19710316 r-71-7 R-71-7
A RESOLUTION FIXING TIIE tqEDEMPTION
PROVISIONS AND PROVIDING FOR THE
SALE OF $1,500,000 SEWER BONDS OF
TItE CITY OF FAiRFAX, VIRGINIA.
WHEREAS, the City Council of the City of Fairfax, virginia,
has heretofore adopted an ordinance providing for the issuance of
$1,500,000 Sewer Bonds of the City of Fairfax, Virginia; and
WHEREAS, the City Council deems it advisable to sell said
bonds at this time; now, therefore,
TIIE COUNCIL OF THE CITY OF FAIRFAX HEREBY kESOL¥ne:
Section i. The $1,500,000 Sewer BOnds of the City of
Fairfax at the time outstanding which mature after Mav 2, 1980
o~ redeemed prior to their respective ~
ma~urztzes, at the option of
the City, from any moneys that may be made available for such pur-
pose, either in whole on any date not earlier than ~.~ay i, 1980 or
in .~ .... in the inverse order of their numbers on any interest pav-
ment date not. earlier than May 1 1980, at the principal -~- ~
the bonds to be redeemed, together with the interest accrued thereon
to the date fixed for redemption, plus a premium of 3% of ~-- '
~ucn turin-
c/pal amount if redeened prior to May 1, 1983, 2 1/2% if redeemed
thereafter and prior to May 1, 1986, 2°-
-~ if redeemed thereafter and
prior to May 1, 1989, 1 1/2% if redeemed thereafter and prior to
May 1, 1992, 1% if redeemed thereafter and prior to May 1, 1995 and
wJ. thout premium if redeemed thereafter.
At lea~t thirty (30) days before the .redemption date, a
notice signed in the name of the City of Fairfaz, by the Mayor,
shall be (a) published once in a newspaper of general circulation
in the City of Fairfax, and in a daily newspaper of general circula-
tion or a financial journal published in the Borough of ~.~anhattan,
City and State of New York, (b) filed at each of the places at which
said bonds and the interest thereon are payable and (c) mailed,
postage prepaid, to all registered owners of bonds to be redeemed at
their addresses as they appear on the registration books of the City,
but failure so to mail any such notice shall not affect the validity
of the proceedings for such redemption. Each such notice shall set
forth the date fixed for redemption, the redemption price to be paid
and, if less than all of the bonds then outstanding shall be called
for redemption, the maturities and numbers of such bonds.
On the date so designated for redemotion, no-tic:e having
Eeen published and filed in the manner and un'er the conditions
hereinabove provided and moneys for the payment of the '~
~.~ .....
price being held by the paying agents, the '
oon~s so called for
R-71-7
redemption shall become and be due and payable at the redemption
price provided for redemption of such bonds on such date, interest
on the bonds so called for redemption shall cease to accrue and the
coupons for interest thereon payable subsequent to the reder~ption
date shall be void. All unpaid coupons which appertain to bonds so
called for redemption and wl~ich shall have become payable on or prior
to the date of redemption designated in. such notice shall continue to
be payable to the bearers severally and respectively upon the presenta-
tion and surrender of such coupons. Bonds so called for redemption
and all unmatured coupons appertaining thereto shall be cancelled
upon the surrender thereof.
Section 2. The City Clerk of Fairfax is hereby authorized
and directed to cause a notice calling for bids for $1,500,000 Sewer
Nonds of the City of Fairfax, Virginia, to be published once in the
Virginia Sentinel a newspaper having a general circulation in tNe
City of Fairfax, and once in The Daily Bond Buyer, a publication
carrying municipal bond notices and devoted primarily to financial
news and to the subject of State and municipal bonds published and
circulating in the City of New York, New York, said publications to
be at least ten days prior to the date fixed for the receipt of bids.
Said notice shall be in substantially the following form:
NOTICE OF SALE
$1,500,000 SEWER BONDS
OF THE CITY OF FAIRPAX, VIRGINIA
Dated May 1, 1971
Sealed bids will be received by the City Council of the
City of Fairfax, Virginia, in care of the undersigned, at the City
Hall, Fairfax, Virginia, until 12 o'clock Noon, Eastern Standard
Time,
April 6, 1971
such bid~ to be publicly opened and read at such time and place on
said day for $1,500,000 Sewer Bonds of the City of Fairfax, Virginia,
dated May 1, 1971, and maturing (subject to tile right of prior re-
demption) on the 1st day of May in the following years and in the
following amounts, respectively:
Year of Principal Year of Principal
· Maturity · Amount Maturity Amount
1974 $ 30.,000 1986 $ 65,000
1975 35,000 1987 70,000
1976 35,000'. ~ 1988 70,000
i977 40,000 1989 75,000
!978 40,000 1990 80,000
1.979 45,000 1991 85,000
1980 45,000 1992 90,000
1881 50,000 1993 95,000
1982 50,000 1994 100,000
1.983 55,000 1995 110,000
198': 60,000 1996 I15,000
1985 60,000
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Denomination $5,000; principal and semi-annual interest
(M and N !) payable at The National Bank of Fairfax, in the City
of Fairfax, Virginia; or at The Chase Manhattan Bank (National
Association), in the Borough of Manhattan, City and State of New
York; coupon bonds registrable as to principal alone; general
obligations of the City; unlimited tax.
The bonds at the time outstanding which mature after
May 1, 1980 may be redeemed prior to their respective maturities,
at the option of the City, from any moneys that may be made avail-
able for such purpose, either in whole on any date not earlier than
May 1, 1980 or in part, in the inverse order of their numbers on any
interest payment date not earlier than May 1, 1980, at the principal
amount of the bonds to be redeemed, together with the interest accrued
thereon to the date fixed for redemption, plus a premium of 3% of such
principal amount if redeemed prior to May 1, 1983, 2 1/2% if redeemed
thereafter and prior to May 1, 1986, 2% if redeemed thereafter and
prior to May 1, 1989, 1 1/2% if redeemed thereafter and prior to May 1,
1992, 1% if redeemed thereafter and prior to May 1, 1995 and without
premium if redeemed thereafter.
Bidders are requested to name the interest rate or rates,
not exceeding 8% per annum, in multiples of 1/8 or 1/10 of i%, 'the
highest rate to be named to be not more than twice the lowest rate
to be named. Each bidder must specify in his bid the amount and the
maturities of the bonds of each rate, and the bonds maturing on the
same date must bear interest at the same rate. The interest on any
bond payable on any interest payment date shall be represented by a
single coupon. No bid for less than par and accrued interest or for
less than all of the bonds offered will be entertained. The bonds
will be awarded to the bidder offering to purchase the bonds at the
lowest interest cost to the City, such cost to be determined by
deducting the total amount of any premium bid from the aggregate
amount of interest on all of the bonds from their date until their
respective maturities. .
Each bid muSt be submitted on a form to be furnished by
the undersigned, must be enclosed in a sealed envelope marked "Bid
fcr$1,500,000 Sewer Bonds of the City of Fairfax, Virginia", and
must be accompanied by a certified or bank cashier's or treasurer's
check payable to the order of the City Treasurer of the City of
Fairfax, Virginia, for $30,000, on which no interest will be allowed.
~ard or rejection of bids will be made by the City Council of the
City of Fairfax, Virginia, on the date above stated for the receipt
of bids, and the checks of unsuccessful bidders will be returned
ir~nediately. 'The check of the successful bidder will be held un-
cashed as security for the performance of his bid, but, in the event
the successful bidder shall fail to comply with the terms of his bid,
the check may then be cashed and the proceeds thereof retained as and
for full liquidated damages. The bonds will be delivered on or about
~-~ay 4, 1971 in the City of'New York, New York, against payment there-
for by a certified or bank cashier's or treasurer's check drawn on a
New York City bank or trust company.
The unqualified approving opinion of Mitchell, Petty &
Shetterly, New York City, will be furnished without cost to the
purchasers and will be printed upon the bonds. There will also
be furnished the usual closing papers.
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· · ~ R-71-7
Further information will be furnished upon application
to I.loyd H. Prosise, Comptroller of the City of Fairfax, Fairfax,
Virginia 22030 or to Alex Brown & Sons, 135 East Baltimore Street,
Baltimore, Maryland 21203, Financial Consultants to the City.
The right to reject any or all bids is reserved.
DOrothy L. Wilkinson
City Clerk
Section 3. The form referred to in the Notice of Sale
set forth in Section 2 above and on which all bids are required
to be made shall be substantially as follows:
BiD FOR $1,500,000 SEWER BONDS OF THE CITY OF FAIRFAX, VIRGINIA
April 6, 1971
City Council of the City of Fairfax, Virginia
c/o City Clerk, City Hall
Fairfax, Virginia
Sirs:
We make the following bid for the bonds of the City of
Fairfax, Virginia, mentioned below and described in the Notice of
Sale, which Notice is hereby made a part of this bid, this bid
being for all of said bonds and not for less than all:
For $1,500,000 Sewer Bonds of the City of Fairfax, Virginia,
dated May 1, 1971, and maturing on May 1 in each year and bearing
interest as follows:
Year of Principal Interest Year of Principal Interest
Maturity Amount Rate Maturity Amount Rate
1974 $ 30,000 % 1986 $ 65,000
1975 35,000 1987 70,000
1976 35,000 1988 70,000
1977 40,000 1989 75,000
1978 40,000 1990 80,000
1979 45,000 1991 85,000
!9~0 45;000 1992 90,000
198! 50',000 1993 .95,000
1982 50,000 1994 100,000
1983 55,000 1995 110,000
1984 60,000 1996 115,000
1985 60,000 ~'
we wili pay
Dotlars ( $
). We will also pay accrued interest from
their date to date of delivery and will accept delivery in New York
C~_ty on or about May 4, 1971.
.We enclose herewith a cerhified or bank cashier's or
trc~sure~'s check for $30,000 payable to the order of the City
?rca~urer of the City of Fairfax, Virginia, which check is to
applied in accordance with said Notice of Sale.
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The closing papers referred to in said Notice of Sale
are to include a certificate, dated as of the day of the delivery
of the bonds, stating that there is no litigation pending or, to
the knowledge of the signer of such certificate, threatened af-
fecting the validity of the. bonds or the means provided for their
payment.
(No addition or alteration, except as pro-
vided above, is to be made to this bid.)
(NOTE: The average net interest cost rate
for the above bid, which is st'ated for
information only and is not a part of the
above bid, is %.)
Section 4. The officers and agents of the City of Fairfax,
Virginia, are hereby authorized and directed to do all the acts and
things required of them by the bonds and by this resolution for the
full, punctual and complete performance of all of the terms, covenants,
provisions and agreements contained in the bo~ds and in this resolu-
tion.
Adopted: March 16, 1971.
Mayor
Attest:
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