CC Resolution No. 212RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AP-
PROVING OFFICIAL STATEMENT AND AUTHORIZING AND DIRECTING THE
SALE OF $905,000 PRINCIPAL AMOUNT OF CITY OF CUPERTINO 1960
WATER REVENUE BONDS, SERIES A
WHEREAS, the City Council of the City of Cupertino
has heretofore, by Resolution No. ' 30 , 2 7 , adopted
December 21, 1959 (hereinafter called the "Resolution of Issue "),
duly authorized the issuance of $1,000,000 principal amount of
City of Cupertino 1960 Water Revenue Bonds and the issuance of
$905,000 principal amount thereof as Series A Bonds, and it is
desirable that said Series A Bonds be offered for sale at this
time, subject to the terms and conditions of the Notice of Sale
hereinafter set forth,
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Cupertino, as follows:
Section 1 . Monday, January 18, 1960, at the hour of
8:00 P.M. (P.S.T.) is hereby fixed as the time and the Council
Chambers, City Hall, Cupertino, Santa Clara County, California,
is hereby fixed as the place, at which bids will be received for
the purchase of $905,000 principal amount of City of Cupertino
1960 Water Rovenue Bonds, Series A, subject to the terms and
conditions of the Notice of Sale hereinafter set forth.
Section 2 . The City Council hereby approves the Offi-
cial Statement of the City relating to said Series A Bonds in
substantially the form thereof submitted at the meeting at which
subject to such chan es as shall be required by bond CounAl
this resolution is adopted and hereby directs the City Clerk to
file said form with the minutes of this meeting; and J. B. Hanauer
& Co., financial consultants to the City, are hereby authorized
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and directed, pursuant to their agreement with the City, to
cause copies of said Official Statement and of said Notice of
Sale to be printed and mailed to prospective bidders for said
Bonds, along with printed copies of the Resolution of Issue.
Section 3 . Messrs. Orrick, Dahlquist, Herrington &
Sutcliffe, bond counsel to the amity, are hereby authorized to
cause copies of the Resolution of Issue to be printed at the
City's expense for mailing by said financial consultants as
aforesaid.
Section 4 . The City Clerk is hereby authorized and
directed to cause the notice of sale of said Series A Bonds to
be published once in the Cupertino-Monta Vista Courier, a news-
paper published and circulated In the City, and such notice shall
be in substantially the following form:
OFFICIAL N OTICE OF SALE
$905 ,000 CITY OF CUPERTINO 1960 WATER REVENUE BONDS, SERIES A
NOTICE IS HEREBY GIVEN that sealed proposals will be
received by the City Council of the City of Cupertino, Santa
Clara County, California, at the Council Chambers, City Hall,
10,321 Sunnyvale- Saratoga Road (Highway 9), Cupertino, Santa
Clara County, California, on
MONDAY, JANUARY 18 1960
at 8:00 P.M. (P,S.T.) for the purchase of $905,000 principal
amount of City of Cupertino 1960 Water Revenue Bonds, Series A,
authorized to be issued under the provisions of a resolution of
the City Council adopted December 21 1959 (hereinafter called
the "Resolution "). The Bonds are more particularly described
in the Resolution (which is incorporated herein by reference)
and a copy thereof will be furn:Lshed to any interested bidder
upon request. Said bonds are part of an authorized issue in
the aggregate principal amount of $1,000,000 authorized at a
special revenue bond election held in the City on October 13,
1959 The remaining $95,000 of Bonds of said authorized issue
will not be offered for sale pr"-or to May 1, 1960. The Bonds
hereby offered for sale are generally described as follows:
ISSUE $905 ,000 consisting of 905 bonds of the
denominat�_on of $1,000 each, numbered Al
to A905 both inclusive, desipated "City of Cupertino 1960
Water Revenue Bonds, Series A .
DATE: The Series A Bonds are dated February 1, 1960.
INTEREST RATE Maximum not to exceed 6% per annum, payable
annually the first year on February 1, 1961,
and thereafter semi - annually on February 1 and August 1 in each
year. The maximum net interest cost to the City on all Series A
Bonds sold below the par value thereof shall not exceed an aver-
age of 6% a year payable semi - annually to the respective maturity
dates of such Series A Bonds determined by standard tables of bond
values. (No bid for less than 98% of the par value of the Series
A Bonds will be accepted. See below under the heading "Form of
Bid ".) Bidders will be permitted to bid different rates of inter-
est and to split rates irrespective of the maturities of said bonds,
provided that the interest rate or rates stated in any bid must be
in a multiple of 1/8 or 1/20 of 1% and that no bond shall bear more
than one rate of interest or more than one coupon to evidence any
interest payment.
MATURITIES The Series
A Bonds mature serially as follows:
Maturity Date
Principal
(February 1)
Amount
( Both years inclusive
$ 5,000
1962
10,000
1963 -1964
15,000
1965 -1966
20,000
1967 -1968
27,000
1969 -1970
30,000
1971 -1972
35,000
1973
40,000
1974-1975
47,000
1976
50,000
1977 -1978
55,000
1979 -1980
6o,000
1981 -1982
65,000
1983
70,000
1984
75,000
1985
REDEMPTION Bonds numbered
Al to A575, both inclusive,
maturing by
their terms on or prior to Feb-
ruary 1, 1980, are not subject to call and redemption prior to
their fixed maturity dates. Bonds numbered A576 to A905, both
inclusive, maturing on or after February 1, 1981, are subject to
call and redemption, at the option of the City, on February 1, 1972,
but not prior thereto, and on any interest payment date thereafter
prior to maturity as a whole, or in part, in inverse numerical
order from higher to lower, from funds derived by the City from
any source, at the principal amount thereof and accrued interest
to date of redemption plus a premium as set forth in Column 3 be-
low, as follows:
3
Column 1
Column 2
Column 3
Column 1
Column 2
Column 3
Bonds
—
on Ts
Redeemed
And
Redeemed
And
On or
Prior
On or
Prior
After
to
After
to
February 1
February 1
Premium
February 1
February 1
Premium
1972
1973
4 -3/4%
1980
1981
1 -1/2%
1973
1974
4 -1/4%
1981
1982
1 %
1 974
1975
3 -3/49
1982
1983
3/4%
1975
1976
3 -1/2%
1983
1984
1/2%
1976
1977
3 -1 /4%
1984
Maturity
1/4%
1M
1979
2 -1/2�
1979
1980
2 %
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 (the Fiscal Agent), 300 Montgomery Street,
San Francisco, California, or, at the option of the holder, at the
office of the paying agent of the City in New York, N.Y., or in
Chicago, Illinois.
EXECUTION AND Coupon bonds will be issued by the City.
REGISTRATION Said bonds will be executed by the manual
signature of at least one official authorized
to execute the Bonds. Said bonds are registrable only as to both
principal and interest.
PURPOSE The Series A Bonds are authorized for the
purpose of the acquisition by purchase and
the improvement and financing of a municipal water system for the
City.
SECURITY The principal of and interest on the Series A
Bonds are payable exclusively from a special
fund provided for in the Resolution (designated the "1960 Water
Revenue Fund "). Bidders are referred to the Resolution and to the
Official Statement for further particulars.
FISCAL AGENT Bank of America National Trust and Savings
Association has been appointed Fiscal Agent
for the payment of the principal and interest of the Series A
Bonds and the registration therEof and will hold in trust the In-
terest Fund, Retirement Fund and. Reserve Fund, and all moneys paid
to it.out of revenues for the payment of bond principal and inter-
est and Reserve Fund purposes.
TAX EXEMPT STATUS In the event that prior to the delivery of
the Series A Bonds the income received by
private holders from bonds of tr.e same type and character shall be
declared to be taxable 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, the successful bidder
may, at his option prior to the tender of the Series A Bonds by
the City, be relieved of his obligation under the contract to pur-
chase the Series A Bonds, and in such case the deposit accompanying
his bid will be returned.
M
LEGAL OPINION The legal opinion of Messrs. Orrick,
Dahlquist, Herrington & Sutcliffe, of
San Francisco, California, approving the validity of the Series
A Bonds will be furnished without charge to the successful bid-
der. A copy of 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 Series A Bonds will be awarded to the
highest bidder, considering the interest
rate or rates specified in the bid and the premium or discount
bid, if any. The highest bid will be determined by deducting
the amount of the premium bid (if any) from, or adding the
amount of the discount bid (if any) to, the total amount of in-
terest which the City would be required to pay from the date of
the Series A 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 lowest net interest cost to the City.
The lowest net interest cost shall be computed on a 360 -day year
basis. The purchaser must pay accrued interest from the date of
the Series A Bonds to the date of delivery. The cost of printing
the Series A Bonds will be borne by the City.
Right of The City reserves the right, in its discre-
Rejection tion, to reject any and all bids and to waive
any irregularity or informality in any bid.
Prompt Award The City '.ouncil will take action awarding
the Series A Bonds or rejecting all bids not
later than 24 hours after the expiration of the time herein pre-
scribed for the receipt of proposals, unless such time of award
is waived by the successful bidder.
Prompt Delivery Delivery of the Series A Bonds will be made
to the successful bidder at the San Fran-
cisco Main Office of the Fiscal Agent, in San Francisco, California,
as soon as the Bonds can be prepared, which it is estimated will
be within 30 days from the date of sale, but not prior to the date
of the Series A Bonds. The Series A Bonds will be delivered simul-
taneously with the purchase of the water system by the City and the
transfer of ownership thereof to the City.
Right of The successful bidder shall rave the right,
Cancellation at his option, to cancel the contract of
purchase of the Series A Bonds if the City
shall fail to execute the Series A Bonds and tender the same for
delivery within 60 days from the date of sale thereof, and in such
event the successful bidder shall be entitled to the return of the
deposit accompanying his bid,
Form of Bid: All bids must be for not less than all of
the Series A Bonds hereby offered for sale,
and for not less than 98% of the par value thereof and accrued in-
terest to date of delivery. Each bid must specify the rate or
rates of interest to be borne by the Series A Bonds. In addition,
each bid for any of the Series .A Bonds at less than the par value
thereof must specify the Bonds of each maturity to be purchased
at less than par, the purchase :price thereof, the interest rate
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or rates to be borne by such Bor,.ds and the net interest cost on
such Bonds from their date to their respective maturity dates as
determined by standard tables of bond values. The net interest
cost to the City on all Series A Bonds sold below the par value
thereof shall not exceed an average of 6% a year payable semi-
annually to the respective maturity dates of such Series A Bonds
determined by standard tables of bond values. Each bid, together
with bidder's check, must be enclosed in a sealed envelope ad-
dressed to the City Council of the City of Cupertino, Santa Clara
County, California, and endorsed "Proposal for City of Cupertino
1960 Water Revenue Bonds, Series A ".
Bid Check With each bid must be submitted a certified
check or cashier's check for $5,000 drawn
on a bank or trust company transacting business in the State of
California payable to the order 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. In z.ddition bidders are requested,
but not required, to supply an estimate of the total net interest
cost to the City on the basis of their respective bids, which
shall be considered as informative only and not binding on either
the bidder or the City. Checks of the unsuccessful bidders will
be returned by the City by mail upon the award of the Bonds. No
interest will be paid upon the deposit made by the successful
bidder.
Official Statement
The City has prepared an official statement,
a copy of which will be furnished upon re-
quest addressed to Messrs. J. B. Hanauer & Co., 40 South Beverly
Drive, Beverly Hills, California, the City's financing consultants.
There is no controversy or litigation pending or threat-
ened concerning the validity of the Series A Bonds, and the City
will furnish to the successful bidder a no- litigation certificate
certifying to the foregoing as cf and at the time of the delivery
of the Series A Bonds.
Dated: December 21, 1959
y Ulerk o the City Of uper no,
State of California.
Section 4. This Resolution shall take effect from and
after its passage and approval.
PASSED AND ADOPTED this 21st day of December, 1959, by
the following vote:
AYES: Councilmen
NOES:
ABSENT:
Rayor of e City o uper no
State of California
"City Clerk of the City of Cupertino
State of California
no
CLERK'S CERTIFICATE
City Clerk of the City
of Cupertino, California, do hereby certify that the foregoing
is a full, true and correct coPy of a resolution duly adopted
at a regular meeting of the City Council of said city duly and
regularly and legally held at the regular meeting place thereof
on the 21st day of December, 19:.9, of which meeting all of the
members of said City Council had due notice and at which a maj-
ority thereof was present; that at said meeting said resolution
was introduced by Councilman
and read in
full, and was thereupon, on motion of Councilman ,
seconded by Councilman , adopted by the follow-
ing vote:
AYES: Councilmen
NOES:
ABSENT:
That I have carefully compared said resolution with
the original minutes of said meeting on
my office and that said resolution is a
copy of the original resolution - adopted
tered in said minutes. That said resole
modified or rescinded since the (date of
same is now in full force and effect.
file and of record in
full, true and correct
at said meeting and en-
ition has not been amended,
its adoption, and the
WITNESS my hand and the seal of said City of Cupertino
this `yl 0 day of December, 1959,
City Clerk of e City of uper no,
State of California
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