Resolution No. 89-32 CITY OF TIGARD, OREGON
RESOLUTION NO. 89-32
A RESOLUTION AWARDING THE SALE OF THE CITY'S GENERAL OBLIGATION
ROAD BONDS, SERIES 1989.
WHEREAS, City Resolution No, 89-10 (the "Resolution"{ authorized
the sale of the City's General Obligation Road Bonds, Series 1989
in the aggregate principal amount of $8,500,000 (the "Bonds"} ;
and,
WHEREAS, Section 9 of the Resolution authorized the Mavor and
Finance Director to alter the terms of the Bonds in order to
conform the Bonds to existing market conditions, and the Mayor
and Finance Director determined that the Bonds should be offered
cinder the terms described in. the Official Notice of Bond Sale
(the "Notice") which is attached hereto as Exhibit A; and,
WHEREAS, seven bids were received on behalf of the City at the
offices of Lindsay, Hart, Neil & Weigler at 10:00 AM on April 26,
1989; and,
( WHEREAS, the bid of Security Pacific Bank Oregon complies with
the Notice: and offers the lowest true interest cost to the City.
NOW, THEREFORE, BE IT RESOLVED by the Tigard City Council that:
Section 1. The bid of Security Pacific Bank Oregon is hereby
accepted. The Bonds shall be issued, sold and
delivered to Security Pacific Bank Oregon in
accordance with its bid, the Resolution and the
Notice.
ADOPTED by unanimous vote of the Council, with a quorum in
attendance, this 26th day of April, 1989.
mayor - Y of Tigard
ATTEST:
TTTEST:
Deputy Recorder - City oTigard
RESOLUTION NO. 89-32
Page 1 HWRmts1075
EXHIBIT A
OFFICIAL NOTICE OF BOND SALE
$8,500,000
CITY OF TIGARD
COUNTY OF WASHINGTON
STATE OF OREGON
GENERAL OBLIGATION ROAD BONDS, SERIES 1989
NOTICE IS HEREBY GIVEN that sealed bids will be received
on behalf of the City of Tigard in Washington, County, Oregon (the
"City"), for the purchase of its General Obligation Road Bonds,
Series 1989 (the "Bonds") , until 10:00 o'clock a.m. (Pacific
Time) an Wednesday, April 26, 1989, at the offices of Lindsay,
Hart, Neil & Weigler, Lawyers, Suite 18013 =22 g, W. Columbia
Street, Portland, Oregon 97201-6618, at which time they will be
publicly opened and announced.
The bids shall be considered and acted upon by the City
within four hours.
ISSUE: The issue si:all be in the aggregate principal
amount of EIGHT MILLION FIVE HUNDRED THOUSAND DOLLARS
($8,500+,000), consisting of registered Bonds in denominations of
Five Thousand Dollars ($5,000) or integral multiples thereof, all
dated May 1, 1989.
INTEREST RATE: The maximum interest rate shall not
exceed a true effective cost of ten percent (10%) per annum.
Interest is payable semiannually on January 1 and July 1 of each
year until maturity or prior redemption, commencing January 1,
1990. Bidders must specify the interest rate or rates which the
Bonds hereby offered for sale shall bear. The bids shall comply
with the following conditions: (1) each interest rate specified
in any bid must be a multiple of .001 percent; (2) no Band shall
bear more than one rate of interest; (J) each Bond shall bear
interest from its date to its stated maturity date at the
interest rate specified in the bid; (4) all Bonds maturing at any
one time shall bear the same rate of interec-t; and (5) no rate of
interest may exceed ten percent (10%).
MATURITIES: The Bonds shall mature serially in
numerical order on the 1st day of July of each year as follows:
Page 12 — Exhibit A (Notice of Bond Sale)
Date A-mount Date Amount
1990 $395,000 1995 $ 900,000
1991 $475,000 1996 $1,000,000
1992 $575,000 1997 $1,100,000
1993 $695,000 1998 $1,230,000
1994 $800,000 1999 $1,330,000
REGISTRATION% The Bonds will be issued in fully
registered fort[:, and may be exchanged at the expense of the City
for similar Bonds of different authorized denominations. Bonds
may not be converted to bearer form.
OPTIONAL REDEMPTION: The City reserves the right to
redeem all or any portion of the Bonds maturing after July 1,
1995, in inverse order of maturity and by lot within a maturity
on July 1, 1995, and on any interest pavment date thereafter, at
par plus accrued interest to the date fixed for redemption.
Notice of any call for redemption, unless waived by the
holders of the Bonds to be redeemed, shall be mailed not less
than thirty days and not more than sixty days prior to such call
to the registered owners of the Bonds, and otherwise given as
required by the authorizing Bond resolution and by law; however,
any failure to give notice shall not invalidate the redemption of
the Bonds. All Bonds called for redemption shall cease to bear
interest from the date designated in the notice.
PAYMENT: Principal and interest are payable, either at
maturity or upon earlier redemption, by check or draft through
the principal corporate trust office of the registrar and paying
agent of the City, which is currently United States National Bank
of Oregon, in Portland, Oregon.
PURPOSE: The Bonds are being issued to finance the
rehabilitation and construction of certain roads within the City
and to pray all costs incidental thereto. The Bonds were
authorized at an election held within the City on November 8,
1988.
SECURITY: The Bonds are general obligations of the
City. The City has covenanted to levy an ad valorem tax annually
which, with other available funds, will be sufficient to pay Bond
principal and interest as they come due.
LEGAL OPINION: The approving opinion of Lindsay, Hart,
Neil & Weigler, Lawyers, of Portland, Oregon, will be provided at
no cost to the purchaser, and will be printed on the Bonds at the
expense of the City.
Page 13 - exhibit A (Notice of Bond Sale)
TAX EXEMPT STATUS: In the opinion of bond counsel,
under existing law and conditioned on the City complying with
certain covenants relating to the tax-exempt status of the bonds,
interest on the bonds is excluded from gross income for federal
income tax purposes (except for certain taxes on corporations).
The Bonds are not "private activity bonds" under Section 141 of
the Internal Revenue Code of 1986, as amended (the "Code") .
In the opinion of bond counsel, the interest on the
bonds is exempt from personal income taxation by the State of
Oregon under present state law.
Bond counsel expresses no opinion regarding other
federal or state tax consequences arising with respect to the
bonds.
The City has the legal authority to comply with its
covenants.
BANK PURCHASE: The City has designated the Bonds as
"qualified tax-exempt obligations" pursuant to Section 265(b) ,3)
of the Code.
BEST BID: The Bonds will be awarded to the responsible
bidder whose proposal will result in the lowest true interest
cost to the City. True interest cost will be determined by
doubling the semiannual interest rate necessary to discount the
debt service to May 1, 1989 and the price bid for the Bonds.
Each bidder is requested to supply the total interest cost and
the true interest cost that the City will pay upon the issue if
the bid is accepted. The purchaser must pay accrued interest,
computed on a 360-day basis, from the date of the Bonds to the
date of delivery. The cost of printing the Bonds will be paid by
the City.
CERTIFICATE OF REOFFERING PRICE: The successful bidder
shall provide to Bond Counsel not less than three business days
prior to closing a certificate stating that the successful
bidder: (l) shall offer all bonds in each maturity for sale to
the general public at a price no greater than the certified
reoffering price until at least ten percent of the principal
amount of each maturity is sold at a price less than or equal to
the certified reoffering price; or (2) has purchased the bonds
for its own portfolio without intention to resell the bonds, or
(3) has made a bona fide private placement of the bonds and the
terms of such private placement. Failure to honor this
agreement may result in cancellation of the sale and forfeiture
of the successful bidder's good faith deposit.
DELIVERY: Delivery of the Bonds will be made without.
cost to the successful bidder at such bank in the City of
Portland, Oregon, as the successful bidder shall name. Payment
Page 14 - Exhibit A (Notice of Bond Sale)
for the Bonds must be made in federal funds. Delivery of the
Bonds will be made within thirty days.
FOR-14 OF BID: All bids must be for not less than all the
Bonds hereby offered for sale, and for not less than ninety-eight
and one-half percent (98.58) of the par value thereof and accrued
interest to the date of delivery. Each bid together with
bidder's check as herein specified must be enclosed in a sealed
envelope addressed to the City and designated 'Proposal for
Bonds."
BID CHECK: All bids must be unconditional and
accompanied by a certified or cashier's check on a bank doing
business in the State of Oregon. for ONE HUNDRED SEVENTY THOUSAND
DOLLARS ($170,000) payable to the order of the City to secure the
City from any loss resulting from the failure of the bidder to
comply with the terms of its bid. Checks will be forfeited to
the City as liquidated damages in case the bidder to whom the
Bonds are awarded withdraws its bid or fails to complete its
purchase in accordance with the terms thereof. No interest shall
be allowed on the deposit but the check of the successful bidder
will be retained as part payment of the Bonds or for liquidated
damages as described above. Checks of the unsuccessful bidders
will be returned by the City promptly.
RIGHT OF REJECTION: The City reserves the right to
reject any or all bids, and to waive any irregularities.
OFFICIAL STATEMENT: The City has prepared an official
,statement relatl.ng to the Bonds, a copy of which will be
furnished upon request to its financial advisor, Government
Finance Associates, Inc. , 1300 S.W. Fifth Avenue, Suite 2929,
Portland, Oregon 97201, telephone: 503-222-1405.
CUSIP: CUSIP numbers will be imprinted upon all Bonds
of this issue at the City's expense. Failure to print, or
improperly imprinted numbers will not constitute basis for the
purchaser to refuse to accept delivery.
NO LITIGATION: At the time of payment for the delivery
of said Bonds, the City will furnish the successful bidder a
certificate that there is no litigation pending affecting the
validity of the Bonds.
FURTHER INFORMATION: Additional information regarding
the City and this sale may be obtained from Wayne Lowry, Finance
Director, City of Tigard, 13121 S.W. Hall Boulevard, Tigard,
Oregon 97223, telephone: 503-639-4171.
City of Tigard, Oregon
Page 15 - Exhibit A (Notice of Bond Sale) CWCcwcl463/15