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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.