CC RESOLUTION 1539RESOLUTION NO. 1539.
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF EL SEGUNDO, CALIFORNIA,
DIRECTING THE CITY CLERK TO PUBLISH
NOTICE INVITING SEALED PROPOSALS FOR
$300,000 BONDS OF SAID CITY.
WHEREAS, an ordinance providing for the issuance
of bonds of the City of E1 Segundo in the amount of $100,000,
to be designated WATERWORKS BONDS, ELECTION 1948, SERIES 4,
has been introduced; and
WHEREAS, an ordinance providing for the issuance of
bonds of the City of El Segundo in the amount of $200,000,
to be designated PARK AND RECREATION BONDS, ELECTION 1954,
SERIES 2, has been introduced; and
WHEREAS, it is desirable that all of said bonds be sold;
NOW, THEREFORE, the City Council of the City of E1
Segundo DOES HEREBY RESOLVE, DETERMINE AND ORDER as follows:
Section 1. That said bonds be sold and that sealed
bids or proposals for the purchase of said bonds be received
up to the time stated in the notice hereinafter set forth.
Section 2. That the City Clerk be and she is hereby
authorized and directed to publish said notice once in the
EL SEGUNDO HERALD, a newspaper of general circulation published
in said city.
Section 3. That said notice shall be substantially as
follows:
:i�ftmi V'
NOTICE INVITING BIDS ON $300,000
BONDS OF THE CITY OF EL SEGUNDO,
CALIFORNIA.
NOTICE IS HEREBY GIVEN that the City Council of
the City of E1 Segundo, California, will receive
sealed proposals for the purchase of $300,000 par
value general obligation bonds of said city, at its
Council Chambers in the City Hall in the City of
E1 Segundo, California, up to the hour of 7:00
o'clock, P.M., October 13, 1955.
The bonds on which sealed bids will be received
consist of two separate issues of bonds as follows:
(1) $100,000 bonds of the City of E1 Segundo
which are designated WATERWORKS BONDS,
ELECTION 1948, SERIES 4, are one hundred
in number, numbered 1 to 100, inclusive,
of the denomination of $1,000 each, to be
dated November 1, 1955, and are to be
payable in consecutive numerical order,
$5,000 on November 1 in each of the years
1956 to 1975, both inclusive. Said bonds
are the remaining unsold portion of a total
issue of $950,000 authorized at an election
held December 14, 1948, for additions to
and extensions and improvements of the
waterworks system of said city.
(2) $200,000 bonds of the City of E1 Segundo
which are designated PARK AND RECREATION
BONDS, ELECTION 1954, SERIES 2, are two
hundred in number, numbered 1 to 200,
inclusive, of the denomination of $1,000
each, to be dated November 1, 1955, and
are to be payable in consecutive numerical order,
$10,000 on November 1 in each of the years
1956 to 1975, both inclusive. Said bonds
are the remaining unsold portion of a total
issue of $375,000 authorized at an election
held November 2, 1954, for the acquisition
and construction of park and recreation
facilities.
Said bonds are to bear interest at a rate or rates
to be determined upon the sale thereof, but not to exceed
five per cent (5%) per annum, payable annually for the
first year and semiannually thereafter. The bonds are
payable in lawful money of the United States of America
at the office of the City Treasurer of the City of E1
Segundo, California, in said city.
Each bid shall state that the bidder offers par
and accrued interest to date of delivery and shall state
the premium, if any, offered on each issue of bonds.
2.
The premium on each issue must be stated separately.
Each bid shall also state the interest rate or rates
not to exceed five per cent (5 %) per annum, payable
annually for the first year and semiannually thereafter,
at which the bidder offers to buy said bonds. Each rate
must be a multiple of 1/4 of 1 %. Not more than three
interest rates may be bid on each issue of bonds.
The rate or rates on one issue need not be the same
as those on the other issue. Bids must be for the
entire $300,000 bonds offered and no bid for a part
of said bonds will be considered. Bids will be compared
on the basis of the lowest net interest cost to the city,
measured from the date of the bonds, on the ent_,e $D00,000
of bonds. The bonds shall be sold for cash only and for
not less than par and accrued interest to date of del_vcry.
For the information of the City Council each
bidder shall state in his bid the total net interest
cost, in dollars, for the entire $300,000 of bonds, and
the average net interest rate determined thereby.
A certified or cashier's check on a responsible
bank or trust company in the amount of $9,000, payable
to the order of the City of El Segundo 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 accompany-
ing 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 of E1 Segundo, shall then be
retained by the City. The check accompanying each unaccepted
proposal will be returned promptly.
At any time before the bonds are tendered for de-
livery, the bidder may disaffirm and withdraw the pro-
posal if the interest received by private holders from
bonds 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 Bureau of Internal Revenue
or by a decision of any federal court, or shall be declared
taxable by the terms of any federal income tax law
enacted subsequent to the date of this notice.
The unqualified legal 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 the expense of the City.
At the time of payment for and delivery of said bonds,
the City will furnish the successful bidder a certificate
that there is no litigation pending affecting the validity
of said bonds.
Payment for and delivery of said bonds shall be
made in the office of the City Treasurer of the City
of E1 Segundo.
The City Council reserves the right to reject any
or all bids or to waive any irregularity or informality
in any bid.
3.
�1 1
The bids will be opened at the meeting of the City
Council to be held Thursday, October 13, 1955, at 7:00
o'clock, P.M., in the Council Chambers in the City Hall
in the City of E1 Segundo, California.
Given by Order of the City Council of the City of
E1 Segundo, California, adopted September 7, 1955.
NEVA M. ELSEY
City Clerk of the City of
(SEAL) E1 Segundo, California.
ADOPTED, SIGNED AND APPROVED this 7th day of
September, 1955•
�" ga
ayor„or� the City or
E1 Segundo, California.
ATTEST:
city Clerk or e city
E1 Segundo, California.
(SEAL)
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES as.
CITY OF EL SEGUNDO
I. NEVA M. ELSEY, City Clerk of the City of E1 Segundo,
California, DO HEREBY CERTIFY that the foregoing resolution was
duly adopt ec�oby4he City Council of said City and was approved
by the Mayor, off said City at an adjourned regular meeting of
said City Council held on the 7th day of September, 1955, and
that it was so adopted by the following vote:
AYES: Councilmen Frederick, Gordon. Swanson and
Mayor pro tem Baker:
NOES: Councilmen None;
ABSENT: Councilmen Mayor Selby.
city clerk or the City
(SEAL) E1 Segundo, California
4.