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Home My WebLink AboutRES NO 12-59RESOLUTION NO. 12-59 RESOLUTION OF THE COUNCIL OF THE CITY OF BAKERSFIELD, CALIFORNIA, DIRECTING THE CLERK TO PUBLISH NOTICE INVITING SEALED PROPOSALS FOR $3,750,000 MLrNICIPAL AUDITORIUM BONDS OF SAID CITY. WHEREAS, an ordinance providing for the issuance of bonds of the City of Bakersfield, California, in the amount of $3,750~00, to be designated "MUNICIPAL AUDITORIUM BONDS, 1959," has been adopted; and WHEREAS, it is desirable that said bonds be sold; NOW, THEREFORE, the CoUncil of the City of Bakers- field, California, DOES HEREBY RESOLVE, DETERMINE AND ORDER as follows: Section 1. That said bonds be sold and that sealed bids or proposals for the purchase of said bonds be received up to the time stated in the notice hereinafter set forth. Section 2. That the Clerk be and she is hereby authorized and directed to publish said notice once in the BAKERSFIELD CALIFORNIAN, a newspaper of general circu- lation published in said city. Section 3. as follows: That said notice shall be substantially INTEREST: The bonds shall bear interest at a rate or rates to be fixed upon the sale thereof but not to exceed 6% per annum, payable annually the first year and semiannually thereafter. PAYMENT: Said bonds and the interest thereon are payable in lawful money of the United States of America at the office of the Treasurer of the City of Bakersfield, in said city. REGISTRATION: The bonds will be coupon+ bonds registerable only as to both principal and interest. NOT CALLABLE: before maturity. The bonds are not callable PURPOSE OF ISSUE: The bonds to be issued are the total amount of bonds authorized at the election held November 4, 1958, and the proceeds are to be used for the acquisition and construction of a municipal auditorium. SECURITY: Said 'bonds are issued pursuant to the Charter of said city and Article 1, Chapter 4, Division ~, Title 4 (Section 43600 et seq.) of the Government Code of the State of California, sometimes known as the Municipal Bond Act of 1901. For the pur- pose of paying the principal and interest of said bonds, said Act requires that the Council shall at the time of fixing the general tax levy, and annually thereafter untii'-said-bonds-are paid~or 'until there-is':a-'sum-in the treasury of said city set apart for that purpose sufficient to meet all payments of principal and and interest on said bonds as they become due, levy and collect a tax sufficient to pay the interest on said bonds as it falls due and*such part of the principal as will become due before the proceeds of a tax levied at the next general tax levy will be available; provided, however, that said tax may be reduced or omitted to the extent that moneys for such purposes have been actually provided from a source other than such tax levy. Said tax shall be in addition to all other taxes levied for municipal purposes and shall be levied and collected as other city taxes. TERMS OF~SALE Interest Rate: The maximum rate bid may not exceed 6% per annum, payable annually.the first year and semiannually thereafter. Each rate bid must be a multiple of 1/4 of 1%. No bond shall bear more than one interest rate, and all bonds of the same maturity shall bear the same rate. The rate on any maturity or group of maturities shall not be more than 2% higher than the interest rate on any other maturity or group of maturities. Award: The bonds shall be sold for cash only. All bids must be for not less than all of the bonds hereby offered for sale and each bid shall state '.that the, bidder offers par and ~ccrued~inteFe~,~.~_,Ithe ..... 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 informa- tive only and not a part of the bid. Highest Bidder: The bonds will be .awarded to the highest responsible bidder or bidders considering the interest rate or rates specified and the premium offered, if any. The highest bid will be determined by deducting the amount of the premium bid (if any) from the total amount of interest which the city would be req.uired to pay from the date of said bonds to the respec- tive 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. The accrued interest shall be 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 irregu- larity or informality in any bid. Prompt Award: The city will take action award- ing the bonds or rejecting all bids not later than twenty-six (26) hours after the time herein prescribed for the. receipt o£.proposa.lS'~. provided, that~t~_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 withdrawal of such proposal. Place of Delivery: Delivery of said bonds will be made to the successful bidder at the office of the Treasurer of the city unless some other place of delivery is agreed upon between the city'and the purchaser. Prompt Delivery; Cancellation for Late Delivery: It is expected that said bonds will be de. livered to the successfulbidder within 30 days from the date of sale thereof. The successful bidder shall have the right, at his option, to cancel the contract of purchase if the city shall fail to execute the bonds and tender them for delivery within 60 days from the date of the sale thereof, and in such event the.success- ful bidder shall be entitled to the return of the deposit accompanying his bid. Form of Bid: Ea~ch bid, together with the bid check, must be in a sealed envelope,+ addressed to the city with the envelope and bid clearly marked "Proposal for $3,750,000 Municipal Auditorium Bonds, 1959." Bid Check: A certified or cashier's check on a responsible bank or trust company in the amount of 3% of the principal amount of. the bonds, payable to the order of the city, must accompany each proposal as a guaranty that the bidder, if successful, will accept and pay for said bonds in accordance with the terms of his bid. The proceeds of the check accompanying any accepted proposal shall be applied on the purchase price or, if such proposal is '~ccep~eld ~hbUt not pe~f0rmed'~ U~lesS such failure 'of per- formance shall be caused by any act or omission of the city, shall then be 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 success- ful 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 Bureau of Internal Revenue or by a decision of any federal court, or shall be declared taxable by the terms of any federal income tax law enacted subsequent to the date of this.notiCe. Legal Opinion: The unqualified opinion of 0'Melveny & Myers, attorneys, approving the validity of said bonds will be furnished the successful bidder at or prior to the date of delivery of the bonds, at the expense of the city· No Litigation Certificate: At the time of payment for and delivery of said bonds the city will furnish the successful bidder a certificate that there is no litigation pending affecting the validity of the bonds. 'INFORMATION AVAILABLE: Requests for informa- tion concerning the city should be addressed to the City Clerk, City Hall, Bakersfield, California· GIVEN by order of the Council of the City of Bakersfield adopted March. 2, 1959o MARIAN S.' IRVIN Clerk of the City of Bakersfield, California ADOPTED, SIGNED AND APPROVED this 2nd day of March, 1959. ATTEST: ~' ' ?~ -Clb~r~ o~ the ' I/--~'L~t~B~kersfield, California STATE OF CALIFORNIA COUNTY OF KERN CITY OF BAKERSFIELD Bakersfield, California I, MARIAN S. IRVIN, Clerk of the City of Bakers- field, California, DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the Council of said city and was approved by the Mayor of said city at a regular meeting of said Council held on the 2nd day of March, 1959, and that it was so adopted as follows: AYES: Councilmen NOES: Councilmen Councilmen Balfanz., Bentley, Carnakis, Croes,~Dewire, Doolin None Collins of he t City of Bakersfield,- California