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HomeMy WebLinkAbout1961-01-17; City Council; Resolution 712RBSOLUTION NO. 712 I RESOLUTION OF THE CITY COUNCIL OF TEE CITY OF CARLSBaD. CALIIT PORNIA, DIFil3CTING T& CITY CLERK TO PUBLISil MOTICE INVIT- ING SEALED PROPOSALS FOR $300,000 WATERWORKS REVENUE nn=?nn WHEWiiAS, Resolution No. 711 providing for the issuance of revenue bonds of the City of Carlsbad in the amount of $300,000, designated "WATERWORKS REVENUE BONDS, 1960," was heretofore on the 17th day of the City Council of said city; , 1961 duly passed and adopted by January -J and WEFEREAS, it is desirable that said bonds be sold; NOW, THEREFORE, the City Council of the City of Carlsbad, 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 herein- after set forth in Section 4 of this resolution. Section 2. That the City Clerk be and he is hereby authorized and directed to publish said notice once in the CARLSBAD JOURNAL, a newspaper of general circulation published in said + 4 (. Section 3. That the City Clerk is hereby * m NOTICE INVITING BIDS ON $300,000 WATERWORKS Rl3VENUE BONDS OF TEE CITY OF CARLSBAD, CALIFORNIA NOTICE IS WEREBY GIVEN that sealed proposals for the purchase of $300,000 par value waterwo revenue bonds of the CITY OF CARLSBAD, CALIFORNIA, will be received by the City Council of said city the place and up to the time below specified: TIN3 t Tuesday, February 7, 1961 7130 olclock, P.N. PLACE t city Hall, 2960 pi Carlsbad, California. MAILED BIDS: Mailed bids sh the city, c/o J. H. Price, City Clerk City Hall, 2960 Pi0 Pico Drive, Carlsbad, California. ISSUB: $300 00 consisting of three hundred bonds, numbered 1 to 3 ination of .$3*,000 MATWTIES: The bonds will mature in con secutive numerical order on July 1 each of the several years as follows: in the amounts for are payable in lawful money of the United States of America at the office of the City Treasurer of the City of Carlabad, i said city, or, at the option of the holder, at any fiscal agency of the City Los Angeles, California, or in Chicago, Illinois, or in New York, New York. REGISTRATION: The bonds will be coupon bonds registrable either as to principal only or as to both principal and interest. CALL PROVISIONS : Refunding Call: If all or any part of the principal and premium payable upon call and redemption prior to maturity is paid from the proceeds of refunding shall aonlv . The bonds maturing on or prior to July 1, 1974, shall not be subject to call or redemption prior to maturity for the purpose of refunding. ing on or after July 1, 1975, or any of them, may be called before maturity and redeemed, for the purpose of refunding, at the option of the City Council, on July 1, 1974, or on any interest payment date thereafter prior to maturity, at a redemption price for each redeemable bond equal to the principal amount thereof plus the following premiums (percentage of par value) if redeemed at the followeng times: The bonds matur- REFUNDING REDEMPTION DATES AND PR;EMIuMs On or after And prior to Refunding July 1 July 1 Premium 1975 4% 3% 1% 1974 1975 1976 3-1/2$ 19-76 1977 1977 1978 2-1/2$ 1979 1979 1980 2% 1-1/2$ 1978 1980 Maturity Revenue Call: If no part of the principal and premium payable upon call and redemption prior to maturity is paid from the proceeds of refunding bonds, this provi- sion shall apply. All or any part of the bonds may be called before maturity and redeemed, except for refunding, at the option of the City Council, on July 1, 1962, 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 the following premiums (percentage of par value) if redeemed at the following times: REVENUE REDEXPTION DATES AND PREMIW On or After And Prior to Revenue July 1 July 1 Premium 1962 1963 1965 1966 1967 1968 1969 1970 1971 1972 1964 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 Maturity All or any of the bonds subject to either refund- ing or revenue call may be called for redemption at any one time. call 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. If less than all of the bonds subject to such PURPOSE OF ISSUE: Said bonds are to be used for the acquisition, construction and financing of extensions, enlargements and improvements of the water system of said city, SECURITY: Said bonds are issued pursuant to the Revenue Bond Law of 1941 (Government Code 54300 et seq.). charge and lien upon the gross revenues of the entire waterworks system of the City of Carlsbad, together with all improvements and extensions to said system hereafter made. premiums upon the redemption of any thereof are not a Said bonds are equally secured by a pledge, The principal of and interest on the bonds and any debt of the City of Carlsbad nor a legal or equitable charge, lien or encumbrance upon any of its 6. property or upon any of its income, receipts or revenues, except the gross revenues of said waterworks system which are under the terms of Resolution No. 711 Revenue Bond Law of 1941, pledged to the payment of said , and said bonds and interest. The general fund of the City of Carlsbad is not liable for the payment of the bonds or their interest, nor is the credit of the taxing power of the city pledged. The holder of the bonds or coupons shall not compel the exercise of the taxing power of the City of Carlsbad or the forfeiture of any of its property. TERMS OF SALE Interest Rate: exceed 6% per annum, payable annual The maximum rate bid may not for the first year and semiannually thereafter. Each rate bid must be a multiple of 1/8 or 1/20 of 1%. than one interest rate, and all bonds of the same maturity shall bear the same rate. No bond shall bear more The rate on any maturity or group of maturities shall not be more than 1/2$ 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 and payment, 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. 7. Each bidder shall state in his bid the total net interest cost in dollars and the average net interest rate de- termined thereby, which shall be considered informative only and not a part of the bid. \ Highest Bidder: The bonds shall be awarded to the highest responsible bidder or bidders consider- ing the interest rate or rates specified and the premium offered, if any. The highest bid will be de- termined by deducting the mount of the premium bid (if any) from thetotal 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 Anterest cost to the city. date of the bonds to the date of delivery. interest shall be computed on a 360-day year basis. cost of printing the bonds will be borne by the city. The purchaser must payeaccrued interest from the Such accrued The Right of Rejection: 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 award- ing the bonds or rejecting all bids not later than twenty- six 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 8. e not have given to the City Council notice in writing of the withdrawal of such proposal. Place of Delivery: Delivery of said bonds shall be made to the successful bidder at the office of Jeffries Banknote Company, 117 Winston Street, Los Angeles, California, or at any other place agreeable to both the successful bidder and the City Treasurer. 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. right, at his 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 of the sale thereof, and in such event the successful bidder shall be entitled to the return of the deposit accompany- ing his bid. The successful bidder shall have the 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 CARLSBAD WATERWORKS REVENUE BONDS, 1960 I' Bid Check: A certified or cashiers check on a responsible bank or trust company in the amoun'c of 3% of the principal amount of the bonds, 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 I hfs bid. accepted proposal shall be applied on the purchase The proceeds of the check accompanying any 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 retained by the city. proposal will be returned promptly. The check accompanying each unaccepted 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.Bureau of Internal Revenue 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 SC Myers, attorneys, approving the validity of said bonds will be furnished the successful bidder at or prior to the date of delivery of the bonds, at the expense of the city. bidder, a copy of the legal opinion certified by an officer of the city by his facsimile signature will be printed on the back of each bond, at no expense to the successful bidder. If requested in the bid of the successful No Litigation Certificate: At the time of payment for and delivery of said bonds the city will 10 . V furnish the successful bidder a certificate that there is no litigation pending affecting the validity of the bonds . INFORMATION AVAILABLE: For further informa- tion respecting the terms and conditions of the bonds, bidders are referred to the copy of Resolution No. which accompanies the Official Statement. contains the various covenants and provisions made for 711 , Said resolution the security and protecCion of the bondholders, includ- ing covenants relating to rates and charges to be made for service, the use of the revenues of the waterworks system, the establishment of funds, the limitations upon transfer from the Water Fund, the limitations upon addi- tional debt payable from such revenues, and said bonds shall be issued under and pursuant to said resolution, Copies of this notice inviting bids for the purchase of said bonds, together with copies of said Official State- ment to be issued in connection with the sale of said bonds and copies of said Resolution No. 7 11 may be obtained from: J. €I. Price Schwabacher & Co. City Clerk - or - Financial Consultant City Hall for the City 2960 Pi0 Pic0 Drive Carlsbad, California San Francisco, California 100 Montgomery Street GI" by order of the City Council of the City of Carlsbad, California, adopted January 17 1961. J. E. PRICE City Clerk of the City of Carlsbad, California. 11 I* . m Section 5. This resolution shall take effect upon adoption. ADOPTED, SIGNED AND APPROVED this 17th day of January 1961. c.2 L j! ,&- G&/ (.Jx &L--" ATTEST: CitpbClerk of the City of Carlsbad, California. c