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HomeMy WebLinkAbout63-179RESOLUTION NO. 65-179 RESOLUTION OF THE CITY COUNCIL 0F THE CITY 0P SANTA ANA, CALIFORNIA, DIRECT- ING THE CLERK OF THE COUNCIL TO PUB- LISH NOTICE INVITING SEALED PROPOSALS FOR $2,000,000 WATER REVENUE BONDS DESIGNATED "1962 WATER REVENUE BONDS, SERIES B." WHEREAS, a resolution providing for the issuance of water revenue bonds of the City of Santa Ana in the amount of $2,000,000 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 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 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 1962 WATER REVENUE BONDS, SERIES B 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 bid and of an official statement relating to the proper- ties, 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 5. That said notice inviting sealed bids or proposals shall be substantially as follows: NOTICE INVITING BIDS ON $2,000,000 WATER REVENUE BONDS OF THE CITY OF SANTA ANA, CALIFORNIA. NOTICE IS HEREBY GIVEN that sealed proposals for the purchase of $2,000,000 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: Monday, December 16, 1963 at 7:30 o'clock P.M. Council Chambers of the City Council City Hall, 217 North Main Street Santa Ana, California. Mailed bids should be addressed to the city, c/o Doris M. Brown Clerk of the Council City Hall, 217 North Main Street Santa Aha, California. OPENING OF BIDS: The bids will be opened at the meeting of said City Council to be held December 16, 1963, at 7:30 o'clock P.M. at the City Hall of said city. ISSUE: $2,000,000 Water Revenue Bonds, designated "1962 Water Revenue Bonds, Series B" (being Series B of a total authorized amount of $6,950,000), dated January 1, 1964. DENOMINATIONS AND NUMBERS: The bonds will be in the principal sum of $2,000,000, shall be all in the denomina- tion of $5,000 each, or if expressly so requested by the purchaser at his option, all in the denomination of $1,000 each, and shall either be 400 in number, numbered B1 to B~00, inclusive, or 2000 in number, numbered B1 to B2000, inclusive, depending upon the denomination determined as above. MATURITIES: The bonds will mature in consecutive numerical order on July i in the amounts for each of the several years as follows: Years Principal Years Principal Inclusive Amount Inclusive Amount 1965 $1o,ooo 1971-1975 $5O,OOO 1966 20,000 1976-1980 60,000 1967-1968 30,000 1981-1984 70,000 1969-1970 40,000 1994 1,000,000 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: 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 ing agent of the city in Los Angeles or San Francisco, fornia, Chicago, Illinois, or in New York, New York. Said bonds and the interest thereon are any pay- Cali- REGISTRATION: The bonds will be coupon bonds registrable either as to principal only or as to both principal and interest. C~T~.~BLE: The bonds maturing on or prior to July 1, 1984 shall not be subject to call or redemption prior to maturity. The bonds maturing on July l, 1994, are subject to call and redemption, at the option of the district, on July l, 1974, 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 PREMZUNS On or And On or And After Prior to After Prior to July 1 July 1 Premium July 1 July 1 Premium 1974 1975 4% 1980 1981 1-1/4% 1975 1976 3-1/2% 1981 1982 1% 1976 1977 3% 1982 1983 3/4% 1977 1978 2-1/2% 1983 1984 1978 1979 2% 1984 1985 1/4% 1979 1980 1-1/2% 1985 Maturity -0- 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 Ana. 1962 Water Revenue Bonds, Series A, consisting of $3,000,000 of a total authorized amount of $6,950,000, dated July l, 1962, have previously been issued and sold. 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 Ana. Said bonds are equally secured 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 improvements 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 Ana 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 Santa Aha 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 compel the exercise of the taxing power by the City of Santa Aha or the forfeiture of any of its property. TERMS OF SALE Interest 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 1/20 of 1%. No bond ~all bear more than one interest rate, and all bonds of the same maturity shall bear the same rate. Only one coupon 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. The re- petition 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 f~ 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 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. Hi~hest 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 computed on a S60-day year basis. The cost of printing the bonds will be borne by the city. Right of Re~ection: 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 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 ex- piration 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 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 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. For~ 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 REVENUE BONDS, SERIES B." Bid Check: A certified or cashier's check on a responsible bank or trust company in the amount of $10,000, 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 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. Chan~e 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 bands 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 O'Melveny &Myers, 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. A copy of such opinion, certified by an officer of the city by his facsimile signature will be printed on the back of each bond. No charge will be made to the purchaser for such printing or certification. No Liti~ation 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 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 Ana, adopted November 18, 1963. DORIS M. BROWN City Clerk of the City of Santa Ana, California 10. Section 6. This resolution shall take effect upon adoption. ADOPTED, SIGNED AND APPROVED this 18th day of November, 1963. gfa, California. ATTEST: ,~ld,,, ~ ~,i.~_~..c,.~. ~ Santa Ana, California. (SEAL) ll. STATE OF CALIFORNIA ) COUNTY OF ORANGE / ss. CITY OF SANTA ANA I, DORIS M. BROWN, Clerk of the Council of the City of Santa Ana, California, DO HEREBY CERTIFY that the foregoing resolution wes 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 18th day of November, 1963, and that it was so adopted as follows: Councilmen Hubbard~ Harvey~ Gilmore, $chlueter NOES: Councilmen None ABSENT: Councilmen Hall (SEAH) Clerk of the Council Of the City of Santa Aha, California.