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HomeMy WebLinkAboutCC Reso No 1965-1149 RESOLUTION NQ. 1149 RESOLUTiON OF THE CITY COUNCiL OF THE CITY OF ElliSINORE, COUNTY OF RIVERSIDE, CALIFORNIA, DECLARING ITS iNTENTION TO SELL WATER REVENUE BONDS OF SAID CITY IN TNE AMOUNT OF $400,000 AND FIXING TIME AND RLACE FOR TAKING BIDS AND DIRECTING RUBLICATION OF NOTICE INVITING BIDS. WHEREAS, this City Council deems it proper and the necessity therefor appears that bids be invited for $400,000 of water revenue bonds of the City of Elsinore, and that if bids are satisfactory said bonds be sold in the manner and at the time and place hereinafter set forth; NOW, THEREFORE, the City Council of the City of Elsinore, County of Riverside, DOES HEREBY RESOLVE, FIND, DETERMINE, AND ORDER as follows: Section 1. That sealed proposals for the pu~chase of said $400,000 of water revenue bonds be received by this City Council at its Chambers in the City Hall in said city, 130 South Main Street, up to the hour of 7:30 o'clock P.M., February 23, 1965. Section 2. That the City Clerk is hereby authorized and directed to publish notice inviting such sealed proposals once in the LAKE ELSINORE VALLEY SUN, said publication to be at least ten days prior to the date for opening bids stated in said notice. Section 3. That said notice shall be substantially as follows: NOTICE INVITING BIDS ON $400,000 WATER REVENUE BONDS OF THE CITY OF ELSINORE, RIVERSIDE COUNTY, CALIFORNIA. NOTICE IS HEREBY GIVEN that sealed proposals for the purchase of $400,000 par value water revenue bonds of the City of Elsinore, County of Riverside, California, will be received by the City Council of said city at the place and up to the time below specified: TIME: Tuesday, February 23, 1965 7:30 o'clock P.M. California Standard Time PLACE: Chambers of the City Council City Hall, 130 South Main Street Elsinore, California MAILED BIDS: Mailed bids should be addressed to: City Clerk City Hall 130 South Main Street Elsinore, California ISSUE: $400,000 consisting of 400 bonds, num- bered 1 to 400, both inclusive, of the denomination of $1,000 each, all dated May 1, 1964, and designated CITY OF ELSINORE, 1964 WATER REVENUE BONDS. MATURITIES: The bonds will mature in consecutive numerical order on May 1 in the amounts for each of the several years as follows: Years, Inclusive Principal Amount 1966 - 1967 1968 - 1978 1979 - 1987 1988 - 1993 1994 $ 5,000 10,000 15,000 20,000 25,000 2. INTEREST: The bonds shall bear interest at the rates or rate to be fixed not to exceed six per cent (6%) per annum, payable annually the first year and semiannually thereafter 0 FAYMENT: Said bonds and the interest thereon are payable in lawful money of the United States of America at the main office of the Security First National Bank in the City of Los Angeles, California, or, at the option of the holder, at paying agents of the City of Elsinore in the Borough of Manhattan, City and State of New York. REGISTRATION: The bonds will be coupon bonds registrable as to principal onlyo CALLABLE: The bonds maturing on or prior to May 1, 1974, shall not be subject to call or redemption prior to maturity. The bonds maturing on or after May 1, 1975, or any of them, may be called before maturity and redeemed at the option of the City Council on May 1, 1974, or on any interest payment date thereafter prior to maturity at a redemption price equal to the principal amount thereof and accrued interest, plus a premium equal to 1/4~ of such principal amount for each whole year or fraction of a year from the date fixed for redemption to the maturity date of such bonds, provided, that in no event shall such premium exceed 4~ of such principal amount. Notice of the intended redemption shall be pUbliShed at least thirty (30) days prior to the redemption date. Allor any of the bonds subject to call may be called for redemption at anyone time 0 If less than all of the bonds are redeemed at any 3. one time, such bonds shall be redeemed only in inverse order of maturity and number beginning with the highest numbered bond. PURROSE OF ISSUE: Said bonds were authorized for the acquisition and construction and financing of extensions of, additions to, and improvements of the water system of the City of Elsinore. SECURITY: Said bonds are issued pursuant to the Revenue Bond Law of 1941 (Government Code 54300 et seq.). Said bonds are equally secured by a pledge, charge and lien upon the gross revenues of the entire water system of the City of Elsinore, including all improvements later con- structed or acquired. 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 Elsinore 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, 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 of the City of Elsinore or the forfeiture of any of its property. TERMS OF SALE Award: The bonds shall be sold for cash only at a price of not less than par plus accrued interest from May 1, 1964, to the date of delivery and the premium, if any. Any number of interest rates may be bid, but no bond shall bear more than one interest rate, and all bonds of 4. 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 will be rejected. Bidders may bid for any or all of said bonds on the fOllowing alternatives: 1. All maturities in the years 1966 through 1974. 2. All maturities in the years 1975 through 1979. 3. All maturities in the years 1980 through 1984. 4. All maturities in the years 1985 through 1989. 5. All maturities in the years 1990 through 1994. 60 The entire issueo Each bid shall specifY the interest rate or rates bid on each alternative and the premium, if any, on each alter- native. The Housing and Home Finance Agency has entered into a Loan Agreement with the City of Elsinore pursuant to which it proposed to buy these bonds at a 3-7/8~ interest rate, providing no other bidder or bidders offer to purchase all of the bonds at an interest cost of not more than 4 per centum per annum, or any portion of the bonds in blocks as specified at an interest cost of not more than 4 per centum per annum for maturities of twenty-five years or more, or 3-7/8 per centum per annum for maturities not in excess of twenty-five (25) years. Highest Bidder: Bids will be considered on the basis of the above alternatives and the bonds will be awarded to the responsible bidder or bidders offering to purchase the bonds or any group of maturities at the lowest net interest cost to the city not exceeding the net interest cost for the maturities as hereinabove set forth. In case two or more bidders bid the same net 5. interest cost for any alternatives, which does not exceed the net interest cost for that alternative as hereinabove set forth, the award will be made by lot. The lowest net interest cost to the city shall be determined by deducting the premium bid, if any, from the total amount of interest which the city would be required to pay from the date of the bonds to the respective maturity dates thereof at the coupon rate or rates specified in the bid. The purchaser must pay accrued interest (computed on a 360-day year basis) from May 1, 1964, 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 awarding the bonds or rejecting all bids not later than twenty-six hours after the expiration of 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 said Board 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 place agreeable to both the Treasurer of the city and the successful bidder. 60 Prompt Del~very, Cancellat~on for Late Del~very: It ~s 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: IIProposal for City of Elsinore Water Revenue Bonds" Bid Check: Each bidder, except the United States of America, or any agency thereof, must accompany his bid with a certified or cashier1s check on a responsible bank or trust company in the amount of 3% of the principal amount of the bonds for each alternative for which he bids, payable to the order of the city 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 accom- panying 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. Only one certified check need be submitted with any bid although the bidder may be bidding on one 7. or more alternatives; however, in the event the bidder is awarded the bonds of less than all of the alternatives on which he bids the full amount of the certified check will be applied prorata to the purchase price of the alternative or alternatives awarded to said bidder. 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 law, either by a ruling of the Internal Revenue Service or by a decision of any federal court, or shall be declared to be 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 honds, at the expense of the city. A copy of the legal opinion certified by the City Treasurer by his facsimile signature will be printed on the back of each bond without cost to the successful bidder if requested in his bid. 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. 8. Information Available: Requests for information concerning the city and for a copy of the Resolution Authorizing the Issuance of the Bonds should be addressed to: City Clerk City Hall 130 South Main Street Elsinore, California. GIVEN by order of the City Council of the City of Elsinore, California, adopted January 25 , 1965. '~.. ~v, . ",;1,.-;7 ~,~/~ ;;:1.t:':-:>',/,/ '~,' {Ll/I.,,;>h,/:/ City Clerk of the City of Elsinore, California. 9. Section 4. That the City Clerk is hereby authorized and directed to cause to be furnished to prospective bidders, upon request, copies of the Notice Inviting Bids and the Resolution Authorizing the Issuance of the Bonds and to publish t~e following notice in THE BOND BUYER, a financial n~wspaper of general circulation published in the City of New York, but failure in whole or in part to complY with this section shall not in any manner affect the validity of the sale: 10. $400,000 WATER REVENUE BONDS OF CITY OF ELSINORE, CALIFORNIA. Sealed bids will be received by the City of Elsinore, City Hall, 130 South Main Street, Elsinore, California, up to 7:30 o'clock P.M. on February 23, 1965, California Standard Time, for the purchase of all or any of the hereinafter designated blocks of the 1964 Water Revenue Bonds of the City of Elsinore. The bonds will be dated May 1, 1964, will mature serially on May 1 in each of the years and in principal amounts as follows: Years, Inclusive Principal Amount 1966 ... 1967 1968 - 1978 19'79 - 1987 1988 - 1993 1994 $ 5,000 10,000 15,000 20,000 25,000 and will bear interest at the rate or rates to be fixed by the City Council not to exceed six per cent (6%) per annum, payable annually the first year and semiannually thereafter. Said bonds are issued pursuant to the Revenue Bond Law of 1941 (Government Code 54300 et seq.). Under said Law said bonds shall be secured by a pledge, charge and lien upon the gross revenues of the water system of the city. The bonds maturing on or prior to May 1, 1974, shall not be subject to call or redemption prior to maturity. The bonds maturing on or after May 1, 1975, are subject to call and redemption, at the option of the city, on May 1, 1974, or on any interest payment date thereafter prior to maturity in the manner and at the premiums set forth in the Resolution Authorizing the Issuance of the Bonds. Bids ~ill be considered on the following basis: 1. All maturities in the years 1966 through 1974. 2. All maturities in the years 1975 through 1979. 3. All maturities in the years 1980 through 1984. 4. All maturities in the years 1985 through 1989. 5. All maturities in the years 1990 through 1994. 6. The entire issue. 11. Each bid shall specify the interest rate or rates bid on each alternative and the premium, if any, on each alternative. The Housing and Home Finance Agency has entered into a Loan Agreement with the City of Elsinore pursuant to which it proposed to buy these bonds at par plus accrued interest at a 3-7/8% interest rate, providing no other bidder or bidders offer to purchase all of the bonds at an interest cost of not more than 4 per centum per annum, or any portion of the bonds in blocks as specified at an interest cost of not more than 4% per annum for maturities of twenty-five years or more, or 3-7/8% per annum for maturities not in excess of twenty-five (25) years. Subject to the foregoing maximum net interest cost, bidders may name the interest rate or rates for each block of bonds or the entire issue in multiples of 1/10 or 1/8 of 1%. Bids for the entire bond issue will be accorded preference over bids for individual or com- bined blocks, except where the sum of the bids for all of the individual and/or combined blocks results in a lower net interest cost for the entire issue. Bids for combined blocks less than the entire issue will be accorded preference over bids for indi- vidual blocks, except where the sum of such individual blocks results in a lower net interest cost for the maximum number of maturities. For the purpose of determining the lowest bidder, calculation of the net interest cost will exclude the bid of the Housing and Home Finance Agency. The successful bidder will be furnished without cost the approving opinion of O'Melveny ~ Myers of Los Angeles, California. A copy of the Official Notice of Sale and the Resolution Authorizing the Issuance of the Bonds together with a Statement of Essential Facts may be obtained from the undersigned upon request. /{~t1/ _...J ... d.; /.; .,,,,~. - ";4/f:-c:"?u/ /"// 1/I.:A'i dfi;~ City Clerk f City Hall 130 South Main Street Elsinore, California 12. ADOPTED, SIGNED AND APPROVED this 25 th day of January , 1965. '~;'-? ~.~ 2~:~1?'7;flt7 --d. ('." af-.-??~<p_/' Mayor of the City of Elsinore, California. ATTEST: /A ~... L ....d '~., -- . - /1> //7 <./ // ;;? 1/t.4KC7 -" .-;-- // Ci ty Clerk of the Ci ty of Elsinore, California. (SEAL) STATE OF CALIFORNIA l COUNTY OF RIVERSIDE CITY OF ELSINORE ss. I, Florene Marsha I I , C1 ty Clerk of the City of Elsinore, California, DO HEREBY CERTIFY that the foregoing resolution was 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 2~th day of January , 1965, and that it was adopte by the following vote, to wit: AYES: Councilmen Stewart. YarborouQh. Berry, DePasquale NOES: Councilmen none ABSENT: Councilmen Bartlett /j '--' h -'- c,>2-~?jl:Le::-?Ce:/'/_/.)d-{.,;! .'0 _.~/ City Clerk of the I City of Elsinore, California. (SEAL) 13.