RESOLUTION NO. 6871

 

 

            RESOLUTION AUTHORIZING THE OFFERING FOR SALE OF GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2010-A, OF THE CITY OF LAWRENCE, KANSAS.

 

            WHEREAS, the City of Lawrence, Kansas (the “Issuer”), has heretofore authorized certain internal improvements described as follows (the “Improvements”):

 

Project Description	Ordinance No.	Authority	Amount
West Lawrence Labs Project	Ord. No. 8480	Art. 12, Section 5 of the Kansas Constitution	$2,900,000

; and

 

            WHEREAS, the Issuer desires to issue its general obligation bonds in order to permanently finance the costs of such Improvements; and

 

            WHEREAS, the Issuer, has selected the firm of Gilmore & Bell, P.C. (“Bond Counsel”), as bond counsel for a series of general obligation bonds of the Issuer to be issued in order  to provide funds to permanently finance the Improvements; and

 

            WHEREAS, the Issuer desires to authorize the City staff and Bond Counsel to proceed with the offering for sale of said general obligation bonds and related activities; and

 

            WHEREAS, one of the duties and responsibilities of the Issuer is to prepare and distribute a preliminary official statement relating to said general obligation bonds; and

 

            WHEREAS, the Issuer desires to authorize Bond Counsel, in conjunction with the Clerk, to proceed with the preparation and distribution of a preliminary official statement and notice of bond sale and to authorize the distribution thereof and all other preliminary action necessary to sell said general obligation bonds.

 

            BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF LAWRENCE, KANSAS, AS FOLLOWS:

 

            Section 1.  The Issuer is hereby authorized to offer for sale the Issuer’s General Obligation Improvement Bonds, Series 2010-A (the “Bonds”) described in the Notice of Bond Sale, which is hereby approved in substantially the form presented to the governing body this date.

 

            Section 2.  The Mayor and Clerk in conjunction with Bond Counsel are hereby authorized to cause to be prepared a Preliminary Official Statement, and such officials and other representatives of the Issuer are hereby authorized to use such document in connection with the sale of the Bonds.

 

            Section 3.  The Clerk, in conjunction with Bond Counsel, is hereby authorized and directed to give notice of said bond sale by publishing a summary of the Notice of Bond Sale not less than 6 days before the date of the bond sale in a newspaper of general circulation in Douglas County, Kansas, and the Kansas Register and by distributing copies of the Notice of Bond Sale and Preliminary Official Statement to prospective purchasers of the Bonds.  Proposals for the purchase of the Bonds shall be submitted upon the terms and conditions set forth in said Notice of Bond Sale, and shall be delivered to the governing body at its meeting to be held on such date, at which meeting the governing body shall review such bids and shall award the sale of the Bonds or reject all proposals.

 

            Section 4.  For the purpose of enabling the purchaser of the Bonds (the “Purchaser”) to comply with the requirements of Rule 15c2-12 of the Securities Exchange Commission (the “Rule”), the appropriate officers of the Issuer are hereby authorized:  (a) to approve the form of said Preliminary Official Statement, and to execute the “Certificate Deeming Preliminary Official Statement Final” in substantially the form attached hereto as Exhibit A, as approval of the Preliminary Official Statement, such official’s signature thereon being conclusive evidence of such official’s and the Issuer’s approval thereof; (b) covenant to provide continuous secondary market disclosure by annually transmitting certain financial information and operating data and other information necessary to comply with the Rule to the Municipal Securities Rulemaking Board through the Electronic Municipal Market Access system, as applicable; and (c) take such other actions or execute such other documents as such officers in their reasonable judgment deem necessary to enable the Purchaser to comply with the requirement of the Rule.

 

            Section 5.  The Issuer agrees to provide to the Purchaser within seven business days of the date of the sale of Bonds or within sufficient time to accompany any confirmation that requests payment from any customer of the Purchaser, whichever is earlier, sufficient copies of the final Official Statement to enable the Purchaser to comply with the requirements of Rule 15c2-12(3) and (4) of the Securities and Exchange Commission and with the requirements of Rule G-32 of the Municipal Securities Rulemaking Board.

 

            Section 6.  The Mayor, Clerk and the other officers and representatives of the Issuer, and Bond Counsel are hereby authorized and directed to take such other action as may be necessary to carry out the public sale of the Bonds. 

 

            Section 7.  This Resolution shall be in full force and effect from and after its adoption.

 

[BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

            ADOPTED by the governing body on December 15, 2009.

 

 

 

(SEAL)                                                                                                                                               

                                                                                                Rob Chestnut, Mayor

ATTEST:

 

 

 

                                                           

Jonathan Douglass, City Clerk

 

 

EXHIBIT A

 

CERTIFICATE DEEMING

PRELIMINARY OFFICIAL STATEMENT FINAL

 

 

 

 

DECEMBER 15, 2009

 

 

To:       [Purchaser Name]

            [Purchaser City, State]

 

            Re:       $2,900,000 City of Lawrence, Kansas, General Obligation Improvement Bonds, Series 2010-A

 

Ladies and Gentlemen:

 

            The undersigneds are the duly acting Mayor and Clerk of the City of Lawrence, Kansas (the “Issuer”), and are authorized to deliver this Certificate to the addressee (the “Purchaser”) on behalf of the Issuer.  The Issuer has heretofore caused to be delivered to the Purchaser copies of the Preliminary Official Statement (the “Preliminary Official Statement”), relating to the above-referenced bonds (the “Bonds”).

 

            For the purpose of enabling the Purchaser to comply with the requirements of Rule 15c2-12(b)(1) of the Securities and Exchange Commission (the “Rule”), the Issuer hereby deems the information regarding the Issuer contained in the Preliminary Official Statement to be final as of its date, except for the omission of such information as is permitted by the Rule, such as offering prices, interest rates, selling compensation, aggregate principal amount, principal per maturity, delivery dates, ratings, identity of the underwriters and other terms of the Bonds depending on such matters.

 

                                                                        Very truly yours,

 

                                                                        CITY OF LAWRENCE, KANSAS

 

 

 

                                                                        By:                                                      

                                                                        Title:    Mayor

 

 

 

                                                                        By:                                                      

                                                                        Title:    Clerk

NOTICE OF BOND SALE

 

$2,900,000

 

CITY OF LAWRENCE, KANSAS

 

GENERAL OBLIGATION IMPROVEMENT BONDS

SERIES 2010-A

 

 

(GENERAL OBLIGATION BONDS PAYABLE

FROM UNLIMITED AD VALOREM TAXES)

 

            Bids.  Written and electronic (as explained below) bids for the purchase of the above-referenced bonds (the “Bonds”), of the City of Lawrence, Kansas (the “Issuer”) herein described will be received on behalf of the undersigned Clerk of the Issuer, in the case of written bids, at the address hereinafter set forth, and in the case of electronic bids, via PARITY^® until 11:00 a.m., Central Time (the “Submittal Hour”), on

 

[JANUARY ___, 2010]

 

(the “Sale Date”).  All bids will be publicly evaluated at said time and place and the award of the Bonds will be acted upon by the governing body at its meeting to be held at 6:35 p.m. on the Sale Date.  No oral or auction bids will be considered.  Capitalized terms not otherwise defined herein shall have the meanings set forth in the hereinafter referenced Preliminary Official Statement relating to the Bonds.

 

            Terms of the Bonds.  The Bonds will consist of fully registered bonds in the denomination of $5,000 or any integral multiple thereof (the “Authorized Denomination”).  The Bonds will be dated January 15, 2010 (the “Dated Date”), and will become due in principal installments on September 1 in the years as follows:

 

 

            The Bonds will bear interest from the Dated Date at rates to be determined when the Bonds are sold as hereinafter provided, which interest will be payable semiannually on March 1 and September 1 in each year, beginning on September 1, 2010 (the “Interest Payment Dates”).

 

            Adjustment of Issue Size.  The Issuer reserves the right to increase or decrease the total principal amount of the Bonds, depending on the purchase price and interest rates bid and the offering prices specified by the successful bidder.  The principal amount of any maturity may be adjusted by the Issuer in order to properly size the Bond issue based on the and discount and interest rates bid on the Bonds.  The successful bidder may not withdraw its bid or change the interest rates bid as a result of any changes made to the principal amount of the Bonds or principal of any maturity as described herein.  If there is an increase or decrease in the final aggregate principal amount of the Bonds or the schedule of principal payments as described above, the Issuer will notify the successful bidder by means of telephone or facsimile transmission, subsequently confirmed in writing, no later than 2:00 p.m., central time, on the Sale Date.  The actual purchase price for the Bonds shall be calculated by applying the percentage of par value bid by the successful bidder against the final aggregate principal amount of the Bonds, as adjusted, plus accrued interest from the date of the Bonds to the date of delivery.

 

            Place of Payment.  The principal of and interest on the Bonds will be payable in lawful money of the United States of America by check or draft of the Treasurer of the State of Kansas, Topeka, Kansas (the “Paying Agent” and “Bond Registrar”).  The principal of each Bond will be payable at maturity or earlier redemption to the owners thereof whose names are on the registration books (the “Bond Register”) of the Bond Registrar (the “Registered Owner”) upon presentation and surrender at the principal office of the Paying Agent.  Interest on each Bond will be payable to the Registered Owner of such Bond as of the fifteenth day (whether or not a business day) of the calendar month next preceding each Interest Payment Date (the “Record Date”): (a) mailed by the Paying Agent to the address of such Registered Owner as shown on the Bond Register or at such other address as is furnished to the Paying Agent in writing by such Registered Owner; or (b) in the case of an interest payment to Cede & Co. or any Owner of $500,000 or more in aggregate principal amount of Bonds, by wire transfer to such Registered Owner upon written notice given to the Paying Agent by such Registered Owner, not less than 15 days prior to the Record Date for such interest, containing the wire transfer address to which such Registered Owner wishes to have such wire directed.

 

            Bond Registration.  The Bonds will be registered pursuant to a plan of registration approved by the Issuer and the Attorney General of the State of Kansas.  The Issuer will pay for the fees of the Bond Registrar for registration and transfer of the Bonds and will also pay for printing a reasonable supply of registered bond blanks.  Any additional costs or fees that might be incurred in the secondary market, other than fees of the Bond Registrar, will be the responsibility of the Owners.

 

            Book-Entry-Only System.  The Depository Trust Company, New York, New York (“DTC”), will act as securities depository for the Bonds.  The Bonds will initially be issued exclusively in “book entry” form and shall be initially registered in the name of Cede & Co., as the nominee of DTC and no beneficial owner will receive certificates representing their interests in the Bonds.  During the term of the Bonds, so long as the book-entry-only system is continued, the Issuer will make payments of principal of, premium, if any, and interest on the Bonds to DTC or its nominee as the Registered Owner of the Bonds, DTC will make book-entry-only transfers among its participants and receive and transmit payment of principal of, premium, if any, and interest on the Bonds to its participants who shall be responsible for transmitting payments to beneficial owners of the Bonds in accordance with agreements between such participants and the beneficial owners.  The Issuer will not be responsible for maintaining, supervising or reviewing the records maintained by DTC, its participants or persons acting through such participants.  In the event that (i) DTC determines not to continue to act as securities depository for the Bonds, or (ii) the Issuer determines that continuation of the book-entry-only form of evidence and transfer of ownership of the Bonds would adversely affect the interests of the beneficial owners of the Bonds, the Issuer will discontinue the book-entry-only form of registration with DTC.  If the Issuer fails to identify another qualified securities depository to replace DTC, the Issuer will cause to be authenticated and delivered to the beneficial owners replacement Bonds in the form of fully registered certificates.  Reference is made to the Official Statement for further information regarding the book-entry-only system of registration of the Bonds and DTC.

 

            Redemption of Bonds Prior to Maturity.

 

            General.  Whenever the Issuer is to select Bonds for the purpose of redemption, it will, in the case of Bonds in denominations greater than the minimum Authorized Denomination, if less than all of the Bonds then outstanding are to be called for redemption, treat each minimum Authorized Denomination of face value of each such fully registered Bond as though it were a separate Bond in the minimum Authorized Denomination.

 

            Optional Redemption.  At the option of the Issuer, Bonds or portions thereof maturing on September 1 in the years 20[__], and thereafter, will be subject to redemption and payment prior to maturity on September 1, 20[__], and thereafter, as a whole or in part (selection of maturities and the amount of Bonds of each maturity to be redeemed to be determined by the Issuer in such equitable manner as it may determine) at any time, at the redemption price of 100% (expressed as a percentage of the principal amount), plus accrued interest to the date of redemption.

 

            Mandatory Redemption.  A bidder may elect to have all or a portion of the Bonds scheduled to mature in consecutive years issued as term bonds (the “Term Bonds”) scheduled to mature in the latest of said consecutive years and subject to mandatory redemption requirements consistent with the schedule of serial maturities set forth above, subject to the following conditions:  (a) not less than all Bonds of the same serial maturity shall be converted to Term Bonds with mandatory redemption requirements; and (b) a bidder shall make such an election by completing the applicable paragraph on the Official Bid Form or completing the applicable information on PARITY^®.

 

            Notice and Effect of Call for Redemption. Unless waived by any owner of Bonds to be redeemed, if the Issuer shall call any Bonds for redemption and payment prior to the maturity thereof, the Issuer shall give written notice of its intention to call and pay said Bonds to the Bond Registrar and the original purchaser of the Bonds.  In addition, the Issuer shall cause the Bond Registrar to give written notice of redemption to the registered owners of said Bonds.  Each of said written notices shall be deposited in United States first class mail not less than 30 days prior to the date fixed for redemption.  All notices of redemption shall state the date of redemption, the redemption price, the Bonds to be redeemed, the place of surrender of Bonds so called for redemption and a statement of the effect of the redemption.  The Issuer shall also give such additional notice as may be required by Kansas law or regulation of the Securities and Exchange Commission in effect as of the date of such notice.  If any Bond be called for redemption and payment as aforesaid, all interest on such Bond shall cease from and after the date for which such call is made, provided funds are available for its payment at the price hereinbefore specified.

 

            Authority, Purpose and Security.  The Bonds are being issued pursuant to K.S.A. Article 12 Section 5 of the Constitution of the State of Kansas and Home Rule Ordinance _______ of the City, as amended, and an ordinance and resolution adopted by the governing body of the Issuer (jointly the “Bond Resolution”) for the purpose of paying the cost of acquiring certain property and making improvements thereto, all for economic development purposes (the “Improvements”).  The Bonds shall be general obligations of the Issuer payable as to both principal and interest from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer.  The full faith, credit and resources of the Issuer are irrevocably pledged for the prompt payment of the principal and interest on the Bonds as the same become due.

 

            Submission of Bids.  Written bids must be made on forms which may be procured from the Clerk and shall be addressed to the undersigned, and marked “Proposal for General Obligation Improvement Bonds, Series 2010-A.”  Written bids submitted by facsimile should not be preceded by a cover sheet and should be sent only once to _______________.  Confirmation of receipt of facsimile bids may be made by contacting the undersigned at the number listed below.  Electronic bids via PARITY^® must be submitted in accordance with its Rules of Participation, as well as the provisions of this Notice of Bond Sale.  If provisions of this Notice of Bond Sale conflict with those of PARITY^®, this Notice of Bond Sale shall control.  Bids must be received prior to the Submittal Hour on the Sale Date accompanied by the Deposit (as hereinafter defined), which may be submitted separately, provided such Deposit is received by the Issuer prior to the Submittal Hour on the Sale Date.  The Issuer shall not be responsible for any failure, misdirection or error in the means of transmission selected by any bidder.

 

            PARITY^®.  Information about the electronic bidding services of PARITY^® may be obtained from i-Deal LLC at 1359 Broadway, 2nd Floor, New York, New York  10018, Phone No. (212) 849-5023.

 

            Conditions of Bids.  Proposals will be received on the Bonds bearing such rate or rates of interest as may be specified by the bidders, subject to the following conditions:  (a) the same rate shall apply to all Bonds of the same maturity year; (b) no interest rate may exceed a rate equal to the daily yield for the 10-year Treasury Bond published by THE BOND BUYER, in New York, New York, on the Monday next preceding the day on which the Bonds are sold, plus 5%; (c) no supplemental interest payments will be considered; and (d) each interest rate specified shall be a multiple of 1/8 or 1/20 of 1%.  The difference between the highest rate specified and the lowest rate specified cannot exceed [____]%.  No bid shall be for less than [100%][___%] of the principal amount of the Bonds and accrued interest thereon to the date of delivery will be considered.  Each bid shall specify the total interest cost (expressed in dollars) during the term of the Bonds on the basis of such bid, [the discount, if any, ]the premium, if any, offered by the bidder, the net interest cost (expressed in dollars) on the basis of such bid and the average annual net interest rate (expressed as a percentage) and an estimate of the TIC (as hereinafter defined) on the basis of such bid.  Each bidder shall certify to the Issuer the correctness of the information contained on the Official Bid Form; the Issuer will be entitled to rely on such certification.  Each bidder agrees that, if it is awarded the Bonds, it will provide the certification as to initial offering prices described under the caption “Certification as to Offering Price” in this Notice.

 

            Good Faith Deposit.  Each bid shall be accompanied by a good faith deposit (the Deposit”) in the amount of $58,000.00 payable to the order of the Issuer to secure the Issuer from any loss resulting from the failure of the bidder to comply with the terms of its bid.  The Deposit, which must be received by the Issuer or the Financial Advisor prior to the Submittal Hour, may be in the form of a:

 

(a)     certified or cashier’s check drawn on a bank located in the United States of America; or

 

(b)     financial surety bond as hereinafter described (the “Surety Bond”).

 

All Surety Bonds must be from an insurance or surety company rated “AA” by Standard and Poor’s Ratings Services, a division of The McGraw Hill Companies, Inc., or “Aa” by Moody’s Investors Service and licensed to issue such a surety bond in the State of Kansas.  The Surety Bond must identify each bidder whose deposit is guaranteed by such Surety Bond.  Good Faith checks submitted by unsuccessful bidders will be returned in the same manner received on the Sale Date.  If the sale of the Bonds is awarded to a bidder utilizing a Surety Bond, the successful bidder is required to submit to the Issuer a cashier’s or certified check or wire transfer of immediately available federal funds to such financial institution requested by the Issuer, not later than 2:00 p.m., Central  Time on the next business day following the Sale Date.  If such funds are not received by such time, the Surety Bond may be drawn on by the Issuer to satisfy the Deposit requirement.  No interest on the Deposit will be paid by the Issuer.  If a bid is accepted, the Deposit, or the proceeds thereof, will be held by the Issuer until the successful bidder has complied with all of the terms and conditions of this Notice at which time the amount of said Deposit shall be returned to the successful bidder or deducted from the purchase price at the option of the Issuer.  If a bid is accepted but the Issuer fails to deliver the Bonds to the successful bidder in accordance with the terms and conditions of this Notice, said Deposit, or the proceeds thereof, will be returned to the successful bidder.  If a bid is accepted but the bidder defaults in the performance of any of the terms and conditions of this Notice, the proceeds of such Deposit will be retained by the Issuer as and for liquidated damages.

 

            Basis of Award.  Subject to the timely receipt of the Deposit set forth above, the award of the Bonds will be made on the basis of the lowest true interest cost (“TIC”), which will be determined as follows:  the TIC is the discount rate (expressed as a per annum percentage rate) which, when used in computing the present value of all payments of principal and interest to be paid on the Bonds, from the payment dates to the Dated Date, produces an amount equal to the price bid, including any adjustments for premium [or discount,] if any.  Present value will be computed on the basis of semiannual compounding and a 360-day year of twelve 30-day months.  Bidders are requested to provide a calculation of the TIC for the Bonds on the Official Bid Form, computed as specified herein on the basis of their respective bids, which shall be considered as informative only and not binding on either the Issuer or the bidder.  The Issuer will verify the TIC based on such bids. If there is any discrepancy between the TIC specified and the bid price and interest rates specified, the specified bid price and interest rates shall govern and the TIC specified in the bid shall be adjusted accordingly.  If two or more proper bids providing for identical amounts for the lowest TIC are received, the governing body of the Issuer will determine which bid, if any, will be accepted, and its determination is final.

 

            The Issuer reserves the right to reject any and/or all bids and to waive any irregularities in a submitted bid.  Any bid received after the Submittal Hour on the Sale Date will be returned to the bidder.  Any disputes arising hereunder shall be governed by the laws of Kansas, and any party submitting a bid agrees to be subject to jurisdiction and venue of the federal and state courts within Kansas with regard to such dispute. 

 

            The Issuer’s acceptance, including electronic acceptance through PARITY^®, of the successful bidder’s proposal for the purchase of the Bonds in accordance with this Notice of Bond Sale shall constitute a bond purchase agreement between the Issuer and the successful bidder for purposes of the laws of Kansas.

 

            Bond Ratings.  The outstanding general obligation bonds of the Issuer are rated “_____” by Moody’s Investors Service.  The Issuer has applied to Moody’s Investors Service for a rating on the Bonds herein offered for sale.

 

            Optional Bond Insurance.  The Issuer has not applied for any policy of municipal bond insurance with respect to the Bonds.  If the Bonds qualify for municipal bond insurance, and any bidder desires to purchase such policy, such indication and the name of the desired insurer must be set forth on the bidder’s Official Bid Form.  The Issuer specifically reserves the right to reject any bid specifying municipal bond insurance, even though such bid may result in the lowest TIC to the Issuer.  All costs associated with the issuance of such policy and associated ratings and expenses (other than the independent rating requested by the Issuer) shall be paid by the successful bidder.  Failure of the municipal bond insurer to issue the policy after the award of the Bonds shall not constitute cause for failure or refusal by the successful bidder to accept delivery of the Bonds.

 

            CUSIP Numbers.  CUSIP identification numbers will be assigned and printed on the Bonds, but neither the failure to print such number on any Bond nor any error with respect thereto shall constitute cause for failure or refusal by the purchaser thereof to accept delivery of and pay for the Bonds in accordance with the terms of this Notice.  All expenses in relation to the assignment and printing of CUSIP numbers on the Bonds will be paid by the Issuer.

 

            Delivery and Payment.  The Issuer will pay for printing the Bonds and will deliver the Bonds properly prepared, executed and registered without cost on or about [_______ ___, 2010] (the “Closing Date”), to DTC for the account of the successful bidder.  The successful bidder will be furnished with a certified transcript of the proceedings evidencing the authorization and issuance of the Bonds and the usual closing documents, including a certificate that there is no litigation pending or threatened at the time of delivery of the Bonds affecting their validity and a certificate regarding the completeness and accuracy of the Official Statement.  Payment for the Bonds shall be made in federal reserve funds, immediately available for use by the Issuer.  The Issuer will deliver one Bond of each maturity registered in the nominee name of DTC.

 

            Certification as to Offering Prices.  To provide the Issuer with information necessary for compliance with Section 148 of the Internal Revenue Code of 1986, as amended (the “Code”), the successful bidder will be required to complete, execute and deliver to the Issuer prior to the delivery of the Bonds, a certificate regarding the “issue price” of the Bonds (as defined in Section 148 of the Code), reflecting the initial offering prices (excluding accrued interest and expressed as dollar prices) at which a substantial amount (i.e., 10% or more) of the Bonds of each maturity have been or are expected to be sold to the public.  The information necessary to complete such certificate shall be provided to the Issuer not more than 30 minutes after notification by the Issuer of the award of the Bonds to such successful bidder  The term “public” excludes bond houses, brokers or similar persons or organizations acting in the capacity of underwriters or wholesalers.  Such certificate shall state that 10% or more of the Bonds of each maturity have been or are expected to be sold to the public at prices no higher than such initial offering prices.  However, such certificate may indicate that the successful bidder will not offer the Bonds for sale to the public.

 

            Preliminary Official Statement and Official Statement.  The Issuer has prepared a Preliminary Official Statement dated DECEMBER 15, 2009, “deemed final” by the Issuer except for the omission of certain information as provided in Securities and Exchange Commission Rule 15c2-12, copies of which may be obtained from the Clerk.  Upon the sale of the Bonds, the Issuer will adopt the final Official Statement and will furnish the successful bidder, without cost, within seven business days of the acceptance of the successful bidder’s proposal, with a sufficient number of copies thereof, which may be in electronic format, in order for the successful bidder to comply with the requirements of Rule 15c2-12(b)(3) and (4) of the Securities and Exchange Commission and Rule G-32 of the Municipal Securities Rulemaking Board (jointly the “Rules”).  Additional copies may be ordered by the successful bidder at its expense.  The Issuer’s acceptance, including electronic acceptance through PARITY^®, of the successful bidder’s proposal for the purchase of the Bonds in accordance with this Notice of Bond Sale shall constitute a contract between the Issuer and the successful bidder for purposes of the Rules.

 

            Continuing Disclosure.  The Securities and Exchange Commission (the “SEC”) has promulgated amendments to its Rule 15c2-12 (the “Rule”) requiring continuous secondary market disclosure for certain issues.  In the Bond Resolution, the Issuer has covenanted to provide annually certain financial information and operating data and other information necessary to comply with the Rule, and to transmit the same to designated repositories and the Municipal Securities Rulemaking Board, as applicable.  This covenant is for the benefit of and is enforceable by any Registered Owner of the Bonds.  For further information, reference is made to the caption “CONTINUING DISCLOSURE” in the Preliminary Official Statement.

 

            Assessed Valuation and Indebtedness.  The total assessed valuation of the taxable tangible property within the Issuer for the year 2009, is as follows:

 

Equalized Assessed Valuation of      Taxable Tangible Property ......................................................	$
Tangible Valuation of Motor Vehicles...........................................
Equalized Assessed Tangible Valuation      for Computation of Bonded Debt Limitations.........................	$

 

            The total general obligation indebtedness of the Issuer as of the Dated Date, including the Bonds being sold, is $__________. 

 

            Legal Opinion.  The Bonds will be sold subject to the approving legal opinion of GILMORE & BELL, P.C., Kansas City, Missouri, Bond Counsel, which opinion will be furnished and paid for by the Issuer, will be printed on the Bonds, if the Bonds are printed, and will be delivered to the successful bidder when the Bonds are delivered.  Said opinion will also include the opinion of Bond Counsel relating to the exclusion of the interest on the Bonds from gross income for federal income tax purposes and from computation of Kansas adjusted gross income.  Reference is made to the Preliminary Official Statement for further discussion of federal and Kansas income tax matters relating to the interest on the Bonds.

 

            Additional Information.  Additional information regarding the Bonds may be obtained from the undersigned, at the addresses set forth below:

 

            DATED:  December 15, 2009.

 

                                                                                                CITY OF LAWRENCE, KANSAS

                                                                                                By        Jonathan M. Douglass, Clerk

 

Written and Facsimile Bid and Good Faith Deposit Delivery Address:

 

            Six East Sixth Street

            Lawrence, Kansas 66044

            Phone No. 785-832-3000

            Fax No.

            Email: 

 

 

SUMMARY NOTICE OF BOND SALE

 

$2,900,000

CITY OF LAWRENCE, KANSAS

GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2010-A

 

(GENERAL OBLIGATION BONDS PAYABLE FROM UNLIMITED AD VALOREM TAXES)

 

            Bids.  SUBJECT to the Notice of Bond Sale dated December 15, 2009, written and electronic bids will be received on behalf of the Clerk of the City of Lawrence, Kansas (the “Issuer”) in the case of written bids, at the address set forth below, and in the case of electronic bids, through PARITY^® until 11:00 a.m., Central Time, on [JANUARY ___, 2010] for the purchase of the above-referenced bonds (the “Bonds”).  No bid of less than [100%][___%] of the principal amount of the Bonds and accrued interest thereon to the date of delivery will be considered.]

            Bond Details.  The Bonds will consist of fully registered bonds in the denomination of $5,000 or any integral multiple thereof.  The Bonds will be dated January 15, 2010, and will become due on September 1 in the years as follows:

 

 

The Bonds will bear interest from the date thereof at rates to be determined when the Bonds are sold as hereinafter provided, which interest will be payable semiannually on March 1 and September 1 in each year, beginning on September 1, 2010.

            Book-Entry-Only System.  The Bonds shall be registered under a book-entry-only system administered through DTC.

            Paying Agent and Bond Registrar.  Treasurer of the State of Kansas, Topeka, Kansas.

            Good Faith Deposit.  Each bid shall be accompanied by a good faith deposit in the form of a cashier’s or certified check drawn on a bank located in the United States of America, a qualified financial surety bond in the amount of $58,000.00.

            Delivery.  The Issuer will pay for printing the Bonds and will deliver the same properly prepared, executed and registered without cost to the successful bidder on or about [_______ ___, 2010], to DTC for the account of the successful bidder.

            Assessed Valuation and Indebtedness.  The Equalized Assessed Tangible Valuation for Computation of Bonded Debt Limitations for the year 2009, is $____________.  The total general obligation indebtedness of the Issuer as of the Dated Date, including the Bonds being sold, is $___________.

            Approval of Bonds.  The Bonds will be sold subject to the legal opinion of GILMORE & BELL, P.C., Kansas City, Missouri, Bond Counsel, whose approving legal opinion as to the validity of the Bonds will be furnished and paid for by the Issuer, printed on the Bonds and delivered to the successful bidder as and when the Bonds are delivered.

            Additional Information.  Additional information regarding the Bonds may be obtained from the undersigned, at the address set forth below:

            DATED:  December 15, 2009.

 

Written and Facsimile Bid and Good Faith Deposit Delivery Address:

 

            Jonathan M. Douglass, Clerk

            Six East Sixth Street

            Lawrence, Kansas 66044

            Phone No. 785-832-3000

            Fax No.

            Email: 

 

 

 

KANSAS REGISTER

                                                                                                                                       DOCUMENT NO. _______

(Above space for Register Office Use)

 

Submission Form

Municipal Bond Sale Notice

(K.S.A. 10-106 as amended)

 

TITLE OF                    SUMMARY NOTICE OF BOND SALE

 

DOCUMENT               Re:       City of Lawrence, Kansas, General Obligation Improvement Bonds, Series 2010-A, Dated January 15, 2010.

 

NUMBER OF PAGES _____                           DESIRED PUBLICATION DATE _____________________

 

                                    BILL TO:                     Jonathan M. Douglass, Clerk

                                                                        Six East Sixth Street, Lawrence, Kansas 66044

 

                                                            Please forward 3 Affidavits of Publication of same to Ms. Gina Riekhof, Gilmore & Bell, P.C., 2405 Grand Blvd., Suite 1100, Kansas City, Missouri 64108 at your earliest opportunity.

 

Any questions regarding this document should be directed to:

 

            NAME                                                          PHONE                       (816) 221-1000_________

 

Certification

 

            I hereby certify that I have reviewed the attached and herein described document, and that it conforms to all applicable Kansas Register publication guidelines.  I further certify that submission of this item for publication in the Kansas Register is authorized by the municipality which has issued the notice.

 

                                                                                                                                               

                                                                                    Authorized Signature

 

                                                                                                                                               

                                                                                    Typed Name of Signer

 

                                                                                                                                               

                                                                                    Position

 

TRANSMIT TO:          Kansas Register; Secretary of State; State Capitol, Topeka, KS  66612

                 PHONE:  (785) 296-3489; FAX:  (785) 291-3051; EMAIL:  nancyr@kssos.org

                                      THIS SPACE FOR REGISTER OFFICE USE ONLY

!OFFICIAL BID FORM

PROPOSAL FOR THE PURCHASE OF CITY OF LAWRENCE, KANSAS

GENERAL OBLIGATION IMPROVEMENT BONDS

 

TO:          Jonathan M. Douglass, Clerk                                                                                                                                                  [January ___, 2010]

                City of Lawrence, Kansas

 

                For $2,900,000 principal amount of General Obligation Improvement Bonds, Series 2010-A, of the City of Lawrence, Kansas, to be dated January 15, 2010, as described in your Notice of Bond Sale dated December 15, 2009, said Bonds to bear interest as follows:

 

 

the undersigned will pay the par value of the Bonds plus accrued interest to the date of delivery, [less a total discount,] plus a total premium in the amount set forth below.

 

            Total interest cost to maturity at the rates specified ........................................................................................ $_______________________

            [Discount (if any)[not to exceed _______%].................................................................................................. $______________________]

            Premium (if any) .......................................................................................................................................... ($______________________)

            Net interest cost.............................................................................................................................................. $_______________________

            Average annual net interest rate .......................................................................................................................................... ____________%

            True Interest Cost .............................................................................................................................................................. ____________%

 

o        The Bidder elects to have the following Term Bonds: 

Maturity Date	Years	Amount
September 1, ____	_________ to _________	$______________
September 1, ____	_________ to _________	$______________

                                subject to mandatory redemption requirements in the amounts and at the times shown above.

 

        This proposal is subject to all terms and conditions contained in said Notice of Bond Sale, and if the undersigned is the successful bidder, the undersigned will comply with all of the provisions contained in said Notice.  A cashier’s or certified check or a qualified financial surety bond in the amount of $58,000.00 payable to the order of the Issuer, accompanies this proposal as an evidence of good faith.  The acceptance of this proposal by the Issuer shall constitute a contract between the Issuer and the successful bidder for purposes of complying with Rule 15c2-12 of the Securities and Exchange Commission and a bond purchase agreement for purposes of the laws of Kansas.

                                                                                                                                                        Submitted by:_________________________________

 

[LIST ACCOUNT MEMBERS ON REVERSE]                                                                                         By:__________________________________

                                                                                                                                                        Telephone No.(____)___________________________

                                                                                                          ACCEPTANCE

                Pursuant to action duly taken by the Governing Body of the City of Lawrence, Kansas, the above proposal is hereby accepted on [January ___, 2010].

 

Attest:

 

___________________________________________                                                                    ___________________________________________

                                Clerk                                                                                                                                       Mayor

 

NOTE:    No additions or alterations in the above proposal form shall be made, and any erasures may cause rejection of any bid.  Sealed bids may be filed with the Clerk, Jonathan M. Douglass, Six East Sixth Street, Lawrence, Kansas 66044, facsimile bids may be filed with the Clerk, Fax No. ____________, and electronic bids may be submitted via PARITY^®, at or prior to 11:00 a.m., Central  Time, on [January ___, 2010].  Any bid received after such time will be returned to the bidder.