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HomeMy WebLinkAboutReso - CC - 052-1948RESOLUTION NO. 52-49 PROVIDING FOR TFHI ISSUANCE OF �155,000.00 PRINCIPAL AMOUNT OF CI`i'Y OF BURLINGAME GENERAL OBLIGATION BONDS OF 1949; PROVIDING FOR THE ISSUANCE OF SAID BONDS AS "SERIES A"; PRESCRIBING THE AhOUNT, DATE AND FORM OF SAID "SERIES A" BONDS AND OF THE COUPONS TO BE ATTACHED THERETO, AND PRESCRIBING THE MATURITIES THEREOF; FIXING THE MAXIMUM AMOUNT OF INTEREST OF SAID BONDS; AUTHORIZING THE EXECUTION OF SAID BONDS AND COUPONS; PROVIDING FOR THE LEVY OF A TAX TO PAY THE PRINCIPAL AND INTEREST OF SAID AUTHORIZED ISSUE; AND DIRECTING NOTICE OF SALE OF SAID "SERIES A" BONDS TO BE GIVEN WHEREAS all the requirements of law have been complied with in calling and holding the Special Bond Election held in the City of Burlingame on April 13, 1948, at which election the proposition to issue bonds of said city in the principal amount of 6,155,000.00 for the objects and purposes hereinafter stated was submitted to the voters of said city; and the City Council of said City did duly and regularly canvass the returns of said election and did as the result of such canvass determine and declare, that said proposition received, at said Special Bond Llection, the affirm- ative vote of more than two thirds of all of the voters voting at said election and was thereby carried and adopted by said election and the issuance of all said bonds by said City was duly Iauthorized; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Burlingame as follows: SECTION 1 - That all of the acts, conditions and things required by law to exist, happen and be performed precedent to and in the issuance of said bonds have existed, happened and been performed in due time, form and manner, as required by law, and said City of Burlingame is now authorized pursuant to each and every requirement of law to incur indebtedness in the manner and form as in this resolution provided. SECTION 2 - That the bonds of the City of Burlingame in the aggregate principal amount of 4155,000.00 to be known as City of Burlingame General Obligation Bonds of 1949" shall issue to pay the cost of the acquisition, construction and completion of the following municipal improvement of said City as set forth in the following proposition, to -wit: PROPOSITION NO. 2 Shall the City of Burlingame incur a. bonded indebtedness in the principal amount of $155,000.00 in accordance with the provisions of the ordinance calling the election at which this proposition is submitted, for the object and purpose of construct- ing, completing and equipping a recreational and community center building in l+ashington Park (formerly Gunst property); the acauisition, purchase and installation of equipment necessary for the complete development of recreational facilities in Ray Park, and the construction and completion of a service building in the public park in Burlingame Village to be used in connection with recreational facilities? SECTION 3 - Said $155,000.00 principal amount of bonds shall be issued as hereinafter set forth and shall be sold in accordance with law at not less than their par value and accrued interest. Said bonds of said authorized issue shall be designated "Series All, shall be negotiable in form, and of the character known as serial, and shall be 155 in number, numbered consecutively from Al to A155, both inclusive, of the denomination of one thousand ($1,000.00) dollars each. Said bonds shall be dated. January 15, 1949 (which is hereby fixed and determined to be the date of issue of said "Series A" Bonds.) All of said bonds shall bear interest, from their date until paid at the rate, or rates designated by the City Council of the City of Burlingame at the time of the sale of said bonds, but not to exceed three (3) per c ent per annum, payable semi-annually. 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 attaches Said interest coupons shall be payable on the 15th day of January and the 15th day of July in each year until and at the respective dates of maturity of said bonds (the first coupon of each bond representing interest from January 15, 1949 to July 15, 1949). Said bonds shall mature and be payable in consecutive numerical order from lower to higher, as follows, to -wit: 47,000.00 principal amount of bonds shall mature and be payable on January 15th in each of the years 1950 to 1959, both inclusive; ,4,�8,000.00 principal amount of bonds shall mature and be payable on January 15th in each of the years 1960 to 1964s both inclusive; $9,000.00 principal amount of bonds shall mature and be payable on January 15th in each of the years 1965 to 1969, both inclusive; Both the principal of and the interest of said bonds shall be payable at the Office of the Treasurer of the City of Burlingame in the City Hail at said City of Burlingame, California, in lawful money of the United States of America. SECTION 4 - Said bonds shall be substantially in the followi form, the blanks in said form and in the form of coupons given below to be filled with appropriate words or figures, namely: UNITED STATES OF ANERICA STATE OF CALIFORNIA 80UNTY OF SAN Iy?ATEO CITY OF BURLINGADE GENERAL OBLIGATION BOND 0 No. A 9t 1,000.00 The City of Burlingame, a municipal corporation, organized and existing under the Constitution and Laws of the State of California, hereby acknowledges itself indebted and for value received, promises to pay to the bearer(or if this bond be registered, to the registered holder hereof) on the 15th day of January, 19 , one thousand ($p1,000.00) dollars together with interest thereon at the rate of per cent per annum until payment of said principal amount in full, payable semi-annually on the 15th day of January and the 15th day of July of each year. Unless this bond is registered such interest, prior to maturity, shall be payable only on presentation and surrender of the proper Interest coupons hereto attached as they respectively become due. Both the principal of and the interest on this bond are payable in lawful money of the United States of America at the Office of the Treasurer of the City of Burlingame, City Hall, Burlingame, California. This bond is one of the duly authorized issue of bonds of said City aggregating one hundred fifty five thousand (P-155,000) dollars in principal amount, all of like tenor (except for such variations, if any, as may be required to designate varying numbers, maturities or interest rates) and is issued under and pursuant to the Constitution and Statutues of the State of California, and under and pursuant to the ordinances and proceed- ings of said City duly adopted and taken and a vote and assent of more than tyro -thirds of all the qualified electors of said City voting at a special election duly called and held for that purpose. It is hereby certified, recited and declared that all acts, conditions and things required by lave to exist, happen and to be performed precedent to and in the issuance of this bond have existed, happened and been performed in due time, form and manner as required by lave, and that the amount of this bond, together with all other indebtedness of said City, does not exceed any limit prescribed by the Constitution or Statutues of said State, and that provision has been made as required by the Constitution and Statutytes of said State for the collection of an annual tax sufficient to pay the principal of, and interest on, this bond as the same become due. The full faith and credit of said City are hereby pledged for the punctual payment of the principal and interest of this bond. This bond may be registered in the manner prescribed by law and thereafter the principal hereof, and the interest hereon shall be payable to such registered owner. IN VTITNEI SS VvHEREOF, the City of Burlingame has cahsed this bond to be executed under its official seal, signed by its Mayor and its Treasurer, and countersigned by its Clerk, and has caused the interest coupons hereto attached to be signed by its Treasures and this bond to be dated the 15th day of January, 1949, Mayor of the City of Burlingame Treasurer oT the City of Burlingame Countersigned: My Clerk of the City of Burlingame Coupon No. On the 15th day of , 19 the City of Burlingame will funless the within mentioned bond be registered) pay to bearer at the Office of the Treasurer of said City of Burlingame, California, Dollars in lawful money of he ITnited States of America, being six monthst interest then due on its General Obligation Bond of 1949, "Series A", dated January 15, 1949. No. A reasurer of ie� C y of Burr iri arise SECTION 5 - The Mayor of said City of Burlingame and the Treasurer of said City are hereby authorized and directed, respectively, as such officers, to execute each of said bonds on behalf of said City, and the City Clerk is hereby authorized and directed to countersign each of said bonds and to affix the official seal of said City thereto. Said Mayor and Treasurer are hereby each, respectively, authorized to cause said bonds to be signed by their printed, lithographed or engraved facsimile signatures. Said Treasurer is hereby authorized and directed to sign each of the interest coupons by printed, lithographed or engraved facsimile signature. Such signing, countersigning and sealing as herein provided shall be sufficient and binding execution of said bonds and said coupons by said City, and all such signatures and countersignatures, excepting that of the City Clerk, may be printed, lithographed or engraved. In case any of such officers whose signatures or countersignatures appear on the bonds or coupons shall cease to be such officer before delivery of such bonds to the purchaser, such signatures or countersignatures shall nevertheless be valid and sufficient for all purposes the same as if they had remained in office until the delivery of the bonds. SECTION 6 - For the purpose of paying the principal and interest on said bonds, the City Council of the City of Burlingame shall, at the time of fixing the general tax levy and in the manner for such general tax provided, levy and collect annually each year until said bonds are paid, or until there shall be a sum in the treasury of said City set apart for that purpose to meet all sums coming due for principal and interest on such bonds, a tax sufficient to pay the annual interest on such bonds as the same becomes due and also such part of the principal thereof as shall become due before the proceeds of a tax levied at the time for making the next general tax levy can be made available for the payment of such principal. Said tax shall be in addition to all other taxes levied for municipal purposes, and shall be collected at the same time and in the same manner as other municipal taxes are collected, and be used for no other purpose than the payment of said bonds and accrued interest. Said taxes as collected shall be forthwith paid into the fund for which the same were levied and collected and shall be designated "City of Burlingame General Obligation Bonds of 1949, Interest and Sinking Fund", and all sums to become due for the principal of and interest on said bonds shall be paid from such fund. There shall be likewise deposited in said fund any moneys received on account of interest accrued on said bonds from their date to the date of delivery and actual payment of the purchase price thereof. SECTIOTi 7 - There is hereby created and established a fund to be known as the "1949 Recreation Construction Fund" which shall be kept by the Treasurer of said City,and all proceeds of the sale of the bonds (other than accrued interest received on the sale of said bonds) shall be placed by the Treasurer to the credit of said fund and shall be kept separate and distinct from all other municipal funds and shall be applied solely to the purposes and the objects specified in the proposition set forth in Section 2 of this resolution. Any premium received upon the sale of said bonds issued shall be placed in such fund. SECTION 8 - The City Clerk is directed to cause a sufficient number of blank bonds and coupons of suitable quality to be lithographed, printed or engraved, and to cause the blank spaces thereof to be fille d in to comply with the provisions hereof and to procure their execution by proper officers and to deliver them, when so executed to the Treasurer of the City who shall safely keep the same until they shall be sold by the said City Council, whereupon he shall deliver them to the purchaser or purchasers thereof, on receipt of the purchase price. Said Mayor, Treasuer and City Clerk are further authorized and directei to make, execute and deliver to the purchaser of said bonds a signature and no -litigation certificate in the form usually required by purchasers of municipal bonds generally certifying to the genuineness and due execution of said bonds and further certifying to all facts within their knowledge relative to any litigation which may or might affect said City, said officers or said bonds, and said Treasuer is further authorized and directed to make, execute and deliver to the -purchaser of said bonds a Treasurerts receipt in the form usually required by purchasers of municipal bonds, evidencing the payment of the purchase price of said bonds, which receipt shall be conclusive evidence that said purchase price has been paid and has been received by said City. Any purchaser or subsequent taker or holder of said bonds is hereby authorized to rely upon any such signature and no -litigation certificate and Treasurer's receipt with respect to said bonds executed pursuant to the authority of this resolution. SECTION 9 - All of said bonds shall be offered for public sale by the City Council of the City of Burlingame on the 15th day of November, 1948, and the City Clerk is hereby authorized and directed to cause notice of the sale of the said bonds to be published once in the Burlingame Advance -Star, the official newspaper of said City, and such notice shall be substantially in the following form, to -wit: OFFICIAL NOTICE OF SALE OF BURLINGAME GENERAL OBLIGATION BONDS OF 1949. Notice is hereby given that sealed proposals will be received by the City of Burlingame, State of California, at the Office of the City Clerk thereof, in the City Hall of said City of Burlingame, California, on Monday, November 15, 1948 at the hour of 11:00 a.m. (C.D.S.T.) for the purchase of A155,000.00 principal amount of bonds of said City designated "City of Burlingame General Obligation Bonds of 1949, Series A", more particularly described below. Said "Series A" bonds were authorized at an election held in the said City of Burlingame on April 13, 1948. ISSUE: $155,000.00 consisting of 155 bonds of the denomination of .1,000.00 each, numbered Al to A155, inclusive, all dated January 15, 1949, and designated "Series A". MATURITIES: SAID bonds mature serially in consecutive numerical order, from lower to higher, �7,000.00 principal amount on January 15th in each of the years 1950 to 1959, both inclusive, $8,000.00 principal amount on January 15th in each of the years 1960 to 1964, both inclusive, and $9,000.00 principal amount on January 15th in each of the years 1965 to 1969, both inclusive, without option or prior payment. INTEREST RATE: 14aximum three (3) per cent per annum, payable semi -Annually on January 15th and July 15th in each year. Bidders must specify the rate of interest which the bonds offered for sale shall bear. Bidders will be permitted to bid different rates of interest and to split rates irrespective of the maturities of said bonds. The interest rate in the bid must be in a multiple of one - quarter of one per cent per Annum, payable semi-annually. PAYDENT: Both principal and interest payable in law- ful money of the United States of America at the Office of the Treasurer of said City, in Burlingame, California. REGISTRATION: Coupon bonds will be issued by the City. Such bonds are registerable only as to both principal and interest. PURPOSE OF ISSUE: "Series A" bonds are authorized and will be issued for the purpose of acquiring, con- structing and completing municipal improve- ments for recreational purposes pursuant to vote of more than two-thirds of the voters voting for said improvements at a special election. SECURITY: Said bonds are rIeneral obligations of the City of Burlingame and said City has power and is obligated to levy ad valorem taxes for the payment of said bonds and the inter- est thereon upon all property within the City of Burlingame subject to taxation by said City (except certain intangible persona: property, which is taxable at limited rates) without limitation of rate or amount. TAX EXEMPT STATUS: In the event that prior to the delivery of the bonds the income received by private holders from bonds of the same type and character shall be declared to be taxable under any Federal Income Tax Laws either by the terms of such laws or by the ruling of a Federal income tax authority or official which is followed by the Bureau of Internal Revenue, or by decision of any Federal Court, the successful bidder may, at his option, prior to the tender of said bonds by the City, be relieved of his obligation under the contract to purchase the bonds and in such case the deposit accompanying his bid will be returned. LEGAL OPINION: The legal opinion of Messrs. Orrick, Dahl- quist, Neff and Herrington, of San Francisco; California, approving the validity of said bonds will be furnished to the successful bidder without charge. TERMS OF SALE Highest Bid: The bonds will be awarded to the highest and best bidder 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 re- quired to pay from the date of said bonds to their respective maturity dates 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 lowest net interest cost shall be computed b etween the dates aforesaid according to standard bond interest tables. The purchaser must pay accrued interest from the date of the bonds to the date of delivery. The cost of printing the bonds will be borne by the City. Right of Rejection The City of Burlingame reserves the right, in its discretion, to reject any and all bids and to waive any irregularity or informality in any bid. Prompt Award: The City Council of the City of Burlingam will take action awarding the bonds or rejecting all bids not later than 24 hours after the expiration of the time herein prescribed for the receipt of proposals, providing 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. Prompt Delivery: Delivery of said bonds will be made to the successful bidder at the Office of the City Treasurer in Burlingame, California, as soon as the bonds can be prepared, which it is estimated will. be about January 15, 1949. Right of Cancellation: The successful bidder shall have the right, at his option, to cancel the contract of purchase if the City shall fail to tender the bonds for delivery on or before February 15, 1949, and in such event the successful bidder shall be entitled to the return of the deposit accompanying, his bid. Form of Bid: All bids must be unconditional; for not less than all of the bonds hereby offered for sale; and for not less than the par value thereof and accrued interest to date of delivery. Such bids, together with bidder's check, must be enclosed in a sealed envelope addressed to the City Council of the City of Burlingame, in care of the City Clerk, City Hall, Burlingame, California, and endorsed, "Proposal for City of Burlingame General Obligation Bonds of 1949, Series A". Bid Check: With each bid must be submitted a certified check or cashier's check for P5,000.00 drawn on a bank or trust company transacting; business in the State of California, payable to the order of the Treasurer of the City of Burlingame, to secure the city from any loss resulting from the failure of the bidder to comply with the terms of his bid. In addition bidders are requested (but not required) to supply an estimate of the total net interest cost to the City on the basis of their respective bids, which shall be considered as informative only and not binding on either the bidder or the City. Checks of the unsuccessful bidders will be returned by the City by mail upon the award of the bonds. No interest will be paid upon the deposit made by the successful bidder. FINANCIAL AND ECONOMIC DATA The City of Burlingame is an incorporated City of the 6th class, having been incorporated in 1908. A recent special Federal census was taken, and the report of the Department of Commerce shows the population of the City to be 18,882. The present assessed valuation of all taxable property within the City is �;21,658,410.00, and the total bonded indebtedness (not including this issue) is 145,000.00. Further information relative to the financial condition of the City of Burlingame will be furnished to any bidder upon re- quest by the Treasurer of said City. There is no controversy or litigation pending or threatened concerning the validty of the above issue, the corporate exist - once of the City of Burlingame, or the title of the officers of said City to their respective offices. Dated City Clerk o t o City o Burlingame SECTION 10 - This resolution shall take effect from and after its adoption. Passed and adopted this 25th day of October, 1948. AYES: COUNCILMEN: Dahl -harper -Hunt -Love -Simonds- _ NOES: COUNCILMEN: None ABSENT COUNCILMEN: None Mayor of the MtY of Burly ngame ATTEST: i`ity Clerli t. e Cj. y of Burl..ngame Presented to and approved by me this .2T�° day of r , 1948. Mayor of the C1t�riingame