Subject: 19480/Award GO Bonds to Merrill Lynch & Co. Date: Thu, 18 Jun 1992 10:48:00 -0500 RESOLUTION NO. 19480 A RESOLUTION AWARDING TWENTY-FIVE MILLION, ONE HUNDRED TWENTY-THREE THOUSAND AND NO/100 DOLLARS ($25,123,000.00) CITY OF CHATTANOOGA, TENNESSEE GENERAL OBLIGATION BONDS TO MERRILL LYNCH & CO. AND ASSOCIATES. WHEREAS, pursuant to notice heretofore duly published in the BOND BUYER, a financial Journal published in the City of New York, State of New York, and in the CHATTANOOGA-NEWS FREE PRESS and the CHATTANOOGA TIMES, newspapers of general circulation published in the City of Chattanooga, for the sale of $25,123,000 City of Chattanooga, Tennessee General Obligation Bonds, comprised of $5,123,000 Municipal Public Improvement Bonds, 1992 and $20,000,000 Sewer and Sewage Facilities Bonds, 1992, dated June 15, 1992 (the "Bonds"), the following proposals have been received: AVERAGE BIDDER INTEREST RATE Merrill Lynch & Co. and Associates 6.1084% J.C. Bradford & Co. and Assoc. 6.1766% Chemical Securities, Inc. 6.1826% Smith Barney, Harris Upham & Co., Inc. 6.252483% Clayton Brown & Associates, Inc. 6.2546% and WHEREAS, the proposal of Merrill Lynch & Co. and Associates (the "Purchaser"), offering to pay the principal sum of $25,123,000, plus premium in the amount of $67.03, together with accrued interest, bearing an average interest rate of 6.1084% per annum, referred to above, is the highest and most advantageous bid for said Bonds as determined in the manner provided in said Notice of Sale, and in all other respects complies with said Notice of Sale form attached hereto as Exhibit A; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CHATTANOOGA, TENNESSEE: SECTION 1. That the proposal of said Purchaser, referred to in the preamble hereof, is accepted, and said $25,123,000 City of Chattanooga, Tennessee, General Obligation Bonds, comprised of $5,123,000 Municipal Public Improvement Bonds, 1992 and $20,000,000 Sewer and Sewage Facilities Bonds, 1992, dated June 15, 1992, bearing interest and maturing as described below, be, and the same hereby are awarded to said Purchaser in accordance with the terms of their proposal. Amount of Amount of Public Total Year of Sewer Improvement Principal Interest Maturity Bonds Bonds Amount Rate 1993 $ 380,000 $ 98,000 $ 478,000 7.75% 1994 395,000 100,000 495,000 7.75% 1995 415,000 105,000 520,000 7.75% 1996 435,000 110,000 545,000 7.75% 1997 455,000 115,000 570,000 7.75% 1998 480,000 125,000 605,000 7.75% 1999 505,000 130,000 635,000 7.75% 2000 535,000 135,000 670,000 7.75% 2001 565,000 145,000 710,000 7.75% 2002 600,000 155,000 755,000 7.50% 2003 635,000 165,000 800,000 5.75% 2004 675,000 175,000 850,000 5.80% 2005 715,000 185,000 900,000 5.90% 2006 760,000 195,000 955,000 6.00% 2007 810,000 210,000 1,020,000 6.00% 2008 865,000 220,000 1,085,000 6.00% 2009 920,000 235,000 1,155,000 6.00% 2010 975,000 250,000 1,225,000 6.00% 2011 1,040,000 265,000 1,305,000 6.00% 2012 1,110,000 285,000 1,395,000 6.00% 2013 1,180,000 300,000 1,480,000 6.00% 2014 1,260,000 320,000 1,580,000 6.00% 2015 1,340,000 345,000 1,685,000 6.00% 2016 1,430,000 365,000 1,795,000 6.00% 2017 1,520,000 390,000 1,910,000 5.75% SECTION 2. That the Mayor and City Finance Officer of the City of Chattanooga be and are hereby authorized and directed to execute said City of Chattanooga, Tennessee, General Obligation Bonds, and to deliver said Bonds to the Purchaser and to receive payment therefor without further authority from this City Council. SECTION 3. That the City Finance Officer be and is hereby authorized and directed to return forthwith the good faith checks of all unsuccessful bidders. SECTION 4. That the Official Statement dated June 18, 1992, and the information contained therein to be used in connection with the offering and sale of said Bonds is hereby approved and further, that the City hereby ratifies, confirms and approves the use of the Preliminary Official Statement of the City and Notice of Sale of the City, both dated June 10, 1992, in connection with the offering and sale of said Bonds. The Official Statement may be modified in a manner not inconsistent with the substance thereof as shall be deemed advisable by the City or Financial Advisor to the City and by bond counsel to the City. The Mayor or any proper officer of the City is hereby authorized and directed to sign the Official Statement and any amendment or supplement thereto, in the name of and on behalf of the City and deliver the same and any such amendment or supplement. SECTION 5. That Chemical Bank, New York, New York is hereby appointed paying agent for said Bonds. SECTION 6. That this Resolution shall take effect from and after its adoption, the public welfare requiring it. ADOPTED: June 18, 199209 RLN:cjc