Minutes 10/01/1985 - Laserfiche WebLink

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October 1, 1985 The Public Utility Bonds are to be issued for the purpose of providing funds to pay the cost of capital improvements, extensions and additions to the City's revenue-producing water and sewerage system. The full faith and credit of the City shall be pledged to the payment of the principal of and interest on such Bonds as the same become due. For the payment of such principal and interest, the City has power and will be obligated to levy ad valorem taxes without limitation of rate or amount upon all property within the City subject to taxation by the City, if the revenues of the undertaking consistin9 of the water and sewerage system of the City are insufficient for that purpose. Bidders shall specify the rate or rates of interest per annum to be borne by the Bonds, to be expressed in multiples of one-eighth (1/8) or one-twentieth (1/20) of one percent (1%). Bidders shall not be restricted as to the number of rates which may be named, but the difference between the highest and the lowest interest rates specified shall not exceed two percent (2%). All Bonds of both issues maturing on the same date must bear interest at the same single rate from their date to such maturity date. Unless al!proposals are re3ected the Bonds will be awarded on October 29, 1985, to the responsible bidder offering to purchase_ the Bonds at the lowest net interest cost to the City, to be computed by ~ determining the interest to maturity at the rate or rates specified by the bidder and deducting therefrom any premium offered. No bid will be considered for less than all of the Bonds of both issues, or for a price less than par and accrued interest from the date of the Bonds to the date of their~delivery. The right is reserved to reject any and all bids and to waive irregularities or informalities in any bid. Proposals must be unconditional, must be on the City's proposal form prepared for the purpose, must be submitted in sealed envelopes marked "Proposal for City of Portsmouth, Virginia, Bonds" addressed to the undersigned and must be accompanied by a certified or bank cashier's check in the amount of $600,000 payable to the order of the City of Portsmouth, Virginia, as a guarantee of good faith on the part of the bidder. No interest will be paid by the City on such good faith deposit. Good faith checks of unsuccessful bidders will be promptly returned to the representatives thereof. The good faith check of the successful bidder will be deposited by the City and the proceeds thereof credited against the purchase price due for the Bonds upon their delivery or retained as and for liquidated damages in the event the successful bidder fails to take up and pay for the Bonds in accordance with its bid. The Bonds will be printed at the expense of the City. Delivery of the Bonds~ properly executed, and the usual closing papers, including a certificate that no litigation is pending affecting the validity of the Bonds, will be made to the successful bidder in New York, New York, on November 20, 1985, or as soon thereafter as the Bonds may be prepared. Payment of the balance of the purchase price, including any premium offered, must be made in Federal Funds. The successful bidder shall deliver written instructions to the Registrar, not less than five business days prior to the scheduled delivery of the Bonds, as to the manner in which the Bonds shall be registered at delivery, including the name and address of each registered holder and, if a single registered holder shall require more than one Bond of any maturity, the number and amount of Bonds of such maturity to be registered to such registered holder. In the absence of instructions, Bonds will be registered in the name of the successful bidder. It is anticipated that CUSIP identification numbers will be printed on the Bonds, but neither the failure to print any such number on any Bond nor any error or omission with respect thereto shall constitute cause for failure or refusal by the successful bidder for the Bonds to accept delivery Of' and pay for the Bonds in accordance with the terms of its proposal. No CUSIP identification number shall constitute or be deemed-to be a part of any Bond or a part of the contract evidenced thereby and no liability shall attach to the City or any of its officers or agents because of or on