be issued in the aggregate principal amount set forth in the caption of this Official Notice of Bond Sale, and will be dated the date of delivery. Interest on the Series 2006 Bonds will be payable on each February 15 and August 15, commencing on February 15, 2007. The Series 2006 Bonds will mature on August 15 in each of the designated amounts and years as follows: Maturity Schedule* Maturity Date Maturity Date (August 15) Principal Amount (August 15) Principal Amount 2007 $1,210,000.00 2014 $1,590,000.00 2008 1,255,000.00 2015 1,655,000.00 2009 1,310,000.00 2016 1,720,000.00 2010 1,360,000.00 2017 1,790,000.00 2011 1,415,000.00 2018 1,865,000.00 2012 1,470,000.00 2019 1,945,000.00 2013 1,530,000.00 * Preliminary; subject to change. The Series 2006 Bonds will be issued in registered form, in denominations of $5,000 or integral multiples thereof. The Series 2006 Bonds will be issued in book-entry form utilizing the services of The Depository Trust Company, New York, New York ("DTC") as securities depository. Adjustment of Aggregate Principal Amount and of Maturities After Determination of Best Bid. The aggregate principal amount and the principal amount of each maturity of the Series 2006 Bonds described above are subject to adjustment by the City, after the determination of the best bid as described under "TERMS OF SALE-Basis of Award," below. Changes to be made will be communicated to the successful bidder by the time of award of the Series 2006 Bonds to the successful bidder, and will not reduce or increase the aggregate principal amount of the Series 2006 Bonds or the amount of the Series 2006 Bonds maturing in any year by more than 10% from the amounts shown in the maturity schedule set forth above. The successful bidder may not withdraw its bid as a result of any changes made within these limits. 4815-3617-0240.3 4 By submitting its bid, each bidder agrees to purchase the Series 2006 Bonds in such adjusted principal amounts and to modify the purchase price for the Series 2006 Bonds to reflect such adjusted principal amounts. issue. Interest Rates and Limitations. Only one interest rate may be stated for any maturity of the Interest from the date of delivery will be payable on February 15, 2007, and semiannually thereafter on February 15 and August 15 in each year, as calculated based on a 360-day year of twelve 30-day months. It is permissible to bid different or "split" interest rates for the 2006 Bonds; provided, however, that only one interest rate shall be specified for any one maturity of the Series 2006 Bonds. Each interest rate specified must be stated in a multiple of 1/8 or 1/20 of 1 percent per annum. The maximum differential between the lowest and highest interest rates permitted for the issue is three percent (3%) per annum (i.e., the maximum rate of interest accruing on any Series 2006 Bond prior to its maturity may not exceed the lowest rate of interest accruing on any other Series 2006 Bond prior to its maturity by more than three percent (3%) per annum). A zero rate is not permitted. No supplemental or "B" interest shall be allowed. No Sale Belaw Par or Discount or Commission. There is no limit on the amount of premium that may be bid. The Series 2006 Bonds shall not be sold by the City at less than their principal amount, nor will any discount or commission be allowed or paid on the sale of the Series 2006 Bonds. Security. The Series 2006 Bonds will be payable from, and will constitute a first and prior (but not exclusive) lien on all Net Pledged Revenues (hereinafter defined) and moneys on deposit in the Bond Fund established and continued by the Ordinance. Net Pledged Revenues shall mean the revenues derived from the City's levy and collection of a 0.40%, a 0.33% and a 0.15% sales and use tax on the purchase price of tangible personal property or taxable services sold or purchased at retail after deduction of refunds required or permitted by law under the Boulder Revised Code, 1981. As additional security for the payment of the principal of and interest on the Bonds, the City will pledge the full faith and credit of the City. Reference is made to the Preliminary Official Statement for a more complete description of the security for the Series 2006 Bonds. Ratings. The Series 2006 Bonds have been rated " " by Moody's and "_" by S&P. See "RATINGS" in the Preliminary Official Statement. Optional Redemption. The Series 2006 Bonds maturing on or after August I5, 2017 will be callable for redemption at the option of the City on August 15, 2016 and on any date thereafter, in whole or in part, and if in part in such order of maturities as the City shall determine and by lot within a maturity in the manner designated by the hereinafter defined Paying Agent, at a redemption price equal to the principal amount thereof plus accrued interest to the redemption date. 4815-3617-0240.3 TERMS OF SALE Submission of Bids. Bids may be submitted either electronically, by facsimile or by sealed bid. Bids which are not submitted electronically must be submitted on the official bid form which, except for bids submitted by facsimile, should be enclosed in a sealed envelope marked on the outside "Proposal for the Series 2006 Bonds" and addressed to Robert W. Eichem, City Finance Director, c/o Piper Jaffray & Co., 1050 Seventeenth Street, Suite 2100, Denver, Colorado 80202. Bids submitted by facsimile shall be submitted to the fax number of (303) 441-4381, Attention: Robert W. Eichem, but any bid submitted by facsimile must be received at the place designated above for the receipt of bids no later than the time designated herein for the receipt of bids. Parity. Unless submitting a printed official bid form as set forth above, a prospective bidder must electronically submit a bid For the Series 2006 Bonds via PARITY. Bids may be submitted electronically via PARITY in accordance with this Notice of Bond Sale, until 10:00 a.m. local time, but no bid will be received after the time for receiving bids specified above. To the extent any instructions or directions set forth in PARITY conflict with this Notice of Bond Sale, the terms of this Notice of Bond Sale shall control. For further information about PARITY, potential bidders may contact the Financial Advisor at Piper Jaffray & Co., 1050 Seventeenth Street, Suite 2100, Denver, Colorado, Telephone (303) 820-5700 or i-Deal LLC at 1359 Broadway, 2"d Floor, New York, NY 10018 Telephone (212) 849-5021. Bidding Parameters. Bidders are required to submit unconditional bids specifying the rate of interest and premium, if any, at which the bidder will purchase all and not less than all of the Series 2006 Bonds. Information Regarding Bids. Bidders may change and submit bids as many times as they wish during the bidding; provided, however, that each bid submitted subsequent to a bidder's initial bid must result in a lower true interest cost ("TIC") with respect to a bid when compared to the immediately preceding bid of such bidder. During the bidding, no bidder will see any other bidder's bid, but each bidder will be able to see its own ranking (i.e., "Leader," "Cover," "3`d," etc.). Bids Constitute an Irrevocable Offer. Each bid submitted through PARITY shall be deemed an in•evocable offer to purchase the Series 2006 Bonds on the terms provided in this Official Notice of Bond Sale and shall be binding upon the bidder. Basis of Award The Series 2006 Bonds will be sold to the bidder offering to purchase the Series 2006 Bonds at the lowest TIC. The actuarial yield on the Series 2006 Bonds using the TIC method will be computed at that yield which, if used to compute the present value of all payments of principal and interest on the Series 2006 Bonds as of the date of the Series 2006 Bonds, i.e., June 20, 2006, produces an amount equal to the aggregate bid price. Such calculation will be made based upon a 360-day year and asemi-annual interval for compounding. The winning bid will be indicated on PARITY and the auction results, as posted on such website, will be subject to verification by the City and the Financial Advisor. The City and the Financial Advisor will verify the auction results immediately following the close of the bidding period and notice of confirmation by the City and the Financial Advisor of the winning bidder will be made by a posting on PARITY under the "Results" link. 4815-3617-0240.3 6 If two or more bids have the same TIC, the first bid submitted, as determined by reference to the time stamp displayed on PARITY, shall be deemed to be the leading bid. Sale Reservations. The City reserves the right (a) to reject any and all bids for any Series 2006 Bonds, (b) to reoffer any Series 2006 Bonds for public or negotiated sale and (c) to waive any irregularity or informality in any bid. Good Faith Deposit. A good faith deposit in the form of a certified or cashier's check or a financial surety bond issued by an insurance company licensed to issue such surety bond in the State of Colorado made payable to the City of Boulder, Colorado in the amount of $400,000 is required for each bid for the Series 2006 Bonds to be considered. The check or financial surety bond must be submitted to the City or its Financial Advisor prior to the opening of the bids. The financial surety bond must identify each bidder whose good faith deposit is guaranteed by such financial surety bond. If the winning bidder for the Series 2006 Bonds is a bidder utilizing a financial surety bond, then that bidder is required to submit its good faith deposit for the Series 2006 Bonds to the City in the form of a cashier's check (or wire transfer such amount as instructed by the City or its Financial Advisor) not later than 3:00 p.m. (Colorado local time) on the next business day following the bid opening. If such good faith deposit is not received by that time, the financial surety bond may be drawn by the City to satisfy the good faith deposit requirement. No interest on the good faith deposit will accrue to any bidder. The good faith deposit of the winning bidder for the Series 2006 Bonds will be applied to the purchase price of the Series 2006 Bonds. In the event the winning bidder for the Series 2006 Bonds fails to honor its accepted bid, the good faith deposit plus any, interest accrued on the good faith deposit will be retained by the City. Any investment income earned on the good faith deposit will not be credited to the successful bidder on the purchase price of the Series 2006 Bonds, but will be paid to the successful bidder in the event the City is unable to deliver the Series 2006 Bonds as provided under "Manner and Time of Delivery" below. Good faith deposits (which are in the form of checks) with respect to bids other than the winning bid for the Series 2006 Bonds which is accepted will be returned promptly upon the determination of the winning bid. Manner and Time of Delivery. The Series 2006 Bonds will be delivered to DTC for the account of the winning bidder at the expense of the City on June 20, 2006 or such later date as the City and the winning bidder may agree. The winning bidder will not be required to accept delivery of the Series 2006 Bonds if they are not tendered for delivery by the City on June 20, 2006, or such later date as the City and the winning bidder may agree; provided that delivery of any Series 2006 Bonds is conditioned upon the receipt by the City of a certificate as to their issue price. See "- Certification of Issue Price" below. Payment of the purchase price due at delivery must be made in Federal Reserve funds for immediate and unconditional credit to the City. The good faith deposit of the winning bidder will be credited to the purchaser at the time of delivery of the Series 2006 Bonds (without accruing interest). If the winning bidder for the Series 2006 Bonds fails or neglects to complete the purchase of the Series 2006 Bonds within five days after such Series 2006 Bonds are made ready and are tendered for delivery, the amount of its good faith deposit will be forfeited (as liquidated damages for non-compliance with the bid) to the City, except as hereinafter provided. Official Statement. The Preliminary Official Statement, dated May 4, 2006, and the information contained therein have been deemed final by the City as of its date within the meaning of Rule 15c2-12 of the Securities and Exchange Commission ("Rule 15c2-12") with permitted omissions, but is subject to change without notice and to completion or amendment in the Final 4815-3617-0240.3 7 Official Statement in final form (the "Final Official Statement" or the "Official Statement"). The Notice of Bond Sale and the Preliminary Official Statement may be viewed and downloaded from www.meritos.com or a physical copy may be obtained by contacting the City's Financial Advisor. See "-Information" below. The City will make available to the winning bidder, within seven business days after the award of the sale of the Series 2006 Bonds, 150 physical copies of the Final Official Statement, and additional copies may be provided at the winning bidder's expense. The winning bidder must cooperate in providing the information required to complete the Final Official Statement. The City will also provide the Final Official Statement to the winning bidder in electronic form. Additional physical copies of the Final Official Statement maybe provided at the expense of the winning bidder. The winning bidder shall comply with the requirements of Rule 15c2-12 and the rules of the Municipal Securities Rulemaking Board. Continuing Disclosure Undertaking. The City has covenanted to provide, in a timely manner, to the Municipal Securities Rulemaking Board and to each nationally recognized municipal securities information repository (as recognized from time to time by the Securities and Exchange Commission) notice of the occurrence of specified, material events and to provide certain financial information on a monthly basis as more fully set forth in the Preliminary Official Statement. The City is not cun•ently in default on any undertaking for disclosure. State Securities Laws. The City has taken no action to qualify the offer or sale of the Series 2006 Bonds under the securities laws of any state. Should any such qualification be necessary, the City agrees to cooperate with the winning bidder in such matters, provided that the City reserves the right not to consent to service of process outside its boundaries and expenses related to any such qualification shall be the responsibility of the winning bidder. CUSIP Numbers. CUSIP numbers will be issued and printed on the Series 2006 Bonds. Any error or omission in printing such numbers on the Series 2006 Bonds will not constitute cause for the winning bidder to refuse delivery of any Series 2006 Bond. All expenses in relation to obtaining the CUSIP numbers and printing of the CUSIP numbers on the Series 2006 Bonds shall be paid for by the winning bidder. Legal Opinion, Series 2006 Bonds and Transcript. The validity and enforceability of the Series 2006 Bonds will be approved by the City's Bond Counsel: Kutak Rock LLP 1801 California Street, Suite 3100 Denver, Colorado 80202 (303)297-2400 FAX: (303) 292-7799 www.kutakrock.com The purchaser of the Series 2006 Bonds will receive a certified transcript of legal proceedings which will include, among other items: 4815-3617-0240.3 (a) a certificate of the City to the effect that, as of its date, the Preliminary Official Statement was deemed final within the meaning of Rule 15c2-12, except for the omissions permitted under Rule 15c2-12; (b) a certificate executed by officials of the City to the effect that there is no litigation pending or, to their knowledge, threatened affecting the validity of the Series 2006 Bonds as of the date of their delivery; (c) a certificate of the City to the effect that, as of the date of the Official Statement and at all times to and including the date of delivery of the Series 2006 Bonds, the Official Statement did not contain any untrue statement of a material fact or omit any statement of a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and (d) the opinion dated the date of the delivery of the Series 2006 Bonds, of Kutak Rock LLP, Denver, Colorado, Bond Counsel to the City, to the effect that although they have made no independent investigation or verification of the correctness and completeness of the information included in the Official Statement, nothing that came to their attention in rendering legal services in connection with the preparation of the Official Statement causes them to believe that the Official Statement (excepting financial, demographic, economic and statistical information, any forecasts, estimates and assumptions, and any expressions of opinion, as to which they will express no belief), as of its date, contained any untrue statement of a material fact or omitted to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. Certification of Issue Price. The winning bidder will be required to complete, execute, and deliver to the City within 24 hours following the ratification of the award of the Series 2006 Bonds a certification as to issue price and certain other matters, substantially in the form to be furnished by Kutak Rock LLP, Bond Counsel. By submitting its bid, each bidder agrees to complete, execute and deliver such certificate within 24 hours following the ratification of the award of the Series 2006 Bonds if its bid is accepted. It will be the responsibility of the winning bidder to institute such syndicate reporting requirements, to make such investigation, and otherwise to ascertain the facts necessary to enable it to make such certification with reasonable certainty. Any questions concerning such certification should be directed to Kutak Rock LLP, Bond Counsel. Right to Modify or Amend Notice of Bond Sale. The City reserves the right to modify or amend this Official Notice of Bond Sale and the Official Bid Form, prior to the bid date. If any modifications occur, supplemental information with respect to the Series 2006 Bonds will be communicated by posting on the PARITY website not later than 3:00 p.m., Denver, Colorado Time on the day preceding the day on which proposals may be submitted, and bidders shall bid upon the Series 2006 Bonds based upon the terms thereof set forth in this Official Notice of Bond Sale, as so modified by such supplemental information. Postponement of Sale. The City reserves the right to postpone the date and time established for the receipt of bids. Any such postponement will be announced by posting on PARTI'Y prior to commencement of the bidding. If any date and time fixed for the receipt of bids and the sale of the Series 2006 Bonds is postponed, an alternative sale date and time will be announced at least one business day prior to such alternative sale date. On any such alternative sale date and time, any 4815-3617-0240 3 9 bidder may submit bids electronically as described above for the purchase of the Series 2006 Bonds in conformity in all respects with the provision of this Official Notice of Bond Sale, except for the date and time of sale and except for any changes announced by posting on PARITY at the time the sale date and time are announced. Information. Copies (in reasonable quantities) of this Official Notice of Bond Sale, the Preliminary Official Statement and other information concerning the City and the Series 2006 Bonds maybe obtained from: Mr. Robert W. Eichem Director of Finance and Record City of Boulder Municipal Building 1777 Broadway Boulder, Colorado 80302 (719)441-1819 or from the City's Financial Advisor: Mr. P. Jonathan Heroux or Mr. Michael Lund Piper Jaffray & Co. 1050 Seventeenth Street Suite 2100 Denver, Colorado 80202 (303)820-5700 By order of the City Council of the City of Boulder, Colorado, dated 2nd day of May, 2006. By /s/ Mark Ruzzin Mayor, City of Boulder, Colorado By /s/Robert W. Eichem Director of Finance and Record, City of Boulder, Colorado (End of Official Notice of Bond Sale) Section 3. Bids for the Series 2006 Bonds shall be opened at the time and place and in the manner provided in the Official Notice of Bond Sale as herein prescribed. Section 4. The Council hereby approves the distribution and use in connection with the offering of the Series 2006 Bonds of the Preliminary Official Statement in substantially the form presented to the Council at this meeting, with such changes therein, if any, as are approved by the Director of Finance and Record or the City Attorney. 4815-3617A240.3 10 Section 5. The Official Bid Form in substantially the following with such changes thereto as the Mayor and the Director of Finance consistent with changes to the Official Notice of Sale. OFFICIAL BID FORM $20,115,000 City Of Boulder, Colorado Open Space Acquisition Bonds Series 2006 Mr. Robert W. Eichem Director of Finance and Record City of Boulder c/o Piper Jaffray & Co. 1050 Seventeenth Street, Suite 2100 Denver, CO 80202 Dear Mr. Eichem: form is hereby approved, and Record shall approve For $20,115,000 of your legally issued City of Boulder, Colorado Open Space Acquisition Bonds, Series 2006 (the "Series 2006 Bonds"), described in the Official Notice of Bond Sale dated May 2, 2006, included with the Preliminary Official Statement of the City of Boulder, Colorado (the "City") pertaining to the Series 2006 Bonds, which Notice is by reference made a part hereof, we will pay you par plus a premium of $ for said Series 2006 Bonds to bear interest and mature as follows: Preliminary; subject to change. 4815-3617-0240.3 1 ] Maturity (August 15) Amounts 2007 $1,210,000 .00 2008 1,255,000 .00 2009 1,310,000 .00 2010 1,360,000 .00 2011 1,415,000 .00 2012 1,470,000 .00 2013 1,530,000 .00 2014 1,590,000 .00 2015 1,655,000 .00 2016 1,720,000 .00 2017 1,790,000 .00 2018 1,865,000 .00 2019 1,945,000 .00 Interest Rate We herewith hand you a cashier's check or certified check or a financial surety bond issued by an insurance company licensed to issue such surety bond in the State of Colorado made payable to the City of Boulder, Colorado in the amount of $400,000 as evidence of our good faith in complying with the terms and conditions of this proposal, which is to apply as part payment for the Series 2006 Bonds, and to be forfeited as fully liquidated damages should we fail or refuse to take up the Series 2006 Bonds as provided above and in the Official Notice of Sale for the Series 2006 Bonds. Said deposit is to be returned to us if this proposal is not accepted or if Kutak Rock LLP should decline to issue the opinions substantially as described in the Official Notice of Sale for the Series 2006 Bonds. This offer is subject in all respects to the Official Notice of Sale for the Series 2006 Bonds. Total premium: For information only; not a part of this bid. True interest cost: We understand that Piper Jaffray & Co. is acting as financial advisor to the City in connection with the issuance of the Series 2006 Bonds and that, pursuant to its contract with the City, it is required to submit a bid to purchase the Series 2006 Bonds. 4815-3617-0240 3 12 Dated this 16`s day of May, 2006. The foregoing proposal accepted by the City Council as the governing body of the City this 16`h day of May, 2006. Respectfully submitted, By (Firm Name) By Name Title By r' I Mayor (End of Official Bid Form) Section 6. The officers of the City and its financial advisor are hereby authorized and directed to take all other action necessary or appropriate to effectuate the provisions of this resolution. All action heretofore taken (not inconsistent with this resolution) is hereby ratified, approved and confirmed. Section 7. 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 provisions of this resolution. Section 8. This resolution shall take effect immediately upon its introduction and passage. [Remainder of this Page Intentionally Left Blank] 4815-3617-0240.3 13 INTRODUCED, READ, PASSED AND ADOPTED this 2"d day of May, 2006. [SEAL] Attest: ~ - Mayor By Lf.~ii~ L/ ~~/~ Director of Finance and Record 4815-3617-0240 3 1 ~