HomeMy WebLinkAboutResolution 4526 N.C.S. 05/23/1966 r V
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INTROD, % ED tY C0U " r MAN SECO DED' tY NCILMAN
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J=���� Y OF PETALUMA ./
RESOLUTION NO. 4526 N.C.S .
PROVIDING FOR THE ISSUANCE OF $2 , 350 ;000 PRINCIPAL
AMOUNT OF "CITY OF PETALUMA 1966 SEWER BONDS"; PRE-
SCRIBING THE DATE, AND FORM OF SAID BONDS AND OF THE
COUPONS TO BE • ATTACHED THERETO A:ND PRESCRIBING THE.
MATURITIES THEREOF : FIXING THE MAXIMUM RATE. OF IN-
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TEREST ON SAID BONDS ; AUTHORIZING THE EXECUTION OF
SAID BONDS AND COUPONS PROVIDING FOR THE LEVY OF
A TAX TO PAY THEIPRINCIPAL OF AND INTEREST THEREON ;
AND DIRECTING NOTICE OF SALE OF SAID BONDS TO BE
GIVEN
WHEREAS , all the requirements of law have been
complied with in calling; and holding the special municipal
bond election held i the City of Petaluma on January 18 ,
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966', at which elect on a measure to issue bonds of said!
City in the aggregate principal sum of $2 ,350,000 for the
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object, and purpose hereinafter stated was submitted to the
voters of said City; and the Council of said City did duly
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and re'gular.ly canvass the returns of said special municipal
bond election and did by said canvass determine and declare ,
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and do hereby certify , that said measure received at said
special municipal bond election the affirmative vote of 1
more than two-thirds of all of the voters voting on s'adi
measure at said ,spec al municipal bond 'electon:, and was:
thereby carried and adopted by said election , and the is-
suance of said bonds by said City was duly 'authorized;
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NOW', THEREFORE, BE IT RESOLVED by the Council
of the City of Petaluma, as follows :
Section 1 . The Council has reviewed all proceed-
ings heretofore taken and has found: as a result of such
review , and does hereby find and determine , that all acts ,
conditions and things required by law to exi st , happen and
be performed precedent to and in the issuance of said bonds
have existed, happened and been performed in due time , form
and manner as required by law , and the' City of Petaluma is
now, authorized pursuant to each and every requirement of.
law to incur indebtedness in the manner and form as in this
resolution provided . '
Section 2 . ' Bonds of the City of Petaluma in the
aggregate principal amount of $2 , 35.0,.00,0 shall issue to pay
the cost of the acquisition , construction and completion of
the municipal improvement of said city set forth in the
following measure , to wit :
MEASURE (A ) : Shall the City of Petaluma
(Sewer System incur a bonded indebtedness
Improyemets ) in the principal amount of
$2 , 350 , 000 for the acquisi-
tion , construction and completion of the fol-
lowingmunicipal improvement ,. to wit:: Sewer
system improvements , including additions to
present sewage treatment plant and appurte-
nant fadil' ties , additions to sewage collect-
ing system', construction of new pump stations
collection! mains , trunk sewers , outfall lines ,
interceptor ,sewers , force mains , pipes ,. pumps ,
machinery, manholes : lands , easements and
rights of way ; and other works ,, property or
structureslnecessary or convenient for sewer
system improvements for the City of Petaluma?
Section 3.. Said $2 , 350 ,000 principal amount of
bonds shall be issued as hereinafter set forth, and shalll
be ,sold in accordance with law at not less than their pair
value and adcrued interest . Said bonds shall be known als
"City of Petaluma 1966 Sewer Bonds Said bonds shall b;e
negotiable in 'fond, and of the character' known as serial!
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and shall be numbered '1 tb 470 consecutively -in order of
maturity and shall; all be of the denomination of $5 ,000
each . Said bonds shall be dated 'June 1 , 1966 (which is
hereby fixed and determined to be the date of the issue 'lof
the bonds ) .
All of said bonds shall bear interest from their
date until paid at the rate or rates designated by the
Council of the City I'f Petaluma at the time of the sale of
Said bonds , but not to exceed six per dent ( 6% ) per annum,
payable annually the: first year and. semiannually thereafter.
Such interest shall he evidenced by coupons attached to
each bond , and each of said coupons shall represent six
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months ' interest ,on the bond to which it is attached ( ex-
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cent the first coupon on the bonds which shall represent
twelve months ' interest on the bond to which it is attached.) .
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The interest coupons on said bonds shall be payable annu-
ally the first year on June 1 , 1967 and thereafter semi-I
annually on December 1 and June 1 in each year until and
at the respective dates of maturity of said bonds.. Said
bonds shall mature serially in consecutive numerical order,
from lower to higher , as set forth in the following
schedule :
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Maturity Date (June I) Annual Principal
(Both years inclusive ) Amount
19.68 $ 20 ,000
1.9'69_ 30 , 000
1970 -. 971 35 ,000
197.2' -. 1913 40 , 000
1974 - 1975 15 ,000
1976 5:0 ,000
1977.` -- :1.978 55 ,000
1979- - 198Q 60 , 000
• .1981. - .1982 65 ,000
1983 .1.984 70 ,000
1,985' 75 , 000
1986 — 1981 80 ,000
1918:8 85,000
19'89 = 1990 90 . 0.00
199:1 95 , 000
1992' 100 , 000
1992 1 105 ,000
1994 - 1995 110,000
196 115, 000
1997 120,.000
19.9'8 12:5,900
1999 130 , 000
Betn the principal of and interest on said bonds
shall be payable in lawful money of the United States of
America at the Read Office of Wre11s Fargo Bank , the 'Paying
Agent Of the City in San Francisco , California , or, at
holder's option , at the principal office of Bankers . Trust
Company , the Co.-Paying Agent of the City to New York, New
York , or .at the prinlipal office of Harris Trust and Savings
Bank, the Co-Paying ?gent of the City in Chicago , Illinois .
The City hereby covenants and agrees , for the direct benefit
Of the holders Of all the bonds , that 'so long as any bonds
shall be outstanding it will ;maintain. a. Paying Agent in ISan
Francisco , California, and Co-Paying Agents in New York ,
New York ,. and in Chicago , Illinois .
Bonds maturing by their terms on or prior to
June 1 , 1986 are `notl sub,jeet to call and redemption prior
to 'their `f iced maturity dates . Bonds thatririgI by their
terms on or; after Jule 1 , 19.87 are subje.et to ca 11 and
redemption, at the option of the City, on June 1,. 1981 ,
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but not prior thereto , and on any interest payment date.
thereafter prior to maturity , as a whole, or in part in
inverse numerical order, at the principal amount thereof
and accrued interest! to date of redemption plus a redemp-
tion premium of one-quarter of one per cent (1//1 of 1% )
of the principal amount of each bond so redeemed for each
whole year and for ahy remaining fraction of a year from
the date of redemption to the date Of maturity of such
bond ; provided , however, that such premium shall not ex-'
coed four per cent ( 4% ) of such principal amount .
Whenever funds are available for the call and ,
redemption of any ofi the bonds then subject to call and ,
redemption , the 'City', shall determine the numbers of the
bonds to be called and redeemed , and the date of redemp-H
tion thereof. Notice of any such redemption shall be
published by the City once a week for two successive
• weeks in a newspape=r of general circulation printed and
published in the City and County of San Francisco , State
of California. The notice of redemption shall set forth
the bond numbers and: principal amount of the bonds so tl
be called and redeemed and the amount of `the premium pay-
able thereon at the date of redemption . Similar notices
shall be mailed at the same time by the City to the resyec-
tive registered owners of any bonds called for redemption
at their addresses appearing on the bond register in the
office of the registrar of the City of Petaluma hereinafter
provided for; provided that such mailing shall not be a. '
condition precedent to such redemption and failure to mail
or receive any such notice shall not affect the validity
of the .proceedings for the redemption of such bonds . The
first publication of such notice of redemption shall be .
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not less than 30 days nor more than 6;o nays 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
available for payment of the principal , premium and ac-
crued interest on the bonds so called, interest on such
bonds Shall. ce;ase . All bonds and coupons surrendered
upon call for redemption shall he cancelled bby the City
and shall not be reissued .
Section li., i Said bonds and the coupons attached
thereto shall each be in substantially the following form,
the blanks in said forms to be filled with appropriate
:words or figure e, namely :
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[FORM OF BOND];
UNITED STATES OF A1M7ERICA
STATE OF CALIFORNIA
SONOMA COUNTY
CITY OF PETALUMA 19.66 SEWER. BOND
No '
$5 ,000
t: ed and existing under the Constitution corporation oStae
The CITY OF PETALUMA , a muni
on and laws. of the State
;f California, hereby acknowledges itself indebted and for
v,slue received promisesito pay to the bearer (or if this bond
bye regi`stered , to the registered holder hereof) on the first
day oaf. June 19
( s_ub,ject to any right of Drior redemption
ha'reinafter in this bond e xpressly provided for ) the principal
mmlm of
FIVE THOUSAND DOLLARS (x5 -.090 )
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together with interest thereon at the rate, of per cent
( % ) per annum until payment o`f said principal sum in full,
payable. annually the first year on June 1 , 1967 and the reaflter
semiannually on the first day of December and the first daY1 of
June of each year,. Unless this bond be registered as to inter-
est , such interest , prior to maturity , shall be payable onlly 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 Head. Office of Wells Fargo Bank
in San Francisco , Cali=fbrnia (the Paying Agent of the City ) , or,
at holder' s ontion , st the principal office of Bankers. Trust
Company in New York;, New York, or at the principal office of
Harris Trust and Savings Bank in Chicago , Illinois (the Co-(Paying
Agents of the City) .
Bonds maturing by their terms; on or prior to June:' 1 ,
19P6 are not s,ub,ject tel call and redemption prior to their 'fixed
maturity dates;-. Bonds maturing by `their -terms on or after
June 1, 1987 are subject to call and redemption , at the option
of the City , on June '1 ,11981 , but not prior thereto , and on any
interest payment date thereafter prior "to maturity , as a whole
or in part in inverse numerical order, at the principal amount
thereof and accrued interest to date of redemption plus a redemp-
tion premium of one-quarter of one per cent ( 1/11 of 1% ) of ',the
p'r,incipal amount, of each, bond so redeemed for each whole year
and for any remaining fraction of a year from the date of redemp-
tion to the date of 'maturity of such bond ; provided , however,.
that such premium shall not exceed four per cent ( 4% ) of such
principal amount .
This bond is one of a duly authorized issue of bonds
of said City aggregating Two Million Three Hundred' Fifty -TFiou-
sand Dollars ( $2 , 350 ,000 ) in principal, amount , all of like tenor
and date (except for such variations , if any:, as may be required.
to designate varying numbers , maturities , interest rates or re-
demption provislons;)' and is issued under and pursuant to the
Constitution and statutes of the State of California, and under
and pursuant to the ordinances and proceedings of said City! duly
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adopted and taken and a' vote and assent of more than. two-thirds
of all the qualified electors of said City voting at a special
election duly called and held for that purpose,.
This bond maylbe registered in the name of the holder
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
acts , conditions and things required by law to exist , happen and
to 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 , to-
gether 'with all other indebtedness of said City , does not exceed
any limit prescribed by1the Constitution: or statutes of said •
Stage , and that provision has been made as required by the Con-
stitution 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 said :City are hereby]
pledged for the punctual payment of the principal of and
interest on this bond.
LN WITNES,S, WHEREOF, the City of Petaluma has caused
this bond to be executed under its official seal , signed by its
Mayor and its Treasurers and countersigned by its Clerk, and
has caused the interest coupons attached hereto to be signed by
its Treasurer, and t'his' bond to be dated the first day of June;
1966 .
Mayor of the City of Petaluma
[SEAL]
Treasurer of the City of Petaluma
Countersigned :
it Clerk of the city of Petaluma
[,FORM OF COUPON]
Coupon No .
THE CITY OF PETALUMA on , 19
will (unless the withinlmentioned bond
be registered as to interest , and sub-
ject to any right Of prior redemption
therein reserved) pay to the bearer at
the Head Office of 4•le11s
Fargo Bank in
S'an Francisico , California , or, at hold`=
er ' s •option , at .the principal office of
Bankers Trust"Company in New York , New
York , or at the principal office of
Harris Trust and Savings Bank in Chicago,.
Illinois , the sum sh'own :hereon in lawful $
money of the United States of America,
being interest "then due Ion its 1966 Sewer
Bond , dated 'June 1 , 19'66 . No .
Treasurer of the City. of Petaluma.
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[FORM OF REGISTRATION CERTIFICATE]
This Bond may be registered in the name of the holder
on books kept by the Paying Agent of the City , as to principal
only , such registration being noted hereon by the Paying Agent
in the registration blank below , after which no transfer shall
be valid unless made on said books by the registered holder or
attorney duly authorized and similarly noted in the registra-
r
tion blank below, but it may be discharged from registration by
being transferred, to 'bearer, after which it shall he transfer-
able by delivery , but it may be again registered as before !.
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The registration of this Bond as to principal shall not re-
strain the negotiability of the coupons by delivery , but the
coupons may be surrendered and the interest made payable only
to the registered holder, in which event the Paying Agent shall
note in the registratioIn blank below that the Bond is registered
as to interest , as well as principal . At the request of the
registered holder, this Bond , if converted into a Bond regis-
tered as to both principal and interest , may be reconverted
into a coupon Bond' at the expense of the holder and such coupon
Bond may again be converted into a Bond registered as to both
principal and interest' as hereinabove provided. Upon reconver-
sion of this Bond, if registered as to principal and interest.,
into a coupon .Bond ,,new coupons representing the interest to
accrue hereon to date of maturity shall be attached hereto ty
the Paying Agent and the Paying Agent shall note in the regis-
tration blank below whether the Bond is registered as to prin-
cipal Only or payable to bearer.
' DATE OF IN WHOSE NAME MANNER OF SIGNATURE OF
REGISTRATION : REGISTEREDH REGISTRATION : PAYING. AGENT :
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Se'cti`on, 5:. The Mayor of said City and the
Treasurer of said City are hereby authorized and directed,
respectively , as such officers , to execute each of said
bonds on behalf of said City , and the City Clerk or one or
more of his deputies is hereby authorized and directed to
countersign each. of' said bonds and to affix the official!
seal of said City thereto . Said seal may be printed, en
graved , stamped or otherwise placed in facsimile on said
bonds . Said Mayor and Treasurer are hereby each , respec,'-
tively , authorized to cause said bonds to be signed by I
printed , lithographed or engraved facsimile signature .
Said Treasurer is hereby authorized and directed to sign
each of the interest coupons by printed,, lithographed or
engraved facsimile signature . Such signing, countersign-
ing and sealing as, herein provided shall he a sufficient
and binding execution of said bonds and coupons by said
City , and all such signatures and countersignatures, ex-
cepting that of the City Clerk or his deputies , 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 ben-ire
the delivery of su h bonds to the purchases, such signature
or countersignature: shall nevetheless be valid and suffi-
cient for all purposes the same as though he had remained
in office until the •delivery of the Ponds .
Section 6 . The City covenants that it will ,
while any of the bonds are outstanding, and unpaid, keep
at the office of the Paying Agent books (herein called
the "bond register") for the registration of Such bonds
as herein provided, and the Paying Agent is hereby ap-
pointed the registrar of the City for the purpose of reg-
istering such bonds_ The Paying Agent shall permit any
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bondh'old'er to exami'ne) the bond register and make riotes of
the contents thereof at its office during its customary
business hours .
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 intereslit may be converted !into coupon bonds .
A person in whose ,namle 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 thereof
shall be made only to the registered holder. Payment of
the principal of a b'nd registered as to principal only
shall be made only to the registered holder of such bond
but the bearer of arili coupon appertaining to an unregis-
tered bond or to a b nd. registered as to principal only
shall be deemed, the 'absolute owner of such coupon , and the
bearer of any unregistered bond shall be deemed the abso-
lute owner of such bond , and the City and the Paying Agent ,
or an Co-Paying Agenit shall be full
y y i y protected in making
payment of such unregistered bond or 'coupon to the bearer
thereof.
In all cas'ek in which the privi?lege of transfer-
ring , 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 by or the Paying Agent in connection
pa3�d' b the City n
= therewith , and in addition may charge a re'asonal sum for
its costs and exoenseis in the reconversion. 'of any such bond
registered as to both' principal and interest into a bond
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registered as to principal. only or into; a bond the grin-
cipal and interest ofMhich is payable: to bearer, not ex-
ceeding $1 per. 41 , 001p principal amount of bonds so con-
verted 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 7 . For the purpose of paying the prin-
cipal of and interest on said bonds , the Coun'ci'l of the
City of Petaluma.,, shall , at the time Of making the next
general tax levy after incurring the bonded indebtedness ,
and annually thereafter 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 interest 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 ,
and also sufficient to constitute' a sinking fund for the'
payment of the principal on or before maturity . Such taxes
shall be levied and collected as other City taxes and stall
be in addition to 111 other taxes and shall. be used only
for payment of the bonds and interest thereon . Said taxes
as collected shall be forthwith paid into the fund for
which the same were ilevied and collected and which shall
be designated ".City' of Petaluma 1966 Sewer Bond Interests
and Redemption Fund" , and all sums to become due for the
principal of and interest on said 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 said
bonds and interest accrued on said bonds from their date
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to the date of delivery and actual payment of the purchase
price thereof.
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Section- f3 There is hereby Created- and estabA
fished a fund tote known as the "City of Petaluma 1966
Sewer Bond Fund' , Which shall be, kept by the Treasurer of
Said City , and all proceeds of the sale Of said City of
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Petaluma 1966 ,Sewer Bonds (except premium and accrued in-
terest received 'on such sale ) , shall be placed by the TrIpas-
urer to the credit Of said fund and shall be kept separate
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and distinct from, all other municipal funds. The moneys{
in said fund shall 'be applied exclusively to the purpose
and object sp,ecifie;dlin said measure set forth in Section 2
of this resolution , including payment of all costs and ex-
penses incidental to or connected With- the authorization ,
issuance and sale Of the bonds and all legal and other fees
incidental to or connected with the authorization , issuance
and sale of the 'bonds and the costs •of printing said bonds
provided, however, that when said purpose: and object have
been accomplished_, any moneys remaining- in said fund shall
be transferred to said City of ,Petaluma 196,6 Sewer Bond Tn--
terest and Redemption Fund and b'e used for the payment of
principal of and interest on the bonds of' said authorized
issue ; and provided , 1further, that when sixth purpose and
object have been accomplished and all principal and interest
on the bond`s have ,been paid, any balanoe Of money then re-
mai'nin'g shall be transferred to the general fund of said
City .
Se;ctIon 9 . The City Clerk is directed to cause
a sufficient number o.f 'blank bonds and coupons of suitable
q'•uality to be lithographed, printed Or engraved , and t'o
. cause the blank spaces- thereof to be fi] led. in to comply
with the provisions hereof , and to procure theit' execution
by' 'the proper officers , and to deliver them , when so •
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executed , to the Treasurer of said City Who .shall safely
keep the same until they shall be sold by said Council ,
whereupon he shall deliver them to the purchaser or pur-1
chasers thereof ,, on receipt of the purchase price . Said
Mayor, Treasurer and ' City Clerk are further authorized and
directed to make , execute and deliver to each purchaser of
said 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
said bonds and further certifying to all -facts within their
knowledge relative to any litigation which may or might
affect said City, said officers or said bonds, and said
Treasurer is further authorized and directed to make , exe-
cute and deliver to each purchaser of said bonds a receipt
in the forth customarily required by purchasers of municipal.
bonds , evidencing the payment of the purchase price of the
bonds so purchased;, which receipt shall be conclusive evi-
dence that said purchase price has been paid and has been
received by said City . Any purchaser or subsequent take's
or holder of said bonds' is hereby authorized to rely upoin
and shall be justified in relying upon such signature and
no-litigation certificate and upon such Treasurer ' s receipt
with respect to said bonds executed pursuant to the
authority of this resolution.
Sect' on.. 10 . All of said bonds shall be offered
for public sale by the Council of the City of Petaluma on
Monday , June 27 , '1966 and the City Clerk is hereby author-
ized and directed to cause notice of the .sale of said bonds
to be published once' in the PETALUMA ,ARGUS-COURIER , and
such notice shall bevsubsta.ntially in the following forms,
to wit :
1p
OFFICIAL NOTICE. OF SALE
.$2 , 350 , 000 CITY OP PETALUMA 1966 SEWER BONDS
NOTICE IS, HEREBY GIVEN that sealed proposals will be
received by the Council of the City of Petaluma, Sonoma County ,
State of California, at the Petaluma City Hall , Post and English
Streets , Petaluma; Sonoma County , California, on
MONDAY, JUNE 27 , 1966
at the hour of 8 : 00 o ' clock P .M. (Cal . D.S .T . ) for the purchase
of $2 , 350 , 000 principal amount of bonds of said City designated
"City of Petaluma I9661.Sewer Bonds " (hereinafter called the
"bonds " ) , more particularly described Ecelow .
ISSUE AND $2,350 ,000 principal amount of coupon bonds
DENOMINATION : numbered consecutively from 1 to 470 . The
bonds shall all be of the denomination of
.$51,000 each.
DATE : Thee bonds are dated June 1 , 1966 ,
MATURITIES : The bonds mature serially in consecutive
numerical order, from lower to higher ,' as
follows :
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Maturity Date (June 1 ) Annual Principal
,(Both years inclusive ) ! Amount
1968 $ 20 , 000,
1969 30 ,0001
1970 - 1971 35 ,000
1972 - 1973 40 ,0001
1974 - 1975 45 ,000'
1976 50 ,000
1977 - 1978 55 ,000
1979 - 1980 6o ,000
1981 - 1982 65 ,000
1983 - 1984 70 , 0001
1985 75 , 000
1986 - 1987 80 , 000
1988 85 ,000
1989 - 1990 90 , 000
1991 95 ,0001
1992 100 ,000;
1993 105 ,0001
1994 - 1995 110 ,000'
1996 115 , 000!
1997 120 ,000.
1998 125 , 0001
1999 130 , 000,
REDEMPTION : Bonds maturing by their terms on or prior
to1June 1 , 1986 are not subject to call .and
redemption prior to their fixed maturity dates,. Bonds maturing
by their terms on or after June 1 , 1987 are subject to call and
redemption , at the option of the City oh June 1 , 1981 , butlnot
prior thereto ; and on any interest payment date thereafter; prior
to maturity , as a whole , or in part in inverse numerical. order,
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at the p � and accrued interest to date: of
princi al amount thereof a
redemption plus a redemption premium of one-quarter of one per
cent ( 1/4 of 1%) of thel principal, amount of each bond -so re-
deerned .for each whole year and for any remaining fraction oif a:
year from the date of redemption to the date of maturity of such
bond; provided , however ;, that such premium, shall not exceed four
per cent (M% ) of such principal amount .
INTEREST RATE : Maximum six ( 6) per cent per annum , payable
annually the first, -year on June 1 , 19671 and
semiannually thereafter on December 1 and June 1 in each year.
Bidders must specify the rate of interest which the bonds hereby
offered for sale shalI bear. Bidders may 'specify any number of
separate interest rates ' irrespective of th"e maturities of the
bonds , and the same rate or rates may be repeated as often 'as
desired; provided , `however; that (i) the difference between the
highest and lowest coupon rate's specified in any bid shall not
exceed two per cent , (ii ) each interest rate specified must( be
in a multiple of J /2-0 of one per cent and a rate of inter-
esti ,_. _
est cannot be specified; ( iii ) no bond shall bear more than! one
rate of interest, no interest payment shall be evidenced byl more
than one coupon and supplemental coupons will not be permitted ;
(iv) each bond shall hear interest from its, date to its stated
maturity date at the interest rate specified in the bid ; (vr) all
bonds of the same maturity shall bear the same rate of interest ;
and (vi ) any premium must be paid in bank funds as part of I'Ithe
purchase price , and no bid will be accepted which providers for
the cane llation -and surrender of any Interest coupon or for the
waiver of interest or other concession by the bidder as a sub-
stitute for bank funds . ' .Bids which do not conform to the tlerms
of this paragraph will be rejected .
PAYMENT : Both principal and interest are payable in
lawful. money of the United States of America
at the Head Office. of Wells Fargo Bank in San Francisco , Cali-
fornia,
TrustCompanytinoNewrYork, New York , of
Company I , P office
of Harris Trust and Savings Bank in Chicago Illinois .
EXECUTION AND Coupon bonds will be issued by the City.
REGISTRATION : Thel bonds will be executed by the manual
signature of at least one 'official author-
ized to execute the bonds . The bonds a're, regis,trab.le as to
principal only or as to both principal and interest . Registered
bonds, are subject to de-registration .and re-registration as pro-
vided in the resolut'i'on authorizing the issuance of the bonds .
PURPOSE The' bonds are authbrized by vote of two-
OF ISSUE: thirds: of the qual'i'fied, voters voting at
a special bond election fort he purpose of
authorizing; bonds for' the acquisition , comple-
tion of sewer system improvements for the City of Petaluma.I
SECURITY : The bonds are' general obligations of the
City of Petaluma and said City has peweir
and is obli.g,ate.d to le,vY ad valorem taxes for the payment of the
bonds and the interest thereon upon all property withhn the! City
of Petaluma subje_ct to taxation by said City ;(except certain'
personal property , which is taxable at limited rates") , withlout
limitation of rate or amount .,
TAX EXEMPT' In the event that prior to the delivery of
STATUS : the bonds the income received by private
holders from bonds of the same type and
• character shall b'e declared to be taxable under any Federal'
Income Tax•. laws , either by the. terms 'of such laws or by rul,i.ng
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of -a Federal Iodine Taxi authority or •offieial which is f.elliow d..
by the Internal Revenue Service ; or by :decision of any Federal
Court, the successful 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 Me's•srs . Orrick;
Dahlquist , Herrington & Sutcliffe of
San Francisco , California, approving the validity of the bonds
will be furnished to the successful bidder without charge . 1 A
copy of the legal opinion , certified, by the officer 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 determined '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 their
respective ' maturity dates at the coupon rate or rates !specified
in the bid , and the award will be made on, the basis of the low-
est net interest cost to the City . The purchaser must pay 'ac-
crued interest from theldate of the bonds to the date of delivery .
All interest will 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
26 hours after the expiration of the time herein prescribed for
the receipt of proposal's , unless such time of award is waived.
by the successful. bfdder.
Prompt Delivery : Delivery of the bonds will be made to the
successful bidder at the Head Office of
Wells Fargo Bank in Sant Francisco , California, at soon as the
bonds can be prepared , which it is estimated Will be within
thirty ( 30 ) days froth the date of sale.
Right of Thelsuccessful bidder shall have the rilght
Cancellation: at his option , to cancel the contract of
purchase if the City shall fail to execute
the bonds and tender the same for delivery within sixty (:60 )
,days from the date of sale thereof, and in such event the Isuc-
cessful bidder shall be entitled to the return of the deposit
(accompanying• his hid.
Form of Bid : All bids must be for not ._less than alliof
the bonds hereby offered for sale and for
not less than the par value thereof and !accrued interest to date
of delivery. Each bid , together with bidder' s check, must (be
enclosed in a sealed envelope addressed 'to the Council of the
City of Petaluma and endorsed "Proposal for City of Petaluma
1956 Sewer Bonds " .
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Did Check:: With each bid must be submitted a certified
check or cashier' s check- for $25 ,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
of Petaluma to secure the City from any loss resulting from the
failure of the bidder to comply with the terms of his bid . 1
Checks of all bidders (',except the successful bidder) will be
returned by the City bye mail promptly following the sale date
above specified . No interest will be paid upon the deposit
made by the successful bidder.
Estimate of Net Bidders are requested, but not required to
Interest Cost : supply an estimate of the total net inter-
est' cost to the City on the basis of their
respective bids , which khan be considered as informative only
and not binding on either the bidder or the City .
Official .The! City has caused ,an official statement
Statement : to +be prepared , a copy of which will be
furnished upon request addressed to Stone
& Youngberg, 1311 Russ Building, San Francisco , California
94104 , the City' s financing consultant .
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There is no controversy or litigation pending concern-
ing the validity of t_he above issue, the corporate existence of
the City , or the, titletof the officers thereof to their .respec-
tive offices , and the City will furnish to the successful bidder
a no-litigation certificate certifying to the foregoing as of
and at the time of the 'delivery of the; bonds .
Dated : May 23 , 1966 .
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■City Clerk of the City of Petaluma.
California
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Section ,11 . This resolution, shall take effect.
from and after its passage and approval.
PASSED AND ADOPTED this 23rd day of May , 1966 ,
by the following vote : 1
AYES : Councilmen BATTAGLIA, BRASNERD, JOERGER, LIPMAN
AND MAYOR PUTNAM.
NOES: NONE .
ABSENT : COUNCILMEN CAVANAGH , JR.. , AND COLIN.
APPROVED :
M o of the City of Peta 'uma
C alri fo rn i a
ATTEST :
)1
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City Clerk
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CLERK ' S CERTIFICATE
I , LILLIAN NOMMSEN, City Clerk of the City of
Petaluma, State of 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 an adjourned regular meeting of said Council duly and
regularly and legally held at the regular meeting place
thereof on May 23., 1966 , of which meeting all of the mem-
bers of said Council had due notice and at which a majonity
thereof was present .
At :said meeting said resolution' was introduced
by Councilman JOERGER _ and read in full , AMDIXN
t ecoca?xowc x xmakkaaXfRxRam kk kxxxx kxxxxxxxxxxxxx
seconded by Counciiml n BATTAGLIA `, adopted by the
following vote :
AYES : Councilmen BATTAGLIA, BRAINERD, JOERGER; LIPMAN ,
AND MAYOR. PUTNAM.
NOES : NONE.
ABSENT : COUNCILMEN CAVANAGH ,JR. , AND COLIN.
I have carefully compared the same with the
original minutes of said meeting on file and of record ip
my office and said resolution is a full, true and dorrect
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 .
Dated: May 24 , 1966 .
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[ SEAL]
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.v Clerk of the ity of Petaluma
California
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