HomeMy WebLinkAbout1976-009 Water Improvement Revenue BondsRESOLUT ION
W~EREAS, at a special municipal bond election, duly
held in the City of Chubbuck (herein the "City"), County of
Bannock, State of Idaho (herein the "State"), on Tuesday,
the fourth day of November, 1975 (herein the "Election")
there was submitted to the qualified electors of the City
the following question:
"Shall the City of Chubbuck, Idaho, be authorized
to issue and sell its water improvement revenue
bonds in the aggregate principal amount of $250,000.00,
or so much thereof as may be necessary, for the pur-
pose of providing funds with which to improve, extend
and better the water system of the City, said bonds
to mature serially commencing within two years from
and after the date of the bonds and ending twenty
years from and after the date of the bonds, to bear
interest at a rate or rates not to exceed eight and
one-half percent (8-1/2%) per annum, as more fully
provided in Ordinance No. 157, signed and approved
October 15, 1975, the principal of and interest on
said bonds to be payable solely from the net revenues
to be derived from the operation of the City's water
system?
WHEREAS, the Question upon the issuance of the City's
water revenue bonds so voted at the Election duly carried by
more than a majority vote of ~ ~ percent of the quali-
fied electors in the City voting at the Election; and
WHEREAS, the result of the Election has heretofore
been duly canvassed and declared; and
WHEREAS, the bonds were authorized to be issued by
Ordinance No. 17~ , passed and signed on the ~ day of
August, 1976, and designated in § 1 thereof by the short
title "9-1-76 Bond Ordinance" (herein the "Bond Ordinance");
and
WHEREAS, the City Council of the City (herein the
"Council") has determined, and does hereby declare, that such
revenue bonds should be publicly sold in accordance with the
laws of the State.
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NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND
COUNCIL OF THE CITY OF CHUBBUCK, IDAHO:
Section 1. This resolution shall be known as and
may be cited by the short title "9-1-76 Public Sale Resolu-
tion''.
Section 2. The Mayor of the City and the City Clerk
(herein the "Mayor" and the "Clerk", respectively) be, and the
same hereby are, authorized a~ directed tQ have published a
notice of sale of bonds in ~ ~~ , the offi-
cial newspaper of the City of Chubbuck,~ ' ~for at least 3 conse-
cutive publications therein at weekly intervals. The date of
sale shall be after the lapse of at least 21 full days from
and after the date of the first publication of such notice.
Section 3. The Bonds shall be, and the same are
hereby ordered to be, publicly advertised for sale, and the
City Council will purchase cause sealed bids to be3~,. _. ~received,and'°pened~_~
publicly for the of the Bonds on ~
~ , 1976 at the hour of ~;D~ ~ .m. Mountain Daylight Time,
at the Chubbuck City Offices in the City.
Section 4. The notice of bond sale so to be pub-
lished shall be in substantially the following form:
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(Form of Notice of Bond Sale for Publication)
NOTICE OF BOND SALE
$250,000
CITY OF CHUBBUCK, IDAHO
WATER REVENUE BONDS
SERIES SEPTEMBER 1, 1976
NOTICE IS HEREBY GIVEN that the City Council of the
City of Chubbuck, Idaho, on ;--~,~ the ~ day of~3-,
1976 at the hour of ~ o'clock ~.m. at the City' Hall
Building, 5160 Yellowstone, Chubbuck, Idaho, shall receive
sealed bids and publicly open the same for the purchase of the
City of Chubbuck, Idaho, Water Revenue Bonds, Series September
1, 1976 (herein the "bonds"), in the principal amount of
$250,000.00, dated September 1, 1976, in the denomination
of $5,000.00 each, numbered consecutively in regular numerical
order from 1 through 50, and maturing serially on the first
day of September in each of the years and amounts hereinafter
designated, as follows:
Principal Years Principal Years
Maturing Maturing Maturing Maturing
$ 5,000 1978 $15,000 1988
5,000 1979 15,000 1989
10,000 1980 15,000 1990
10,000 1981 15,000 1991
10,000 1982 15,000 1992
10,000 1983 20,000 1993
10,000 1984 20,000 1994
10,000 1985 20,000 1995
10,000 1986 20,000 1996
15,000 1987
The bonds maturing on and before September 1, 1986,
shall not be subject to prior redemption. The bonds maturing
on and after September 1, 1987, shall be subject to prior
redemption, upon 30 days' prior notice, in whole, or in part
in inverse numerical order, at the City's option, on September
1, 1986, or on any interest payment date thereafter, for the
principal amount of each bond so redeemed, accrued interest
thereon'to the redemption date, and a premium of 2% of the
principal of each bond so redeemed.
Interest coupons shall be payable semiannually on
March 1 and September 1 in each year, commencing on March 1,
1977. The bonds shall bear interest at a rate or rates not
exceeding 8-1/2% per annum. The maximum interest spread
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permitted for the issue is 2% per annum. Each interest rate
evidenced by any coupon shall be stated in a multiple of 1/8
or 1/20 of 1% per annum. One interest rate only shall be
stated for any maturity. Interest shall be evidenced until
maturity by only one set of coupons payable to bearer. It
is permissible to bid different or split interest rates for
the bonds, subject to the above-stated limitations. If any
bond is not paid upon presentation at its maturity, interest
thereon shall continue at the same rate per annum until
the principal thereof is paid in full.
The principal of, any prior redemption premiums due
in connection with, and the interest on the bonds shall be
payable, without any oRtion of registration of anybo~d~or
payment, at The ~~ ~~ Bank, in
Idaho.
The bonds shall be payable, solely from, and shall
constitute a first lien (but not necessarily an exclusively
first lien) upon the net revenues derived from the operation
of the municipal water system.
Each bidder is required to submit a bid specifying:
the lowest rate of interest and premium, if any, at or above
par at which such bidder will purchase the bonds. They shall
be sold to the bidder making the best bid, subject to the
rights of the Council to reject any and all bids. None of
such bonds shall be sold at less than par and accrued in-
terest to the date of delivery to the purchaser, nor shall
any discount or commission be allowed or paid on the sale of
such bonds.
Each bid shall be sealed and, except the bid of the
State or its department of public investments, if one is re-
ceived, shall be accompanied by a deposit of five per centum
(5%), either cash, cashier's or treasurer's check, or certi-
fied check payable to the City, of the amount of the bid,
which shall be returned if the bid is not accepted; and if
the succussful bidder shall fail, or neglect, or refuse to
accept the bonds so sold and to complete the purchase of and
to pay for the bonds within 30 days following the acceptance
of his bid, or within 10 days after the bonds are made ready
and are offered by the City for delivery, whichever is later,
the amount of his deposit shall be forfeited to the City.
The right to reject any and all bids and to readvertise the
bonds for sale is expressly reserved by the City.
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The Official Notice of the Bond Sale, the 9-1-76
Bond Ordinance, an official statement or offering brochure,
and financial and other information may be obtained from the
City's financial consultant, Bosworth, Sullivan & Company,
950 Seventeenth Street, Denver, Colorado 80202, or the
City Clerk, Mrs. Vera C. Armstrong, City Hall, Chubbuck,
Idaho 83201. The validity and enforceability of the bonds
will be approved by Messrs. Dawson, Nagel, Sherman & Howard,
Attorneys at Law, 2900 First of Denver Plaza, Denver, Colorado
80202, whose final approving opinion, together with the printed
bonds and a certified transcript of the legal proceedings
will be furnished to the bond purchaser without charge.
Interest on the bonds is exempt from taxation under present
federal and state income tax laws. Legislation is pending
in the U. S. Congress which, for some investors, may effect
the present federal income tax exemption of bond interest.
By order of the Mayor and Council of the City of
Chubbuck, Idaho, this ~ day of August, 1976.
/s/ John O. Cotant, Jr.
Mayor
Attest:
/s/ Vera C. Armstrong
City Clerk
(End of Form of Notice of Bond Sale for Publication)
Section 5. The Mayor and Clerk are further autho-
rized and directed to mail a copy of the Official Notice of
Bond Sale at least 15 days prior to the date fixed for the
sale, to the State Auditor, Boise, Idaho, and to the State
Department of Public Investments, Boise, Idaho.
Section 6. The Official Notice of Bond Sale shall
be in substantially the following form:
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(Form of Official Notice of Bond Sale)
OFFICIAL NOTICE OF BOND SALE
$250,000.00
CITY OF CHUBBUCK, IDAHO
WATER REVENUE BONDS
SERIES SEPTEMBER 1, 1976
PUBLIC NOTICE IS HEREBY GIVEN that the City Council
of the City of Chubbuck (herein the "Council", and the "City"
respectively), in the County of Bannock and State of Idaho
(herein the "State"), on ~-~ the ~-~ day of ~~-,
1976, at the hour of ~;~m o'clock, ~.m. Mountain Daylight
Savings Time, at the City Hall Building, 5160 Yellowstone
Avenue, Chubbuck, Idaho, shall receive sealed bids and pub-
licly open the same for the purchase of the negotiable, coupon,
revenue bonds of the City, described below:
BOND PROVISIONS
ISSUE: City of Chubbuck, Idaho, Water Revenue
Bonds, Series September 1, 1976, in the aggregate principal
amount of $250,000.00, payable to bearer, dated as of the
first day of September, 1976, and consisting of 50 bonds in
the denomination of $5,000.00 each, numbered consecutively
in regular numerical order from 1 through 50 (herein the
"1976 bonds" and merely the "bonds").
MATURITIES: The bonds shall be numbered and mature
serially in regular numerical order on the first day of Sep-
tember in each of the designated amounts and designated years,
as follows:
Bond Numbers
(Ail I~nclusive)
Amounts Years
Maturin~ Maturing
1 $ 5,000 1978
2 5,000 1979
3 - 4 10,000 1980
5 - 6 10,000 1981
7 - 8 10,000 1982
9 - 10 10,000 1983
11 - 12 10,000 1984
13 - 14 10,000 1985
15 - 16 10,000 1986
17 - 19 15,000 1987
20 - 22 15,000 1988
23 - 25 15,000 1989
26 - 28 15,000 1990
29 - 31 15,000 1991
32 - 34 15,000 1992
35 - 38 20,000 1993
39 - 42 20,000 1994
43 - 46 20,000 1995
47 - 50 20,000 1996
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PRIOR REDEMPTION: Bonds maturing on and before
the first day of September, 1986, shall not be subject to
prior redemption. Bonds maturing on and after the first
day of September, 1987, shall be subject to redemption prior
to their respective maturities, in whole, or in part in
inverse numerical order, at the option of the City, on the
first day of September, 1986, at a price equal to the prin-
cipal amount of each bond so redeemed, accrued interest
thereon to the redemption date, and a premium of 2% of the
principal amount of each bond so redeemed. Redemption
shall be made upon not less than 30 days' prior notice
by publication and by mail addressed (among others) to the
original purchaser of the bonds or to the manager of any
purchasing account, in the manner and upon the conditions
provided in the ordinance authorizing the issuance of the
bonds, designated in S 1 of the ordinance by the short
title "9-1-76 Bond Ordinance" (herein the "Bond Ordinance").
INTEREST RATES AND LIMITATIONS. The following
interest limitations are applicable for the issue:
A. Interest coupons shall be payable semiannually
on the first days of March and September in each year,
commencing on the first day of March, 1974.
B. The maximum interest rate is 8-1/2% per annum.
C. The maximum interest spread permitted for the
issue is 2% per annum, i.e., the maximum rate of in-
terest accruing on any bond prior to its maturity
cannot exceed the minimum rate of interest accruing
on any other bond of the issue prior to its maturity
by more than 2% per annum.
D. Each interest rate specified and to be evi-
denced by any coupon must be stated in a multiple of
1/8 or 1/20 of 1% per annum.
E. One interest rate .only shall be stated for any
maturity of the issue, i.e., all bonds of the issue
with the same maturity shall bear the same rate of
interest.
F. Each bond shall bear interest from its date
to its stated maturity date at the interest rate stated
in the bid. No bond shall bear more than one rate of
interest. A zero (0) rate of interest cannot be named.
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G. Interest on each bond shall be evidenced
to and including its maturity by only ~one set of
''cOupOns ~pa~Y&ble to bearer, supplemental coupons
shall'not be permitted, and no interest payment
shall be evidenced by more than one coupon.
It is permissible to bid different or "split" interest rates
for the bonds, as stated only in the bid, subject to the
above-stated limitations. If any bond shall not be paid
upon presentation at its maturity, it shall draw interest
at the same rate per annum until the principal thereof is
paid in full.
PLA'CE''OF PAI~{ENT: The principal of, any prior
redemption premium due in connection with, and the interest
on the bonds shall be payable in lawful money of the
UnitedStates of America, without deduction for
exchange or~o? charges, at the ~~~ ~
Bank, in ' Idaho, as Paying Agent.
NO REGISTRATION FCR PAYMENT: The bond ordinance
contains and the bonds shall contain, no provision for the
registration of the bonds for payment as to principal or
interest, or as to both principal and interest.
SECURITY: The bonds, in the opinion of counsel, shall
be payable solely from, and they shall constitute an ir-
revocable and first lien (but not necessarily an exclusively
first lien) upon, the revenues derived from the operation of
the municipal water system. As security for such payment of
the 1976 bonds there are pledged, pursuant to the bond or-
dinance, two special accounts identified as the "City of
Chubbuck, Idaho, Water Revenue Bonds, Series September 1,
1976, Interest and Bond Retirement Fund," and as the "City
of Chubbuck, Idaho, Water Revenue Bonds, Series September 1,
1976, Reserve Fund," into which the City covenants to pay from
the net revenues derived from the water system sums sufficient
to pay when due the principal and interest of the bonds and to
create and maintain a reasonable and specified reserve for
such purpose.
ADDITIONAL BONDS: Additional bonds and other obli-
gations having a lien on such net revenues, subject to ex-
press conditions, junior to, or subject to additional expressed
conditions, on a parity with, the lien thereon to secure the
payment of 1976 bonds, may be issued in accordance with the
provisions of the bond ordinance. The City does not now
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intend to issue any additional securities for any purpose,
but the City reserves the privilege of issuing securities
of any type if and whenever the Council determines to do
so ·
AUTHORIZATION: The 1976 bonds were authorized, and
constitute all the bonds then authorized, by the qualified
electors of the City at a municipal bond election held
therein on the fourth day of November, 1976, pursuant to
the Constitution and laws of the State, including, without
limitation, the Revenue Bond Act of the State of Idaho,
cited as ~S 50-1027 through 50-1042, Idaho Code. Subsequently,
the City has authorized the issuance of the bonds by the bond
ordinance, reference to which ordinance is made for further
detail.
'PURPOSE OF I'SSUE: The bonds were authorized for
the purpose of improving, bettering and extending the City's
water system.
OUTSTANDING SECURITIES: The City has issued no
bonds nor other securities which are now outstanding and to
which any water system revenues are pledged for their pay-
ment; but the City has outstanding securities of other issues
which are not payable from the water system revenues.
FEDERAL TAX EXEMPTION: In the opinion of bond
counsel the interest on the bonds is exempt from income
taxation by the United States of America under present
laws and court decisions. Congress has under consideration
several proposals concerning such tax exemption the adop-
tion of any one or more of which may partially terminate
or purportedly terminate the exemption directly or indirectly.
If, prior to the delivery of the bonds to the successful
bidder therefor, the income received by private holders
of obligations of the same type and character shall be
taxable or shal.1 be required to be used in any tax compu-
tation by the terms of any federal income tax law hereafter
enacted, the successful bidder, at his election made prior
to the tender by the City of the bonds for delivery, may
be relieved of his obligation under the contract to pur-
chase the bonds. In such case the contract to purchase
the bonds shall terminate, and the deposit accompanying the
purchaser's bid shall be returned to the purchaser upon
written request therefor. Any such option shall be exer-
cised by a letter addressed to the bond counsel herein-
after designated and deposited in the United States mails,
postage prepaid, and as air mail unless so mailed in Denver,
Colorado.
STATE' TAX EXEMPTION: Pursuant to Section 50-1042,
Revenue Bond Act, and Section 63-3022, Idaho Code, as amended
by Chapter 90, Session Laws of Idaho, 1975, the bonds and
the income therefrom shall be exempt from state income tax-
ation (except transfer and estate taxes).
CORPORATE 'ORGANIZATION: The City of Chubbuck is a
legally and regularly created, established, organized and
existing municipal corporation, body corporate and politic,
and political subdivision of the State, its full corporate
name being the "City of Chubbuck".
POPULATION: The City's population as shown by
the 1970 Federal Census was 2,924; and the City's population
is currently estimated to be ~~ .
TERMS OF SALE
BID PROPOSALS: No specified form of bid is required.
Any bidder is 'required to submit an unconditional and written
bid for all of the bonds of the issue therein specifying:
(1) The lowest rate or rates of interest and
premium, if any, at or above par, at which the
bidder will purchase the bonds of such issue.
It is also requested for informational purposes gnly, but is
not required that each bid disclose:
(2) The total net interest cost in dollars
and cents to the City; and
(3) The net interest rate in a stated per
centum.
Each bid must also be enclosed in a sealed envelope marked
on the outsides
"P~oposal for Bonds"
and addressed to:
Mrs. Vera C. Armstrong
City Clerk and City Treasurer
City Hall Building
5160 Yellowstone Street
Chubbuck, Idaho 83201
BID CHECK: Each bid (except any bid which may be
received from the State or its department of public invest-
ments, if one is received) shall be accompanied by a deposit
of cash, or by a cashier's check or treasurer's check of, or
by a certified check drawn on, a solvent commercial bank or
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trust company in the United States of America, made payable
to the:
City of Chubbuck,
in an amount equal to 5% of the amount of the bid, i.e. the
principal amount of the bonds plus the amount of any premium,
which deposit of the best bidder will be held as evidence of
good faith pending the delivery of the bonds, to secure the
City against any loss resulting from a failure of the best
bidder for the issue to comply with the terms of his proposal.
(The City, however, prior to the delivery of the bonds, shall
not deposit for collection any such good faith deposit evi-
denced by a check.) Checks accompanying bids, other than
that accompanying the bid which is accepted, will be returned
upon the award of the bonds by the Council.
'CUSIP NUMBERS: Any bidder has the option to have
the applicable CUSIP numbers printed on the filing panel on
the back of the bonds, at the request and expense of the
bidder. If a wrong number is printed on any bond or if a
number is not printed thereon, although so requested, such
shall not constitute cause for the successful bidder to
refuse delivery of any bond.
BIDDER"S OPTIONS: It is permissible, subject to
expressed limitations, for any bidder:
A. To bid different interest rates for the
bonds (see "Interest Rates and Limitations" above),
B. To be relieved of the bidder's obligation
to purchase the bonds due to the repeal of the
exemption from federal income taxes (see "Federal
Tax Exemption" above), and
C. To have the applicable CUSIP numbers printed
on the bonds (see "CUSIP Numbers" above).
ME. THO~...OF EXERCISING BIDDER'S OPTIONS: Any option
herein granted a bidder for the bonds may be exercised (unless
herein otherwise expressly provided) only by the inclusion of
an appropriate statement in the bid submitted for the bonds.
SALE RESERVATIONS: The Council, in connection
with the issue herein designated for sale, reserves the pri-.
A. 0f~'Waiving any irregularity or informality
in any bid;-
B. Of .rejecting any and all bids; and
C. Of reoffering the bonds for sale, as
provided by law.
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BASIS OF AWARD: The bonds of the issue herein
designated for sale, subject to such sale reservations, shall
be sold by the Council to the responsible bidder making the
best bid for all the bonds of such issue. The best bid
shall be determined by deducting the amount of the premium
bid, if any, from the total amount of interest which the
City of Chubbuck would be required to pay from the date of
the bonds to the respective maturity dates at the coupon
rate or rates specified in the bid, without reference to
the possible redemption of the bonds prior to maturity, and
otherwise computed in accordance with the "IBA" (Investment
Bankers Association) or "interest cost per annum" method;
and the award will be made on the basis of the lowest
net interest cost to the City. If there are two or more
equal bids for the bonds of the issue and such equal bids are
the best bids for the bonds of the issue and such equal bids
are the best bids received and for not less than the prin-
cipal amount of the bonds, and accrued interest, the Council
shall determine which bid shall be accepted.
SALE BELOW PAR, DISCOUNT AND COMMISSION 'PROHIBITED:
None of the bonds shall be sold for less than their principal
amount and accrued interest thereon to the date of their
delivery to the purchaser, nor shall any discount or com-
mission be allowed or paid on the sale of any of the bonds.
PLACE AND TIME OF AWARD: The Council shall cause
the bids submitted to be opened at the time and place
hereinabove stated. It will promptly take action, upon
determining the best bids, awarding the bonds, or rejecting
all bids for the bonds. In any event the Council shall take
action awarding the bonds or rejecting all bids not later
than 24 hours after the time herein stated for opening bids.
An award may be made after the period herein designated if
the bidder shall not have given to the Clerk of the City
notice in writing of the withdrawal of his bid.
MAN~ER AND TIME OF DELIVERY: The deposit of the
best bidder for the issue shall be credited to the purchaser
thereof at the time of delivery of the bonds of such issue
(without accruing interest). If the successful bidder for
the issue fails, or neglects, or refuses to complete the
purchase of the bonds of such issue within 30 days follow-
ing the acceptance of his bid, or within 10 days next after
the date on which the bonds of such issue are made ready and
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are tendered by the City for delivery, whichever is later,
the amount of the deposit of the successful bidder for such
issue shall be forfeited (as liquidated damages for non-
compliance with the bid) to the City. In that event, the
Council may reoffer the bonds of such issue for sale, as
provided by law. The purchaser of the issue will not be re-
quired to accept delivery of any of the bonds, if they are
not made ready and are not tendered by the City for delivery
within 60 days from the date herein stated for opening bids;
and if the bonds are not so tendered within such period of
time, the good faith deposit for the issue will be returned
to the purchaser thereof upon his request. The bonds will
be made available for delivery by the City to the purchaser
thereof as soon as reasonably possible after the date of the
sale; and the City contemplates delivering them in about 30
days from the date stated for opening bids and as soon as
reasonably possible thereafter. The purchaser of the issue
will be given 72 hours' notice of the time fixed by the City
for tendering the bonds for delivery.
PAYMENT AT AND''PLACE OF DELIVERY: The successful
bidder or bidders for the issue (other than the State) shall
be required to make payment of the balance due for and to
accept delivery of the bonds of such issue:
A. At Some commercial bank or trust company
in Chubbuck, or Pocatello, Idaho; or
B. At the successful bidder's request and
expense, at some other commercial bank or trust
company in the United States of America, as
requested.
Payment of the balance of the purchase price due for the
issue at the time of its delivery must be made in funds
acceptable to the City and to the bank or trust company
designated as the place of delivery for immediate and un-
conditional credit to the account of the City, as directed
by the City, at a bank or banks designated by the City and
located in Chubbuck or Pocatello, Idaho, so that bond pro-
ceeds may be so deposited or invested in federal securities,
or both so deposited and so invested, as the City may deter-
mine, simultaneously with the delivery of the bonds of the
issue by the use of the proceeds thereof. The balance Of
the purchase price, including any premium, must be paid in
such funds and' not by cancellation of any interest coupons,
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nor by any waiver of interest nor by any other concession
as a substitution for such funds.
INFORF~%TION: This Official Notice of Bond Sale (a
condensation of which was ordered published), the Bond Or-
dinance, an official statement or offering brochure, and
financial and other information concerning the City and
the bonds may be obtained from:
Bosworth, Sullivan & Co.
950 Seventeenth Street
Denver, Colorado 80202
Area Code: 303; Telephone: 534-1177
or
Mrs. Vera C. Armstrong
City Clerk
City Hall Building
5160 Yellowstone Street
Chubbuck, Idaho 83201
Area Code: 208; Telephone: 233-0780
LEGAL OPINION, BONDS AND TRANSCRIPT: The validity
and enforceability of the bond issue will be approved by:
Messrs. Dawson, Nagel, Sherman & Howard
Attorneys at Law
2900 First of Denver Plaza
Denver, Colorado 80202
Area Code: 303; Telephone: 893-2900
whose unqualified, final, approving opinion, together with
the printed bonds on steel engraved borders, a certified
transcript of the legal proceedings, including therefor 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 of the bonds 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 over a facsimile signature of the City Clerk attesting
to the fact that a manually executed and dated copy of the
opinion is on file in the records of the City in her office
and that a like copy was forwarded to a designated repre-
sentative of the purchaser thereof for retention in its
records.
FORM OF OPINION: Bond counsel's unqualified, final
approving opinion pertaining to the issue will recite in
conventional form that the designated law firm has examined
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the Constitution and laws of the State and a certified copy
of the record of the proceedings of the Council taken pre-
liminary to and in the issuance of the bonds of the issue,
describing them in some detail, and that the designated firm
has examine4 bond numbered one of such issue (but not cusip
numbers, if any) and has found the same properly executed and
in due legal form. The last paragraph of the approving
opinion for the issue will read (subject to the provisions
hereinabove entitled "Federal Tax Exemption") substantially
as follows:
It is our opinion that such proceedings show lawful
authority for such issue of the 1976 bonds under the
laws of the State of Idaho now in force; that the bonds
are valid and legal obligations of the City, payable
solely from, and as security for such payment there
are pledged, two special accounts identified as the
"City of Chubbuck, Idaho, Water Revenue Bonds, Series
September 1, 1976, Interest and Bond Retirement Fund,"
and as the "City of Chubbuck, Idaho, Water Revenue
Bonds, Series September 1, 1976, Reserve Fund," into
which the City has covenanted to pay from the revenues
derived from the operation of its municipal water
system, after provision only for all necessary and
reasonable expenses of the operation and maintenance
of the system, sums sufficient to pay when due the
principal of and the interest on the bonds and to
create and maintain a reasonable and specified
reserve for such purpose; that the 1976 bonds con-
stitute an irrevocable and first lien (but not neces-
sarily and exclusively first lien) on all the net
revenues of the system; the obligations of the City
of Chubbuck, Bannock County, Idaho, are subject to
the reasonable exercise in the future by the State
of Idaho and its governmental bodies of the police
power inherent in the sovereignty of the State and
to the exercise by the United States of the powers
delegated to it by the Federal Constitution; that the
interest on the 1976 bonds is exempt from taxation by the
United States of America under present federal income tax
laws.
By order of the Mayor and Council of the City of
Chubbuck, Idaho, this '~day of August, 1976.
Attest:
.... C ty' Clerk ....
John '0. Cotant, Jr.
Mayor
City of Chubbuck
(End of Form of Official Notice
of Bond Sale)
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Section 7. The City Council will receive sealed
bids and publicly open the sa~e for the bonds at the place,
day and hour designated in the Official Notice of Bond Sale
hereinabove authorized.
Section 8. The Mayor, the Clerk and the City's
financial consultant, Bosworth, Sullivan & Co., Denver,
Colorado, be and hereby are authorized and directed to give
such other notice of such bond sale as they shall individually
or collectively deter~ine, including, without limitation:
A. The publication of the notice authorized
by section 4 hereof or an excerpt thereof in any
financial newspapers and periodicals; and
B. The distribution among investment bankers
and others of a bond brochure or an official state-
ment and other information relating to the bonds,
to the City, and to the water Project.
Section 9. Upon receipt of such bids, the finan-
cial consultant and the Treasurer of the City shall cause them
to be tabulated and shall report forthwith the results thereof
to the Council, which shall thereupon accep~ the bidL of the
highest responsible bidder or reject all bids for the issue.
Section 10. The officers of the City, with the
assistance of the City's financial consultant and bond
counsel, shall be, and they hereby are, authorized and
directed to take all action necessary or appropriate to ef-
fectuate the provisions of this resolution, including, with-
out limitation:
A. The assembly of financial and other infor-
mation concerning the City and the bonds, and
B. The preparation of an offering statement
or prospectus and other material for prospective
bidders.
Section 11. Ail action heretofore taken (not incon-
sistent with the provisions of this resolution) by the Council
and the officers of the City, on its behalf, directed:
A. Toward the water Project, and
B. Toward the public sale of the bonds and
their issuance for that purpose,
be, and the same hereby is, ratified, approved and confirmed,
including, without limitation, the giving of notice of the
public sale.
Section 12. All orders, bylaws and resolutions, or
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parts thereof, in conflict with this resolution are hereby
repealed to the extent only of such inconsistency. This
repealer shall not be construed to revive any order,
bylaw or resolution, or part thereof, heretofore
repealed.
Section 13. If any section, paragraph, clause or
provision of this resolution shall for any reason be held to
be invalid or unenforceable, the invalidity or unenforce-
ability of such section, paragraph, clause or provision
shall not affect any of the remaining provisions of this
resolution.
Section 14. This resolution shall take effect
and be in full force and effect from and after its passage
and approval.
PASSED AND APPROVED by the City Council of the
City of Chubbuck, Idaho, this ~. day of August, 1976.
SIGNED by the Mayor of the City of Chubbuck, Idaho,
this ~day of August, 1976.
CITY COUNCIL OF THE
CITY OF CHUBBUCK, a municipal
cor~,~n of Idaho
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