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HomeMy WebLinkAboutCity Council - 1848 RESOLUTION NO. 1848 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH, CALIFORNIA, DIRECTING THE CITY CLERK TO PUBLISH NOTICE INVITING SEALED PROPOSALS FOR BONDS OF SAID CITY DESIGNATED "1963 WATER REVENUE BONDS, SERIES A" . IN THE AMOUNT OF $3,750,000. WHEREAS, a resolution providing for the issuance of bonds of the City of Huntington Beach, California, in the amount of $3,750,000 to be designated "1963 WATER REVENUE BONDS, SERIES has been introduced; and WHEREAS, it is desirable that said bonds be sold; NOW, THEREFORE, the City Council of the City of Huntington 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 hereinafter set forth. Section 2. That the City Clerk be and is hereby authorized and directed to publish said notice once in the HUNTINGTON BEACH NEWS, a newspaper of general circulation published in said city, said publication to be at least seven days prior to the date for receiving bids. Section 3. That said notice shall be substantially as follows: NOTICE INVITING BIDS ON $3,750,000 BONDS OF THE CITY OF HUNTINGTON BEACH, CALIFORNIA, DESIGNATED "1963 WATER REVENUE BONDS, SERIES A." NOTICE IS HEREBY GIVEN that sealed proposals for the purchase of $3,750,000 par value water revenue bonds of the City of Huntington Beach, California, will be received by the City Council of said city at the place and up to the time below specified. TIME: Wednesday, October 2, 1963 at 7:30 o 'clock P.M. PLACE: City Hall Huntington Beach, California MAILED BIDS: Mailed bids should be addressed: City of Huntington Beach c/o Mr. Paul C. Jones City Clerk City Hall Huntington Beach, California OPENING OF BIDS: The bids will be opened at the meeting of said City Council to be held October 2, 1963, at 7:30 o'clock P.M. at the City Hall of said city. ISSUE: $3,750,000 consisting of 3,750 bonds, numbered Al to A3,750, both inclusive, of the denomination of $1,000 each, all dated November 1, 1963, and to be designated "1963 WATER REVENUE BONDS, SERIES A," 3/63-2 MATURITIES: The bonds will mature in consecutive numerical order on November 1 in the amounts for each of the several years as follows: Maturity Years Amount Maturity Years Amount -Inclusive- Each Year - Inclusive- Each Year 1965 $10,000 1974 - 1976 $ 110,000 1966 20,000 1977 - 1976 120,000 1967 40,000 1979 - 1980 130,000 1968 60,000 1981 140,000 1969 80,000 1982 - 1983 150,000 1970 - 1971 90,000 1993 1,890,000 1972 - 1973 100,000 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: Said bonds and the interest thereon will be payable in lawful money of the United States of America at the Security First National Bank of Los Angeles, in Los Angeles, California, Fiscal Agent for the city, or, at the option of the holder, at any paying agent of the City in 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 . CALLABLE: The bonds maturing on or prior to November 1, 1983, shall not be subject to call or redemp- tion prior to maturity. The bonds maturing on November 1, 1993, are subject to call and redemption, at the option of the city, on November 1, 1973, or on any interest payment date thereafter prior to maturity, at a redemption price equal to the principal 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 November 1 November 1 Premium November 1 November 1 Premium 1973 1974 4% 1982 1983 1-3/4% 1974 1975 3-3/4 1983 1984 1-1/2 1975 1976 3-1/2 1984 1985 1-1/4 1976 1977 3-1/4 1985 1986 1 1977 1978 3 1986 1987 3/4 1978 1979 2-3/4 1987 1988 1/2 1979 1980 2-1/2 1988 1989 1/4 1980 1981 2-1/4 1989 Maturity 0 1981 1982 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 by lot. A sinking fund with a compulsory redemption provision for the term bonds maturing on November 1, 1993, has been provided for in the Resolution of Issuance. PURPOSE OF ISSUE: Said bonds were authorized for the acquisition, construction and financing of additions to the water system fo the City of Huntington Beach. 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 Huntington Beach, 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 Huntington 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 water system which are under the terms of the resolu- tion 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 Huntington Beach 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 ampel the exercise of the taxing power by the City of Huntington Beach 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 semiannually thereafter. Each rate bid must be a multiple of 1, 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 in- stallment of interest thereon, and bids providing for addi- tional or supplemental coupons will be rejected. The rate on any maturity or group of maturities shall JQWW not be more than % 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 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 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 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 Awards 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 00 Oftuo at aft 000"W* UY W% �► SUOV V3M* I 1 am Prompt Delivery; Cancellation for Late Delivery: It is expected that said bonds will be delivered to the successful bidder within I� 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 AL shall fail to execute the bonds and tender them for delivery within -S days from the date herein fixed for the receipt of bids, and in such event the successful bidder shall be en- titled 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 gW of Bid Check: A certified or cashier's check on a responsible bank or trust company in the amount of MAN yable 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 accompany- ing 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 10 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 of0'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 unless the purchaser requests that such printed copy be omitted. No charge will be made to the purchaser for such printing or certification. No Litigation 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 relating to rates and charges to be made for water service, the use of the revenues of the water system, the establish- ment of funds, the limitations upon transfer from the Revenue Fund, the limitations upon additional debt payable from such revenues, and said bonds shall be issued under and pursuant to said resolution. 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 235 Montgomery Street San Francisco 4, California GIVEN by order of the City Council of the City of Huntington Beach, California, adopted September 3 1963. PAUL C. JONES City Clerk of the City of Huntington Beach, California 3/63-3 ADOPTED, SIGNED AND APPROVED this 3rd day of September , 19 63. t : Mayor o e City' of Huntington Beach California ATTEST: City er o e City o Huntington Beach, California (SEAL) STATE OF CALIFORNIA COUNTY OF ORANGS CITY OF I , PAUL C. JONES City Clerk of the City of HantrEjEon- Beacha ornia, DO HEREBY CERTIFY that the roregoing 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 r day of Sevtenhpr�, 19 6§', and that it was so adop a as follows: AYES: Councilmen Wel_, is. Gisler, art Welch. Lambgrt NOES: Councilmen _None ABSENT: Councilmen None C� y er y o (SEAL) Huntington Beach, California