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HomeMy WebLinkAboutReso 1970-5614RESOLUTION NO. 5614 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, DIRECTING THE CITY CLERK TO PUBLISH NOTICE INVITING SEALED PROPOSALS FOR BONDS OF SAID CITY WHEREAS, <a~ r~so'.fut.ixvt:~:: providing for the issuance of bonds of the City of Chula Vista, California, in the amount of $1,500,000 to be designated '°1970 Police Facilities Bonds" has been introduced, and WHEREAS, it is desirable that said bonds be sold. NOW, THEREFORE, the City Council of the City of Chula Vista, California, DOES HEREBY RESOLVE, DETERMINE AND ORDER as follows: Section 1. That said bonds be sold and that sealed bids or proposals for the purchase of said bonds be received up to the time stated in the notice hereinafter set forth. Section 2. That the City Clerk be and he is hereby authorized and directed to publish said notice once in the CHULA VISTA STAR NEWS, a newspaper of general circulation published in said city, said publica- tion to be at least seven days prior to the date for receiving bids. Section 3. That said notice shall be substantially as follows NOTICE INVITING BIDS ON $1,500,000 GENERAL OBLIGATION BONDS OF THE CITY OF CHULA VISTA, CALIFORNIA. NOTICE IS HEREBY GIVEN that sealed proposals for the purchase of $1,500,000 par value general obli- gation bonds of the City of Chula Vista will be received by the City Council of said city at the place and up to the time below specified. TIME: 2:00 P .M. May 19, 1970 PLACE: Council Chambers City Hall 276 Guava Avenue Chula Vista, California MAILED BIDS: City of Chula Vista 276 Guava Avenue Chula Vista, California Attention: City Clerk OPENING OF BIDS: The bids will be opened at the meeting of said City Council to be held May 19, 1970, at 2:00 o'clock P.M. at the City Ha11 of said city. ISSUE: $1,500,000 designated "1970 Police Facilities Bonds" consisting of 300 bonds, numbered 1 to 300, both inclusive, of the denomination of $5000 each, dated June 1, 1970. ~'-"~ ~ ~ ~~ ~~~ --~~ ~' MATURITIES: The bonds will mature in consecutive numerical order on June 1 in the amounts for each of the several years as follows: 1972-1975 $75,000 1976-1990 80,000 INTEREST: The bonds shall bear interest at a rate or rates to be fixed upon the sale thereof but not to exceed 6~ per annum, payable semiannually on June 1 and December 1 of each year from the date of the bonds. PAYMENT: Said bonds and the interest thereon will be payable in lawful money of the United States of America at the office of the City Treasurer of the City of Chula Vista, California, in said City or at any paying agent of the City in San Diego, California, Los Angeles, California, Chicago, Illinois or New York, New York at the option of the holder thereof. REGISTRATION: The bonds will be coupon bonds registerable only as to both principal and interest, and the bonds may be discharged from registration, all in accord- ance with the provisions in the resolution providing for the issuance of the bonds. REDEMPTION: The bonds maturing on or prior to June 1, 1980 shall not be subject to call or redemption prior to maturity. The bonds maturing on or after June 1, 1981, or any of them, may be called before maturity and redeemed at the option of the City Council of said city on June 1, 1980, or on any interest payment date thereafter prior to maturity, at a redemption price for each redeemable .- ~ bond equal to the principal amount thereof, plus a premium equal to one quarter of one percent (1/490 for each year or fraction of a year from the redemption date to the maturity date of the bond. All or any of the bonds subject to call may be called for redemption at any one time. If less than all of the bonds are redeemed at any one time, such bonds shall be redeemed only in inverse order of maturity and number beginning with the highest numbered bond. PURPOSE OF ISSUE: The proceeds from the sale of the bonds will be used for additions to and improve- ment of existing City administrative facilities, the con- struction of a city police building and necessarily related facilities. SECURITY: Said bonds are issued pursuant to Article 1, Chapter 4, Division 4, Title 4 (Section 43600 et seq.) of the Government Code of the State of California, sometimes known as the Municipal Bond Act of 1901. For the purpose of paying the principal of and interest on said bonds, said Act requires that the City Council shall at the time of fixing the general tax levy, and annually thereafter until said bonds are paid or until there is a sum i.n the treasury of said city set apart for that purpose sufficient to meet all payments of principal of and interest on said bonds as they become due, levy and collect a tax sufficient to pay the interest on said bonds as it falls due and to constitute a sinking fund for the payment of the principal on or before maturity. Said tax shall be i~. addition to all other taxes levied for municipal purposes and shall be levied and collected as other city taxes. 3. TERMS OF SALE Interest Rate: The maximum rate bid may not exceed 6~ per annum, payable semiannually. Each rate bid must be a multiple of 1/20 of 1~. No bond shall bear more than one interest rate, and all bonds of the same maturity shall bear the same rate. Each bond must bear interest at the rate specified in the bid from its date to its fixed maturity date. Only one coupon will be attached to each bond for each installment of interest thereon, and bids providing for additional or supplemental coupons will be re,~ected. The repetition of any rate will not be considered the bidding of an additional rate. The rate on any maturity or group of maturities shall not be more than 2,~ higher than the interest rate on any other maturity or group of maturities. Award: The bonds shall be sold for cash only. All bids must be for not less than all of the bonds hereby offered for sale and each bid shall state that the bidder offers par and accrued interest to the date of delivery, the premium, if any, and the interest rate or rates not to exceed those specified herein, at which the bidder offers to 'buy said bonds. Each bidder shall state in his bid the total net interest cost in dollars and the average net interest rate determined thereby, which shall be considered informative only and not a part of the bid. Highest Bidder: The bonds will be awarded to the highest responsible bidder or bidders considering the interest rate or rates specified and the premium offered, ~. ,----~ _ ~- / .~C' f i if any. The highest bid will be determined by deducting the amount of the premium (if any) from the total amount of interest which the city would be required to pay from the date of said bonds to the respective maturity dates thereof at the coupon rate or rates specified in the bid, and the award will be made on the basis of the lowest net interest cost to the city. The purchaser must pay accrued interest from the date of the bonds to the date of delivery computed on a 360-day year basis. The cost of printing the bonds will be borne by the city. Right of Refection: The city reserves the right, in its discretion, to reject any and all bids and to the extent not prohibited by law to waive any irregularity or informality in any bid. Prompt Award: The city will take action awarding the bonds or rejecting all bids not later than twenty-six (26) hours after the time herein prescribed for the receipt of proposals; provided that the award may be made after the expiration of the specified time if the bidder shall not have given to the City Council notice in writing of the withdrawal of such proposal. Place of Delivery: Delivery of said bonds will be made to the successful bidder at Jeffries Banknote Company, 1330 w. Pico Boulevard, Los Angeles, California. Prompt Delivery; Cancellation for Late Delivery: It is expected that said bonds will be delivered to the successful bidder within 30 days from the date of sale thereof. The successful bidder shall have the right, at _- _ . 1" ` ~ ( fir`/ --- his option, to cancel the contract of purchase if the city shall fail to execute the bonds and tender them for delivery within 60 days from the date herein fixed for the receipt of bids, and in such event the successful bidder shall be entitled to the return of the check accompanying his bid. Form of Bid: Each bid, together with the bid check, must be in a sealed envelope, addressed to the city with the envelope and bid clearly marked "Proposal for 1970 Police Facilities Bonds". Bid Check: A certified or cashier's check on a responsible bank or trust company in the amount of $30,000, payable to the order of the city must accompany each propo- sal as a guaranty that the bidder, if successful, will accept and pay for said bonds in accordance with the terms of his bid. The check accompanying any accepted proposal shall be applied on the purchase price or, if such proposal is accepted but not performed, unless such failure of per- formance shall be caused by any act or omission of the city, shall then be cashed and the proceeds retained by the city. The check accompanying each unaccepted proposal will be returned promptly. Chan€~e in Tax Exempt Status: At any time before the bonds are tendered for delivery, the successful bidder may disaffirm and withdraw the proposal if the interest received by private holders from. bonds of the same type and character shall be declared to be taxable income under present federal income tax laws, either by a ruling of the Internal ~ '~ Revenue Service or by a decision of any federal court, or shall be declared taxable or required to be taken into account in computing any federal income taxes, by the terms of any federal income tax law enacted subsequent to the date of this notice. Leal Opinion: The unqualified opinion of O'Melveny & Myers, attorneys, approving the validity of said bonds will be furnished the successful bidder at or prior to the time of delivery of the bonds, at the expense of the city. A copy of such opinion, certified by an officer of the city by his facsimile signature will be printed on the back of each bond. No charge will be made to the purchaser for such printing or certification. No Litigation Certificate: At the time of payment for and delivery of said bonds, the city will fur- Wish the successful bidder a certificate that there is no litigation pending affecting the validity of the bonds. INFORMATION AVAILABLE: Request for information concerning the city should be addressed to: Stone & Youngberg 131~F Russ Building San Francisco, California 9~410~ GIVEN by order of the City Council of the City of Chula Vista, California, adopted April 2/, 1970. '~" ~ ~ ~-, _. r G ft aT <. Ci y of the City Chula Vista, California ~~ ADOPTED AP'D APPROVED by the CITY COUNCIL of the CITY OF CEULA j1ISTA CALIFORNIA, this 21st day of April , 1970 by the following vote, to-wit: AYES: Councilmen Scott, Hobel, Hamilton, Hyde NAYES: Councilmen None ALSENT: Councilmen None Mayor of the City of Chula Vl.sta ~.. ATTEST _~-t_-f_t.-E-Y ~ / c.~ ,~~~~,. City Clerk STATE OF CALIFORNIA ) COliNTY OF SAPd DIEGO ) ss. CITY OF CHULA VISTA ) I, KENNETH p. CA.~IPBFLL, City Clerk of the City of Chula Vista, Caltro~nia, DO IiEREBY CERTIFY that the above and foregoing is a full, true and correct c:wy ~~t and that the same has not been amended or revealed. DATED City Clerk ~ --