HomeMy WebLinkAbout889 - CONSIDERATION of a resolution concerning the proposed City of Boulder water & sewer revenue boRESOLUTION NO. RRq
A RESOLUTION CONCERNING THE PROPOSED CITY OF BOULDER,
COLORADO (ACTING THROUGH ITS WATER UTILITY ENTERPRISE
AND PI'S WASTEWATER UTILITY ENTERPRISE), WATER AND SEWER
REVENUE BONDS, SERIES 2001, IN A PRINCIPAL AMOUNT OF UP TO
$32,000,000; AUTHORIZING THE OFFICIAL NOTICE OF BOND SALE
WITH RESPECT TO SAID BONDS; PRESCRIBING CERTAIN DETAILS
CONCERNING SAID PROPOS~D SALE AND SAID BONDS; APPROVING
THE FORM OF A PRELIMINARY OFFICIAL STATEMENT; AND
PROVIDING THE EFFECTIVE DATE OF THTS RESOLUTION.
WHEREAS, the Ciry of Boulder, Colorado, 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 ArCicle XX of the Constitution of the State of Colorado (the "Constitutiod') and the
home rule charter of the City (the "Charter"); and
WHEREAS, Article X, Section 20 of the Constitution ("Amendment One") requires that
bonded debt not be issued without prior voter approval unless the issuer is an "Enterprise" as
defined in Amendment One; and
WHEREAS, Ordinance No. 5601, introduced, read, passed and adopted on the 9th day of
November 1993, added new sections 11-1-55 to -61 to the Boulder Revised Code, 1981 (the
"City Code") providing for the establishment oP Che City's water system as a"water activity
enterprise" within Che meaning of Part 1 of Article 45.1 of Title 37, Colorado Revised Statutes,
as amended, and naming the City's water system the "Water Utility Enterprise"; and
WHEREAS, Ordinance No. 5601 also added new sections 11-2-36 to -42 to the City
Code, providing for the establishment of the City's sanitary sewer system as a"water activity
enterprise" within the meaning of Part 1 of Article 45.1 of Title 37, Colorado Revised Statutes,
as amended, and naming the City's sanitary sewer system the "Wastewater Utility Enterprise";
and
WHEREAS, pursuant to the Charter and the City Code, the City Council of the Ciry (the
"Council") is the governing body of the Water UtiliCy Enterprise and the Wastewater Utility
Enterprise and the Council need not announce or acknowledge that actions taken by the Council
are taken by Yhe governing body of Yhe Water Utility Enterprise and/or the Wastewater Utility
Enterprise; and
WHEREAS, pursuant to the Charter and the City Code, the Water Utility Enterprise and
the Wastewater Utiliry Enterprise may issue revenue bonds payable from revenues derived from
the operation of such Enterprise without voter approval so long as such Enterprise qualifies as an
"Enterprise" within the meaning of Amendment One in the City's fiscal year of the issuance of
such revenue bonds; and
WAEREAS, the WaYer Utility Enterpr'tse and the Wastewater Utility Enterprise are
"Enterprises" within the meaning of Amendment One; and
WHEREAS, the Council deems it advisable and necessary to issue revenue bonds of the
City in an aggregate principal amount of up to $32,000,000 designated Water and Sewer
Revenue Bonds, Series 2001 (the "Bonds"), to provide funds to (a) reconstruct, install and
replace certain segments of the Lakewood Raw Water Pipeline and make any other additional
improvements to the City's water facilities; (b) to fund a Reserve Fund; and (c) to pay necessary
incidental and appurtenant expenses in connection therewith, including the cost of issuance of
the Bonds.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF BOULDER THAT:
Section 1. The 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 Bonds on November 13, 2001 or such other date as shall be determined by the City Manager
of the City (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 that sealed bids shall be received
and opened.
Section 2. The Mayor of the City (the "Mayor") and the Director of Finance and Record
together are hereby authorized and directed to provide for the publication of the Official Notico
of Bond Sale in the (Boulder) Daily Camera at such times as they deem adequate to give
reasonable notice of the proposed sale, but no less than once after the date hereof and at least five
days prior to the public sale date determined by the City Manager. 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, principal amounts and maturities and completions thereto, as shall be
deemed 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
Council's approval of any and all such changes for purposes of this Resolution:
[Form of Official Notice of Bond Sale]
Official Notice of Bond Sale
$31,625,000
City of Boulder, Colorado
(Acting through its Water Utility Enterprise
and its Wastewater Utility Bnterprise)
Water and Sewer Revenue Bonds
Series 2001
(Payable solely from certain net income of the municipal water system and municipal
sanitary sewer system.)
PUBLIC NOTICE IS HEREBY GIVEN that the City Council of the City of Boulder (the
"Council" and "City," respectively), in the County of Boulder and State of Colorado, will, on
Tuesday, the 13th day of November, 2001, at the hour of 10:00 a.m., local time, in the Municipal
Building, 1777 Broadway, Boulder, Colorado, receive sealed bids and publicly open the same for
the purchase of the bonds of the City, particularly described below:
BOND PROVISIONS
Issue
The City (acting through its Water Utility Enterprise and its Wastewater Utility
Enterprise) will issue its "Water and Sewer Revenue Bonds, Series 2001," in the principal
amount of $31,625,000 (the "Bonds") pursuant to an ordinance to be adopted by the City (the
"Ordinance").
Form, Dates and Maturities
The Bonds subject to this Official Notice of Bond Sale will be issued as fully registered
bonds 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 November 1, 2001.
Interest will be payable on each June 1 and December 1, commencing June 1, 2002. The Bonds
will mature on December 1 in each of the designated amounts and years as follows:
Date Maturing Amounts
(December 1) Maturing*
2002 $825,000.00
2003 1,050,000.00
2004 1,100,000.00
2005 1,150,000.00
2006 1,205,000.00
2007 1,260,000.00
2008 1,320,000.00
2009 1,375,000.00
2010 1,430,000.00
2011 1,495,000.00
2012 1,560,000.00
2013 1,630,000.00
2014 1,705,000.00
2015 1,785,000.00
2016 1,875,000.00
2017 1,965,000.00
2018 2,060,000.00
2019 2,165,000.00
2020 2,275,000.00
2021 2,395,000.00
*Estimate; subject to change;
see "TERMS OF SALE-Adjustment of Principal Amount."
Book-Entry
The City, after consultation with its financial advisor, will make arrangements for
custodial deposit of the Bonds with DTC, New York, New York. The Bonds will therefore be
registered in the name of Cede & Co., as nominee of DTC, 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 DTC in a denomination of $5,000 or any integral multiple
thereof. After the initial deposit of the Bonds with DTC, they may not be removed from such
custodial deposit, transferred or exchanged except as provided in the 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) Each rate stated must be in a multiple of one-eighth (1/8) or one-twentieth (1/20)
of one percent (1%) per annum.
(c) The maximum interest rate named for any Bond shall not exceed the minimum
interest rate named for any other Bond by more than 3.50% per annum.
(d) A zero 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.
(f) Bids may not provide for supplemental or "B" coupons or interest rates.
Purpose of Issue
The Bonds are authorized to be issued for the purposes of (a) reconstructing, installing
and replacing certain segments of the Lakewood Raw Water Pipeline and making any other
additional improvements to the City's water facilities; (b) funding a Reserve Fund; and
(c) meeting necessary incidental and appurtenant costs and expenses in connection with these
purposes, including, without limitation, the costs of issuance of the Bonds.
Redemption
Optioual Redemption. The Bonds maturing on and after December 1, 2012 will be
callable for redemption at the option of the City, 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 on December 1, 2011, and
on any date thereafter, at a redemption price equal to the par amount thereof plus accrued interest
to the redemption date.
Term Bonds; Mandatory Sinking Fund Redemption. A bidder may request that Bonds
maturing on and after December 1, 2012 be included in two term Bonds. Amounts included in a
single term Bond must consist of consecutive maturities of Bonds and must bear the same rate of
interest. Any such term Bond will be subject to mandatory sinking fund redemption in the same
amounts and on the same dates as the Bonds would have matured if they were not included in a
term Bond. Bonds redeemed pursuant to mandatory sinking fund redemption will be redeemed
at a redemption price equal to the par amount of such Bonds plus accrued interest to the
redemption date in the manner as otherwise provided in the Ordinance. Any election to
designate Bonds as being included in a term Bond must be made in the Official Bid Form
available from the City. See "TERMS OF SALE-Bid Proposals."
Tender for the Bonds
If the City provides funds to pay the principal of and interest on the Bonds prior to the
date such Bonds are subject to optional redemption (i.e., December 1, 2011), as described above,
and the City offers to purchase all of the Bonds at a purchase price consented to in writing by the
registered owners of 90% or more in aggregate principal amount of such Bonds then outstanding,
then all other registered owners will be deemed to have tendered their Bonds for purchase at such
price, whether or not actually tendered, and upon deposit of moneys sufficient to purchase all
such Bonds, interest on such Bonds will cease to accrue and the Bonds shall no longer be
deemed outstanding.
Place of Payment
Principal of and premium, if any, on the Bonds will be payable to the registered owner
(Cede & Co.) upon presentation and surrender of the Bonds at the office of U.S. Bank National
Association, at its operations center in St. Paul, Minnesota, as paying agent, or its successor or
assignee (the "Paying Agent"). Interest on the Bonds will be payable by check or draft of the
Paying Agent mailed or forwarded by wire transfer .on the interest payment date to the registered
owner thereof (Cede & Co.) as of the close of business on the Record Date (the 15th day of the
month prior to each interest payment date on the Bonds, whether or not a business day). All
payments of the principal of, premium if any, and interest on the Bonds shall be made in lawful
money of the United States of America.
Security
The Bonds will be payable from, and will constitute a first and prior (but not exclusive)
lien on, the Net Income of the municipal water system and the sanitary sewer system and moneys
on deposit in the Bond Fund and the Reserve Fund established by the Ordinance. Net Income of
the municipal water system and sanitary sewer system means the gross income derived from the
operation and use of the water system and the sanitary sewer system as may be designated after
the deduction of the operation and maintenance expenses as more fully described in the Official
Statement prepared by the City with respect to the Bonds.
Additional Bonds
The Ordinance will permit the issuance of additional bonds of the City, payable from a
lien on the Net Income on a parity. with, or subordinate to, the lien thereof of the Bonds. There
are presently $1,580,000 City of Boulder, Colorado, Water and Sewer Revenue Bonds,
Series 1992, $9,585,000 City of Boulder, Colorado, Water and Sewer Revenue Bonds,
Series 1996, $15,330,000 City of Boulder, Colorado (Acting through its Water Utility Enterprise
and its Wastewater Utility Enterprise), Water and- Sewer Revenue Bonds, Series 1999 and
$23,805,000 City of Boulder, Colorado (Acting through its Water Utility Enterprise and its
Wastewater Utility Enterprise), Water and Sewer Revenue Bonds, Series 2000, outstanding ~
payable from the Net Income on a parity with the Bonds.
Authorization
The Bonds are authorized to be issued by the Constitution of the State of Colorado, the
Charter of the City, the laws of the State of Colorado, the ordinance of the City establishing the
systems as "Enterprises" and the Ordinance.
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 specifying the price at which the bidder will purchase the
Bonds, which price shall be at or above par plus accrued interest. Each bidder must use the
Official Bid Form available from the City. Each bid shall also set forth, for informational
ur oses only, the actuarial yield aMdefinpp under "Basis Of Awards do 80302.ach bid must e
Ca ie I. Fine, Office of Director of Finance and Record,
P p Boulder, Colo
in a sealed envelope addressed to.
City of Boulder, Municipal Building, 1777 Broadway,
Good Faith Deposit
osit") in the form of a certified or cashier'a able to the
p, good faith deposit (the "1~eP Bond") in the amount of $632,000, P f a check is
financial surety bond (the "Financial Surety uired for each bid to be considered.
order of the City of Boulder, Colorado, is req
an each bsde Such a b ndr n t e St to of Colorado, and such bond must
used, it must, accomp Y rior to the opening of the bids. The Financial
insurance company licensed to rs
or its financial advisor P osit is guaranteed by such Financial Surety
be submitted to the City
Surety a Financial Surety Bond, then t at
Bond must identify each bidder whose DeP osit to the City or its financial advisor in
Bond. If the Bonds are awardedred to ubm~t itsrDep g the City or its
purchaser (the "Prrchaser") is req following the award.
the form of a cashier's check (or wire transfer such amount as instructe Y
m. M.S.T. on the next business day be drawn by the City
financial advisor) not later than 3:30 p~
If such Deposit is not received by that time, the Financial Surety Bon may
uirement. No interest on the Deposit will accrue to the Purchaser. e
atisf the Deposit req urchase price of the Bonds or returned to
to s Y lied to the P urchase price of the Bonds. In the
Deposit of the Purchaser willdate up n payment ofthe full p the City.
ted bid, the Deposit will be retained by
the Purchaser on the closing
rom tl returned to each such bidder.
event the Purchaser fails to honor its accep
Deposits of atl bidders other than the Purchaser shall be p P Y
Tax Status ross
Colorado, bond counsel, will opine that, under existing aws,
rs not includible in g
Kutak Rock LLP, Denver, ross income for Colorado
regulations, rulings and judicial decisions, the interest on the Bonds (a) u ose
income for federal income tax purposes and is not includible in g ~ ur oses of
u oses, (b) is not includible in alternative min ~m preferlencec t m for p e P ~
income tax p rp , c rs not a sp
of the Colorado alternative minimum tax and O •'
the alternative minimum tax Pro su h opin onrweildl also state Chatlmterest on the Bonds will be
amended (the' "Code )> however,
included in the adjusted current earnings of certain corporations, and such corporations ar
re uired to include in the calcula on of alternative minimum taxoble income 75°10 of the exees
sted current earnings over its ahQern~uction Ecru ert~ anet
q orations adl
of each such corp a above is subject to continuing
income (determined without regard to this adjustm f deral tax law contained in the Ordinance
operating losses) and that the opinion descri arding clause ( )
compliance by the City with the covenants reg
the Bonds and that failure to comply ~'r h s income xetroactrvedto the dateeof i sue of
authorizing
Bonds to be so included in federal and Colorado g
the Bonds. Bond counsel's opinioneT sin ome tax liability of the sec p ent andothat the extent of
Bonds may otherwise affect the fed on the recipient's particular tax status or other items
these other tax consequences wolra Phe aePvery of the Bonds to the suceean 1 bl~acter as tha
of income or deduction. B, P' ur oses, the
the income received by private owners of obligations of the same typ
Bonds shall be includible in gross income for federal or State of Colorado p P
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 Director of Finance and Record and bond counsel, and
deposited in the United States mails, as first-class mail, postage prepaid.
Sale Reservations
The City reserves the privilege of:
(a) waiving any irregularity or informality in any bid;
(b) rejecting any and all bids for the Bonds; and
(c) reoffering the Bonds for sale in any manner permitted by law.
Adjustment of Principal Amount
Upon acceptance of bids, the Council, after consultation with.its Financial Advisor, shall
determine the amount of the Minimum Bond Reserve (as defineii in the Ordinance) to be
deposited to the Reserve Fund. To the extent more or less Bond proceeds are required to fund
the Reserve Fund, the principal amount of the Bonds shall be adjusted upward or downward as
the City shall in its discretion determine. Such adjustment shall not exceed $20,000 for any one
year and shall not exceed $100,000 in total principal amount.
Basis of Award
The Bonds, subject to such sale reservations, shall be sold to the responsible bidder
making the best bid for the Bonds to the best advantage of the City. The best bid shall be
determined by computing the actuarial yield on the Bonds (i.e., ttsing 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., November 1, 2001) of all payments of principal
and interest Co be made on the Bonds from their date to their respective maturity dates (including
mandatory sinking fund redemption 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. No
adjustment shall be made in such calculation for accrued interest. on the Bonds from their date to
the date of delivery thereof. 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 Council shall determine in its discretion which bid will be accepted.
No Sale Below Par or Discount or Commission
The Bonds shall not be sold by the City at less than their principal amount and accrued
interest thereon to the date of their delivery, nor will any discount or commission be allowed or
paid on the sale of the Bonds; provided that the foregoing provision shall not preclude original
issue discount so long as the total purchase price paid by the Purchaser to the City is at least
equal to the par amount of the Bonds plus accrued interest.
Time of Award
The City shall open the bids at such lima as hereinabove specified. It intends to take
action upon determining the best bid and to award the Bonds or reject al] bids for the Bonds by
action of the Council at a meeting to be held not later than 24 hours after the expiration of the
time for opening bids.
Offering Price and Yields
On the date herein stated for opening bids, the successful bidder shall notify the Director
of Finance and Record 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 are sold; and
(b) the initial offering yield to maturity for each maturity of the Bonds in a
stated percentage for the Council's use in making any necessary arbitrage bond
investment yield calculations for federal income tax purposes. In addition, prior to
delivery of the Bonds the successful bidder will be required to sign and deliver an exhibit
to the no arbitrage certificate of the City with respect to the public offering price and
yield of the Bonds in form and substance required by bond counsel.
Manner and Time of Delivery
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 this 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 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
December 18, 2001.
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 DTC 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.
Legal Opinion, Bonds and Transcript
The legality of the Bond issue will be approved by the firm of Kutak Rock LLP,
717 Seventeenth Street, Suite 2900, Denver, Colorado 80202, whose unqualified approving
opinion, together with the Bonds, a certified transcript of the 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
City. A certified true copy of the approving opinion of bond counsel for the issue will be printed
on each Bond at the City's expense.
Financial Advisor
U.S. Bancorp Piper Jaffrey Inc. is acting as financial advisor to the City in connection
with the issuance of the Bonds. Pursuant to its contract with the City, it is required to submit a
bid to purchase the Bonds.
Rule 15c2.12 Compliance
The City covenants and agrees to enter into a written agreement or contract, constituting
an undertaking to provide ongoing disclosure about the City, for the benefit of the owners of the
Bonds on or before the date of delivery of the Bonds as required by Section (b)(5) of Securities
and. Exchange Commission Rule 15c2-12 (17 CFR § 240.15c2-12) (the "Rule"), which
undertaking shall be a part of the Ordinance and in the form summarized in the Preliminary
Official Statement. The form of the Preliminary Official Statement has been approved by the
Council. The City has not previously failed to supply any annual financial information as
required.
The Preliminary Official Statement which will be delivered pursuant to the sale of the
Bonds is, except for Permitted Omissions (as defined below), final as of its date, within the
meaning of the Rule, and the information therein is accurate and complete except for the
Permitted Omissions. "Permitted Omissions" shall mean the offering prices, interest rates,
selling compensation, delivery date, ratings, any other terms. required by the City to be specified
in the competitive bid, the identify of the underwriters and other terms of the Bonds depending
on such matters, all with respect to the Bonds.
To enable the successful bidder to comply with the Rule, after the award of the Bonds
and within seven business days following receipt by the City of written advice from the
successful bidder of the full name or names of the successful bidder (if the same cannot be
readily ascertained from the Official Bid Form submitted thereby), the offering prices of the
Bonds and the amounC of selling compensation realized, the City will furnish thereto, in
reasonable quantities as requested, copies of a final Official Statement. Failure by the successful
bidder to provide (or delay by the successful bidder in providing) such information will prevent
the City from furnishing such Official Statement as described above, and the City shall not be
responsible or liable in any manner for the accuracy of the information provided by the
successful bidder or failure to furnish such Official Statement as described above which results
from a failure by the successful bidder to provide the aforementioned information within the time
specified. The City will deliver to the successful bidder at closing a certificate stating that to the
best of its knowledge, the information included in the Official Statement does not contain any
untrue statement of a material fact and does not omit to state a material fact necessary to make
the statements made therein, in light of the circumstances under which they were made, not
misleading.
Information
This Official Notice of Bond Sale, and a Preliminary Official Statement relating to the
Bonds, may be obtained from Ms. Cappie I. Fine, Office of the Director of Finance and Record,
City of Boulder, Municipal Building, 1777 Broadway, Boulder, Colorado 80302,
(303) 441-3014, or from Mr. Jonathan Heroux, i7.S. Bancorp Piper Jaffray Inc., 1050
Seventeenth Street, Suite 2100, Denver, Colorado 80265, (303) 820-5808.
By order of the City Council of the City of Boulder, Colorado, dated this 16`h day of
October, 2001.
(CITY SEAL]
[End of Form of Official Notice of Bond Sale]
Section 3. Bids for the Bonds shall be opened at the time, place and 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 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.
Section 5. The Official Bid Form in substantially the following form is hereby approved,
with such changes thereto as the Mayor and the Director of Finance and Record shall approve
consistent with changes to the Official Notice of Bond Sale:
[Form of Official Bid Form]
OFFICIAL BID FORM
$31,625,000
City of Boulder, Colorado
(Acting through its Water Utility Enterprise
and its Wastewater Utility Enterprise)
Water and Sewer Revenue Bonds
Series 2001
Ms. Cappie I. Fine
Office of the Director of
Finance and Record
City of Boulder
Municipal Building
1777 Broadway
Boulder, CO 80306
Dear Ms. Fine:
For $31,625,000 (subject to adjustment as provided in Che Official Notice of Sale) of your
legally issued City of Boulder, Colorado (Acting through its Water Utility Enterprise and its
Wastewater Utility Enterprise), Water and Sewer Revenue Bonds, Series 2001 (the "Bonds"),
described in the Official Notice of Bond Sale dated October 16, 2001, included with the
Preliminary Official Statement of the City of Boulder, Colorado (the "City"} pertaining to the
Bonds, which Notice is by reference made a part hereof, we will pay you par plus a premium of
$ plus accrued interest to date of delivery to us for said Bonds to bear interest and
mature, and be sold to the public at the yields, as follows:
Maturity Interest Principal
(December 1) Rate Amount*
2002 $825,000.00
2003 1,050,000.00
2004 1,100,000.00
2005 1,150,000.00
2006 1,205,000.00
2007 1,260,000.00
2008 1,320,000.00
2009 1,375,000.00
2010 1,430,000.00
2011 1,495,000.00
2012 1,560,000.00
2013 1,630,000.00
2014 1,705,000.00
2015 1,785,000.00
2016 1,875,000.00
2017 1,965,000.00
2018 2,060,000.00
2019 2,165,000.00
2020 2,275,000.00
2021 2,395,000.00
*Principal amount of Bonds may be adjusted upward or downward for
such maturities as the City shall in its discretion, determine in an
aggregate amount not to exceed $20,000 in any year and not to exceed
$100,000 in total, in order to fund the Reserve Fund to an amount
equal to not less than the average annual debt service on the Bonds
and all other Parity Bonds.
Check one of the following (if neither is checked, Bonds shall be all serial Bonds):
All serial Bonds.
Serial Bonds for the years 20_ through 20_, and a term Bond for the years 20_
through 20_. All other years shall be serial Bonds.
Serial Bonds for the years 20_ through 20_, and two term Bonds for the years
20_ through 20_ and for the years 20_ through 2021. All other years shall be serial
Bonds.
Our calculation (which is not a part of this bid) of the actuarial yield from the above,
computed from the date of the Bonds (November 1, 2001) and giving effect to mandatory
sinking fund redemption and assuming semiannual compounding, as set forth above, is:
Actuarial Yield (as defined under "TERMS OF SALE-Basis Of Award" in the Official
Notice of Bond Sale): %.
Prior to our accepting delivery of said Bonds, you agree to furnish a certified transcript of
all legal proceedings requisite to their issuance and delivery, including a signature and
no-litigation certificate in the customary form evidencing the legality of said Bonds and the
security provisions relating thereto in form satisfactory to Kutak Rock LLP, Denver, Colorado,
whose unqualified approving legal opinion in the customary form shall accompany said Bonds at
delivery. You also agree to provide us with a reasonable quantity of final Official Statements
within seven business days from the date this bid is accepted, and we hereby request
of such final Official Statements.
The Bonds are to be delivered to us on or about December 18, 2001.
The cost of typing the Bonds for delivery in book-entry only form at The Depository
Trust Company and the fees of the approving attorneys will be paid by the City.
Unless we have provided for use of a Financial Surety Bond to evidence our good faith
deposit, we herewith hand you a cashier's check or certified check for $632,000 as evidence of
our good faith in complying with the terms and conditions of this proposal which is to apply as
partial payment (without interest thereon) for said Bonds when the legality of same has been
approved, and to be forfeited as fully liquidated damages should we fail or refuse to take up said
Bonds as above provided. Said check is to be returned to us (without interest thereon) if this
proposal is not accepted, or if the above attorneys should decline to approve the legality or
tax-exempt status of the issue and as otherwise described in the Official Notice of Bond Sale. If
in Lieu of said check, we furnished a Financial Surety Bond, we agree to furnish the required
deposit no later than 3:30 p.m. M.S.T. on the day following acceptance of our bid, in accordance
with the Official Notice of Bond Sale. This offer is for immediate acceptance unless otherwise
specified above.
We understand that U.S. Bancorp Piper Jaffray Inc. is acting as financial advisor to the
City in connection with the issuance of the Bonds and that, pursuant to its contract with the City,
it is required to submit a bid to purchase the Bonds.
Dated this 13"' day of November, 2001.
Respectfully submitted,
(Firm Name)
By
Name
Title
Telephone
The foregoing proposal accepted by the City Council as the governing body of the City
this 13`h day of November, 2001.
By
_~
Mayor
[End of Form of Official Bid Form]
Section 6. The Mayor and the Director of Finance and Record and its financial
consultants 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 S. This Resolution shall take effect immediately upon its introduction and
passage.
INTRODUCED, READ, PASSED AND ADOPTED this 16°i day of October, 2001.
~--i
[CITY SEAL] By
Attest:
i r
By
Director of Finance nd Record