1981-03-16 - Resolution 1981-12 - AUTHORIZING SOLICITATION OF BIDS FOR THE PURCHASE OF $1,050,000 OF CORPORATE PURPOSE BONDS, SERIES 1981 OF THE VILLAGE OF BUFFALO GROVE, COOK AND LAKE COUNTIES, ILLINOIS RESOLUTION No. 81 - 12
RESOLUTION AUTHORIZING SOLICITATION OF BIDS FOR THE
PURCHASE OF $1 ,050,000 OF CORPORATE PURPOSE BONDS,
SERIES 1981 , OF THE VILLAGE OF BUFFALO GROVE, COOK
AND LAKE COUNTIES, ILLINOIS
BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE
VILLAGE OF BUFFALO GROVE, COOK AND LAKE COUNTIES, ILLINOIS, AS FOLLOWS:
SECTION 1 . It is found and declared by the Board of Trustees
of the Village of Buffalo Grove, Cook and Lake Counties, Illinois
(the "Village") , as follows:
(a) The Board of Trustees of the Village has heretofore found
it advisable and in the best interests of the Village to
acquire and operate a common source of supply of Lake
Michigan water through the Northwest Water Commission
(the "Commission") .
(b) The Commission is currently engaged in development
activities necessary to procure and establish a common
source of supply of Lake Michigan water for the Village
and other proposed users and in connection therewith has
incurred and will further incur expenses for preliminary
development costs, including (but not limited to) costs
of plans and feasibility studies; legal , engineering and
financial consultant fees and costs ; costs of right-of-way
and land acquisition; and costs of administration.
(c) The Village has previously determined and agreed , in the
exercise of its home rule powers and its power and authority
under the intergovernmental cooperation provisions of
Article VII , Section 10 of the 1970 Illinois Constitution
and the Illinois Intergovernmental Cooperation Act (I11 . Rev.
Stat. ch. 127, P. 741 et seq.) , and in consideration of the
Village's participation in the activities of the Commission,
to obligate itself for a proportionate share of the Commission 's
development costs .
(d) The Commission has caused to be prepared an initial "Northwest
Water Commission Financing Report", as supplemented through
the date of this resolution (the "Report") , which Report sets
forth a program by which the Commission and member munici-
palaties may proceed with the financing of the development of
a common source of supply of Lake Michigan water to member
municipalities and others , including the acquisition and
construction of the necessary facilities. The Commission
has formally accepted and approved the substance of the interim
financing plan embodied in the Report and has approved in
concept the program for permanent financing set forth therein.
The President and Board of Trustees of the Village have
previously accepted and approved the substance of the interim
financing plan embodied in the Report as reflected in
Ordinance No. 81-4 of the Village Board adopted on February 23,
1981 .
(e) Pursuant to the basic financing plan embodied in the Report,
as from time to time modified or amended (formally or
informally) , the Village (and other member municipalities)
will now advance certain funds to the Commission to provide
interim financing for the preliminary, pre-construction costs
of the project referred to in paragraph (b) above. The amount
of funds expected to be required so to be advanced by the
Village to the Commission in accordance with such plan,
together with related costs to the Village including financing
costs , is $1 ,050,000.
(f) The Village does not have any funds on hand or available from
any source with which to make such advance to the Commission
and pay its own costs in connection therewith, and the borrowing
of the sum of $1 ,050,000 and the issuance of general obligation
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corporate purpose bonds of the Village in that amount is
necessary for the welfare of the government and affairs of
the Village, is for a proper public purpose of the Village
and is in the public interest.
(g) It is necessary now, in order to effect the sale of such
general obligation bonds of the Village, to provide for the
solicitation of bids for the purchase of such bonds and to
provide for the preparation and distribution of a Notice of
Sale and Official Statement relating thereto.
SECTION 2. Sealed bids for the purchase of $1 ,050,000 aggregate
principal amount of Corporate Purpose Bonds, Series 1981 , of the Village
(the "Bonds") , shall be received by the Village until 12:00 noon, Chicago
Time, on April 13, 1981 , and all bids so received shall at that time be
publicly opened and read, all at the time and place and in the manner
specified in the Notice of Sale pertaining to the Bonds. The award of the
sale of the Bonds will be made at the special meeting of the President and
Board of Trustees of the Village to be held on April 13, 1981 .
SECTION 3. A draft Notice of Sale pertaining to the Bonds has
been prepared by R. V. Norene & Associates, Inc. , the financial advisor for
the Village, which draft is attached to this resolution as Exhibit A. The
maturity schedule for the Bonds contained in that draft is approved. R. V.
Norene & Associates , Inc. , is authorized and directed to publish, mail and/or
distribute to potential bidders for the Bonds the Notice of Sale in substantially
the form attached as Exhibit A (or a summary thereof) and also to prepare and
distribute an Official Statement pertaining to the Bonds.
SECTION 4. This resolution is effective upon its adoption and approval .
AYES: 6 - Marienthal , Stone, O' Reilly, Hartstein, Kavitt , Gerschefske
NAYES: 0 - None
ABSENT: 0 - None
PASSED: 1a'cfi-16 , 1981 .
APPROVED: March 1-6= , 1981 .
ATTEST: - Village President
•
-Villag Clerk -
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OFFICIAL NOTICE OF SALE
$1,050,000
VILLAGE OF BUFFALO GROVE
Cook and Lake Counties, Illinois
CORPORATE PURPOSE BONDS, SERIES 1981
The Village of Buffalo Grove, Illinois will receive sealed bids for its
$1,050,000 Corporate Purpose Bonds, Series 1981 at the Northern Trust Company(Bond
Syndicate Room - 12th Floor) , 50 South LaSalle Street, Chicago, Illinois until
12:00 Noon, C.S.T. , Monday, April 13, 1981 at which time the bids will be publicly
opened and read. Award will be made or all bids rejected at the meeting of the
President and Board of Trustees on the date of sale.
These bonds are non-callable general obligations of the Village of Buffalo
Grove, Illinois payable both principal and interest from unlimited ad valorem
taxes to be levied on all taxable property within said Village. Bonds will be
coupon bonds registrable as to principal only in the denomination of $5,000.
Principal and semi-annual interest (June 1 and December 1) will be payable at
such bank or trust company as may be mutually agreed upon between the purchaser
and the Village. Bonds are dated April 1, 1981. First coupon due June 1, 1982.
MATURITIES-December 1
$50,000 1983 $ 75,000 1987 $100,000 1992
50,000 1984 75,000 1988 100,000 1993
50,000 1985 75,000 1989 100,000 1994
75,000 1986 100,000 1990 100,000 1995
100,000 1991
These bonds will be awarded to the best bidder determined upon the basis of
the lowest total interest at the rate or rates designated in said bid from April 1,
1981 to the respective maturity dates after deducting therefrom the premium bid.
Each bidder shall name a rate or rates of interest which the bonds are to bear and
each rate must be a multiple of one-quarter or one-tenth of one percent (1/4 or
1/10 of 1%) . Not more than one interest rate shall be specified for a single matu-
rity. Each interest payment will be evidenced by a single coupon on each bond.
The differential between the highest rate bid and the lowest rate bid shall not ex-
ceed 1%. Bids must be for all or none of the bonds, must be for not less than par
plus accrued interest to date of delivery and must be made upon the Official Bid
Form and delivered in a sealed envelope market "Bid for Bonds" at the time set out
above. The Village reserves the right to reject any or all bids, to determine the
best bid in its sole discretion and to waive any informality in any bid.
Each bid shall be accompanied by a certified or cashier's check on a solvent
bank or trust company for $21,000 payable to the Village Treasurer of the Village
of Buffalo Grove, Illinois, as evidence of good faith of the bidder. The check of
the successful bidder will be retained uncashed by the Village pending delivery of
the bonds. All other checks will be returned promptly. No interest will be allowed
on any checks. Should the successful bidder fail to take up and pay for the bonds
when tendered in accordance with his bid and this Notice, his check shall be cashed
by the Village and the proceeds retained as full and liquidated damages to the Vil-
lage caused by failure of the bidder to carry out his offer of purchase. Otherwise
his check will be returned uncashed at delivery or applied on the purchase price.
The bonds will be delivered to the successful purchaser against full payment in
immediately available funds as soon as they can be printed and executed, which is
expected to be within thirty days of the date of sale. Should delivery of these
bonds be delayed sixty days from the date of award for any reason except failure of
performance by the successful bidder, then the bidder may cancel his agreement to
purchase the bonds and receive back his check and thereafter his interest in and
liability for the bonds will cease.
The Village will deliver the bonds without expense to the purchaser in Chicago,
Illinois and will pay for the printing of the bonds and the bond attorney's opinion.
At the time of delivery the Village will furnish to the purchaser the written opin-
ion of Isham, Lincoln & Beale, Attorneys, Chicago, Illinois, evidencing the legal-
ity of the bonds, which will be printed on the reverse of each bond. The Village
will furnish the transcript of proceedings on which said opinion is based and a
certificate of no-litigation then pending affecting the legality of the bonds or
the right of the Village to issue them. Interest on the bonds is exempt, in the
opinion of counsel, from Federal Income Taxes under existing law.
"EXHIBIT A"
L/ \J
The Village has authorized the preparation of an Official Statement contain-
ing pertinent information relative to the Village and its finances. For copies of
that Statement or for any additional information, any prospective purchaser is re-
ferred to the undersigned at the Village Hall, 50 Raupp Boulevard, Buffalo Grove,
Illinois 60090 or the Municipal Finance Consultants to the Village, R.V. Norene &
Associates, Inc. , 1944 Burr Oak Drive, Glenview, Illinois 60025. Telephone: Area
312-998-9848.
/s/ William R. Balling
March 25, 1981 Village Manager