CC Resolution No. 155RESOLUTION 195
RESOLUTION CALLING A SPECIAL REWENUE BOND FJI!;CTION Iid THE CITY OF C'UPERT_ITIO
FOR THE PURPOSE OF SUBMITTING TO THS QUALIFI iD ELECTOR'S OF SAID CITY THE
MASURE OF ISSUING REVENUE BONDS IV Try F3INCIPAL AMOUNT W $1,000,000 TO
PROVIDE FUNDS FOR THa ACG;liISITION , CO uS`i'RUCTION, IMPROVE11EtENT AND FIIAAIIGING
OF THE FOI. (MING .ENTERPRISi , TO WILT: A WATLR SYSTL i s D JCL ! ThE ESTI-
HATED COST OF SAID MTERPRIjE, THE FFMICIP,li, AF:OUN OF THE RLVEYME BONDS
TO B F, ISSUED THER,EFOI%, XND T t� 1 �U7'' 1R;-.TS OF INT '"tST TO Br PA ID ON
SUCH R£U.ENUF BONDS: FIXING THE Dj-:TE OF SjJD EL:rTION, THE 1�10AER OF BOLD-
ING THE Si��s�3, THE MAI9NEIR OF VOTING FOR OR A[;y tivu`i' T11B ISSUANCE OF S
B ONDS, .,ND Pi<< JVIDIN G Ff R DOTI + TF
WHEREAS, the City Council of the City of Cupertino has duly deter -
mined that the public interest and necessity *=and the acquisition, con-
struction, improvement and financing of the Enterprise hereinafter raentiom-
ed should be financed by the issuance of revenue bonds under the Revenue
Bond law 1941;
NOW THEREFOPLE, BE - IT RESOLVED by the City Council of the City of
Cupertino as follows:
Section 1. A special ravernie bond election is hereby ordered and
will be held in said City of Cupertino on WE=, August. lla., 1959, at
which election there shall be su _ nutted to the qual.ifiedr voters of said
city the measure of issuing revenue bonds under the Revenue :Bond Law of
1941 of the State of Californaa (Government Code Sections 54300 et seq.)
for the purpose of providing funds for the accuisition, construction,
improvement and financing of an Enterprise, all ae set forth in the follow-
ing Measure (A), to wit:
MEASURE A)- Shall the City of Cupertino issue revenue bonds in the
(Water principal amount of $1,000,000, pursuant to the R1
System) enue Band Law of 1941, to provede fuirls for the acq -i-
sition, construction,. impro - mment and fiaancing of the follo- ing
enterprises, to wit: A water system fcrr the - Ripply, treatment,, store..
age, transmission and distribution of water, including lands, eas -
ments, reservoirs, water rights, hater tanks, water mains, wells
pumps, pumping equipment, storage, treatment, transmission and dis-
tribution facilities, and other works, propeeties or struc es ir;c-
essary or convenient for a munibipal water system for the City of
Cupertino?
Section 2, The estimated cost of the acquisition, construction,
izTrovament and financing of said Enterprise is $1,000,000, and the _orirei-
pal amount of revenue bonds proposed to be issued therefor is $1,000,000.
Said estimated cost of said Frterp.Lise includes all costs and
estimated costs incidental to or connected with the acquisition, construc-
tion, improvement or financing of the Lnterprise, together with engineer-
ing, appraisal, inspection, legal and fiscal agent's fees, costs of the
bond election and of the issuance of' said revenue bonds, bond reserve fw;ds
and working capital and bond interest estimated to accrue during the per-
iod of acqusitioft and construction. and for a period of not to exc:ed
twelve months after completion of construction. The Enterprise'for
acquisition, construction, improvement and fiiaar.:;ing of 54alch said revenue
bonds shall be issued under the Revenue Bond Law of 1941 of the State of
California is hereby* defined to be the ,, and each and Every part of
said water system described in the measure set forth iri Section of this
resolution, including all fa.cili.ties either constructed., or Aceuirid by
purchase or condemnation, or othcrwi.se, for slid piir�oso-4 It is the pre -
sent intention of the City to acquire, subjoct to all required approvals
of the Public Utilities Commission of the State of California, the pub-
lic utility water system properties of Waterworks of Honta Vista, Ltd. and
also the irrigation water system properties and appurtenant Ovate rights
now owned by John F. and I;ary ,-1ves, which said systems presently serve
various portions of the City of Cupertino and surrounding areas, but the
City reserves the right to condemn all or any p,rt of said exisiting publ - 5_a
utility properties, or in the altern�ptive to construct a new and independ-
ent water system to provide a municpal water system for said City. All
of the properties and rights.necesszary to be acquired by the City in order
to provide a municipal water system for the supply, treatment, s orage,
transmission and distribution of water are hereby included within and
made a part of the Enterprise, irrespective of whether the same be acquired
from said public utility wate system properties b, purchase or condemnation,
or by independent construction of a new water system. It is hereby found
and determined that the City of Cupertino does not now of -m or operate a
water system; and that said Enterprise and each and every pert thereof,
when acquired, constructed and improved, will constitute a new municipal
improvement and a satisfactory water system for the portions of the City
of Cupertino in accordance with law. Spid Enterprise includes all of the
aforesaid municipal water system togAher with all additions, betterments,
extensions and improvements to said municipal water system or any part
thereof now or hereafter ma:.e. It is hereby found and determnned that
said Enterprise is necessary to enable said City to exercise its municipal
powers and functions; namely, to furnish sufficient water for any present
or future ceneficial use of the City.
Section 3. This City Council proposes to issue and sell revenue
bonds in are amount not exceeding $1,000,000 if a majority of all of the
voters voting on said Measure at said special revenue bond Election
shall vote in favor of .said Measure (A). The rate of interest to be paid,
on said revenue bondsshaal not exceed six (6) per cent per annurr., payabl
semi.- annually (except that the City Council, in its discretion, may provide
that interest for the first year shall be paybble in one inst llment A
the end of said yeas). Said bonds shall be revenue bonds payable exclusive�_,
from the revenues of said Enterprise and tre not to be secured by the
taxing power of said City of Cupertino, and shall be issued under the Revenue
Bond Law of 1941 of the State of California. The principal of and interest
on said revenue bonds, and any premiums upon the redemption of any thereof,
are not and shall not constitute s debt of the City of Cupertino, nor a
legal or equitable charge, lien or encumbrance upon any of its property
or upon any of its income, receipts or revenues, except the revenues of
the Enterprise. No taxes shall over be levied or collected by the City
for the payment of said revenue bonds or the interest thereon; nor stall
any property of the City be subject to forfeiture therefor;. but all revenues
of the Enterprise legally available for the payment of said revenue bonds
shall be applied to such payment. Said revenue bonds, if authorized, shall
be special obligations of the City of Cupertino and shad be secured by
a pledge of and shall be a charge upon, and shall be payable as to the
principal thereof, interest thereon,,and any premiums upon the redemption
of any thereof. solely from and secured by a lien upon the gross revenuer
of the E:iterprise. Said gross revenues of the Enterprise include; revenues
cf additi-ons, betterments, improvements and extensions thereto later or
..2_
hereafter constructed or acquired and the revenues of the water systmn for
the acquisition, construction, improv,F=ent and financing of which said revenue
bonds are to be issued, and all of the revenues of said Enterprise, including
the revenues of additions, betterments, improvements and extensions thereto,
hereafter constructed or acquired, shall be pledged and assigned as security
for said revenue bonds. The payment of interest on, and principal of, said
revenue bonds, and any premiums upon the redemption of any thereof, are and
will be secured by an exclusive pledge, charge and lien upon all of the re-
venues of the Enterprise, and said revenues, and any interest earned on said
revenues, are and will constitute a trust fund for the security and payment
of the interest on and principal of Vne bonds. If the interest and principal
of said revenue bonds, and all charges to protect or secure them, are paid
when due, an amount for the necessary and reasonable maintenance and opera-
tion costs of the Enterprise (which costs include the reasonable expenses
of management, repair and other expenses necessary to maintain and preserve
the Enterprise in good repair and wor'aing ord-r) may be apportioned from
revenue, and, sub to any limiting covenants in the resolution of the City
Council providing for the issuance of said revenue bonds, the remaining
surplus may be used for any lawful purpose of the City; provided, that the
principal of and interest on said revenue bonds, as the same become due,
and all sums for security funds which may be established b� the City Council
in the resolution providing for the issuance of the bonds, shall be paid from
said revenues before the mainte nance and operation costs of the Enterprise
are paid and before any surplus is used for any other lawful prupose of the
City. The City Council may provide for the issuance of additional bonds
pursuant to the revenue Bond Law of 1941 Sor the purpose of acquiring,
constructing; improving or financing - the Enterprise, or any extensions or
additions thereto, or any combination of two or more of such purposes, either
on a parity with the revenue bonds herein to, be authorized or subject to such
limitations as the City Council shall determine, all as specified by the City
Council at the time of the issuance of the revenue bonds herein to be authorized.
Section 4. The City Council do .-s hereby submit to the qualified
voters of the City of Cupertino at said special revenue '.pond election the
said measure set forth in Section l of , this resolution, and designates and
refers to said measure in the form of ballot hereinafter prescribed for use
at said election.
(a) Sa_.id special revenue bond election shall be held and conducted,
and the votes thereat canvassed and the returns thereof made, and the result
thereof ascertained and determined as herein provided; and in all particulars
not prescribed by this resolution said special revenue bond election shall
be held and conducted and the votes r;ceived and canvassed in the manner pro-
vided by law for the holding of municoal elections in said City.
(b) All persons qualified to vote at municipal elections in said
City of Cupertino upon the date of the election herein provided for shall
be qualified to vote upon the measure submitted at said special revenue bond
election.
(c) The polls at the polling p:Lace hereinafter desginted shall be
opened at 7: "0 o'clock A.M. (Cal. D.S.T.) of said day of election and shall
be.kept open continousiy thereafter u:ztil 7:00 o'clock P.M. (Cal. D.S.T.) of
said day of election, when the polls shall be closed (except as prn•:-'.dcd in
Section 5734 of the Eledtions Code), and the election officers shall there-
upon proceed to canvass the ballots east thereat.
(d) For the purpose of said spscial revenue bond election said City
is hereby constituted as one (1) special election precinct, comprising all
of the territory within the city limits of said City. The designation of
and the polling place in said special election precinct and the election
officers appointed to conduct said elaction thereat shall be as hereinafter
-3-
set forth, to wit:
PRECIf CT NO. 1
(comprising all of the territory within the city limits of the City
of Cupertino)
Polling Place: 10321 South Saratoga- Sunnyvale Road, Cupertino, Cal-
ifornia
Inspector: Pearl Reynolds
Judge: Lucille Becker
Clerk: Mary Ann Lima
Clerk: Doris Adamo
(e) The ballots to be used at said special revenue bond election
shall be substantially in the following form, to wit:
NO.: (This number shall be M,4RK CROSS (X) ON BALLOT OVLY `
torn off by Inspector RUBB -R STAI'T
. and handed to the voter) NEVER VTITH PE11 OR PENCIL.
Q (ABSMITEE BALLOTS MAY BE 1,ARe, D .
No. WITH PEN AND INK OR PENCIL
Fold ballot to this perforated line,
leaving top matgin exposed)
:........................... ............................... ...............
MUNICIPAL BALLOT
CITY OF CUPERTI140
Santa Clara County
California
SPECIAL REMIUE BOND ELECTION
TUESDAY, 1959
:INSTRUCTIONS TO VOTERS: To vote on any measure, stamp a cross (X) in the
voting square after the word "YES" or after the
word "NO ". -
:All marks except the cross (X) are forbidden. All distinguishing marks
:or erasures are forbidden and make the ballot void. If you wrongly
:stamp, tear or deface this ballot, return it to the Inspector of
:Election and obtain another. On absent voter ballots mark a cross (X)
:with pen or pencil.
MEASURE SUBMITTED TO VOTE OF VOTERS
- MEASURE (A): Shall the City of Cupertino issue revenue bonds .
:("Water in the principal amount of $1,000,000, pursuant :YES .
:System) to the Revenue Bond Law of 1941, to provide funds for: .
:the acquisition, construction, improvement and financing of the:
:following enterpirse, to wit: A water system for the supply,
:treatment, storage, transmission and distribution of water, in -:
:cluding lands, easements, reservoirs, water rights, water tanks;NO
:water mains, wells, pumps, pumping equipment, storage, treatment :
:trans..5ssion and distribution facilities, and other works, pro -:
:perties or structures necessary or convenient for a municipal
: water system for the City of Cupertino?
(f) ]Bach voter to vote fox said censure ,hem oby submitted
acrd in favor of tlar iasuanoe of revenue bonds as not forth in said
weesure shall atmp a caress (x) In the bleak space opposi.tc tbe• worst
4 "XNg" as the ballot to %ba right of acid meaaure,x, and to vote agkAnat
Bald measure and sg*ln ►t fibs issuance of revenue bands as not folds
a.r
In said measure shall stamp a cross (X) in the blank space opposite
the word "NO" on the ballot to the right of s0ti measure. On absent
voter ballots the *roan (x) way be narked with pen or pencil.
(g) The z*turns of said election shall be reams out and
aIgned by the election officers and shall be by there deposited with
the City Clerk together with the balloto cast at said election; and
this City Council sha31 meet on Tuesday, August :8, 1959, at 8:00
o'clock P.M. at its usual meeting place and canvana said returns
an required by law., and declare the roault of said election.
Section 5. The City Clark of the City of Cupertino is hereby
directed to publish this resolution once a week for two succeeding
weeks in The Cupertino - !!Mont& Vista Courier, a newspaper of general
circulation publiuhed less than s1x dcWs a week in oaid Ciby, and
such publication ahall constitute notice of said election hereby
called.
Section 6. Thin revolution shall be forthwith enteired upon the
minutes of this City Council and shall take effect 1mmedinte3ly upon
adoption.
PA&M AA!A ADOPYXD this 6th deny of July, 1959, by the fol-
lowing vote:
AM% Councilmen L&ZAZtEO, NATNiNSON, SAICH, WILSON
Noss: PTLOSI
ABSMt N=
0
Attest:
a!" /9.
Sr airy - UTWA. or 6 My no
1.
c x .
The fax resolution is p=oesented to *e for
apspmai surd is b*xW* aoroved this fth day of iNly, 1959.
Ur lour
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