Title
A Resolution of the Lexington-Fayette Urban County Government authorizing the advertisement for Bids and the distribution of a Preliminary Official Statement for the purchase of the principal amount of its (I) Various Purpose General Obligation Bonds, Series 2013C in an amount not to exceed $18,250,000; and (II) Various Purpose General Obligation Refunding Bonds, Series 2013D in a principal amount not to exceed $80,000,000. [Dept. of Finance, O'Mara]
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WHEREAS, the Lexington-Fayette Urban County Government has previously determined the necessity of (i) financing the acquisition of various equipment for departments within the Lexington-Fayette Urban County Government, including, but not limited to, communications and computer equipment and other equipment, traffic engineering equipment, police and fire equipment, police and fire vehicles, and golf carts; (ii) financing various projects for departments within the Lexington-Fayette Urban County Government, including, but not limited to, remodeling and renovation of public safety buildings, Kentucky Theatre, maintenance building, fire stations, street and sidewalk improvements, various park projects and improvements, HVAC system maintenance and weather and emergency systems upgrades; (iii) financing the redesign of Rupp Arena and Convention Center; and (iv) providing funding for a program to preserve and manage agricultural, rural and natural lands, including the purchase of conservation easements or development rights (collectively, the "Series 2013C Project"); and
WHEREAS, the Lexington-Fayette Urban County Government has determined to proceed with the advertisement of bids for the purchase of its Various Purpose General Obligation Bonds, Series 2013C (the "Series 2013C Bonds") in the principal amount not to exceed $18,250,000, in order to (i) provide funds to finance the Series 2013C Project, and (ii) pay the costs of issuing the Series 2013C Bonds; and
WHEREAS, the Lexington-Fayette Urban County Government, heretofore issued its $69,320,000 Taxable General Obligation Public Project Bonds, Series 2010A (Build America Bonds - Direct Pay) (the "Series 2010A Prior Bonds,"), the proceeds of which were used to finance the various projects for departments within Lexington-Fayette Urban County Government, including, but not limited to, (i) acquisition of computer equipment, telephone equipment, security equipment, motor vehicles, fire protection equipment, traffic control equipment and public safety equipment, (ii) improvements to Lyric Theatre, infrastructure improvements to the Lexington Distillery District (a redevelopment project in an area where several former liquor distilleries were located), government center design, parking lot resurfacing, park projects, building and facility renovations, streetscape improvements, and (iii) purchasing of development rights (collectively, the "Series 2010A Project"); and
WHEREAS, the Lexington-Fayette Urban County Government, heretofore issued its $6,305,000 Various Purpose General Obligation Public Projects Bonds, Series 2010F (Federally Taxable - Build America Bonds - Direct Payment to the Issuer) (the "Series 2010F Prior Bonds"), the proceeds of which were used to (i) finance the acquisition of various equipment for departments within the Lexington-Fayette Urban County Government, including, but not limited to, communications and computer equipment and other equipment, police and fire equipment, fire and garbage trucks and golf carts; and (ii) finance various projects for departments within the Lexington-Fayette Urban County Government, including, but not limited to, improvements to recycling facilities (collectively, the "Series 2010F Project"); and
WHEREAS, the Lexington-Fayette Urban County Government, heretofore issued its $8,950,000 Various Purpose General Obligation Public Projects Bonds, Series 2010G (Federally Taxable - Recovery Zone Economic Development Bonds -Direct Payment to the Issuer) (the "Series 2010G Prior Bonds" and together with the Series 2010A Prior Bonds and the Series 2010F Prior Bonds, the "Prior Bonds"), the proceeds of which were used to (i) finance various projects for departments within the Lexington-Fayette Urban County Government, including, but not limited to, acquisition of two fire trucks, public works utility design, construction of a compost site waterline and drainage system and remodeling and renovation of fire stations; (ii) providing funding for a program to preserve and manage agricultural, rural and natural lands, including the purchase of conservation easements or development rights (collectively, the "Series 2010G Project" and together with the Series 2010A Project and the Series 2010F Project, the "Prior Project"); and
WHEREAS, the Lexington-Fayette Urban County Government has determined that due to the present conditions of the municipal market it is advantageous and in the best interests of the Lexington-Fayette Urban County Government for the purpose of realizing interest cost savings (as determined by the Commissioner of Finance) to proceed with the advertisement of bids for the purchase of its Various Purpose General Obligation Refunding Bonds, Series 2013D (the "Series 2013D Refunding Bonds" and together with the Series 2013C Bonds, the "Series 2013 Bonds") in one or more subseries, in a principal amount not to exceed $80,000,000, in order to provide funds to (i) refund all or a portion of the Prior Bonds and (ii) pay the costs of issuing the Series 2013D Refunding Bonds; and
NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE LEXINGTON-FAYETTE URBAN COUNTY GOVERNMENT (THE "URBAN COUNTY COUNCIL"):
- The Lexington-Fayette Urban County Government, an urban county government and political subdivision of the Commonwealth of Kentucky, shall issue its Series 2013C Bonds in one or more subseries in the principal amount not to exceed $18,250,000, in order to provide funds to (i) finance the acquisition of various equipment for departments within the Lexington-Fayette Urban County Government, including, but not limited to, communications and computer equipment and other equipment, traffic engineering equipment, police and fire equipment, police and fire vehicles, and golf carts; (ii) finance various projects for departments within the Lexington-Fayette Urban County Government, including, but not limited to, remodeling and renovation of public safety buildings, Kentucky Theatre, maintenance building, fire stations, street and sidewalk improvements, various park projects and improvements, HVAC system maintenance and weather and emergency systems upgrades; (iii) financing the redesign of Rupp Arena and Convention Center; (iv) provide funding for a program to preserve and manage agricultural, rural and natural lands, including the purchase of conservation easements or development rights (collectively, the "Series 2013C Project"); and (v) pay the costs of issuing the Series 2013C Bonds. The Lexington-Fayette Urban County Government shall also issue its Series 2013D Refunding Bonds in a principal amount not to exceed $80,000,000 (provided that the refunding of the Series 2010A Prior Bonds, Series 2010F Prior Bonds and/or the Series 2010G Prior Bonds shall result in debt service savings for the Lexington-Fayette Urban County Government as determined by the Commissioner of Finance and the financial advisors to the Lexington-Fayette Urban County Government) in order to provide funds to (i) refund all or a portion of the Prior Bonds and (ii) pay the costs of issuing the Series 2013D Refunding Bonds.
- The Lexington-Fayette Urban County Government shall comply with the requirements of KRS Chapter 66 by advertising for bids for the purchase of the Series 2013 Bonds. The Mayor, the Clerk of the Urban County Council and the Commissioner of Finance are hereby authorized to prepare such instruments and to distribute such information as shall be necessary to accomplish the foregoing, including preparation of a Preliminary Official Statement (the "Preliminary Official Statement") which Preliminary Official Statement is to be deemed final in accordance with Rule 15c2-12 of the Securities and Exchange Commission (the "Rule"). In order to enable prospective purchasers to submit bids for the purchase of the Series 2013 Bonds, the Lexington-Fayette Urban County Government hereby covenants and agrees that it will execute, comply with and carry out all of the provisions of a continuing disclosure certificate (the "Continuing Disclosure Certificate") in connection with the issuance of the Series 2013 Bonds. Failure to comply with any such provisions of the Continuing Disclosure Certificate shall not constitute a default on the Series 2013 Bonds; however, any holder of the Series 2013 Bonds, including the beneficial owners of the Series 2013 Bonds, may take such action as may be necessary and appropriate, including seeking specific performance, to cause the Lexington-Fayette Urban County Government to comply with its obligations under the Continuing Disclosure Certificate. Further the Mayor is hereby authorized and directed on behalf of the Lexington-Fayette Urban County Government to execute all such instruments as shall be necessary to accomplish all of the foregoing.
- Such proposals shall be opened and reviewed by the Commissioner of Finance, and shall be acted upon by the Mayor on that same day in accordance with the terms of the bond ordinance with respect to the Series 2013C Bonds and the bond ordinance with respect to the Series 2013D Refunding Bonds. The Lexington-Fayette Urban County Government hereby approves the "Notice of Bond Sale," substantially in the form attached hereto to be published as required by law.
- The Mayor shall, in a certificate of award accepting the successful bid for the Series 2013 Bonds (the "Certificate of Award"), determine the exact principal amount of Series 2013 Bonds to be issued, the subseries designations of the Series 2013 Bonds, the rate or rates of interest which said Series 2013 Bonds shall bear, redemption provisions and the interest rate or rates on said Series 2013 Bonds shall be automatically fixed at the rate or rates set out in the successful bid accepted by said Certificate of Award. The proceeds of the sale of the Series 2013C Bonds shall be applied to the costs of the Project and paying the costs of issuance of the Series 2013C Bonds, and shall be expended as provided in the bond ordinance authorizing the Series 2013C Bonds. The proceeds of the sale of the Series 2013D Refunding Bonds shall be applied to the costs of the refunding of all or a portion of the Prior Bonds and paying the costs of issuance of the Series 2013D Refunding Bonds, and shall be expended as provided in the bond ordinance authorizing the Series 2013D Refunding Bonds.
- In the event that no bid shall be accepted for the purchase of the Series 2013 Bonds, bids may again be solicited for the purchase of the Series 2013 Bonds at a future date and hour at the discretion of the Mayor and the Commissioner of Finance, without the necessity of further authorization by the Urban County Council of the Lexington-Fayette Urban County Government.
- All resolutions or orders or parts thereof, if any, in conflict with the provisions of this Resolution, are to the extent of such conflict, hereby repealed.
- This Resolution shall become effective upon the date of its passage.
INTRODUCED AND GIVEN FIRST READING AND SECOND READING AND ADOPTED at a duly convened meeting of Urban County Council of the Lexington-Fayette Urban County Government held on the _____ day of _________, 2013, signed by the Mayor, attested under seal by the Clerk of Urban County Council, and ordered to be published, filed and indexed as provided by law.
ATTEST:
Meredith Nelson Urban County Council Clerk |