Subject: 21693/Award$64,000,000BondsToPaineWebber Date: Mon, 2 Mar 1998 16:58:12 -0500 RESOLUTION NO. _21693 A RESOLUTION AWARDING SIXTY-FOUR MILLION DOLLARS ($64,000,000) CITY OF CHATTANOOGA, TENNESSEE GENERAL OBLIGATION BONDS, SERIES 1998 TO PAINE WEBBER. _________________________ WHEREAS, pursuant to notice heretofore duly published in the BOND BUYER, a financial Journal published in the City of New York and in the CHATTANOOGA FREE PRESS and the CHATTANOOGA TIMES, newspapers of general circulation published in the City of Chattanooga, for the sale of $64,000,000 City of Chattanooga, Tennessee General Obligation Bonds, Series 1998, (the "Bonds"), the following proposals have been received: BIDDER TRUE INTEREST RATE Paine Webber 5.026576 Suntrust 5.07575 Merrill Lyunch 5.049 Prudential 5.0762 WHEREAS, the proposal of Paine Webber ("Purchaser") offering to pay the principal sum of $64,267,050.90 together with accrued interest, bearing a true interest rate of 5.026576 per annum, referred to above, is the highest and most advantageous bid for said Bonds as determined in 0C 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 $64,000,000 City of Chattanooga, Tennessee, General Obligation Bonds, Series 1998, dated March 1, 1998, 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. YEAR GENERAL OF OBLIGATION INTEREST MATURITY BONDS RATE 1999 1,955,000 4.000 2000 2,030,000 4.500 2001 2,125,000 4.500 2002 2,220,000 5.000 2003 2,330,000 5.250 2004 2,450,000 5.250 2005 2,580,000 4.750 2006 2,700,000 5.000 2007 2,835,000 5.000 2008 2,980,000 5.000 2009 3,130,000 5.375 2010 3,295,000 5.375 2011 3,475,000 5.375 2012 3,660,000 5.375 2013 3,855,000 5.000 2014 4,050,000 5.000 2015 4,250,000 5.000 *2016 4,465,000 5.000 *2017 4,690,000 5.000 *2018 4,925,000 5.000 * - Sinking fund redemption payments 0C 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 Office 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 March 3, 1998, 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, dated February 20, 1998, and Notice of Sale of the City, dated February 20, 1998, 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 the Mayor and City Finance Officer be and are hereby authorized to appoint a registrar and paying agent for said Bonds. 0C Section 6. That this Resolution shall take effect from and after its adoption, the public welfare requiring it. ADOPTED: March 3, 1998 :cjc