1535 RES AUTHORIZING PUBLICATION OF NOTICE OF BOND SALERESOLUTION NO. 1535
RESOLUTION AUTHORIZING PUBLICATION
OF NOTICE OF BOND SALE
WHEREAS, the City Council of the City of Paris, Paris,
Texas, will receive bids for Waterworks and Sewer System
Revenue Bonds on January 10, 1973; and,
WHEREAS, the charter of this City requires publication
of Notice of Sale for Bonds; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS:
That Notice of Sale in the form attached hereto shall be
published in "The Paris News" on the same day in each of two
succeeding weeks, the first publication to be at least
fourteen days prior to the date set for said sale.
Passed and adopted this 21st day of December, 1972.
ATTEST :
H. C. Greene, City Clerk
ApP V D A FORM :
~
T. K. Haynes, City Attorney
OFFICIAL NOTICL Ur SALE
$6 _`'i~ 000
CITY OF YARtS, TL}CAS
WATERWORKS & SEWER SYSTEM REVENi1E BONDS
SELLING• Wednesday, January 10, 1973, at 2:00 P. M., C.S.T.
PLACE AND TIME OF SALE: The City Council of the City of Paris,Paris, Texas, will receive
sealed bids at the City Hall, Paris, Texas, until 2:00 P.M., C.S.T.,
WPdnesday, January 10, 1973, for the above bonds, more completely described
in the following pages.
ADDRESS OF BIDS: Sealed bids, plainly marked "Bid for Bonds" should be addressed to
the 'lionorable James W. Farris, Mayor, Paris, Texas". All bids must be
submitted on the "Official Bid Form", copies of which are attached.
TYPES OF BIDS INTEREST RATES AND BASIS OF AWARD: These bonds will be divided into
two blocks upon which bids are to be received:
Block Number One will consist of the Principal amount of $295,000, maturing
on July 1, in the years and in the amounts as follows: $15,000 each year
1973 to 1983, inclusive,$20,000 each year 1984 thru 1989, inclusive, and
$10,000 in 1990.
Block Number Tao will consist of the Principal amount of$355,000 maturing
on July 1, in the years and in the amounts as follows: $10,000, 1973 to
1975, inclusive; $15,000, 1976 to 1989, inclusive; $25,000 in 1990; $40,000
in 1991 and $50,000 in 1992.
Bonds of Block One and Block 'I~ao maturing on or after July 1, 1983, shall
be optional for prior redemption at par and accrued interest on July 1, 1982
or on any interest payment date thereafter.
Bids will be received on the bonds, all or none, or on Block One alone and
shall be submitted on the of£icial bid form without interlineation or altera-
tion. Bidders should specify the rate or rates of interest the bonds will
bear, but a bid of less than par and accrued interest will not be considered;
coupons must be in multiples of 1/20th of 1% or 1/8th of 1% and no rate in
excess of 10% will be considered. There is no established maximum number of
coupon rates which a bidder may name; however, a maximum of 22% will be
allowed between the highest and lowest coupon bid.
Bonds represented in Block One will be awarded to the bidder whose bid
produces the lowest interest cost to the City, computed by determining at the
rate or rates specified, the total dollar value of all interest on the bonds
frocn date thereof to their respective maturities and deducting therefrom any
premium bid.
Bonds represented in Block T~ao are proposed to be issued and sold to the
Texas Water Quality Board and Texas Water Development Fund under the provisions
of Article III, Sec. 40-d-1 State Constitution. Under this method the City
will thereby receive an additional grant from the Environmental Protection
Administration equal to $353,500, or 25% of the cost of the sewer project pro-
posed to be constructed with proceeds from this issue of bonds. The bonds
sold to the State Boards will bear interest at 5% and be sold at par and
accrued interest plus a premium in an amount sufficient'to reduce the net
effective interest rate to 4.9533 Any bidder bidding for Block One and
Block Tao, all or none, must quote an interest cost (total dollars) which will
equal $353,500 less than the Texas Water Quality Boards' interest cost for
Block Two figured at 4.9533 %($212,864.25), since this is the amount of the
additional grant the City will obtain under Public Law 660 by selling Block
Two to the Texas Water Quality Board.
GOOD FAITH DEPOSIT: Each bid must be accompanied by a Cashier's or Certified Check,
payable to "City of Paris,Paris, Texas",.-in the amount equal to 2% of the par
value amount of bonds bid upon. This check will be considered as a Good Fuith
Deposit. The check of the succesaful bidder will be retained
by the City to assure performance of the contract on the part of the
successful bidder. In the event such bidder should fail or refuse to i
take up and pay for the bonds in accordance with his bid, then said
check shall be cashed and accepted by the City as full and camplete
liquidated damages. Otherwise, said check will be returned to the
successful bidder upon delivery of and payment for the bonds or applied on
the purchase price of the bonds, whichever he desires. Checks of the
unsuccessful bidders will be returned to such bidders after the award is
made.
PRINTED BONDS: The City will furnish printed bonds on lithographed borders, which will
have imprinted thereon the facsimile signatures of the Mayor and City
Secretary pursuant to Article 717 j-1, Jernon's Annotated Texas Civil
Statutes.
LEGAL OPIDTION: The City will furnish to the successful purchaser a camplete Transcript
of the entire Proceedings had incident to the authorization and issuance
of the bonds, together with the final unqualified approving legal opinion
of the Attorney General of the State of Texas, and Messrs. McCal1, Parkhurst,
& Horton, Bond Attorneys, Dallas, Texas. The bonds will have printed on
the back thereof a copy of the final legal opinion of said bond attorneys
with a certification by the City Secretary to the effect that the legal
opinion was dated as of the date of delivery of and payment for the bonds
and that the copy is a true and correct copy of the original opinion.
NO-LITYGATION CERTIFICATE: The City will execute and deliver to the successful purchaser,
a certificate to the effect that no litigation of any nature has been filed
or is pending to restrain or enjoin the issuance or delivery of said
bonds or the coupons appertaining thereto, or which would affect the
provisions made for their payments or security, or in any manner question-
ing the validity of said bonds or coupons.
DENOMINATION OF BOIVDS: The bonds will be issued in denomination of $5,000.
DEIaIVERY: Delivery of this issue will be made at the expense of the City at any bank
in Austin, Texas, designated by the successful bidder. Payment should
be in funds immediately available to the City. It is anticipated that
delivery of the bonds can be made on or about Februaryl0, 1973, and
if for any reason the City is unable to make delivery on or before
February 25, 1973 thesuccessful bidder may accept delivery thereafter at
his option for the next succeeding 30 days.
ADDITIONAL COPIES OF NOTICE OF SALE AND BID FORNL: Additional copies of the "Official
Notice of Sale" and "Official Bid Form" may be obtained from Mr. H. C.
Greene,City Clerk, Paris, Texas, or from Rowles, Winston & Co., Inc.
200 Houston Natural Gas Building, Houston, Texas, 77002, financial
advisors to the City.
TIiE CITY RESERVES THE RIGHT TO REJECT ANY AND ALL BIDS, AND TO WAYVE ANY AND ALL
IRREGULARITIES.
DECEMBER 15, 1972
/S/ James W. Farris
Mayor
City of Paris, Paris, Texas
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