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HomeMy WebLinkAbout73-113 - Inviting Bids for Open Space BondsRESOLUTION NO. 73-113 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, 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 Costa Mesa, California, in the amount of $3,910,000.00 to be designated "City of Costa Mesa 1974 Open Space Bonds," has been intro- duced; and WHEREAS, it is desirable that said bonds be sold; NOW, THEREFORE, the City Council of the City of Costa Mesa 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 Orange Coast Daily Pilot, a newspaper of general circulation, said publication to be at least ten (10) days prior to the date for receiving bids. SECTION 3. That the notice shall be substantially as follows: NOTICE INVITING BIDS ON $3,910,000.00 GENERAL OBLIGATION BONDS OF THE CITY OF COSTA MESA, CALIFORNIA NOTICE IS HEREBY GIVEN that sealed proposals for the purchase of $3,910,000.00 par value general obligation bonds of the City of Costa Mesa will be received by the City Clerk of said City at the place and up to the time below specified: TIME: 4:00 o'clock D.m., December 17, 1973 PLACE: Office of Citv_ Clerk 77 Fair Drive Costa Mesa, California MAILED BIDS: Addressed to: City Clerk City of Costa Mesa 77 Fair Drive Costa Mesa, California 92626 OPENING OF BIDS: The bids will be opened at the time and place hereinbefore designated and shall be presented to the City Council at a meeting of said City Council to be held on December 17, 1973, at 6:30 o'clock p.m. at the City Council Chambers, 77 Fair Drive, Costa Mesa, California. ISSUE: $3,910,000.00 consisting of 782 coupon bonds in the denomination of $5,000.00 each (or fully registered bonds in denomina- tions of $5,000.00 or multiples thereof so long as no fully registered bond shall have principal maturing in more than one year), all dated January 1, 1974, and comprising all of the bonds of the authorized issue. MATURITIES: The bonds will mature in consecutive numerical order on January 1 in the amounts for each of the several years as follows: Years (Inclusive) Principal Amount Maturing in Each Year 1975 $ 50,000.00 1976-1977 60,000.00 1978-1980 70,000.00 1981-1982 80,000.00 1983-1985 90,000.00 1986-1987 100,000.00 1988 110,000.00 1989-1990 120,000.00 1991-1992 130,000.00 1993 140,000.00 1994 150,000.00 1995 160,000.00 1996-1997 170,000.00 1998 180,000.00 1999 190,000.00 2000 200,000.00 2001 210,000.00 2002 230,000.00 2003 240,000.00 2004 250,000.00 INTEREST: The bonds shall bear interest at a rate or rates to be fixed upon the sale thereof but not to exceed seven percent (7%) per annum, payable on January 1, 1975, and semiannually thereafter on July 1 and January 1 of each year. PAYMENT: Said bonds and the interest thereon are payable in lawful money of the United States of America at the principal office of Crocker National Bank, in the City of Los Angeles, California, or at the option of the holder thereof at the paying agents of the City in the Cities of San Francisco, California; Chicago, Illinois; or New York, New York. REGISTRATION: The bonds will be coupon bonds or fully registered bonds and may be interchangeable upon the terms and in the manner and with the effect set forth in the ordinance providing for the issuance of said bonds. CALLABLE: The bonds maturing on or prior to January 1, 1984, shall not be subject to call or redemption prior to maturity. The bonds maturing on or after January 1, 1985, or any of them, may be called before maturity and redeemed at the option of the City on January 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 a redemption premium of one-fourth of one percent (1/4 of 1%) for each year or fraction of a year from the redemption date to the maturity thereof. 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 redeemed only in inverse order of maturity and by lot within a single maturity. PURPOSE OF ISSUE: The acquisition of park lands and the development of parks in the City of Costa Mesa. 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, 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 t 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 seven percent (7%) per annum, payable annually the first year on January 1, 1975 and semi- annually thereafter on July 1 and January 1 in each year. Each rate bid must be a multiple of one -twentieth of one percent (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. 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 two percent (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 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 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 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 pre- scribed 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. DELIVERY AND PAYMENT: Delivery of said bonds will be made to the successful bidder at Jeffries Banknote Company, 1330 West Pico Boulevard, Los Angeles, California, or at any other place agreeable to the City Treasurer and the successful bidder. Payment for the bonds must be made in immediate Los Angeles funds. Any expense of providing immediate Los Angeles funds, whether by transfer of Federal Reserve Bank funds or other- wise, shall be borne by the purchaser. PROMPT DELIVERY - CANCELLATION FOR LATE DELIVERY: It is expected that said bonds will be delivered to the successful bidder within thirty (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 sixty (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 his bid. 3rti. 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 THE CITY OF COSTA MESA 1974 OPEN SPACE BONDS." BID CHECK: A certified or cashier's check on a responsible bank or trust company in the amount of $40,000.00 payable to the order of the City must accompany each proposal as a guarantee 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 pur- chase 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 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 or shall be required to be taken into account in computing 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 Rutan and Tucker, Bond Counsel, 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 the opinion of Rutan and Tucker, 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 print- ing or certification. CUSIP: CUSIP numbers have been applied for and if requested by the purchaser will be printed on the bonds at the purchaser's expense (the estimated cost of such printing is $125.00). NO LITIGATION CERTIFICATE: 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. to: INFORMATION AVAILABLE: Request for information should be addressed Stone and Youngberg Municipal Financing Consultants, Incorporated 1541 Wilshire Boulevard Los Angeles, California 90017 GIVEN by order of the City Council of the City of Costa Mesa, California, adopted November 5, 1973. �pQ City Clerk of the City of CoS6111 Mesa ADOPTED, SIGNED, AND APPROVED this 5th day of November, 1973. MayoY f the -Ci'Cy of Costa Mesa ATTEST: &!4Z4, ( . City Clerk of the City of Cos Mesa STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF COSTA MESA ) I, EILEEN P. PHINNEY, City Clerk of the City of Costa Mesa, California, 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 5th day of November, 1973, and that it was so adopted by the following vote: AYES: COUNCILMEN: Hammett, Jordan, Pinkly, Wilson, Raciti NOES: COUNCILMEN: None ABSENT: COUNCILMEN: None G142 I - dd"4�- �2 City Clerk and ex -officio Cler of the City Council of the City of C to Mesa