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HomeMy WebLinkAboutRESO 4317RESOLUTION NO. 4317 ORIGINAL RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO PROVIDING FOR THE ISSUANCE OF $3,500,000 PRINCIPAL AMOUNT OF "CITY OF PALO ALTO 1970 SEWER UTILITY BONDS"; PRESCRIBING THE DATE AND FORM OF THE BONDS AND OF THE COUPONS TO BE ATTACHED THERETO; FIXING THE MAXIMUM RATE OF INTEREST ON THE BONDS, AND PRE- SCRIBING THE MATURITIES THEREOF; AUTHORIZING THE EXECUTION OF THE BONDS AND COUPONS; PROVIDING FOR THE LEVY OF A TAX TO PAY THE PRINCIPAL AND INTEREST THEREOF; AND DIRECTING NOTICE OF SALE OF THE BONDS TO BE GIVEN WHEREAS, all the requirements of law have been com- plied with in calling and holding the special municipal bond election (the "election") held in the City of Palo Alto (the "City") on November 5, 1968, which election was duly consol- idated with the State of California General Election held in the City and in the County of Santa Clara on said date, at which election a measure (the "measure") to issue bonds of the City in the principal amount of $3,500,000 for the object and purpose hereinafter stated was submitted to the voters of the City; and the Council of the City did duly and regularly confirm the canvass of the returns of the election by the Board of Supervisors of Santa Clara County and did by said confirmation_determine and declare, and does hereby certify, that the measure received at the election the affirmative vote of more than two-thirds of all of the voters voting on the measure at the election and the measure was thereby carried and adopted by the election, and the )ti -4A) —4' \11f;/; ,?0-c1 iall, te/ j) f.fr. �rli.L•t.o+ / A ' n tI;.. • • issuance of such bonds by the City for the purpose set forth in the measure was duly authorized: NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Palo Alto, as follows: Section 1. (a) Unless the context otherwise requires, the terms defined in this Section 1(a) shall for all purposes of this resolution have the meanings herein specified: Bonds The term "bonds" shall mean the "City of Palo Alto 1970 Sewer Utility Bonds." City The term "City" shall mean the City of Palo Alto. Clerk - The term "Clerk" shall mean the City Clerk of the City. Controller The term "Controller" shall mean the City Con- troller of the City. Council The term "Council" shall mean the Council of the City. Mayor The term "Mayor" shall mean the Mayor of the City. Treasurer The term "Treasurer" shall mean the Treasurer of the City. (b) The Council has reviewed all proceedings hereto- fore taken relative to the authorization of the bonds and has found, as a result of such review, and hereby finds and deter- mines that all acts, conditions and things required by law to exist, happen and be performed precedent to and in the issuance 2 of the bonds have existed, happened and been performed in due time, form and manner as required by law, and the City is now authorized pursuant to each and every requirement_of law to issue the bonds and incur indebtedness in the manner and form as in this resolution provided. Section 2. Bonds of the City shall issue to pay the cost of the acquisition, construction and completion of the municipal improvement of the City set forth in the follow- ing measure, to wit: MEASURE (F): Shall the City of Palo Alto ( enrage incur a bonded indebtedness Treatment in the principal amount of . Facilities) $3,500,000 for the acquisi- tion, construction and com- pletion of the following municipal improve- ment, to wit: Sewage treatment facilities, including treatment plant enlargements, trunk and outfall 'lines, pipes, pumps, machinery, equipment, connections, lands, easements, rights of way and other works, property and structures necessary or convenient for sewage treatment facilities for the City of Palo Alto? Section 3. The bonds shall be issued as herein- after set forth, and shall be sold in accordance with law at not less than their par value and accrued interest. The bonds shall be $3,500,000 in ag1,regate principal amount and shall be known as "City of Palo Alto 1970 Sewer Uti3ity Bonds". The bonds shall be negotiable in form and of the character known as serial; shall be numbered consecutively from 1 to 700, in order of maturity; and shall be of the denomination of $5,000 each. The bonds shall be dated January 1, 1970 (which is hereby fixed and determined to be the date of the issuance of the bonds). All of the bonds shall bear interest from their date until paid at -the rate or rates designated by the Council at the time of the sale of the bonds, but not to 3 exceed six percent (6%) per annum, payable annually the first year and thereafter semiannually. 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 attached (except the first coupon, which shall represent twelve months' interest). Said interest coupons shall be payable on January 1 and July 1 in each year (except that the first coupon shall be payable on January 1, 1971) until and at the respective dates of maturity of the bonds. The bonds shall mature and be payable in consecutive numerical order, from lower to higher, as follows: Maturity Date Principal (July 1) Amount (all years inclusive) $210,000 1971 225,000 1972 240,000 1973 255,000 1974 270,000 1975 275,000 1976 300,000 1977 325,000 1978 - 1979 350,000 1980 375,000 1981 350,000 1982 Both the principal of and interest on the bonds shall be payable in lawful money of the United States of America at the San Francisco Main Office of Bank of America National Trust and Savings Association (the "Paying Agent") in San Francisco, California, or, at the option of the holder, at the principal office of The Chase Manhattan Bank, -National Association in -New York, New York, or at the office of Continental Illinois National Bank and Trust Company of Chicago in Chicago, Illinois. 4 • Bonds maturing by their terms on or prior to July 1, 1977, are not subject to call or redemption prior to their fixed maturity dates. Bonds maturing by their terms on and after July 1, 1978, are subject to call and redemption, at the option of the City, as a whole, or in part in inverse numerical order on July 1, 1977 (but not prior thereto), and on any interest payment date thereafter prior to their fixed maturity date or dates at the principal amount thereof and accrued interest thereon to date of redemption, together with a premium of 1/2 of 1% of such principal amount for each whole year and for any fraction of a year remaining from the date of redemption to the maturity date of the bonds so redeemed. Notice of such redemption shall be given by pub- lication of such notice once a week for two (2) successive calendar weeks in a newspaper of general circulation printed and published in San Francisco, California, the first publi- cation of which shall be at least thirty (30) days but not more than sixty (60) days prior to the date fixed for such redemption. After the date fixed for such redemption, if the_. City -shall have duly published notice of such redemption and shall have provided funds for the payment of principal of and interest on the bonds so called for redemption, interest Jn such bonds shall thereafter cease. The City covenants that it will, while any of the bonds are outstanding and unpaid, keep at the office of the Paying Agent books for the registration of the bonds as herein provided, and the Paying Agent is hereby appointed the registrar of the City for the purpose of registering the bonds. 5 1 • The bonds may be registered as to principal only or as to both principal and interest in the manner set forth in the registration certificate herein contained pertaining to such bonds. Bonds registered as to both principal and interest may be discharged from registration and converted into coupon bonds. A person in whose name a bond shall be registered shall be deemed the absolute owner and, so long as the same shall be registered as to principal and interest, payments of or on account of the principal and interest there- of shall be made only to the registered owner. Payment of the principal of a registered bond shall be made only to the registered owner of such bond, but the bearer of any coupon appertaining to an unregistered bond or to a bond registered as to principal only or registered to bearer shall be deemed the absolute owner of such coupon, and the bearer of any un- registered bond or a bond registered to bearer shall be deemed the absolute owner of such bond, and the City and the Paying Agent, or any Alternate Paying Agent, shall be fully protected in making payment of such unregistered bond or coupon to the bearer thereof. In all cases in which the privilege of transferring, registering or reconverting a bond is exercised, the Paying Agent may make a charge sufficient to reimburse it for any tax, fee or other governmental charge required to be paid by the City or the Paying Agent in connection therewith, and in addition may charge a reasonable sum for its costs and ex- penses in the reconversion of any such bond registered as to both principal and interest into a bond registered as to 6 principal only, or into a bond the principal and interest of which is payable to bearer, not exceeding $1 per $1,000 principal amount of bonds so converted or such larger amount as may be permitted by law, which sum or sums shall be paid by the person requesting such transfer, registration or reconversion. Section Z. The bonds and the coupons attached thereto and the registration endorsement to appear thereon shall each be substantially in the following form, the blanks in said forms to be filled with appropriate words or figures, namely: (Form of bond) UNITED STATES OF AMERICA STATE OF CALIFORNIA SANTA CLARA COUNTY CITY OF PALO ALTO 1970 SEWER UTILITY BOND No. $5,000 The City of Palo Alto, a municipal corporation organized and existing under the Constitution and laws of the State of California (the "City"), hereby acknowledges itself indebted and for value received promises to pay to the bearer (or if this bond be registered, to the registered owner hereof), on July 1, 19 (subject to any right of prior redemption here- inafter reserved), the principal sum of FIVE THOUSAND DOLLARS ($5,000) together with interest thereon from the date hereof until pay- ment of said principal sum in full, at the rate of percent ( %) per annum, payable annually the first year on January 17-1771, and thereafter semiannually on January 1 and July 1 of each year. Unless this bond be registered as to principal and interest, such interest on or 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 interest on this bond are payable in lawful money of the United States of America at the San Francisco Main Office of Bank of America National Trust and Savings Association in San Francisco, California, or, at the option of the holder, at the principal office of The Chase Manhattan Bank, National Association in New York, New York, or at the office of Continental Illinois National Bank and Trust Company of Chicago in Chicago, Illinois. This bond is one of a duly authorized issue of bonds of the City aggregating Three Million Five Hundred Thousand ($3,500,000) in principal amount, all of like tenor (except for such variations, if any, as may be required to designate vary- ing numbers, maturities, interest rates or redemption provisions) and is issued under and pursuant to the Constitution and statutes of the State of California, and under and pursuant to the ordi- nance and proceedings of the City duly adopted and taken and a vote and assent of more than two-thirds of all the qualified electors of the City voting at a special election duly called and held for that purpose. Bonds maturing by their terms on or prior to July 1, 1977, are not subject to redemption prior to their fixed maturity dates. Bonds maturing by their terms on or after July 1, 1978, are subject to redemption, at the option of the City, as a whole, or in part in inverse numerical order, on July 1, 1977 (but not prior thereto), and on any interest payment date thereafter prior to their fixed maturity date or dates, at the principal amount thereof and accrued interest thereon to date of redemption, together with a premium of 1/2 of 1% of such principal amount for each whole year and for any fraction of a year remaining from the date of redemption to the maturity date of the bonds so redeemed. • 1 This bond may be registered in the name of the owner hereof in conformity with the provisions endorsed hereon, and unless so registered shall be transferable by delivery. It is hereby certified, recited and declared that all conditions, things and acts required by law to exist, happen and 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 law, and that the amount of this bond, together with all other indebtedness of the City, does not ex- ceed any limit prescribed by the Constitution or statutes of said State, and that provision has been made as required by the Constitution and statutes 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 the City are hereby pledged for the punctual payment of the principal of and interest on this bond. IN WITNESS WHEREOF, the City of Palo Alto has caused this bond to be executed under its official seal, signed by its Mayor and its Treasurer, and countersigned by its City Clerk, and has caused the interest coupons attached hereto to be signed by its Treasurer, and this bond to be dated January 1, 1970. Mayor of the City of Palo Alto [SEAL] Countersigned: Treasurer of the City of Palo Alto City Clerk of the City of Palo Alto (Form of interest coupon) Coupon No. The CITY OF PALO ALTO on 1, 19 , will (unless the within -mentioned bond be registered as to principal and in- terest, and subject to any right of prior redemption reserved in said bond) pay to the bearer at the San Francisco Main Office of Bank of America National Trust and Savings Association in San Francisco, California, or, at the option of the holder, at the principal office of The Chase Manhattan Bank, National Association in New York, New York, or at the office of Continental Illinois National Bank and Trust Company of Chicago in Chicago, Illinois, the sum set $ forth hereon in lawful money of the United States of America, being interest then due on its 1970 Sewer Utility Bond, dated January 1, 1970 No. Treasurer of the City of Palo Alto 9 (Form of registration endorsement) This bond may be registered in the name of the owner on books kept by the Paying Agent of the City, as to principal only, such registration being noted hereon by said Paying Agent in the registration blank below, after which no transfer shall be valid unless made on said books by the registered owner or attorney duly authorized and similarly noted in the registration blank below, but it may be discharged from regis- tration by being transferred to bearer, after which it shall be transferable by delivery, but it may be again registered as before. The registration of this bond as to principal shall not restrain the negotiability of the coupons by delivery, but the coupons may be surrendered and the interest made payable only to the registered owner, in which event said Paying Agent shall note in the registration blank below that the bond is registered as to interest, as well as principal. At the re- quest of the registered owner, this bond, if converted into a bond registered as to both principal and interest, may be re- converted into a coupon bond at the expense of the owner and such coupon bond may again be converted into a bond registered as to both principal and interest as hereinabove provided. Upon reconversion of this bond, if registered as to principal and interest, into a coupon bond, coupons representing the interest to accrue hereon to date of maturity shall be re- attached hereto by said Paying Agent and said Paying Agent shall note in the registration blank below whether the bond Is registered as to principal only or payable to bearer. NOTE: There must be no writing in the space below except by the Paying Agent. SIGNATURE f DATE OF NAME or ADDRESS OF MANNER OF OFFICERZED OF REGISTRATION REGISTERED OWNER REGISTERED OWNER REGISTRATION PAYING AGENT 10 • • Section 5. The Mayor and the Treasurer are hereby authorized and directed, respectively, as such officers, to execute each of the bonds on behalf of the City, and the Clerk, or one or more of her deputies, is hereby authorized and directed to countersign each of the bonds and to affix the official seal of the City thereto. Such seal may be printed, engraved, stamped, or otherwise placed by facsimile thereon. The Mayor and Clerk are hereby each authorized to cause the bonds to be signed by printed, lithographed or engraved facsimile signature. The 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 a sufficient and binding execution of the bonds and coupons by the City, and all such signatures and countersignatures, ex- cepting that of the Treasurer on the bonds, 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 the delivery of the bonds to the purchaser, such signature or countersignature shall nevertheless be valid and sufficient for all purposes the same as though he had remained in office until the delivery of the bonds. section o. •rne revenue or the sewer system of the City shall be kept in a separate fund from all other receipts and shall be used for the purposes and in the order as fol- lows: 11 a. For the payment of the operating and main- tenance expenses of said system, including the necessary contribution to retirement of its employees. b. For the payment of interest on the bonded debt (including the bonds) incurred for the construction or acquisition of said system. c. For the payment of the principal of said debt (including the bonds), as it may become due. d. For such other purpose or purposes as may be permitted or required by the Charter of the City. In addition to the foregoing, for the purpose of paying the principal of and interest on the bonds, the Council shall, at the time of making the general tax levy after incurring the bonded indebtedness, and annually there- after until the bonds are paid or until there is a sum in the treasury set apart for that purpose sufficient to meet all payments of principal and interest on the bonds as they become due, levy and collect a tax sufficient to pay the in- terest on the bonds and such part of the principal as will become due before the proceeds of a tax levied at the next general tax levy will be available. Such taxes shall be levied and collected as other City taxes and shall be in addition to all other taxes and shall be used only for pay- ment of the bonds and interest thereon. Said taxes as col- lected shall be forthwith paid into the fund for which the same were levied and collected and which shall be designated "City of Palo Alto 1970 Sewer Utility Bond Interest and Redemption Fund," and all sums to become due for the prin- cipal of and interest on the bonds shall be paid from such fund. There shall likewise be deposited in said fund any moneys received on account of any premium paid on the bonds and interest accrued on the bonds from their date to the date of delivery and actual payment of the purchase price thereof. When all of the principal of and interest on all of the bonds have been paid, any balance of money then re- maining in said fund shall be transferred to the general fund of the City. Section 7. There is hereby created and established a fund to be known as the "City of Palo Alto 1970 Sewer Utility Improvement Fund," which shall be kept by the Controller, and all proceeds of the sale of the bonds (except premium and accrued interest received on such sale) 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 exclusively to the purposes and objects specified in the measure set forth in Section 2 of this resolution; provided, however, that when such purposes and objects have been accomplished, any moneys remaining in said fund shall be transferred to the City of Palo Alto 1970 Sewer Utility Bond Interest and Redemp- tion Fund and be used for the payment of the principal of and interest on the bonds. Section 8. The Clerk is directed to cause a suffi- cient number of blank bonds and coupons of suitable quality to be lithographed, printed or engraved, and to cause the blank spaces thereof to be filled in to comply with the pro- visions hereof, and to procure their execution by the proper officers, and to deliver them, when so executed, to the Trea- surer who shall safely keep the same until they shall be sold by the Council, whereupon he shall deliver them to the purchaser or purchasers thereof, on receipt of the purchase price. The Mayor, Treasurer and Clerk are further authorized and directed to make, execute and deliver to the purchaser of the bonds a signature and no -litigation certificate in the form customarily required by purchasers of municipal bonds, certifying to the genuineness and due execution of the bonds and further certify- ing to all facts within their knowledge relative to any liti- gation which may or might affect the City, said officers or the bonds, and the Treasurer is further authorized and directed to make, execute and deliver to the purchaser of the bonds a receipt in the form customarily required by purchasers of muni- cipal bonds, evidencing the payment of the purchase price of the bonds, which receipt shall be conclusive evidence that said purchase price has been paid and has been received by the City. Any purchaser or subsequent taker or holder of the bonds is hereby authorized to rely upon and shall be justified in rely- ing upon such signature and no -litigation certificate and such receipt with respect to the bonds executed pursuant to the authority of this resolution. Section 9. All of the bonds shall be offered for public sale by the Council on the date hereinafter specified and the Clerk is hereby authorized and directed to cause a notice of the sale of the bonds to be published once in THE PALO ALTO TIMES, a newspaper published in the City. Such notice shall be substantially in the following form, to wit: OFFICIAL NOTICE OF SALE $3,500,000 CITY OF PALO ALTO 1970 SEWER UTILITY BONDS NOTICE IS HEREBY GIVEN that sealed proposals will be received and opened by the City Clerk of the City of Palo Alto (the "City") on behalf of the Council (the "Council") of the City, Santa Clara County, California, at City Hall, 1313 Newell Road, Palo Alto, California, on TUESDAY, JANUARY 27, 1970 at the hour of 11:00 A.M. for the purchase of $3,500,000 prin- cipal amount of bonds of the City designated "City of Palo Alto 1970 Sewer Utility Bonds" (the "bonds"), more particularly described below: ISSUE AND DENOMINATION: $3,500,000, consisting of 700 bonds, numbered 1 to 700, both inclusive, of the denomination of $5,000 each. DATE: The bonds are dated January 1, 1970. MATURITIES: The bonds mature serially in consecutive numer- ical order, from lower to higher, as follows: Maturity Date Principal (July 1) Amount (All years inclusive) $210,000 1971 225,000 1972 240,000 1973 255,000 197+ 270,000 1975 275,000 1976 300,000 1977 325,000 1978 - 1979 350,000 1980 375,000 1981 350,000 1982 INTEREST RATE: Maximum six percent (6%) per annum, payable on January 1, 1971, and thereafter semiannually on January 1 and July 1 in each year. Bidders must specify the rate or rates of interest which the bonds shall bear. Bidders may specify any number of separate rates of interest, provided that: (i) the difference between the lowest and highest coupon rates named in any bid shall not exceed 1/2 of 1%; (ii) no bond shall bear more than one rate of interest, no interest payment shall be evidenced by more than one coupon, and supplemental coupons will not be permitted; (iii) each bond shall bear interest from its date to its stated maturity at the interest rate specified in the bid; (iv) each interest rate specified must be in a multiple of 1/20 of 1%, and a zero rate of interest cannot be specified; (v) all bonds maturing in the same year shall bear the same rate of interest; and (vi) any premium must be paid in bank funds as part of the purchase price, and no bid will be accepted which contemplates the cancellation of any interest coupons or for the waiver of any interest or other concession by the bidder as a substitute for payment in full of the purchase price in bank funds. Bids which do not conform to the terms of this paragraph will be rejected. 15 REDEMPTION: Bonds maturing by their terms on or prior to July 1, 1977, an aggregate principal amount of $1,775,000, are not subject to call or redemption prior to their fixed maturity dates. Bonds maturing by their terms on and after July 1, 1978, an aggregate principal amount of $1,725,000, are subject to call and redemption, at the option of the City, as a whole, or in part in inverse numerical order on July 1, 1977 (but not prior thereto), and on any interest payment date thereafter prior to their fixed maturity date or dates at the principal amount thereof and accrued interest thereon to date of redemption, together with a premium of 1/2 of 1% of such principal amount for each whole year and for any fraction of a year remaining from the date of redemption to the maturity date of the bonds so redeemed. PAYMENT: Both principal and interest are payable in lawful money of the United States of America at the San Francisco Main Office of Bank of America National Trust and Savings Association in San Francisco, California, or, at the option of the holder, at the principal office of The Chase Manhattan Bank, National Association in New York, New York, or at the office of Continental Illinois National Bank and Trust Company of Chicago in Chicago, Illinois. EXECUTION AND Coupon bonds will be issued by the CitS. The REGISTRATION: bonds will be executed by the manual signature of at least one official authorized to execute the bonds. The bonds are registrable as to principal only or as to both principal and interest. Registered bonds are con- vertible into coupon bonds. PURPOSE OF The bonds are authorized by vote of two-thirds fSSUE: of the qualified voters voting at a special municipal bond election for the purpose of authorizing bonds for sewer improvements for the City. SECURITY: The bonds are general obligations of the City and the City has power and is obligated to levy ad valorem taxes for the payment of the bonds and the interest thereon upon all property within the City subject to taxation by the City (except certain personal property, which is taxable at limited rates) without limitation of rate or amount. In addition, the City is required by Article VII, Section 2, of its Charter to keep the revenue from its sewer system in a separate fund and to use said revenue, first, for the payment of operating and maintenance expenses of its sewer system, including necessary contribution to retirement of its employees; second, for payment of interest on bonds issued for construction or acquisition of its sewer system; third, for payment of the principal on said 'ponds; and thereafter for certain other purposes set forth in said Section of the Charter. The City has provided in the reso- lution issuing the bonds for the priority of the payments set forth above. • • TAX EXEMPT In the event that prior to the delivery of STATUS: the bonds (a) the income received by any private holder from bonds of the same type and character shall be declared to be taxable (either at the time of such declaration or at any future date) under any federal income tax laws, either by the terms of such laws or by ruling of a federal income tax authority or official which is followed by the Internal Revenue Service, or by decision of any federal court, or (b) any federal in- come tax law is adopted which will have a substantial ad- verse tax effect on holders of the bonds as such the suc- cessful bidder may, at his option, prior to the tender of the 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, Herrington, Rowley & Sutcliffe, of San Francisco, California, approving the validity of the bonds, will be furnished to the successful bidder without charge. A copyof the legal opinion, certified by the official in whose office the original is filed, will be printed on each bond without charge to the successful bidder. TERMS OF SALE Highest Bid: The bonds will be awarded to the highest bidder, considering the interest rate or rates specified and the premium offered, if any. The highest bid will be deter- mined 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 the bonds to the 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 thus determined. The purchaser must pay accrued interest from the date of the bonds to the date of delivery. All interest shall be computed on a 360 -day year basis. The cost of printing the bonds will be borne by the City. Right of The Council reserves the right, in its dis- Rejection: cretion, to reject any and all bids and to waive any irregularity or informality in any bid. Prompt Award: The Council will take action awarding the bonds or rejecting all bids not later than 12 hours after the expiration of the time herein prescribed for the re- ceipt of proposals, unless such time of award is waived by the successful bidder. Prompt notice of the award will be given to the successful bidder. Delivery Delivery of the bonds will be made to the success - and Payment: ful bidder at San Francisco Main Office of Bank of America National Trust and Savings Association in San Francisco, California, as soon as the bonds can be pre- pared, which it 1s estimated will be within 30 days from the date of sale thereof. 17 Right of Cancellation: tender the same of sale thereof entitled to the 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 for delivery within sixty (60) days from the date , and in such event the successful bidder shall be return of the deposit accompanying his bid. Form of Bid: All bids must be for not less than all of the bonds, and for not less than the par value there- of and accrued interest to' date of delivery. Each bid, together with bidder's check, must be enclosed in a sealed envelope ad- dressed to the City Clerk of the City, and endorsed "Proposal for City of Palo Alto 1970 Sewer Utility Bonds." All bids must either be mailed to the City Clerk, 1313 Newell Road, Palo Alto, Cali- fornia 94303 in time to be received by 10:00 A.M. on January 27, 1970, or delivered to the City Clerk at said place by 11:00 A.M. on such date. Bid Check: With each bid must be submitted a certified check or cashier's check for $35,000 drawn on a bank or trust company transacting business in the State of California, payable to the order of the Treasurer of the City, to secure the City from any loss resulting from the failure of the bidder to comply with the terms of his bid. Checks of the unsuccessful bidders will be returned by the City Clerk by mail promptly upon the award of the bonds. No interest will be paid upon the de- posit made by any bidder. Estimate of Net Bidders are requested, but not required to Interest Cost: supply an estimate of the total net interest cost to the City on the basis of their res- pective bids, which shall be considered as informative only and not binding on either the bidder or the City. Official The City has prepared an Official Statement, Statement: a copy of which will be furnished upon re- quest addressed to Bartle Wells Associates, 260 California Street, San Francisco, California 94111, the City's financing consultants. There is no litigation pending concerning the validity of the bonds, the corporate existence of the City, or the title of the officers thereof to their respective offices, and the City will furnish to the successful bidder a=no-litigation certi- ficate certifying to the foregoing as of and at the time of the delivery of the bonds. DATED: December 15. 69 ty of a o Alto 18 Section 10. to the bonds, on file Wells Associates, the approved. Section 11. and after its passage following AYES: NOES: ABSENT: [SEAL] ATTEST: APPROVED: The form of Official Statement relative with the Clerk, prepared by Bartle City's financing consultant, is hereby This resolution shall take effect from and approval. PASSED AND ADOPTED on December 15, 1969, by the vote: Councilmen Arnold, Beahrs, Berwald, Clark, Dias, Gallagher, Norton, Pearson, Spaeth, Wheatley None Comstock APPROVED: /1:06144042 ayor of the City of Palo Alto, California ORRICK, HERRINGTON, ROWLEY & SUTCLIFFE Bond Counsel 19 I. . • • CITY CLERK'S CERTIFICATE I, /s/ Jacqueline C. Flamm, City Clerk of the City of Palo Alto, California, do hereby certify as follows: The foregoing is a full, true and correct copy of a resolution duly adopted by the Council of said City, at a regular meeting of said Council duly and regularly and legally held at the regular meeting place thereof on December 15, 1969, of which meeting all of the members of said Council had due notice and at which a majority thereof was present. At said meeting said resolution was introduced by Councilman C. Grant Spaeth and was thereupon, upon motion of Councilman Spaeth , seconded by Councilman Wheatley , adopted by the following vote: AYES: Councilmen Arnold, Beahrs, Berwald, Clark, Dias, Gallagher, Norton; Pearson, Spaeth, Wheatley NOES: None ABSENT: Comstock I have carefully compared the same with the original minutes of said meeting on file and of record in my office and the foregoing is a full, true and correct copy of the original resolution adopted at said meeting and entered in said minutes. The original resolution has not been amended, modified or rescinded since the date of its adoption and the same is now in full force and effect. [SEAL] Dated: December 16 , 1969. e ty o alo A to, California