HomeMy WebLinkAboutResolution 90-368 11/05/1990;.
Res~lutl®~ N®. 90-368 N.C.S.
of the City of Petaluma, California
RESOI.U'I'ION APPROVING OFFER TO PURCHASE FOR
ZONE IV WATER SYS'I'EIVI IMPROVEIVIEN'I'S
1 The City Council of the City of Petaluma resolves:
2 This City Council hereby approves that certain offer of Bank of
3 America National Trust and Savings Association, dated October 31, 1990,
4 to purchase all of the Certificates of Participation as provided for in the
5 master document for the Zone IV Water System Improvements. A copy of
6 the offer is attached to this resolution and by reference incorporated in it.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced. and adopted by the Approved as to
form
Council of the City of Petaluma at a (Regular) (Al~jxi~ k(~p~~Lr,+~X
on the ..-..- 5th..-......... da~Yof .......................................Nmuemb.e.~ 19-.- 9 0 by the,~~...~
following vote:
City Attorney
AYES
Balshaw, Sobel, Davis, Woolsey., Tencer, Uice Mayor Cavanagh,
Mayor Hilligoss _
NQES:
0
ABSENT:
ATTEST : ... .......................•----•----.-.. -. -.- L~..~ ... ......_.-.. t..~
City Clerk Mayor
Council File--...-...-._.-..-°- ..............
en io-as Res. No.....9.0.-.3.G.8........ N.C.S.
~~~~" O~ AI'lrl~@'9C~
October 31 , 1990
. _ PROPOSAL FOR" PURCHASE OF BONDS
Ms. Pat Bernard
City Clerk of the. City of Petaluma
Of,fi ce" of the City' Fi Hance Di rector
11 ;Epgl''sh~ Scree
Petal`uma.; California
Dear 'Madam:
Ln accordance with the Off: ci~al ;Notice Inviting Bids for .the purchase of
$6,600;:000:. par value: bonds of the City of Fetal uma:, Certi fi sates of
Partici.pati~on; dated. November 1', '1''990 of the denomination of .$5;000 each,
..
interest. ~payab1e May 1 , .`1~99T and semi.-annual ly therea;fter on May 1 and
'November 1 in each year; we_bid as~ follows:
Maturity
November 1; 1993
November 1 1994
November 1 , 199;5
..November 1; 1:.9:96
November 1 ; 1997
November l; 1.998
November 1; 1999
November 1, 2000
November- 1 2001
. November 1~ 2002
Interest 'Rate
'7 ~ z~ v `
Maturity
November 1, 2003
November l.; 2004'
November ~l"; 20,05"
November 1 ; 2006
November 1 ; 200.7
`November 1 ; 20'08
November 1 ;, 20:09
November 1; 2Q10
November 1 ,; 20;11
November l; 2012
November 1 :2013
Interest Rate
7. ~)C.~ ~
-~. ~,o ~
7- fe ~.
j,io %.
~', iy ~.
1:.~~ %
~~; «, ~
7 /O %.
.~, ~~ ~ ~
h'. cad' ~
and we w l'l pay ~" .6~ "~ U.~~ 7 ~ b. -3[> plus accrued i~nteres~t, to date of
del Very. ~ -
Banl<bf America National Trust and Savings Association
• ~
' - Enclosed is our Cashier's check in .the: amount. of $25,,0.00..00. ° In the event you.
- are' unable to award the ~b:ond`s to us or de fiver the~'bonds' i:n° accordance with
the, terms of the bi'd~; ;our check is 'to be returned to Bank of Ameraca NT' & SA;
.-
Secur"i ti.es. Set,tl.ement Department #5740, P: 0: Box 37003':;. San Franci sco~,.
California 94137. -~
Respectfully submitted,
_ - BANK OF AMERICA NT & SA
AND A~SSO,C`IATES
Gross Interest: $ 7~ .l3 ~--T-~~~'C', ~ v BY: BANK OF :AMERICA NT &' SA
Di scount: $ ~ 1 ~ ~ i ,Z 41,r.:7~ ,
Net Interest: $ 7~ Z'7a~_~31-'70!
Net Interest Rate; 'J-, O ~.
~'
. By
CITY Q=F PETALUIVIA
BIDS FOR ZONE IV WATER SYSTEM IMPROVEMENTS
CERTIFICATES' OF PARTLCIPAT'ION`
Net
Lnterest Underw-river's Discount
Cost'(NI`C)
Underwriter Rate Percentage Amount
Bank of America 7.048'89% 1.99% $131;24-1.70
Dean Whitte'r Reynolds, Ine. 7.1.4171% 2..00% $132;000..00
Lehman Brothers, Inc. 7.17569% 2.00% $132,0.00:00
S.mithB!arney 7.20811% 2.00% $13'2;000..00
Rausch'er Pierce Refs<nes 7.21775% ..2...00..% $13'2,000.00
Mark Pressman Asso,cate.s 7.36703'% 1.99% $131,340.00
Financial Advisor estimate: was 7..10% to 7.15% with a rating and 8.13'% without a
rating.
CPF INCORPORATED
Post. Office Box 751322
Petaluma, California
94975-1322
Telephone
(707)795-6994
PUBLIC
FINANCE
October 31, 1991
Mr. David W. Spilman
Finance Director
City of Petaluma
11 English Street
Petaluma, California 94952
Dear Mr. Spilman:
The City received six bids for purchase of the $6,6f6(6,f69~0 par value Zone IV
Water System Improvements COP's offered this morning.
Bids received were as follows:
Bidder
Bank of America
Dean Whitter Reynolds Inc
Lehman Brothers, Inc.
SmithBarney
Rauscher Pierce Refsnes
Mark Pressman Associates
PJet Interest Rate
7.~4889161~
7.1417~J868
7.17596461
7.2f6811197
7.2177585
7.3673345
As you are aware, due to uncertainties in the market as a result of the
situation in Iraq and the talk of a possible recession by some economists, we
estimated the interest rate on this issue, for planning purposes, at 7.75.
Because of these conditions we recommended to you that the City apply for a
Moody's Investors Service rating on this issue. We were notified by Moody's on
Monday, October 29, that they had rated the issue Con. "A".
It is the general opinion of the investment banking industry that a security
issue with an "A" rating will generally sell at a rate about 1~(6 basis points
less than the same issue not rated.
The City sold the unrated North McDowell assessment issue last August at a net
interest rate of 7.7f6%. Based on market condition changes since then that issue
,'
Mr. David Spilman
= October 31 , 1996
Poge 2
would probably hiave.sold at rate of approximately 8,1.3 today. This indicates.
that a bid base d_ on a net interest rate of between 7.1~~ to 7.15% for the COP's
woul-d: hove been very competitive.
It is our'opinon th"at the inteFeSt.ra:te of 7.05 b:id b,y Bank of America is
excellent and we recommend that this offer be. accepted by the Gity of Reta'luma.
A.copy of our analysis of each bid received is attached.
Should you have an,y questions please do not hesitate to contact me.
Very truly yours„
'Donald M. Van Dyke
Bresdent
cc: Robert Brunsell