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HomeMy WebLinkAbout1962-11-07; City Council; Resolution 8584 0 0 RESOLUTION NO. 858 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, DIRECT- ING THE CITY CLERK TO PUBLISH NOTICE INVITING SEALED PROPOSALS FOR $675,000 SEWER BONDS OF SAID CITY. WHEREAS, an ordinance providing for the issuance of bonds of the City of Carlsbad, California, in the amount of $675,000 to be designated”l.962 SEWER BONDS, SERIES A” has been introduced; and WHEREAS, 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, 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 city. Section 3. That said notice shall be substantially as follows: 0 a NOTICE INVITING BIDS ON $675,000 GENERBL OBLIGATION BONDS OF THE CITY OF CARLSBAD, CALIFORNIA. NOTICE IS HEREBY GIVEN that sealed proposals for the purchase of $675,000 par value general obligation bonds of the CITY OF CARLSBAD will be received by the City Council of said city at the place and up to the time below speci- f ied . TIME: Tuesday, December 11, 1962, at 7:30 P.M. PLACE: Council Chambers City Hall 2960 Pi0 Pic0 Drive Carlsbad, California MPII1;ED BIDS: Mailed bids should be addressed: Mr. J. H. Price City Clerk 2960 Pi0 Pic0 Drive Carlsbad, California. ISSUE: $675,000 consisting of six hundred seventy- five bonds, numbered 1 to 675, both inclusive, of the denomination of $1,000 each, all dated January 1, 1963, and designated V962 Sewer Bonds, Series A," MATURITIES: The bonds will mature in consecutive numerical order on July 1 in the amounts for each of the several years as follows: $5,000 on July 1, 1965, $10,000 on July 1, 1966, $20,000 on July 1 in each of the years 1967 to 1973, inclusive, $30,000 on July,l in each of the years 1974 to 1982, inclusive, $40,000 on July 1 in each of the years 1983 to 1987, inclusive, and $50,000 on July 1, 1988. 2. INTEREST: The bonds shall bear interest at a rate or rates to be fixed upon the sale thereof but not to exceed six (6) per cent per annum, payable annually the first year and semiannually thereafter. PAYMENT: Said bonds and the interest thereon are payable in lawful money of the United States of America at the Office of the City Treasurer of the City of Carlsbad, California, in said city, or, at the option of the holder thereof, at the paying agent of the city in Los Angeles, California, Chicago, Illinois, or in New York, New York. REGISTRATION: The bonds will be coupon bands registrable only as to both principal and interest. CALL PROVISIONS: The bonds maturing on or prior to July 1, 1982, shall not be subject to call or redemption prior to maturity. The bonds maturing on or after July 1, 1983, or any of them, may be called before maturity and redeemed, at the option of the City, in inverse order of maturity and number, on July 1, 1973, 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 if redeemed at the following times: On or After And Prior July 1 to July 1 Premium 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1974 4% 1975 3-3/4 1977 34/4 1978 3 1979 2-3/4 1980 24/2 1982 2 1983 1-3/4 1984 1-1/2 1986 1 1987 3/4 Maturity 1/2 1976 3-1/2 1981 2-1/4 1985 1-1/4 PURPOSE OF ISSUE: The bonds are part of an authorized issue of $2,122,000 for the acquisition and construction of sewers in the City of Carlsbad voted at an election held January 16, 1962. SECUFiITY: Said bonds are issued pursuant to Article 1, Chapter 4, Division 4, Title 4, (Sections 43600 et seq.) of the Government Code of the State of California, sometimes known as the Municipal Bond Act of 1901. interest of said bonds, said Act requires that the City For the purpose of paying the principal and 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 suffici 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 4. 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 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. Such accrued interest, if any, shall be com- puted on a 360-day year basis. bonds will be borne by the city. The cost of printing the Right of Rejection: The city reserves the right, in its discretion, to reject extent not prohibited by law informality in any bid. Prompt Award: The any and all bids and.to the to waive any irregularity or city will take action awarding the bonds or rejecting a11 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 6. Company, 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 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 city shall fail to execute the bonds and tender them for delivery within 60 days from the date of the sale thereof, and in such event the successful bidder shall be entitled to the return of the deposit 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 CARLSBAD 1 SERIES A." Bid Check: A certified or cashier's check on a responsible bank or trust company in the amount of $5,000, 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 proceeds of 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 city, shall then be retained by the city. The check 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 & Myers, attorneys, approving the valid ty 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. A copy of such opinion, certified by the City Treasurer by his facsimile signature, will be printed on the back of each bond unless the purchaser requests that such printed copy be omitted. 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 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 8. Mr. J. H. Price City Clerk or 1314 Russ Building 2960 Pi0 Pic0 Drive Carlsbad, California San Francisco, California Stone & Youngberg 235 Montgomery Street GIVEN by order of the City Council of the City of Carlsbad, California, adopted November 7, , 1962. v 0 e ADOPTED, SIGNED AND APPROVED this 7th day Of November 1962. STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CARLSBAD - __ - - -_ICE , City Clerk ,rlsbad , California, DO HEREBY renoinn resolution was duly adoDted J. H- PR' I, of the City on CERTIFY that theFo__, ----) by the City Council of said city and was approved by the Mayor of said city at a- said City Council held on the 1962 -' and that it was so adopted as follows: regular meeting of 7th ' day Of November Neis wender and Huphes NOES : Councilmen me ABSENT: Councilmen None