HomeMy WebLinkAboutReso 1969-5267
RESOLUTION NO. 5267
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA, PROVIDING FOR THE ISSUANCE OF NEGOTIABLE NOTES
IN THE TOTAL AMOUNT OF ONE MILLION DOLLARS
The City Council of the City of Chula Vista does hereby
resolve as follows:
WHEREAS, funds are needed to meet the immediate requirements
of the City of Chula Vista, including but not limited to, the payment
of current expenses, capital expenditure, and the discharge of any
obligations or indebtedness of said City, and
WHEREAS, the City may borrow for said purposes such indebted-
ness, to be represented by notes issued to the lender pursuant to
Article 7.6, Chapter 4, Part 1, Division 2, Title 5, of the Government
Code of the State of California, and
WHEREAS, the Charter of the City of Chula Vista contains
no provision therein which would prohibit the exercise of the particu-
lars set forth in Section 53850, et seq, of the Government Code of
the State of California, and
WHEREAS, the City Council of the City of Chula Vista, by
Resolution No. 5211, approved on the 27th day of May, 1969, authorized
the Finance Officer of the City of Chula Vista to seek competitive bids
for the loan of such sum of such funds in the sum of $1,000,000.00, and
WHEREAS, as a result of said bidding process, two bids were
received on June 17, 1969, and were opened in the Council Chambers in
the City of Chula Vista by said Finance Officer, and
WHEREAS, said bids were (1) Bank of America, National Trust
& Savings Association, submitting a bid offer to loan the sum of
$1,000,000.00 at an interest rate of 6o per annum upon five (5)
negotiable notes in the denomination of $200,000.00, to be made pay-
able on June 30, 1970 with interest to date of payment; and (2) Southern
California First National Bank, submitting a bid offer to loan the
sum of $1,000,000.00 at an interest rate of 5.900 per annum upon five
(5) negotiable notes in the denomination of $200,000.00 to be made
payable on June 30, 1970 with interest to date of payment, and
WHEREAS, the lowest responsible bid received was that of
the Southern California First National Bank.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Chula Vista as follows:
Section I: That this Council finds that it is necessary
for the City of Chula Vista to issue five (5) negotiable notes in the
denomination of $200,000.00 each, for a total amount of $1,000,000.00
in order to meet the immediate requirements of said City.
Section II: The taxes, income, revenue, cash receipts and
other moneys to be received by said City during the current fiscal
year are estimated to be $6,162,601.00. The amount of the notes hereby
authorized to be issued, together with other notes outstanding, if any,
does not exceed 850 of the uncollected portion of said moneys.
Section III: Said notes shall be dated as of the date of
delivery and shall be in the denomination of $200,000.00, to be paid
on June 30, 1970, and shall not be callable prior to said date of
maturity and shall bear interest at the rate of 5.900 per annum, pay-
able at the maturity thereof.
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Section IV: Both the principal of, and the interest on,
said notes shall be payable in lawful money of the United States of
America at the Office of the Finance Officer in the City of Chula
Vista, State of California.
Section V: Said notes shall be payable from taxes, income,
revenues, cash receipts or other moneys of the City of Chula Vista,
to be received during the fiscal year 1969-70, said moneys being
hereby pledged to repay said notes; provided, however, that if said
moneys or any portion thereof, when received by the City, will be
encumbered for a special purpose other than the repayment of said
notes, then, pursuant to Section 53856 of the Government Code, an
equivalent amount of the proceeds of said notes shall be set aside
and used for said special purpose; and provided, further, that said
notes, with interest thereon, may be paid from any other moneys of
the City lawfully available therefor.
Section VI: Said notes shall be signed by the Mayor and
the Finance Officer, and countersigned by the City Clerk, and shall
be in substantially the following form:
CITY OF CHULA VISTA
NEGOTIABLE NOTE
FOR VALUE RECEIVED, the City of Chula Vista, California, a
municipal corporation, promises to pay to Southern California First
National Bank or bearer, on June 30, 1970, the sum of $200,000.00
with interest thereon payable at the maturity date thereof, June 30,
1970, at the rate of 5.900 per annum from the date hereof to said
date of maturity. Both principal and interest are payable in lawful
money of the United States of America at the Office of the Finance
Officer of the City of Chula Vista, State of California.
The principal of, and the interest on this note, are payable
from taxes, income, revenue, cash receipts or other moneys of the
City of Chula Vista to be received during the fiscal year 1969-70,
said moneys being pledged for the payment of this note and the interest
hereon. Notwithstanding said pledge, this note is a general obligation
of the City and, to the extent not paid from said moneys, shall be
paid with interest hereon from any other moneys of the City lawfully
available therefor.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts,
conditions and things required by law to exist, happen and be performed
precedent to and in the issuance of this note have existed, happened
and been performed in due time, form and manner as required by law,
and that the amount of this note, together with all other indebtedness
of the City, does not exceed any limit prescribed by the laws or the
Constitution of the State of California.
IN WITNESS WHEREOF, said City of Chula Vista has caused this
note to be signed by the Mayor and Finance Officer of said City, and
countersigned by the City Clerk of the City, and sealed with the
corporate seal of said City, and has 'c aus;ed this note to pe dated
the 2nd day of July, 1969. /.
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ayor ot~,~ile
Finance O
Vista
COUNTERSIGNED:
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C"i-t Glerk of the City~ula Vista
(SEAL)
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Chula V~'sta
cer of the City of Chula
Section VII: This City Council hereby finds and determines that
it is necessary and desirable that the City borrow from the Southern
California First National Bank the sum of $1,000,000.00, such indebted-
ness to be represented by five (5) negotiable notes as authorized hereby
and the Mayor and the Finance Officer are authorized to sign said notes
and the City Clerk is authorized to countersign said notes and to date
and seal said notes on the date of delivery thereof. Said notes shall be
issued according to the terms and substantially in the form provided in
this resolution.
Section VIII: This resolution shall constitute acceptance of the
offer of Southern California First National Bank above-referred to.
Presente~,~ by ~;
Gdrdon K. Grant, Finance Officer
Approved as to form by
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J George D., indberg, City~Attorne
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ADOPTED At?D APPROVED by the CITY COUNCIL of the CITY OF CHULA VISTA
CALIFORNIA, this 1st day of July , 19 69 by the following vote,
to-wit:
AYES: Councilmen Hamilton, McCorquodale, McAllister, Scott, Sylvester
NAYES: Councilmen None
ABSENT: Councilmen None
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City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
I, KENNETH P. CAMPBELL, City Clerk of the city of Chula Vista, California,
DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
Resolution No. 526? and that the same has not been amended
or repealed.
DATED: July 1, 1869
City Clerk`
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