Resolution Number 90-6-19-6333
RESOLUTION NO. 90-6-19-6
RESOLUTION OF THE CITY COUNCIL OF CITY
OF SAN JUAN CAPISTRANO DECLARING ITS
INTENTION TO SELL BONDS OF SAID CITY IN
THE AMOUNT OF $4,995,000, FIXING THE
TIME AND PLACE FOR TAKING BIDS AND
DIRECTING PUBLICATION OF NOTICE
INVITING BIDS
WHEREAS, this City Council deems it proper and the
necessity therefor appears that bids be invited for bonds of
CITY OF SAN JUAN CAPISTRANO in the amount of $4,995,000, 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 CITY OF SAN JUAN
CAPISTRANO DOES HEREBY RESOLVE, DETERMINE AND ORDER as follows:
SECTION 1. Sealed proposals for the purchase of bonds
of said City in the amount of $4,995,000 be received by this
City Council at Fieldman Rolapp & Associates, Irvine,
California, on July 17, 1990, up to the hour of 11:00 A.M.
SECTION 2. The Acting City Clerk is hereby authorized
and directed to cause to be published a notice inviting such
sealed proposals by one insertion in The Bond Buyer, a
newFoaper of general circulation, circulated within the State,
said publication to be at least fifteen (15) days prior to the
date of opening bids stated in said notice.
The notice shall be substantially as follows:
NOTICE OF SALE
$4,995,000
SERIES 1990 GENERAL OBLIGATION BONDS
OF CITY OF SAN JUAN CAPISTRANO (OPEN SPACE PROGRAM)
ORANGE COUNTY, CALIFORNIA
Proposals will be received up to 11:00 o'clock A.M.,
July 17, 1990 at Fieldman Rolapp & Associates, Attention:
Katrina Heller, 2100 S.E. Main Street, Suite 210, Irvine, `
California 92714, for the purchase of general obligation bonds
of CITY OF SAN JUAN CAPISTRANO.
The principal of and the interest on the bonds will be paid
from ad valorem taxes to be levied on all taxable property
within that city, without limitation of rate or amount.
The Bonds will mature serially on August 1 of each year as
provided in the Resolution of Issuance for such issue.
Interest will be paid on February 1, 1991 and semiannually
thereafter on August 1 and February 1 of each year.
The legal opinion of Stradling, Yocca, Carlson & Rauth, a
Professional Corporation, Newport Beach, California will be
furnished to the successful bidder.
Further information may be obtained from Fieldman Rolapp &
Associates, Attention: Katrina Heller, 2100 S.E. Main Street,
Suite 210, Irvine, California 92714 (714) 660-8500.
George Scarborough
Acting City Clerk
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335
SECTION 3. The preliminary official statement
prepared by Fieldman Rolapp & Associates and presented to this
City Council is approved in substantially the form presented.
Fieldman Rolapp & Associates is authorized to make such changes
in and additions to the preliminary official statement prior to
mailing as may be approved by the City Manager or required by
the City's Bond Counsel and the City Manager is hereby
authorized and directed to deem such form, as modified,
"final," except for information relating to the offering
prices, interest rates, selling compensation, rating and other
terms of the Bonds depending on such matters, and to so signify
to Fieldman Rolapp & Associates. The execution of the official
statement by the Mayor and the printing and distribution
thereof (in both preliminary and final forms) in connection
with the sale of the Bonds, with such changes as are approved
or required as set forth above, are hereby authorized, approved
and directed.
SECTION 4. The City Clerk or Acting City Clerk is
hereby authorized and directed to cause to be furnished to
prospective bidders copies of a notice inviting proposals, the
bid form and the preliminary official statement relating to the
properties, operations and finances of said City thereof; but
the failure, in whole or in part, to comply with this section
shall not in any manner affect the validity of the sale of said
Bonds. Said notice and bid form shall be substantially as
follows-
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336
NOTICE INVITING BIDS ON $4,995,000 SERIES
1990 GENERAL OBLIGATION BONDS OF CITY OF
SAN JUAN CAPISTRANO (OPEN SPACE PROGRAM)
NOTICE IS HEREBY GIVEN that sealed proposals for the
purchase of $4,995,000 par value general obligation bonds of
CITY OF SAN JUAN CAPISTRANO of Orange County, California, will
be received by the City Council of said City at the place and
up to the time below specified:
TIME: 11:00 A.M.
July 17, 1990
PLACE: FIELDMAN ROLAPP & ASSOCIATES
Attention: Katrina Heller
2100 S.E. Main Street, Suite 210
Irvine, California 92714
MAILED BIDS: CITY OF SAN JUAN CAPISTRANO
c/o Fieldman Rolapp & Associates
Attention: Katrina Heller
2100 S.E. Main Street, Suite 210
Irvine, California 92714
TELECOPIED BIDS: Bids may be telecopied at the sole risk
of the bidder to (714) 493-1053.
OPENING OF BIDS: The bids will be received and opened at
11:00 A.M. on July 17, 1990, and reported to the City Council
of the City at its meeting later the same day.
ISSUE: $4,995,000 designated "SERIES 1990 GENERAL
OBLIGATION BONDS OF CITY OF SAN JUAN CAPISTRANO (OPEN SPACE
PROGRAM)", shall be all in the denomination of $5,000 each or
any whole multiple thereof.
MATURITIES: The bonds will mature in consecutive numerical
order on August 1 in the amounts for each of the several years
as follows, subject to revision at the option of the City in
order to achieve level debt service:
MIM
Principal
Principal
Years
Amount
Years
Amount
1991
$120,000.00
2001
$235,000.00
1992
130,000.00
2002
255,000.00
1993
135,000.00
2003
270,000.00
1994
145,000.00
2004
295,000.00
MIM
REGISTRATION: The bonds will be issued only in fully
registrable form.
REDEMPTION: The bonds maturing prior to August 1, 2000 are
not subject to call and redemption prior to maturity. The
bonds maturing on or after August 1, 2000 may be redeemed prior
to maturity at the option of the City, from any source of
funds, on August 1, 1999 or on any Interest Payment Date
thereafter, as a whole or in part, and if in part as nearly as
practicable on a pro -rata basis, and by lot within a maturity,
at the following redemption prices, expressed as a percentage
of the principal amount thereof, together with accrued interest
to the date of redemption:
Redemption Dates Redemption Prices
August
Principal
1999
Principal
Years
Amount
Years
Amount
1995
155,000.00
2005
315,000.00
1996
165,000.00
2006
340,000.00
1997
175,000.00
2007
365,000.00
1998
190,000.00
2008
395,000.00
1999
205,000.00
2009
425,000.00
2000
220,000.00
2010
460,000.00
INTEREST:
The bonds shall
bear interest
at a rate or rates
to be fixed
upon the sale thereof,
but not
to exceed 12% per
annum, from
August 1, 1990, payable
on February
1, 1991 and
thereafter semiannually
on each
February 1
and August 1.
PAYMENT:
Said bonds will be
payable in
lawful money of the
United States
of America at the
principal
corporate trust
office of [name
of Paying Agent
to come) in
Los Angeles,
California.
Interest on the bonds
will be
paid by check or
draft mailed
to the registered
owner.
REGISTRATION: The bonds will be issued only in fully
registrable form.
REDEMPTION: The bonds maturing prior to August 1, 2000 are
not subject to call and redemption prior to maturity. The
bonds maturing on or after August 1, 2000 may be redeemed prior
to maturity at the option of the City, from any source of
funds, on August 1, 1999 or on any Interest Payment Date
thereafter, as a whole or in part, and if in part as nearly as
practicable on a pro -rata basis, and by lot within a maturity,
at the following redemption prices, expressed as a percentage
of the principal amount thereof, together with accrued interest
to the date of redemption:
Redemption Dates Redemption Prices
August
1,
1999
or
February 1,
2000
102.0%
August
1,
2000
or
February 1,
2001
101.5%
August
1,
2001
or
February 1,
2002
101.0%
August
1,
2002
or
February 1,
2003
100.5%
August
1,
2003
and
thereafter
100.0%
INTEREST
RATE:
The maximum rate
bid may not exceed
12% per annum.
Each
rate bid must be a multiple
of 1/Sth 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
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rate. Each bond must bear interest at the rate specified in
the bid from its date to its fixed maturity date. 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. All bonds of a single maturity must bear the same
or higher interest rate than bonds of a previous maturity.
AWARD: The bonds shall be sold for immediately available
funds 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 accrued interest to the date of delivery, the
purchase price, which may be par or par plus a premium but not
par less a discount, 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 its 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.
BEST BIDDER: The bonds will be awarded to the lowest
responsible bidder or bidders considering the interest rate or
rates specified and the premium offered, if any. Subject to
the foregoing condition, the highest bid will be determined by
deducting the amount of the premium bid (if any) to 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 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 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 proposals;
provided that the award may be made after the expiration of the
specified time if the bidder shall not have given the City
notice in writing of the withdrawal of such proposal.
PLACE OF DELIVERY: Delivery of said bonds will be made to
the successful bidder at Stradling, Yocca, Carlson & Rauth, a
Professional Corporation, Newport Beach, California or, at the
option of the successful bidder, at such other place as may be
agreed upon by 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 its 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 herein fixed for the receipt of bids, and in such
event the successful bidder shall be entitled to the return of
the check accompanying its 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 CITY OF SAN JUAN
CAPISTRANO BONDS", care of Fieldman, Rolapp & Associates, or
bids may be telecopied if clearly marked with the above
information. See "Telecopied Bids" below.
TELECOPIED BIDS: Telecopied bids are at the sole risk of
the bidder and will be accepted only upon prior receipt of a
bid check (described below) by Fieldman, Rolapp & Associates at
their Irvine office no later than 11:00 a.m., July 17, 1990.
Neither the City nor its Financial Advisor shall be responsible
for any transmission equipment failure resulting in a bid not
being accurately received or received later than 11:00 a.m.
July 17, 1990, or other designated bid cut-off time or bid
date. Telecopied bids should be sent to (714) 493-1053 on the
morning of the bid in time sufficient to avoid reaching a busy
signal if many bidders attempt to telecopy bids
simultaneously. Neither the City nor its Financial Advisor
shall be responsible if a busy signal is reached in such case.
BID CHECK: A certified or cashier's check on a responsible
bank or trust company in the amount of $45,000 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 its 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 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 included in gross 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
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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.
LEGAL OPINION: The unqualified opinion of Stradling,
Yocca, Carlson & Rauth, a Professional Corporation, approving
the validity of said bonds and stating that under existing
statutes, regulations, rulings and court decisions, interest on
the bonds is excluded from gross income for federal income tax
purposes, and that such interest is also exempt from personal
income taxes of the State of California under present state
income tax laws, will be furnished the successful bidder at or
prior to the date of delivery of the bonds, at the expense of
the City. A copy of the legal opinion certified by an officer
of the City by his/her facsimile signature will be printed on
the back of each bond without cost to the successful bidder.
CUSIP NUMBERS: It is anticipated that CUSIP numbers will
be printed on the bonds, but neither the failure to print such
numbers on any bond nor any error with respect thereto shall
constitute cause for a failure or refusal by the purchaser
thereof to accept delivery of and pay for the bonds. All
expenses of printing CUSIP numbers on the bonds shall be paid
by the City, but the CUSIP Service Bureau charge for the
assignment of said numbers shall be paid by the purchaser.
UNDERWRITER'S CLOSING CERTIFICATE: The accepted bidder
shall deliver to the City a certificate dated the date of
purchase of the bonds indicating: (i) the initial offering
prices at which a substantial portion of the bonds (not less
than 10% of each maturity of the bonds) was sold to the public
(excluding bond houses, brokers, or similar persons or
organizations acting in the capacity of underwriters or
wholesalers), (ii) the "yield" on the bonds as calculated in
accordance with the Internal Revenue Code of 1986, and (iii)
such other information as may be required to assist the City in
completing the required Internal Revenue Service Form 8038-G
for the bonds or as may be required by bond counsel.
CALIFORNIA DEBT ADVISORY COMMISSION FEE: Attention of
bidders.is directed to California Government Code Section 8856
and a resolution adopted pursuant thereto, which provides that
the lead underwriter or the purchaser of the bonds may be
charged the California Debt Advisory Commission fee.
CLOSING DOCUMENTS: In addition to the opinion of bond
counsel referred to above, at the time of payment for the
delivery of the bonds, the City will furnish the successful
bidder the following documents, all to be dated as of the date
of delivery:
IM
341
1. NonArbitrage Certificate -- A certificate of an
appropriate officer of the City certifying that, on
the basis of facts, estimates and circumstances in
effect at the time of delivery of the bonds, it is not
expected that the proceeds of the bonds will be use in
a manner that will cause the bonds to be arbitrage
bonds.
2. No Litigation. Certificate -- A certificate of an
appropriate officer of the City certifying that there
is not litigation pending, or, in the best of such
officer's knowledge, threatened against the City
affecting the validity of the bonds.
3. Signature Certificate -- A certificate of appropriate
officers of the City indicating that they have signed
the bonds by manual or facsimile signature and that
they were duly authorized to execute the same.
4. Treasurer's Receipt -- The receipt of the Treasurer of
the City showing that the purchase price of the bonds,
including accrued interest to the date of delivery, if
any, has been received by the City.
5. Certificate Concerning Official Statement -- A
certificate of an appropriate officer of the City,
acting in such person's official and not personal
capacity, to the effect that at the time of the sale
of the bonds and at all times subsequent thereto up to
and including the time of delivery of the bonds, the
Official Statement relating to the bonds did not
contain any untrue statement of a material fact or
omit to state a material fact necessary to make the
statements therein, in light of the circumstances
under which they were made, not misleading.
OFFICIAL STATEMENT: The City will furnish to the
successful bidder, at no charge, such number of copies of the
Official Statement as said bidder may reasonably request (but
not to exceed 250) for use in connection with any resale of the
bonds.
INFORMATION AVAILABLE: Requests for information concerning
the City should be addressed to:
Fieldman Rolapp & Associates
2100 S.E. Main Street, Suite 210
Irvine, California 92714
Attention: Katrina Heller
Telephone: (714) 660-8500
2 1
GIVEN by order of the City Council of CITY OF SAN
JUAN CAPISTRANO adopted on 1990.
4Ac*ng4Ca
erk of the City of
San Jtrano
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The bid form shall be substantially as follows:
BID FORM FOR CITY OF SAN JUAN CAPISTRANO
1990
TO: City Council
City of San Juan Capistrano
C/O FIELDMAN, ROLAPP & ASSOCIATES
2100 S.E. Main Street, Suite 210
Attention: Katrina Heller
Irvine, California 92714
FOR: Proposal for $4,995,000
Series 1990 General Obligation
Bonds of City of San Juan
Capistrano (Open Space Program)
In accordance with all terms and conditions of your Notice of Sale dated
1990, we submit the following bid for said Bonds to be dated
August 1 1990, with interest payable February 1, 1991, and thereafter
semiannually on August 1 and February 1:
We will pay the following interest rates:
WE UNDERSTAND THAT THE ANNUAL INSTALLMENTS OF PRINCIPAL SCHEDULED TO MATURE
EACH YEAR O14 AUGUST 1 AS SET FORTH ABOVE MAY BE ADJUSTED AT THE OPTION OF THE
CITY IN ORDER TO ACHIEVE LEVEL DEBT SERVICE ON THE BONDS.
We will pay $ , which is par, plus a premium of S
plus accrued interest to date of delivery. As a matter of information, the
interest cost, in accordance with the above bid, is:
Gross Interest Cost $
Premium S
TOTAL NET INTEREST COST $
Effective Net Interest Rate o
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Principal
Interest
Principal
Interest
Years
Amount
Rate Bid Years
Amount
Rate Bid
1991
5120,000.00
% 2001
$235,000.00
%
1992
130,000.00
2002
255,000.00
1993
135,000.00
2003
270,000.00
1994
145,000.00
2004
295,000.00
1995
155,000.00
2005
315,000.00
1996
165,000.00
2006
340,000.00
1997
175,000.00
2007
365,000.00
1998
190,000.00
2008
395,000.00
1999
205,000.00
2009
425,000.00
2000
220,000.00
2010
460,000.00
WE UNDERSTAND THAT THE ANNUAL INSTALLMENTS OF PRINCIPAL SCHEDULED TO MATURE
EACH YEAR O14 AUGUST 1 AS SET FORTH ABOVE MAY BE ADJUSTED AT THE OPTION OF THE
CITY IN ORDER TO ACHIEVE LEVEL DEBT SERVICE ON THE BONDS.
We will pay $ , which is par, plus a premium of S
plus accrued interest to date of delivery. As a matter of information, the
interest cost, in accordance with the above bid, is:
Gross Interest Cost $
Premium S
TOTAL NET INTEREST COST $
Effective Net Interest Rate o
-11-
This offer is subject to a satisfactory legal opinion by Stradling, Yocca,
Carlson & Rauth, a Professional Corporation, Newport Beach, California,
approving the validity of the bonds, at your expense.
Enclosed herein is a Cashier's or Certified check in the amount of $
payable to the order of the City of San Juan Capistrano, which funds we
request be returned promptly in the event we are not the successful bidder,
otherwise to be retained and applied against the purchase price of the Bonds.
This bid is made subject to all of the terms and conditions of the Notice
Inviting Bids, all of which terms and conditions are hereby accepted by us and
are made a part hereof.
Submitted by:
(Representative's Printed Name)
Other Members of the Syndicate are:
(Representative's Signature)
Firm:
Date:
Check Number:
-12-
ADOPTED, SIGNED AND APPROVED this 19th d2L of June , 1990.
(SEAL)
ty of San
ATTEST:
ing Gity4CIerk of City of
X Juan C f
istrano
06/12/90
9672n/2658/001 -13-
63 NG
STATE OF CALIFORNIA )
ss.
COUNTY OF ORANGE )
I, GEORGE SCARBOROUGH, Acting City Clerk of City of
San Juan Capistrano, DO HEREBY CERTIFY that the foregoing
resolution was duly adopted by the City Council of said City at
a regular meeting of said City Council held on the 19th day
of June 1990, and that it was so adopted by the following
vote:
AYES: Councilmembers
NOES: Councilmembers:
Schwartze, Friess, Buchheim, Bland
and Mayor Hausdorfer
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
9ciCi Clerk o of San
J an Capi trano
(SEAL)
STATE OF CALIFORNIA )
ss.
COUNTY OF ORANGE )
I, GEORGE SCARBOROUGH, Acting City Clerk of City of
San Juan Capistrano, DO HEREBY CERTIFY that the above and
foregoing is a full, true and correct copy of RESOLUTION
NO.90-6-19-6of said City Council, and that the same has not been
amended or repealed.
Dated: June 19 ,
(SEAL)
06/12/90
9672n/2656/001
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W