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HomeMy WebLinkAbout57-205RESOLUTION NO. 57-205 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA, DIRECT- ING THE CLERK OF THE COUNCIL TO PUBLISH NOTICE INVITING SEALED PROPOSALS FOR $700,000 LIBRARY BONDS OF SAID CITY. WHEREAS, an ordinance providing for the issuance of bonds of the City of Santa Aha, California, in the amount of $700,000 to be designated LIBRARY BONDS,1957, has been introduced; and WHEREAS, it is desirable that said bonds be sold; NOW, THEREFORE, the City Council of the City of Santa Ana, 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 Clerk of the Council be and she is hereby authorized and directed to publish said notice once in THE SANTA ANA REGISTER, a newspaper of general circulation published in said city. Section 3. T~at said notice shall be substan- tially as follows: NOTICE INVITING BIDS ON $700,000 GENERAL OBLIGATION BONDS OF THE CITY OF SANTA ANA, CALIFORNIA NOTICE IS HEREBY GIVEN that sealed proposals for the purchase of $700,000 par value general obligation bonds of the CITY OF SANTA ANA will be received by the City Council of said city at the place and up to the time below specified: TIME: PLACE: Monday, September 16, 1957, at 7:30 o'clock P.M., California Daylight Saving Time. City Hall, Santa Ana, California. MAILED BIDS: c/o Mailed bids should be addressed Mrs. Erma Hunter Clerk of the Council City Hall Santa Ana, California OPENING OF BIDS: The bids will be opened at the meeting of said City Council to be held September 16, 19]~, at 7:30 o'clock P.M., California Daylight Saving Time, at the City Hall, Santa Ana, California. ISSUE: $ ?00,000 bonds, numbered 1 to 700 denomination of $1,000 each, consisting of seven hundred , both inclusive of the all dated October 1, 1957. MATURITIES: The bonds will mature in consecutive numerical order on October i in the amounts for eac~ of t~e several years as follows: $35~000 on October i in each of the years 195~ to 1977, both inclusive. 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 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 Santa Ana, California, or at any fiscal agency of the city in Los Angeles, California, or in Chicago, Illinois, or in New York, New York, at the option of the holder thereof. REGISTRATION: The bonds will be coupon bonds registerable only as to both principal and interest. NOT CALLABLE: The bonds are not callable before maturity. PURPOSE OF ISSUE: The bonds were authorized for the acquisition and construction of a public library build- lng with vehicle parking therefor and the planting and landscaping of the library grounds. SECURITY: 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. For the purpose of paying the principal and interest of 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 taxes. TERMS OF SALE Interest Rate: The maximum rate bid may not exceed 6% per annum, payable annually the first year and semiannually thereafter. Each rate bid must be a multiple of 1/4 of 1%. No bond shall bear more than one interest rate, and all bonds of the same maturity shall bear the same rate. Not more than three interest rates may be bid. The repetition of any rate will not be considered the bidding of an additional rate. 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 o~fers 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 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 lowest net interest cost shall be computed 'on a B60-day year basis. The purchaser must pay accrued interest from the date of the bonds to the date of delivery. 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 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 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 Company, ll7 Winston Street, Los Angeles, California, or at any otaer 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. 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 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 Santa Ana Library Bonds." Bid Check: A certified or cashier's check on a responsible bank or trust company in the amount of 3% or 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 ~is 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 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 rul~r~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 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. No Litigation Certificate: At the time of pay- ment 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 concerning the city should be addressed to Mrs. Erma Hunter Clerk of the Council City Hall Santa Aha, California. for information GIVEN by order of the City Council of the City of Santa Ana, California, adopted August 5th 195I. ERMA HUNTER Clerk of the Council of the City of Santa Aha, California Section 4. That the Clerk of the Council is also hereby directed to cause an advertisement to be published once in THE BOND BUYER, a financial Journal published in New Yorkj New York, but failure to publish said advertisement in THE BONDBUYER or any defect in such publication shall not invalidate or in any manner affect the proceedings for the sale of the bonds. Section 5. That said advertisement shall be substantially as follows: $700,000 CITY 0P SANTA ANA CALIFORNIA LIBRARY BONDS The City Council of the City of Santa Ana, California, will receive sealed bids until 7:30 o'clock P.M., California Daylight Saving Time, on SEPTE~BER 16, 1957, at the City Hall, Santa Aha, California, for the sale of $700,000 LIBRARY BOND~, 1957, to be dated October l, 1957, maturing in consecutive numerical order on October i in the amounts for each of the several years as follows: $35,000 on October i in each of the years 1958 to 1977, both inclusive. The bonds will be accompanied by the approv- ing opinion of O'Melveny & Myers, Los Angeles, California. The interest rate at which the bonds may be sold, the amount of the bid check and other items are set forth in the Notice Inviting Bids. A copy of the Notice Inviting Bids and other information available will De furnished by Mrs. Erma Hunter, Clerk of the Council, City Hall, Santa Ana, California. ERMA HUNTER Clerk of the Council of the City of Santa Ana, California 10. ADOPTED, of August , 1957. SIGNED AND APPROVED this 5th day ~a~for of the City of j Santa Ana, California ATTEST: Clerk of the CouNcil of the City of Santa Ana, California APPROVED AS TO FORM: /...~'City ~ttorney ll. STATE OF CALIFORNIA ) COUNTY OF ORANGE I s s. CITY OF SANTA ANA I, ERMA HUNTER, Clerk of the Council of the City of Santa Ana, California, DO HEREBY CERTIFY that the fore- going resolution was duly adopted by the City Council of said city by a vote of more than two-thirds of the members thereof and was approved by the Mayor of said City at a regular meeting of said City Council held on the 5th day of August , 1957, and that it was adop%~-d-~-~he following vote: Councilmen Royal E. Hubbard, A, A. H~ll~ J. Ogden Markel, Dale H. Heinly NOES: Councilmen None ABSENT: Councilmen Stanley C. Gould, Jr, City of Santa Ana, California (SEAL) 12.