DATE, TIME, PLACE OF MEETING
The Calcasieu Parish School Board met in the Conference Room of the Calcasieu Parish School Board located at 1732 Kirkman Street, Lake Charles, Louisiana, on Tuesday, August 6, 2002, at 5:00 p.m. The meeting was called to order by John M. Falgout, President. The prayer was led by Elray Victorian; Mr. Armentor led the Pledge of Allegiance.
ROLL CALL
The roll was called and the following members were present:
Joe A. Andrepont, Randall C. Armentor, Ricky Blackwell, Wilridge P. Doucet, Clara F. Duhon, Jay L. Duhon, Carla C. Duplechin, John M. Falgout, L. J. "Berk" Fontenot, James W. Karr, Sr., Sheral A. LaVergne, James W. Pitre, Gregory P. Robert, Philip Tarver and Elray T. Victorian.
MINUTES APPROVED
On motion by Mr. Duhon, seconded by Mr. Andrepont and unanimously carried, the minutes of the regular meeting of July 23, 2002, were approved as presented.
Supplemental Agenda
By general consent the Supplemental Agenda was included as part of the regular agenda.
PRESENTATIONS
Mr. Falgout recognized Judge Tommy Quirk. Judge Quirk introduced himself and announced to the Board that he was seeking re-election for City Court Judge in
District A. Judge Quirk gave a brief overview of his platform and experience in the court system for over twenty years. Judge Quirk thanked the Board for allowing him to appear at the meeting.
Next, Mr. Falgout recognized Todd Ammons. Mr. Ammons introduced himself and announced to the Board that he was a candidate for the City Court Judge in District A. Mr. Ammons gave an overview of his platform and proposed changes he would enforce in the court system if elected. He thanked the Board for allowing him to appear at the meeting.
Mr. Falgout, on behalf of the Board, wished both candidates good luck with the election.
Lyondell Chemical Company Educational Fellowship Recipient
Mr. Falgout recognized Keith Faul, Community Relations and Training Coordinator at Lyondell Company. Mr. Faul made a presentation to Marsha McMillin, teacher at LeBlanc Middle School and the recipient of the Lyondell Chemical Company Educational Fellowship Award. Mr. Faul stated that the fellowship included an all-expense paid trip to England to participate with an international team in the excavation of a Roman fort. The Board congratulated Ms. McMillin.
TAKE APPROPRIATE ACTION
Resolution Authorizing Advertisement for Sale of Bonds for School District Number 23
Lake Charles, Louisiana
August 6, 2002
The Parish School Board of Calcasieu Parish, Louisiana, met in regular public session at 5:00 o’clock p.m. on Tuesday, August 6, 2002, at the regular meeting place of said Board in the Calcasieu Parish School Board Office Building, 1732 Kirkman Street, Lake Charles, Louisiana, pursuant to the provisions of written notice given to each and every member thereof and duly posted in the manner required by law.
President John M. Falgout, called the meeting to order and on roll call, the following members were present:
Joe A. Andrepont, Randy Armentor, Ricky Blackwell, Wilridge Doucet, Clara F. Duhon, J. L. “Jay” Duhon, Carla C. Duplechin, John M. Falgout, L. J. “Berk” Fontenot, James W. Karr, Sr., Sheral LaVergne, James W. Pitre, Greg Robert, Philip E. Tarver, and Elray T. Victorian
ABSENT: None
The meeting was called to order and the roll called with the above result.
The following resolution was thereupon introduced, and pursuant to motion made by Mr. Doucet and seconded by Ms. LaVergne, was adopted by the following vote:
YEAS: Mr. Andrepont, Mr. Armentor, Mr. Blackwell, Mr. Doucet, Mrs. Duhon, Mr. Duhon, Ms. Duplechin, Mr. Falgout, Mr. Fontenot, Mr. Karr, Ms. LaVergne, Mr. Pitre, Mr. Robert, Mr. Tarver, and Mr. Victorian
NAYS: None
RESOLUTION
A RESOLUTION AUTHORIZING ADVERTISEMENT FOR SALE OF $7,000,000 GENERAL OBLIGATION PUBLIC SCHOOL IMPROVEMENT BONDS OF SCHOOL DISTRICT NO. 23 OF CALCASIEU PARISH, LOUISIANA, 2002 SERIES.
BE IT RESOLVED by the Parish School Board of Calcasieu Parish, Louisiana, the governing authority of School District No. 23 of Calcasieu Parish, Louisiana as follows:
SECTION 1. $7,000,000 General Obligation Public School Improvement Bonds of School District No. 23 of Calcasieu Parish, Louisiana, 2002 Series (the “Bonds”), authorized by an election held in School District No. 23 on November 20, 1999, shall be sold as herein directed.
SECTION 2. Sealed bids shall be received for the purchase of the Bonds and the Bonds shall be opened in public session of the Calcasieu Parish School Board on September 17, 2002, at 5:00 o’clock p.m. Central Daylight (Louisiana) Time, at the regular meeting place of the Calcasieu Parish School Board, 1732 Kirkman Street, Lake Charles, Louisiana.
SECTION 3. In accordance with Article 1426 of Title 39 of the Louisiana Revised Statutes of 1950, as amended, notice of the sale of the Bonds shall be published one time at least seven clear calendar days before the date scheduled for the receipt of bids, in the Southwest Daily News, a newspaper published in Calcasieu Parish and of general circulation in School District No. 23 of Calcasieu Parish, and at least once in the Daily Journal of Commerce, a financial journal or newspaper containing a section devoted to municipal bond news published in the City of New Orleans, Louisiana, which publication shall be made at least forty-eight (48) hours in advance of the date scheduled for the receipt of bids. The notice of sale to be published shall be substantially in the following form:
NOTICE OF BOND SALE
$7,000,000
GENERAL OBLIGATION PUBLIC SCHOOL IMPROVEMENT BONDS
OF SCHOOL DISTRICT NO. 23 OF
CALCASIEU PARISH, LOUISIANA
2002 SERIES
SEALED BIDS will be received by the Calcasieu Parish School Board, acting as the governing authority of School District No. 23 of Calcasieu Parish, Louisiana (the “Issuer”), at the Parish School Board Office at 1732 Kirkman Street, Lake Charles, Louisiana, until 5:00 o’clock p.m., Central Daylight (Louisiana) Time, on Tuesday, the 17th DAY OF SEPTEMBER, 2002,
for the purchase of the following issue or issues of Bonds of School District No. 23 of Calcasieu Parish, Louisiana (the “Bonds”), authorized at a special election held within the Issuer on Saturday, November 20, 1999:
$7,000,000 (being the final series of an authorized issue of $27,000,000) General Obligation Public School Improvement Bonds, 2002 Series, maturing October 1 in each year in the principal amount as set forth opposite such year in the following table:
YEAR AMOUNT YEAR AMOUNT
2003 210,000 2013 345,000
2004 225,000 2014 365,000
2005 230,000 2015 380,000
2006 245,000 2016 400,000
2007 260,000 2017 420,000
2008 270,000 2018 440,000
2009 285,000 2019 460,000
2010 295,000 2020 485,000
2011 315,000 2021 510,000
2012 325,000 2022 535,000
The Bonds will be in fully registered form, dated October 1, 2002, will initially be one bond for each maturity with transfers in multiples of $5,000, and will be payable from and secured by unlimited ad valorem taxation. All Bonds of the same maturity must bear interest from date thereof until paid at one basic rate of interest to be designated by the bidder not exceeding nine (9%) percent per annum on any Bond in any interest payment period, said interest to be payable semi-annually on April 1 and October 1 of each year, beginning April 1, 2003.
Those Bonds maturing in the years 2003 to 2007, inclusive, shall not be subject to redemption prior to maturity. Those Bonds, or portions thereof in multiples of $5,000, maturing in the years 2008 to 2022, inclusive, shall be subject to redemption prior to maturity, at the option of the Issuer, in such order as the Issuer may determine and by lot within any maturity, on any interest payment date on or after October 1, 2007, at par and accrued interest to the date fixed for redemption.
The Bonds will be payable at a bank or trust company to be designated by the purchaser of the Bonds at the time of the sale thereof or within three (3) days of the date of such sale.
A certified or cashier's check in the amount of $140,000.00 drawn on an incorporated bank or trust company and payable to the order of School District No. 23 of Calcasieu Parish, Louisiana, must accompany each bid as a guarantee of good faith on the part of the bidder, to be forfeited as liquidated damages if such bid be accepted and the bidder fails to take up and pay for the Bonds. The check of the successful bidder will be retained uncashed by the Issuer and returned upon delivery of the Bonds and payment therefor. Checks of unsuccessful bidders will be promptly returned to each bidder’s representative or by certified mail.
All bids must be submitted on bid forms furnished by the Calcasieu Parish School Board without alteration or qualification. Bidders shall name one basic rate of interest for each Bond maturity not exceeding nine (9%) percent per annum on any Bond in any interest payment period to be expressed in a multiple of one-twentieth (1/20) or one-eighth (1/8) of one (1%) percent per annum. No bids for less than par and accrued interest from October 1, 2002 to the date of delivery of the Bonds or which specifies the cancellation of Bonds will be considered. Any premium bid must be paid in funds specified for the payment of the Bonds as part of the purchase price.
The Bonds will be awarded to the bidder offering to purchase the Bonds at such rate or rates of interest as will produce the lowest effective interest rate to the Issuer. The lowest effective interest rate will be determined in accordance with the “True” or “Canadian” interest cost method of calculation by doubling the semiannual interest rate (compounded semiannually) necessary to discount the debt service payments from the payment dates to the date of the Bonds and to the price bid, excluding the accrued interest from the date of the Bonds to the date of their delivery. If any bid for the Bonds shall be acceptable, a prompt award of the Bonds will be made. The right is expressly reserved to waive any irregularity in any bid or to reject any and all bids received.
The successful bidder shall make a bona fide public offering of the Bonds, and, as a condition to the Issuer's obligation to deliver the Bonds, the successful bidder must furnish to the Issuer within twenty-four hours after being notified of the award of the Bonds, the initial public offering prices of the Bonds. Upon Delivery of the Bonds, the successful bidder will furnish a certificate acceptable to Bond Counsel to the Issuer (i) specifying the reoffering prices at which a substantial amount of the Bonds was sold to the public (excluding bond houses, brokers and other intermediaries) and (ii) certifying as to the accuracy of such reoffering prices. Bond Counsel advises that (i) such certificate must be made on the best knowledge, information and belief of the successful bidder, (ii) the sale to the public of 10% or more in par amount of the Bonds of each maturity at (or below) the initial reoffering prices would be sufficient to certify as to the sale of a substantial amount of the Bonds, and (iii) reliance on other facts as a basis for such certification would require evaluation by Bond Counsel to assure compliance with the applicable provisions of the Internal Revenue Code of 1986, as amended (the “Code”).
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the bidder, any purchase of such insurance or commitment therefor shall be at the sole option and expense of the bidder and any increased costs of issuance of the Bonds resulting by reason of such insurance, unless otherwise paid, shall be paid by such bidder. Any failure of the Bonds to be so insured or of any such policy of insurance to be issued, shall not in any way relieve the purchaser of his contractual obligations arising from the acceptance of his proposal for the purchase of the Bonds.
It is anticipated that CUSIP identification numbers will be printed on the Bonds, but the failure to print such numbers shall not constitute cause for refusal by the successful bidder to accept delivery of and to pay for the Bonds. No CUSIP identification number shall be deemed to be part of the Bond or a part of the contract evidenced thereby, and no liability shall hereafter attach to the issuer or any officers or agents thereof because of or on account of such numbers. All expenses in relation to the printing of the CUSIP identification numbers on the Bonds shall be paid by the Issuer. However, the CUSIP Service Bureau charge for the assignment of such numbers shall be the responsibility of and shall be paid by the successful bidder.
A copy of the Issuer’s preliminary official statement may be obtained by contacting Joseph A. Delafield, Attorney at Law, 3401 Ryan Street, Suite 307, P. O. Box 4272, Lake Charles, Louisiana 70605/70606, Bond Counsel. The Preliminary Official Statement is in a form “deemed final” by the Issuer for purposes of SEC Rule 15c2-12(b)(1) but is subject to revision, amendment, and completion in a final official statement.
Promptly after the sale date, but in no event later than seven (7) business days after such date, the Issuer will provide the successful bidder with a reasonable number of final Official Statements, not to exceed one hundred (100) f.o.b. Lake Charles, Louisiana. Such final Official Statements may be obtained without cost to the successful bidder from the Issuer as set forth herein. Additional copies of the final Official Statement may be obtained up to three months following the sale of the Bonds by a request and payment of costs for reproduction.
The approving legal opinion of Joseph A. Delafield, Attorney at Law, of Lake Charles, Louisiana, and the transcript of record as passed upon, will be furnished to the successful bidder(s) without cost to it. The transcript will contain the usual closing proofs, including a certificate by the Issuer that up to the time of delivery, no litigation has been filed questioning the validity of the Bonds or the taxes necessary to pay the same.
For information relative to the Bonds not contained in the Notice of Bond Sale and the Official Statement, address The Honorable Jude W. Theriot, Superintendent of Schools of Calcasieu Parish, Louisiana and Ex-Officio Secretary of the Calcasieu Parish School Board, 1724 Kirkman Street, Lake Charles, Louisiana 70601; or Joseph A. Delafield, Esq., Bond Counsel, 3401 Ryan Street, Suite 307, P.O. Box 4272, Lake Charles, Louisiana 70605/70606.
SECTION 4. The Calcasieu Parish School Board hereby adopts the Notice of Bond Sale contained in Section 3 hereof as the official Notice of Bond Sale, which shall be sent to persons who seek further information with respect to the Bonds and which will form part of the contract of sale of the Bonds.
SECTION 5. The Calcasieu Parish School Board hereby adopts the following as an official bid form which shall be used by prospective bidders for the Bonds described herein, and which shall be supplied to all persons seeking information with respect to the Bonds:
We offer to purchase SEVEN MILLION AND NO/100 ($7,000,000) DOLLARS General Obligation Public School Improvement Bonds of School District No. 23 of Calcasieu Parish, Louisiana, 2002 Series, in the initial denominations of one Bond for each maturity, with transfers in multiples of $5,000.00, bearing interest payable semi-annually on April 1 and October 1 of each year, beginning April 1, 2003, maturing serially, WITH OPTION OF PRIOR PAYMENT, all in accordance with the Notice of Bond Sale and Official Statement, all the terms and conditions of which by reference are made a part hereof, and bearing interest at rates as follows, viz:
MATURITY PRINCIPAL INTEREST MATURITY PRINCIPAL INTEREST
DATE AMOUNT RATE PER DATE AMOUNT RATE PER
(Oct. 1) ANNUM (Oct. 1) ANNUM
2003 210,000 _____% 2013 345,000 _____%
2004 225,000 _____% 2014 365,000 _____%
2005 230,000 _____% 2015 380,000 _____%
2006 245,000 _____% 2016 400,000 _____%
2007 260,000 _____% 2017 420,000 _____%
2008 270,000 _____% 2018 440,000 _____%
2009 285,000 _____% 2019 460,000 _____%
2010 295,000 _____% 2020 485,000 _____%
2011 315,000 _____% 2021 510,000 _____%
2012 325,000 _____% 2022 535,000 _____%
We will pay the principal sum of SEVEN MILLION AND NO/100 ($7,000,000) DOLLARS, together with accrued interest from the date of the Bonds to the date of delivery, plus a premium in the amount of $_________________.
For your information, we calculate the lowest effective interest rate to School District No. 23 to be %, said rate to be determined in accordance with the “True” or “Canadian” interest cost method of calculation by doubling the semiannual interest rate (compounded semiannually) necessary to discount the debt service payments from the payment dates to the date of the Bonds and to the price bid, excluding the accrued interest from the date of the Bonds to the date of their delivery.
Bonds bid for herein will be delivered and shall be paid for on or about October 23, 2002, at such place in Louisiana, and on such business day and at such hour, as the Issuer shall fix on five business days' notice to the successful bidder, or at such other place and time as may be agreed upon with the successful bidder, it being understood that School District No. 23 will furnish to us, free of charge, at the time of delivery of the Bonds, the qualified approving legal opinion of Joseph A. Delafield, Attorney at Law, of Lake Charles, Louisiana, and a certified transcript of this proceeding.
In accordance with the Notice of Bond Sale, we enclose herewith (certified) (cashier's) check(s) number(s) drawn on of , in the amount of ONE HUNDRED FORTY THOUSAND AND NO/100 ($140,000.00) DOLLARS, which is tendered as evidence of our good faith in accordance with and under the provisions of the Official Statement and of the Notice of Bond Sale. Said check shall be returned to the undersigned upon award of the Bonds, provided this proposal is not accepted; otherwise, to be retained uncashed by School District No. 23 of Calcasieu Parish, Louisiana, and returned upon delivery of the Bonds and payment therefor, or to be cashed and forfeited as and for full liquidated damages in case of the failure of the undersigned to make such payment.
We acknowledge and understand the Bonds are not designated as “qualified tax-exempt obligations” pursuant to Section 265(b)(3)(B) of the Internal Revenue Code of 1986.
This bid complies with the terms stipulated in the aforesaid Notice of Bond Sale, the receipt of which Notice of Bond Sale is hereby acknowledged.
Respectfully submitted,
by:
Authorized Representative
And Associates
Bid accepted by resolution adopted by the Calcasieu Parish School Board, as governing authority of School District No. 23 of Calcasieu Parish, Louisiana, on this 17th day of September, 2002.
PRESIDENT
Calcasieu Parish School Board
SECTION 6. All resolutions and orders or parts thereof in conflict herewith be and the same are hereby repealed.
APPROVED AND ADOPTED this 6th day of August, 2002.
/s/ John M. Falgout
JOHN M. FALGOUT, President
Calcasieu Parish School Board
ATTEST:
/s/ Jude W. Theriot
JUDE W. THERIOT, Secretary
The following resolution was thereupon introduced, and pursuant to a motion made by Mr. Doucet and seconded by Ms. LaVergne, was adopted by the following vote:
YEAS: Mr. Andrepont, Mr. Armentor, Mr. Blackwell, Mr. Doucet, Mrs. Duhon, Mr. Duhon, Ms. Duplechin, Mr. Falgout, Mr. Fontenot, Mr. Karr, Ms. LaVergne, Mr. Pitre, Mr. Robert, Mr. Tarver, and Mr. Victorian
NAYS: None
RESOLUTION
A RESOLUTION ADOPTING THE PRELIMINARY DRAFT OF THE OFFICIAL STATEMENT TO BE PROVIDED THE INITIAL PURCHASER(S) OF $7,000,000 GENERAL OBLIGATION PUBLIC SCHOOL IMPROVEMENT BONDS OF SCHOOL DISTRICT NO. 23 OF CALCASIEU PARISH, LOUISIANA, 2002 SERIES, AND AUTHORIZING ITS DISTRIBUTION TO PROSPECTIVE BIDDERS FOR THE BONDS; AND AUTHORIZING, APPROVING AND DIRECTING THE TAKING OF ALL OTHER ACTIONS NECESSARY TO THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED BY THIS RESOLUTION.
WHEREAS, on November 20, 1999, an election was held in School District No. 23 of Calcasieu Parish, Louisiana, at which election the voters of School District No. 23 of Calcasieu Parish authorized said District to incur debt and issue bonds in an amount not to exceed $27,000,000, to run not to exceed twenty (20) years from the date thereof, with interest at a rate not exceeding twelve (12%) percent per annum for the purpose of improving school buildings and acquiring the necessary equipment and furnishings therefor, title to which shall be in the public; and
WHEREAS, as a result of said election, on February 23, 2000, the Issuer issued $10,000,000 General Obligation Public School Improvement Bonds of School District No. 23 of Calcasieu Parish, Louisiana, 2000 Series, and on August 28, 2001, 2002, the Issuer issued $10,000,000 General Obligation Public School Improvement Bonds of School District No. 23 of Calcasieu Parish, Louisiana, 2001 Series, described in the proposition has been duly authorized; and
WHEREAS, the Issuer now desires to authorize issuance of $7,000,000 General Obligation Public School Improvement Bonds of School District No. 23 of Calcasieu Parish, Louisiana, 2002 Series;
WHEREAS, the sale of the 2002 Series Bonds will be held on September 17, 2002; and
WHEREAS, the Calcasieu Parish School Board must distribute to prospective bidders for the initial sale of the Bonds certain information to aid and assist those persons or institutions interested in bidding for the Bonds, in the form of a Preliminary Official Statement;
WHEREAS, an Official Statement must be provided to the successful bidder (initial purchaser of the Bonds) by the Calcasieu Parish School Board, which said Official Statement must contain not only all of the pertinent information which a prospective bidder requires but also information not yet available; and
WHEREAS, it is necessary or desirable to designate by resolution, (i) the Preliminary Official Statement as the “near final official statement” within the meaning of Rule 15c2-12 of the Securities and Exchange Commission (the “Rule”) and to approve the form and distribution thereof, and (ii) the individual who, for and on behalf of this Board and School District No. 23, would make such a decision.
NOW THEREFORE, BE IT RESOLVED by the Parish School Board of Calcasieu Parish, Louisiana, as the governing authority of School District No. 23 of Calcasieu Parish, Louisiana as follows:
SECTION 1. Approval and Designation. There is hereby delegated to the Chief Financial Officer authority to designate the form of the Preliminary Official Statement, with such revisions, additions and appendices thereto as he may deem necessary, in his discretion, as the “near final official statement” within the meaning of the Rule. Such form, when so approved by the Chief Financial Officer, is hereby authorized to be distributed to prospective purchasers of the Bonds.
SECTION 2. Final Official Statement. The Official Statement shall describe the final terms of the Bonds approved by the resolution of the Calcasieu Parish School Board authorizing issuance thereof and shall constitute the “final official statement” within the meaning of the Rule.
SECTION 3. Ratification. All actions heretofore taken by the Calcasieu Parish School Board and by the officers thereof or on their behalf, not inconsistent herewith directed toward preparation and delivery of the Preliminary Official Statement are hereby ratified, approved and confirmed.
SECTION 4. The Preliminary Official Statement. The preliminary draft of the Official Statement (a copy of which is on file in the office of the Superintendent of Schools of Calcasieu Parish) is hereby approved and adopted and copies thereof shall be distributed to prospective bidders for the Bonds.
SECTION 5. Other Matters. By the passage of this resolution, the Board does not intend to approve, nor is it approving hereby, any matters otherwise relating to execution and issuance of the Bonds.
SECTION 6. Severability. If any paragraph, clause, section or provision of this resolution is judicially adjudged invalid or unenforceable, such judgement shall not affect, impair or invalidate the remaining paragraphs, clauses, sections or provisions hereof.
SECTION 7. Repealer. All resolutions, ordinances, or orders in conflict herewith, be, to the extent of such conflict, and they are hereby repealed.
APPROVED AND ADOPTED this 6th day of August, 2002.
/s/ John M. Falgout
JOHN M. FALGOUT, President
Calcasieu Parish School Board
ATTEST:
/s/ Jude W. Theriot
JUDE W. THERIOT, Secretary
(Other business not pertinent to the above appears in the minutes of the meeting.) Pursuant to motion duly made and carried, the Parish School Board adjourned.
/s/ John M. Falgout
JOHN M. FALGOUT, President
Calcasieu Parish School Board
ATTEST:
/s/ Jude W. Theriot
JUDE W. THERIOT, Secretary
STATE OF LOUISIANA
PARISH OF CALCASIEU
I, JUDE W. THERIOT, do hereby certify that I am the duly qualified and appointed Secretary of the Calcasieu Parish School Board, the governing authority of School District No. 23 of Calcasieu Parish, Louisiana.
I further certify that the above and foregoing is a true and correct copy of an excerpt from the minutes of a meeting of the Calcasieu Parish School Board held on August 6, 2002, insofar as said minutes pertain to the matters therein set out, and that the foregoing resolutions are true and correct copies of the original resolutions adopted at said meeting as they appear officially of record in my possession.
IN WITNESS WHEREOF, witness my official signature and the impress of the official seal of the Calcasieu Parish School Board, governing authority of School District No. 23 of Calcasieu Parish, Louisiana, on this 6th day of August, 2002.
______________________________________
JUDE W. THERIOT, Secretary
Resolution Authorizing Advertisement for Sale of Bonds for School District Number 31
Lake Charles, Louisiana
August 6, 2002
The Parish School Board of Calcasieu Parish, Louisiana, met in regular public session at 5:00 o’clock p.m. on Tuesday, August 6, 2002, at the regular meeting place of said Board in the Calcasieu Parish School Board Office Building, 1732 Kirkman Street, Lake Charles, Louisiana, pursuant to the provisions of written notice given to each and every member thereof and duly posted in the manner required by law.
President John M. Falgout, called the meeting to order and on roll call, the following members were present:
Joe A. Andrepont, Randy Armentor, Ricky Blackwell, Wilridge Doucet, Clara F. Duhon, J. L. “Jay” Duhon, Carla C. Duplechin, John M. Falgout, L. J. “Berk” Fontenot, James W. Karr, Sr., Sheral LaVergne, James W. Pitre, Greg Robert, Philip E. Tarver, and Elray T. Victorian
ABSENT: None
The meeting was called to order and the roll called with the above result.
The following resolution was thereupon introduced, and pursuant to motion made by Ms. LaVergne and seconded by Mr. Victorian, was adopted by the following vote:
YEAS: Mr. Andrepont, Mr. Armentor, Mr. Blackwell, Mr. Doucet, Mrs. Duhon, Mr. Duhon, Ms. Duplechin, Mr. Falgout, Mr. Fontenot, Mr. Karr, Ms. LaVergne, Mr. Pitre, Mr. Robert, Mr. Tarver, and Mr. Victorian
NAYS: None
RESOLUTION
A RESOLUTION AUTHORIZING ADVERTISEMENT FOR SALE OF $10,000,000 GENERAL OBLIGATION PUBLIC SCHOOL IMPROVEMENT BONDS OF SCHOOL DISTRICT NO. 31 OF CALCASIEU PARISH, LOUISIANA, 2002 SERIES B.
BE IT RESOLVED by the Parish School Board of Calcasieu Parish, Louisiana, the governing authority of School District No. 31 of Calcasieu Parish, Louisiana as follows:
SECTION 1. $10,000,000 General Obligation Public School Improvement Bonds of School District No. 31 of Calcasieu Parish, Louisiana, 2002 Series B (the “Bonds”), authorized by an election held in School District No. 31 on March 14, 2000, shall be sold as herein directed.
SECTION 2. Sealed bids shall be received for the purchase of the Bonds and the Bonds shall be opened in public session of the Calcasieu Parish School Board on September 17, 2002, at 5:00 o’clock p.m. Central Daylight (Louisiana) Time, at the regular meeting place of the Calcasieu Parish School Board, 1732 Kirkman Street, Lake Charles, Louisiana.
SECTION 3. In accordance with Article 1426 of Title 39 of the Louisiana Revised Statutes of 1950, as amended, notice of the sale of the Bonds shall be published one time at least seven clear calendar days before the date scheduled for the receipt of bids, in the Southwest Daily News, a newspaper published in Calcasieu Parish and of general circulation in School District No. 31 of Calcasieu Parish, and at least once in the Daily Journal of Commerce, a financial journal or newspaper containing a section devoted to municipal bond news published in the City of New Orleans, Louisiana, which publication shall be made at least forty-eight (48) hours in advance of the date scheduled for the receipt of bids. The notice of sale to be published shall be substantially in the following form:
NOTICE OF BOND SALE
$10,000,000
GENERAL OBLIGATION PUBLIC SCHOOL IMPROVEMENT BONDS
OF SCHOOL DISTRICT NO. 31 OF
CALCASIEU PARISH, LOUISIANA
2002 SERIES B
SEALED BIDS will be received by the Calcasieu Parish School Board, acting as the governing authority of School District No. 31 of Calcasieu Parish, Louisiana (the “Issuer”), at the Parish School Board Office at 1732 Kirkman Street, Lake Charles, Louisiana, until 5:00 o’clock p.m., Central Daylight (Louisiana) Time, on Tuesday, the
17th DAY OF SEPTEMBER, 2002,
for the purchase of the following issue or issues of Bonds of School District No. 31 of Calcasieu Parish, Louisiana (the “Bonds”), authorized at a special election held within the Issuer on Saturday, March 14, 2000:
$10,000,000 (being the final series of an authorized issue of $38,000,000) General Obligation Public School Improvement Bonds, 2002 Series B, maturing October 1 in each year in the principal amount as set forth opposite such year in the following table:
YEAR AMOUNT YEAR AMOUNT
2003 300,000 2013 490,000
2004 320,000 2014 520,000
2005 335,000 2015 540,000
2006 350,000 2016 570,000
2007 365,000 2017 600,000
2008 385,000 2018 630,000
2009 405,000 2019 660,000
2010 430,000 2020 695,000
2011 445,000 2021 725,000
2012 470,000 2022 765,000
The Bonds will be in fully registered form, dated October 1, 2002, will initially be one bond for each maturity with transfers in multiples of $5,000, and will be payable from and secured by unlimited ad valorem taxation. All Bonds of the same maturity must bear interest from date thereof until paid at one basic rate of interest to be designated by the bidder not exceeding nine (9%) percent per annum on any Bond in any interest payment period, said interest to be payable semi-annually on April 1 and October 1 of each year, beginning April 1, 2003.
Those Bonds maturing in the years 2003 to 2007, inclusive, shall not be subject to redemption prior to maturity. Those Bonds, or portions thereof in multiples of $5,000, maturing in the years 2008 to 2022, inclusive, shall be subject to redemption prior to maturity, at the option of the Issuer, in such order as the Issuer may determine and by lot within any maturity, on any interest payment date on or after October 1, 2007, at par and accrued interest to the date fixed for redemption.
The Bonds will be payable at a bank or trust company to be designated by the purchaser of the Bonds at the time of the sale thereof or within three (3) days of the date of such sale.
A certified or cashier's check in the amount of $200,000.00 drawn on an incorporated bank or trust company and payable to the order of School District No. 31 of Calcasieu Parish, Louisiana, must accompany each bid as a guarantee of good faith on the part of the bidder, to be forfeited as liquidated damages if such bid be accepted and the bidder fails to take up and pay for the Bonds. The check of the successful bidder will be retained uncashed by the Issuer and returned upon delivery of the Bonds and payment therefor. Checks of unsuccessful bidders will be promptly returned to each bidder’s representative or by certified mail.
All bids must be submitted on bid forms furnished by the Calcasieu Parish School Board without alteration or qualification. Bidders shall name one basic rate of interest for each Bond maturity not exceeding nine (9%) percent per annum on any Bond in any interest payment period to be expressed in a multiple of one-twentieth (1/20) or one-eighth (1/8) of one (1%) percent per annum. No bids for less than par and accrued interest from October 1, 2002 to the date of delivery of the Bonds or which specifies the cancellation of Bonds will be considered. Any premium bid must be paid in funds specified for the payment of the Bonds as part of the purchase price.
The Bonds will be awarded to the bidder offering to purchase the Bonds at such rate or rates of interest as will produce the lowest effective interest rate to the Issuer. The lowest effective interest rate will be determined in accordance with the “True” or “Canadian” interest cost method of calculation by doubling the semiannual interest rate (compounded semiannually) necessary to discount the debt service payments from the payment dates to the date of the Bonds and to the price bid, excluding the accrued interest from the date of the Bonds to the date of their delivery. If any bid for the Bonds shall be acceptable, a prompt award of the Bonds will be made. The right is expressly reserved to waive any irregularity in any bid or to reject any and all bids received.
The successful bidder shall make a bona fide public offering of the Bonds, and, as a condition to the Issuer's obligation to deliver the Bonds, the successful bidder must furnish to the Issuer within twenty-four hours after being notified of the award of the Bonds, the initial public offering prices of the Bonds. Upon Delivery of the Bonds, the successful bidder will furnish a certificate acceptable to Bond Counsel to the Issuer (i) specifying the reoffering prices at which a substantial amount of the Bonds was sold to the public (excluding bond houses, brokers and other intermediaries) and (ii) certifying as to the accuracy of such reoffering prices. Bond Counsel advises that (i) such certificate must be made on the best knowledge, information and belief of the successful bidder, (ii) the sale to the public of 10% or more in par amount of the Bonds of each maturity at (or below) the initial reoffering prices would be sufficient to certify as to the sale of a substantial amount of the Bonds, and (iii) reliance on other facts as a basis for such certification would require evaluation by Bond Counsel to assure compliance with the applicable provisions of the Internal Revenue Code of 1986, as amended (the “Code”).
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the bidder, any purchase of such insurance or commitment therefor shall be at the sole option and expense of the bidder and any increased costs of issuance of the Bonds resulting by reason of such insurance, unless otherwise paid, shall be paid by such bidder. Any failure of the Bonds to be so insured or of any such policy of insurance to be issued, shall not in any way relieve the purchaser of his contractual obligations arising from the acceptance of his proposal for the purchase of the Bonds.
It is anticipated that CUSIP identification numbers will be printed on the Bonds, but the failure to print such numbers shall not constitute cause for refusal by the successful bidder to accept delivery of and to pay for the Bonds. No CUSIP identification number shall be deemed to be part of the Bond or a part of the contract evidenced thereby, and no liability shall hereafter attach to the issuer or any officers or agents thereof because of or on account of such numbers. All expenses in relation to the printing of the CUSIP identification numbers on the Bonds shall be paid by the Issuer. However, the CUSIP Service Bureau charge for the assignment of such numbers shall be the responsibility of and shall be paid by the successful bidder.
A copy of the Issuer’s preliminary official statement may be obtained by contacting Joseph A. Delafield, Attorney at Law, 3401 Ryan Street, Suite 307, P. O. Box 4272, Lake Charles, Louisiana 70605/70606, Bond Counsel. The Preliminary Official Statement is in a form “deemed final” by the Issuer for purposes of SEC Rule 15c2-12(b)(1) but is subject to revision, amendment, and completion in a final official statement.
Promptly after the sale date, but in no event later than seven (7) business days after such date, the Issuer will provide the successful bidder with a reasonable number of final Official Statements, not to exceed one hundred (100) f.o.b. Lake Charles, Louisiana. Such final Official Statements may be obtained without cost to the successful bidder from the Issuer as set forth herein. Additional copies of the final Official Statement may be obtained up to three months following the sale of the Bonds by a request and payment of costs for reproduction.
The approving legal opinion of Joseph A. Delafield, Attorney at Law, of Lake Charles, Louisiana, and the transcript of record as passed upon, will be furnished to the successful bidder(s) without cost to it. The transcript will contain the usual closing proofs, including a certificate by the Issuer that up to the time of delivery, no litigation has been filed questioning the validity of the Bonds or the taxes necessary to pay the same.
For information relative to the Bonds not contained in the Notice of Bond Sale and the Official Statement, address The Honorable Jude W. Theriot, Superintendent of Schools of Calcasieu Parish, Louisiana and Ex-Officio Secretary of the Calcasieu Parish School Board, 1724 Kirkman Street, Lake Charles, Louisiana 70601; or Joseph A. Delafield, Esq., Bond Counsel, 3401 Ryan Street, Suite 307, P.O. Box 4272, Lake Charles, Louisiana 70605/70606.
SECTION 4. The Calcasieu Parish School Board hereby adopts the Notice of Bond Sale contained in Section 3 hereof as the official Notice of Bond Sale, which shall be sent to persons who seek further information with respect to the Bonds and which will form part of the contract of sale of the Bonds.
SECTION 5. The Calcasieu Parish School Board hereby adopts the following as an official bid form which shall be used by prospective bidders for the Bonds described herein, and which shall be supplied to all persons seeking information with respect to the Bonds:
We offer to purchase TEN MILLION AND NO/100 ($10,000,000) DOLLARS General Obligation Public School Improvement Bonds of School District No. 31 of Calcasieu Parish, Louisiana, 2002 Series B, in the initial denominations of one Bond for each maturity, with transfers in multiples of $5,000.00, bearing interest payable semi-annually on April 1 and October 1 of each year, beginning April 1, 2003, maturing serially, WITH OPTION OF PRIOR PAYMENT, all in accordance with the Notice of Bond Sale and Official Statement, all the terms and conditions of which by reference are made a part hereof, and bearing interest at rates as follows, viz:
MATURITY PRINCIPAL INTEREST MATURITY PRINCIPAL INTEREST
DATE AMOUNT RATE PER DATE AMOUNT RATE PER
(Oct. 1) ANNUM (Oct. 1) ANNUM
2003 300,000 _____% 2013 490,000 _____%
2004 320,000 _____% 2014 520,000 _____%
2005 335,000 _____% 2015 540,000 _____%
2006 350,000 _____% 2016 570,000 _____%
2007 365,000 _____% 2017 600,000 _____%
2008 385,000 _____% 2018 630,000 _____%
2009 405,000 _____% 2019 660,000 _____%
2010 430,000 _____% 2020 695,000 _____%
2011 445,000 _____% 2021 725,000 _____%
2012 470,000 _____% 2022 765,000 _____%
We will pay the principal sum of TEN MILLION AND NO/100 ($10,000,000) DOLLARS, together with accrued interest from the date of the Bonds to the date of delivery, plus a premium in the amount of $_________________.
For your information, we calculate the lowest effective interest rate to School District No. 31 to be %, said rate to be determined in accordance with the “True” or “Canadian” interest cost method of calculation by doubling the semiannual interest rate (compounded semiannually) necessary to discount the debt service payments from the payment dates to the date of the Bonds and to the price bid, excluding the accrued interest from the date of the Bonds to the date of their delivery.
Bonds bid for herein will be delivered and shall be paid for on or about October 16, 2002, at such place in Louisiana, and on such business day and