HomeMy WebLinkAboutCC RES 73-08RESOLUTION 73-8
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF TUSTIN, CALIFORNIA, DIRECTING
THE CITY CLERK TO PUBLISH NOTICE
INVITING SEALED PROPOSALS FOR BONDS OF
SAID CITY
WHEREAS, an ordinance providing,for the issuance
of bonds of the City of Tustin, CalifOrnia, in the 'amount
of $950,000 to be designated "CITY OF TUSTIN, .1972 cIVIC
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CENTER BONDS" has been introduced; and
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WHEREAS, it 'is desirable that said bonds be sold;
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NOW, THEREFORE, the City Council of 'the City of
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Tustin, California, DOES HEREBY RESOLVE, DETERMINE AND ORDER
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as follows: .. "
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So¢t:i.on '1. That said bonds be sold and that sealed
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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
Tu~stin News, a newspaper o'f general circulation published
in said city, said publication to be at least ten days
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prior to the date for receiving bids.
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' Section 3. That said notice .shall be substantially
as. follows:
NOTICE I'NVITING BIDS ON $950,000
GENERAL OBLIGATION BONDS OF T}IE CITY
OF TUSTIN, CALIFORNIA '
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NOTICE IS HEREBY GIVEN that sealed proposals for
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the purchase of $950,000 par value general obligation bonds
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of the . . '
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CITY OF 'TUSTIN ·
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will be received by the City Council of said city a't the
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place and up to the time below specified. " .. '.
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TIME: 11': 00 a.m. Pacific Time ·
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PLACE: 'Bank of America Building
Corporate Trust Department
' 111 West Seventh Street
'Los Angeles, California
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MAILED BIDS:. Bank of America
· . 111 West Seventh Street
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Attention: Corporate Trust Department
OPENING OF BIDS: The bids will be opened on .behalf
T.ustin
of said City Council by the/ C___it_~C__l.~erk on March 20, 1973,
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at 11:00 o'clock A'.M. Pacific Time at the Bank of America
Building, 111 West Seventh. Street in the City of Los Angeles,
California. The bids will be presented to the City Council
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held March 20, 1973, at 7:30' o'Clock P.M. at the City ~all
of sa~d city. · .
ISSUE: $950,000 designated city of Tustin 1973
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¢t. vi¢ Cent:or Bonds eonsise~n~ of 190 bonds, n~bero~ '~ ~o
190, both inclusive, of the denomination of $5,000 each~
dated April..1., 1973 o
5~ATURITIES- The bonds will mature in consecutive
numerical order on April 1, in the amounts for each of the
several years as follows-
DATE AMOUNT
1975 $10,000
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1~76-1977 $20,000
1978-1985
1986-1989
1990-1993
1994-1998
$30,000
$40,000
$50,000
$60,000'
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,INTEREST- The bonds shall bear interest at a
rate or 'rates to. be fixed upon the sale thereof but not to
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exceed 7% per annum, payable annually the first year and
semiannually thereafter.
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 Tustin,
California, in said City, or at the option of the holder
thereof, at the main office of the paying agent of the City,
Bank of America, N.T.&S.A. in the City of Los Angeles,
California or at the office of any co-paying agent in
Chicago, Illinois or New York, New York.
REGISTRATION- The bonds will be coupon bonds
registerable only as' to both principal and interest,
and the form of registration may be changed, or the
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bonds discharged from registration, all in accordance
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witl~ the provisions in the ordinance 'providinq for the
issuance of the b~nds.
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REDEMPTION- The bonds maturing on or prior to
April 1, 1991 shall not be subject to call or redemption
prior to maturity. The bonds maturing on or after April 1,
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1992 or any ~f them, may be called before maturity and
redeemed at the option of the City Council of said city on
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April 1, 1988 or on any interest payment .date thereafter
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prior to maturity, at a redemption price for each redeemable
bond equal to the principal amount thereof, plus accrued'
interest and a premium equal to one-half of one .percen~ .
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(1/2%), of the principal amount of said bond per,year o~ "
fraction o.f a year from ~he date of .redemption to the da~e
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of maturity provided however, that in no event shall such
premium exceed five percent (5%) of the principal amount.
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All or any of the bonds Subject to call may'be 'called for
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redemption at any one time. If less than all of the bonds
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are redeemed at any time, such bonds shall be r~deemed'
only in inverse order of maturity and number 'begtnnin~
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with the highest n.umbered bond.
PURPOSE OF ISSUE" To provide for the acquisition
and construction of a· civic center Complex.
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SECURITY- Said bonds are issued pursuant to
Articl'e 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
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· the purpose of paying the principal Of and interest/on said
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bonds, said Act requires that the City Council shall at
the time of fixing the general tax levy, and annually
thereaf%er 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
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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
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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 okher city
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TERMS OF SALE
Interest Ra~e- The maximum rate bid may not
exceed 7% per annum, payable annually the first year
· and semiannually thereafter. Each rate bid must be a
multiple of 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. 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 instal].ment 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. After the first ten years the interest rate
on any maturity shall not be less than the interest rate
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on any Drior maturity.
Award- The bonds shall be sold for' cash only.
Ail 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 his
bid the total.., net interest cost in dollars and the average
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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,.
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if any. The highest bid will be determined by deducting
the amount of the premium bid (if any) from the total
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amount of interest which the city would be 'required to
· pay from ·the date of said bonds to the r'espec'~ive 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 imust
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pay accrued intere.st from the date of the bonds to the date
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of del:t.v/ery computed on a ~60-c1~¥ year bahia. The eo~t of
'pr:i. ntinCf the bond~ w£11 b~. borne by the ¢:l. ty. .
.Right. 0~f~e__cti°__n_: .The city reserves th~ 'r~ght,
in its discretion, to reject any and all bids and t° the
extent not prohibited by law to waive any ,irregularity or
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informality in any b~d. ". .
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.Pr0mRt _Award- The ~tt.y will take' action .awarding
the bonds or rejecting all bids no~ later '~han twenty-six
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(26) hours after the time. herein prescribed for the receipt
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of proposals; provided that the award may be ma'de after.
the exDiration of the specified 'time if the bidder shall
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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 such place as shall
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be agreed upon by Purchaser and the City. · ·
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.. . p_r~m~t._De!!v~ry~;__ ~can_c..el.!a~i0n. f..0r Late Deliwer~·
· ~ it is expected that said bonds will be delivered to the
successful bidder within thirty (30) days from the date
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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 th~ bonds and tender
them for delivery within sixty (60) days from .the date
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herein fixed for the receipt of bids, and in such event
the successful .bidder shall be entitled to the return of
the check accomDanying his bid.
Form of Bid' Each bid, together with the bid
check, must be in a sealed envelope, addressed to the city
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with the enveiope and bid clearly marked "Proposal for City
of TuStin 1973 Civic Enter Bonds".
Bid' Check' A certified or cashier's check' on
a responsible bank or trust company in the amount of
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$10,000, payable to the..order of the city must accompany
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each proposal a.s a guaranty that the bidder, if. successful,
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will accept and pay for said bonds in accordance w~th the
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terms of his..bid.. The check accompanying any accepted .
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proposal, shall be applied on the purchase price or,
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such" proposal is accepted but not performed, unless such .
failure of performance shall be caused by any act or
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omission of the city, shall then be' cashed and the proceeds
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retained by the city. The ch'eck accompanying each: .
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unaccepted proposal Will be returned promptly.
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· ~han_ge __in__T_ax Exem?t. S___ta___t_u_s.: At any time..
before the bonds, are tendered for delivery, the successful
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bidder may disaffirm and withdraw the.proposal if the.
interest received by private ho'ld..e~s f'~m bonds of the.
· same type and character shall b.e .declared to be taxable
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income under present federal income tax laws, either by
a. ruling of the Internal Revenue Service or by a decision
'of an~ federal court, or shall be declared taxable or be
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requi~ed to be taken into accoun.t tn computing any federal
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incom!e ~axeS, by the terms of any federal income tax law
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enacted subsequent to the date of this notice.
'.,i Lgg~!--°_P. ini'°n: The.unqualified opinion of.
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o'Melv~.ny & Myers, attorneys, approving the validity of
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said bonds will be furnished the successful bidder at..or
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'pr~or to the time of delivery, of the bonds, .at the expense
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of the city. A copy of such opinion, certified by an
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officer of the city by his facsimile signature will be
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printed on the back of each bond. No charge will be made
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tO the purchaser for such printing or certification.
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: .N~o_i Litigation Certificate: At the ~ime .of payment.
for and delivery, of said bonds, the city will furnish the'
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successful bidder a certificate that there is no litigation
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pending aff~bting the validity of the bonds.
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'INFORMATION AVAILABLE: Requests for information
concerning the city should be addressed to Bartle Wells Asso-
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] c!at. es, 150 Post Street, San Francisco, California 94108.
GIVEN by order of the City Council of the City
of.Tustin, California, adopted, February 5 , 1973
PASSED AND ADOPTED at a regular meeting of the
Tustin City Council, ne±d on the 5th day of February, 1973
~LAYOR.
ATTEST:
STATE OF CALIFORNI?~ )
COUNTY OF ORANGE ) SS
CITY OF TUSTIN . )
I, Ruth C.. Poe, City Clerk of the City of Tustin, 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 5th day of Febr~ar.y, 1973, and that it w. as so adopted as
follows:
AYES:
COUNCILMEN...MILLER, SALTARELLI, LANGLEY, W.E.L.S~,~ W.OODR.UFF
NOES:
COUNCILMEN_ NONE .................
ABSENT: COUNCILMEN..NONE
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City clerk. o~ City'of Tust~~lifO~ni~