Minutes 1936/11/02
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Gilroy, California
November 2, 1936
The regular monthly meeting of the Common Council was
called to order by His Honor, Mayor S. D. Heck.
The minutes of meetings of October 3rd, 5th, 13th &
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22nd were read and ordered approved.
Motion by Wilkinson, seconded by Mason that reports of
City Officers be accepted and placed on file.
Motion by Stewart, seconded by Wilkinson that the City
purchase four highway signs from Safety Signal Co., Atascadero,
Calif.--two for Water Dept. and two for Street and Sewer Dept.
at $5.50 each.
Motion by Milias, seconded by Stewart that we deny Mr.
Heaton permission to operate a hamburger stand on Monterey
/ Street between fir$t and Second st.
Motion by Wilkinson, seconded by Stewart that we accept
Councilman Milias's report and recommendation, and change
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the fis8al year of the library from December 1, 1936 to
June 30, 1937. and appropriate the library $283.00 a month.
Motion by Heiner, seconded by Wilkinson that the Clerk
issue statement tv conrf~ to Resolution No. 70 and affix
the seal thereto.
IGTB: Ayes: Geo. C. Milias, Jr., Ben Stewart, Ge. M. Mason,
Harry L. Wilkinson, Nat Heiner.
Noes: None
Absent: J. H. Rush
Resolution No. 70 was then introduced by Councilman Nat
Heiner. Motion by Heiner seconded by Milias that Resolution
No. 70 be passed and adopted.
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RESOLUTION NO. 70
DECLARING CANVASS OF RE'l'URNS, AND RESUL'!' OF SPECIAL BOND
ELECTION HELD OCTOBER 27, 1936
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WHEREAS, the Common Council of the City of Gilroy by
Ordinance No. 419 duly called and ordered held in said City of
Gilroy an election on the 27th day of October, 1936, for the
purpose of submitting to the qualified voters and electors thereof
the following proposition, to wit:
PROPOSITION: Shall the City of Gilroy incur a
bonded indebtedness in the principal
amount of $31,000 for the object and purpose of
acquiring, constructing and completing the follow-
ing municipal improvement, to wit: A municipal
auditorium, assembly and convention hall, including
a.J;:L.J~~q.~,puilding, furniture, fixtures and
equipment necessary for municipal auditorium,
assembly and convention hall purposes?
AND WHEREAS, said ordinance calling and ordering said
election was duly published as required by law and by said ordi-
Hazel E. Martin
nance, as appears from the affidavit of
principal clerk of the GilroY' Evening Dispatch
on file in the office of the City Clerk of said City of Gilroy;
and
WtlEREAS, it appears that said special election was
duly held in accordance with law and with said call, on the said
27th day of October, 1936, as aforesaid, and that the polls for
said election were kept open during the time required by law,
and that said election was held and conducted, and the votes
thereat received and canvassed, and the returns thereof ascertain-
ed, determined and declared, all as provided by the laws of the
State of California, and by said ordinance; and
WHEREAS, on this day, to wit, Monday, the 2nd day of
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November, 1936, at the hour of eight o'clock P.M., the Common
Council of the City of Gilroy met at its usual place of meeting
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and has canvassed the returns of said special election as required
by law, and the result of said canvass is found to be as herein-
after stated and set forth:
IT IS HEREBY RESOLVED, DETERI'I1INED AND DECLARED by the
Common Council of the City of Gilroy, as follows:
1. - That the proposition voted upon at said special
election was as follows:
PROPOSITION: Shall the City of Gilroy incur a
bonded indebtedness in the principal
amount of $31,000 for the object and purpose of
acquiring, constructing and completing the follow-
ing municipal improvement, to wit: A municipal
auditorium, assembly and convention hall, including
all lands, building, furniture, fixtures and J
equipment necessary fior mun1101pal e.Ud~ tor1um, ,
assembly and convent on ha 1 purposes.
2. - That by said ordinance calling said special election
said City of Gilroy was constituted one election precinct, the
boundaries of which should be coterminous with the boundaries of
said City.
3. - That the total number of votes cast at said special
election was
663
votes; that the number of votes cast
thereat in favor of said proposition was
611.
votes; that
the number of votes cast thereat against said proposition was
52
votes; that
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ballots were spoiled and
not counted; that more than two-thirds of all the votes cast at
said special election were in favor of said proposition and
authorized the incurring of a bonded debt for the purpose set
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forth in said proposition, and that said proposition carried.
That
the City Clerk of the City of Gilroy be, and is hereby, instructed
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to enter this resolution on the minutes of this Common Council
r: as a statement of the result of said election.
PASSED AND ADOPTED by the Common Council of the City
of Gilroy, at a
regular monthly
meeting held this
2nd day of November, 1936, by the following vote:
Ayes: Councilman George C, Milias Jr, Ben stewart,
George M. Mason, Harry L. Wilkinson, Nat Heiner.
Noes: Councilman None.
Absent: Councilman J. H. Rush
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Mayor of the Cfty 0 lroy,
California
Attest:
e/i. V?~
City erk
Presented to and approved by me this ~ ,,).. day of
November, 1936.
----==~~r1J:YWe e
Mayor 0 the City 0
California.
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Resolution No. 71 was then introduced by Harry L. Wilkinson.
Motion by Mason, seconded by Milias that Resolution No. 71 be passed
and adopted.
VOTE: Ayes: George C. Milias, Jr. Ben Stewart, George M. Mason,
Harry L. Wilkinson, Nat Heiner.
Noes: None
Absent: J. H. Rush
Motion by Milias, seconded by Wilkinson that bills be allowed
and warrants ordered drawn on the Treasurer.
Adjourned to Nov. 16-36
at 8.00 P.M.
t:' f/ if(~, (j 14,
E. F. Rogers,
City Clerk.
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RESOLUTION NO. 71
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PROVIDING FOR THE ISSUANCE OF $31,000 PRINCIPAL AMOUNT OF
"CITY OF GILROY IVIUNICIPAL AUDITORIUM BONDS OF 1936"; PRE-
SCRIBING THE DATE AND tnm~ OF SAID BONDS AND OF THE COUPONS
TO BE ATTACHED THERETO; FIXING THE MAXIMUM RATE OF INfl'EREST
ON SAID BONDS, AND PEESCRIBING THE IfiA'J:URI1rIES THEREOF; AUTHOR-
IZING THE EXECUTION OF SAID BONDS AND COUPONS, AND PROVIDING
FOR THE LEVY OF A TAX TO PAY THE PRINCIPAL AND INTEREST THERE-
OF; AND DIRECTING NOTICE OF SALE OF SAID BONDS TO BE GIVEN.
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. WHEREAS, all the requirements of law have been complied
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with in calling and holding the special election held in the City
of Gilroy on the 27th day of October, 1936, at which election
the proposition to issue bonds of said City in the principal
sum of $31,000 for the purpose of acquiring, constructing and
completing said municipal improvement of said City of Gilroy,
to wit: A municipal auditorium, assembly and convention hall,
including all lands, building, furniture, fixtures and equipment
necessary for municipal auditorium, assembly and convention hall
purposes, was submitted to the voters of said City; and the
Common Council of said City did meet and canvass the returns of
said election on Monday, the 2nd day of November, 1936, and did
as the result of such canvass determine and declare, and do hereby
certify, that said proposition received at said special election
the affirmative vote of more than two-thirds of all of the voters
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voting at said election, and was thereby carried and adopted by
said election, and the issuance of all of said bonds by said City
was duly authorized,
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NOW, THEREFORE, BE IT RESOLVED by the Connnon Council
of the City of Gilroy, as follows:
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Section 1. That the bonds of the City of Gilroy in
the aggregate principal sum of $31,000, to be known as the "City
of Gilroy Municipal Auditorium Bonds of 1936," shall issue to
pay the cost of the acquisition, construction and completion of
the following municipal improvement of said City, to wit: A muni-
cipal auditorium, assembly and convention hall, including all
lands, building, furniture, fixtures and equipment necessary for
municipal auditorium, assembly and convention hall purposes.
Section 2. That said bonds shall be issued as herein-
after set forth, and shall be sold in accordance with law at not
less than their par value and accrued interest. Said bonds shall
be negotiable in form, and of the character known as serial, and ~
shall be thirty-one (31) in number, numbered consecutively from
1 to 31, both inclusive, of the denomination of $1000 each. All
of said bonds shall bear interest from their date until paid at
the rate or rates designated in the bid of the successful bidder
at the time of the sale of said bonds, but not to exceed four (4)
per cent. per annum, payable semiannually. Such interest shall be
evidenced by coupons attached to each bond, and each of said
coupons shall represent six months'interest on the bond to Which
it is attached. The principal and interest of said bonds shall be
payable at the office of the Treasurer of said City of Gilroy in
lawful money of the United States. Said bonds shall be dated
November 1, 1936, and shall mature and be payable in consecutive
numerical order, from lower to higher, as follows, to wit:
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One (1) of said bonds shall mature and be payable
on November 1st in each of the years 1937
to 1965, both inclusive; and
Two (2) of said bonds shall mature and be payable
on November 1, 1966.
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Said interest coupons shall be payable on the 1st day of May and
the 1st day of November in each year until and at the respective
dates of maturity of said bonds, the first coupon on each bond
being payable May 1, 1937.
Section 3. Said bonds shall each be substantially in
the following form, the blanks in said form and in the form of
coupon given below to be filled with appropriate words or figures,
namely:
UNITED STATES OF AMERICA
STATE OF CALIFORNIA
Santa Clara County
CITY OF GILROY MUNICIPAL AUDITORIUM BOND OF 1936
No._
$1000
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The City of Gilroy, a municipal corporation organ-
ized and existing under the Constitution and laws of the
State of California, hereby acknowledges itself indebted
and for value received promises to pay to the bearer (or
if this bond be registered, to the registered holder hereof)
on the 1st day of November, 19 , ONE THOUSAND (1000) DOL-
LARS, together with interest thereon at the rate of
per cento per annum, payable semiannually on the first day
of May and the first day of November of each year. Unless
this bond is registered such interest shall be payable only
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 at the office of the Treasurer of
said Cityo
This bond is issued under and pursuant to the Constitu-
tion and statutes of the State of California, and under and
pursuant to the charter, ordinances and proceedings of said
City duly 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.
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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 n~nner as required by law, and that the amount of
this bond, together with all other indebtedness of said City
does not exceed any limit prescribed by the Constitution or
statutes of said state or the charter of said City, and that
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provision has been made as required by the Constitution 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 and interest of this bond.
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This bond may be registered in the manner provided by
law and thereafter the principal hereof and interest hereon
shall be payable only to such registered owner.
IN vVITNESS VfrillREOF, said City of Gilroy has caused
this bond to be executed under its corporate seal, signed
by its Mayor and its Treasurer, and countersigned by its
Clerk, and has caused the interest coupons hereto attached
to be signed by its Tre~surer, and this bond to be dated
the first day of November, 1936.
Mayor of the City of Gilroy
City Treasurer of the City
of Gilroy
Countersigned:
City Clerk of the City of Gilroy
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The interest coupons shall be signed by the Treasurer
of said City by his engraved or lithographed signature, and shall
be substantially in the following form:
$
Coupon No.
On the first day of , 19
the City of Gilroy will (unless the within mentioned ---
bond be registered) pay to bearer at the office of
the Treasurer of said City Dollars, $
in lawful money of the United States, being six ---
months' interest then due on its Municipal Auditorium
Bond of 1936 . . . . . . . . . . . . . . . . . . . . .No._
Treasurer of the City of Gilroy .tI
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Section 4. The ~myor of said City of Gilroy and the
Treasurer of said City are hereby authorized and directed,
respectively, as such officers to sign each of said bonds on
behalf of said Oity, and the City Olerk is hereby authorized and
directed to cou~ersign each of said bonds and to affix the corpo-
rate seal of said City thereto; and the said Treasurer is hereby
authorized and directed to sign each of the interest coupons,
either by his own hand or by printed, lithographed or engraved
facsimile signature; and such signing, countersigning and sealing
shall be a sufficient and binding execution of said bonds and cou-
pons by said City.
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Section 50 For the purpose of paying the principal and
interest of said bonds the Oommon Council of said City of Gilroy
shall, at the time of fixing the general tax levy and in the
manner for such general tax levy provided, levy and collect annual-
ly each year until such bonds are paid or until there shall be a
sum in the treasury of said City set apart for that purpose, to
meet all sums coming due for princ:ipal and interest on said bonds,
a tax sufficient to pay the annual interest on said bonds, and also
such part of the principal thereof as shall become due before the
time for fixing the next general tax levy. Said tax shall be in
addition to all other taxes levied for municipal purposes, and
shall be collected at the same time and in the same manner as other
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municipal taxes are collected, and as collected shall be forthwith
paid into the fund for which the same was levied and collected.
Such fund shall be designated "1936 Nlunicipal Audi torium Bond Fund, II
and all sums to be come due for the principal and interest on said
bonds shall be paid from such fund. There shall likewise be de-
posited in said fund any moneys received on a ccount of interest
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accrued on said bonds from their date to the date of delivery and
actual payment of the purchase price thereof.
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Section 6.
There is hereby created and established a
fund to be known as "1936 Municipal Auditorium Construction Fund,"
which shall be kept by the Treasurer of said City, and all proceeds
of sale of any of said bonds (except accrued interest received on
such sale) shall be placed by the Treasurer to the credit of said
fund and shall be kept separate and distinct from all other municipal
funds, and shall be applied exclusively to the acquisition, con-
struction and completion of the aforesaid municipal improvement.
Section 7- The City Clerk is directed to cause a
sufficient number of blank bonds and coupons of suitable quality
to be lithographed, printed or engraved, and to cause the blank II
spaces thereof to be filled in to comply with the provisions hereofJl
and to procure their execution by the proper officers, and to
deliver them, when so executed, to the Treasurer of said City, who
shall safely keep the same until they shall be sold by the Common
Council; whereupon he shall deliver them to the purchaser or pur-
chasers thereof on receipt of the purchase price therefor.
Section 8. All of said bonds shall be sold by this
Common Council on the 16th day of November , 193~, and
said City Clerk is hereby directed to publish once in "The Gilroy
Evening Dispatch," the official newspaper of said City of Gilroy,
a notice of sale in substantially the following form, to wit:
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OFFICIAL NOTICE OF SALE
OF
CITY OF GILROY MUNICIPAL AUDITORIUM BONDS OF 1 9 3 6
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NOTICE IS HEREBY GIVEN that sealed bids will be received
by the City Clerk of the City of Gilro~, State of California,
at his office in said City, until five 0' clock, P.M.,
of Monday ~ the 16th. day of November-
1936 , for the purchase of ~31,bob principal. amount of Ci ty
of GIIroy Municipal Auditorium Bonds of 1936. Said bonds
constitute an issue of bonds of said City, known as the
"City of Gilroy Municipal Auditorium Bonds of 1936," aggregat-
ing in principal amount the sum of $31,000, consisting of
31 bonds of the denomination of $1,000 each, numbered con-
secutively from 1 to 31, inclusive, all dated November 1,
1936. Bidders must specify the rate of interest which the
bonds hereby offered for sale shall bear and said bonds will
be awarded to the highest and best bidder, considering the
rate specified and the premium offered, if any. Bidders will
be permitted to bid different rates of interest for different
maturities of said bonds. The interost rate stated in the bid
must be in a multiple of one-quarter of one per cent. per
annum, payable semiannually, and the interest rate shall not
exceed four (4) per cent. per annum, payable semiannually on
May 1st and November 1st of each year. Said bonds mature and
are payable in consecutive numerical order, from lower to
higher, one (1) on November 1st in each of the years 1937 to
1965, both inclusive, and two (2) on November 1, 1966. /
With each bid must be submitted a certified check or
Cashier's check in the sum of $1500, payable to the order of
the Treasurer of the City of Gilroy, as guarantee that the
bidder will purchase and pay for said bonds in the event his
bid i~ accepted. Bids will be received for all or any of
said $31,000 principal amount of said bonds at not less than
their par value and accrued interest as specified. All bids
must be unconditional, and, together wi th bidder's check must
be enclosed in a sealed envelope endorsed "Proposal for City
of Gilroy Municipal Auditorium Bonds of 1936." The City
of Gilroy reserves the right to reject any and all bids.
The legal opinion of Messrs. Orrick, Palmer & Dahlquist
of San Francisco, California, approving the valldity of said
bonda will be furnished to the successful bidder without
charge, together with a certified copy of the transcript of
proceedings. '
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Said bonds were authorized at an election held on October
27, 1936 (the vote being 611 "Yes" and 52 "No") for
the acquisition, construction and completion of a--municipal
auditorium, assembly and convention hall, a~l as set forth in
the proposition as submitted at said election.
The City of Gilroy was incorporated Maroh 12th 1870 .
The population (Census of 1930) was 3502 ; the present
conservative estimateis 3800 . The assessed valuation
of all taxable property in said City is $ 2,916,042
and the total bonded indebtedness (not including this issue) is
$ 171.000.00 . The tax collection record of said City is
as follows:
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Fiscal
Year
1931-32
1932-33
1933-34
1934-35
1935-36
Total amount
of City taxes
levied for each
fiscal year
$ 36, 068. 18
$ 30, 799. 52
$ 28, 674. Q8
$ 28, 005. 48
$ 29, 286. 27
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Amount of City
taxes uncollected
at the end of
each fiscal year
$ 807. 40,
$ 988. 25
$ 1162. 47
$ 903. 12
$ 672. 09
Amount of all
City taxes un-
collected as of
July 1, 1936
$ 445. 35 0
$ 607. 05
$ 447. 64
$ 545. 13
$ 672. 09
Further information relative to the financial condition
of the City will be furnished to any bidder upon request.
There is no controversy or litigation pending or threaten-
ed concerning the validity of the above issue, the corporate
existence of the City or the title of the officers to their
respective offices.
This notice is given pursuant to resolution of the Common
Council of the City of Gilroy adopted November 2, 1936.
E. F. ROGERS
City Clerk of the City of
Gilroy, California.
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Section 9. This resolution shall take effect from and
after its passage and approval.
PASSED AND ADOPTED this 2nd day of November, 1936, by
the following vote:
Aye s; Cqunc ilman George C. r!Iilias Jr, Ben Stewart,
George M. Mason, Harry L. Wilkinson, Nat Heiner.
Noes: Councilman None
Absent: Councilman J. H. Rush.
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