Section 105-118; Res. 44-04; Authorizing the City of Columbia, Missouri, to take certain preliminary actions in connection with the issuance and sale of approximately $17,500,000 principal amount of Water and Electric System Improvement Revenue Bond


Council Bill No.          R 44-04          


A RESOLUTION

authorizing the City of Columbia, Missouri, to take certain preliminary actions in
connection with the issuance and sale of approximately $17,500,000 principal amount
of Water and Electric System Improvement Revenue Bonds, 2004 Series A, of the
City of Columbia, Missouri.

    WHEREAS, the City of Columbia, Missouri (the “City”), is a municipal corporation and political subdivision duly organized and existing under the Constitution and the laws of the State of Missouri and its home rule charter; and
WHEREAS, the City Council of the City has heretofore determined and does now find and determine that it is necessary and desirable and in the best interest of the City to issue its Water and Electric System Improvement Revenue Bonds, 2004 Series A, in the aggregate principal amount of approximately $17,500,000 (the “Bonds”) for the purpose of providing funds for extending, expanding, improving, repairing, replacing and equipping the City-owned water works and electric systems and refunding certain outstanding bonds of the City as herein described; and

    WHEREAS, the City Council of the City further finds and determines that it is necessary and desirable in connection with the issuance of the Bonds that the City take certain actions and approve the execution of certain documents as herein provided.

    NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF COLUMBIA, MISSOURI, AS FOLLOWS:

    SECTION 1.    Financial Advisor and Bond Counsel.  The City Manager is authorized to retain the services of A.G. Edwards & Sons, Inc., St. Louis, Missouri, as the Financial Advisor to the City (the  “Financial Advisor”) and Sonnenschein Nath & Rosenthal LLP, as Bond Counsel to the City (“Bond Counsel”).

    SECTION 2.    Competitive Public Sale.  The Director of Finance and other officers and representatives of the City, in conjunction with the Financial Advisor and Bond Counsel, are hereby authorized to conduct a competitive public sale of the Bonds and in connection therewith to solicit bids for the purchase of the Bonds from investment banking firms and other financial institutions (the “Underwriters”) located throughout the United States.

    SECTION 3.    Selection of Underwriters.  The Director of Finance and other officers and representatives of the City are hereby authorized to take such further action to proceed with such financing including working with the Underwriters submitting the best bid as a result of the competitive public sale of the Bonds and to enter into a contract for the sale of the Bonds with such Underwriters, subject to approval of Bond Counsel and the City Counselor, and based upon recommendation of the City’s Financial Advisor.

    SECTION 4.    Ratings.  The officers of the City are hereby authorized to apply to rating agencies, including Standard & Poor’s Rating Services  and Moody’s Investors Service, for a rating relating to the Bonds.
    SECTION 5.    Bond Insurance.  The officers of the City are hereby authorized to make application to a bond insurance company for the issuance of a bond insurance policy guaranteeing the timely payment of the principal of and interest on the Bonds and to enter into a commitment letter for such bond insurance if it would result in overall debt service savings on the Bonds.

    SECTION 6.    Official Statement.  The officers of the City are hereby authorized, in conjunction with the Financial Advisor and Bond Counsel, to prepare an Official Statement relating to the Bonds and to use such Official Statement in connection with the sale of the Bonds.

    SECTION 7.    Issuance of the Bonds.  The terms of the proposed financing and the Bonds shall be authorized by Ordinance of the City Council prior to the issuance and delivery of the Bonds.

    SECTION 8.    Further Authorization.  The Director of Finance and other officers and representatives of the City are hereby authorized and empowered to do all such acts and things and to execute, acknowledge and deliver all such documents as may in her or their discretion be deemed necessary or desirable in order to carry out or comply with the terms and provisions of this Resolution in connection with the structure and sale of the Bonds.  All of the acts and undertakings of such officers which are in conformity with the intent and purposes of this Resolution, whether heretofore or hereafter taken or done shall be and the same are hereby in all respects, ratified, confirmed and approved.





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    ADOPTED this 1st day of March, 2004.