Resolution No. 1411RESOLUTION NO 1411
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS,
CALIFORNIA, PROVIDING FOR THE ISSUANCE AND SALE OF BONDS
OF SAID CITY FOR
Assessment District No. 7403-20
(Walnut Street - Jonathan Channel)
WHEREAS, by Resolution No. 1389 of the City of Cypress, this City Council
confirmed an assessment on lands lying within Assessment District No. 7403-20
of the City of Cypress, and by said Resolution ordered the diagram and assessment,
as set forth in the report prepared by the City Engineer, recorded in the office
of the County Recorder, County of Orange, State of California, and a Notice of
Assessment to be recorded in the office of said County Recorder; and
WHEREAS, the total assessment so confirmed was $24,118.29; and
WHEREAS, the Superintendent of Streets has filed with this City Council his
Certificate of Assessments Remaining Unpaid, indicating that the total amount of
unpaid assessments is $23,082.03; and
WHEREAS, by Resolution No. 1383 of the City of Cypress, this City Council
resolved that serial bonds, bearing interest at a rate not to exceed seven per-
cent (7%) per annum, shall be issued under and as provided in the Improvement
Act of 1911, i.e., California Streets and Highways Code Sections 5000 et seq.,
to represent assessments not paid within thirty (30) days after recordation
of said assessment; and
WHEREAS, this City Council deems it proper, and the necessity therefor
appears, that said bonds to represent the unpaid assessments be issued and sold
in the form and manner as hereinafter provided.
NOW, THEREFORE, the City Council of the City of Cypress DOES HEREBY RESOLVE,
DETERMINE AND ORDER as follows:
SECTION 1. Bonds of the City of Cypress in a total amount of Twenty-three
thousand eighty-two dollars and three cents ($23,082.03) be issued and sold to
represent assessments not paid within thirty (30) days after recordation of
the assessment and diagram and remaining unpaid- Said bonds shall be designated
"STREET IMPROVEMENT BOND IN THE CITY OF CYPRESS, COUNTY OF ORANGE, STATE OF
CALIFORNIA, SERIES NO. 1 OF ASSESSMENT DISTRICT NO. 7403-20". The exact number
of said bonds to be issued shall be equal to the number of parcels within said
Assessment District No. 7403-20, on which said assessments are not paid, and
the unpaid assessment on each of said parcels shall be represented by a separate
bond. The exact amount of each bond shall be the amount of the unpaid assessment
on the parcel which said bond represents. A description of the respective lots,
pieces or parcels of land upon which the assessment was levied is attached hereto
as Exhibit "A" and by this reference made a part hereof. Said bonds shall be
dated December 1, 1973. Said bonds shall bear interest at a rate to be hereinafter
fixed, but not to exceed seven percent (7%) per annum. The first interest coupon
shall be payable on July 2, 1974 and thereafter the interest is payable semi-
annually on each succeeding January 2 and July 2. Said bonds and the interest
thereon shall be payable in lawful money of the United States of America at the
office of the Treasurer of the City of Cypress. Said bonds shall be payable to
bearer. The principal of said bonds shall be payable by coupon in ten (10) even
annual installments payable on January 2nd of each year, beginning January 2,
1975. In each of said bonds the right will be reserved to redeem such bond at
any time before maturity upon payment of the then unpaid principal with interest
thereon to the due date of the next maturity interest coupon, plus a premium of
five percent (5%) of said unpaid principal. The bonds will provide that the
Treasurer of the City of Cypress will retain the first one percent (1%) penalty
for any delinquency as provided in Section 6442 of the Streets and Highways Code.
Each bond is a lien upon the property upon which the assessment represented
by said bond was levied.
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SECTION 2, The Treasurer of the City is hereby authorized and directed l til,
to sign all of said bonds and the Treasurer of the City is hereby authorized
and directed to sign by facsimile signature the interest and principal coupons
affixed to said bonds, and to number said interest and principal coupons affixed
to each of said bonds consecutively.
SECTION 3- Said bonds shall be issued in substantially the form set forth
in Section 6460 of the Streets and Highways Code and the coupons for said prin-
cipal and interest thereon shall be in substantially the following form:
(INTEREST COUPON FORM)
Bond No, Due Interest Coupon
19 $
CITY OF CYPRESS
is payable to bearer at the office of the Treasurer, of the above named
City, for semiannual interest due from the fund for the construction of
certain storm drain improvements in Assessment District No. 7403-20.
Cypress, California
December 1, 1973
Improvement Act of 1911
Series No. 1 of Assessment District No. 7403-20
Treasurer of the City of Cypress,
County of Orange, State of
California
(PRINCIPAL COUPON FORM)
Bond No. Due Principal Coupon
19 $
CITY OF CYPRESS
is payable to bearer at the office of the Treasurer of the above named
City, being the Annual Installment due on the principal from
the fund for the construction of certain storm drain improvements in
Assessment District No. 7403-20.
Cypress, California
December 1, 1973
Improvement Act of 1911
Series No. 1 of Assessment District No. 7403-20
Treasurer of the City of Cypress,
County of Orange, State of
California
SECTION 4. The proceeds of the sale of said bonds shall forthwith be placed
in a fund of said City hereby created and designated "ASSESSMENT DISTRICT NO.
7403-20, WALNUT STREET - JONATHAN CHANNEL FUND," and the moneys in said fund
shall be applied exclusively to the construction of certain storm drain improve-
ments described in said Resolution No. 1383 of the City of Cypress.
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41 (-yr",
SECTION 5. This City Council does hereby call for sealed bids on the
said bonds proposed to be issued to be received up to the time specified
in the notice hereinafter set forth.
SECTION 6. The City Clerk of the City of Cypress shall cause a
notice inviting such bids to be given by mailing copies thereof to such
persons and investment bankers known by the City Clerk to have an interest
in purchasing such bonds. Said notice shall be in substantially the
following form:
NOTICE INVITING BIDS ON BONDS OF TH
CITY OF CYPRESS, CALIFORNIA, ASSESSMENT
DISTRICT NO. 7403-20
(Walnut Street - Jonathan Channel)
NOTICE IS HEREBY GIVEN that the City Council of the City of Cypress,
County of Orange, State of California, will receive sealed bids for the
purchase of the following described bonds at the office of the City Clerk
of said City, 5275 Orange Avenue, Cypress, California, up to the hour of
10:00 a.m., December 7, 1973. Said bids will be opened at said time and place.
The bonds to be sold are bonds to be issued to represent unpaid assessments
levied upon the lands within Assessment District No. 7403-20, of said City, to
pay the cos!: of certain storm drain improvements and appurtenances and all
appurtenant work in connection therewith within said assessment district, which
assessments have been made under the Municipal Improvement Act of 1913, Division
12 of the Streets and Highways Code. Said bonds will be issued under the Improve-
ment Act of 1911, Division 7 of the Streets and Highways Code; and, except as
otherwise provided in the Municipal Improvement Act of 1913, the provisions
of Part 5 of the Improvement Act of 1911 apply to said bonds and govern as
to the issuance, collection and enforcement thereof.
The total assessment levied was $24,118.29 of which sum $23,082.03 remains
unpaid; and bonds will be issued and sold to represent the unpaid assessments.
The list of unpaid assessments, which unpaid assessments will be represented
by a separate bond, is available in the office of the Superintendent of Streets
of the City. Said bonds will be designated "STREET IMPROVEMENT BOND IN THE CITY
OF CYPRESS, COUNTY OF ORANGE, STATE OF CALIFORNIA, SERIES NO. 1, OF ASSESSMENT
DISTRICT NO. 7403-20". Said bonds will be dated December 1, 1973, and bear
interest from that date at a rate not to exceed seven percent (7%) per annum.
The first interest is payable on July 2, 1974, and thereafter the interest is
payable semiannually on each succeeding January 2 and July 2. The principal of
said bonds is payable by coupon in ten (10) even annual installments payable on
January 2 of each year, beginning January 2, 1975.
In each of said bonds the right will be reserved to redeem such bond at
any time before maturity upon payment of the then unpaid principal with interest
thereon to the due date of the next maturity interest coupon, plus a premium of
five percent (5%) of said unpaid principal. The bonds will provide that the
Treasurer of the City of Cypress will retain the first one percent (1%) penalty
for any delinquency as provided in Section 6442 of the Streets and Highways Code.
Each bond is a lien upon the property upon which the assessment represented
by said bond was levied. A description of the respective lots, pieces or parcels
of land upon which the assessment was levied, is attached hereto as Exhibit "A"
and by this reference made a part hereof.
TERMS OF SALE
Interest Rate: Said bonds are to be sold for cash only to the best respon-
sible bidder. Each bid shall state the interest rate not to exceed seven percent
(7%) per annum payable as above provided, at which the bidder offers to buy said
bonds. Only one interest rate may be bid, which rate may be stated in any
multiple of 1/20 of 1% or any multiple of 1/8 of 1%.
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Award: The bonds may be sold at a price equal to their par value or above
or below their par value. The bonds shallbe 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 the total price offered for the bonds, the premium, if any,
and the interest rate not to exceed that specified herein, at which the bidder
offers to buy said bonds. Any accrued interest that would be paid will be
entirely disregarded and need not be paid. Each L:.dder 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 total price offered, the interest rate
specified and the premium offered, if any. The net cost to the City on any
bid or bids offering par 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 their respective principal
payment dates thereof at the coupon rate specified in the bid. The net cost
to the City on any bid or bids offering less than par will be determined by
adding to the total amount of interest which the City would be required to
pay from the date of said bonds to their respective principal payment dates
thereof at the coupon rate specified in the bid the amount of the discount
bid. The award will be made to the bidder or bidders offering the lowest
net cost to the City. In the event that two or more bidders have bid the same
lowest net cost to the City, the award shall be made by lot. 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 expiration of 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 said City notice in writing of the withdrawal of such proposal.
Place of Delivery: Delivery of said bonds will be made to the successful
bidder at the office of the Treasurer of the City, or at any other place
agreeable to both the Treasurer of the City and the successful bidder.
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 Bonds
Assessment District No. 7403-20."
Bid Check: A certified or cashier's check on a responsible bank or trust
company in the amount of $5,000, payable to the order of the City of Cypress,
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 proceeds of the check accompanying any accepted proposal shallbe 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
said City, shall then be retained by said 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, or shall be required to be taken
into account in computing any federal income taxes by the terms of any federal
income tax laws enacted subsequent to the date of this notice.
Legal Opinion: The opinion of Rutan & Tucker, Attorneys, approving the
validity of said bonds, will be furnished to the successful bidder at or prior
to the date of delivery of the bonds, at no expense to the bidder.
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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.
INFORMATION AVAILABLE: Request for information concerning the assessment
district should be addressed to:
A. W. Schatzeder
City Engineer
City of Cypress
5275 Orange Avenue
Cypress, California 90630
GIVEN by order of the City Council of the City of Cypress, California.
Adopted: November 12, 1973.
City Clerk of the City of Cypress, California
PASSED AND ADOPTED by the City Council of the City of Cypress at a regular
meeting held on the 12th day of November, 1973.
ATTEST:
/-1.714-e� � (
CITY CLERK OF THE CITY OF C
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
S
/./
MAYOR OF THE CITY OF CYPRESS
I, DARRELL ESSEX, City Clerk of the City of Cypress, DO HEREBY CERTIFY that
the foregoing Resolution was duly adopted at a regular meeting of the said City
Council held on the 12th day of November ,1973, by the following roll call vote:
AYES: 5 COUNCILMEN: Frankiewich, Harvey, Kanel, Lacayo and Roberts
NOES: 0 COUNCILMEN: None
ABSENT: 0 COUNCILMEN: None
CITY CLERK OF THE CITY OF CYPRESS