Resolution No. 899505
RESOLUTION NO. 899
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS,
CALIFORNIA, DIRECTING THE CITY CLERK TO PUBLISH NOTICE
INVITING SEALED PROPOSALS FOR BONDS OF SAID CITY.
WHEREAS, an ordinance providing for the issuance of bonds of the
City of Cypress, California, in the amount of $900,000 to be designated
"City of Cypress 1968 Drainage Bonds," has been introduced; and
WHEREAS, it is desirable that said bonds be sold;
NOW, THEREFORE, the City Council of the City of Cypress, California,
DOES HEREBY RESOLVE, DETERMINE AND ORDER as follows:
Section 1. That said bonds be sold and that sealed bids or proposals
for the purchase of said bonds be received up to the time stated in the
notice hereinafter set forth.
Section 2. That the City Clerk be and is hereby authorized and
directed to publish said notice once in the Los Alamitos -Cypress News
Enterprise, a newspaper of general circulation, said publication to be
at least seven days prior to the date for receiving bids.
Section 3. That the City Clerk is hereby authorized and directed to
cause to be furnished to prospective bidders copies of the notice
inviting proposals and information relating to the properties, operations,
and finances of said City, but failure in whole or in part to comply with
this section shall not in any manner affect the validity of the sale.
Section 4. That said notice shall be substantially as follows:
NOTICE INVITING BIDS ON
$900,000 GENERAL OBLIGATION BONDS OF THE
CITY OF CYPRESS, CALIFORNIA
NOTICE IS HEREBY GIVEN that sealed proposals for the purchase of
$900,000 par value general obligation bonds of the
CITY OF CYPRESS
will be received by the City Council of said City at the place and up to
the time below specified:
TIME: 11:00 A.M., October 2, 1968
PLACE:
MAILED BIDS:
Security Pacific National Bank
Room 444
124 West 4th Street
Los Angeles, California
City Clerk, City of Cypress
c/o Security Pacific National Bank
Room 444
124 West 4th Street
Los Angeles, California
OPENING OF BIDS: The bids will be opened at the time and place
hereinbefore designated and shall be presented to the City Council at
the meeting of said City Council to be held October 2, 1968, at 7:30
o'clock P.M. at the City Hall of said City.
ISSUE: $900,000 bonds, all dated October 1, 1968, and designated
"City of Cypress 1968 Drainage Bonds."
DENOMINATIONS AND NUMBERS: The bonds will be all in the denomination
of $5,000 each. The bonds will be 180 in number, numbered 1 to 180, inclu-
sive.
MATURITIES: The bonds will mature in consecutive numerical order on
October 1 in the amounts for each of the several years as follows:
RESOLUTION NO. 899
506
Principal Amount
Year Each Year
1969 $ 10,000
1970 10,000
1971 10,000
1972 10,000
1973 15,000
1974 15,000
1975 20,000
1976 20,000
1977 25,000
1978 25,000
1979 30,000
1980 30,000
1981 35,000
1982 35,000
1983 40,000
1984 40,000
1985 45,000
1986 45,000
1987 45,000
1988 50,000
1989 50,000
1990 55,000
1991 55,000
1992 60,000
1993 60,000
1994 65,000
INTEREST: The bonds shall bear interest at a rate or rates to be
fixed upon the sale thereof but not to exceed six per cent (6%) per
annum, payable annually the first year and semiannually thereafter.
PAYMENT: Said bonds and the interest thereon are payable in
lawful money of the United States of America at the main offices of
the Security Pacific National Bank in the Cities of Los Angeles and
San Francisco, California, or at the option of the holder, at any
paying agent of the City in Chicago, Illinois or New York, New York
REGISTRATION: The bonds will be coupon bonds registrable as to
principal only or as to both principal and interest.
CALLABLE: The bonds maturing on or prior to October 1, 1985, shall
not be subject to call or redemption prior to maturity. The bonds
maturing on or after October 1, 1986, or any of them, may be called
before maturity and redeemed at the option of the City on October 1, 1985,
or on any interest payment date thereafter prior to maturity at a
redemption price for each redeemable bond equal to the principal amount
thereof and accrued interest to the redemption date plus the following
premiums if redeemed at the following times:
On or after
October 1
REDEMPTION DATES
And prior to
October 1
Premium
1985 1986 3%
1986 1987 2-3/4%
1987 1988 2-1/2%
1988 1989 2-1/4%
1989 1990 2%
1990 1991 1-3/4%
1991 1992 1-1/2%
1992 1993 1%
1993 Maturity 1/2%
All or any of the bonds subject to call may be called for redemption at
any one time. If less than all of the bonds are redeemed at any one time,
such bonds shall be redeemed only in inverse order of maturity and number,
beginning with the highest numbered bond.
PURPOSE OF ISSUE: The acquisition and construction of storm drains.
SECURITY: Said bonds are issued pursuant to Article 1, Chapter 4,
507
Division 4, Title 4 (Section 43600 et seq.) of the Government Code of
the State of California, sometimes known as the Municipal Bond Act of
1901. For the purpose of paying the principal and interest of said
bonds, said Act requires that the City Council shall at the time of
fixing the general tax levy, and annually thereafter until said bonds
are paid or until there is a sum in the treasury of said City set apart
for that purpose sufficient to meet all payments of principal and inter-
est on said bonds as they become due, levy and collect a tax sufficient
to pay the interest on said bonds as it falls due and such part of the
principal thereof as will become due before the proceeds of a tax levied
at the next general tax levy will be available. Said tax shall be in
addition to all other taxes levied for municipal purposes and shall be
levied and collected as other City taxes.
TERMS OF SALE
Interest Rate: The maximum rate bid may not exceed 6% per annum,
payable annually the first year and semiannually thereafter. Each rate
bid must be a multiple of 1/20 of 1%. No bond shall bear more than one
interest rate, and all bonds of the same maturity shall bear the same
rate. Only one coupon will be attached to each bond for each installment
of interest thereon, and bids providing for additional or supplemental
coupons will be rejected. The rate on any maturity or group of maturities
shall not be more than 1-1/2% higher than the interest rate on any other
maturity or group of maturities.
Award: The bonds shall be sold for cash only. All bids must be
for not less than all of the bonds hereby offered for sale and each bid
shall state that the bidder offers par and accrued interest to the date
of delivery, the premium, if any, and the interest rate or rates not to
exceed those specified herein, at which the bidder offers to buy said
bonds. Each bidder shall state in his bid the total net interest cost
in dollars and the average net interest rate determined thereby, which
shall be considered informative only and not a part of the bid.
Highest Bidder: The bonds will be awarded to the highest responsible
bidder or bidders considering the interest rate or rates specified and the
premium offered, if any. The highest bid will be determined by deducting
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 thereof 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 purchaser must pay accrued
interest from the date of the bonds to the date of delivery computed on
a 360 -day year basis. The cost of printing the bonds will be borne by
the City.
Right of Rejection: The City reserves the right, in its discretion,
to reject any and all bids and to the extent not prohibited by law to
waive any irregularity or informality in any bid.
Prompt Award: The City will take action awarding the bonds or
rejecting all bids not later than twenty-six (26) hours after the time
herein prescribed for the receipt of proposals; provided that the award
may be made after the expiration of the specified time if the bidder shall
not have given to the City Council notice in writing of the withdrawal of
such proposal.
Place of Delivery: Delivery of said bonds will be made to the
successful bidder at Jeffries Banknote Company, 117 Winston Street, Los
Angeles, California, or at any other place agreeable to both the City
Treasurer and the successful bidder.
Prompt Delivery; Cancellation for Late Delivery: It is expected that
said bonds will be delivered to the successful bidder within 30 days from
the date of sale thereof. The successful bidder shall have the right, at
his option to cancel the contract of purchase if the City shall fail to
execute the bonds and tender them for delivery within 60 days from the
date herein fixed for the receipt of bids, and in such event the success-
ful bidder shall be entitled to the return of the check accompanying his
bid.
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Form of Bid: Each bid, together with the bid check, must be in
a sealed envelope, addressed to the City with the envelope and bid clearly
marked "Proposal for City of Cypress 1968 Drainage Bonds".
Bid Check: A certified or cashier's check on a responsible bank
or trust company in the amount of $10,000 payable to the order of the
City must accompany each proposal as a guarantee that the bidder, if
successful, will accept and pay for said bonds in accordance with the
terms of his bid. The check accompanying any accepted proposal shall be
applied on the purchase price or, if such proposal is accepted but not
performed, unless such failure of performance shall be caused by any act
or omission of the City, shall then be cashed and the proceeds retained
by the City. The check accompanying each unaccepted proposal will be
returned promptly.
Change in Tax Exempt Status: At any time before the bonds are
tendered for delivery, the successful bidder may disaffirm and withdraw
the proposal if the interest received by private holders from bonds of
the same type and character shall be declared to be taxable income
under present federal income tax laws, either by a ruling of the Internal
Revenue Service or by a decision of any federal court, or shall be declared
taxable by the terms of any federal income tax law enacted subsequent
to the date of this notice.
Legal Opinion: The unqualified opinions of Rutan & Tucker, attorneys
for the City, and O'Melveny & Myers, bond counsel, approving the validity
of said bonds will be furnished the successful bidder at or prior to the
date of delivery of the bonds, at the expense of the City. A copy of the
opinion of O'Melveny & Myers, certified by an officer of the City by his
facsimile signature, will be printed on the back of each bond. No charge
will be made to the purchaser for such printing or certification.
No Litigation Certificate: At the time of payment for and delivery
of said bonds, the City will furnish the successful bidder a certificate
that there is no litigation pending affecting the validity of the bonds.
TEMPORARY BONDS: The right is reserved by the issuer to make delivery
of temporary bonds to the extent permitted by law in order to make
immediate delivery of the bonds. Definitive bonds will be issued in place
of temporary bonds within a reasonable time to be agreed upon with the
purchaser (not to exceed 30 days from the date of delivery of the tem-
porary bonds). Temporary bonds shall be issued only to the original
purchaser of the bonds. The form and provisions of temporary bonds
shall be sufficient if they refer to the resolution of issuance, set
forth the interest rates at which the bonds were awarded and provide
that they are exchangeable for definitive bonds in accordance with this
notice.
INFORMATION AVAILABLE: Request for information should be addressed to:
Mr. Darrell Essex
City Clerk
City of Cypress
5275 Orange Avenue
Cypress, California
GIVEN by order of the City Council of the City of Cypress, California,
adopted August 26, 1968.
LERK F THE
C
CITY CITY
OF CYPRESS
PASSED AND ADOPTED by the City Council of the City of Cypress at a
regular meeting held on the 26th day of August, 1968.
ATTEST: MAYOR OF THE CITY OF CYPRESS
AX4.
CITY CLERK OF THE TY OF CYPRESS
RESOLUTION NO. 899
STATE OF CALIFORNIA ) SS
COUNTY OF ORANGE )
I, DARRELL ESSEX, City Clerk of the City of Cypress, California,
DO HEREBY CERTIFY that the foregoing Resolution was adopted at a
regular meeting of the said City Council held on the 26th day of
August, 1968, by the following vote:
AYES: 5 COUNCILMEN: Harvey, Kanel, Kanode, Noe, and Bowen
NOES: 0 COUNCILMEN: None
ABSENT: 0 COUNCILMEN: None
459
TY CLERK OFTCITY OF CYPRESS
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