SR-203-001-06 (5)
OFFICIAL NOTICE INVITING BIDS
$63,515,000*
Redevelopment Agency of the City of Santa Monica
Earthquake Recovery Redevelopment Project Area
Tax Allocation Bonds
Series 1999
(Book-Entry-Only)
NOTICE IS HEREBY GIVEN that sealed bids and electronic bids will be received by the Redevelopment Agency of
the City of Santa Monica (the “Agency”) for the purchase of all of its $63,515,000* original principal amount of the
Redevelopment Agency of the City of Santa Monica Earthquake Recovery Redevelopment Project Area Tax Allocation
Bonds, Series 1999 (the “Bonds”). Bids for less than all of the Bonds will not be accepted. The bids will be received at the
place and up to the time specified below (unless postponed as described herein):
Date: [December 1, 1999]
[10:00] a.m., PST
Place: Department of Finance
City of Santa Monica
1717 4th Street, Suite 250
Santa Monica, California 90401
Sealed Bids: All Sealed Bids must be in an envelope clearly marked “Proposal For
Redevelopment Agency of the City of Santa Monica Earthquake Recovery
Redevelopment Project Area Tax Allocation Bonds, Series 1999”. Sealed
Bids may be mailed or hand delivered to the address shown above on the
date and at or before the time shown above. See instructions under “Terms
of Sale; Form of Bid” below.
Electronic Bids: Electronic proposals may be submitted only through Dalcomp/Parity.
Bidders intending to submit an electronic proposal must complete and
deliver the attached Authorization to Accept Electronic Bid (the
“Authorization”) to the Agency at the address indicated on the Authorization
prior to the time stated above for the receipt of proposals. Dalcomp/Parity
will act as agent of the bidder and not of the Agency in connection with the
submission of bids and the Agency assumes no responsibility or liability for
bids submitted through Dalcomp/Parity. See “Information Regarding
Electronic Proposals” herein.
Facsimile Bids: No bids will be accepted by facsimile.
The Issue
The proceeds from the sale of the Bonds will be used to provide funds to the Agency to purchase approximately 11.3
acres in the Civic Center area of the City or for other redevelopment purposes (the “Project”); fund a reserve account for the
Bonds; and pay costs of issuance of the Bonds. The Bonds will be issued pursuant to the Indenture, dated as of [December 1,
1999] (the “Indenture”), by and between the Agency and BNY Western Trust Company, as trustee (the “Trustee”),
authorizing the issuance of the Bonds. Capitalized terms not defined herein shall have the same definitions as used in the
Indenture.
* Preliminary, subject to change as set forth herein.
-1-
Authorization
The Bonds were authorized by the Board of the Agency on [October 26, 1999]. The Bonds are to be issued under and
pursuant to the Community Redevelopment Law (Part 1 of Division 24 of the Health and Safety Code of the State of
California, as amended) (the “Law”) and the laws of the State of California.
Security and Sources of Payments
The Bonds are special obligations of the Agency. The Agency has pledged for the repayment of the Bonds, equally and
ratably with any Additional Bonds hereafter issued, all of the “Tax Revenues,” defined in the Indenture as the taxes
ad valorem
(including all payments, reimbursements and subventions, if any, specifically attributable to taxes lost by reason
of tax exemptions and tax rate limitations) eligible for allocation to the Agency pursuant to the Law in connection with the
Earthquake Recovery Redevelopment Project Area of the Agency (the “Project Area”), excluding (a) amounts, if any,
required to be deposited by the Agency in the Housing Fund and used for certain housing purposes, provided, however, that
such amounts shall not be excluded if and to the extent that the Agency makes such amounts available as Tax Revenues, and
(b) amounts, if any, payable pursuant to Sections 33607.5 and 33607.7 of the Law but only to the extent such amounts are
not subordinated to the payment of debt service on the Bonds.
The Bonds are secured by a pledge of and lien on all of the Tax Revenues and a pledge of all of the moneys in the
Revenue Fund created pursuant to the Indenture and in the funds or account so specified and provided for in the Indenture
(except the Rebate Fund).
The foregoing obligations, however, may be limited by bankruptcy, insolvency, reorganization, moratorium, or other
laws affecting the enforcement of creditors’ rights. Reference is made to the Preliminary Official Statement and the Indenture
for a more exact description of the security for the Bonds.
Book-Entry-Only
The Bonds will be issued in fully registered book-entry only form, initially registered in the name of CEDE & Co., as
nominee of The Depository Trust Company, New York, New York (“DTC”). Purchasers will not receive certificates
representing their interest in the Bonds. Individual purchases will be in principal amounts of $5,000 and integral multiples
thereof. Principal of, interest and premium, if any, on the Bonds will be made by the Trustee to DTC for subsequent
disbursement to DTC Participants who are obligated to remit such payments to the beneficial owners of the Bonds.
Principal and Interest Payments
The Bonds will be dated as of [December 1, 1999] and will bear interest from that date. Delivery of the Bonds is
expected to occur on [December 14, 1999]. Interest on the Bonds will be payable semi-annually on January 1 and July 1,
beginning July 1, 2000 (each an “Interest Payment Date”). Principal of and premium (if any) on the Bonds will be payable in
lawful money of the United States of America upon presentation and surrender thereof upon maturity or earlier redemption at
the principal corporate trust office of the Trustee. Payment of principal and interest to DTC is the responsibility of the
Agency or the Trustee; disbursement of such payments to Direct Participants of DTC will be the responsibility of DTC; and
disbursements of such payments to the Beneficial Owners will be the responsibility of DTC’s Direct Participants and Indirect
Participants. The Agency and the City cannot and do not give any assurances that DTC, the Participants or others will
distribute payments of principal, interest or premium with respect to the Bonds paid to DTC or its nominee as the registered
owner, or will distribute any redemption notices or other notices, to the Beneficial Owners, or that they will do so on a timely
basis or will serve and act in the manner described in the Official Statement. The Agency and the City are not responsible or
liable for the failure of DTC or any Participant to make any payment or give any notice to a Beneficial Owner with respect to
the Bonds or an error or delay relating thereto.
* Preliminary, subject to change as set forth herein.
-2-
Principal Amortization
The aggregate principal amount of $63,515,000* of the Bonds will mature either through serial maturities or sinking
amount installments on the following dates:
July 1, Principal Amount* July 1, Principal Amount*
2000 $850,000 2015 $1,890,000
2001 885,000 2016 2,005,000
2002 930,000 2017 2,130,000
2003 975,000 2018 2,265,000
2004 1,025,000 2019 2,405,000
2005 1,075,000 2020 2,560,000
2006 1,135,000 2021 2,720,000
2007 1,195,000 2022 2,890,000
2008 1,260,000 2023 3,070,000
2009 1,335,000 2024 3,265,000
2010 1,410,000 2025 3,475,000
2011 1,495,000 2026 3,695,000
2012 1,580,000 2027 3,925,000
2013 1,675,000 2028 4,175,000
2014 1,780,000 2029 4,440,000
Serial Bonds and/or Term Bonds
Bidders may provide that all the Bonds of a series be issued as serial bonds or may provide that any two or more
provided
consecutive annual principal amounts of a series be combined into one or more term bonds, that no term bond
maturing on or after July 1, [ ], may have sinking fund payments prior to July 1, [ ].
Optional Redemption
Bonds due on or before July 1, 20[___] are not subject to redemption before their respective stated maturities. Bonds
maturing on or after July 1, 20[___] are subject to redemption, as a whole or in part as designated by the Agency, or, absent
pro rata
such designation, among maturities and by lot within any one maturity if less than all of the Bonds of such maturity
are to be redeemed, prior to their respective maturity dates, at the option of the Agency, on any date on or after July 1, 20[
], from funds derived by the Agency from any source, at the redemption price (expressed as a percentage of the principal
amount of such Bonds) of the principal amount of Bonds called for redemption, together with interest accrued thereon to the
date fixed for redemption as set forth in the following table.
Redemption Dates Redemption Price
July 1, 2009 and June 30, 2010 101.00%
July 1, 2010 and thereafter 100.00%
Whenever less than all Outstanding Bonds maturing on any one date are called for redemption at any one time, the
Trustee shall select the Bonds to be redeemed from the Outstanding Bonds maturing on such date not previously selected for
provided, however
redemption, by lot in any manner which the Trustee deems appropriate; , that if less than all of the
Outstanding Term Bonds of any maturity are called for redemption at any one time, the Agency shall specify a reduction in
any Sinking Account Installment payments required to be made with respect to such Bonds (in an amount equal to the
amount of Outstanding Term Bonds to be redeemed).
* Preliminary, subject to change as set forth herein.
-3-
Notice of Redemption
Notice of redemption shall be mailed by first class mail by the Trustee, not less than 30 nor more than 60 days prior to
the redemption date to the registered Owners of Bonds designated for redemption, to one or more Information Services, and
to the Securities Depositories. Failure by the Trustee to give notice to any one or more of the Information Services or
Securities Depositories, or the insufficiency of any such notice, or the failure of any Owner to receive any redemption notice
mailed to such Owner and any defect in the notice so mailed shall not affect the sufficiency of the proceedings for redemption.
The Agency shall have the right to rescind any optional redemption by written notice to the Trustee on or prior to the
date fixed for redemption. Any notice of redemption shall be canceled and annulled if for any reason funds are not available
on the date fixed for redemption for the payment in full of the Bonds then called for redemption, and such cancellation shall
not constitute an Event of Default under the Indenture. The Agency and the Trustee shall have no liability to the Owners or
any other party related to or arising from such rescission of redemption. The Trustee shall mail notice of such rescission of
redemption in the same manner as the original notice of redemption was sent.
Mandatory Sinking Fund Redemption
If the successful bidder designates principal amounts to be combined into one or more term bonds, each such term bond
shall be subject to mandatory sinking fund redemption commencing on July 1 of the first year which has been combined to
form such term bonds and continuing on July 1 in each year thereafter until the stated maturity date of that term bond. The
amount redeemed in any year shall be equal to the principal amount for such year set forth in the table above under the
caption “Principal Amortization”. Bonds to be redeemed in any year by mandatory sinking fund redemption shall be
redeemed at par and shall be selected by lot from among the Bonds then subject to redemption. The Agency, at its option,
may credit against any mandatory sinking fund redemption requirement term bonds of the maturity then subject to
redemption, which have been redeemed and not theretofore applied as a credit against any mandatory sinking fund
redemption requirement.
Adjustments of Principal Amounts
The principal amounts set forth in the Official Bid Form for the Bonds will reflect certain estimates of the Agency and its
Financial Advisor with respect to the likely interest rates of the winning bid and the premium/discount contained in the
applicable winning bid. After selecting the winning bid, the amortization schedule contained in the Official Bid Form may be
adjusted as necessary in the determination of the Financial Advisor in $5,000 increments to reflect the actual interest rates
and any premium/discount in the winning bid, to create a more level annual debt service on the Bonds, and/or to
accommodate certain other sizing requirements or preferences of the Agency. Such adjustments will not change the
aggregate principal amount of the Bonds to be issued from the amount set forth in the Official Bid Form by more than 10% or
change the principal amount due on such Bonds in any year by more than 10%. The dollar amount bid for the Bonds by the
winning bidder will be adjusted, if applicable, to reflect any such adjustment in the amortization schedule. The adjusted bid
price will reflect changes in the dollar amount of the underwriter’s discount and original issue discount/premium, if any, but
will not change the per bond underwriter’s discount (net of insurance premium, if any) provided in the winning bid. Any
such adjustments will be communicated to the winning bidder within 27 hours after the opening of the bid. Successful bidder
may not withdraw its bid as a result of any adjustment made within the foregoing limits.
TERMS OF SALE
Form of Bid
All bids must be for not less than all of the Bonds hereby offered for sale at not less than 99% of the par value thereof,
plus accrued interest to the date of delivery. Bids for less than all of the Bonds will not be accepted. Each bid must be on the
Official Bid Form. Every sealed bid must be unconditional and irrevocable, addressed to the Agency in a sealed envelope
and endorsed “Proposal For Redevelopment Agency of the City of Santa Monica Earthquake Recovery Redevelopment
Project Area Tax Allocation Bonds, Series 1999”. All electronic proposals shall be deemed to incorporate the provisions of
the Official Bid Form and must be unconditional and irrevocable. Except for proposals submitted in accordance with the
following paragraph, each bid must be accompanied by the applicable bid check or Surety Bond described under the caption
* Preliminary, subject to change as set forth herein.
-4-
“Bid Check” below. In addition, bidders are requested to supply an estimate of the true interest cost resulting from their bid,
computed as prescribed below under the caption “Award, Delivery and Payment,” which shall be considered as informative
only and not binding on either the bidder or the Agency. Each bid must be in accordance with the terms and conditions set
forth in this Official Notice Inviting Bids.
The Agency will make its best efforts to accommodate both electronic and sealed bids; however, the Agency, the
Financial Advisor and Bond Counsel assume no responsibility for any error contained in any electronic or sealed bid, or for
failure of any electronic or sealed bid to be transmitted, received or opened at the official time for receipt of such bids. The
official time for receipt of bids will be determined by the Agency at the place of the bid opening, and the Agency shall not be
required to accept the time kept by Dalcomp/Parity as the official time. The Agency assumes no responsibility for informing
any bidder prior to the deadline that its bid is incomplete, or not received.
In the event that multiple timely bids are received from a single bidder the Agency shall accept the best of such bids and
each bidder agrees by submitting any bid to be bound by its best bid.
Information Regarding Electronic Proposals
Electronic proposals must be submitted through Dalcomp/Parity. Bidders who elect to use Dalcomp/Parity must also
complete and deliver (in the form attached to this Official Notice Inviting Bids) the Authorization to Accept Electronic Bid
(the “Authorization”) to the address indicated on the Authorization prior to the time stated above for the receipt of proposals.
If any provision of this Official Notice Inviting Bids conflicts with information provided by Dalcomp/Parity, this Official
Notice Inviting Bids shall control. The Agency is not responsible for the proper operation of, and shall have no liability for
any delays or interruptions of or any damages caused by Dalcomp/Parity. The Agency is using Dalcomp/Parity as a
communication mechanism and not as the Agency’s agent to conduct electronic bidding for the Bonds. The Agency is not
bound by any advice of or determination by Dalcomp/Parity to the effect that any particular bid complies with the terms of
this Official Notice Inviting Bids. All costs and expenses incurred by prospective bidders in connection with their
submission of bids through Dalcomp/Parity are the sole responsibility of such bidders and the Agency is not responsible for
any such costs or expenses. Further information about Dalcomp/Parity, including any fee charged, may be obtained from
rd
Dalcomp/Parity, 395 Hudson Street, 3 Floor, New York, N.Y. 10014 (Jennifer Emery, 212-806-8304). Neither the City
nor the Agency assumes any responsibility or liability for bids submitted through Dalcomp/Parity.
Interest Rates
Bidders must bid to purchase all of the Bonds and bids for less than all of the Bonds will not be accepted. Bidders must
specify a rate of interest for each maturity of the Bonds. The rates of interest must be expressed in multiples of one-eighth
(1/8) or one-twentieth (1/20) of one percent (1%), and no interest rate may exceed 10% per annum. Each Bond must bear
interest at the rate specified by the bidder in the Official Bid Form from its date to its maturity date. All Bonds of the same
maturity must bear the same rate of interest. The maximum differential between the highest and lowest interest rates
specified in any bid for the Bonds shall not exceed 3% per annum. The interest rate specified for Bonds maturing on or after
July 1, shall not be less than the interest rate specified for any earlier maturity of Bonds maturing on or after July
[ ]
1, [ ].
Insurance
The successful bidder may purchase municipal bond insurance, if available, for some or all of the Bonds. The Bonds
have been pre-qualified by and the Agency has selected [INSURER] to provide such insurance at the bidder’s option. The
cost of any bond insurance will be borne by the successful bidder. Bidders should contact [INSURER] to determine the cost
of insurance. FAILURE OF THE INSURANCE PROVIDER TO ISSUE ITS POLICY SHALL NOT JUSTIFY FAILURE
OR REFUSAL BY THE SUCCESSFUL BIDDER TO ACCEPT DELIVERY OF, OR PAY FOR, THE BONDS. The
successful bidder must provide the Agency with the municipal bond insurance commitment, if any, including the amount of
the policy premium, as well as information with respect to the municipal bond insurance policy and insurance provider for
inclusion in the final Official Statement within two business days following the award of the bid by the Agency.
* Preliminary, subject to change as set forth herein.
-5-
Award, Delivery and Payment
If satisfactory bids are received, the Bonds will be awarded to the highest responsible bidder not later than 27 hours after
the time established for the receipt of bids. The highest bidder shall be the bidder submitting the best price for the Bonds,
which best price shall be that resulting in the lowest true interest cost. The true interest cost shall be computed by doubling
the semiannual interest rate (compounded semiannually) necessary to discount the debt service payments from their
respective payment dates to the date of the Bonds and to the price bid, not including accrued interest. For the purpose of
calculating the true interest cost, the principal amount of bonds scheduled for mandatory sinking fund redemption as part of a
term bond shall be treated as a serial maturity in each year. If two or more bidders have bid the same true interest cost, the
award shall be made by lot.
The purchaser shall pay accrued interest (computed on the basis of a 360-day year of twelve 30-day months) on the
Bonds from and including the dated date of the Bonds to, but not including, the date of delivery.
Delivery of the Bonds is expected to occur on or about [December 14, 1999]. Bonds will be delivered in New York,
New York for deposit with DTC. The successful bidder shall pay for the Bonds on the date of delivery in immediately
available federal funds. Any expenses of providing federal funds shall be borne by the purchaser. Payment on the delivery
date shall be made in an amount equal to the price bid for the Bonds plus accrued interest from the dated date less the amount
of the good-faith deposit.
Bid Check
Each bidder must provide with its bid a certified or cashier's check payable in same day or next day funds drawn on a
responsible bank having an office in Los Angeles, California equal to 1% of the aggregate amount of Bonds shown in the
Official Bid Form (“Bid Check Amount”) payable to the order of “Redevelopment Agency of the City of Santa Monica”, or a
financial surety bond (“Surety Bond”) in the amount of the Bid Check Amount issued by an insurance company rated AAA
by Standard & Poor's and licensed to issue such a bond in the State of California, naming the Agency as the beneficiary and
identifying the bidder whose deposit is guaranteed by the Surety Bond. If the successful bidder has provided a Surety Bond,
such bidder shall wire transfer to the Agency the amount of the Bid Check Amount in immediately available federal funds not
later than 12:00 p.m. PST on the business day next succeeding the day of acceptance of the proposal, which amount shall be
deposited in an escrow fund or account or a similar fund and applied to the purchase price of the Bonds. In the event the
Agency has not received such federal funds wire transfer by the time stated, the Agency may draw upon the Surety Bond to
satisfy the successful bidder's deposit requirements. The check accompanying any accepted proposal shall be cashed and
deposited in a fund held by the Agency and applied to the purchase price of the Bonds at the time of delivery of the Bonds. If
after the award of the Bond, the successful bidder fails to complete the purchase on the terms stated in its proposal, unless
such failure of performance shall be caused by any act or omission of the Agency, any amount received from such bidder by
the Agency, whether by paid check or pursuant to a Surety Bond, shall be retained by the City as stipulated liquidated
damages. Any check accompanying an unaccepted proposal will be returned promptly. No interest will be paid upon the
deposit made by any bidder.
List of Members of Account
Bidders are requested to list on the Official Bid Form the names of the members of the account on whose behalf the bid
is made. The apparent winning bidder will be required to verify such list or to provide an updated list by facsimile prior to
award of the Bonds.
Reoffering Price
The successful bidder will, within one hour after being notified of the award of the Bonds, advise the Agency of the
initial public offering prices of the Bonds. The successful bidder will also be required, prior to delivery of the Bonds, to
furnish a certificate acceptable to Bond Counsel stating the amount of the initial offering price to the public (excluding bond
houses and brokers) at which a substantial portion (at least 10%) of the Bonds of each maturity were sold and that there was
a bonafide public offering made of each maturity.
Official Statement
* Preliminary, subject to change as set forth herein.
-6-
The Agency has approved a Preliminary Official Statement for the Bonds, dated [ ], which the Agency
has “deemed final” for purposes of SEC Rule 15c2-12. The Agency will provide the successful bidder such reasonable
number of printed copies of the final Official Statement as such bidder may request no later than seven business days after the
day the Bonds are awarded. Up to 200 copies of the final Official Statement will be furnished without cost to the successful
bidder and further copies, if desired, will be made available at the successful bidder's expense. The bidder shall file the final
Official Statement with a nationally recognized municipal securities information repository on a timely basis. The bidder shall
at all times comply with the provisions of SEC Rule 15c2-12 and with all applicable rules of the Municipal Securities
Rulemaking Board.
Right to Reject Bids; Waive Irregularities
The Agency 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.
CUSIP Numbers
It is anticipated that CUSIP numbers will be printed on the Bonds, but the Agency 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 cost for the assignment of CUSIP numbers to the Bonds
will be the responsibility of the successful bidder.
California Debt and Investment Advisory Commission
The successful bidder will be required to pay any fees due to the California Debt and Investment Advisory Commission
(“CDIAC”) under California law. CDIAC will invoice the successful bidder after the delivery of the Bonds.
Legal Opinions
Deleted:
The Authority and the City will
furnish to the successful bidder at the
The Agency will furnish to the successful bidder at the closing of the Bonds, the legal opinion of Bond Counsel, Orrick,
closing of the Bonds, the legal opinion of
Herrington & Sutcliffe LLP, that based upon an analysis of existing laws, regulations, rulings and court decisions, and
Bond Counsel, Orrick, Herrington &
assuming, among other matters, compliance with certain covenants, interest on the Bonds is excluded from gross income for
Sutcliffe LLP, that based upon an analysis
federal income tax purposes under Section 103 of the Internal Revenue Code of 1986 and is exempt from State of California
of existing laws, regulations, rulings and
court decisions, and assuming, among
personal income taxes; and interest on the Bonds is not a specific preference item for purposes of the federal individual or
other matters, compliance with certain
corporate alternative minimum taxes, although such counsel may observe that such interest is included in adjusted current
covenants, interest on the Bonds is
earnings when calculating corporate alternative minimum taxable income. Bond Counsel will express no opinion regarding
excluded from gross income for federal
income tax purposes under Section 103 of
any other tax consequences related to the ownership or disposition of, or the accrual or receipt of interest on, the Bonds.
the Internal Revenue Code of 1986 and is
exempt from State of California personal
Change in Tax Exempt Status
income taxes; and interest on the Bonds is
not a specific preference item for purposes
of the federal individual or corporate
At any time before the Bonds are tendered for delivery, the successful bidder may disaffirm and withdraw its proposal if
alternative minimum taxes; provided,
the interest received by private holders of obligations of the same type and character of the Bonds (as determined by Bond
although such counsel may observe that
Counsel) shall be declared to be includable in gross income under present federal income tax laws, either by a ruling of the
such interest is included in adjusted current
earnings when calculating corporate
Internal Revenue Service or by a decision of any federal court, or shall be declared taxable by the terms of any federal income
alternative minimum taxable income.
tax law enacted subsequent to the date of this Official Notice Inviting Bids.
Bond Counsel expresses no opinion
regarding any other tax consequences
Closing Documents related to the ownership or disposition of,
or the accrual or receipt of interest on, the
Bonds.
The Agency will furnish to the successful bidder at the closing of the Bonds: (i) no-litigation certificates certifying that as
of and at the time of delivery of the Bonds, there is no litigation or administrative proceeding pending or threatened
concerning the validity of Bonds, the corporate existence of the Agency or the title of the officers legally responsible for the
authorization, execution and delivery of the Bonds to their respective offices; (ii) certificates of the Agency to the effect that,
to the best knowledge of the Agency, respectively, the Preliminary Official Statement did not on the date of sale, and the final
Official Statement does not on the date of delivery contain any untrue statement of a material fact or omit to state a material
fact necessary in order to make the statements therein contained, in light of the circumstances under which they were made,
not misleading; and (iii) a receipt of the Agency showing that the purchase price of such Bonds has been received by the
* Preliminary, subject to change as set forth herein.
-7-
Agency.
Continuing Disclosure
In order to assist bidders in complying with SEC Rule 15c2-12(b)(5), the Agency will undertake, pursuant to the
Indenture and a Continuing Disclosure Certificate, to provide certain annual financial information, and notices of the
occurrence of certain events, if material. A description of this undertaking is set forth in the Preliminary Official Statement
and will be set forth in the final Official Statement.
Additional Information
Copies of the Indenture, this Official Notice Inviting Bids and the Preliminary Official Statement will be furnished to any
potential bidder upon request made to the Agency’s Financial Advisor at: Public Resources Advisory Group, 3550 Wilshire
Blvd., Suite 1630, Los Angeles, California 90010, (213) 380-9344.
Right to Modify or Amend
The Agency reserves the right to modify or amend this Official Notice Inviting Bids and the Official Bid Form including,
but not limited to the right to adjust and change the principal amount of the Bonds being offered; however, such notifications
or amendments shall be made not later than Tuesday, [November 30, 1999], by 1:00 p.m., PST (4:00 p.m., EST) and
communicated through Thompson Municipal News and by facsimile transmission to any qualified bidder timely requesting
such notice.
Bid Extension or Postponement
The Agency reserves the right to extend or postpone, from time to time, the date or time established for the receipt of
bids. Any such postponement will be announced via Thompson Municipal News. On any such alternative date or time for
receipt of bids, any bidder may submit a sealed and/or electronic bid for the purchase of the Bonds in conformity in all
respects with the provisions of this Official Notice Inviting Bids except for the date of sale and except for the changes
announced by Thompson Municipal News at the time the sale date and time are announced.
Dated: [ ]
Redevelopment Agency of the City of Santa Monica
By: ____________________________
* Preliminary, subject to change as set forth herein.
-8-
OFFICIAL BID FORM
$63,515,000*
Redevelopment Agency of the City of Santa Monica
Earthquake Recovery Redevelopment Project Area
Tax Allocation Bonds, Series 1999
[December 1, 1999]
Redevelopment Agency of the City of Santa Monica
c/o Charles M. Dennis
Department of Finance
City of Santa Monica
th
1717 4 Street, Suite 250
Santa Monica, CA 90401
Ladies and Gentlemen:
We hereby offer to purchase all of the $63,515,000* aggregate principal amount of the Redevelopment Agency of the
City of Santa Monica Earthquake Recovery Redevelopment Project Area Tax Allocation Bonds, Series 1999 (the “Bonds”),
more particularly described in your Official Notice Inviting Bids dated [ ], which is incorporated herein by
reference, and made a part hereof, at a purchase price of $ (which purchase price is not less
]
than 99.0% of the aggregate principal amount of the Bonds) plus accrued interest on the Bonds from [December 1, 1999to
the date of delivery. This offer is for Bonds bearing interest at the rates and in the form of serial bonds or term bonds with
mandatory sinking fund redemptions as set forth in the table on the following page.
Of the principal maturities set forth in the table on the following page, for those years, if any, which have been combined
into a term bond or term bonds, the principal amounts shown in the table shall be the mandatory sinking fund redemption
amounts in such years except that the amount shown in the year of the term bond maturity date shall mature in such year. The
bid is subject to acceptance not later than 27 hours after the expiration of the time established for the final receipt of bids.
(PLEASE CHECK ONE OF THE FOLLOWING TWO PARAGRAPHS)
[ ] There is enclosed herewith a certified check or cashier's check for $ drawn on a responsible bank
having an office in the City of Los Angeles payable in same day or next day funds to the order of the Redevelopment Agency
of the City of Santa Monica (the “Agency”).
[ ] A surety bond has been provided to the Agency in the amount of $ issued by an insurance company
rated AAA by Standard & Poor's and licensed to issue such a bond in the State of California, naming the Agency as
beneficiary and identifying the bidder whose deposit is guaranteed by the surety bond.
We have noted that payment of the purchase price is to be made in immediately available Federal Reserve Funds at the
time of delivery of the Bonds. If we are the successful bidder, we will (1) within one hour after being notified of the award of
the Bonds, advise the Authority of the initial public offering prices of the Bonds and (2) prior to delivery of the Bonds furnish
a certificate, acceptable to Bond Counsel, as to the “issue price” of the Bonds within the meaning of Section 1273 of the
Internal Revenue Code of 1986, as amended.
We have attached a list of the members of our account on whose behalf this offer is made.
* Preliminary, subject to change as set forth herein.
-9-
Serial Sinking Account
Maturity Payment
Maturity Principal Interest
(Check One Column)
July 1 Amount* Rate
2000 $ 850,000 %
2001 885,000 %
2002 930,000 %
2003 975,000 %
2004 1,025,000 %
2005 1,075,000 %
2006 1,135,000 %
2007 1,195,000 %
2008 1,260,000 %
2009 1,335,000 %
2010 1,410,000 %
2011 1,495,000 %
2012 1,580,000 %
2013 1,675,000 %
2014 1,780,000 %
2015 1,890,000 %
2016 2,005,000 %
2017 2,130,000 %
2018 2,265,000 %
2019 2,405,000 %
2020 2,560,000 %
2021 2,720,000 %
2022 2,890,000 %
2023 3,070,000 %
2024 3,265,000 %
2025 3,475,000 %
2026 3,695,000 %
2027 3,925,000 %
2028 4,175,000 %
2029 4,440,000 %
Our calculation of the true interest cost, which is considered to be informative only and not a part of the bid, is
__________________%.
We represent that we have full and complete authority to submit this bid on behalf of our bidding syndicate and the
undersigned will serve as the lead manager for the group if the Bonds are awarded pursuant to this bid. We certify (or
declare) under penalty of perjury under the laws of the State of California that this proposal is genuine, and not a sham or
collusive, nor made in the interest of or on behalf of any person not herein named, and that the bidder has not directly or
indirectly induced or solicited any other bidder to put in a sham bid or any other person, firm or corporation to refrain from
bidding, and that the bidder has not in any manner sought by collusion to secure for himself an advantage over any other
bidder.
Respectfully submitted:
Address for return of unsuccessful bid check:
Account Manager:
By:
* Preliminary, subject to change as set forth herein.
-10-