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HomeMy WebLinkAbout4696 - Water BondsRESOLUTION NO. � RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, DIRECTING THE CITY CLERK TO PUBLISH NOTICE INVITING SEALED PROPOSALS FOR $1,780,000 BONDS OF SAID CITY WHE,RSAS, the City Council of the City of Newport Beach, California, has introduced an ordinance providing for the issuance of bonds of said city in the amount of $1,780,000 to be designated WATER BONDS, 1957; and WHEREAS, it is desirable that said bonds be sold; NOW, THEREFORE, the City Council of the City of Newport Beach, California, DOES HEREBY RESOLVEy 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 is hereby authorized and directed to publish said notice once in the NEWPORT HARBOR NEWS - PRESS, a newspaper of general circulation in said city, such publication to be at least ten (10) days prior to October 16, 1957. The City Clerk is also hereby directed to cause the advertisement hereinafter set forth in Section 4 to be published once in THE BOND BUYER, a financial journal published in New York, New York, but failure to publish said advertisement In THE BOND BUYER or any defect in such publication shall not Invalidate or in any manner affect the proceedings for the sale of the bonds. Section 3. That said jsotice shall be substantially as follows: NOTICE INVITING BIDS ON $1,780,000 CITY OF NEWPORT BEACH, CALIFORNIA, GENERAL OBLIGATION BONDS. NOTICE IS HEREBY GIVEN that sealed proposals for the purchase of $1,780,000 par value general obligation bonds of the City of Newport Beach, California, will be received by the City Council of said city at the place and up to the time below specified: TIME: 11:00 o'clock A.M., Pacific Standard Time, October 16, 1957. PLACE: City Council Chambers City Hall Newport Beach, California MAILED BIDS: Should be mailed to the City Council of the City of Newport Beach c/o City Clerk, City Hall Newport Beach, California. OPENING OF BIDS: The bids will be opened at an adjourned regular meeting of said City Council to be held in said Council Chambers in the City Hall in said City on October 16, 1957, beginning at 11:00 o'clock A.M. ISSUE: $1,780,000, consisting of 1780 bonds, designated MATER BONDS, 1957, numbered 1 to 1780, both inclusive, of the denomination of $13000 each, all dated November It 1957. MATURITIES: The bonds will mature in consecutive numerical order in annual amounts as follows: $7o,000 on 2. November 1 in each of the years 1958 to 1976, both inclusive, and $75,000 on November 1 in each of the years 1977 to 1982, both inclusive. INTEREST: The bonds shall bear interest at a rate or rates to be fixed upon the sale thereof but not to exceed 6% per annum, payable annually the first year and semiannually thereafter. SIGNATURES: At least one of the signatures on the bonds will be manually affixed. PAYMENT: Said bonds and the interest thereon are payable in lawful money of the United States of America at the office of the City Treasurer of the City of Newport Beach, California, in said City, or at any fiscal agency of said City In Los Angeles, California, or in Chicago, Illinois, or in New York, New York, at the option of the holder thereof. REGISTRATION: The bonds will be coupon bonds regis- terable only as to both principal and interest. CALLABLE: The bonds maturing on or prior to November 1, 19720 shall not be subject to call or redemption prior to maturity. The bonds maturing on or after November 1, 1973, or any of them, may be called before maturity and redeemed, at the option of the City, in inverse order of maturity and number, on November 1, 1972, or on any interest payment date thereafter prior to maturity, at a redemption price for each redeemable bond equal to the principal amount thereof and accrued interest to the redemption date, plus the follow- ing premiums if redeemed at the following times: 3. 10 Year of Call Premium or 1973 1974 3-1/2% 2-1/2% 1997776 19777$ 1 -1/2% 19 1991 or 1982 1%2% PURPOSE OF THE ISSUE: Said bonds are issued for the purpose of providing additions to and improvements of the water storage, transmission and distribution system of said City. SECURITY: Said bonds are issued pursuant to Article 1, Chapter 4, Division 4, Title 4 (Sections 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 and interest of said bonds 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 proceeds 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 Interest Rate: The maximum rate bid may not exceed 6%, payable annually the first year and semiannually thereafter. 4. Each rate bid must be a multiple of 1/8th of 1% or 1 /20th of 1%. No bond shall bear more than one interest rate, and all bonds of the same maturity shall bear the same rate. Not more than four interest rates may be bid. The repetition of any rate will not be considered the bidding of an additional rate. The rate on any maturity or group of maturities shall not be more than 1 -1/2% 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 not to exceed those specified herein, at which the bidder offers to buy said bonds. Each bidder shall state in h1s 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: 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 coat to the City. The purchaser must pay accrued interest from the date of the bonds to the date of delivery. The accrued interest shall be computed 5. 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 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 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 the office of the City Treasurer, unless some other place of delivery is agreed upon between the City Treasurer and the purchaser. Prompt DeliveryA Cancellation for Late Deliveryt It is expected that said bonds will be delivered to the success- ful bidder within thirty (30) days from the date of the award 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 (60) days from the date of the award thereof, and in such event the successful bidder shall be entitled to the return of the deposit accompanying his bid. 6. Form of Bids Each bid, together with the bid check, must be in a sealed envelope, addressed to the City Council of the City of Newport Beach, c/o City Clerk, City Hall, Newport Beach, California, with the envelope and bid clearly marked "Proposal for $,1,780,000 Water Bonds." Bid Checks A certified or cashier's check on a responsible bank or trust company in the amount of 3% of the principal amount of the bonds, 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 proceeds of the check accompanv- 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 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 lags, either by a ruling of the Bureau of Internal Revenue 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'Helveny & Myere, attorneys, approving the validity of said bonds will be furnished the successful bidder at or prior to the date of delivery of the bonds, at the expense of the City. No Litigation Certificates 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: Copies of this notice and of the official prospectus relating to said bonds may be obtained from Robert Shelton, City Manager, City Hall, Newport Beach, California, or from the financial consultant to said City, Stone & Youngberg, Russ Building, San Francisco, California. GIVEN by order of the City Council of the City of Newport Beach, California, adopted September 16, 1957. MARGERY SCHROUDER y er or y o Newport Beach, California. Section 4. That said advertisement to be published In THE BOND BUYER shall be substantially as follows: 1,780,000 CITY OF NEWPORT BEACH, CALIFORNIA WATER BONDS, 1957 The City Council of the City of Newport Beach, California, will receive sealed bids until 11:00 o'clock A.M., on OCTOBER 16, 1957 at its Chambers in the City Hall in the City of Newport Beach, California, for the sale of 1,780.000 general obligation WATER BONDS, 1957, to be dated November 1, 1957, maturing $70,000 on November 1 In each of the years 1958 to 1976, both inclusive, and 475,000 on November 1 in each of the years 1977 to 19820 both inclusive. The bonds maturing on or prior to November 1, 1972, shall not be subject to call or redemption prior to maturity. The bonds maturing on or after November 1, 1973, or any of them, may be called before maturity and redeemed, at the option of the City, in inverse order of maturity and number, on November 1, 1972, or on any interest payment date thereafter prior to maturity, at a redemption price for each redeemable bond equal to the principal amount thereof and accrued interest to the redemption date, plus the following premiums if redeemed at the following times: Year of Call Premium or 1973 1974 3_1/2% 1975 3% 1977 2% 151 or 1982 1/2% Each bid must be accompanied by a certified or cashier's check payable to the City of Newport Beach, In the amount of 3% of the principal amount of the bonds bid for. The City Council reserves the right to reject any or all bids or to the extent not prohibited by law to waive any irregularity or informality in any bid. The Interest rate or rates bid may not exceed 6% per annum, payable annually the first year and semiannually there- after. Each rate bid must be a multiple of 1/8th of 1% or 1 /20th of 1%. No bond shall bear more than one Interest rate and all bonds of the same maturity shall bear the same rate. Not more than four interest rates may be bid. The repetition of any rate will not be considered the bidding of an additional rate. The rate on any maturity or group of maturities shall not be more than 1 -1 /2% higher than the interest rate on any other maturity or group of maturities. Each bid shall state the total net interest cost in dollars and the average net Interest rate determined thereby. The bonds will be accompanied by the approving opinion of O'Melveny & Myers, Los Angeles, California, at the expense of the City. At least one of the signatures on the bonds will be manually affixed. Requests for a copy of the official Notice Inviting Bids for the official prospectus relating to said bonds, or for other information concerning the City should be addressed to Robert Shelton, City Manager, City Hall 9• k: Newport Beach, California, sultant to said city, Stone San Francisco, California. or to the financial con - & Youngberg, Russ Building, MARGERY SCHROUDER City Clerk of the City of Newport Beach, California. ADOPTED, SIGNED AND APPROVED this 16th day of September, 1957. DORA O. HILL; ayor or ,e City or Newport Beach, California. ATTEST: MARGERY SCHROUD City Clerkar the city or Newport Beach, California. (SEAL) STATE OF CALIFORNIA COUNTY OF ORANGE ss. CITY OF NEWPORT BEACH I, MARGERY SCHROUDER, City Clerk of the City of Newport Beach, 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 an adjourned regular meeting of said City Council held on the 16th day of September, 1957, and that it was so adopted as follows: AYES: Councilmen LQ,'t WI e�—nA p NOES: Councilmen « V� ABSENT: Councilmen MARGERY SCHROUDER City Clerk of e city or (SEAL) Newport Beach, California. 10. STATE OF CALIFORNIA COUNTY OF ORANGE aa. CITY OF NEWPORT BEACH I, MARGERY SCHROUDER, City Clerk of the Newport Beach, California, DO HEREBY CERTIFY that and foregoing is a full, true and correct copy of No. 461(. and that the same has not been amended repealed. (SEAL) DATED: September )6 , 1957. MARGERY S"HROUDO City Clerk or e City o Newport Beach, California. 11. City of the above Resolution or STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF NEWPORT BEACH ) I, MARGERY SCHROUDER, City Clerk of the City of Newport Beach, California, do hereby certify that according to the records of the City of Newport Beach filed and maintained in my office, the foregoing Resolution No. 4696 was duly and regularly adopted, passed, and approved by the City Council of the City of Newport Beach, California, at a regular meeting of said City Council held at the regular meeting place thereof, on the 16th day of September f 14,57 2 by the following vote, to wit: AYES, COUNCILMEN: Hart, Wilder, Stoddard, Higbie, Hill NOES, COUNCILMEN: None ABSENT, COUNCILMEN: MacKay, Ridderhof Dated this 17th day of September 19 57 n,l•�, S City le c an x -0 icio Jerk of the City Council, City of Newport Beach, State of California.