HomeMy Public PortalAboutr 15-010No. 15 -10
II Date of Adnmin., JANUARY 4,2015
RESOLUTION AMENDING RESOLUTION NO. 14.251
ADOPTED DECEMBER 18, 2014.
',. BE IT RESOLVED BY THE BOROUGH COUNCIL OF THE BOROUGH OF
CARTERET, IN THE COUNTY OF MIDDLESEX, NEW JERSEY AS FOLLOWS:
Section 1. Exhibit B attached to Resolution No. 14 -251, adopted by the Borough
Council on December 18, 2014 is hereby deleted in its entirety and replaced with the Exhibit B
attached to this Resolution.
Section 2. This resolution shall take effect immediately.
Adopted this 4th day of January, 2015
and certified as a true copy of the
original on January 5, 2015.
KATHLEEN N. BARNEY, PNC
Plunicipal Clerk
RECORD Or ennlvnrt Vn•, -r
COUNCILMAN
BELLING
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COUNCILMAN
KRUPI
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X - Indicate Vote AB-Absent NV - Not Voting XOR
- Indicates Vole to O""h, Veto
Adopted at a meeting of the Municipal Council
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JANUARY 4, 2015
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Exhibit B
(Notice of Sale to be Published in Local Newspaper)
NOTICE OF SALE
$12,928,000
GENERAL IMPROVEMENT BONDS, SERIES 2015
OF THE BOROUGH OF CARTERET,
IN THE COUNTY OF MIDDLESEX, NEW JERSEY
(Book -Entry Only Bonds) /(Callable) /(Not Bank Qualified)
NOTICE IS HEREBY GIVEN that bids will be received by the Borough of Carteret, in the
County of Middlesex, New Jersey (the "Borough ") for the purchase of $12,928,000 original
principal amount of the Borough's General Improvement Bonds, Series 2015 (the "Bonds "). All
Bids (as defined below) must be submitted in their entirety via "PARITY Electronic Bid
System" (PARITY) prior to 11:00 a.m., New Jersey time on January 21, 2015 (the "Sale
Date ").
Preliminary and Final Official Statement
The Borough's Preliminary Official Statement (the "POS ") is available for viewing in
electronic format on PARITY. The PARITY address is www.i- dealprospectus.com All Bidders
must review the POS and certify that they have done so prior to participating in the bidding.
Types of Bids Allowed
Subject to the Bid requirements described below, Bids for the Bonds must be submitted
on an "All-or-None" ( "AON ") basis for the entire amount of $12,928,000.
Interest Payment Dates; Description of the Bonds
The Bonds will be dated the date of delivery and will bear interest from such date
payable semiannually on each February 1 and August 1, commencing on August 1, 2015.
Interest shall be computed on the basis of a 30 -day month /360 -day year.
Principal Amortization
The Bonds shall mature on February 1 as set forth in the following table:
Year
Principal Amount
Year
Principal Amount
2016
$378,000
2026
$675,000
2017
380,000
2027
690,000
2018
560,000
2028
715,000
2019
575,000
2029
730,000
2020
585,000
2030
740,000
2021
600,000
2031
750,000
2022
615,000
2032
750,000
2023
630,000
2033
750,000
2024
645,000
2034
750,000
2025
660,000
2035
750,000
The actual principal amounts may be adjusted by the Borough, at its option, in
accordance with U.S.A. 40A:2- 26(g). Any such adjustment shall not exceed 10% of the
principal for any maturity with the aggregate adjustment to maturity not to exceed 10% of the
principal for the overall issues.
Redemption Provisions
The bonds of this issue maturing prior to February 1, 2026, are not subject to redemption
prior to their stated maturities. The bonds of this issue maturing on or after February 1, 2026
are redeemable at the option of the Borough in whole or in part on any date on or after February
1, 2025 at 100% of the principal amount outstanding (the "Redemption Price ") plus interest
accrued to the date of redemption upon notice as required herein.
Notice of Redemption shall be given by mailing by first class mail in a sealed envelope
with postage prepaid to the registered owners of the bonds not less than thirty (30) days, nor
more than sixty (60) days prior to the date fixed for redemption. Such mailing shall be to the
owners of such bonds at their respective addresses as they last appear on the registration
books kept for that purpose by the Borough or a duly appointed Bond Registrar. Any failure of
the depository to advise any of its participants or any failure of any participant to notify any
beneficial owner of any Notice of Redemption shall not affect the validity of the redemption
proceedings. If the Borough determines to redeem a portion of the bonds prior to maturity, the
bonds to be redeemed shall be selected by the Borough; the bonds to be redeemed having the
same maturity shall be selected by the Securities Depository in accordance with its regulations.
If Notice of Redemption has been given as provided herein, the bonds or the portion
thereof called for redemption shall be due and payable on the date fixed for redemption at the
Redemption Price, together with accrued interest to the date fixed for redemption. Interest shall
cease to accrue on the bonds after the date fixed for redemption and no further interest shall
accrue beyond the redemption date. Payment shall be made upon surrender of the bonds
redeemed.
Terms of PARITY
Each electronic proposal must be submitted via PARITY. No bidder will see any other
bidder's bid, nor will any bidder see the status of its bid relative to other bids (e.g_, whether its
bid is a leading bid). To the extent any instructions or directions set forth on PARITY conflict
with this Notice of Sale, the terms of this Notice of Sale shall control. In the event that a bid for
the Bonds is submitted via PARITY, the bidder further agrees that: The Borough may regard the
electronic transmission of the bid via PARITY (including information about the purchase price of
the Bonds, the interest rate or rates to be borne by the various maturities of the Bonds specified,
the initial public offering price of each maturity of the Bonds and any other information included
in such transmission) as though the same information were submitted on the official "Proposal
for Bonds" provided by the Borough and executed by a duly authorized signatory of the bidder.
If a bid submitted electronically via PARITY is accepted by the Borough, the terms of the official
"Proposal for Bonds" and this Notice of Sale and the information that is electronically transmitted
via PARITY shall form a contract, and the successful bidder shall be bound by the terms of such
contract.
Once the bids are communicated electronically via PARITY to the Borough, each bid will
constitute an official "Proposal for Bonds" and shall be deemed to be an irrevocable offer to
purchase the Bonds on the terms provided in this Notice of Sale. For purposes of submitting all
"Proposals for Bonds," whether electronically or sealed, the time as maintained on PARITY shall
constitute the official time.
Bidding Details
MIT, MO
Bidders should be aware of the following bidding details associated with the sale of the
(1) All Bids must be submitted on the PARITY. No telephone, telefax, telegraph or
personal delivery Bids will be accepted.
(2) Bidders may change and submit Bids as provided for herein, but a submitted Bid
may not be withdrawn.
(3) Bidders may bid to purchase Bonds from the Borough with a bid premium not
exceeding $646,400. No Bid will be considered if the Bid is to purchase Bonds at
a price less than 100% of the principal amount thereof.
(4) Each proposal submitted must name the rate or rates of interest per annum to be
borne by the Bonds and the rate or rates named must be multiples of 118 or 1/20
of 1 %. The difference between the highest and lowest interest rates named in
the Bid shall not exceed four percent (4 %) per annum. Not more than one rate
may be named for Bonds of the same maturity. There is no limitation on the
number of rates that may be named. Each proposal submitted must state the
purchase price, which must be not less than par. The Bonds will be awarded to
the bidder on whose bid the total loan may be made at the lowest true interest
cost ( "TIC "). Such TIC shall be calculated as described below. No proposal shall
be considered that offers to pay an amount less than the principal amount of
Bonds offered for sale or under which the total loan is made at a TIC higher than
the lowest TIC to the Borough under any legally acceptable proposal.
(5) Bidders are only permitted to submit Bids for the Bonds during the bidding
period.
Definitions
"True Interest Cost
(TIC)" true interest cost shall be computed in each instance by determining the
interest rate, compounded semi - annually, necessary to discount the debt
service payments to the date of the bonds and to the price bid, excluding
interest accrued to the delivery date.
Bid Procedure and Basis of Award
Subject to the right reserved by the Borough to reject any or all Bids, the Bonds will be
sold to the Bidder whose Bid produces the lowest TIC for the Borough and otherwise complies
with the Notice of Sale.
Bids must remain valid until at least 2:00 p.m., prevailing time, on the Sale Date, and if
accepted by the Borough, prior to such time, shall be irrevocable except as otherwise provided
in the Notice of Sale. Upon selection of the winning Bidder, the Borough will execute an award
certificate to award the Bonds and will promptly communicate with the winning Bidder by
telephone, e-mail or fax.
Bid Security and Method of Payment for Bonds
A Good Faith Deposit ( "Deposit ") in the form of a certified or cashier's check, wire
transfer (wiring instructions can be obtained from the Borough's Bond Counsel or Financial
Advisor) or a Financial Surety Bond in the amount of $258,560, payable to the order of the
Borough, is required for each bid to be considered. If a check is used, it must be a certified
treasurer's or cashier's check and must be provided to the Borough prior to 10:30 a.m. on the
Sale Date for bids to be submitted. If a wire transfer is used, such wire must be received by the
Borough prior to 10:30 a.m. on the Sale Date. Each bidder accepts responsibility for delivering
such check or wire on time and the Borough is not responsible for any check or wire that is not
received on time. If a Financial Surety Bond is used, it must be from an insurance company
licensed to issue such a bond in the State of New Jersey and approved by the Director of the
Division of Local Government Services of New Jersey (the "Director ") and such bond must be
submitted to the Borough prior to 10:30 a.m. on the Sale Date at the address referred to above.
The Financial Surety Bond must identify the bidder whose Deposit is guaranteed by such
Financial Surety Bond. If the Bonds are awarded to a bidder utilizing a Financial Surety Bond,
then that purchaser (the "Purchaser ") is required to submit its Deposit to the Borough by wire
transfer as instructed by the Borough not later than 3:30 p.m. on the next business day following
the Sale Date. If such Deposit is not received by that time, the Financial Surety Bond may be
drawn by the Borough to satisfy the Deposit requirement. No interest on the Deposit will accrue
to the Purchaser. The Deposit will be applied to the purchase price of the Bonds. In the event
the Purchaser fails to honor its accepted bid, the Deposit will be retained by the Borough.
Award of the Bonds to the successful Bidder or rejection of all Bids is expected to be made
within two hours after opening of the bids, but such successful Bidder may not withdraw its
proposal until after 3:00 p.m. on the Sale Date and then only if such award has not been made
prior to the withdrawal. The balance of the purchase price shall be paid in Federal Funds by
wire transfer to the Borough on or about the delivery date. Unsuccessful Bidders submitting the
Deposit by wire transfer shall, no later than the close of business on the Sale Date, provide the
Chief Financial Officer in writing with wiring instructions for the return of such unsuccessful
Bidder's Deposit. In the event the Borough fails to return any such wires in a timely fashion, the
Borough shall not be liable for monetary damages, remedy being hereby specifically limited to
specific performance.
Right to Reject Bids; Waive Irregularities
The Borough reserves the right to reject any and all Bids and to the extent permitted by
law to waive any irregularity or informality in any Bid.
Information Required from the Winning Bidder
By making a bid for the Bonds, the winning bidder(s) agrees: (a) to provide to the
Borough, in writing, immediately upon being unofficially awarded the Bonds, a written
confirmation of the bid, which shall include the purchase price, reoffering yield(s), and other
related information necessary for completion of the final Official Statement, the Financial
Advisor and by Bond Counsel; (b) to disseminate to all members of the underwriting syndicate
copies of the Official Statement; (c) to promptly file a copy of the final Official Statement with the
Municipal Securities Rulemaking Board; and (d) to take any and all other actions necessary to
comply with applicable Securities and Exchange Commission and Municipal Securities
Rulemaking Board rules governing the offering, sale and delivery of the Bonds to alternate
purchasers.
Delivery of the Bonds
The Bonds will be delivered on or about the delivery date (UNLESS A NOTICE OF A
CHANGE IN THE DELIVERY DATE IS PUBLISHED ON MUNIAUCTION NOT LATER THAN 2
HOURS PRIOR TO ANY ANNOUNCED DATE FOR RECEIPT OF BIDS) in New York City at
DTC against payment of the purchase price therefor (less the amount of the good faith deposit)
in Federal funds.
CUSIP Numbers
CUSIP numbers will be applied for with respect to the Bonds, but the Borough will
assume no obligation for the assignment or printing of such numbers on the Bonds or for the
correctness of such numbers, and neither the failure to print such numbers on any bond nor any
error with respect thereto shall constitute cause for a failure or refusal by the purchasers thereof
to accept delivery of and make payment for the Bonds. The CUSIP Service Bureau charge for
the assignment of the numbers shall be the responsibility of and shall be paid for by the winning
Bidder.
Postponement
The Borough reserves the right to postpone, from time to time, the date and time
established for receipt of Bids. ANY SUCH POSTPONEMENT WILL BE PUBLISHED OR
POSTED, BEFORE 9:00 A.M. ON THE SALE DATE. If any date fixed for the receipt of Bids
and the sale of the Bonds is postponed, an alternative sale date will be announced via PARITY
at least forty -eight (48) hours prior to such alternative sale date. On any such alternative sale
date, any Bidder may submit a Bid for the purchase of the Bonds in conformity in all respects
with the provisions of the Notice of Sale, except for the date of sale and except for the changes
announced on PARITY at the time the sale date and time are announced.
Additional Information
For further information relating to the Bonds, reference is made to the POS prepared for
and authorized by the Borough. The Notice of Sale and the POS may be viewed on PARITY.
Printed copies of the POS and the Notice of Sale may be obtained from the Financial Advisor or
Bond Counsel at the address and the phone numbers stated above. For additional information
relating to the sale please contact PARITY at (212) 404 -8102. Additional information relating to
the financing of the Borough, including the POS and full Notice of Sale can be obtained by
contacting the undersigned Chief Financial Officer at (732) 541 -3800 or email at
deblasiop cDcarteret.net or the Borough's Financial Advisor.
BOROUGH OF CARTERET
By: Patrick J. DeBlasio, Chief Financial Officer
Dated: January _, 2015