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HomeMy WebLinkAbout62-093PJ~SOLUTION NO. 62-93 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA, DIRECT- ING THE CLE ~RK OF THE COUNCIL TO PUB- LISH NOTICE INVITING SEALED PROPOSALS FOR $3,000,000 WATER REVENUE BONDS DESIGNATED "1962 WATER REVENUE BONDS, SERIES A". WHEREAS, a resolution providing for the issuance of water revenue bonds of the City of Santa Aha in the amount of $3,000,000 was heretofore adopted by the City Council of said city; and WHEREAS, it is desirable that said bonds be sold; NOW, THEREFORE, the City Council of the City of Santa Ana, California, DOES HEREBY ~ESOLVE, 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 5 of this resolution. Section 2. That the Clerk of the Council be and abe 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. That the Official Statement to be sent to the prospective bidders for the CITY OF SANTA ANA 196R WATER REVENUE BONDS, SERIES A having been presented to this City Council is hereby approved in substantially the form presented. Section '4, That the Clerk of the CounCil is hereby authorized and directed to cause to be furnished to prospective bidders copies of the notice inviting proposals and of an official s~atement relating to the properties, operations an~ finances ofsald 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 5. That said notlceinviting sealed bids or proposals shall lbe substantially as follows: NOTICE INVITING BIDS ON SB,O00,O00 WATER REVENUE BONDS OF THE CITY OF SANTA ANA, CALIFORNIA. NOTICE IS HE~RRy GIVEN that sealed proposals for the purchase of $3,0001000 par value water revenue bonds of the CITY OF SANTA ANA, CALIFORNIA, will be received by the City Council of the City at the place and up to the time below specified: TIME: PLACE: MAILED BIDS: Tuesday, June 12, 1962 at 2:00 olclock P.M. California Daylight Saving Time Council Chambers of the City Council City Hall, 217 North Main Street Santa Aha, California Mailed bids should be addressed to the city, c/o Miss Marion Suttner Clerk of the Council City Hall, 217 North Main Street Santa Aha, California. OPENING OF BIDS: The bids will be publicly opened and read at the time and place aforesaid by the Clerk of the Council and will then be presented at the meeting of the City Council to be held on June 12, 1962 at 7:BO P.M., California Daylight Saving Time, at the Council Chambers, City Hall, Santa Aha, California. ISSUE: $3,000,000 Wate~ Revenue Bonds, designated "1962 Water Revenue Bonds, Series A" (being Series A of a total authorized amount of $6,950,000), consisting of three thousand bonds, numbered i to 3,000, both inclusive, of the denomination of $1,000 each, all dated July l, 1962. 01~¥/Notice Inv.Blds/Gen.Obl. MATURITIES: The bonds will mature in consecutive numerical order on July 1 in the amounts for each of the several years as follows: Principal Principal Year Amount ~$.ar Amount 1964 $10,000 1974 $90,000 1965 20,000 1972 90,000 1966 30,000 197b 90,000 1967 50,000 1977 100,000 1968 70,000 1978 100,000 1969 70,000 1979 110,000 1970 80,000 1980 110,000 1971 80,000 1981 120,000 1972 80,000 1982 120,000 1973 80,000 1992 1,5oo,ooo INTEREST: · The bonds shall bear interest at a rate or rates to be fixed upon ~he 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 Director of Finance of the City of Santa Ana, in said city, or, at the option of the holder, at any paying agent of the city in Los Angeles or San Francisco, CalifSrnia, 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. C~J.ABLE: 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 July l, 1992, are subject to call and redemption, at the option of the district, on July l, 1972, or on any interest payment date thereafter prior to maturity, at a redemption price equal to the princi- pal amount thereof plus the following premiums (percentage of par value) if redeemed at the following times: REDEMPTION DATES AND PREMIUMS On or After And Prior to On or After And Prior to JulM I Jul~ 1 Premium July i JulM i Premium 1972 1974 4% 1983 1984 1-3~4~ 1974 1976 3-3~4% 1984 1985 1-1Z2~ 1976 1977 3-1~2% 1985 1986 1-3/4~ 1977 1978 3-1/4% 1986 1987 1 1978 1979 3% 1987 1988 3/4~ 1980 1981 ~- 1989 1990 1981 1982 2-1/4% 1990 Maturity 0 ~_1982 1983 2% 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 are redeemed at any one time, such bonds shall be redeemed only by lot. The interest payment date on which bonds are to be presented for redemption is hereinafter sometimes called the "redemption date." PURPOSE OF ISSUE: Said bonds were authorized for the acquisition and construction of additions to the water system for the City of Santa Aha. SECURITY: Said bonds are issued pursuant to the Revenue Bond Law of 1941 (Government Code 54300 et seq.) and the Charter of the City of Santa Aha. Said bonds are equally sectored by a pledge, charge and lien upon the gross revenues of the entire water system of the City of Santa Aha, together with all additions and improve- ments to said system hereafter made. 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 Santa Aha nor a legal or equitable pledge, charge~ llen 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 Santa Aha is not liable for the pay- ment 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 compel the exercise of the taxing power bM the City of Santa Aha or the forfeiture of any of its property. 0 City/Notice Inv. Bias G.O. TERMS OF SALE Interes.t Rate: The maximum rate bid may not exceed 6 % per annum, payable annually the first year and semi- annually thereafter. Each rate bid must be a multiple of 1/RO of 1%. No bond shall bear more than one interest rate, and all bonds of the same maturity shall bear the same rate. Only one coupoD will be attached to each bond for each in- stallment of interest thereon~ and bids providing for addi- tional or supplemental coupons will be rejected. ~ex~ew~ N~e~xxxxxxxxxx~~$~x~$~x~ The repetition of any rate will not be considered the bidding of an additional rate. The rate on any maturity or group of maturities shall not be more than 1-1/2% 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, the premium, if any, and the interest rate or rates not to exceed those speci- fied 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 there- by, 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 City Bo~ds G/O Notice Inv. Bids 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 £ro~ the date of the bonds to the date of delivery. Such accrued interest, if any, shall be computed on a ~60-day year basis. The cost of printing the bonds will be borne by the city. RIzht 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 lnfo~mality in any bid. ~ompt 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 pro- posals; provided that the award may be made after the expira- tion 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, 117 Winston Street, Los Angeles, California, or at any other place agreeable to both the successful bidder and the city. prompt Dellver~$ 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 City/Notice inv. I ~.0. 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 1962 WATER REVE~UEBONDS, SERIES A." Bid Check: A certified or cashier's check on a $10,000 responsible bank or trust company in the amount of~X~ ~~x~ma~s, payable to theorder 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 accompanying each unaccepted proposal will be returned promptly. Change in Tax Exempt Status: At any time before the bonds are tendered fo~ delivery, the successful bidder ma2 disaffirm and withdraw the proposal if the interest received by private.holders from bonds of the same type and ch&raoter 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. Lesal 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. A copy of such opinion, certified by an appropriate officer of the city 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 Litisation 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: For further information respecting the terms and conditions of the bonds, bidders are referred to the copy of the resolution of issuance which accompanies the Official Statement. Said resolution contains the various covenants and provisions made for the security and protection of the bondholders, including covenants relat- ing to rates and charges to be made for water service, the use of the revenues of the water system, the establishment of funds, the limitations upon transfer from the Water Fund, the limita- tions upon additional debt payable from such revenues, and said bonds shall be issued under and pursuant to said resolu- tion. Copies of this notice inviting bids for the purchase 10. of said bonds, together with copies of said Official Statement to be issued in connection with the sale of said bonds and copies of said resolution of issuance may be obtained from Stone & Youngberg 1314 Russ Building San Francisco, California or Carl J. Thornton City Manager City Hall Santa Aha, California. GIVEN by order of the City Council of the City of Santa Aha, adopted May 18, 1962. Clerk of~a~-~~y of Santa Aha, California ll. Section 6. 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 York, New York, but failure to pub- lish said advertisement in THE BOND BUYER or any defect in such publication shall not invalidate or in any manner affect the proceedings for the sale of the bends. Section ?. That said advertisement shall be substantially as follows: 12. $3,000,000 CITY OF SANTA ANA, CALIFORNIA WATER REVENUE BONDS The City Council of the City of Santa Ana, California, will receive sealed bids until 2:00 o'clock P.M., California Daylight Saving Time, on JUNE 12, 1962 at the Council Chambers of the City Council in the City Hall in the City of Santa Aha, California, for the sale of $3,000,000 1962 WATER REVENUE BONDS, SERIES A, to be dated July l, 1962, maturing in consecutive numerical order on July I in the amounts for each of the several years as follows: Year Principal Year Principal Amount Amount 1964 $10,000 1974 $90,000 1965 20,000 197~ 90,000 1966 30,000 197~ 90,000 1967 50,000 197~ lO0,O00 1968 70,000 197~ 100,000 1969 ~0,000 19%9 llO,O00 1970 UO,O00 19U0 ll0,000 1971 80,000 1981 120,000 1972 80,000 1982 120,000 1973 80,000 1992 1,500,000 The bonds, accompanied by the approving opinion of O'Melveny & Myers, Los Angeles, California, will be delivered at Jeffries Banknote Company ll7 Winston Street, Los Angeles, California. The term bonds maturing on July 1, 1992 are callable on July l, 1972 at the terms and prices stated in the Notice Inviting Bids. 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. Upon request a copy of the Notice Inviting Bids and of the Official Statement including the resolution authorizing the issuance of said bonds, will be furnished by Stone & Youngberg, 1314 Russ Building, San Francisco, California, or Carl J. Thornton, City Manager, City Hall, Santa Aha, California. MARION SUTTNER Clerk of~C~ciI~ of the City of Santa Aha, California. 13. adoption. Section 8. This resolution shall take effect upon ADOPTED, SIGNED AND APPROVED this i8th , 19 62. day o~ ~/ ~t~a Ana, C&lifornla (SZA ) STATE OF CALIFORNIA ) COUNTY OF ORANGE / ss. CITY OF SANTA ANA I, MARION SUTTNER, Clerk of the Council of the City of Santa Aha, California, DO HEREBY CERTIFY that the foregoing resolution was duly adopte.~ by the City Council of said city and was approved by they~yor of said city at an adjourned regular meeting of said City Council held on the 18th day of May, 1962, and that it was so adopted as follows: AYES: Councilmen Henry H. Schlueter, Dale H. Heinly, Bob Brewer, Royal E. Hubbard NOES: Councilmen None ABSENT: Councilmen A.A.Hall (SEAL) Cle~k'of the'Council of the City of Santa Ana, California. 15.