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HomeMy WebLinkAboutRESO 5226.. _r_- •• RESOLUTION NO.. 5226 RESOLtn'ION OF THE COUNCIL OF THE CITY OF PALO ALTO PROVIDING FOR THE BORROWING OF FUNDS FOR THE FISCAL YEAR 1976-1977 AND THE ISSUANCE AND SALE OF TEMPORARY NOTES THEREFOR ORIGINAL ll!SCDU>!D BY RESOU,"TION NO. 5234 WHEREAS, the City of Palo Alto (the "City•), a municipal corporation and a chartered city in the State of California, desires to avail itself of the provisions of Article 7.6 (camnencing with Section 53850), Chapter 4, Part 1, Di vision 2, Title 5, California Government C~e ·' for the purpose of borrowing the sum of.$5,000,000 by issuance of notes in anticipation of the receipt of taxes and other income, revenue, cash receipts and othei.· moneys to be received by the City during the 1976-1977 fiscal year (commencing July 1, 1976 and ending June 30, 19.77): and WHEREAS, Section 53858 of said Government Code provides that notes shal.l not be issued pursuant to said Article 7.6 in any fiscal year in an amount which, when added to the interest payable thereon, shall exceed eighty- five percent (85\) of the estimated amount of the then - uncollected taxes, income, revenue, cash receipts and other moneys of the City which will be available in said fiscal 1 •• -- ~ar for the payment of said notes and interest thereon. NOW, THEREFORE, the Council of tho City of Palo Alto hereby finds, determines, declares and resolves as follows: Section-1. The estimated amount of the taxes and other income, revenue, cash receipts and other moneys remaining uncollected on July 15, 1976, and which will be available on or before June 15, 1977, in this (1976-1977) fiscal year for the payment of the notes and interest thereon ie the sum of at least $18,000,000. Said sum is exclusive of taxes levied to pay the principal of and interest on bonded indebtedness of the City, moneys which when received will be encumbered for a special purpose and utility revenues required for utility maintenance and operation. Section 2. No sums have heretofore been borrowed by the City in anticipation of the r~ceipt of taxes, other income re~enue, cash receipts or other moneys for this (1976-1977) fiscal year. Section 3. The City hereby determines to and shall borrow the aggreqate principal sum of Five Million Dollars ($5,000,000) by the issuance of SO temporary notes (the •notes•), to be numbered 1 to so, both inclusive, of the denomination of $100,000 each, to be dated July 15, 1976 and to mature (without option of prior redemption) on June 15, 1977. The notes shall bear interest at the rate of not to exceed eight percent (8t) per annum (payable at maturity). The exact rate or rates of interest to be paid on the notes shall be designated at the time of determining the best bid and making the award after calling for sealed proposals for the purchase thereof. The notes shall be sold to the bidder offering to purchase them at the lowest rate or rates of 2 / •• interest computed from the date of the notes to the maturity date thereof, or whose bid represents the lowest net inter- est cost to the City. The notes shall be sold for not less than the face value thereof and shall be delivered to the purchaser and paid for on the date thereof. Both the principal of and interest on the notes shall be payable only upon surrender thereof, in lawful money of the United States of America at the office of the City Treasurer of the City in Palo Alto, California. The notes shall be issued without coupons and shall be substantially in the form set forth in Exhibit •A" attached hereto and by this reference incor- porated herein, the blanks in said form to be filled in with approp:a..'.iate words and figures. Section 4. Said sum of $5,000,000, together with the interest payable thereon as provided herein, is less than 85% of the amount set forth in Section 1 hereof. Section 5. The moneys so borrowed shall be used and expended by the City for any purpose for which it is authorized to expend funds, including, but not limited to, current expenses, capital expenditures, and the discharge of any obligation or indebtedness. Section 6. It is estimated that from July 15, 1976 to June 15, 1977 the City will receive taxes, other income, revenue, cash receipts and other moneys in the total sum of at least $18,000,000, excluding taxes levied to pay the princi- pal of and interest on bonded indebtedness of the City, moneys which when received will be encumbered for a special purpose and utility revenues required for utility maintenance and operation. For the prompt payment of the principal of and interest on the notes, the City hereby pledges all said taxes, income, revenue, cash receipts and other moneys as received (excluding-said taxes-levied to pay said bonded indebtedness, 3 •• moneys which when received will be encwrbered for a special purpose and utility revenues required for utility maintenance and operation) , to the extent necessary to pay said principal of and interest on the notes, and the notes shall constitute a first lien and charge upon said taxes, income, revenue, cash receipts and other moneys so pledged; provided however, the City may, pending payment at maturity, deposit the funds so pledged in inactive or term deposits, or invest such funds as permitted by law, and in any such event such deposits and such funds so invested shall remain subject to such pledge, lien and charge. The Council, as issuers of the notes on behalf of the City, hereby covenants that it will make no use of the proceeds of the notes which would cause the notes to be narbitrage bonds• under Section 103(d) of the Internal Revenue Code1 and to that end, so long as any of the notes are outstanding, the issuer with respect to the proceeds of the notes and all officers having custody or control of the proceeds of the notes shall comply with all requirements of such section and the regulations of the United States Depart- ment of the Treasury thereunder, to the extent that such regulations are, at the time, applicable and in effect, so that the notes will not be "arbitrage bonds". Section 7. It is hereby covenanted and warranted by the City that all representations and recitals contained in t.~is resolution are true and correct, and that the City, and its appropriate officials, have duly taken all proceed- ings necessary to be taken hy them, and wi11·take any addi- tional.proceedings necessary to be taken by them, for the levy, collection and enforcement of the taxes and the collec- tion of all other income, revenue, cash receipts and other moneys pledg~d hereunder in accordance with law for carrying out the provisions of this resolution and any pledge hereunder. 4 •• •• Section 8. The City Treasurer is hereby autho- rized and directed to execute the notes for and on behalf of the City and the City Clerk is hereby authorized and directed to countersign and seal the notes for and on behalf of the City, and said signing, coWltersigning and sealing shall constitute a valid and sufficient execution of the notes. Section 9. The notes shall be sold by the Council at public sale on Monday, July 12, 1976 at 8:00 P.M. and th~ City Treasurer is hereby directed to cause notice to be given for the sale of the notes by mailing copies of a notice of sale to interest bidders. Said notice shall be in substantially the form set forth in Exhibit "B" attached hereto and by this reference incorporated herein. Section 10. This resolution shall take effect from and after its passage and approval. PASSED AND ADOPTED this 6th day of July, 1976 by the following vote: AYES: Beahrs, Carey, Clay, Eyerly, Norton, Sher, Witherspoon NOES: Colistock ABSENT: Berwald I, ANN J, TNiNRR , City Clerk of the City of Palo Alto, State of California, do hereby certify that the above copy of Resolution No. 5226 is a full, true and correct copy of said resolution now on file in my office, and that said resolution was adopted on the 6th day of July, 1976 and has not been amended, rescinded or repealed and is now in full force and effect. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of said City this 6th day of July, 1976. [Seal] 5 •• No. $100,000 EXHIBIT A CITY OF PALO ALTO TEMPORARY NOTE FISCAL YEAR 1976-1977 July 15, 1976 FOR VALUE RECEIVED, the City of Palo Alto (the "City"), State of California, acknowledges itself indebted and promises to pay to the bearer hereof, at the office of the City Treasurer of the City in Palo Alto, California, the principal sum of ONE HUNDRED THOUSAND DOLLARS ($100,000) in lawful money of the United States of America, on June 15, 1977 (without option of prior redemption), together with interest thereon at the rate of % per annum in like lawful money from the date hereof until payment in full of said principal sum. Both the principal of and interest on this note shall be payable only upon surrender of this note as the same shall fall due; provided, however, no interest shall be payable for any period after maturity during which the holder hereof fails to properly present this note for payment. It is hereby certified, recited and declared that this note is one of an authorized issue of notes in the aggregate prin- cipal amo~•t of Five Million Dollars ($5,000,000) all of like tenor l*J made, executed and gi_.,en pursuant to and by authority of a resolu- tion of the Council of the City duly passed and adopted on July 6, 1976, under and by authority of Article 7.6 (commencing with Section 53850) of Chapter 4, Part 1, Division 2, Title S, California Govern- ment Code, and that all acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of this note have ex.isted, happened and been performed in regular and due time, form and manner as required by law, and that this note, together with all other indebtedness and obligations of the City, does not exceed any-limit prescribed by the Constitution or the statutes of the State of California or the Charter of the City of Palo Alto. For payment of the principal of and interest on this note and all notes of said authorized issue, the City hereby ple~?eS all taxes, other income, revenue, cash receipt~ and other moneys of the City remaining uncollected on July 15, 1976, and thereafter collect- ed by the City on or before June 15, 1977 during the fiscal year 1976-1977 (exclusive of taxes levied to pay the principal of and interest on bonded indebtedness of the City, moneys which when received will be encumbered for a special purpose and utility revenues required for utility maintenance and operation) and this note and all notes of said authorized issue shall constitute a first lien and charge thereon; provided, however, the City may, pending payment at maturity, deposit the funds so pledged in inactive or term deposits, or invest such funds as permitted by law, and, in any such event, such deposits and such funds so invested shall re- main subject to such pledge, lien and charge. ·, ~IN WITNESS WHEREOF, the City of Palo Alto has caused this note to be executed by the City Treasurer of the City and counter- signed by the City Clerk of the City and caused its official seal to be a~fixed hereto this 15th day of July, 1976. CITY OF PALO ALTO [Seal] By Cotmtersigned: ~City Treasurer City Clerk [*) If all notes do not bear the same interest rate insert "(except for varying interest rates)". •• EXHIBIT B NOTICE OF SALE of $5,000,000 TEMPORARY NOTES of THE CITY OF PALO ALTO STATE OF CALIFORNIA Fiscal Year 1976-1977 NOTICE IS HEREBY GIVEN that the Council (·::he "Council") of the City of Palo Alto (the "City"), Santa Clara county, State of California, will receive bids up to 3:00 P.M. on Monday, July 12, 1976 at the office of the City Treasurer, Civic Center, 250 Hamilton Avenue, Palo Alto, california 94301, for $5,000,000 principal amount of temporary notes (the "notes") hereinafter described. The notes will be sold by the Council at 8:00 P.M. on said date at the meeting place of the Council in said Civic Center, for cash to the bidder _or bidders offering the lowest rate of interest thereon or whose bid represents the lowest net interest cost to the City. The notes will be issued in accordance with the provisions of Section 53850 et seq. of the Government Code of the State·cf.California.,-and will be 50 in number, number- ·ed 1 to 50, both inclusive, of the denomination of $100,000 each, in the aggregate principal amount of $5,000,000, all dated July 15, 1976 and all maturing on June 15, 1977 (without option of prior redemption). The notes will bear interest at such rate or rate3, not to ~xceed eight percent (8') per annum, as shall be named by the successful bidder therefor.. Each bidder may name any number of different rates for the notes, provided that each rate so named shall be a multiple of 1/100 of 1% and that no one note shall bear more than one rate of interest. Interest on the notes shall be paid at the maturity thereof. Each bidder shall state separately 1 •• inhis bid the rate of interest that he desires notes of specified_ numbers to bear and the premimn offered, if any. Both the principal of and interest on the notes shall be payable in lawful money of the United States of America at thP-office of tne City Treasurer of the City in Palo Alto, California. Payment of the principal of and interest on the notes will be made from City taxes arid other inc~e, revenue,_ cash -receipts and othe~ moneys remaining uncollected on July 15, 1976 and to be received on or before June 15, 1977 (excluding taxes levied to pay the principal of and interest on bonded indebtedness of the City, moneys which when received will be encumbered for a special purpose and utility revenues required for utility maintenance and operation), all of which are pledged for the payment of the notes and interest thereon. - The notes will be awarded and sold to the bidder or bidders whose bid represents the lowest net interest cost to the City, such interest to be computed from the date of the notes to June 15, 1977 on the basis of three hundred sixty-five (365) days per year. If two or more bidders offer to purchase the notes at the same lowest net interest cost, the Council shall determine which bid shall be accepted. The right is reserved by the Council to reject any or all bids. Each bid must be for not less than all the notes and must be accompanied by a separate certified check or cashier's check or cash depos~t in the sum of $5,000 payable to the order of the City Treasurer of the City of Palo Alto. Checks or cash deposits will be returned to unsuccessful bidders whose bids are rejected, and the check or cash deposit of the successful bidder 2 . , . ,.. • • •• for the notes will be forfeited in case he fails to ac..cept and pay for the notes before noon on their date if his bid is accepted and the notes are duly tendered for delivery on their date. Payment of the purchase price of the notes shall be .made on the date of delivery of and payment for the notes in bank funds i.Jmnediately available to the City in Palo Alto, California. The opinion of Messrs. Orrick, Herrington, Rowley & Sutcliffe, San Francisco, California, approving the validity of the notes will be furnished to the successful bidder without charge. Dated: July 6, 1976. City Treasurer of the City of Palo Alto, California 3