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City of North Augusta SOUTH CAROLINA
ORDER OF BUSINESS The special meeting of October 26, 1998, having been duly called and publicized, was called to order at 7:00 P. M. by Mayor Jones. Mayor Jones rendered the invocation and led in the Pledge of Allegiance. Members present were Mayor Jones and Councilmembers Baggott, Carpenter, McDowell, Mottel, and Smith. Councilmember Sullivan was out of town on business. Also in attendance were Charles B. Martin, City Administrator; Kelly F. Zier, City Attorney; John P. Potter, Director of Finance; and Leona J. Lewis, City Clerk.
ITEM 1. FINANCE: 1976 AND 1977 WATERWORKS AND SEWER SYSTEMS REVENUE BONDS - REDEMPTION - REVIEW BY MARGARET POPE, CITY’S BOND ATTORNEY. Mrs. Margaret Pope, of Sinkler & Boyd, the City’s bond attorney, reviewed with Council the proposed resolution and ordinance providing for redemption of the Series 1976 and the Series 1977 Bonds. Mrs. Pope also discussed with Council the procedure followed in soliciting bids, an analysis of the bids received, and her recommendation to accept the bid of NationsBank. The bid analysis follows:
1998 REFUNDING REVENUE BONDS COMPARISON OF BANKING PROPOSALS First Union NationsBank Four Scenarios Three Scenarios
ITEM 2. FINANCE: 1976 AND 1977 WATERWORKS AND SEWER SYSTEMS REVENUE BONDS - REDEMPTION - RESOLUTION. On motion by Councilmember Mottel, second by Councilmember McDowell, Council unanimously adopted a resolution authorizing the redemption of the Series 1976 and 1977 Bonds of the City of North Augusta’s Waterworks and Sewer Systems Revenue Bonds on December 1, 1998. The resolution text follows: RESOLUTION NO. 98-21 AUTHORIZING THE REDEMPTION OF THE SERIES 1976 AND SERIES 1977 REVENUE BONDS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH AUGUSTA, SOUTH CAROLINA, IN MEETING DULY ASSEMBLED:
ARTICLE I FINDINGS OF FACT As an incident to the adoption of this Resolution, the City Council of the City of North Augusta (the "Council"), the governing body of the City of North Augusta, South Carolina (the "City"), finds that the facts set forth in this Article exist and the statements made with respect thereto are true and correct: Section 1.01 Pursuant to an ordinance adopted on February 1, 1977 (herein, the "1976 Ordinance"), the City issued its $1,000,000 Waterworks and Sewer System Improvement Revenue Bonds (Second Lien), Series of 1976 (herein, the "1976 Bonds"), for the purpose of constructing and improving facilities of the waterworks and sewer system of the City (the "System"). There remains outstanding of the 1976 Bonds the principal amount of $400,000, which matures on June 1 of the following years and with the interest rates shown on the respective installments of principal: Due June 1 Principal Amount Interest Rate 1999 $50,000 6.00% 2000 50,000 6.00 2001 50,000 6.00 2002 50,000 6.00 2003 50,000 6.00 2004 50,000 6.00 2005 50,000 6.00 2006 50,000 6.00 Pursuant to Section 6.05 of the 1976 Ordinance, the 1976 Bonds now outstanding may be called for redemption as of December 1, 1998, at a price equal to 102% of the principal amount thereof. Section 2.01 Pursuant to an ordinance adopted on March 1, 1997 (herein, the "1977 Ordinance"), the City issued its $750,000 Waterworks and Sewer System Improvement Revenue Bonds (Second Lien), Series of 1977 (herein, the "1977 Bonds"), for the purpose of constructing and improving facilities of the System. There remains outstanding of the 1977 Bonds the principal amount of $125,000, which matures on June 1 of the following years and with the interest rates shown on the respective installments of principal: Due June 1 Principal Amount Interest Rate 1999 $60,000 6.60% 2000 65,000 6.60
Pursuant to Section 6.05 of the 1977 Ordinance, the 1977 Bonds now outstanding may be called for redemption as of December 1, 1998, at a price equal to 101% of the principal amount thereof. Section 1.03 On the basis of the foregoing, the Council has elected to irrevocably call for redemption on December 1, 1998, all outstanding maturities of the 1976 Bonds and all outstanding maturities of the 1977 Bonds. ARTICLE II REDEMPTION OF BONDS Section 2.01 The Council hereby irrevocably calls for redemption the outstanding principal amounts of each of the 1976 Bonds and the 1977 Bonds (collectively, the "Refunded Bonds") as of December 1, 1998. The Finance Director of the City (the "Finance Director") is hereby authorized and directed to give notice of redemption of the 1976 Bonds in the manner provided in Section 6.05 of the 1976 Ordinance and to give notice of redemption of the 1977 Bonds in the manner provided in Section 6.05 of the 1977 Ordinance. Section 2.02 Funds necessary to effect the redemption of the Refunded Bonds shall be provided through the issuance by the City of its Waterworks and Sewer System Refunding Revenue Bonds, Series 1998 (the "1998 Bonds"). Issuance of the 1998 Bonds shall be approved by ordinance of the Council to be adopted subsequent to the adoption of this Resolution. Proceeds of the 1998 Bonds in amount sufficient to pay the respective redemption prices of the Refunded Bonds, plus interest accrued thereon to the redemption date, shall be deposited in an escrow fund to be held by a financial institution selected by the Finance Director and applied to the redemption of the Refunded Bonds. In that regard, the Mayor of the City (the "Mayor") is hereby authorized to execute and deliver on behalf of the City to such financial institution an Escrow Deposit Agreement in such form as may be approved by the Mayor, upon advice of bond counsel. Execution and delivery of such Escrow Deposit Agreement shall constitute conclusive evidence of the approval by the Mayor of the terms and conditions thereof. Section 2.03 The Mayor, the City Administrator, and the Finance Director are authorized to take such actions and execute such additional documents, not in conflict with this Resolution, as necessary to accomplish the redemption of the Refunded Bonds.
Section 2.04 This Resolution shall take effect immediately upon adoption. DONE, RATIFIED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF NORTH AUGUSTA, SOUTH CAROLINA, ON THIS 26TH DAY OF OCTOBER, 1998.
ITEM 3. FINANCE: 1998 WATERWORKS AND SEWER SYSTEMS REVENUE BONDS - REFINANCING - ORDINANCE, FIRST READING. On motion by Councilmember Baggott, second by Councilmember Carpenter, Council unanimously passed on first reading an ordinance providing for the issuance and delivery of a series of refinancing revenue bonds of the Waterworks and Sewer Systems of the City in order to refund the Series 1976, Series 1977, and a portion of the Series 1992 bonds. A copy of Ordinance 98-16, as prepared by Sinkler & Boyd, is attached to and made a permanent part of these minutes.
ITEM 4. FINANCE: 1998 WATERWORKS AND SEWER SYSTEMS REVENUE BONDS - REFINANCING - ORDINANCE, SECOND READING. On motion by Mayor Jones, second by Councilmember Mottel, Council unanimously passed on second reading an ordinance providing for the issuance and delivery of a series of refinancing revenue bonds of the Waterworks and Sewer Systems of the City in order to refund the Series 1976, Series 1977, and a portion of the Series 1992 bonds. A copy of Ordinance 98-16, as prepared by Sinkler & Boyd, is attached to and made a permanent part of these minutes. There being no further business, Council adjourned. Respectfully submitted,
APPROVED 11/2/98. Leona J. Lewis City Clerk |