HomeMy WebLinkAboutCC Res 1649 1968-03-18
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RESOLUTION NUMBER 1649
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEAL BEACH, CALIFORNIA, DIRECTING THE CITY
CLERK TO PtmLISH NOTICE INVITING BIDS FOR
WATER REVENUE BONDS IN THE PRINCIPAL AMOUNT
OF $700,000.
WHEREAS, a resolution providing for the issuance of
water revenue bonds of the City of Seal Beach, California,
in the principal amount of $700,000 has been adopted by
the City Council of said City; and
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WHEREAS, it is desirable that said bonds be sold;
NOW, THEREFORE, the City Council of the City of
Seal Beach, 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 inviting bids
hereinafter set forth.
Section 2. The City Clerk is authorized and directed
to cause said notice to be published once in the
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ORANGE COAST DAILY PILOT, said publication to be at least
seven days prior to the date set for receiving sealed
proposals.
Section 3. Said notice shall be substantially as
follows:
Resolution Number
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l<<>TICE INVITING BIDS ON $700.000
WATER REVENUE BONDS OF THE CITY
OF SEAL BEACH. CALIFORNIA.
l<<>TICE IS HEREBY GIVEN that sealed proposals
for the purchase of $700.000 par value water revenue
bonds of the CITY OF SEAL BEACH, will be received by
the City Council of said City at the place and up to
the time below specified:
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PLACE:
8:00 P.M. Monday,
April 15. 1968
Pacific Standard Time
Ci ty Hall
201 Eighth Street
Seal Beach. California 90740
City Clerk
City of Seal Beach
201 Eighth Street
Seal Beach, California 90740
TIME:
MAILED . BIDS :
OPENING OF BIDS: The bids Will be opened at the
meeting of said City Council to be held April 15, 1968.
at 8:00 P.M. o'clock at the City Hall of said City.
ISSUE: $700.000 designated "CITY OF SEAL BEACH.
1968 WATER REVENUE BONDS, II consisting of 140 bonds. num-
bered 1 to 140. both inclusive. of the denomination of
$5.000 each. dated January 1. 1968.
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MATURITIES: The bonds will mature in consecu-
tive numerical order on January 1 in the amounts for each
of the several years as follows:
Resolution Number
!!!!: Amount
I 1970 $ 5,000
1971 5,000
1972 10,000
1973 10,000
1974 l5,OOO
1975 l5;000
1976 15,000
1977 15,000
1978 20,000
1979 20,000
1980 20,000
1981 20,000
1982 20,000
198~ 20,000
199 490,000
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 semiannually.
PAYMEl'ft':
Said bonds and the interest thereon
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w~ll be payable in lawful money of the Uhited States of
America at the main office of the Bank of America N.T. & S.A.
in Los Angeles, California, or San Francisco, California
(or collectible through any of its branches in California)
or, at the option of the holder, at any paying agent of the
City in Chicago, Illinois, or in New York, N.Y.
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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 accord-
ance with the proviSions in the resolution of the City
Council providing for the issuance of the bonds, Resolution
No. 1598, adopted September 18, 1967.
REDEMPTION: The bonds maturing on or prior to
January 1, 1983,' shall not be subject to call or redemp-
tion prior to maturity. The bonds maturing on January 1,
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January 1, 1998 or any of them. may be called before maturity
and redeemed at the option of the City Council of said City
on J!l-nuary 1.1984. or on any'interest payment date there-
after prior to maturity, at a redemption price for each
redeemable bond equal to the principal amount thereof;
plus a premium as set forth below if redeemed at the
following times:
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On or After Prior to Percentage
JJanuary 1) JJanuary 1) of Principal
1984 1985 3-1/2%
1985 1986 3-1/4%
1986 198~ 3%
1987 198 2- 3/4%
1988 1989 2-1/2%
1989 1990 2-1/4%
1990 1991 2%
1991 1992 1-3/4%
1992 199~ 1-1/2%
1993 199 1-l/4%
1994 1995 l%
1995 1996 3/4%
1996 1997 1/2%
1997 1998 1/4%
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
'by lot. A sinking fund with compulsory redemption pro-
visions far the term bonds maturing on January 1, 1998,
has been established in the resolution of the City Council
providing for the issuance of the bonds.
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PURPOSE OF ISSUE: The bonds were authorized
for the acquisition. construction and financing of additions
to and extensions of the waterworks system of the City of
Seal Beach. inclUding installation of additional storage
facilities. wells. pumping stations. main pipe lines. inter-
connection facilities and the acquisition of land and rights
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Resolution Number
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of way. and including all engineering. inspection and legal
fees. fiscal agent's fees, costs of the ~ssuance of the bonds.
and bond reserve funds, and other costs and expenses inciden-
tal to or connected with such acquisition. construction
and financing.
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SECURI'lY: Said bonds are issued pursuant to
the Charter of the City of Seal'Beach. Chapter 4B of the
Seal Beach City Code (Which incorporates certain procedures
of the Revenue Bond Law of 1941. commencing with Govern-
ment Code. Section 54300) and the resolution of the City
Council providing for the issuance of the bonds. The
bonds are equally secured by a pledge. charge and lien
upon the gross revenues 'of the entire waterworks system
of the City of Seal Beach together with all improvements
and extensions of said system later constructed or ac-
quired. except payments required to be made by the City
pursuant to certain agreements as defined in the defintion
of "gross revenues' of the enterprise" set forth in the
resolution of the City Council providing for the issuance
of the bonds. The principal of and interest on the bonds
and any premi ums upon the redemption of any thereof prior to
maturity are not a debt of the City of Seal Beach 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 waterworks
system which are. under the terms of the resolution of the
City oouncil providing for the issuance of the bonds.
pledged to the payment of the principal of and interest on
the bonds and any premiums upon the redemption of any thereof
prior to maturity. The General Fund of the City of Seal
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Resolution Number
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Beach is not liable for the payment of the principal of and
interest on the bonds, nor is the credit or the taxing power
of the City pledged. The holders of the bonds or interest
coupons shall not compel the exercise of the taxing power
of the City of Seal Beach, or the forfeiture of any of its
property.
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TERMS OF SALE
Interest Rate: The maximum rate bid may not exceed
6% per annum, payable semi-annually. 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. 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, and bids providing for
additional or supplemental coupons will 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 date of delivery, the
premium, if any, and the interest rate or rates 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.
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Resolution Number
Highest Bidder:
The bonds will be awarded to the
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highest responsible bidder or bidders considering the in-
terest 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
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interest from the date of the bonds to the date of delivery
computed on a 360-day year basis. The cost of printing the
bonds will be borne by the city.
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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 b~d.
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.
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Place of Delivery: Delivery of said bonds will
be made to the successful bidder at the main office of the
Bank of America National Trust and Savings Association in
Los Angeles, California, or at any other place mutually
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agreeable to the City and the successful bidder.
Prompt Delivery; Cancellation for Late Delivery:
It is expected that said bonds will be delivered to the suc-
cessful bidder within 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
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.
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
Seal Beach, 1968 Water Revenue Bonds."
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 bonds of the same type and
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Resolution Number
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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.
regal Opinion:
The unqualified opinion of
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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 offioer
of the city by his facsimile signature will be printed on
the back of eaoh bond. No charge will be made to the pur-
chaser for such printing or certification.
No Litigation Certificate: At th~ 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 information
concerning the city should be addressed to:
Stone & Youngberg
Municipal Financing Consultants
l314 Russ Building
San Francisco, California 94104
GIVEN by order of the City Council of the City of
Seal Beach, California, adopted Maroh 18, 1968.
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City of Seal Beach,
California.
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Resolution Numb~r
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ADOPTED, SIGNED AND APPROVED this
18th day of
March
, 19~.
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ATTEST:
c~~i ~~ of
seal Beach , California.
(SEAL)
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Resolution Number
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STATE OF CALIFORNIA
COUNTY OF ORANGE
CITY OF 'SEAL BEACH
~, 'SSe
I, a...t"P'~ . City Clerk '
of the City of ' Se~ach . . "California, DO HEREBY
CElU'IFY that the roregoing resolution was duly adopted '
by the City Council of said city and was approved by the
Mayor or said city at a -, , - res.uJ,ar meeting of
said city Council held on the /k'-I:J.day of ~ .
19 68. and that it was so adopted as follows:
AYES: councllmenOA?.6A4n> ~C.'-_H ,
_~AH"""J'2;"J.. ~'Io 4~#j".
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Councilmen ~-
Councilmen ~
~~f~ or
Seal Beach, Ca11rornia
NOES:
(SEAL )
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