Resolution Number 68-10-14-2Q1�
RESOLUTION NO. 68-10-14-2
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SAN JUAN CAPISTRANO, CALIFORNIA, DIRECT-
ING 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 San Juan Capistrano, California, in the amount of
$500,000 to be designated "CITY OF SAN JUAN CAPISTRANO 1964 SEWER
BONDS, SERIES B"! has'been introduced; and
WHEREAS, it is desirable that said bonds be sold;
NOW, THEREFORE, the City Council of the City of San Juan
Capistrano, 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 COASTLINE DISPATCH,
a newspaper of general circulation published in said city, said
publication to be at least seven days prior to the date for receiv-
ing bids.
Section 3. That said notice shall be substantially as follows:
NOTICE INVITING BIDS ON $500,000
GENERAL OBLIGATION BONDS OF THE CITY
OF SAN JUAN CAPISTRANO, CALIFORNIA
NOTICE IS HEREBY GIVEN that sealed proposals for the purchase
of $500,000 par value general obligation bonds of the
CITY OF SAN JUAN CAPISTRANO
will be received by the City Clerk of said city at the place and
up to the time below specified.
TIME: 11:00 o'clock A.M. Pacific Standard
Time, October 30, 1968.
PLACE: United California Bank
108 West Sixth Street, Room 824
Los Angeles, California, 90014
MAILED BIDS: Should be mailed to the City Clerk
of the City of San Juan Capistrano
c/o United California Bank
108 West Sixth Street, Room 824
Los Angeles, California 90014
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OPENING AND PRESENTATION OF BIDS: The bids will be received
and opened by the City Clerk at 11:00 o'clock A.M. on October 30,
1968, in Room 824, United California Bank, 108 West Sixth Street,
Los Angeles, California and will be presented to the City Council
at 7:00 P.M. of the same day at the city hall of said city.
ISSUE: $500,000 consisting of 100 bonds, numbered 1 to 100,
both inclusive, of the denomination of $5,000 each, all dated
November 1, 1968 and to be designated CITY OF SAN JUAN CAPISTRANO
1964 SEWER BONDS, SERIES B.
MATURITIES: The bonds will mature in consecutive numerical
order on November 1 in the amounts for each of the several years
as follows:
1969 to 1973 $15,000
1974 to 1978 20,000
1979 to 1982 25,000
1983 to 1986 30,000
1987 to 1989 35,000
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 main office
of United California Bank in Los Angeles, California, or at any
fiscal agency of the city in San Francisco, California, or Chicago,
Illinois, or New York, New York, at the option of the holder thereof.
REGISTRATION: The bonds will be coupon bonds registrable as
to principal only or as to both principal and interest, and the
form of registration may be changed, or the bonds discharged from
registration, all in accordance with the provisions in the resolution
providing for the issuance of the bonds.
PURPOSE OF ISSUE: The bonds are the second portion to be sold
of bonds in the tital amount of $1,200,000.00 authorized at an
election held December 3, 1963. The bonds were authorized for the
purpose of providing facilities for the transmission, treatment and
disposal of sewage, including all lands, easements, rights of way,
machinery, and other property useful and necessary for the foregoing.
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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 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.
CALL PROVISIONS: The bonds maturing on or prior to November 1,
1984 shall not be'subject to call or redemption prior to maturity.
The bonds maturing on or after November 1, 1985 or any of them, may
be called before maturity and redeemed at the option of the City
Council of said city on November 1, 1984 or on any interest payment
date thereafter prior to maturity, at a redemption price for each
redeemable bond equal to the principal amount thereof, plus the
following premiums if redeemed at the following times:
REDEMPTION DATES
Calendar Year Premium
ot Cail
1984
4%
1985
3%
1986
2%
1987
1%
1988
2%
1999
None
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 redeemend only in inverse order of
maturity and number beginning with the highest numbered bond.
TERMS OF SALE
Interest Rate: The maximum rate bid may not exceed 6% per
annum, payable annually the first year and semi-annually thereafter.
Each rate bid must be a multiple of one -twentieth (1/20) of 1%. No
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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 install-
ment of interest thereon, and bids providing for additional or supple-
mental coupons will be rejected. 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 12% 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 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: The bonds will be awarded to the highest res-
ponsible 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 sa ii 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 print-
ing the bonds will be borne by the city.
Right of Rejection: The city reserves the right, in its dis-
cretion, 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 to the City Council notice in writing of
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the withdrawal of such proposal.
Place of Delivery: Delivery of said bonds will be made to the
successful bidder at United California Bank, 108 West Sixth Street,
Los Angeles, California, or at any other place agreeable to both the
City Treasurer and the successful bidder.
Prompt Delivery: Cancellation for Late Delivery: The success-
ful bidder shall have the right, at his option, to cancel the contract
of purchase if the city shall fail to execute the bonds (either tem-
porary or definitive) and tender them for delivery on or before
November 4, 1968, and in such event the successful bidder shall be
entitled 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 City of San Juan Capistrano 1964
Sewer Bonds, Series B".
Bid Check: A certified or cashier's check on a responsible
bank or trust company in the amount of $5,000 payable to the order
of the city must accompany each proposal as a guaranty that the bid-
der, 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 proceeds retained by the city. The check accompany-
ing 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 with- _
draw the proposal if the interest received by private holders flo m
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 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 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
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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 payment for and deli-
very of said bonds, the city will furnish the successful bidder a
certificate that there is no litigation pending affecting the vali-
dity of the bonds.
Temporary Bonds: The right is reserved by the issuer to make
delivery of temporary bond or bonds (including a single bond without
coupons in registered form) to the extent permitted by law in order
to make immediate delivery of the bonds. Definitive bonds will be
issued in place of temporary bonds within a reasonable time to be
agreed upon with the purchaser (not to exceed thirty (30) days from
the date of delivery of the temporary bonds). The form and provis-
ions of temporary bond or bonds shall be sufficient if they refer
to the resolution of issuance, set forth the interest rates at which
the bonds were awarded and provide that they are exchangeable for
definitive bonds in accordance with this notice.
INFORMATION AVAILABLE:
Requests for information concerning
the city should be addressed to Bartle Wells Associates, 260 Cali-
fornia Street, San Francisco, California 94111.
GIVEN by order of the City Council of the City of San Juan
Capistrano, California, adopted October 14, 1968.
ta/y zp7pq"Xz�
C�ity Clerk of the Cit o
San Juan Capistrano, California
ADOPTED, SIGNED AND APPROVED this 14th day of October, 1968.
mayor of t e ity o
San Juan Capistrano, California
ATTEST:
ZBy. r�1
ity Clerk of the City 97
San Juan Capistrano, California
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF SAN JUAN CAPISTRANO )
I, ERNEST A. THOMPSON, City Clerk of the City of San Juan
Capistrano, California, DO HEREBY CERTIFY that the foregoing reso-
lution 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 14th day of October, 1968, and that it was
so adopted as follows:
AYES: COUNCILMEN: BATHGATE, DURNFORD, FORSTER,
OLIVARES and CHERMAK
NOES: COUNCILMEN: NONE
ABSENT: COUNCILMEN: NONE
ty Clerk of the Cify o
San Juan Capistrano, C lifornia
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF SAN JUAN CAPISTRANO )
I, ERNEST A. THOMPSON, City Clerk of the City of San Juan
Capistrano, California, DO HEREBY CERTIFY that the above and fore-
going is a full, true and correct copy of Resolution No. 68-10-14-2,
and that the same has not been amended or repealed.
DATED: October 14, 1968.
ity Clerk o- the Yity o
San Juan Capistrano,California