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HomeMy WebLinkAbout74-076RESOLUTION NO. 74-76 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA, DIRECT- ING THE CLERK OF THE COUNCIL TO PUB- LISH NOTICE INVITING SEALED PROPOSALS FOR $1,950,000 WATER REVENUE BONDS DESIGNATED "1962 WATER REVENUE BONDS, SERIES C." WHEREAS, a resolution providing for the issuance of water revenue bonds of the City of Santa Ana in the amount of $1,950,000 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. Sealed bids for the purchase of said bonds shall be received up to the time stated in the notice hereinafter set forth. Section 2. The Clerk of the Council is hereby authorized and directed to publish said notice once, at least ten days prior to the date fixed for the receipt of bids, in THE SANTA ANA REGISTER, a newspaper of general circulation published in said city. Section 3. The Official Statement to be sent to prospective bidders for said bonds is hereby approved in substantially the form presented this date to this City Council. Section 4. The Clerk of the Council is hereby authorized and directed to cause to be furnished to prospec- tive bidders copies of the resolution authorizing issuance of the bonds, the notice inviting bids and the Official Statement 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. The notice inviting bids shall be sub- stantially as provided in Exhibit "A" attached hereto and made a part hereof as though set forth in full. Section 6. This resolution shall take effect upon adoption. PASSED AND ADOPTED by the City Council of the City of Santa Ana at its regular meeting held on the 6th~ day of ~, , 1974. ATTEST: CLERK OF THE COUNCIL RESOLUTION NO. 74-76 PAGE TWO STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF SANTA ANA ) I, FLORENCE I. MALONE, do hereby certify that I am the Clerk of the Council of the City of Santa Ana; that the fore- qoing Resolution was introduced to said Council at its regular meeting held on the 8t~ day of JM~y , 1974, and was at said meeting passed and adopted by the following vote, to wit: AYES, NOES, ABSENT, COUNCILMEN: COUNCILMEN: COUNCILMEN: ~van~ ~,marn~o,: l~rk~lL Garthe, ~atter~ Ward,~ Griset None APPROVED AS TO FORM: RNEY 516174 3/88 DUE TO POOR CONDITION ORIGINAL DESTROYED- NOTICE INV/TING BIDS ON $1,950,000 WATER REVENUE BONDS OF THE CITY OF SANTA ANA, CALIFORNIA. NOTICE IS HEREBY GIVEN that sealed proposals for the purchase of $1,950,000 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: Monday, June 3, 1974. at 10:00 o'clock A.M. PLACE: Council Chambers of the City Council City Hall 20 Civic Center Plaza Santa Ann, California 92701 MAILED BIDS: Mailed bids should be addressed to the City, % Clerk of the Council City Hall, 20 Civic Center Plaza Santa Aha, California 92701 OPENING OF BIDS: The bids will be received and opened by the Clerk at the above time and place and will be presented to the City Council at its meeting to be held at 2:00 o'clock P.M. on the same day. ISSUE: $1,950,000 Water Revenue Bonds, designated "1962 Water Revenue Bonds, Series C", dated July 1, 1974. DENOMINATIONS AND NUMBERS: The bonds will be in the denomination of $5,000 each, and shah be 390 in number, numbered CI to C390, inclusive. MATURITIES: The bonds will mature in consecutive numerical order on July 1 in the amounts for each of the several years as follows: Years Inclu~ve Amount 1975 - 1985 ................................................ ] ...... $ 40,000 1986- 1989 ....................................................... 50,000 1999 ............................................................. 1,310,000 INTEREST: The bonds shall bear interest at a rate or rates to be fixed upon the sale thereof but not to exceed 7% per annum, payable semiannually. PAYMENT: The 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 Aha, in said City, or, at the option of the holder, at any paying agent of the City in Los Angeles or San Francisco, California, Chicago, Illinois, or New York, New York. REGISTRATION: The bonds will be issued as bearer bonds with coupons or as fully registered bonds, with exchange privileges, as more fully set forth in the resolution providing for their issuance (the "Resolution"). REDEMPTION: The bonds maturing on or prior to July 1, 1984 shah not be subject to call or redemption prior to maturity. The bonds maturing on or after July 1, 1985, are subject to call 5/6/74 a~d redemption, at the option of the City, on July 1, 1984, or on any interest payment date thereafter prior to maturity, at a redemption price equal to the principal amount thereof plus a pr~aium equal to one-quarter of one percent of said principal amount for each year or portion o£ a year between the redemption date and the maturity date thereof. All or any of the bonds subject to call may be called for redemption at any one time. If less than ali of the bonds are redeemed at any one time, such bonds shall he redeemed only in inverse order of maturity and by lot within the same maturity. The $1,310,000 bonds maturing in 1999 are subject to mandatory call and redemption in the following minimum amounts: Year ~ount 1990 ........................................ $ 50,000 1991 ........................................ 50,000 1992 ........................................ 50,000 1993 ........................................ 5~000 199~ ....................................... 5~000 Am~ttut 1995 ........................................ $190,000 1996 ........................................ 200,000 1997 .............. ~ ......................... 210,000 1998 ........................................ 220,000 1999 ........................................ 240,000 PURPOSE OF ISSUE: The bonds were authorized for the acquisition and construction of additions to the water system for the City of Santa Ans. 1962 Water Revenue Bonds, Series A and B, aggregating $5,000,000 of a total authorized amount of $6,950,000, have previously been issued and sold. SECURITY: The bonds are issued pursuam to the Charter of the City of Santa Ant, the Revenue Bond Law of 1941 (Governmem Code 54300 et seq.) and Article g, Chapter 3, Part 1, Division 2, Title 5 of said Government Code. The bonds are equally secured by pledge, charge and lien upon the gross revenues of the entire water system of the City of Santa Ant, 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 Ant 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 and said Revenue Bond Law of 1941, pledged to the payment of said bonds and interest. The general fund of the City of Santa Ant 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 Ant or the forfeiture of any of its property. TERMS OF SALE interest Rate: The maximum rate bid may not exceed 7% per annum, payable semiannually. Each rate bid must be a multiple of 1/20 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 coupon will be attached to each bond for each installment of interest thereon, and bids providing for additional or supplemental coupons wilt be rejected. The rate on any maturity or group of maturities shall not be more than 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 dat~ of delivery, the premium, if any, and the imerest 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 informatiw only and not a pan of the bid. 2 5/6/74 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 computed on a 360-day year basis. The cost of printing the bonds will be borne by the City. Right of Rejection: The City reserves the right, in :ts thscret:on, 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 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 and Funds for Payment: Delivery of said bonds will be made to the successful bidder at Jeffries Banknote Company, 1330 West Pico Boulevard, Los Angeles, California, or at any other place agreeable to both the successful bidder and the City. Payment shall be in Federal Reserve Bank Funds or other funds immediately available to 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. 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 REVENUE BONDS, SERIES C." 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. 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 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. 3 516/74 The unqualified opinion of said attorneys that interest on the bonds is exempt from income tax~ of the United States of America under present federal income tax laws, and that such interest is aim exempt from personal income taxes of the State of California under present state income tax laws, will also be furnished the successfni bidder at or prior to the time of delivery of the bonds, at the expense of the City. CUSIP Numl~ra: CUSIP numbers have been applied for and will be printed on the bonds at the City's expense. Neither the absence of CUSIP numbers nor the presence of an incorrect number on any or all of the bonds shall constitute reason for the purchaser thereof to refuse to accept delivery. No Litigation Certific~e: 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 copies of the Resolution and the Official Statement pertaining to the bonds, or. for other information concerning the City should be addressed to Stone & Voungberg, Municipal Financing Consultants, Inc., financing consultants to the City, 1541 Wilshir~ Boulevard, Los Angeles, California 90017. GIVEN by order of the City Council of the City of Santa Ana, adopted May 6, 1974. City Clerk of the City of Santa Ana, California 4 ;5,'