1980-12-17 Regular Meeting - Laserfiche WebLink

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. e e Type of Bids and Interest Rates e All bids must be submitted on the "Official Bid Fonu" enclosed herewith Without Change. The Certificates will be sold in one block, all or none, at a price of not less than par and accrued interest. Bidders are requested to specify the rate or rates of interest that the Certificates will bear. However, nor more than six separate rates or five changes in coupon rates will be considered. Coupon rates must be in multiples of 1/8 or 1/20 of 1', The spread between the highest and lowest coupon rates named may not exceed 2\10 rate. AU Certifi- ' cates maturing on the same date must bear interest at one and the same rate. Bids providing for zero or sup- plemental coupons will not be considered. No Bid will be considered If It results In a "net effective Interest rate" In excess of 7 3/11' per annum determined in accordance with Art. 717K-2, V .A. T .C.S.. as ammended. Tax Exempt Status of Certificates . All bids are accepted on the condition that the tax exempt status of the interest on These Certificates is not changed prior to the date on which These Certificates are presented for delivery. Award of Sale For the purpose of awarding the Certificates, the interest cost of each bid will be computed by detenuining, at the coupon rate or rates specified therein, the total dollar amount of all interest on the Certificates from the date of the Certificates to their respective maturities, and deducting therefrom the premium bid, if any. In the event of an error in interest cost calculations, the coupon rates named in the "Official Bid Form" will gov": ern. The City agrees to either award These Certificates to the bidder whose bid on the above computation . produces the lowest interest cost to the City and is in strict accordance with the tenus and conditions of this: "Official Notice of Sale" or reject all bids and readvertise These Certificates for competitive bids. No award will be made to any bidder bidding on terms and conditions not in strict conformity with this "Official Notice of Sale." Good Faith Deposit Each bid must be secured by a Good Faith Deposit in the form of a Bank Certified or Bank Cashier's check in the amount of $16,000 payable to the City of La Porte, Texas. The Good Faith Deposit may accompany the "Official Bid Fonu" or it may be submitted separately; if submitted separately, it shall be made available to the payee prior to the opening of the bids and shall be accompanied by instructions of the bank on which drawn, which authorizes its use as a Good Faith Deposit by the successful bidder who shall be named in such instruc- tions. The check of the successful bidder will be retained by the City to assure performance of the contract on the part of such bidder. In the event the successful bidder should fail or refuse to ta'ke up and pay for the' Certificates in accordance with his bid. then said check will be cashed and accepted by the City of La Porte as full and complete liquidated damages. Otherwise, the Good Faith Check wiD be returned to the successful bidder e upon delivery of and payment for the Certificates, No interest will be paid by the City on the Good Faith Deposit, Printed Certificates and leqal Opinion The City will furnish, without cost to the purchaser, printed Certificates on lithographed borders and a tran- script of certain certified proceedings had incident to the authorization and issuance of the Certificates. The successful bidder will be furnished, without cost. the unqualified approving opinion of the law firm of Baker. Botts, Houston, Texas, to the effect that, based upon an examination of such transcript. the Certificates are valid and legally binding obligations of the City payable (unless paid from other sources) from ad valorem taxes levied upon all taxable property within the City, within the limits prescribed by law, and to the effect that the interest on the Certificates is exempt from present Federal income taxation under existing ststutes, regulations, published rulings and court decisions. Such opinion is expected to be reproduced on the back panel of the Certificates over a certification by the fscsimile signature of the City Secretary. attesting that the opinion was dated as of the date of delivery of and payment for the Certificates and that the copy Is . true and w.. .._1 copy of the original opinion; however, the failure to print such opinion on any Certificate shaD not constitute cause for a fallure or a refusal by the purchaser to accept delivery of and pay for the Certificates. The legal fee to be paid Baker . Botts for services rendered in connection with the issuance and sa1e of the Certificates is calculated on the basis of a percentage of the Certificates actually issued. sold and delivered, and payment of such fee is contingent on the sale and delivery of the Certificates. No lItiqation Certificate The City will furnish the successful bidder a Certificate signed by the Mayor and City Secretary which wiD re- cite, among other thinga. that no litigation of any nature has been tiled or Is now pending to restrain or en- join the issuance or delivery of These Certificates or interest coupons. or which would affect that provision made for their payment or security, or in any manner questioning the proceedings or authority concerning the issuance of These Certificates and interest coupons, and that so far as is known and believed no such litigation is threat- ened. Delivery of Certificates These Certificates will be tendered for delivery to the purchasers at the City National Bank. Austin. Texas. It is anticipsted that the Certificates will be presented for delivery on or before January 21, 1981. If. however, Certificates are presented for delivery in accordance with these terms and conditions on or before February 4. 1981, then the purchaser agrees to accept delivery of and make payment for These Certificates In immediately avallable funds within five (5) business days of notification of the specific date set for delivery. If for any rea- e son the City is unable to make delivery on or before February 4. 1981, then the successful bidder wiD be given five (5) days to extend his offer at the same price and under the same tenus and conditioJUI for an additional thirty (30) days. If the successful bidder does not elect to extend his offer within five (5) days after such n0- tification, then the Good Faith Check wiD be returned and both the City and the successful bidder shall be re- lieved of further obligation. -2-