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HomeMy WebLinkAboutResolution No. 4825RESOLUTION NO. 4825 FIXING DATE OF BONDS AND DIRECTING PUBLICATION OF OFFICIAL NOTICE INVITING BIDS FOR PURCHASE OF BONDS, EAST SAN RAFAEL DRAINAGE ASSESSMENT DISTRICT NO. 1, SUPPLEMENTAL ASSESS- MENT, 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 in East San Rafael Drainage Assessment District No. 1, Supplemental Assessment, City of San Rafael, Marin County, California, 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 4th day of November, 1974, and shall bear interest from said date; and BE IT FURTHER RESOLVED that the City Clerk is hereby auth- orized 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 16th day of September, 1974, in the office of the City Clerk of the City of San Rafael, Marin County, California, at which said time and place said proposals will be publicly opened, examined and declared; and once; and BE IT FURTHER RESOLVED that said Notice shall be published BE IT FURTHER RESOLVED that the amortization schedule of said bonds be as set forth in "EXHIBIT A" attached hereto. -1- U^ � m N, 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 3rd day of September, 1974, by the following vote, to wit: AYES: Councilmen Jensen, Miskimen, MLjlryan and Maar Bei:l:ini NOES: Councilmen None ABSENT: Councilmen Nixon MARION A. GRADY, City Clerk, City of San Rafael, Marin County, California -2- OFFICIAL NOTICE INVITING BIDS FOR THE PURCHASE OF BONDS, EAST SAN RAFAEL DRAINAGE ASSESSMENT DISTRICT NO. 1, SUPPLEMENTAL ASSESSMENT, 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 16th day of September, 1974, for the purchase of an estimated $288,001.07 princi- pal amount of bonds for East San Rafael Drainage Assessment District No. 1, Supplemental Assessment, 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 assessments are authorized to be levied, under the provisions of Resolution of Intention No. 4796 of the City Council of the City of San Rafael adopted on the 5th day of August, 1974, and proceedings subsequent thereto. The Resolution of Intention 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 seven per cent (70) per annum shall be issued herein in the manner provided in Division 10 of the Streets and Highways Code, the Improvement Bond Act of 1915, the last installment of which 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 $288,001.07. All bidders, however, by sub- mission 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 recordation of the assessment. The estimated -1- i `' maturity schedule of the bonds will be as follows: Maturity Date Total Amount of Bonds Maturing July 2, 1976 $ 8,001.07 July 2, 1977 20,000.00 July 2, 1978 20,000.00 July 2, 1979 20,000.00 July 2, 1980 20,000.00 July 2, 1981 20,000.00 July 2, 1982 20,000.00 July 2, 1983 20,000.00 July 2, 1984 20,000.00 July 2, 1985 20,000.00 July 2, 1986 20,000.00 July 2, 1987 20,000.00 July 2, 1988 20,000.00 July 2, 1989 20,000.00 July 2, 1990 20,000.00 TOTAL $ 288,001.07 NOTE: In the first year, Bond No. 1 is in the amount of $1,001.07. There will be two $1,000 bonds in addition and one $5,000.00 bond. In all other years, the first five bonds maturing each year are in $1,000 denominations and all other bonds are in $5,000 denominations. DATE OF BONDS AND INTEREST RATE: Bonds are to be dated the 4th day of November, 1974, and will bear interest from said date. Interest rate is fixed in the Resolution of Intention at not to exceed seven per cent (70) per annum. Such interest shall be evidenced by coupons attached to each bond, and each of said coupons shall represent six months' interest on the bond to which it is attached. The first coupon will be for interest from November 4, 1974, 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 -2- County, California, by Resolution of Intention No. 4796 and proceed- ings subsequent thereto. The purpose of the supplemental assessment is to provide for the additional costs and expenses in connection with the acquisitior of real property in said assessment district. These acquisitions are within the boundaries of the assessment district designated, "East San Rafael Drainage Assessment District No. 1, City of San Rafael, Marin County, California," and reference for details is made to the proceedings for the formation and com- pletion of said assessment district. PAYMENT: Both principal and interest are payable in lawful money of the United States at the office of the County Treasurer of the County of Marin, 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 (50) 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 assessments as they fall due is sold for delinquencies by the City -3- 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 sale. It then becomes the duty of the City to transfer to the Redemption Fund the amount of the purchase. In the event there is not sufficient money in the General Fund to transfer this amount into the Redemption Fund, it becomes the mandatory duty of the City to levy a tax up to 10� 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, throughout 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 10� on each $100.00 of assessed valuation. The estimated assessed valuation of all taxable property in the City of San Rafael for the fiscal year 1973-1974 is $176,494,140.00. Ten cents on the $100.00 would therefore raise, in the City of San Rafael, the sum of $176,494.00, 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 (10�) levy should be necessary. LEGAL OPINION: The legal opinion of the law firm of Sturgis, Den -bulk, 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 inheri- tance, gift and franchise taxes. HIGHEST BID: The interest rate for all bonds shall be seven per cent (70). The interest payable on any interest payment date may, however, be represented by one or more coupons. -4- 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 awarding 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. Successful 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 purchase 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 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. 1, Supplemental Assessment, City of San Rafael, Marin County, California." -5- BID CHECK: With each bid must be submitted a certified check or cashier's check for $5,000 drawn on a bank or trust company 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 successful 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 controversy or litigation pending or threatened concerning the validity of the bonds. DATED: September 3, 1974 MARION A. GRADY, City Clerk, City of San Rafael, Marin County, California Q�