Loading...
HomeMy WebLinkAbout1970-09-01; City Council; Resolution 1780TCESOLTJTION NO. 1780 RESOLUTION OF THE CITY COUNCIL OF THE ING THE CITY CLERK TO PUBLISH NOTICE INVITING SEALED PROPOSALS FOR REVENUE BONDS OF SAID CITY C ITY OF CARLSBAD , CALIFORNIA, DIRECT - WHEREAS, the City Council of the City of Carlsbad adopted Resolution No. 17?9 providing for the issuance of revenue bonds of the City in the amount of $1,225,000 to be designated "Waterworks Revenue Bonds, 1970, Series A"; and WHEREAS, it is desirable that said bonds be sold; NOW, THEREFORE, the City Council of the City of Carlsbad DOES HEREBY RESOLVE, DETERMINE AND ORDER as follows: SECTION 1. That said revenue 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 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 City Clerk 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 City, 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- NOTICE INVITING BIDS ON $1,225,000 CITY OF CARLSBAD WATERWORKS REVENUE BONTlS NOTICE IS HEREBY GIVEN that sealed proposals for the purchase of $1,225,000 par value City of Carlsbad Waterworks Revenue Bonds, 1970, Series A, of the City of Carlsbad will be received by the City Council at the place and up to the time below specified. TIME: PLACE : MAILED BIDS : Tuesday October 6, 1970 11:OO o*clock A.M. City of Carlsbad City Hall Council Chambers 1200 Elm Avenue Car lsbad , California Mailed bids should be addressed to: City of Carlsbad C/O City Clerk 1200 Elm Avenue Carlsbad, California OPENING OF BIDS: The bids will be received by the City Clerk on October 6, 1970, at 11:OO o'clock A.M. at the Council Chambers of the City of Carlsbad, City Hall, 1200 Elm Avenue, Carlsbad, California. The bids will be opened by the City Clerk immediately following receipt and will be presented to the City Council at its meeting to be held at 7:OO o'clock P.M. on October 6, 1970, at the City Hall. ISSUE: $1,225,000 designated "Waterworks Revenue Bonds, 1970, Series A", dated July 1, 1970. DENOMINATION: The Bonds shall be all in the denomination of $5,000, numbered 1 to 245, inclusive. MATURITIES: The Bonds will mature on July 1 in each year and mature in the amounts and on the dates as follows: -2- Maturity Date 197 2 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1940 Pr inc ip a 1 Amount $ 35,000 40 , 000 40,000 40,000 45 , 000 50,000 55 , 000 55,000 55 , 000 60,000 60.000 65 000 75,000 80; 000 85 , 000 90,000 95 , 000 100 , 000 100 , 000 INTEREST: The Bonds shall bear interest at a rate or rates to be fixed upon the sale thereof but not to exceed seven percent (7%) per annum, payable semiannually on the first day of July and the first day of January in each year, commencing January 1, 1971. PAYMENT: Said bonds and the interest thereon will be payable in lawful money of the United States of America at the main office of Security Pacific National Bank in the City of Los Angeles, or, at the option of the holder, at any fiscal agency of the City of Carlsbad in Chicago, Illinois, or in New York, New York. 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. -3- REDEMPTION PROVISIONS: Bonds maturing on or prior to July 1, 1981, are not subject to call and redemption prior to maturity. Bonds maturing on or after July 1, 1982, are subject to call and redemption prior to maturity, at the option of the City, as a whole, or in part in inverse order of maturity, from funds derived by the City from any source, on July 1, 1981, or on any interest payment date thereafter, upon payment of a redemption price equal to the principal amount thereof, plus the following premium (percentage of par value) for redemption at the following times : On or After July 1 1981 1982 1983 1984 1985 1986 1987 1988 1989 And Prior to July 1 1982 1983 1984 1985 1986 1987 1988 1989 Maturity Premium 4 - 1 / 2% 4% 3-1/2% 3% 242% 2% 142% 1% 112% All or any of the bonds subject to call may be called for redemption at any one time. If less than all of the Bonds subject to such 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 Bonds. PURPOSE OF ISSUE: Said Bonds were authorized for the acquisition, construction and financing of extensions, enlarge- ments and improvements of the water system for the City of Carlsbad. SECURITY: Said Bonds are issued pursuant to Article 8, Chapter 3, Division 2, Title 5 (commencing at Section 53540) -4- of the Government Code of the State of California and the Revenue Bond Law of 1941 (Government Code Sections 54300, et seq.). lien upon the gross revenues of the water system of the City of Carlsbad (defined as the "enterprise" in the Resolution Providing for the Issuance of the Bonds), together with all additions and improvements to said system later constructed or acquired. The principal of and interest on the Bonds and any premiums upon the redemption of any thereof are not a debt of the City of Carlsbad nor a legal or equitable pledge, charge, lien or encumbrance upon any of its property or upon any of its income, receipts or revenues, except the gross revenues of said water system which are under the terms of the Resolution of Issuance, and said Revenue Bond Law of 1941, pledged to the payment of 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 or the taxing power of the City pledged. The holder of the Bonds or coupons shall not Said Bonds are equally secured by a pledge, charge and c ompe 1 or the the exercise of the taxing power by the City of Carlsbad forfeiture of any of its property. TERMS OF SALE Interest Rate: The maximum rate bid may not exceed 7% per annum, payable semiannually commencing January 1, 1971. Each rate bid must be a multiple of 1/8th or 1/20th of 1%. 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, the bids providing for additional or supplemental coupons will be rejected. No -5- The rate on any maturity or group of maturities shall not be more than 1% higher than the interest rate on any other maturity or group of maturities. Award: The bonds may be sold at a price equal to their par value or above or below their par value, except that the maximum discount bid shall not exceed $24,500. The bonds shall be sold for cash only. the bonds hereby offered for sale and each bid shall state the total price offered for the bonds, the premium, or the discount, if any, and the interest rate or rates not to exceed that specified herein, at which the bidder offers to buy said bonds, and accrued interest to the date of delivery. 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 in- All bids must be for not less than all of formative 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 or the discount offered, if any. 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. The net cost to the City on any bid or bids offering less than par will be determined by adding to 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 the amount of the discount bid. The award will be made to the bidder or bidders offering the lowest net cost to the City. The In the event -6- 0 0 that two or more bidders have bid the same lowest net cost to the City, the award shall be made by lot. accrued interest (computed on a 360-day year basis) from the date of the bonds to the date of delivery. The purchaser must pay The cost of printing the bonds will be borne by the City. Right of Rejection: The City reserves the right, in its discretion, to reject any and all bids and to the extent not pro- hibited by law to waive any irregularity or 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 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: Security Pacific National Bank 124 West Fourth Street Los Angeles, California or at any other place agreeable to both the City and the successful bidder. 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 City 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. -7- 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, 1970, Series A". Bid Check: A certified or cashier's check on a responsible bank or trust company in the amount of $22,500 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 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 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 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 Rutan & Tucker 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. certified by an officer of the City by his facsimile signature will be printed on the back of each bond. to the purchaser for such printing or certification. A copy of such opinion, No charge will be made -8- No Litigation Certificate: At the time of payment €or 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 concern- ing the City should be addressed to: Bartle Wells Associates 260 California Street San Francisco, California 94111 GIVEN by order of the City Council of the City of Carlsbad, California , adopted September 1, 1970. City Clerk, City ot Carlsbad (SEAL) ADOPTED, SIGNED AND APPROVED this 1st day of September, 1970. (SEAL) ATTEST : -10- .. 0 STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CARLSBAD ) I, MASPGRR,E.T;.Ee. KDAMS,, Ci-y>Clerk of the City of Carl bad, California, do hereby certify that the foregoing resolution was duly adopted by the City Council of said City and was approved by the Mayor of said City at a regular meeting of said City Council held on the 1st day of September, 1970, and that it was so adopted as follows: AYES: CO~CIL~N: Dunne, Jardine, Castro and Lewis. NOES: COUNCILNEN: None ABSENT: COUNCILMEN: McComas. (SEAL) -11-