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HomeMy WebLinkAboutResolution No. 4910RESOLUTION NO. 4910 RESOLUTION FIXING DATE OF BONDS AND DIRECTING PUBLICATION OF OFFICIAL NOTICE INVITING BIDS FOR PURCHASE OF BONDS, EAST SAN RAFAEL DRAINAGE ASSESSMENT DISTRICT NO. 2, CITY OF SAN RAFAEL, MARIN COUNTY, CALIFORNIA WHEREAS, it is necessary to fix the date of bonds to be issued and authorize sale of bonds which will be issued to represent unpaid assessments; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Rafael, Marin County, California, that bonds issued in said proceedings shall be dated the 2nd day of May 1975, and shall bear interest from said date; and BE IT FURTHER RESOLVED that the City Clerk is hereby author- ized to publish Official Notice Inviting Bids for the purchase of bonds, which Notice is attached hereto, marked "EXHIBIT A" and made a part hereof, said bids to be received at the hour of 2:00 o'clock P.M. on the 24th day of February 1975, in the office of the City Clerk of the City of San Rafael, 1400 Fifth Avenue, San Rafael, California, at which said time and place said proposals will be publicly opened, examined and declared; and BE IT FURTHER RESOLVED that said Notice shall be published twice, once a week for two (2) consecutive weeks; and BE IT FURTHER RESOLVED that the amortization schedule for said bonds shall be as set forth in "EXHIBIT A" attached hereto. I HEREBY CERTIFY that the foregoing resolution was duly and regularly adopted by the City Council of the City of San Rafael, Marin County, California, at a regular meeting thereof, held on the 20th day of January, 1975, by the following vote, to wit: AYES: Councilmen Jensen. Miskimen and Mulryan NOES: Councilmen None ABSENT : Councilmen Nixon and Mayor Bett i n i MARION A. GRADY, City Clerk, City of San Rafael, Marin County, California OFFICIAL NOTICE INVITING BIDS FOR THE PURCHASE OF BONDS, EAST SAN RAFAEL DRAINAGE ASSESSMENT DISTRICT NO. 2, CITY OF SAN RAFAEL, MARIN COUNTY, CALIFORNIA NOTICE IS HEREBY GIVEN that sealed proposals will be received by the City Clerk of the City of San Rafael, Marin County, California, located in the City Hall, 1400 Fifth Avenue, San Rafael, California, at the hour of 2:00 o' clock P.M. on the 24th day of February 1975, , for the purchase of an estimated $472,826.89 principal amount of bonds for East San Rafael Drainage Assessment District No. 2, City of San Rafael, Marin County, California. Said bids will be publicly opened, examined and declared at said time and place. These bonds are authorized to be issued, and the assess- ments are authorized to be levied, under the provisions of Resolution of Intention No. 4509 of the City Council of the City of San Rafael, adopted on the 18th day of June, 1973, as later amended, and proceed- ings subsequent thereto. The Resolution of Intention, as amended, provides with relation to said bonds as follows: NOTICE IS HEREBY GIVEN that serial bonds to represent unpaid assessments and bearing interest at a rate of not to exceed eight per cent (8%) per annum shall be issued herein in the manner provided by Division 10 of the Streets and High- ways Code, the Improvement Bond Act of 1915, the last install- ment of which bonds shall mature fourteen (14) years from the 2nd day of July next succeeding ten (10) months from their date. MATURITIES AND AMOUNT OF BONDS: Said bonds will be in the estimated amount of $472,826.89. All bidders, however, by submission of a bid, agree to purchase the total amount of bonds -that may be issued. Bids will be calculated and award will be made on the basis of the following maturities regardless of the exact amount of the bond issue. The exact amount of the issue will be determined by subtracting from the estimated amounts stated herein the amount of assessments paid in cash during the thirty (30) day cash payment period following recorda- tion of the assessment. The estimated maturity schedule on the bonds will be as follows: -1- ESTIMATED MATURITY SCHEDULE Bonds Maturing Amount July 2 Maturing July 2, 1976 $ 5,826.89 July 2, 1977 10,000.00 July 2, 1978 25,000.00 July 2, 1979 36,000.00 July 2, 1980 36,000.00 July 2, 1981 36,000.00 July 2, 1982 36,000.00 July 2, 1983 36,000.00 July 2, 1984 36,000.00 July 2,-1985 36,000.00 July 2, 1986 36,000.00 July 2, 1987 36,000.00 July 2, 1988 36,000.00 July 2, 1989 36,000.00 July 2, 1990 36,000.00 TOTAL $ 472,826.89 Note: It is estimated that there will be approximately five $1,000 bonds maturing each year, with the balance of the bonds in $5,000 denominations. DATE OF BONDS AND INTEREST RATE: Bonds are to be dated the 2nd day of May 1975, and will bear interest from said date. Interest rate is fixed in the Resolution of Intention, as amended, at not to exceed eight per cent (8%) per annum. Such interest shall be evidenced by coupons attached to each bond, and each of said cou- pons shall represent six months' interest on the bond to which it is attached. The first coupon will be for interest from. May 2, 1975 to January 2, 1976. PURPOSE OF ISSUE: Said bonds are authorized to be issued by the City Council of the City of San Rafael, Marin County,'California, -2- by Resolution of Intention No. 4509, as amended, and proceedings sub- sequent thereto. The purpose is for the construction of a storm drain- age pumping station, the construction of a ponding area and the acquisition of necessary interests in real property required for said work. These improvements are within the boundaries of the assess- ment district designated, "East San Rafael Drainage Assessment District No. 2, City of San Rafael, Marin County, California," and reference for details is made to the proceedings for the formation and comple- tion of said assessment district. PAYMENT: Both principal and interest are payable in law- ful money of the United States at the office of the County Treasurer, Marin County, Civic Center, San Rafael, California. CALLABLE BONDS: All bonds are callable pursuant to the provisions of the Improvement Bond Act of 1915 twice each year. No bonds may be called except on July 2 or January 2 and there must be a sixty day notice of call. Any bond called will have interest to date of call and a premium of five per cent (5%) of the principal amount. AUTHORITY FOR ISSUANCE: Said bonds were authorized to be issued by the proceedings in said assessment district and said assess- ment district was organized and consummated under the provisions of the Municipal Improvement Act of 1913 and bonds provided to be issued under the Improvement Bond Act of 1915 of the State of California. SECURITY: Said bonds are payable from the redemption fund provided by law which is secured by all of the unpaid assessments within the boundaries of said district. Said bonds are further secured by a limited guarantee on the part of the entity which issued said bonds. Under the provisions of the Improvement Bond Act of 1915, any real property on which the owners have failed to pay installments of assess- ments as they fall due is sold for delinquencies by the City in the same manner as real property is sold for delinquent taxes. It is the duty of the City of San Rafael to bid such property in at such tax -3- sale. It then becomes the duty of the City to transfer to the Redemp- tion Fund the amount of the purchase. In the event there is not suffi- cient money in the General Fund to transfer this amount into the Redemp- tion Fund, it becomes the mandatory duty of the City to levy a tax up to 101� on each $100.00 of assessed valuation of property within the boundaries of the City of San Rafael sufficient in amount to pay for the delinquencies. It becomes the continuing duty of the City, through- out the life of the bond issue, to levy such a tax and to pay for the installments upon property sold to the City for delinquencies.. The maximum levy which the City is obligated to make in any one year is 104� on each $100.00 of assessed valuation. The assessed valuation of all taxable real property in the City of San Rafael for the fiscal year 1974-75 is $225,889,062.00. Ten cents on the $100.00 would there- fore raise, in the City of San Rafael, the sum of $225,889.00. which is more than sufficient to cover the maximum amount of principal and interest accruing in any one year of the bond issue if a ten cent (1W levy should be necessary. LEGAL OPINION: The legal opinion of the law firm of Sturgis, Den-Dulk, Douglass & Anderson, 1322 Webster Street, Oakland, California, 94612, approving the validity of said bonds will be furnished to the successful bidder without charge. In the opinion of Counsel, interest on the bonds is exempt from all federal income taxes, and from State of California personal income taxes, under presently existing statutes, regulations and court decisions, and the bonds are also exempt from all California taxes except inheritance, gift and franchise taxes. HIGHEST BID: Bidders are requested to name the interest rate or rates not exceeding eight per cent (8%) per annum in multi- ples of 1/8 or 1/20 of one per cent (1%). Each bidder must specify in his bid the amount and maturities of the bonds of each rate and all bonds maturing on the same date must bear interest at the same rate. No bid may name more than four interest rates, any of which may be repeated. No rate may be more than one and one-half per -4- cent (1-1/2%) higher than the lowest rate named in the bid. The inter- est payable on any bond on any interest payment date may, however, be represented by one or more coupons. A zero rate cannot be named for all or any of the time from the date of the bond to its stated maturity and the premium, if any, must be paid in the funds specified for payment of the bonds as part of the purchase price. No bid of less than 93% of par and accrued interest or for less than all of the bonds offered will be entertained. Unless all bids are rejected, the bonds will be awarded to the bidder whose proposal results in the lowest net interest cost to the issuer, and the net interest cost will be determined by deducting the amount of any premium paid from or adding the amount of any discount to the aggregate amount of interest upon all of the bonds from their date until their respective maturities. RIGHT OF REJECTION: The City of San Rafael reserves the right at its discretion to reject any and all bids and to waive any irregularity or informality in any bid. PROMPT AWARD: The City of San Rafael will take action award- ing the bonds or rejecting all bids not later than forty-eight (48) hours after expiration of the time herein prescribed for the receipt of proposals. PROMPT DELIVERY: Delivery of the bonds will be made to the successful bidder at the office of the City Treasurer, City Hall, 1400 Fifth Avenue, San Rafael, California, as soon as the bonds can be prepared, but not earlier than the date of said bonds. Success- ful bidder, by making a bid, agrees to pay for and take delivery of the bonds within forty-eight (48) hours after notification by City that the bonds are ready for delivery, but bidder is not obligated to take delivery earlier than the date of the bonds. The successful bidder shall have the right at his option to cancel his offer to pur- chase if the bonds are not tendered for delivery within 45 days from the date of the bonds. FORM OF BID: All bids must be for not less than all of -5- the bonds herein offered for sale. Each bid, together with bidder's check, must be enclosed in a sealed envelope addressed to the City Clerk of the City of San Rafael, and endorsed "Proposal for Bonds, East San Rafael Drainage Assessment District No. 2, City of San Rafael, Marin County, California." BID CHECK: With each bid must be submitted a certified check or cashier's check for $10,000.00, drawn on a bank or trust com- pany transacting business in the State of California, payable to the order of the City of San Rafael to secure the City of San Rafael from any loss resulting from the failure of the bidder to comply with the terms of his bid. Check of the unsuccessful bidders will be returned by mail upon the award of the bonds. Check of successful bidder will be credited upon the purchase price of the bonds, and no interest will be paid upon the deposit of any successful bidder. Check of the suc- cessful bidder will be forfeited to City if the bidder fails to pay for and take delivery of the bonds within the time provided for in this notice as liquidated damages. NO LITIGATION CERTIFICATE: The City of San Rafael will furnish to the successful bidder, at the time of the delivery of the bonds, a no -litigation certificate, certifying that there is no contro- versy or litigation pending or threatened concerning the validity of the bonds. DATED: January 20, 1975. MARION A. GRADY, City Clerk, City of San Rafael, Marin County, California -6-