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HomeMy WebLinkAboutReso 1965-38816/65-1 RESOLUTION N0. 3881 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, an ordinance providing for the issuance of bonds of the City of Chula Vista California, in the amount of $ 895,000 to be designated 1965 GOLF COURSE 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 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- Lion to be at least seven days prior to the date for receiving bids. Section 3. That said notice shall be substantis,lly as follows: Rev. 11/64-1 . NOTICE INVITING BIDS ON $895,000 GENERAL OBLIGATION BONDS OF THE CITY OF CHULA VISTA , CALIFORNIA NOTICE IS HEREBY GIVEN that sealed proposals for the purchase of $ 895,000 par value general obligation 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 o'clock P.M., Tuesday, November 30, 1865 PLACE: Council Chambers - City Hall 276 Guava Avenue Chula Vista, California MAILED BIDS: Mailed bids should be addressed to: Mr. Kenneth P. Campbell, City Clerk City Hall - 276 Guava Avenue Chula Vista, California OPENING OF BIDS: The bids will be opened at the meeting of said City Council to be held November 30 ~ 1~5~ at 2:00 o'clock P.M. at the City Hall of said city. TSSU'E: $ 895,000 designated "1865 GOLF COURSE BONDS," consisting of 179 bonds, numbered 1 to X79 , both Inclusive, of the denomination of $ 5,000 each, dated December 15 , 19 65 . 2. MATURITIES: The bonds will mature in consecutive numerical order on December 15 in the amounts for each of the several years as follows: Years 1967-1970 1971-197+ 1975-1979 1980-1883 1g8~+-1886 1987-1g8g 1990-1992 1993-1995 Amounts $ 15, o00 20, 000 25,000 30,000 35,000 X0,000 ~+5, o00 50,000 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 annually the first year and semiannually there- after . PAYMENT: Said bonds and the interest thereon will be payable in lawful money of the United States of America at the office of the Treasurer of the City of Chula Vista, California, or, at the option of the holder, at the main office of the Bank of America National Trust and Savings Association, San Diego or Los Angeles, California, or at any paying agent of the City in Chicago, Illinois or New York, New York. 3• REGISTRATION: The bonds will be coupon bonds registrable as to principal only or as to both principal and interest, and the form of registration may be changed, or the bonds discharged from registration, all in accordance with the provisions in the ordinance providing for the issuance of the bonds. REDEMPTIONa The bonds maturing on or prior to December 15, 1985, shall not be subject to call or redemp- tion prior to maturity. The bonds maturing on or after December 15, 1986, or any of them, may be called before maturity and redeemed at the option of the City Council of said city on December 15, 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-fourth of one per cent for each year or fraction of a year from the redemption date to the maturity date of the bond, but in no event shall the premium exceed three and three-quarters per cent. All or any of the bonds subject to call may be called for re- demption 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 ISSUES The bonds are the entire issue of bonds authorized at an election held September l~, 1965, for the purpose of the acquisition of sites and facilities for a municipal golf course and recreational facilities and the acquisition and construction of additions to and improvements of said facilities, together with all lands, easements, or other property necessary therefor. SECURITYe Said bonds are issued pursuant to Article 1, Chapter ~, Division ~+, Title ~+ (Section 43600, et seq, ) of the Government Code of the State of California, sometimes known as the Municipal Bond Act of 19010 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 in the treasury of said city set apart for that purpose sufficient to meet all payments of principal . -, 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 such part of the principal thereof as will become due before the proceeds of a tax levied at the next general tax levy will be available, Said tax shall be in addition to all other taxes levied for municipal purposes and shall be levied and collected as other city taxeso Pursuant to Article ~, Chapter 3, Part 1, Division 2, 5. Title 5 of the Government Code of the State of California, the bonds shall be additionally secured by a pledge, charge and lien upon the net operating revenues of the golf course facili- ties. The terms and conditions of said pledge and the covenants made by the city are set forth in Ordinance No. 959 , adopted October 26 , 1965 6. . 12/64-4 ' Interest Rates TERMS OF SALE The maximum rate bid may not exceed 6 ~ per annum, payable annually the first year and semi- annually thereafter. Each rate bid must be a multiple of 1/20 of 1~. 1Vo 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 install- ment of interest thereon, and bids providing for additional or supplemental coupons will be rejected. 1~d~Kk~,~K ~~ ~~C The rate on any maturity or group of maturities shall not be more than 1_1/2 ~ higher than the interest rate on any other maturity or group of maturities. Awardo 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 speci- fied 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, 7. . 12/64-5 " if any. The highest bid will be determined by deducting the amount of the premium bid (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 bands will be borne by the city. Right of Refection: The city reserves the right, in its discretion, to re,~ect any and all bids and to the extent not prohibited by law to waive any irregularity ax' 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 pro- posals; provided that the award may be made after the expira- tion of the specified time if the bidder shall not have given to the City Couneil 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, 117 Winston Street, Los Angeles, California, or at any other place agreed upon by the City Treasurer and the successful bidder. 8. Rev. 12/64-6 Prompt Delivery; Cancellation for Late Delivery: It is expected that said bonds will be delivered to the successful bidder within thirty days from the date of sale thereof. The successful bidder shall have the right, at hia option, to cancel the contract of purchase if the city shall fail to execute the bonds and tender them for delivery within sixty days from the date herein Fixed for the receipt of bids, and in such event the successful bidder shall be en- titled 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 CITY OF CHULA VISTA, 1965 GOLF COURSE BONDS." Bid Check: A certified or cashier's check on a ,000 responsible bank or trust company in the amount of x~c payable to the order of the city must accompany each proposal 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 accompany- ing any accepted proposal shall be applied on the purchase price or, if such proposal is accepted but not performed, unless such failure of performance 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. Change in Tax Exempt Status: At any time before the bonds are tendered for delivery, the successful bidder 9• Rev. 12/64-7 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 by the terms of any federal income tax law enacted subsequent to the date of this notice. Legal 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 far such printing or certification. No Litigation Certificates At the time of payment for and delivery of said bonds, the city will furnish the successful bidder a certificate that there is no litigation pending affecting the validity of the bonds. INFORMATION AVAILABLE: Requests for information concerning the city should be addressed to STONE & YOUNGBERG 131+ Russ Building San Francisco, California 9~+10~+ GIVEN by order of the City Council of the City of Chula Vista , California, adopted October 19 , 19 65 . C y Cler ~ of the ty of Chula Vista, California. 10. /65-3 ADOPTED, SIGNED AND APPROVED this 19th day of October 19 6~_. -~ ~. ,. - .9 ~ Mayor of a iy o~ Chula Vista California ATTEST: `_,~ _., y rk o f~he ~ i~'~~ Chula Vista California (SEAL) 11. STATE OF CALIFORNIA COUNTY OF SAN DIEGO ss, CITY OF CHULA VISTA I~ KENNETH CAMPBELL , City Clerk of the City o Chula Vista a ornia, DO HEREBY CERTIFY that the orego ng reso.u ion was duly adopted by the City Council of said city and was approved by the Mayor of said city at an adjourned regular meeting of said City Council held on ~e 19th day of October , 19~, and that it was so adop~e3~as follows: AYES: Councilmen Sparlin~, McMains, McAllister Anderson, McCorguodale NOES: Councilmen None ABSENT: Councilmen None i - er o t e. ty o (SEAL) Chula Vista, California.