HomeMy WebLinkAboutRES NO 20-57RESOLUTION NO. 20-57
RESOLUTION OF THE COUNCIL OF THE
CITY OF BAKERSFIELD, CALIFORNIA,
DIRECTING THE CLERK TO PUBLISH
NOTICE INVITING SEALED PROPOSALS
FOR $395,000 MUNICIPAL BUS SYSTEM
BONDS OF SAID CITY.
WHEREAS, an ordinance providing for the issuance
of bonds of the City of Bakersfield in the amount of $395,000
to be designated MUNICIPAL BUS SYSTEM BONDS, 1957, 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 circulation
published in said city.
Section 3. That said notice shall be substantially
as follows:
NOTICE INVITING BIDS ON
$395,000 GENERAL OBLIGA-
TION BONDSOF THE CITY
0F BAKERSFIELD
NOTICE IS HEREBY GIVEN that sealed proposals
for the purchase of $395,000 par value general obligation
bonds of the City of Bakersfield will be received by the
Council of said City at the place and up to the time below
specified:
TIME:
8:00 o'clock, P.M., California
Daylight Saving Time, May 20, L1957.
PLACE:
Council Chambers, City Hall,
BakerSfield, California.
MAILED BIDS: Address to City Clerk, City Hall
Bakersfield, CalifOrnia.
OPENING OF BIDS: The bids will be opened at the
meeting of said Council to be held May'20, 1957, at 8:00
o'clock, P.M., California Daylight Saving Time, in said
Council Chambers.
ISSUE: $395,000 bonds, designatedMUNICIPAL
BUS SYSTEM BONDS 1957, and consisting of'three hundred
ninety-five bonds, numbered i to 395, both inclusive, of
the denomination of $1,000 each, all dated May l, 1957-
MATURITIES: The bonds will'mature in consecutive
numerical order, $35,000 on May l~ 1958, and'S40,000 on
May I ineach of the years 1959 to 1967, both inclusive.
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: The bonds are not callable before
maturity.
PURPOSE OF ISSUE: The bonds to be issued are the
total amount of bonds authorized at an election held
March 19, 1957, and the proceeds are to be used for the
acquisition and construction of a municipal bus system.
SECURITY: Said bonds are issued pursuant to
the Charter of said city and Article l, Chapter 4, Division
4, Title 4 (Sections 43600 et seq.) of the Government Code
of the State of California, sometimes known as the Municipal
Bond Act of 1901. For the purpose of paying the principal
and interest of said bonds, said Act'requires that the
Council shall at the time Of fixing the general tax levy,
and annually thereafter until said bonds are paid or until
~there is-asum in the-rtreasuryof said c~ty setapart-for
that purpose sufficient to meet all payments of principal
and interest on said bonds as they become due, levy and
collect a tax sufficient to pay the interest on said
bonds as it falls due and such part of the .principal 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 shal'l be levied and collectedas
other city taxes.
TERMS 0F 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. Not more thankthree interest rates may be bid.
The repetition of any rate will not be considered the
bidding of an additional rate.
Award: The bonds shall be sold for cash only·
All bids must be for not less than all of the bonds hereby
offered for sale and each bid shall state that the bidder
offers par and accrued interest to the date. of delivery,
the premium, if any, and the interest rate or rates not
to exceed those specified herein,'at which the bidder
offers to buy said bonds. Each bidder shall state in
his bid the total net interest cost in dollars and the
average net interest rate determined thereby, which shall
be considered informative only and not a part of the bid.
Highest Bidder: The bonds will be awarded to
the highest responsible bidder or bidders considering the
interest rate or rates specified and the premium offered,
if any. The highest bid will be determined by deducting
the amount of the premium bid (if any) from the total
amount of interest which the city would be required to
pay from the date of said bonds to the respective maturity
dates thereof at the coupon rate or rates specified in the
bid and the award will be made on the basis of the lowest
net interest cost to the city. The purchaser.must pay
accrued interest from the date' of the bonds to the date of
delivery. The accrued interest shall be computed on a
360-day year basis.
be borne by the city·
The cost of printing the bonds will
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
.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
withdrawal of such proposal.
Place of DeliVer~:.. DeliVerY of sai~_.b0nds will
be made to the successful bidder'at the office of the
Treasurer of the city unless some other placeof delivery
is agreed upon between the city and the'purchaser.
Prompt Delivery, Cancellation for Late Delivery:
It is expected that said bonds will be delivered to~.the
successful bidder within 30 days from the date of saie
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 successful bidder. shall be entitled to th'e
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
$395,000 Municipal Bus System Bonds, 1957.
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. proposaI' 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
accepted but not performed, unless such 'failure.of performance
shall be caused by any act or omission of 'the city, shall
then be retained by the city. The check'accomp'anying each
unaccepted proposal will be returned promptly.
..... Change in.Tax Exempt IStatus: 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
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
O'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 pay-
ment 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 information
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 April R2, 1957.
MARIAN'S. IRVIN
Clerk of the City of
Bakersfield, California.
ADOPTED, SIGNED AND APPROVED this 22nd day of
April, 1957.
ATTEST:
~.~BA. kersfield, California.
STATE' OF CALIFORNIA
COUNTY OF KERN ss.
~c~CiTY OF BAKERSFIELD
Mayor of the City of
Bakersfield, California.
I, MARIAN S. IRVIN, Clerk of the City of Bakersfield,
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 22nd day of April~ 1957, and that it was
so adopted as follows:
AYES: Councilmen Balfanz, Bentley, Carnakis,
'Collins, Croes, Doolin, Schweitzer
NOES:
Councilmen None
Councilmen None
Bakers~ield, California.