1982-11-15 - Resolution 1982-51 - AUTHORIZING SOLICITATION OF BIDS FOR THE PURCHASE OF $5,025.000 OF CORPORATE PURPOSE BONDS SERIES 1982-A RESOLUTION NO. 82- 51
RESOLUTION AUTHORIZING SOLICITATION OF BIDS FOR
THE PURCHASE OF $5, 025, 000 OF CORPORATE
PURPOSE BONDS, SERIES 1982-A 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) In order to accommodate Lake Michigan water
to be supplied through the Northwest Water Commission
and to better and expand the Village' s own water dis-
tribution system, various improvements and extensions
to the Village' s water distribution system are required.
These include, without limitation, the construction of
approximately 29,770 lineal feet of arterial water
mains and appurtenances in connection with such mains.
The costs of engineering, land acquisition and construction
of these improvements and extensions which will need to
be undertaken promptly is estimated to be $2, 800,000.
(b) In order to maintain and better the Village ' s
streets, various improvements to the Village' s streets
are required. These include, without limitation, the
resurfacing of certain streets within the Village identified
as the first phase in the Baxter and Woodman Engineering
Recommendations approved by the Village Board on
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November15. 1982. The costs of engineering, land
acquisition and construction of these street improvements
which will need to be undertaken promptly is estimated
to be $2,0 00, 000.
(c) It is necessary and in the best interests of
the Village to capitalize the interest to be due on
bonds issued to fund the Village' s water distribution
system improvements described in paragraph (a) above
and its street improvements described in paragraph (b)
above for the six month period from the date of issuance
through May 1, 1983 in order to avoid an increase in
tax rates during the construction of such improvements.
The sum so needed to be capitalized is estimated to be
$225, 000.
(d) The Village does not have sufficient funds on
hand or available from other sources with which (i)
to pay costs of engineering, land acquisition and
construction for the water distribution system improvements
described in paragraph (a) above and the street improve-
ments described in paragraph (b) above, (ii) to pay the
costs of capitalized interest on the bonds of the Village
to be issued to pay for such improvements as described
in paragraph (c) above, and (iii) to pay the Village' s
own costs in connection with those purposes and in
connection with the borrowing of money as authorized
by the Bond Ordinance. The borrowing of the sum of
$5, 025, 000 and the issuance of general obligation cor-
porate purpose bonds of the Village in that amount for
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the purpose of paying these various costs 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.
(e) 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 to these bonds.
• Section 2. Sealed bids for the purchase of $5,025, 000
aggregate principal amount of Corporate Purpose Bonds, Series
1982-A, of the Village (the "Bonds") , shall be received by
the Village until 12 :00 Noon, Chicago Time, on December 6,
1982, 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 regular
meeting of the President and Board of Trustees of the Village
to be held on December 6, 1982.
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
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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 for approval by the Village Manager an Official
Statement pertaining to the Bonds and to distribute the
Official Statement to the potential bidders.
Section 4. This resolution is effective upon its
adoption and approval.
PASSED by the President and Board of Trustees of
the Village of Buffalo Grove this 15th day of November, 1982.
illage Clerk
APPROVED by the President of the Village of
Buffalo Grove this 15th day of November, 1982.
AYES: 4 - Stone, Hartsteiti, Gerschefske, Schwartz
NAYES: 2 - Marienthal , O' Reilly
ABSENT: 0 - None
P ident of t
11Niq Tom' Bu falo Grove
ATTEST:
---7.7311,1aw clerk
`„/ EXHIBIT A
OFFICIAL NOTICE OF SALE
$5.025,000
VILLAGE OF BUFFALO GROVE
Cook and Lake Counties, Illinois
CORPORATE PURPOSE BONDS, SERIES 1982-A
The Village of Buffalo Grove, Illinois will receive sealed bids for its $5,025,000
Corporate Purpose Bonds, Series 1982-A at the Northern Trust Company (Bond Syndicate Room -
12th F000r), 50 South LaSalle Street, Chicago, Illinois until 12:00 Noon, C.S.T., Monday,
December 6, 1982 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 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 mutaully agreed upon between the
purchaser and the Village provided that the Village may name the paying agent if agreement is
not reached. A paying agent selected solely by the Village shall have'a capital and surplus
of $10,000,000 or more and a trust department regularly engaged in the business of acting as
paying agent for bonds.and coupons. Bonds are dated December 1, 1982. First coupon due June
1, 1983.
• MATURITIES - December 1
$275,000 1984 $400,000 1988 $600,000 1993
300,000 1985 425,000 1989 250,000 1994
325,000 1986 475,000 1990 275.000 1995
350,000 1987 525,000 1991 275,000 1996
550,000 1992
Bonds due December 1, 1984-1992 are not callable. Bonds due December 1, 1993-1996 are
callable in whole or in part and if in part, in the inverse order of maturity and within a
maturity by lot on interest payment dates beginning December 1, 1992 and thereafter at par
plus a premium of 1%, such premium reducing by 1/4 of 1% at each subsequent December 1. Notice
of redemption shall be given by publication at least once not less than 30 days prior to the
date of redemption in The Bond Buyer, or in the event it ceases to be published, then in a
financial journal published either in Chicago or New York.
�a
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 December 1, 1982 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 maturity. Each interest payment will be evidenced by a single
coupon on each bond. The differential between the highest rate bid and lowest rate bid shall
not exceed 2%. No rate shall exceed the lessor of 15% or 125% of The Bond Buyer 20 Bond Index
as published in the most recent edition of The Bond Buyer. 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 marked "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 $100,500 payable to the Village Treasurer of the Village of Buffalo Grove, Ill,
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 Village 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 on December 27, 1982. Should delivery of these bonds be delayed thirty 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.
•
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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 opinion of Isham, Lincoln &
Beale, Attorneys, Chicago, Illinois, evidencing the legality of the bonds. The Village will
furnish the transcript of proceedings on which said opinion is based and a certificate of
nolitigation 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 laws, rules, regulations and interpretations. Interest on the bonds is
not exempt from Illinois Income Taxes.
The Village has authorized the preparation of an Official Statement containing pertinent
information relative to the Village and its finances. For copies of that statement or for any
additional information, any prospective purchaser is referred 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., Lake and Waukegan Office Center,
Suite 215, 1701 Lake Avenue, Glenview, Illinois 60025 (312-998-9848).
•
/s/ William R. Balling
Village Manager
•
November 18, 1982
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TO: William R. Balling
FROM: William H. Brimm
DATE: November 5, 1982
SUBJECT: Resolution Authorizing Solicitation of Bids
Corporate Purpose Bonds - Series 1982-A
Attached for Village Board of Trustee approval at the November 15, 1982 meeting
_5l is a Resolution prepared by (sham, Lincoln & Beale authorizing the solicitation
of bids for the proposed December 6, 1982 sale of Corporate Purpose Bonds -
Series 1982-A. The total issue is $5,025,000 composed of approximately
$2,125,000 for street improvement purposes and $2,900,000 for water system
internal improvements including additional service tie-ins with the Northwest
Water Commission pipeline project. in each component of the total issue
is capitalized interest for the first six of the issue, up to May 1 , 1983.
This will permit partial abatement of any tax levies for the debt servicing
in the first year of the life of the bonds.
This Resolution is comparable to those drawn for the Series 1981 and Series
1982 Corporate Purpose Bonds except for amount, date, and purposes as defined.
Attached to the Resolution is the Official Notice of Sale as referenced in
Section 3. In addition, the recommended schedule for debt retirement is
attached, dated October 28, 1982.
The favorable acceptance of this Resolution on November 15, 1982 will be the
final legislation to be developed in order to submit our issue to the market
prior to bid opening,
William H. Brim