R 0533
RESOLUTION NO. "33
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ARROYO GRANDE, CALIFORNIA,
CALLING FOR SEALED BIDS ON BONDS TO
BE ISSUED TO REPRESENT UNPAID ASSESS-
MENTS UPON LANDS IN ASSESSMENT DIS-
TRICT NO. 70-61-1 OF SAID CITY.
WHEREAS, pursuant to Resolution of Intention,
Resolution No. 517. adopted February 27, 1962, and pro-
ceedings taken pursuant thereto under and in accordance
with the Municipal Improvement Act of 1913. Division 12
of the Streets and Highways Code of the State of Cali-
fornia, this City Council fixed and established the
boundaries of Assessment District No. 70-61-1 of said
city, and found that public interest and convenience
require, and ordered certain improvements for said dis-
trict; and
WHEREAS, said proceedings pursuant to said Munici-
pal Improvement Act of 1913 were taken for the purpose of
having constructed certain sewer improvements and appurte-
nant work in Huasna Road and other streets within said city;
and
WHEREAS, an assessment of the cost and expense
of said improvements was duly made and filed, and a hearing
was duly had thereon, and said assessment was thereafter
duly confirmed by this City Council and was duly recorded
by filing the same in the office of the Superintendent of
Streets of said city on April 17, 1962; and
WHEREAS, following the elapse of thirty (30)
days after the date of filing said notice the City Clerk,
the officer designated to receive cash payments of assess-
ments, filed in the office of the City Treasurer of said
city a list of all assessments contained within said
assessment which are unpaid and the amounts thereof un-
paid; and
WHEREAS, it is necessary and desirable that this
City Council sell bonds to be issued to represent each unpaid
assessment, the amount of which is $50.00 or more, except
those on public property; and
WHEREAS, this City Council determined that said
bonds would be issued pursuant to the Improvement Act of
1911, Division 7 of said Streets and Highways Code;
NOW, THEREFORE, the City Council of the City of
Arroyo Grande, California, DOES HEREBY RESOLVE, DETERMINE
AND ORDER as follows:
Section 1. That 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 here-
inafter set forth.
Section 2. That this City Council hereby selects
and specifies as the date of the bonds the date specified
for that purpose in the notice hereinafter set forth.
Section 3. That the City Clerk shall cause a
notice inviting such bids to be given by two publications
2.
in the HERALD RECORDER, a newspaper circulated in said
city, the first publication to be at least ten (10) days
before the bids are to be opened. Said notice shall be in
substantially the following form:
NOTICE INVITING BIDS ON
STREET IMPROVEMENT BONDS
NOTICE IS HEREBY GIVEN that the City Council of
the City of Arroyo Grande, California, will receive sealed
bids for the purchase of the following described bonds at
its Chambers in the City Hall in said city up to the hour
of 8:00 o'clock P.M., June 26, 1962.
The bonds to be sold are bonds to be issued to
represent unpaid assessments levied upon the lands within
Assessment District No. 70-61-1 of said city to pay the cost
of the certain sewers and appurtenant work in said city, are
authorized by proceedings taken pursuant to the Municipal
Improvement Act of 1913, Division 12 of the Streets and
Highways Code of the State of California, and are to be
issued pursuant to the Improvement Act of 1911, Division 7
of said Code. Said bonds are thirtY~hr98 (33) in number
and of varying principal amounts totaling the sum of
$31,267..97 . Said bonds are dated July 2, 1962, and bear
interest from that date at a rate of not to exceed six
per cent (6%) per annum. The first interest is payable
on January 2, 1963, and thereafter the interest is payable
semiannually on July 2 and January 2. The principal of
said bonds is payable by coupon in ten (10) even annual
3.
installments payable on January 2 of each year beginning
January 2, 1963. Said bonds are similar to bonds issued
under the Improvement Act of 1911, Division 7 of the Streets
and Highways Code, and, except as otherwise provided in
said Municipal Improvement Act of 1913, the provisions
of Part 5 of said Improvement Act of 1911 apply to said
bonds and govern as to the issuance, collection and enforce-
ment thereof.
In each of said bonds the right will be reserved
to redeem such bond at any time before maturity upon pay-
ment of the then unpaid principal with interest thereon to
the due date of the next maturing interest coupon, together
with a premium of five (5) per cent of said unpaid principal.
Each bond is a lien upon the property upon which
the assessment represented by such bond was levied. For a
description of the respective lots, pieces and parcels of
land upon which the several bonds are liens, and for other
information, reference is made to the assessment recorded
in the office of the Superintendent of Streets of said city
and to the List of Unpaid Assessments in said matter on
file in the office of the City Treasurer of said city.
Said bonds are to be sold for cash only to the
best responsible bidder. The bonds may be sold at a price
below their par value, but the amount of any discount bid
shall not exceed five per cent (5%) of the par value of
the bonds. Each bid shall state that the bidder offers
to buy said bonds, the total price offered, together with
accrued intere~xodate of delivery, and shall state the
4.
interest rate, not to exceed six per cent (6%) per annum,
payable as above provided, at which the bidder offers to
buy said bonds. Each bidder 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. Any premium
offered will not be taken into consideration in determining
the best bid except for the purpose of breaking a tie be-
tween two bids stating the same interest rate. A bidder
may offer a premium but such premium will be payable only
if such premium is used to break a tie between that bid
and some other bid or bids stating the same interest rate.
Only one interest rate may be bid which rate may be stated
in any multiple of l/lOOth of 1% or any multiple of 1/8th
of 1%. No bid for a part of said bonds will be considered.
The bonds will be awarded to the highest respons-
ible bidder or bidders considering the total price offered,
the interest rate specified and the premium offered, if any.
The net cost to the a1ty 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 would
be payable from the date of said bonds to the maturity
date thereof at the coupon rate specified in the bid. llie
net cost on any bid or bids offering less than par will
be determined by adding to the total amount of interest
which would be payable from the date of said bonds to the
maturity date thereof at the coupon rate specified in the
bid the amount of the discount bid. llie award will be
made to the bidder or bidders offering the lowest net
cost. In the event that two or more bidders have bid
5.
the same lowest net cost, the award shall be made by lot.
Interest shall be computed on a 360-day year basis. fue
cost of printing the bonds will be an incidental expense
of the proceedings and will not be payable by the successful
bidder.
A certified or cashier's check on a responsible
bank or trust company, in the amount of three per cent (3%)
of the principal amount of the bonds bid for, payable to the
order of the City of Arroyo Grande, must accompany each
proposal as a guaranty 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 shall be 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 the city.
The check accompanying each unaccepted proposal will be
returned promptly.
fue opinion of O'Melveny & Myers, attorneys,
approving the validity of said bonds will be furnished the
successful bidder at or prior to the date of delivery of
the bonds, at no expense to the bidder. Payment for and
delivery of said bonds shall be made in the office of the
City Treasurer.
It is expected that delivery of said bonds will
be made on or about July 26, 1962.
The bids will be opened at the meeting of the
City Council of said city to be held June 26, 1962, at 8:00
o'clock P.M., in the Council Chambers in the City Hall.
Bids will be opened during said meeting at or after 8:00
o'clock P.M.
6.
'<'-"'~-"'~"'--
The City Counoil reserves the right to reJeot
any or all bids, and to waive any irregularity or inform-
ality in any bid to the extent permitted by law.
Given by order of the City Counoil of the City of
Arroyo Grande, California, adopted June 12, 1962.
ADOPTED, SIGNED AND APPROVED this 12th day of
June, 1962.
'&~e~y ?~
Arroyo Grande, California.
ATTEST:
(SEAL)
-_.-,---,._---."-
.
STATE OF CALIFORNIA ~
COUNTY OF SAN LUIS OBISPO ss.
CITY OF ARROYO GRANDE
I, MARGARET L. WILSON, C1ty Clerk of the C1ty
of Arroyo Grande, Ca11fornia, DO HEREBY CERTIFY that the
foreg01ng resolut10n was duly adopted by the Oity Council
of said city and was approved by the Mayor of said city
at a regular meeting of said City Council
held on the 12th day of June, 1962, and that 1t wa. .0
adopted as follows:
AYES : Councilmen Burt. Wood. JAl!oba and )(,.V.11
NOES : Councilmen None
ABSENT: Councilmen Lee
(SEAL)