HomeMy WebLinkAboutCC Resolution 4423RESOLUTION NO. 4423
RESOLUTION FIXING DATE OF BONDS AND DIRECTING PUBLICATION
OF OFFICIAL NOTICE INVITING BIDS FOR PURCHASE OF BONDS,
LUCAS VALLEY OPEN SPACE ASSESSMENT DISTRICT, CITY OF
SAN RAFAEL, MARIN COUNTY, CALIFORNIA
WHEREAS, the period of collection of assessments in Lucas
Valley Open Space Assessment District, City of San Rafael, Marin
County, California, has terminated; and
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, -sarin County, California, that bonds
issued in said proceedings shall be dated the 2nd day of May,
1973, and shall bear interest from said date; and
BE IT FURTHER RESOLVED that the City Clerk is hereby
authorized 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 April, 1973, in the office of
the City Clerk of the City of San Rafael, City Hall, 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 t�vo (2) consecutive weeks.; and
BE IT FURTHER RESOLVED that the amortization schedule of
said bonds be as set forth in "EXHIBIT A" attached hereto.
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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
2nd day of April, 1973, by the following vote, to wit:
AYES: Councilmen : Jensen, Mi skimen, Mul ryan and Mayor Bett in i
NOES: Councilmen : None
ABSENT: Councilmen None
MARION A. GRADY, City Clerk,
City of San Rafael, Marin County,
California
<'�u-r'"� C-' • � "`fir" "
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I
OFFICIAL NOTICE INVITING BIDS FOR THE PUPCHASE OF BONDS,
LUCAS VALLEY OPEN SPACE ASSESSP-1ENT DISTRICT, CITY OF SAN
RAFAEL, PIARIN COUNTY, CALIFORNIA, UNDER THE PROVISIONS OF
THE MUNICIPAL IMPROVEMENT ACT OF 1913 AND TME IMPROVEMENT
BOND ACT OF 1915
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 April, 1973,
for the purchase of $217,392.97 principal amount of bonds for Lucas
Valley Open Space Assessment District, 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 Resolu-
tion of Intention No. 4352, of the City Council of the City of San
Rafael, adopted on the 18th day of December, 1.972, and proceedings
subsequent thereto. The Resolution of Intention provides with rela-
tion 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 (7g) per annum shall be issued
herein_ in the manner provided by Division 10 of the Streets
and Hichways Code, the Imnrovement Bond Act of 1915,
the last installment of which bonds shall mature
twenty-four (24) years from the 2nd day of July next
succeeding ten (10) months from their date.
PLEASE SEE MATURITY SCHEDULE FOR MAXIMUM INTEREST RATES.
MATURITIES AND AMOUNT OF BONDS: Said bonds will be in
the amount of $217,392.97. All bidders, by submission of a bid,
agree to purchase the total amount of bonds to be issued. The
maturity schedule on the bonds will be as follows:
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Bond
Numbers
Maturity Date
Total Amount
Inclusive
of
Bonds
Maturing
Interest Rate
1
to
2
July
2,
1974
$ 2,392.97
Not
to
exceed
5.00%
3
to
6
July
2,
1975
4,000.00
Not
to
exceed
5.00%
7
to
11
July
2,
1976
5,000.00
Not
to
exceed
5.00%
12
to
16
July
2,
1977
5,000.00
Not
to
exceed
5.00%
17
to
21
July
2,
1978
5,000.00
Not
to
exceed
5.00%
22
to
27
July
2,
1979
6,000.00
Not
to
exceed
5.00%
28
to
33
July
2,
1980
6,000.00
Not
to
exceed
5.00%
34
to
39
July
2,
1981
6,000.00
Not
to
exceed
5.00%
40
to
46
July
2,
1982
7,000.00
Not
to
exceed
5.00%
47
to
53
July
2,
1983
7,000.00
Not
to
exceed
5.00%
54
to
59
July
2,
1984
6,000.00
Not
to
exceed
6.00%
60
to
65
July
2,
1985
6,000.00
Not
to
exceed
6.00%
66
to
71
July
2,
1986
6,000.00
Not
to
exceed
6.00%
72
to
80
July
2,
1987
9,000.00
Not
to
exceed
6.00%
81
to
89
July
2,
1988
9,000.00
Not
to
exceed
6.00%
90
to
99
July
2,
1989
10,000.00
Not
to
exceed
6.00%
100
to
109
July
2,
1990
10,000.00
Not
to
exceed
6.00%
110
to
120
July
2,
1991
11,000.00
Not
to
exceed
6.00%
121
to
130
July
2,
1992
10,000.00
Not
to
exceed
6.00%
131
to
141
July
2,
1993
11,000.00
Not
to
exceed
6.00%
142
to
153
July
2,
1994
12,000.00
Not
to
exceed
6.00%
154
to
166
July
2,
1995
13,000.00
Not
to
exceed
6.00%
167
to
181
July
2,
1996
15,000.00
Not
to
exceed
6.00%
182
to
198
July
2,
1997
17,000.00
Not
to
exceed
6.00%
199
to
217
July
2,
1998
1.9,000.00
Not
to
exceed
6.00%
217,392.97
Note:
All bonds are in
the denomination of $1,000.00, except Bond
No. 1,
which is
in
the amount
of $1,392.97.
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DATE OF BONDS AND INTEREST RATE: Bonds are to be dated
the 2nd day of May, 1973, and will bear interest from said date.
Interest rates are fixed AT RATES NOT TO EXCEED THOSE SHOWN IN
THE MATURITY SCHEDULE AS HEREINABOVE SET FORTH. 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 May
2, 1973, to January 2, 1974.
PURPOSE OF ISSUE: Said bonds are authorized to be issued
by the City Council of the City of San Rafael, Marin County, Cali-
fornia, by Resolution of Intention No. 4352, and proceedings sub-
sequent thereto. The purpose is for the construction of improvements
and acquisitions. These improvements are within the boundaries
of the assessment district designated, "Lucas Valley Open Space
Assessment District, City of San Rafael, Marin County, California,"
and reference for details is made to the proceedings for the forma-
tion and completion of said assessment district.
PAYMENT: Both principal and interest are payable in
lawful money of the United States at the office of the Marin County
Treasurer, Civic Center Building, San Rafael, California.
CALLABLE B014DS: 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
=CIE
and said assessment 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 assess-
ments within the boundaries of said district. Said bonds are fur-
ther secured bit 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 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 boun-
daries 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 delin-
quencies. The maximum levy which the City is obligated to make
in any one year is 10e` 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 1972/73 is $165,884,749.00. Ten cents
on the $100.00 would therefore raise, in the City of San Rafael,
the sum of $165,884.75, 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 UM levy should
be necessary.
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LEGAL OPINION: The legal opinion of the law firm of
Sturgis, Den -bulk, Douglass & Anderson, 1322 Webster Street, Oak-
land, 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. Counsel advises that the legal
opinion will contain the following statement:
"Chapter 1406 of Statutes, 1972, of the California
Legislature, placing a limitation on property tax levies of local
agencies, may affect the ability of the City to levy a ten -cent
tax as an override tax pursuant to the provisions of Section 8809
of the Streets and Highways Code. The effect of said Chapter on
the override tax has not yet been litigated."
HIGHEST BID•
Bidders are requested to name the inter-
est rate or rates not exceeding THOSE SHOWN IN THE MATURITY SCHEDULE
AS HEREINABOVE SET FORTH in multiples of 1/8 or 1/20 of one per
cent (lo.) 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 cent (1-1/20) higher than the lowest
rate named in the bid. The interest 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
pfrom 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
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as part of the purchase price. No bid of less than 96% 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 in-
terest 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. Any bid must be in
strict conformity with this Official Notice Inviting Bids, and
without any qualification.
PROMPT AWARD: The City of San Rafael will take action
awarding the bonds or rejecting all bids not later than forty-
eight 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 of
the City -of San Rafael, City Hall, 1400 Fifth Avenue, San Rafael, Cali-
fornia, 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.
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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, Lucas Valley Open Space Assessment District, City of
San Rafael, Marin County, California."
BID CHECK: With each bid must be submitted a certified
check or cashier's check for $3,000.00 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 for-
feited to City if the bidder fails to pay for and take delivery
of the bonds within the time provided for in this notice as liqui-
dated 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: April 2, 1973
MARION A. GRADY, City Clerk,
City of San Rafael, Marin County,
California
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