HomeMy WebLinkAboutResolution No. 4826RESOLUTION NO. 4826
RESOLUTION AUTHORIZING ISSUANCE OF BONDS IN THE
AMOUNT OF $107,409.69, AMENDING RESOLUTION OF
INTENTION IN THE MATTER OF THE TERM OF SAID BONDS,
FIXING DATE OF BONDS AND DIRECTING PUBLICATION
OF OFFICIAL NOTICE INVITING BIDS FOR PURCHASE OF
BONDS, EAST SAN RAFAEL DRAINAGE ASSESSMENT NO. 1,
CITY OF SAN RAFAEL, MARIN COUNTY, CALIFORNIA
WHEREAS, on the 3rd day of April, 1972, the City Council
of the City of San Rafael, Marin County, California, levied an
assessment in the amount of $2,611,492.69 in East San Rafael
Drainage Assessment District No. 1, City of San Rafael, Marin
County, California, and authorized the issuance of bonds in the
amount of $2,200,000.00; and
WHEREAS, said City Council finds it necessary and desirable
to authorize the issuance of an additional $107,409.69 in bonds and
desires to set the term of said bonds for a period shorter than
that shown in Resolution of Intention No. 3998, adopted on the 18th
day of January, 1971, as amended, because of current market conditions,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of San Rafael, Marin County, California, as follows:
1. That bonds in the amount of $107,409.69 shall be issued.
2. Said bonds shall be dated October 2, 1974, and shall
bear interest from said date.
3. That the bond clause of Resolution of Intention No. 3998,
as amended, is hereby amended for the purpose of fixing the term of
this issue of bonds only and shall read as follows:
NOTICE IS HEREBY GIVEN that serial bonds to
represent unpaid assessments, and bearing
interest at the rate of not to exceed seven
per cent (7%) 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.
-1-
3 ',a
The City Clerk of the City of San Rafael is hereby
authorized and directed to set forth said amended bond clause
in the Official Notice Inviting Bids for purchase of said bonds.
4. 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 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.
5. That said Notice shall be published once.
6. That the amortization schedule of said bonds shall be as
set forth in "EXHIBIT A" attached hereto.
F.7
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, Mi sk i men , Mu l ryan and Mayor Bett i n i
NOES: Councilmen Nnne
ABSENT: Councilmen
MARION A. GRADY, City Clerk,
City of San Rafael, Marin County,
California
WZ
OFFICIAL NOTICE INVITING BIDS FOR THE PURCHASE
OF BONDS, EAST SAN RAFAEL DRAINAGE ASSESSMENT
DISTRICT NO. 1, CITY OF SAN RAFAEL, MARIN COUNTY,
CALIFORNIA, UNDER THE PROVISIONS OF THE MUNICIPAL
IMPROVEMENT ACT OF 1913 AND THE 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
September, 1974, for the purchase of $107,409.69 principal amount
of bonds for East San Rafael Drainage Assessment District No. 1,
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. 3998, as amended, of the City Council of the City of
San Rafael, adopted on the 18th day of January, 1971, and proceedings
subsequent thereto. The Resolution of Intention, as amended on
the 3rd day of September, 1974, provides with relation to said bonds
as follows:
NOTICE IS HEREBY GIVEN that serial bonds to repre-
sent unpaid assessments, and bearing interest at the
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 amount of $107,409.69. 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:
-1-
�
Bond Numbers
Maturity
Date
Total Amount
Inclusive
of Bonds
Maturing
1 -
4
July 2,
1976 $
8,409.69
5 -
8
July 2,
1977
8,000.00
9 -
11
July 2,
1978
7,000.00
12 -
14
July 2,
1979
7,000.00
15 -
17
July 2,
1980
7,000.00
18 -
20
July 2,
1981
7,000.00
21 -
23
July 2,
1982
7,000.00
24 -
26
July 2,
1983
7,000.00
27 -
29
July 2,
1984
7,000.00
30 -
32
July 2,
1985
7,000.00
33 -
35
July 2,
1986
7,000.00
36 -
38
July 2,
1987
7,000.00
39 -
41
July 2,
1988
7,000.00
42 -
44
July 2,
1989
7,000.00
45 -
47
July 2,
1990
7,000.00
TOTAL
$
107,409.69
NOTE: Bond
No. 1 is in
the amount of $1,409.69.
Also in the first
year,
the second
and third
bonds are in $1,000.00 denominations
and there
will be
one $5,000.00 bond. In
the second year, the
first
three bonds
are in $1,000.00 denominations with one
$5,000.00
bond.
In all subsequent years,
the first two bonds
each
year are in
$1,000.00
denominations with one $5,000.00
bond.
DATE OF BONDS AND INTEREST RATE: Bonds are to be dated
the 2nd day of October, 1974, and will bear interest from said date.
Interest rate is fixed in the Resolution of Intention, as amended, 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 October 2, 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 County,
California, by Resolution of Intention No. 3998, as amended, and
-2-
proceedings subsequent thereto. The purpose is for the construction
of improvements and acquisition of properties. These improvements
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 completion of said assess-
ment 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 (5%) of the principal
amount.
AUTHORITY FOR ISSUANCE: Said bonds were authorized to
be issued by the proceedings in said assessment district and said
assessment district was organized and consummated under the pro-
visions 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
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 in the same manner as real property
is sold for delinquent taxes. It is the duty of the City of
-3-
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 104! 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
10� on each $100.00 of assessed valuation. The 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 princi-
pal and interest accruing in any one year of the bond issue if a ten
cent UM 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 (7%). The interest payable on any interest payment
date may, however, be represented by one or more coupons.
QM
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, City of San
Rafael, Marin County, California."
-5-
BID CHECK: With each bid must be submitted a certified
check or cashier's check for $2,500.00 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 success-
ful 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 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