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HomeMy WebLinkAboutCity Council - 3121 RESOLUTION NO . 3121 - 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. WHEREAS, a resolution providing for the issuance of bonds of the City of Huntington Beach, California, in an amount not to exceed $6,000,000 to be designated"1970 PARK BONDS, SERIES (to be designated if required) " will be adopted prior to award of such bonds; and WHEREAS, it is desirable that such 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 Huntington Beach News , a newspaper of general circulation circulated 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 substan- tially as follows : OFFICIAL NOTICE OF SALE NOT TO EXCEED $6,000,000 GENERAL OBLIGATION BONDS OF THE CITY OF HUNTINGTON BEACH, CALIFORNIA NOTICE IS HEREBY GIVEN that sealed proposals of the City of Huntington Beach will be received by the City Council of the City of Huntington Beach at the place and up to the time below specified . TIME February 16, 1970 2:00 ' o 'clock' P.M. Pacific Time PLACE: City Hall 6th & Pecan Huntington Beach, California MAILED BIDS: Mailed- bids -should be addressed to : City Clerk P.O. Box 190 Huntington Beach, California OPENING OF BIDS: The bids will be opened at 2:00 o'clock P.M. , February 16, 1970, at the City Hall of said city and will be awarded by the City Council at its meeting to be held later that day. PRINCIPAL AMOUNT; SCHEDULES OF MATURITIES bonds are offered for sale in such total principal amount and maturing serially in consecutive numerical order, from lower to higher, on March 1 of each year, as set forth in the following four schedules; provided, however, that the bonds shall be issued in accordance with only one of said schedules, and not otherwise, as may be determined by the City Council at the time of receiving bids for the bonds as set forth below under the heading "Terms of Sale" . 2. With the exception of the redemption provisions relating to Schedules 1, 2, 3 and 4, hereinafter set forth, all of the terms of the bonds set forth in this notice shall apply to each of the schedules of maturities of the bonds . Schedule 1 : $6,000,000 principal amount of City of Huntington Beach 1970 Park Bonds, maturing as follows : Year Amount Year Amount 1971 $110,000 1984 $235,000 1972 115,000 1985 245,000 1973 125,000 1986 26o,000 1974 130,000 1987 280,000 1975 14o,000 1988 295,000 1976 145,000 1989 310,000 1977 155,000 1990 330,000 1978 165,000 1991 350,000 1979 175,000 1992 370,000 1980 185,000 1993 395,000 1981 195,000 1994 415,000 1982 210,000 1995 445,000 1983 220,000 Schedule 2: $4,000,000 principal amount of City of Huntington Beach 1970 Park Bonds, Series A, maturing as follows : Year Amount Year Amount 1971 $110,000 1981 $195,000 1972 115,000 1982 205,000 1973 120,000 1983 220,000 1974 130,000 1984 230,000 1975 135,000 1985 245,000 1976 145,000 1986 260,000 1977 155,000 1987 275,000 1978 165,000 1988 295,000 1979 175,000 1989 310,000 198o 185,000 1990 330,000 3 . Section 3: $4,000,000 principal amount of City of Huntington Beach 1970 Park Bonds, Series A, mpturing as follows Year Amount Year Amount 1971 $170,000 1979 $275,000 1972 180,000 198o 290,000 1973 195,000 1981 310,000 1974 205,000 1982 325,000 1975 215,000 1983 345,000 1976 230,000 1984 365,000 1977 245,000 1985 390,000 1978 26o,000 Section 4: $2,000,000 principal amount of City of Huntington Beach 1970 Park Bonds, Series A, maturing as follows : Year Amount Year Amount 1971 $150,000 1976 $205,000 1972 16o,000 1977 215,000 1973 , 170,000 1978 230,000 1974 18o,000 1979 245,000 1975 1900000 198o 255,000 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 office of the City Treasurer of said city in Huntington Beach, California, or at the option of the holder thereof, at any paying agent of the city in Los Angeles or San Francisco, California, or in Chicago, Illinois, or New York, New York. 4 . REGISTRATION: The bonds will be coupon 'bonds registrable as to principal and interest only, rnd the form of registration may be changed, or the bonds dis- charged from registration, all in accordance with the provisions in the resolution providing for the issuance of the bonds . REDEMPTION: The bonds of $2,000,000 ten year schedule (Schedule 4) alternate issue will not be sub- ject to call or redemption prior to maturity. Bonds of Schedules 1, 2 and 3 respectively maturing on or prior to March 1, 1980 shall not be subject to call or redemp- tion prior to maturity. The bondsmaturing on or after March 1, 1981 or any of them, may be called before maturity and redeemed at the option of the City Council of said city on March 1, 1980 or on any interest pay- ment date thereafter prior to maturity, at a redemption price for each redeemable bond equal to the principal amount thereof, plus accrued interest, plus a permium equal to one quarter of one percent (1/4%) for each year or fraction of a year from theredemption date to the maturity date of the bond, provided that in no event shall such premium exceed one and one quarter percent (1-1/4%) for Schedule 3, two and one half percent (2-1/2%) for Schedule 2 and three and three quarter percent , (3-3/4%) for Schedule 1. 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 onetime, such bonds shall be redeemed only in inverse order of maturity and number beginning with the highest numbered bond . 5. PURPOSE OF ISSUE: Said bonds were authorized at an election held June 3, 1969 for the purpose of providing park and recreational facilities to the City of Huntington Beach. SECURITY: Said bonds are issued pursuant to Article 1, Chapter 4, Division 4, Title 4 (Section 43600 et seq. ) of the Government Code of the State of California, sometimes known as the Municipal Bond Act of 1901. For the purpose of paying the principal of and interest on said bonds, said Act requires that the City Council shall at the time of fixing the general tax levy, and annually thereafter until said bonds are paid or until there is a sum in the treasury of said city set apart for that purpose sufficient to meet all payments of principal and interest on said bonds as they become due, levy and collect a tax sufficient to pay the interest on said bonds as it falls due and such part of the principal thereof as will become due before the pro- ceeds of a tax levied at the next general tax levy will be available. Said tax shall be in addition to all other taxes levied for municipal purposes and shall be levied and collected as other city taxes . TERMS OF SALE Selection of Schedule Pursuant to Which Bonds Will be Issued : The City Council will select the schedule pursuant to which the bonds will be issued in accordance with the following rules : The City Council will not issue the bonds pursuant to Schedule 4 in the event that there 6 . are any bids for the bonds pursuant to Schedule l or Schedule 2 or Schedule 3. The City Council will not issue the bonds pursuant to Schedule 3 in the event that there are any bids for the bonds pursuant to Schedule 1 or Schedule 2. The City Council will not issue the bonds pursuant to Schedule 2 in the event that there are bids for the bonds pursuant to Schedule .1. 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 1/20 of 1%. No bond shall bear more than one interest rate, and all bonds of the same maturity ,shall bear the same rate. A zero rate of interest may not be specified . 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 . Bonds shall be in the denomination of $5,000 each. Award : The bonds shall be sold for cash only. Each bid may be for any one or more of the schedules of bond maturities, and for not less than all of the bonds 7 . of any one or more of the schedules so selected 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. Highest Bidder in Selected Schedule: The bonds in the Schedule selected by the City Council pursuant to the "Selection of Schedule" paragraph will be awarded to the highest responsible bidder or bidders bidding for such Schedule 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 ac- trued 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 irregu- larity or informality in any bid . 8. Prom2t Award : The City will take action away- ding the bonds or rejecting all bids not later then 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. If the City Council awards bonds pursuant to either Schedules 1, 2, 3 or 4, it will, within one week following award adopt a Resolution of Issuance for. said bonds which will incorporate all material provisions relating to the Bonds set forth in this notice together with certain other provisions relating to the bonds and the security therefor. Place of Delivery: Delivery of said bonds will be made to the successful bidder at Jeffries Bank- note Company, 1330 West Pico Boulevard, Los Angeles, unless some other place of delivery is agreed upon be- tween the city and the purchaser. Prompt Delivery Cancellation for Late Delivery: It is expected that said bonds will be delivered to the successful 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 of sale thereof, and in such event the successful bidder shall be entit- led to the return of the check accompanying his bid. Form of Bid : Each bid, together with the bid 9. check, must be in a sealed envelope, addressed to the city with the envelope and bid clearly marked "Proposal for City of Huntington Beach, 1970 Park Bonds, Series (to be designated if required) " . Bid Check: A certified or cashier ' s check on a responsible bank or trust company in the amount of $30,000 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 pro- ceeds 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 success- ful 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 taxa- ble 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 or required to be taken into account in computing any federal income taxes, by the terms of any federal income tax law enacted subsequent to the date of this notice. 10. Legal 02inion: 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 Litigation Certificate: At the time of pay- ment for and delivery of said bonds, the city will fur- nish the successful bidder a certificate that there is no litigation pending affecting the validity of the - bonds. INFORMATION AVAILABLE: Requests for informa- tion concerning the city should be addressed to City Clerk, City Hall, P.O. Box 190, Huntington Beach, Cali- fornia, or Stone & Youngberg, 1314: Russ Building, San Francisco, California, financing consultants to the City. GIVEN by order of the City Council of the City of Huntington Beach, California, adopted Jan. 19 1970. City Clerk o e City o Huntington Beach, California ADOPTED, SIGNED AND APPROVED this 19th day of January 1970. G7l �l Mayj&A of the-City of Hun ington Beach, California ATT tv Clerk o e City of 11 Huntington Beach California. STATE OF CALIFORNIA COUNTY OF ORANGE s s. CITY OF HUN TON MACH I', Paul C. Jones City Clerk of the City of Huntington Beach , a fornia, 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 heTc on the 19th_ day of January , 19-0, and that it was so adopted as - 5 ows: AYES: Councilmen ,h NOES: Councilmen None ABSENT: Councilmen None City Clerk o e y o Huntington Beach (SEAL) 12.