HomeMy WebLinkAboutRES NO 89-76FRS: pw
RESOLUTION NO. 89-76
RESOLUTION OF THE COUNCIL OF THE CITY OF BAKERSFIELD,
CALIFORNIA, PROVIDING FOR THE ISSUANCE OF CITY OF
BAKERSFIELD 1976 WATER BONDS IN THE AMOUNT OF
$15,500,00.8;PRESCRIBING THE DATE AND FORM OF THE
BONDS AND OF THE COUPONS TO BE ATTACHED THERETO;
FIXING THE MAXIMUM RATE OF INTEREST ON THE BONDS,
AND PRESCRIBING THE MATURITIES THEREOF AND REDEMP-
TION PROVISIONS THEREFOR; AUTHORIZING THE EXECU-
TION OF THE BONDS AND COUPONS; PROVIDING FOR THE
LEVY OF ATAX TO PAY THE PRINCIPAL AND INTEREST
THEREOF; AND DIRECTING NOTICE OF SALE OF THE BONDS
TO BE GIVEN
WHEREAS, pursuant to Ordinance No. 2289 New Series of the
City of Bakersfield, California (herein called the "City"),
a special municipal bond election was duly and regularly held in
the City on the 2nd day of November, 1976, at which election
there was submitted to the qualified voters of the City the
following bond proposition, to wit:
and
Shall the City of Bakersfield incur a bonded
indebtedness in the principal sum of $.15,500,000
for the acquisition of all Kern River water, water
rights, waterworks and water facilities of Tenneco
West, Inc., Kern Island Water Company and Kern
River Canal and Irrigating Company described in
the Acquisition.Agreement entered into by the City
as of April 12, 1976, and all expenses incidental
to or connected with the authorization, issuance
and sale of the bonds?
WHEREAS, all the requirements of law have been complied
with in calling and holding said special municipal bond election
held in the City on November 2, 1976; and
WHEREAS, the proposition received the affirmative vote
and assent of more than two-thirds of all of the qualified
voters of the City voting on said proposition, and the City is
now authorized to issue bonds in the amount and for the purpose
set forth in said proposition; and
' WHEREAS, ~t is desirable-that aiI'~15~50'0';'0'00; of said auth-
orized bonds be issued and sold;
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NOW, THEREFORE, BE IT RESOLVED by the Council of the City of
Bakersfield, as follows:
SECTION 1. Authorization of Bonds.
(a) Bonds of the City of Bakersfield, California, in the
aggregate principal amount of $15,500,000 shall be issued and
sold for'the purposes set forth in the aforesaid bond proposition
set forth in the recitals hereof. Said bonds shall be designated
the "City of Bakersfield 1976 Water Bonds" (hereinafter called
the "bonds"). The bonds shall be payable in consecutive numerical
order on December 15, in the amounts for each of the several
years, as follows:
Maturity Date
December 15
Prinqipal Amount
Maturing in Each Year
1978 $ 2110~,000
1979 225,000
1980 235,000
1981 250,000
1982 265,000
1983 280,000
1984 300,000
1985 315,,000
1986 3'35,000
1987 355,000
1988 375,000
1989 ~00,000
1990 4~5,-000
1991 450,000
1992 475,000
1993 5.05,000
1994 535,000
1995 565,000
1996 600.,000
1997 635,000
1998 675,000
1999 7175o,000
2000 760',000
2001 805,000
2002 855 ~000
2003 905,,000
2004 960;,000
2005 1,01~.~,000
2006 1,075,000
The bonds shall bear interest from their date until paid at
the rate or rates designated by the Council by Resolution at the
time of the sale of the bonds, but not to exceed eight percent
(8%) per annum, payable annually the first year on December 15,
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1977, and semiannually thereafter on June 15.and December 15 in
each year.
The bonds may be issued as coupon bonds in the denomination
of $5,000 or as fully registered bonds without coupons in the
denomination of $5,000 or any multiple thereof,'so long as no
fully registered bond shall have principal maturing in more than
one year. The coupon bonds, the form of redemption statement to
appear thereon, the interest coupons to be attached thereto, the
fully registered bonds, and the forms of redemption statement,
paying agent's certificate of authentication and registration,
corresponding coupon bond endorsement, and assignment to appear
thereon, are.to be in substantially the forms set forth in
Exhibit A attached hereto, respectively, with necessary or appro-
priate variations, omissions and insertions, as permitted or
required by this ~esolution.
Both the principal of and interest on the bonds shall be
payable in lawful money of the United States of America at the
Corporate Trust Division of Crocker National Bank in the City and
County of San Francisco, California(herein called the "paying
agent").
The coupon bonds shall be dated as of December 15, 1976,
shall be numbered 1 to 3100, inclusive, in consecutive numerical
order, and shall bear interest from December 15, 1976. Payment
of interest on the coupon bonds due on or before maturity of such
bonds shall be made only upon presentation and surrender of the
coupons representing such interest as the same respectively fall
due.
The fully registered bonds shall. be dated as of December 15,
1976, and shall bear interest from the'interest payment date next
~_precedin~ ~he date of authen~ication thereof-unless~such-date of
authentication is an interest payment date, in which event they
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shall bear interest from such date of authentication, or unless
such date of authentication is prior to the first interest pay-
ment date, in which event they shall bear interest from December
15, 1976; provided, however, that if, at the time of authentica-
tion of any fully registered bond, interest is in default on
outstanding bonds, such fully registered bond shall bear interest
from the interest payment date to which interest has previously
been paid or made available for payment on the outstanding
bonds. Payment of the interest on any fully registered bond
shall be made to the person appearing on the bond registration
books of the. paying agent in the City and County of San Francisco
as the registered owner thereof, such interest to be paid by
check or draft mailed to the registered owner at his address
as it appears on such registration books or at such address as he
may have filed with the paying agent for that purpose.
(b) The Council has reviewed all proceedings heretofore
taken relative to the authorization of the bonds and has found,'
as a result of such review, and hereby finds and determines that
all acts, conditions and things required by law to exist, happen
and be performed preceden~.to and in the issuance of the bonds
have existed, happened and been performed in due time, form and
manner as required by law, and the City is now authorized pur-
suant to each and every requirement of law to issue the bonds
and incur indebtedness in the manner and form as in this resolu-
tion provided.
SECTION 2. Execution of Bonds.
The bonds shall be executed on behalf of the City with the
facsimile signatures of the Mayor and the City Treasurer of the
City and attested by the manual signature ofthe City Clerk of
......... ~he-Cit~-~---T-he-Ci-t-y-~C~erk-shall~ af. fix__the~eto~he_corporat~_sea!
of the City. Such seal may be in the form of a facsimile of the
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City's seal and may be imprinted or impressed upon the bonds. In
case any of the officers who shall have signed or attested any of
the bonds shall cease to be such officer or officers of the City
before the bonds so signed or attested shall have been authenti-
cated or delivered by the paying agent or issued by the City,
such bonds may nevertheless be authenticated, delivered and
issued and, upon such authentication', delivery and issue, shall
be as binding upon the City as though those who signed and attested
the same had continued to be such officers of the City, and also
any bond may be signed and attestedon behalf of the City by such
persons as at the actual date of the execution of such bond shall
be the proper officers of the City although at the nominal date
of such bond any such person shall not have been such officer of
the City.
Only such of the fully registered bonds as shall bear
thereon a certificate of authentication in the form herein
recited, executed by the paying agent'and dated the date of
authentication,.~shall be valid or obligatory for any purpose or
entitled to the benefits of this resolution, and such certificate
of the paying agent shall be conclusive evidence that the bonds
so authenticated have been duly authenticated and delivered
hereunder and are entitled to the benefits of this Resolution.
The coupons to be annexed to the bonds shall bear the facsi-
mile signature of the present Treasurer of the City. or the facsi-
mile signature of any future Treasurer thereof, and the City may
use for that purpose the facsimile signature of any person who
shall have been such Treasurer notwithstanding the fact that he
may have ceased to be such at the time when any of the bonds
shall be authenticated, delivered or issued.
The pa~ing agent shall, prior to the delivery by it of each
coupon bond, detach and cancel all coupons thereto appertaining
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then matured and shall deliver the same to or upon the order of
the City.
SECTION 3. Transfer of Coupon Bonds and Coupons.
All coupon bonds and coupons shall-be negotiable and trans-
ferable by delivery. The City and the paying agent may treat the
bearer of any coupon bond, whetheror not such bond shall be
overdue, and the bearer of any coupon, whether or not such coupon
shall be overdue, as the absolute owner of such bond or coupon
for the purpose of receiving payment thereof and for all other
purposes whatsoever, and the City and the paying agent shall not
be affected by any notice to the contrary.
SECTION 4. Transfer of Fully Registered Bonds.
Any fully registered bond without coupons may, in accordance
with its terms, be transferred, upon the books required to be
kept pursuant to the provisions of Section 6, by the person in
whose name it is registered, in person or byhis duly authorized
attorney, upon surrender of such fully registered bond for cancella-
tion, accompanied by delivery of a 'written instrument of transfer
in'a form approved by the paying agent, duly executed.
Whenever any bond shall be issued under this Resolution as a
fully registered bond without coupons, there shall be reserved by
the paying agent unissued an aggregate principal amount of coupon
bonds, of the same maturity and of the denomination of $5,000,
equal to the principal amount of such registered bond, and in
such case the serial number or numbers of the coupon bond or
bonds so reserved, together with an appropriate statement as to
such reservation, shall be endorsed on such registered bond.
Whenever any fully registered bond or bonds without coupons
shall be surrendered for transfer, the City shall execute and the
· pa~ing-~agent shall authenticate and deliver a new-fully-registered
bond or bonds of the same maturity, for like aggregate principal
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amount, which shall have endorsed thereon the same coupon bond
serial number or numbers so reserved.
No transfers' of fully registered bonds shall be required to
be made during the fifteen (~5) days next preceding each interest
payment date.
SECTION 5. Exchange of Bonds.
Fully registered bonds without coupons may be exchanged at
the office of the paying agent for a like aggregate principal
amount of coupon bonds (or for a like aggregate principal amount
of fully registered bonds of other authorized denominations) of
the same maturity, and coupon bonds may be exchanged at said
office of the paying agent for a like aggregate principal amount
of fully registered bonds of authorized denominations of the same
maturity. All coupon bonds surrendered for exchange and'delivered
in'exchange shall have attached thereto all unmatured coupons
appertaining thereto (together with any matured coupons in default
appertaining thereto). The paying agent shall preserve coupon
bonds surrendered to it for exchange, and may subsequently reissue
said coupon bonds in exchange for a like aggregate principal
amount of fully registered bonds, as hereinabove provided, after
detaching all'matured interest coupons appertaining thereto. The
City may charge a sum not exceeding the maximum amount permitted
by law for each new bond issued upon any exchange except as
hereinafter provided. No charge shall be made to any holder of
bonds initially delivered in coupon form for exchanging such
bonds in coupon form for bonds in fully registered form, and no
charge shall be made to any registered owner of bonds initially
delivered in fully registered form for bonds in coupon form. The
foregoing sentence shall not apply to later exchanges when the
bonds presented for exchange are not those initially delivered,
but have been delivered in a previous exchange or transfer. For
any exchange the paying agent shall also require the payment by
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the bondholder requesting such exchange of any tax or other
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governmental charge required to be paid with respect to such
exchange.
SECTION 6. Bond Register.
The paying agent will keep or cause to be kept, at the
office of the paying agent, sufficient books for the registration
and transfer of the bonds, which shall at all times be open to
inspection by the City; and, upon presentation for such purpose,
the paying agent shall, under such reasonable regulations as it
may prescribe, register or transfer orcause to be registered or
transferred, on said books, bonds as hereinbefore provided.
SECTION.7. Improvement Fund.
The proceeds of the sale ofthe bonds (except premium, if
any, and accrued interest) in the amounts hereinafter set forth,
shall forthwith be turned over to and placed inthe municipal
treasury of the.=City to the credit of a fund which~is hereby
created and designated "CITY OF BAKERSFIELD 1976 WATER BONDS,
ACQUISITION FUND" and the moneys in said fund shall be applied
exclusively to the acquisition of the municipal improvements
described in the bond proposition set forth in the recitals
hereof, except as provided in Section 43628 of the Government
Code.
SECTION 8. .Tax Levy; Interest and Redemption Fund.
Any premium or accrued interest received from the sale of
the bonds shall forthwith be turned over to and placed in said
treasury in the interest and redemption fund hereinafter created.
For the purpose of paying the principal and interest on th~
bonds, the Council of the City shall, at the time of fixing the
general tax levy after incurring the bonded indebtedness, and
annually thereafter until the bonds are paid or until there is a
sum in the treasury of the City set apart for that purpose suffi-
cient to meet all payments of principal and interest on the bonds
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as they become due, levy and collect a tax sufficient to pay the
interest on the bonds as it falls due and such part of the prin-
cipal 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,
and shall forthwith be turned over and paid into a fund of the
City to be known as "CITY OF BAKERSFIELD 1976 WATER BONDS,
INTEREST AND REDEMPTION FUND". Said fund shall be used for no
other purpose than the payment of said bonds and interest thereon
until said bonds and interest are fully paid.
SECTION 9. Redemption of Bonds.
The bonds maturing on or prior to December 15, 1986 shall
not be subject to call or redemption prior to maturity. The bonds
maturing on or after December 15, 1987, may be called before maturity
and redeemed at the option of the City, as a whole on any date, or
in part on any interest payment date, on or after December 15, 1986,
at a redemption price for each redeiemlab_l~ bond equal to the principal
amount thereof, plus a redemption premium of one-fourth of one per
cent (1/4 of 1%) for each year or fraction of a year from the
redemption date to the maturity thereof, but in no event shall the
premium exceed five percent (5%).
All or. ~y~__0'f 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.
The interest payment date on which bonds which are called are to
be presented for redemption is hereafter sometimes called the
"redemption date".
SECTION 10. Notice of Redemption.
Notice of .redemption (except as provided below) shall be
given by publication at least once prior to the redemption date
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in a financial newspaper or journal of national circulation
published in the City of New York, New York, such publication to
be not less than thirty (30) nor more than sixty (60) days before
such redemption date. Each notice ofredemption shall state the
redemption date, the place of redemption and the redemption
price, shall designate the serial numbers of the bonds to be
redeemed by giving the individual numbers of each bond or by
stating that all bonds between two stated numbers, both inclusive,
have been called for redemption, and shall require that such
bonds be then surrendered with, in the case of coupon bonds, all
interest coupons maturing on or subsequent to the said redemption
date for redemption at the said redemption price, and shall also
state that the intereston the bonds in such notice designated
for redemption shall cease to accrue from and after such redemp-
tion date and that on said date there will become due and payable
on each of said bonds the principal amount thereof to be redeemed,
interest accrued thereon to the redemption date and the premium
thereon (such premium to be specified). If any of the coupon
bond serial numbers so chosen shall be the serial numbers of
coupon bonds then reserved against outstanding registered bonds,
such notice shall specify the respective serial numbers of such
reserved coupon bonds, and if the serial numbers of all the
coupon bonds reserved against any particular registered bond
shall not have been chosen so that less than the whole of the
principal of such registered bond shall be redeemable, the said
notice shall also state that such registered bond is to be redeemed
in part and that upon the presentation of such registered bond
for redemption there will be issued in lieu of the unredeemed
portion of the principal thereof a new registered'bond or bonds
......... of..the~same.character,~interest~rate-and---ma-turity of an--agg-regate
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principal amount equal to such unredeemed portion.
A similar notice shall also be mailed to the original pur-
chaser of the bonds, or, if the original purchaser is a syndicate,
to the managing member of such syndicate, and to the respective
registered owners of any bonds designated for redemption at their
addresses appearingon the bond registration books at least
thirty (30) days but not more than sixty (60) days prior to the
redemption date, which notice shall, in addition to setting forth
the above information, set forth, in the case of each registered
bond called only in part, the portion of the principal thereof
which is to be redeemed; provided that neither failure to mail
such notice nor any defect in any notice so mailed shall affect
the sufficiency of the proceedings for the redemption of such
bonds.
In case of the redemption'of all of the bonds then out-
standing, or of all of the bonds of any maturity, notice of
redemption shall be.given by publication and mailing in the same
manner as for partial redemption of bonds, except that the notice
of redemption need not specify the serial numbers of the bonds to
be redeemed. If at the time of giving notice of redemption no
bonds subject to redemption are outstanding except registered
bonds, publication of such notice shall be deemed to have been
waived if such notice shall have been mailed to each registered
owner of such bonds at his address as it appears on the registra-
tion books or at such address as he may have filed with the
paying agent for that purpose.
Notice of redemption of bonds shall be given by the City or,
at the request of the City, by the paying agent for and on behalf
of the City.
SECTIONll. Effect of Redemption~ ...................
Notice of redemption having been duly given as aforesaid,
and moneys for payment of the redemption price being held by the
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paying agent, the bonds so called for redemption shall, on the
redemption date designated in such notice, become due and payable
at the redemption price specified in such notice, interest on the
bonds so called for redemption shall cease to accrue, the coupons
for interest thereon maturing subsequent to the redemption date
shall be void, and the holders of said bonds shall have no rights
in respect thereof except to receive payment of the redemption
price thereof.
All unpaid interest installments represented by coupons
which shall have matured on or prior to the date of redemption
designated in such notice shall continue to be payable to the
bearers severally and respectively upon the presentation and
surrender of such coupons.
All bonds redeemed pursuant to the provisions of this Section
and the appurtenant coupons, if any, shall be cancelled upon
surrender thereof and delivered to the City.
SECTION 12. Rescission of Notice of Redemption.
The City may, at its option, prior to the date fixed for
redemption in any notice of redemption rescind and cancel such
notice of redemption.
SECTION 13. Bids or Proposals.
The bonds shall be offered for public sale and sealed bids
or proposals for the purchase of the bonds be received at the
place and up to the time stated in the Notice Inviting Bids
hereinafter set forth_in Section 16 hereof.
SECTION 14. Publication of Notice.
The City Clerk be and is hereby authorized and directed to
publish said Notice Inviting Bids once in THE BAKERSFIELD CALI-
FORNIAN, a newspaper of general circulation, said publication to
be at least ten (10) days prior to the date specified for receiv~
ing bids.
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SECTION 15. M~iling of Notice.
The City Clerk is hereby authorized and directed to cause to be
furnished to prospective bidders copies of the Notice Inviting Bids
relating to the bonds but failure, in wh61e or in part, to comply with
this section shall not in any manner affect the validity of the sale.
SECTION 16. Noti~e"invitin~: Bid's.
This Notice Inviting Bids shall be substantially as follows:
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NOTICE INVITING BIDS ON $15,500,000
CITY OF BAKERSFIELD 1976 WATER BONDS
NOTICE IS HEREBY GIVEN.that sealed propo'sals for the
purchase of $15,500,000 par value general obligation bonds
of the CITY OF BAKERSFIELD designated "City of Bakersfield
1976 Water Bonds" (hereln called the "bonds") will be re-
ceived by the City Clerk of said City at the place and up to
the time below specified:
TIME:
PLACE:
MAILED BIDS:
11:00 o'clock a.m.
December 7, 1976
Crocker National Bank
Corporate Trust Division
llth Floor Conference Room
611 West Sixth Street
Los Angeles, California 90017
Addressed to:
City Clerk
City of Bakersfield
c/o Crocker National Bank
Corporate Trust Division
llth Floor Conference Room
611 West Sixth Street
Los Angeles, California 90017
OPENING OF BIDS: The bids will be opened at the time
and place hereinbefore designated and shall be presented to
the Council at a meeting of said Council to be held on
December 7, 1976, at 8:00 o'clock p.m. at the Council
Chambers, 1501 Truxtun Avenue, Bakersfield, California.
ISSUE: $15,500,000 consisting of 3100 coupon bonds in
the denomination of $5,000 each numbered 1 to 3100 (or fully
registered bonds in denominations of $5,000 or multiples
thereof so long as no fully registered bond shall have
principal maturing in more than one year), all dated December
15, 1976, and comprising all of the bonds of the authorized
issue.
-MATURITIES: The bonds will'mature in consecutive ~'
numerical order on December 15 in the amounts for each of
the several years follows:
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Maturity Date
December 15
Principal Amount
Maturing in Each Year
1978 $ 210,000
1979 225,000
1980 23~,000
1981 250,000
1982 265,000
1983 280,000
1984 300,000
1985 315,000
1986 335,000
1987 355,000
1988 375,000
1989 400,000
1990 425,000
1991 450,000
1992 475,000
1993 505,000
1994 535,000
1995 ~65,000
1996 600,000
1997 635,000
1998 6-75,000
1999 713,000
2000 760,000
2001 805,000
2002 855,000
2003 905,000
2004 960,000
2005 1,015,000
2006 ~,075,000
INTEREST: The bonds shall bear interest at the rate or
rates to be fixed upon the sale thereof but not to exceed
eight percent (8%) per annum, payable on December 15, 1977
and semiannually thereafter on June 15 and December 15 of each
year.
PAYMENT: The bonds and the interest thereon are
payable in lawful money of the United States of America at
the Corporate Trust Division of Crocker National Bank in the
City and County of San Francisco, California.
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
Resolution providing for the issuance of the bonds.
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CALLABLE: The bonds maturing on or prior to December 15,
1986 shall not be subject to call or redemption prior to
maturity. The bonds maturing on or after December 15, 1987
may be called before maturity and redeemed at the option of the
City; as a whole on any date, or in part on any interest
payment date, on or after December 15, 1986, 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, but in no event shall
the premium exceed five percent (5%).
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: On November 2, 1976, by a vote of
two-thirds of the qualified voters voting on the proposi-
tion, the City of Bakersfield was authorized to issue
$15,500,000 general obligation bonds for the acquisition of
all Kern River water, water rights, waterworks and water
facilities of Tenneco West, Inc., Kern Island Water Company
and Kern River Canal and Irrigating Company described in the
Acquisition Agreement entered into by the City as of April
12, 1976.
SECURITY: The 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. For the purpose
of paying the principal and interest of the bonds, said Code
requires that the Council shall, at the time of fixing the
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general tax levy after incurring the bonded indebtedness,
and annually thereafter until the 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 the'bonds as they become due, levy and
collect a tax sufficient to pay the interest on the 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
without limitation of rate or amount and shall be in addi-
tion 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
eight percent (8%) per annum, payable annually the first
year on December 15, 1977 and semiannually thereafter on June
15 and December 15 in each year. Each rate bid must .be a
multiple of one-twentieth of one percent (1/20th of 1%) and
a zero rate of interest cannot be specified. 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. The difference between the lowest
and highest annual installments of principal and interest in
any year in which any principal shall mature shall not
exceed $775,000 (~% of the total principal amount of the
bonds).
Award: The bonds shall be sold for cash only. All
bids must be for not less than all of the bonds hereby
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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 con'sidering 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
the 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 (~6)
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'Council notice in writing of the with-
drawal of such proposal.
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Delivery and Payment:
Delivery of said bonds will
be made to the successful bidder at Jefferies Banknote
Company, 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 funds or
otherwise, shall be borne by the purchaser.
Prompt Delivery -- Cancellation For Late Delivery: It
is expected that said bonds will be delivered to the suc-
cessful bidder within fifteen (15) days from the date o'f
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.
Form of Bid: Each bid, together with the bid check,
must be enclosed in+a sealed envelope, addressed to the
City, with the envelope and bid clearly marked:
"PROPOSAL FOR THE CITY OF BAKERSFIELD
1976 WATER BONDS".
Bid Check: A certified or cashier's check on a
responsible bank or trust company in the amount of $155,000
payable to the order of the City must accompany each proposal
as a guarantee that the bidder, if successful, will accept
and pay for the 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
-19-
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 shallbe 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.
Closing Papers: Eachproposal will be understood to be
conditioned upon the City's furnishing to the purchaser,
without charge, concurrently with payment for and delivery
of the bonds, the following closing papers, each dated the
date of delivery:
(a) Legal Opinion - The legal opinion of Rutan &
Tucker, Bond Counsel, Santa Ana, California, and Orrick,
Herrington, Rowley & Sutcliffe, Bond Counsel, San Francisco,
California, approving the validity of the 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 that opinion, certifiedby an officer of the City by his
facsimile signature, will be printed on the back ofeach bond.
No charge will be made to the purchaser for such printing or
certification;
· (~bg- ~--cert-ification of-the City-certify~ng~'that-on the
basis of the facts, estimates and circumstances in existence
-20-
on the date of issue, it is not expected that the proceeds of the
bonds will be used in a manner that would cause the bonds to be
arbitrage bonds;
(c) A certificate of the City signed by officers and
representatives of the City certifying to the following:
(1) that said officers and representatives have signed the
bonds, whether by facsimile or manual signature, and that
they were respectively duly authorized to execute the same;
and (2) that there is no litigation pending affecting the vali-
dity of the bonds;
(d) The receipt of the City showing that the purchase
price of the bonds, including interest accrued to the date of
delivery thereof, has been received by the City;
(e) A certificate of the City, signed by the Director
of Finance of the City, acting in his official capacity, to
the effect that to the best of his knowledge and belief, and
after reasonable investigation: (1) the official statement
relating to the bonds, as of the date of the official statement,
did not contain any untrue statement of a material fact nor omit
to state ,any material fact necessary to make the statements
therein, in light of the circumstances in which they were made,
not misleading; and (2) ,~ ~s of the da~e of bond delivery, there
has been no material adverse change (not in the ordinary course
of operations of the City) in the condition, financial or other-
wise, of the City from that set forth in or contemplated by the
official statement.
CUSIP Numbers: It is anticipated that CUSIP identification
numbers will be printed on the bonds but neither the failure
to print such number on any bond nor any error with re-
spect thereto shall constitute cause for a failure or
refusal by the purchaser thereof to accept delivery of and
pay for said bonds in accordance with the terms of the
purchase contract. All expenses in relation to the printing
-21-
of CUSIP numbers on said bonds shall be paid for by the
issuer; provided, however, that the CUSIP Service Bureau
charge for the assignment of said numbers shall be the
responsibility of and shall be paid for by the purchaser.
OFFICIAL STATEMENT: The City has prepared an official
statement relating to the bonds, a copy of which will be
furnished upon request' addressed to:
Office of Finance Director
City of Bakersfield
1501 Truxtun Avenue
Bakersfield, California 93301
L. F. Rothschild & Co.
555 California Street
San Francisco, California 94104
L. F. Rothschild & Co.
99 William Street
New York, New York 10038
The City will provide the successful bidder 400 copies
of the official statement at the expense of the City.
GIVEN by order of the -~Councit ~ of the City of
Bakersfield, California, adopted November 15, 1976.
H. E. BERGEN
City Clerk, City of Bakersfield
-22-
SECTION 17. This resolution shall take effect from
and after its passage and approval.
ADOPTED, SIGNED AND APPROVED this 15th day of November,
1976.
sfield
ATTEST:
, Bakersfield
APPROVED AS TO FOR~:
City Attorney, Cityl~ Bakersfield
-23-
CITY CLERK'S CERTIFICATE
I, H. E. BERGEN, City Clerk of the City of Bakersfield,
California, do hereby certify as follows:
The foregoing is a full, true and correct copy of a resolu-
tion duly adopted by the Council of said City, at a regular
meeting of said Council duly and regularly and legally held at
the regular meeting place thereof on November 15, 19?8, of which
meeting all of the members of said Council had due notice and
at which a majority thereof was present.
At said meeting said resolution was introduced by Councilman
Rogers and was thereupon, upon motion of Councilman
Rogers , seconded by Councilman ,
adopted by the following vote:
AYES: Councilmen:
NOES:
ABSENT:
Councilmen:
Councilmen:
Bleecker, Medders, Rogers, Sceales,
Strong
None
Barton, Christensen.
I have carefully compared the same with the original minutes
of said meeting on file and of record in my office and the fore-
going is a full, true and correct copy of the original resolution
adopted at said meeting and entered in said minutes.
The original resolution has not been amended, modified or
rescinded since the date of its adoption and the same is now in
full force and effect.
DATED: November 15th, 1976.
EXHIBIT "A"
(FORM OF COUPON BOND)
UNITED STATES OF AMERICA
STATE OF CALIFORNIA
COUNTY OF KERN
CITY OF BAKERSFIELD
1976 WATER BONDS
No.__ $5,000
The City of Bakersfield, a municipal corporation~lorganized
and existing under its Charter and the Constitution and laws of
the State of California, situated in the County of Kern, State of
California (herein called the "City"), FOR VALUE RECEIVED, hereby
acknowledges itself indebted and promises to pay to the bearer
hereof the principal sum of FIVE THOUSAND DOLLARS ($5,000) on the
15th day of December , (subject to any right of redemption
hereinafter reserved), with interest thereon at the rate of
percent ( %)
per annum, interest payable on December 15, 1977 and semi-
annually thereafter on June 15 and December 15 in each year from
the date hereof until this bond is paid, on presentation and
surrender of the respective interest coupons hereto attached.
Both principal and interest are payable in lawful money of the
United States of America at the Corporate Trust Division of
Crocker National Bank, in the City and County of San Francisco,
California (herein called the "Paying Agent").
This bond is issuedby the City under and in pursuance of
and in conformity with the provisions of Article 1, Chapter 4,
Division 4, Title 4 of the Government Code of the State of
California, and acts supplementary thereto, and in pursuance of
the laws and Constitution of the State of California, and is
authorized by a vote of.more than two-thirds of all the qualified
voters of the City voting at an election duly and legally called,
held and conducted in the City on the 2nd day of November, 1976.
Unless this bond matures on or prior to December 15, 1986,
it is redeemable prior to maturity in accordance with the pro-
visions for redemption endorsed hereon.
This bond is one of a duly authorized issue of bonds of the
City aggregating Fifteen Million Five Hundred Thousand Dollars
($15,500,000) in principal amount. The bonds of this issue are
issuable as coupon bonds in the denomination of $5,000 and as
fully registered bonds without coupons in denominations of $5,000
and any authorized multiple thereof. Subject to the limitations
and conditions and upon payment of the charges, if any, as pro-
vided in Resolution No. (adopted by the Council of the
City on - 1976) fully registered bonds may be
exchanged for a like aggregate principal amount of coupon bonds
of the same maturity or for a like aggregate principal amount of
fully registered bonds of the same maturity-of-other authorized
denominations, and coupon bonds may be exchanged for a like
(FORM OF INTEREST COUPON)
Coupon No.
On the fifteenthfday~df
the City of Bakersfield, Kern County,
California, will pay to the bearer
at the Corporate Trust Division of
Crocker National Bank in San Francisco,
California, the sum set forth hereon $
in lawful money of the United States
of America, being interest then due
on its 1976 Water Bond, dated
December 15, 1976, .................... No.
City Treasurer, City of Bakersfield
California
(FORM OF REVERSE OF INTEREST COUPON)
If the bond to which this coupon is
attached is redeemable and is duly
called for redemption on a date
prior to the maturity date of this
coupon, this coupon will be void.
(FORM OF REDEMPTION STATEMENT
TO GO ON REVERSE OF COUPON BOND)
PROVISIONS FOR REDEMPTION
Unless this bond matures on or prior to December 15,
1986, it is redeemable in the manner.and subject to the
terms and provisions and with the effect set forth in
the within mentioned Resolution at the option of said Council
0~'or~'~fter'December 15, 1986, as awhole' on~any_~date,~or in
.part on.'any'interest payment--dat~, upon at least thirty
(30) days' prior ~otice in a financial newspaper or journal
of national circulation published in the City of New York,
New York, at a redemption price equal to the principal
amount hereof, plus a redemption premium of one-fourth of
one percent (1/4 of.l%) for each year or fraction of a
year from the redemption date to the maturity date of
this bond, but in no event shall the premium exceed five
percent (5%).
(FORM OF FULLY REGISTERED BOND)
UNITED STATES OF AMERICA
STATE OF CALIFORNIA
COUNTY OF KERN
CITY OF BAKERSFIELD
1976 WATER BONDS
No. R $
The City of Bakersfield, a municipal corporations- organized
and existing under its Charter and the Constitution and laws of
the State of California, situated in the County of Kern, State of
California (herein called the "City"), FOR VALUE RECEIVED, hereby
acknowledges itself indebted and-promises to pay to
or registered assigns, the principal sum
of THOUSAND
DOLLARS ($ ) on the 15th day of December ,
(subject to any right of redemption hereinafter reserved)
in lawful money of the United States of America,.wi~h interest
thereon in like money from the interest payment date next pre-
ceding the date of authentication of this bond (unless this bond
is authenticated on an interest payment date, in which event it
shail bear interest from such date of authentication, or unless
this bond is authenticated prior to December 15, 1977, in which
event it shall bear interest from December 15, 1976) until pay-
ment of such principal sum, at the rate of
percent ( %) per annum, interest payable on December
15, 1977 and semiannually thereafter on June 15 and December 15
in each year. The principal of this bond is payable at the
Corporate Trust Division of Crocker National Bank in the City
and County of San Francisco, California (herein called the
"Paying Agent"). The interest on this bond is payable by check
or draft mailed to the registered owner hereof.
This bond is issued by the City under and in pursuance of
and in conformity with the provisions of Article 1, Chapter 4,
Division 4, Title 4 of the Government Code of the State of
California, and acts supplementary thereto, and in pursuance of
the laws and Constitution of the State of California, and is
authorized by a vote of more than two-thirds of all the qualified
voters of the City voting at an election duly and legally called,
held and conducted in the City on the 2nd day of November, 1976.
Unless this bond matures on or prior to December 15, 1986,
it is redeemable prior to maturity in accordance with the pro-
visions for redemption endorsed hereon.
This bond is one of a duly authorized issue of bonds of the
City aggregating Fifteen Million Five Hundred Thousand Dollars
($15,500,000) in principal amount. The bonds of this issue are
issuable as coupon bonds in the denomination of $5,000 and as
fully registered bonds without coupons in denominations of $5,000
and any authorized multiple thereof. Subject to the limitations
and conditions and upon payment of the charges, if any, as pro-
vided in Resolution No. adopted by the Council of the
........ Cite_on ....... , 1976 (herein called'the "Resolution"),
fully registered-bonds may be exchanged for a like aggregate
principal amount of fully registered bonds of the same maturity
of other authorized denominations, and coupon bonds may be
exchanged for a like aggregate principal amount of fully regis-
tered bonds of the same maturity of authorized denominations.
This bond is transferable by the registered owner hereof, in
person or by his attorney duly authorized in writing, at the
office of the Paying Agent but only in the manner, subject to
the limitations and upon payment of the charges provided in the
Resolution, and upon surrender and cancellation of this bond.
Upon such transfer a new fully registered bond or bonds without
coupons, of authorized denomination or denominations, for the
same aggregate principal amount will be issued to the transferee
in exchange herefor.
The City and the Paying Agent may treat the registered owner
hereof as the absolute owner hereof for all purposes, and the
City and the Paying Agent shall not be affected by any notice to
the contrary.
This bond shall not be entitled to any benefit under the
Resolution or become valid or obligatory for any purpose, until
the certificate of authentication hereon endorsed shall have been
signed and dated the date of authentication by the Paying Agent.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts,
conditions and things required by law to exist, happen and be
performed precedent to and in theissuance of this bond have
existed, happened and been performed in due time, form and manner
as required by law, and that the amount of this bond, together
with all other indebtedness of the City, does not exceed any debt
limit prescribed by the laws or Constitution of the State of
California~ and that provision has been made as required by the
Constitution and statutes of said State for the collection of an
annual tax sufficient to pay the principal ofand interest on
this bond as the-same become due. The full faith and credit of
the City are hereby pledged for the punctual payment of the prin-
cipal of and interest on this bond.
IN WITNESS WHEREOF, the City of Bakersfield has caused this
bond to be signed by the Mayor and the City Treasurer olf the
City bytheir facsimile signatures, countersigned by the City
Clerk of the City and sealed with the facsimile corporate seal of
the City, and has caused this bond to be dated the 15th day of
December, 1976.
Mayor, City of Bakersfield
COUNTERSIGNED:
Treasurer, City of Bakersfield
City Clerk, City of Bakersfield
(SEAL)
aggregate principal amount of fully registered bonds of the same
maturity of authorized denominations.
This bond and the coupons appertaining hereto are negotiable
and transferable by delivery, and the City and the.Paying Agent
may treat the bearer hereof, or the bearer of any coupon apper-
taining hereto, as the absolute owner hereof or of such coupon,
as the case may be, for all purposes, whether or not this bond or
such coupon shall be overdue, and the City and the Paying Agent
shall not be affected by any notice to the contrary.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts,.
conditions and things required by law to exist,.happen and be
performed precedent to and in the issuance of this bond have
existed, happened and been performed in due time, form and manner
as required by law, and that the amount of this bond, together
with all other indebtedness of the City, does not exceed any debt
limit prescribed by the laws or Constitution of the State of
California, and that provision has been made as required by the
Constitution and statutes of said State for the collection of an
annual tax sufficient to pay the principal of and interest on this
bond as the same become due. The full faith and credit of the
City are hereby pledged for the punctual payment of the principal
of and interest on this bond.
IN WITNESS WHEREOF, the City of Bakersfield has caused this
bond to be signedby the Mayor and the City Treasurer of the City
by their facsimile signatures, countersigned by the City Clerk
of the City and sealed with the facsimile corporate seal of the
City, and the interest coupons hereto attached to be signed by
the City Treasurer by his facsimile signature, and has caused
this bond to be dated the 15th day of December, 1976.
Mayor, City of Bakersfield
COUNTERSIGNED:
Treasurer, City of Bakersfield
City Clerk, City of Bakersfield
(SEAL)
(FORM OF REDEMPTION STATEMENT TO GO ON
REVERSE OF FULLY REGISTERED BOND)
PROVISIONS FOR REDEMPTION
Unless this bond matures on or prior to December 15,
1986, it is redeemable in the manner and subject to the
terms and provisions and with the effect set forth in the
within mentioned Resolution at the option of saidCouncil on or after
December.15, 1986, as a whole on any-date~ or in par~ on-any
interes~.p~yment date, upon at least thirty (30) days
prior notice in a financial newspaper or journal of national
circulation published in the City of New York, New York, at
a redemptionsprice equal to the principal amount hereof,
plus a redemption premium of one-fourth of one percent (1/4
of 1%) for each year or fraction of a year from the redemp-
tion date to the maturity date of this bond, but in no event
shall the premium exceed five percent (5%).
(FORM OF PAYING AGENT'S CERTIFICATE
OF AUTHENTICATION AND REGISTRATION TO APPEAR ON
REGISTERED BONDS)
This is one of the bonds described in the within-
mentioned Resolution and authenticated and registered
, ·
CROCKER NATIONAL BANK
By
Authorized Officer
(FORM OF CORRESPONDING COUPON BOND ENDORSEMENT)
Notice: No writing below except by the Paying Agent.
This registered bond is issued in lieu of or
in exchange for coupon bond(s) of this issue,
interest rate and maturity, numbered
,
in the denomination of $5,000 each not contempora-
neously outstanding aggregating the face value hereof;
and coupon bond(s) of this issue and of the same
interest rate and maturity aggregating the face value
hereof [and bearing the above serial number(s) which
has (have) been reserved for such coupon bond(s)]
will be issued in exchange for this registered bond and
upon surrender and cancellation thereof and upon pay-
ment of charges, all as provided in the within-
mentioned Resolution·
(FORM OF ASSIGNMENT)
For value received the undersigned do(es) hereby sell,
assign and transfer unto
the within-mentioned registered bond and hereby irrevocably
constitute and appoint
attorney, to transfer the same on the books of the Paying
Agent with full power of substitution in the premises.
Dated:
NOTE:
The signature(s) to this Assignment must correspond
with the name(s) as written on the face of the within
registered bond in every particular, without alteration
or enlargement or any change whatsoever.