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Home My Public Portal About77-092 (10-25-77)e. 2 .. l:. ~~~+G.. •••,:s... .....m^'.+:a[aa. ::0.T.m;S 'l..nWR+nav':k ~.^n9',Y.)x#eF~. M'J'#i~bA'. +4w~L'Li.V#YY~AT'.NMS:+°piP~ :w: New n1:~x:~. • r RESOLUTION NO. 77-92 RESOLUTION OF THE CITY COUNCIL OF THE CITY r OF LYNWOOD, AUTHORIZING SAID CITY TO ISSUE $5-00,000 NEGOTIABLE PROMISSORY NOTES, PROVIDING FOR THE SALE OF SAID NOTES AND .FIXING TIME. AND PLACE FOR TAKING BIDS THEREFOR WHEREAS, the City of Lynwood is a municipal corporation of the State of California; and WHEREAS, the City may issue .negotiable promissory notes pursuant to Sections 53850 et seq. of the Government Code of the-State of California for City purposes; and WHEREAS, this City Council deems it proper that notes in the amount bf $500,000 be issued and that bids be invited for said notes and that, if_ bids are satisfactory, said notes be sold in the manner and at the time and place herein- after set. forth; NOW, THEREFORE, the City Council of the City of Lynwood DOES HEREBY RESOLVE, DETERMINE AND ORDER as follows SECTION 1. That funds are needed for immediate lawful City purposes and that in order to provide funds with which to meet such obligations, it is necessary and desirable that the City authorize the issuance of $500,OD0 negotiable promissory notes pursuant to Sections 5.3850 et seq. of the Government Code _ of the .State of California, which shall be general obligations of the City payable in the manner hereinafter provided. SECTION 2. That .said notes shall be dated October 25, 1977, shall be in the denomination of $50,000 (or, at the option of the purchaser, any lesser amount in multiples of $5,0.00), shall mature on June 30, 1978, and shall bear interest at a t. .. t ' r' ~ ~ 4 rate to be hereinafter fixed, not to exceed eight percent (,80) per annum, said interest to be payable on June 30, 1978. SECTION 3. That the total aggregate amount of said notes outstanding at any one time, when added to the interest payable thereon, shall not exceed eighty-five percent (850) of the estimated amount of the uncollected taxes, income, 7 revenue, cash receipts, and other moneys of the City which will be available for the payment of the Notes and the interest thereon. SECTION 4. That said notes shall constitute general . obligations of the City; and all of the income and revenue of said City received from taxes for the fiscal year 1977-1978 and all other revenue, cash receipts, and other moneys Qf the ,. City including moneys deposited in inactive or .term deposits d lawfully available therefor hereby are pledged to the payment of the Notes and the interest thereon; provided., however, that no moneys which, when received by the City, will be encumbered .~~- - for a special purpose, are. or will be so pledged. ~~ SECTION 5. That the Notes evidencing such indebtedness ,,.: ` shall be negotiable and in substantially the following form, to-wit: -2- _.. .,.. y:... ..ea¢w:%ii.:NC,~cri+krStw:"„da: y ~ $50:, 000 No. CITY OF LYNWOOD STATE OF CALIFORNIA Temporary Note Lynwood, California October 25, 1977 On or before the 30th day of. June, 1978, the City of Lynwood, State of California, promises to pay to the bearer hereof out of the funds hereinafter mentioned, at the office of the Treasurer of said City, the sum of FIFTY THOUSAND DOLLARS ($50,000) in lawful money of the United States of America, with interest thereon at the rate of per- cent per annum from date until paid. This note shall be subject to call and redemption, at the option of said City, at any time prior to its fixed maturity date at the principal amount thereof plus accrued ;. interest thereon to date of redem1~tion, after ten days notice thereof, all as provided for in City of Lynwood Resole-~ ' tion No. adopted on October 4, 1977.. I`t is hereby certified, recited and declared that this Note be issued in strict conformity with the Constitution and laws of the State of California, and with the provisions of `' Article 7 6, Chapter 4, Part 1, Division 2 of Title 5 (Sections 53850-53858, both inclusive) of the California Government Code, and the proceedings of. the City Council of the City of Lynwood, including the said Resolution No. a resolution duly r and regularly passed and adopted by said City Council on October 4, 1977, authorizing the same; and that all acts, conditions and things required to 'exist, happen and be per- formed precedent to and in the issuance of this Note have existed, happened and been performed in regular and due time, J form and. manner as required by law; aazd that this Note, to- gether with all other indebtedness and obligations of said City, does not exceed any limit prescribed by the Constitution or statutes. of the State of California. For the payment of the principal of and interest on this Note and all notes of said authorized issue, all of the income ` ~_ and revenue of said City received from taxes for the fiscal year 1976-1977, and all other income, revenue, cash receipts and moneys of said City lawfully available therefor are hereby R pledged, and this note shall constitute a first lien and charge thereon. IN WITNESS WHEREOF, said City of Lynwood has caused this Note to be signed by the Mayor and the City Treasurer of said City, countersigned by the City Clerk of said. City -3- ~° City ,Treasurer, City of Lynwood Y r (SEAL) COUNTERSIGNED: and sealed with the corporate seat oL- said City and has caused this Note to be dated the 25th day of October, 1977. lam- M or, City of L nwoo.d, California City Clerk, City of Lynwood , r -4- SECTION 6. That. the Mayor and the City Treasurer are hereby authorized and directed to sign all of said notes, and the City Clerk is hereby authorized and directed to countersign said notes and to affix thereto the official seal of said District. SECTION 7. The Notes are subject to call and redemp- tion at the option of the City at any time prior to their fixed maturity date at a redemption price for each Note equal to the principal amount thereof plus accrued interest thereon to the date of redemption. Any or all of the Notes may be called for redemption at one time, and if less than all of the Notes are redeemed at any one time, such Notes shall be selected by the City Treasurer by lot Notice of the intended redemption shall be published by one insertion in the LOS ANGELES TIMES and mailed to the original purchasers of the Notes at least ten (10) but not more than thirty (3'0) days prior to the redemption date. Each notice of redemption shall state the redemption date, the place of redemption and the redemption price, shall designate the serial number of the Notes to be redeemed by giving the individual numbers of each Note or by .stating that all Notes between two stated numbers, both inclusive, have been called for redemption, and shall require that such Notes be then- surrendered for redemption at the said redemption price, and .shall also state that the interest on the Notes i.n such notice designated for redemption shall cease to accrue from and after such redemption date and that on said date there will become due and payable of said Notes the principal amount thereof to be redeemed and interest accrued thereon to the redemption date -5- SECTION 8. That sealed proposals for the purchase of notes of said City in the amount of $500.,000 be received by the City Clerk of the City on or before 2:00 o'clock p.m on October 18, 1977, at the office of the City Clerk, Lynwood City Hall, 1.1330 Bullis Road, Lynwood, California 90262 SECTION 9 That the City Clerk is hereby authorized and directed to cause to be furnished to prospective bidders copies of the notice inviting proposals; but failure, in whole or in part, to comply with this section shall not in any manner affect the validity of the sale of said Notes SECTION 10. That said notice shall be substantially as follows: -6- ` NOTICE INVITING BIDS ON $500,000 NEGOTIABLE PROMISSORY NOTES OF THE CITY OF LYNWOOD NOTICE IS HEREBY GIVEN that sealed proposals for the purchase of $500,000 par value general obligation negotiable promissory notes of THE CITY OF LYNWOOD, of Los Angeles County, California, will be received by the City Clerk of said City at the place and up to the time below specified TIME Tuesday, October 18, 1977 2:00 o'clock p m PLACE. Office of the City Clerk Lynwood City Hall 11330 Bullis Road Lynwood, California 90262 MAILED BIDS• Mrs Josephine L Shepherd City Hall 11330 Bullis Road Lynwood, California 90262 The bids will be opened and. read at the aforementioned time and place. It is anticipated that the City Council will award said Notes at a regular meeting to be held at 7 30 o'clock p.m, Tuesday, October 18, 1977, at the regular meeting place of the City~Counc~il, 11330 Bullis Road, Lynwood, California. ISSUE• $500,000 Notes, dated October 25, 1977 of the denomination of $50,000, designated "NOTES, 1977", and maturing on June 30, 1978. FORM OF NOTES The Notes will be payable to Bearer t upon presentation, they will be in typewritten form unless the purchaser requests printed Notes and agrees to bear all expenses incurred in connection with the printing thereof INTEREST The Notes shall bear interest at a-rate to be fixed upon the sale thereof but not to exceed fight percent (8~) per annum, payable on June 30, 1978 -7- r~ Y 'k _ a r ~ f t 1 PAYMENT: Said Notes and' the interest thereon are payable in lawful money of the United States of America at the office ~of the City Treasurer, City Hall, 11330 Bullis Road, Lymwood, California CALLABLE The Notes are subject to call and redemption at the option of the City at any time .prior to their fixed maturity date at a redemption price for each Note equal to the principal amount thereof plus accrued interest thereon to the, date of redemption. Any or all of the Notes may be called for redemption at one time; and if less than all of the "'r Notes are redeemed at any one time, such Notes shall be selected by the City Tzeasurer by lot. Notice of the intended redemption shall be published by one insertion in the LOS ` ANGELES TIMES and mailed to tl~ original purchasers of the Notes at least ten (10) but not more than thirty (30) days prior to the redemption .date Each notice of redemption '~ _ shall state the redemption date, the place of redemption and the redemption price, shall designate the serial number of the Notes to be redeemed°by giving the individual numbers of each Note or by stating that all Notes between two stated numbers, both inclusive, have been called for redemption, and shall require that such Notes be then surrendered for redemption at the.. said redemption price, and shall also state that the interest on the Notes in such notice designated for redemption i shall cease- to accrue from and after such redemption date and ' that on said date there wi1.l become due and payable of said Notes the principal amount thereto to be redeemed and interest accrued thereon to the redemption date. SECURITYe Said Notes shall constitute general obliga- tions of the City; and all of the income and revenue of said City received from taxes for the fiscal year 1977-1978 and -8- • ' .,+u+x mca.~ts.Fr - - - s,~vsa~.~++:, rv~,h4cnwnrs.m,~+r.m+.n«ru~+~wna.~<,~.t+;~: all other revenue, cash receipts, and other moneys of the City, including moneys deposited in inactive or term deposits lawfully available therefor hereby are pledged to the payment of the Notes and the interest thereon, provided, however, that no moneys which, when received by the City, will be encumbered for a special purpose, are or will be so pledged. TERP!IS OF SALE Interest Rate The maximum rate bid may not exceed eight percent (80) per annum,payable semiannually Not more than one interest rate may be bid. Award The Notes shall be sold for cash only. All bids must be for not less than all of the Notes hereby offered for sale and each bid shall state that the bidder offers par and accrued interest to the date of delivery, the premium (if any) and the interest rate not to exceed that specified herein, at which the bidder offers to buy said Notes. 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. Highest.Bidder• The Notes will be awarded to the high- est responsible bidder or bidders considering the interest rate 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 with the City would be required to pay from the date of said Notes to the respective maturity dates thereof at the rate specified' in the. bid and the award will be made on the basis of the lowest -9- t ,K net interest cost to the City. ;The purchasers must pay accrued interest (computed, on a~360-day year basis.) from the date of the Notes to the date of delivery. Right of Rejection: The City reserves the right, in its discretion, to reject any and all b~.ds and, to the extent not prohibited by law, to waive any irregularity or informality in any bid. Prompt Award. The City will take action awarding the Notes or rejecting all bids not later than twenty=eight (28) hours after the expiration of. the time herein prescribed for the receip-t of proposals; provided that the award may be made 1 after the expiration of the specified time if the bidder shall not have given to said City Council notice in writing of the withdrawal of such proposal. Place of Delivery: Delivery of the said .Notes will be ~~~ made to the successful bidder at the Office of the City Clerk, Lynwood City Hall, 1133°0 Bullis Road, Lynwood, California, or at any other place mutually agreeable. Prompt. Delivery, Cancellation for Late Delivery It is expected that said Notes will be delivered to the successful bidder within thirty-five (35) days from the date o.f sale thereof. The successful bidder shall have the right, at his option, to cancel the contract of purchase if the City shall ': fail 'to execute the Notes and tender them for delivery within thirty-six (36) days from the date of the sale thereof, and in such event the .successful bidder shall be entitled to the return of the deposit accompanying his bid. -10- i. .. _ „,~ I ,~" .; + Form of Bid Each bid., t:og,ether with the bid check, must be in a sealed envelope, addressed to the City, with the. envelope and bid clearly marked. • "PROPOSAL FOR THE CITY OF LYNWOOD, NOTES 1977 " Bid Check A certified or cashier's check on a responsi- ble bank or trust company in the amount of $5,000 payable to the o-rder of the City, must accompany each proposal as a guaranty that the bidder, if successful, will accept and pay for said Notes 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 the City, shall then be re-. °' twined by the City. The check accompanying each unaccepted proposal will be returned promptly. Change in Tax Exempt Status: At any time before the Notes are tendered for delivery the successful bidder may dis- affirm and withdraw the proposal if the interest received by private holders' from notes of the same type and character shall be declared to be taxable income under present federal income tax laws, either by a ruling. of the Internal Revenue Service or by a decision of any federal court, or shall be required to be taken into account in computing federal income taxes by the terms of any federal .income tax law enacted sub- Sequent to the date of this notice. .Legal Opinion The unqualified opinion of Rutan & Tucker, Bond Counsel, .approving the validity of said Notes will be furnished .the successful bidder at or prior to the date of delivery of the Notes, at the expense of the City. -11- No Litigation Certificate At the time of payment for and delivery of .said Notes the City will furnish the successful bidder a certificate that there is no litigation pending affect- ing the validity of the Notes. INFORMATION AVAILABLE. Requests for information concern- ing the City should be addressed to Mrs Josephine L. Shepherd City Hall 11.330 Bulli_s Road Lynwood, California 90262 GIVEN by order of the City Council of the City of Lynwood, adopted on October 5, 1977. JOSEPHINE L. SHEPI-IERD, City Clerk,. City of Lynwood -12- .~ ~- ADOPTED, SIGNED AND APPROVED this 5th day of October, 1977 {SEAL ) ATTEST: City Clerk of the City of Lynwood Mayor., City of Lynwood f• -13- a.!a36t?elti]SKR.t:d~aw:~~c ...was ~i~.aw>~,Y, . '. •f r ~ ~ STATE OF CALIFORNIA ) ss COUNTY OF LOS ANGELES) I, JOSEPHINE L. SHEPHERD, City Clerk of the City of Lynwood, do hereby certify that the foregoing resolution was duly adopted by the City Council of said City at a regular meeting of said City Council duly held on the 5th day of October, 1.977, and that it was so adopted by the following vote; BXO.R~', ~P~~~N, HTGGIt3S, ~fORHIS, ROir1E. AYES: NOES NONE:. ABSENT: . ~'`., , ~, Cr`~~~ ~,. ~~. ,,1 ~; ~ .i ~. t ~~ .. -- / (SEAL') 7 ~ ~t t -_ a r' --City lerk of ~ e Cit of Lynwood -14- ,w ~ ~. -_}. i ~; STATE OF CALIFORNIA ) ~ '~ )ss COUNTY OF LOS ANGELES) f I, JOSEPHINE L. SHEPHERD', City Clerk of the City of Lynwood, do hereby certify that the above and .foregoing is a full, true~and correct copy of Resolution No. 77-92 , and that the same has not been amended or repealed. '" actob~r. 7 DATED: , 1977. _~,1 ~ ~ City lerk of he City of ynw :; ~~ :~ ,., V ~~.~ ~~" ,. ~ 3 i, f, "'~ C c a~ i ~,~ .n ~:,