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HomeMy WebLinkAboutReso 1677-1951RESOLUTION NO. 1677 A RESOLUTION PROVIDING FOR THE ISSUANCE OF SERIES C BONDS OF 'THE CITY OF SOUTH SAN FRANCISCO KNO~IN AS "CITY OF SOUTH SAN FRANCISCO SFIAGE DISPOSAL BONDS - 19&9"; PRE- SCRIBING THE A~OUNT, DATE AND FORM OF SERIES C BONDS AND THE COUPONS ATTACHED THERETO; AND PRESCRIBING THE MA~JR- ITIES THEREOF; AUTHORIZING THE EXECUTION OF SAID BONDS AND COUPONS; PROVIDING FOR THE LEVY. OF A TAX TO PAY THE PRINCIPAL AND INTEREST OF SAID BONDS; AND DIRECTING NOTICE OF SALE OF SAID SF/{IES C BONDS TO BE GIVEN. RESOLVED by the City Council of the City of South San Francisco as follows: That said City Council issue and sell bonds in the amount of $500,000.00, the same being a part of the principal amount of the bonds authorized at the special election held in said city on July 26, 19&9, and by Resolution No. 1A95, adopted by the City Council on October 10, 19&9, authorizing the issue of $1,667,000 aggregate principal amount of bonds of said City (which said resolution is hereby incorporated herein and by this reference is hereby made a part hereof), which bonds are designated "City of South San Francisco Sewage Disposal Bonds-19A9". Said Bonds in the principal amount of $500,000.00 shall be designated Series C, and shall be negotiable in form, and of the character known as serial, and 500 in numbered consecutively C1 to C500, both inclusive, and of the denomination of $1,OO0.00 each. Said Series C bonds shall be dated June 15, 1951., (which is hereby fixed and determined to be the date of the issue of such Series C bonds). Ail said series C bonds shall bear interest from their date until paid at a rate, not exceeding FIVE PERCENT (5%) per annum, which rate shall be the lowest rate which may be proposed by a bidder for the purchase of said bonds. Said interest shall be payable semi-annually on June 15 and December 15 of each year. Said bonds will mature and become payable in consecutive numerical order from the lower to the higher as follows: $15,0OO.OO parincipal amount on the 15th day of June in each of the years 1952 to 1976 both inclusive, and $25,000.00 principal amount on the 15th day of June in each of the years 1977 to 1981, both inclusive. Both the principal and interest on said bonds shall be .payable at the ~ffice~ of the Treasurer of the City of South San Francisco, in South San Francisco, California, in lawful money of the United States of America. Section 1. Said bonds shall each be substantially in the following form, the blanks in said form and in the form of coupon given below to be filled with appropriate words or figures, namely: UNITED STATES OF AMERICA STATE OF CALIFORNIA SAN MATEO COUNTY CITY OF SOUTH FRANCISCO SE AGE DISPOSAL BOND -19&9 No. C $1,0OO.00 THE CITY OF S~TH SAN FRANCISCO, a municipal corporation, organized and existing under the Constitution and laws of the State of California, hereby acknowledges itself indebted and for value received, promises to pay to the bearer (or if this bond be registered, to the registered holder hereof) on the 15th day of June, 19_..~, ONE THOUSAND DOLLARS ($1,000.00), together with interest thereon at the rate of ( ) percent per annum until payment of said principal sum in full, payable semi-annually on the 15th day of June and the 15th day of December of each year. Unless this bond is registered such interest, prior to maturity, shall be payable only on presentation and surrender of the proper interest coupons hereto attached as they respectively become due. Both the principal of and interest on this bond are payable in lawful money of the United States of America at the office of the Treasurer of the City of South San Francisco, in South San Francisco, California. Thisbond is one of a duly authorized'issue of bonds of said city aggregating one million six hundred sixty-seven thousand dollars ($1,667,000) in principal amount, all of like tenor (except for such variations, if any, as may be required to designate varying series, numbers, maturities or interest rates) and is issued under and pursuant to the Constitution and statutes of the State of California, and under and pursuant to the ordinances and proceedings of said City duly adopted and taken and a vote and ~assent of more than two-thirds of all the qualified electors of said City voting at a special election duly called and held for that purpose. It is hereby certified, recited~and declared that all acts, conditions and things required by law to exist, happen and to 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~said City, does not exceed any limit pre- scribed by the Constitution or statutes of said State, 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 said City are hereby pledged for the punctual payment of the principal and interest of this bond. This bond may be registered in the manner provided by law and thereafter the principal hereof, and interest hereon shall be payable only to such registered owner. IN ~TNESS ~W~EEEOF, the City of South San Francisco has caused this bond to be executed under its official seal, signed by its Mayor and its Treasurer, and countersigned by its Clerk, and has caused the interest coupons hereto attached to be signed by its Treasurer, and this bond to be dated the 15th day of June, 1951. Mayor of the City of South San Francisco Countersigned: Treasurer of the City of South' San Francisco City Clerk of the City of South San Francisco. (Interest Coupon) C~upon No. On the 15th day of , 19 , the City of South San Francisco will (unless the within mentioned bond be registered) pay to bearer at the office of the Treasurer of said City, In South San Francisco, California,· Dollars ($ ) in lawful money of the United States of America, being six months' interest then due on its 1949 Sewage Disposal Bond, Series C, dated June 15, 1951. No. C Treasurer of the City of South San Francisco Section 2. The Mayor of said City of South San Francisco and the Treasurer of said City are hereby authorized and directed, respectively, as such officers, to execute each of said bonds on behalf of said City, and the City Clerk, or one or more of his deputies, is hereby authorized and directed to countersign each of said bonds and to affix the official seal of said City thereto. Said Mayor and Treasurer are hereby each, respectively, authorized to cause said bonds to'be signed by their printed, lithographed or engraved facsimile signatures. Such Treasurer is hereby authorized and directed to sign each of the interest coupons by printed, lithographed, or engraved ~acsimile signature.: SUch signing, ~codntersigningtandl sealing a~-'herein~.pro~ided~ shall be ~a~ ~ . ::~:: ~fficient and' binding execution of said bonds and coupons by said City, and all such ~ignatures and countersignatures, excepting that of the City Clerk or his deputies, may be printed, lithographed or engraved. In case any of such officers whose signatures or countersignatures appear on the bonds or coupons shall cease to be such officer before the delivery of such bonds to the purchaser, such signatures or countersignatures shall nevertheless be valid and sufficient for all purposes the same as if they had remained in office until the delivery of the bonds. Section 3. The City Clerk is directed to cause a sufficient number of blank bonds and coupons of suitable quality to be lithographed, printed or engraved, and to cause the blank spaces thereof to be filled in to comply with the provisions hereof, and to procure their execution by the proper officers, and to deliver them, when so executed, to the Treasurer of said City who~shall safely keep the same until they shall be sold by the said City Council, whereupon he shall deliver them to the purchaser or purchasers thereof, on receipt of the purchase price. Said Mayor, Treasur~ and City Clerk are further authorized and directed to make, execute and deliver to the purchaser of said bonds a signature and no-litigation certificate in the form usually required by purchasers of municipal bonds generally, certifying to the genuineness and due execution of said bonds and further certifying to all facts within their knowledge relative to any litigation which may or might affect said City, said officers or said bonds, and Said Treasurer is further authoriz- ed and directed to make, execute and deliver to the purchaser of said bonds a Treasurer's receipt in the form usually required by purchasers of municipal bonds, evidencing the payment of the purchase price of said bonds, which receipt shall be conclusive evidence that said purchase price has been paid and has been received by said City. Any purchaser or subsequent taker or holder of said bonds is hereby authorized to r~ly upon and shall be justified in relying upon any such signature and no-litigation certificate and Treasurer's receipt with respect to said bonds execut- ed pursuant to the authority of this resolution. Section &. All of said Series C bonds shall be offered for public sale by the City Council of the City of South San Francisco on the 16th day of July, 1951 and the City Clerk is hereby author,- ed and directed to cause notice of the sale of said bonds to be published once in "THE ENT~ERPP/SE- S~!TH SAN FRANCISCO JOURNAL", the official newspaper of~said City, and such notice shall be substantially in the following form, to-wit: OFFICIAL NOTICE OF SALE City of South San Francisco Sewage Disposal Bonds-19Ag, Series C NOTICE IS HEREBY GIV~2J that sealed proposals will be received by the City Council of the City of South San Francisco, State of California, in the council chamber of said City Council in the city hall, at Grand Avenue and Maple Avenue, South San Francisco, California, on Monday, the 16th day of July, 1951, at the hour of 8 o'clock p.m. (C.D.S.T.) for the p~rchase of ~500,OOO principal amount of bonds of said city designated "City of South San Francisco Sewage Disposal Bonds-19Ag, Series C", more particularly described below. Series C bonds are part of an issue of ~1,667,000 aggregate principal amount authorized at an election held in said City of South San Francisco on July 26, 19A9. Heretofore bonds in the principal amount of ~i00,O00, designated Series A, and bonds in the principal amount of $300,000, designated Series B, which are parts of said aggregate principal amount, have been issued and sold by said City. The remaining $767,000, principal amount of said authorized issue may be sold when and as determined by the City Council of said City, but will not be sold prior to the 1st day of November, 1951. ISSUE: $500,000 consisting of 5OObonds of the denomination of $1,O00 each, numbered C1 to C500, in- clusive, all dated June 15, 1951, and designated Series C. ~AT~RITIES: Said bonds mature serially in consecutive numerical order from lower'to higher, $15,000.OO principal amount en the 15th day of June in each of the years 1952 to 1976, both inclusive, and $25,000.00 principal amount on the 15th day of June in each of the years 1977 to 1981, both inclusive. INTF~EST RATE: Maximbm five percent (5%) ~er annum, payable semi-annually'June 15 and December 15, of each year. Bidders must specify the rate of interest which the bonds hereby offered for sale shall bear. Bidders will be permitted to bid different rates of interest and to aplit~rates irrespective of the maturit- ies of said bonds. The interest rate stated in the bid must be in multiple of one-quarter of one percent per annum, payable semi-annually. Both principle and interest shall be payable in lawful money of the United States at the office of T~ said City, in South San Francisco, California. REGISTRATION: Coupon bonds will be issued by the city. Such bonds are registered only as toboth principal and interest. Purpose O__F ISLE: Said bonds are authorized by vote of two-thirds of the qualifiedvoters at a special election for the purpose of authorizing bonds for the acquisition, construction, and completion of a sewage dispmma] system Zer said city. SECURITY: Said bonds are general obligations of the City of South San Francisco, and said City has power a~ is obligated to levy ad valorem taxes for the payment of said bonds and the interest thereon upon all property within the City of South San Francisco subject to taxation by said city (except certain intangible personal property, which is taxable at limited rates), without limitation for rate or amount. T_~ ~ STA~;S: In the event that, prior to the delivery of the bonds, the income received by private holders from bonds of the same type and character shall be declared to be taxable under Federal Income Tax Laws, either by the terms of such laws or by ruling of a Federal Income Tax authority or official whic~ is followed by the Bureau of Internal Revenue or by decision of any Federal Court, the successful bidder may, at his own option, prior to the tender of said bonds by the city, be relieved~Trcm his obligation under the contract to purchase the bonds and in such case the deposit accompanying his bond will be returned. LEGAL OPINION: The legal opinion of Messrs. Orrick, Dahlquist, Neff & Herrington, of San Francisco, California, approving the validity of said bonds will be furnished to the successful bidder ,ithout charge. Hi~hest Bids The bonds will be awarded to the highest and best bidder considering the interest rate or rates specified and the premium offered, if any. The highest bid will be determined by de- ducting 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 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 lowest net interest cost shall be computed between the dates aforesaid according to thirty-day month standard four decimal municipal bond interest tables. The purchaser must pay accrued interest from the date of the bonds to the date of delivery. The cost of printing the bonds will be borne by the City. Right o_~fReJection: The City of South San Francisco reserves the right~ in its discretion, to reject any and all bids and to waive any irregularit~r informality in any bid. Prompt Award: The City Council of the City of South ~an Francisco will take action awarding the bonds or rejecting all bids not later than twenty-four (2~) hours after the expiration of the time herein prescribed for the receipt of proposals; provided that the award may be made after they expiration of the specified time if the bidder shall not have given the City Council notice in Writing of the withdrawal of such proposal. Prompt Delivery: Delivery of said bonds will be made to the successful bidder at the office of the City Treasurer in South San Francisco, California, as soon as the bends canbe prepared, which it is estimated will be about August 15, 1951. Right of Cancellation: The successful bidder shall have the right, at his option, to cancel the contract of purchase, if the City shall fail to tender the bonds for delivery on or before September 15, 1951, and in such event, the successful bidder shall be entitled to the return of the deposit accompanying his bid. ~o.rm o_~fB~d: All bids must be unconditional; for not less than all of the bonds hereby offered for sale; and for not less than the par value thereof and accrued interest to date of delivery. Suchbids, together with bidder's check, must be enclosed in a sealed envelope addressed to the City Council of the City of South San Francisco and endorsed "Proposal for City of South San Francisco Sewage Disposal!Bonds-19&9, Series C". Bid Check: ~ith each bid must be submitted a certified check or cashier's check for $10,0OO, drawn on a bank or trust company transacting business in the State of California, payable to the order of the City Treasurer of the City of $outh~San Francisco to secure the City from any loss resulting from the failure of the bidder to comply with the terms of his bid. In addition bidders are requested (but not required) to supply an estimate of the total net interest cost to the City on the basis of their respective bids, which shall be considered as informative only and not binding on eith~ the bidder or the City. Checks of the unsuccessful bidders will be returned by the City bymail upon the award of the bonds. No interest will be paid upon the deposit made by the successful bidder. FINANCIAL STAT~IENT: Further information relative to the financial condition of the'City of South San Francisco will be furnished to any bidder upon request. Dated: July 2, 1951 DASqEL J.. HYLAND City Clerk'of the City of South San Francisco, California Section 5. This resolution shall take effect from and after its passage and approval. Passed and adopted this 2nd day of July, 1951, by ~the following vote: Ayes, Councilmen Victor Boido, Charles K. Elder, AdOlph Sani, Joseph Bracco, Emilio Cortesi Noes, Councilmen None Absent, Councilmen None Adolph Sani Mayor of the City of South San Francisco, California Attest: Daniel J. Hyland City Clerk Presented to and approved by me this 3rd day of July 1951. Adolph Sani Nayor of the City of South San Francisco, California