HomeMy WebLinkAbout1967-11-07; Building Authority; Resolution 4c o
RESOLUTION NO.
RESOLUTION OF THE GOVERNING BOARD OF
THE CARLSBAD BUILDING AUTHORITY DIRECT-
ING SECRETARY TO PUBLISH NOTICE INVITING
SEALED PROPOSALS FOR BONDS OF SAID
AUTHORITY
WHEREAS, the Governing Board of the Carlsbad Building
Authority adopted Resolution No. 3 providing for the
issuance of bonds of the Authority in the amount of $460,000.00
to be designated "Carlsbad Building Authority Revenue Bonds;"
and •
WHEREAS, it is desirable that said bonds be sold;
NOW, THEREFORE, the Governing Board of the Carlsbad
Building Authority 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 Secretary be and is hereby author-
ized and directed to publish said notice once in the CARLSBAD
JOURNAL, a newspaper of general circulation, said publication to
be at least seven (7) days prior to the date for receiving bids.
Section 3. That the Secretary is hereby authorized and
directed to cause to be furnished to prospective bidders copies
of the notice inviting proposals and information relating to the
properties, operations and finances of said Authority, but failure
in whole or in part to comply with this section shall not in any
manner affect the validity of the sale.
Section 4. That said notice shall be substantially as
follows:
-1-
Proof of November 3, l&rif' — J.B.Co. — Phone 627 9514
NOTICE INVITING BIDS ON
CARLSBAD BUILDING AUTHORITY
REVENUE BONDS
PLACE:
MAILED BIDS:
NOTICE IS HEREBY GIVEN that sealed proposals for the purchase of $460,000 par value
Carlsbad Building Authority Revenue Bonds of the CARLSBAD BUILDING AUTHORITY created
by a Joint Powers Agreement between the City of Carlsbad and the County of San Diego will be
received by the Governing Board of said Authority at the place and up to the time below specified.
TIME: Tuesday, December 5, 1967
4:00 o'clock P.M.
City of Carlsbad
City Hall Council Chambers
2960 Pio Pico Drive
Carlsbad, California
Mailed bids should be addressed to:
Governing Board of the Carlsbad Building Authority
C/O City Clerk of the City of Carlsbad
2960 Pio Pico Drive
Carlsbad, California
OPENING OF BIDS: The bids will be received by the Secretary of the Authority on December
5, 1967, at 4:00 o'clock P.M. at the Office of the City Clerk of the City of Carlsbad, City Hall,
2960 Pio Pico Drive, Carlsbad, California. The bids will be opened by the Secretary of the Authority
immediately following receipt and will be thereafter presented to the Governing Board of the Authority.
ISSUE: $460,000 designated Carlsbad Building Authority Revenue Bonds, dated December 15,
1967.
DENOMINATION: The Bonds shall be all in the denomination of $5,000, numbered 1 to 92,
inclusive.
MATURITIES: The Bonds will mature on December 15 in each year and mature in the amounts
and on* the dates as follows:
Maturity
Date
1968
1969
1970
1971
1972
1973
Principal
Amount
$ 5,000
10,000
10,000
10,000
10,000
10,000
Maturity
Date
1974
1975
1976
1977
1978
1992
Principal
Amount
$ 10,000
10,000
10,000
15,000
20,000
340,000
INTEREST: The Bonds shall bear interest at a rate or rates to be fixed upon the sale thereof
but not to exceed six percent (6%) per annum, payable semiannually on the fifteenth day of June and
the fifteenth day of December in each year, commencing June 15, 1968.
-2-
,*•»•*>.
Proof of November 3, 1967 — J.B.Co. — Phone 627 9514
PAYMENT: Said Bonds and the interest thereon will be payable in lawful money of the United
States of America at the Main Office of the United States National Bank, in the City of San Diego,
California, or, at the option of the Holder, at the offices of the Paying Agents of the Authority in the
City of Los Angeles, California, the City and County of San Francisco, California, the City of New
York, New York, or the City of Chicago, Illinois.
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 of the Resolution Providing for the Issuance of
the Bonds.
REDEMPTION PROVISIONS: Bonds maturing on or prior to December 15, 1978, are not subject
to call and redemption prior to maturity. Bonds maturing on or after December 15, 1979, are subject to
call and redemption prior to maturity, at the option of the Authority, as a whole, or in part in inverse
order of maturity and by lot within a single maturity, from funds derived by the Authority from any
source, on December 15, 1978, or on any interest payment date thereafter, upon payment of a redemption
price equal to the principal amount thereof plus a premium equal to one-half of one percent plus an
additional one-fourth of one percent for each year or fraction of a year from the redemption date to the
maturity date of the Bonds, but in no event shall the premium exceed four percent (4%); provided,
however, the Bonds maturing on December 15, 1992 are subject to call and redemption prior to
maturity, at par, from moneys in the Sinking Fund, in the manner and subject to the terms and pro-
visions, and with the effect set forth in Section 5.02(C) of the Resolution.
In the event of loss of or substantial damage to or condemnation of the whole or any substantial
part of the Project, all or any part of the Bonds may be redeemed at any time by payment of the total
principal amount and accrued interest to the date of redemption plus a premium as set forth above,
but applied to all outstanding bonds whether callable or not.
SINKING FUND PROVISIONS: The Authority agrees to call and redeem the Bonds maturing on
December 15, 1992 in the following respective minimum principal amounts on December 15th in each
of the following years, to wit:
Year
Minimum Amount
Each Year Year
Minimum Amount
Each Year
1979 $20,000
1980 20,000
1981 20,000
1982 20,000
1983 20,000
1984 20,000
1985 25,000
1986 $25,000
1987 25,000
1988 25,000
1989 25,000
1990 30,000
1991 30,000
1992 35,000
PURPOSE OF ISSUE: The proceeds from the sale of the Carlsbad Building Authority Revenue
Bonds will be used for the acquisition, construction and financing of governmental buildings in the
Civic Center in the City of Carlsbad.
SECURITY: These Revenue Bonds are issued pursuant to the Joint Powers Revenue Bond Act
(Government Code 6540 et seq.). These Bonds and the interest hereon (to the extent set forth in the
Resolution) are payable from, and are secured by a pledge of and lien on, the revenues derived by
the Authority from the Project.
The term "Revenues" as used in the Resolution shall include:
-3-
_,«•>*•>
WProof of November 3, 1967 — J.B.Co. — Phone 627 9514
First: Revenues derived from the operation of the Project, to wit:
(a) All rental and other income received by the Authority as lessor under the Lease, and/or
(b) All rental and other income of any type and nature derived by the Authority from
the use and operation of the Project if the same is operated by the Authority in case of default
by the City.
Second: Certain other revenues, to wit:
(a) Any damages received under the terms of the Construction Contract that are not part
of the cost of the Project under Section 3.04 of the Resolution, and/or
(b) Any interest or other income derived from the investment of the funds provided for in
the Resolution that are not part of the Construction Fund under Section 3.03 of the Resolution.
Third: All rentals and other income of any type and nature received by the Authority as lessor
or otherwise from improvements to or additions to or extensions of the Project later constructed or made.
Bond principal and interest coming due each year are payable from annual lease payments for
use of the Project payable by the City of Carlsbad. Under the terms of the Carlsbad Civic Center
Lease, the City agrees to pay the Authority an annual fixed base rental which will be sufficient to pay
bond principal and interest plus additional rental in an amount sufficient to meet other necessary expenses
of the Authority. The City has agreed to make appropriations in its annual budget for the amount of
the base rental and a reasonable estimate of additional rental.
These Bonds are a special obligation of the Authority only, and are not a debt, liability or
obligation of any other public agency, or a lien or charge against the property or funds of the Authority,
except to the extent of the pledge of revenues, as provided by the Resolution or supplemental resolution
pursuant to which the Bonds are issued. Neither the payment of the principal of these Bonds or any
part thereof nor any interest thereon constitutes a debt, liability or obligation of the City of Carlsbad
or the County of San Diego, the public agencies who are parties to the Agreement creating the Authority.
TERMS OF SALE
Interest Rate: The maximum rate bid may not exceed six percent (6%) per annum, payable
semiannually on the fifteenth day of June and the fifteenth day of December in each year. Each rate bid
must be a multiple of 1/8 or 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 rejected. The rate on any maturity or group of maturities shall not be more than one and one-half
percent (\l/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, 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
Authority 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 Authority. The purchaser must pay accrued interest from the date of the Bonds
-4-
Proof of November 3, 19?T—- J.B.Co Phone 627 9514
to the date of delivery computed on a 360-day year basis. The cost of printing the Bonds will be borne
by the Authority.
Right of Rejection: The Authority 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 Authority 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 Governing Board notice in writing of the withdrawal of such proposal.
Place of Delivery: Delivery of said Bonds will be made to the successful bidder at the Office of
the Trustee, United States National Bank, in the City of Los Angeles, State of California, or at such
other place agreeable to both the successful bidder and the Authority. Payment for said Bonds shall be
made in cash or certified Federal Reserve Bank Funds which are immediately available to the Authority
or other comparable funds.
Prompt Delivery; Cancellation for Late Delivery: It is expected that said Bonds will be delivered
to the successful bidder within thirty (30) days from the date of sale thereof. The successful bidder
shall have the right, at his option, to cancel the contract of purchase if the Authority shall fail to
execute the Bonds and tender them for delivery within sixty (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 Governing Board with the envelope and bid clearly marked "Proposal for the Carlsbad Building
Authority Revenue Bonds." Each bid must be in accordance with the terms and conditions set forth
in this notice and must be submitted on, or in substantial accordance with the bid form provided by
the Authority.
Bid Check: A certified or cashier's check on a responsible bank or trust company in the amount
of $7,500, payable to the order of the Authority 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 accompanying 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 Authority, shall then be cashed and the proceeds retained by the Authority. 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 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 opinions of Rutan & Tucker, special counsel to the Authority,
and O'Melveny & Myers, bond counsel, 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 Authority.
A copy of the opinion of O'Melveny & Myers, certified by an officer of the Authority 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 Authority
will furnish the successful bidder a certificate that there is no litigation pending affecting the validity
of the Bonds.
-5-
Proof of. November 3, wfff—J.B.Co. — Phone 627 9514
INFORMATION AVAILABLE: For details as to the items referred to in this notice prospective
bidders are invited to examine the Official Statement and the Legal Documents authorizing the issuance
of the Bonds. Any requests for such documents and other information concerning the Authority and
this proposed financing should be addressed to:
William L. Feldman & Associates
Municipal Financing Consultants
Suite 1174 Kirkeby Center
10889 Wilshire Boulevard
Los Angeles, California 90024
GIVEN by order of the Governing Board of the Carlsbad Building Authority, Carlsbad, California,
adopted November 7, 1967.
Secretary of the
Carlsbad Building Authority
-6-
?•"*"»•
Proof of November 3, 1967*— J.B.Co. — Phone 627 9514
BID FORM FOR THE PURCHASE OF
$460,000 Principal Amount Carlsbad Building Authority Revenue Bonds
Governing Board of the , 1967
Carlsbad Building Authority
c/o City Clerk, City of Carlsbad
2960 Pio Pico Drive
Carlsbad, California
Gentlemen:
Pursuant to the Notice Inviting Bids (a copy of which is made part of this bid) we offer to purchase
$460,000, principal amount, all or none, of the Bonds designated as "Carlsbad Building Authority
Revenue Bonds," at the par value thereof plus a premium of $. (making an
aggregate sum of $ ) plus interest accrued on such bonds (if applicable) from
their date to the date of delivery thereof. The Bonds shall be in the denomination of $
The bonds are to bear interest rates as set forth in the following schedule entitled "Schedule of
Interest Rates".
SCHEDULE OF INTEREST RATES
Principal Principal
Amount Maturing Rate Amount Maturing Rate
$ 1968 to (Inclusive) % $ to (Inclusive) %
$— to (Inclusive) % $ to (Inclusive) %
$ to (Inclusive) % $ r to (Inclusive) %
$ to (Inclusive) % $ to (Inclusive) %
$ to (Inclusive) % $ to (Inclusive) %
Our calculation of the net interest cost and net interest rate, which is considered to be informative
only and not a part of the bid, is as follows:
Total Interest „ $
Less Premium..
Net Interest Cost
Net Interest Rate...
This proposal is subject to acceptance not later than twenty-six (26) hours after the expiration
of the time for the receipt of proposals as specified in the Notice Inviting Bids. These is enclosed
herewith a (certified) (cashier's) check for $7,500, payable to the order of the Carlsbad Building
Authority.
Following is a list of the members of our account on whose behalf this bid is made:
Respectfully submitted,
Name,
Account Manager
By
Address_
City State_
-7-
o
ADOPTED, SIGNED AND APPROVED this 7th day of November,
1967.
Cha irmSn
Carlsbad Building Authority
(SEAL)
ATTEST:
Secretary
Carlsbad Building Authority
-8-
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CARLSBAD )
I, Claud R. Helton , Secretary of the Carlsbad
Building Authority, DO HEREBY CERTIFY that the foregoing resolu-
tion was duly adopted by the Governing Board of said Carlsbad
Building Authority and was approved by the Chairman of said
Authority at an adjourned special meeting of said
Authority held on the 7th day of November ,
1962_, and that it was so adopted as follows:
AYES: MEMBERS Peterson, Helton and Jose
NOES: MEMBERS None
ABSENT: MEMBERS None
Secretary
Carlsbad Building Authority
(SEAL)
-9-