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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; -1- 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, -2- 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 -3- 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 -4- 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 -5- 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 -6- 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 -7- the bondholder requesting such exchange of any tax or other / 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 -8- 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 -9- 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 -10- 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 -11- 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. -12- 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: -13- 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: -14- 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. -15- 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 -16- 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 -17- 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. -18- 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.