HomeMy WebLinkAboutRESO 5234.. . : . •• ,.
RBSOLOTIOR MO.. 5234
JtBSOLU'l'ION OP TD COOlfCIL OF TD CITY OP
PAID ALTO PAOVIDING FOR THE BORROWDIG 01'
FmlDS .fOR 'l'BE FISCAL YEAR 1976-1977 AND
'1'8E I_SSUMICB AND SALE OP 'tlOIPOMRY NOTES
'l'EIEREFOR
ORIGINAL
WRRpBAS" 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 (c• encinq with Section 53850), Chapter 4,
Part 1, Di vision 2, Title 5, california 6ovenment COde r·
~the pmpoae of_ borrowing tlle smi of $5,000,000 by
iSIJl'llmCe o~ notea in anti.cipetim of the receipt. of t•ws
to be recei:ved by the City c1Dri119 ~ l!t76-1977 fiscal
l"U%' (~ Ja17 1,, 1916 11114 emflng June 30, 1977};
and
•mu~ Section 53858 of aaid-Govenaent COde
pr09ideS that notea aball not. be i~ pursuant to said
Article 7., in may riacal year in an ••IQ!tt tdlich,, when
aMe4 to U.. interest payable t:llareaD, sball exceed eigbty-
f i w perceat. .. (851) of ~-e.U..Ud aowit of the then
ancollacte4 t:•Sff r, inac 1 , ~, cUlh reeeipts and other
llOM'J'• of the city vbicb will be nailable in aaJ.d fiscal
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~ar for the payment of said notes and interest thereon.
NOW, THEREFORE, the Cour.cil of the City of Palo
Alto hereby finds, determines, declares and resolves as
follows:
section 1. The estimated amount of the tax.ea
and other income, revenue, cash receipts and other moneys
remaining WlCOllected on July 22, 1976, and which will be
available on or before June 22, 1977, in this (1976-1977)
fiscal year for the payment of the notes and interest thereon
is the smn 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 receipt of taxes, other income
revenue, 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 50 t~rary notes {the
•notes"), to be numbered l to SO, both inclusive, of the
denomina~ion of $100,000 each, to be dated July 22, 1976 and
to mature (without option of prior redemption) on June 22,
1977. The notes shall bear interest at the rate of not to
exceed eight percent (8\) per annum (payable at JMturity).
The e.xaet rate or rates of interest to be paid on the notes
shall be designated at the time of determini_nq the beat bid
and .akinq the award after calling for sealed proposals for
the purchase thereof. The notes shall be sold to th& bidder
offering to purchase tbela at t.ha lowest rate or rates of
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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 en 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
appropriate words and figures.
Section 4. Said sum of $5,000,000, toqether with
the interest payable thereon as provided herein, is less than
85% of the amount set forth in Section l hereof.
Section s. Tbe 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 obliqation or indebtedness.
Section 6. It is estimated that-from July 22, 1976
to June 22, 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 whea r~ived will be encumbered for a special purpose
and utill_ty J:evenua required for utility maintenance and
operation. ror the prompt payment of tba principal of ancl
intereat on the notes, the City hereby pledges all aaid taxes,
income, rewnue, cash receipt• and other moneys aa received
(exclu4in9 n~d taxea levied to pay nid bonded-indabtedneaa,
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moneys which when received will be encumbered 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 pe:nnitted by law, and in any such event such deposits and
such funds so inv~sted shall remain subject to such pledge,
lien and charge.
It is hereby covenanted by the City that it will make
no use of the proceeds of the notes which would cause the notes
to be "arbitrage bonds" under Section-!.03(d) of the Internal
Revenue Code; 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
regulat:lons are, at the time, applicable and in effect, so
that the notes will not be fiarbitrage bonds~.
Section 7. It is hereby covenanted and ~arranted
by the City that ~11 representations and recitals contained
in this resolution are true and-correct, and that the City,
and its appropriate officials, have du~y taken ail proceed-
ings necessary to be taken by them, and will 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 c:;>ther income, revenue, cash receipts and other
moneys pledged hereunder in accordance with law for carrying
out the provisions of this resolution and any pledge hereunder.
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e.
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, countersigning and sealing
shall constitute a valid and sufficient execution of the
notes.
Section 9. The giving of notice of sale of the
notes to interested bidders by the City Treasurer (in $Ub-
stantially the form of notice set forth in Exhibit "B"
attached hereto and by this reference incorporated herein) ·
is hereby ratified and confirmed.
Section 10. The notes are hereby sold to
BaU. of America National Trust and Savings Association
at the interest rates(s) of 3.61 1o on notes numbered:.._ 'to 50
inclusive
Sectitn 11. Resolution No. 5226; heretofore adopted
by the Council 0n July 6, 1976, is hereby rescinded.
Section 12. This resolution shall take effect from
and afters its passage and approval.
INTRODUCED AND PASSED: July 19. 1976
AYES: Beahr•• Clay, Jtyerly, Sber, Wi.therapooa:
NOES: 0
ABSTAINING:
APPROVED:
~ cttTor<> er
APPROVED:
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I, Ann J. Tanner, City Clerk of the City of Palo
Alto, State of California, do hereby certify that the above
copy of Resolution No. is a full, true and correct
copy of said resolution"liOW on file in my office, and that
-~aid resolution was adopted on the 19th 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 hereWlto set my hand and
affixed the seal of said City this 19th day of July, 1976.
city eterk
[Seal]
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No.
$100,000
CITY OF PALO ALTO
TEMPORARY NOTE
FISCAL YEAR 1976~1977
,,-:-I ., -· I J C" ·~ ,Y,V I:-t. · -·
July 22, 1976
FOR VALUE RECEIVED, the City of Palo Alto (the "City•),
State of California, acknowledqes itself indebted and promises
to pay to the bearer hereof, at the office of the City Treasurer
of the City i.n Palo Alto, California, the principal sum of
ONE HUNDRED THOUSAND DOLLARS ($100,000) in lawful money of the
United States of America, on June 22, 1977 (without option of
prior redemption), together with interest thereon at the rate of
% per annum in like lawf~l 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 amount of Five Million Dollars ($5,000,000) all of like tenor
made, executed and given pursuant to and.by authority of a resolu-
tion of the Council of the City duly passed and adopted on July 19,
1976, under-and by authority of Article 7.6 (commencing with Section
53850) of Ch<'l.pter 4, Pa~ l, _Division 2, Title 5, 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 existed, happened and been performed in regular and
due ti.me, 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 pledges all
taxes, other income, revenue, cash receipt_s and other moneys of the
City remaining uncollected on July 22, 1976, and thereafter collect-
ed by the City on or before June 22, 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
tenn 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 affixed hereto this 22-.l day of July, 1976. · -
CITY OF ·pALQ ALTO -.
[Seal] By
·countersigned: City Treasurer
City Clerk
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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 (the "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 19, 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 •
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on said date at the meeting place of the Coun9il 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 of California, and will be SO in number, number-
ed 1 to SO, both inclusive, of the denomination of $100,000 each,
in the aggregate principal amount of $5,000,000, all dated July 22,
1976 and ·all maturinq on June 22, 1977 (without option of prior
redemption). The notes will bear interest at such rate or rates,
not to exceed eight percent (8•) per annum, as shall be named by
the successful bidder there(or. Each bidder may name any number
of different rates for the notes, provided that each rate so named
shall be a multiple of l/100 of 11 and that no one note shall bear
more than one rate of interest. Interest on the notes shall be
paid at the iaaturity thereof. Each bidder shall et.ate separately
. .
inhis bid the rate of interest that he desires notes of specified
numbers to bear and the premium offered, if any.
Both the principal of and interest on the notes shall
be payable in lawful money of the United States of America at
-the office of the City Treasurer of the City in Palo Alto,
California. Payment of the principal of and interest on the
notes will be made from City taxes and other income, revenue,
cash receipts and other moneys remaining uncollected.on July 22,
1976 and to be received on or before June 22, 1977 (excluding
taxes levied to pay the principal of and interest on bonded-
indebtedness of the City1 moneys which when received will be
encumbered for a special purpose and utility revenues required
for utility maintenance and operation), all of which are pledged
for the payment of the notes and interest thereon.
The-notes will be awarded and sold to the bidder or
bidders who$e bid represents the lowest net interest cost to the
City, such interest to be computed from the date of the notes to
June 22, 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 all the notes and not less than
the par value thereof and must be accompanied by a separate certi-
fied check or cashier's check or cash deposit in the sum of $5,000
payable to the order of the City Treasurer of the City of Palo Alto.
Checlcs or cash deposits will be returned to unsuccessful bidders
whose bida are rejected, and the check or cash deposit of the
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successful bidder for the ·notes will be forfeited in case he fails
to accept 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 immediately 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
charqe.
Dated: July 9, 1976.
City Treasurer of the City of
Palo Alto, California
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