Minutes 1940/02/13
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Gilroy, (jali for nia.
February 13,1940.
'l'hdls regular adjourned meeting of the Common Council is called to
order by His Honor M~or S.D.Heck.
Present:Councilmen:George CiMilias,Jr.,Jack Rogers,James Battersby,
RESOLUTION NO.119 is presented and read.
George M.:Mason,Nat He iner. Absent: Councilmen: George A.Martin.
Councilman Milias now presents the personal check of Mr.L.W.
Ylheeler in the amount of ~~25,000.00,said amount being Mr.VIheeler's
Auditorium.
donation to the city for the purpose of erecting a Municipal
RESOLUTION NO.IIg be adopted.
Motion by Councilman Heiner, seconded by Counc ilman lJason that
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RESOLUTION NO. 119
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PROVIDING FOR THE ISSUANCE OF $31,000 PRINCIPAL AMOUNT OF
"CITY OF GILROY lVlUNICIPAL AUDITORIUM BOI\1DS OF 194011; PRE-
SCRIBING THE DATE AND FORM OF SAID BONDS AND OF THE COUPONS
TO BE ATTACHED THERETO: FIXING THE MAXIMUM RATE OF INTEREST
ON SAID BONDS, AND PRESCRIBING THE N~TURITIES THEREOF: AUTHOR-
IZING THE EXECUTION OF SAID BONDS AND COUPONS, AND PROVIDING
FOR THE LEVY OF A TJcr TO PAY TrlE PRINCIPAL AND INTEREST THERE-
OF: .AND DIRECTING NOTICE OF SALE OF SAID BO:NDS TO BE GIVEN.
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WHEREAS, all the requirements of law have been complied
with in calling and holding the special fflection held in the
City of Gilroy on the 27th day of October, 1936, at which eleo-
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tion 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 oanvass the returns of
said election on Monday, the 2nd day of November, 1936, and did
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as the result of such canvass determine and declare, and do here-
by certify, that said proposition received at said special elec-
tion the affirmative vote of more than two thirds of all of t~e [J
voters voting at said election, and was thereby carried and
adopted by said eleotion, 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 Common Council
of the City of Gilroy, as follows:
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Seotion 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 lv'Iunioipal Auditorium Bonds of 194-0," shall issue to
pay the oost of the acquisition, construotion and oompletion of
the following municipal improvement of said City, 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. It
is hereby found and determined that the city of Gilroy has re-
ceived a grant of moneys to be applied to the payment of part of
the cost of such improvement and that suoh grant, together with
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additional moneys in the General Fund of said City which are
available for said purpose, will be sufficient together with the
prooeeds of the sale of said bonds to pay the cost of the acqui-
sition, construction and completion of said improvement in time,
form and manner as contemplated in the proposition submitted to
the electors of said City. Said grant of money and said addition-
al moneys in the General Fund are hereby made available and ap-
propriated, together with the prooeeds of the sale of said bonds,
to the payment of the cost of said improvement.
Seotion 2. That said bonds shall be issued as herein-
after set forth, and shall be sold in accordanoe with law at
not less than their par value and accrued interest. Said bonds
shall be negotiable in form, and of the charaoter known as
serial, and shall be thirty-one (31) in number, numbered oonsecu-
tively from 1 to 31, both inclusive, of the denomination of
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$1000 eaoh. All of said bonds shall bear interest from their
date until paid at the rate of 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
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represent six months' interest on the bond to which it is at-
tached. 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 February 15, 1940 and shall mature and be payable in con-
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secutive 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 December 15th in eaoh
of the years 19~0 to 1968, both
inclusive; and
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Two (2) of said bonds shall mature and be
payable on Deoember 15, 1969.
Said interest coupons shall be payable on the 15th day of June
and the 15th day of Deoember in eaoh year until and at the
respective dates of maturity of said bonds, the first coupon
on each bond being payable June 15, 1940 (representing interest
to said date from the date of said bonds hereinabove specified.)
Section 3. Said bonds shall eaoh 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:
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3.
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UNI TED STATES OF .AMERICA
STATE OF CALIFORNIA
Santa Clara County
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CITY OF GILROY MUNICIPAL AUDITORI~I BOND OF 1940
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 reoeived promises to pay to the
bearer (or if this bond be registered, to the regis-
tered holder hereof) on the 15th day of Deoember, 19 ,
ONE THOUSAND (1000) DOLLARS, together with interest ---
thereon at the rate of four per cent. per annum, payable
semiannually on the 15th day of June and the 15th day
of Deoember of eaoh 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 beoome 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 City.
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This bond is issued under and pursuant to the Consti-
tution and statutes of the State of California, and under
and pursuant to the charter, ordinanoes and prooeedings
of said City duly adopted and taken and a vote and assent
of more than two thirds of all the qualified eleotors of
said City voting at a special eleotion duly called and
held for that purpose.
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It is hereby certified, reoited and deolared that
all aots, 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, together with
all other indebtedness of said City does not exoeed any
limit presoribed by the Constitution or statutes of
said state or the charter of said City, and that provi-
sion 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
oredit of said City are hereby pledged for the punctual
payment of the principal and interest of this bond.
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 WITNESS VffiEREOF, said City of Gilroy has caused
this bond to be exeouted under its oorporate seal,
signed by its Mayor and its Treasurer, and countersigned
by its Clerk, and has caused the interest ooupons hereto
attaohed to be signed by its Treasurer, and this bond
to be dated the 15th day of February, 1940.
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Mayor of the city of Gilroy
Q,
city Treasurer of the city
of Gilroy
Countersigned:
city Clerk of the City of Gilroy
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:
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Coupon No.
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On the 15th day of , 19__
the City of Gilroy will (unless the within mentioned
bond be regi~tered) pay to bearer at the office of
the Treasurer of said city Twenty Dollars, $20.
in lawful money of the United states, being six
months' interest then due on its Municipal Auditorium
Bond of 1940 . . . . . . . . . . . . . . . . . . No.
Treasurer of the City of Gilroy
Exoept that the first interest coupon on each of said
bonds shall be for four months' interest, in the faoe amount of
$13.33.
seotion 4. The Mayor of said City of Gilroy and the
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Treasurer of said City are hereby authorized and direoted,
respeotively, as such officers to sign each of said bonds on
behalf of said City, and the City Clerk is hereby authorized
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and direoted to oountersign each of said bonds and to affix the
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corporate seal of said City thereto; and the said Treasurer is
hereby authorized and direoted to sign each of the interest oou-
pons, either by his own hand or by printed, lithographed or
engraved faosimile signature; and such signing, countersigning
and sealing shall be a sufficient and binding execution of said
bonds and coupons by said City.
Section 5. For the purpose of paying the principal
and interest of said bonds the Common Council of said City of
Gilroy shall, at the time of fixing the general tax levy and in
the manner for suoh general tax levy provided, levy and oollect
annually each year until said bonds are paid, or until there shall
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be a sum in the treasury of said City set apart for that purpose i
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to meet all sums ooming due for prinoipal and interest on suoh
bonds, a tax sufficient to pay the annual interest on suoh bonds
as the same becomes due, and also such part of the prinoipal
thereof as shall become due before the proceeds of a tax levied
at the time for making the next general tax levy can be made
available for the payment of such prinoipal. Said tax shall be
in addition to all other taxes levied for munioipal purposes,
and shall be collected at the same time and in the same manner
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as other munioipal taxes are oollected, and be used for no other
purpose than the payment of said bonds and accruing interest.
Said taxes as oollected shall be forthwith paid into the fund for
which the same were levied and collected and which shall be desig-
nated "19LtO Municipal Auditorium Bond Fund," and all sums to
beoame due for the principal and interest on said bonds shall be
paid from such fund. There shall likewise be deposited in said
fund any moneys reoeived on aocount of interest aocrued on said
bonds from their date to the date of delivery and actual payment
of the purohase prioe thereof.
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a fund to be known as "1940 Municipal Auditorium Construction a
Fund," which shall be kept by the Treasurer of said City, and
all prooeeds 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 dis-
tinct from all other munioipal funds, and shall be applied ex-
clusively to the acquisition, construction and completion of
the aforesaid munioipal improvement.
Section 6.
There is hereby created and established
Section 7.
The City Clerk is direoted to cause a
sufficient number of blank bonds and coupons of suitable quality
to be lithographed, printed or engraved, and to cause the blank
spaoes thereof to be filled in to comply with the provisions
hereof, and to procure their execution by the proper officers.C]
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 purchasers thereof on reoeipt of the purchase.
price therefor.
Section 8. All of said bonds shall be sold by this
Common Council on the 1st day of March, 1940, and said City
Clerk is hereby directed to publish once in "The Gilroy
Evening Dispatch," the official newspaper of said City of Gilroy,
a notioe 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 1940
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NOTICE IS HEP~BY GIVEN that sealed bids will be
received by the City Clerk of the City of Gilroy,
State of California, at his office in said City,
until 5:00 o'clock, P.M. of Friday, the 1st day
of March, 1940, for the purohase of ~31,000 principal
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amount of bonds, designated tlCi ty of Gilroy Munioipal
Auditorium Bonds of 1940," aggregating in principal
amount the sum of $31,000, consisting of 31 bonds of
the denomination of $1,000 each, numbered consecutively
from 1 to 31, inclusive, all dated February 15, 19~0
and bearing interest at the rate of four (~) per cent.
per annum, payable semiannually on June 15th and Decem-
ber 15th of each year. Said bonds mature and are pay-
able in conseoutive numerical order, from lower to
4igher, one (1) on December 15th in each of the years 19~0
to 1968, both inclusive, and two (2) on December 15, 1969.
No alternative bids will be considered.
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With each bid must be submitted a oertified check
or Cashier's oheck 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 is aooepted. Bids will be received
for all, but not less than all, of said $31,000 prinoipal
amount of said bonds at not less than their par value and
accrued interest as speoified herein. All bids must be
unconditional, and, together with bidder's check must
be enclosed in a sealed envelope endorsed "Proposal for
City of Gilroy Municipal Auditorium Bonds of 19~0." The
City of Gilroy reserves the right to reject any and all
bids.
The legal opinion of Messrs. Orrick, Dahlquist,
Neff & Herrington of San Franoisoo, california, approving
the validity of said bonds will be furnished to the
successful bidder without charge, together with a oerti-
fied copy of the tr~nscript of proceedings.
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, all
as set forth in the proposition as submitted at said
election.
The City of Gilroy was incorporated March 12, IB70.
The population (census of 1930) was 3502; the present
conservative estimate is 3800. The assessed valuation
of all taxable property in said City is $3.196.256.00"and
the total bonded indebtedness (not including this issue) '. ~
is $ 128,500.00 The tax collection record of
said City is as follows:
1934--35
1935-36
1936-37
1937-38
1938-39
Total amount
of City taxes
levied for each
fiscal year
,+One, 00 h 48.
.p,;,o, ...).
Amount of City Amount of ~l~
taxes uncollec- City taxes un~
ted at the end of collected as"'O!
each fiscal year July 1. 19~~
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Fiscal
Year
29,286.27
$ 903.12 $1C)1:; cq
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672.09 168.35
683.00 160.00
1,018.44 465.67
748.07 748.07
28,69[3.82
32, 531 . t33
30,883.29
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Further information relative to the financial condition
of the City will be furnished to any bidder upon request.
This notice is given pursuant to resolution of the Common
Council of the City of Gilroy adopted February 13, 1940.
PO' A. COX
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 13th day of February, 1940
by the following vote:
Ayes:
Noes:
Councilmen:George C.Milias,Jr. ,Jack Hogers,
James Battersby,George M.lilllson,
Nat Heiner.
Councilmen: None
Absent: Councilmen:George A.Iflartin
c:-d~~{d!!
Mayor of the Ci y 0 G~lroy,
California.
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Attest:
G.~~~
City Clerk
Lotion by Councilman 3attersby,seconded by Councilman Rogers and
carried that in the event the .,,,25,000.00 is not used for the erection
of a Municipal Auditorium this amount will be returned to LIr.L. Vi.
1,',Theeler.
Councilman Milias discusses the health service far which the city
is under contra<<t to the Santa Clara County Health Department.
Ii letter addressed to the Santa Clara Gounty Health Department is
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read asking that the sertice be continued as in the past,but,without
compensa tion. A reply from the SaIllta Clara County Health Department,
setting forth the method of proceedure in this matter,is read.
RESOLUTION NO.120 is presented and read.
Mot ion by :-:;ounc ilman L~ilias, se eonded by Coune ilman Hogers that
RESOl,1JT1J:ON NO .120 be adopted.
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RE s d't U TI 0 N N_0120
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BE IT RESOLVED that the Mayor and Common Councilor the
City of Gilroy, the governing body of the City of Gilroy, hereby'
consents that the County Health Officer of the County of Santa
Olara, State of California shall enforce and observe:
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a. order, quarantin~ regulation and rules prescribed
by the StE:,te Department
b. Statutes relating to the public health.
ADOPTED AND PASSED this 13th day of February, A.D., 1940
by the following vote:
AYES: Councilmen: George C.Milias,Jr.,Jack Rogers,James
Battersby,George M.b~son,Nat Heiner.
NOES: Councilmen: None
ABSENT: Councilmen: George A.I'i~rtin
Approved:
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Attest:
(3.~~
City Clerk
. ~olle'(s
80uncllmanAdiscusses changing the alley lights by lowering them,
~th the possibility of saving 30~ per light,the work to be done
by the Coast Counties Gas & Electric Company without charge to the
city. This matter is referred to the Lighting CorMaittee for action.
Councilman Rogers discusses the City Engineer's bill for January
with respect to surveying of a sewer .1inerfor. Iilr.Btlzzini.
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The City Engine~r's report for the month of January,lg40,is read.
Councilman Heiner discusses the request of Foster & Y~eiser to
pJa ce two signs-one on North Monterey Street and om on South
Montere y Street. No objection is made to the placing of a sign on
south Monterey street on property owned by IVrrs.I\i1arie 1Sinkler.
The matter of the color of the new fire truck is discussed and 'it
is unanimously decided to turn this matter over to the chairman of
tre :Fire Com.mi ttee for decision.
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Motion by Councilman Heiner,seconded by Councilman 3attersby and
carried that the salary 0 f the Janitor be increased 4~10. 00 per month,
effective Yebrliary 1,1940,ani t hat he take care of the janitor work
in the Chamber of Commerce office.
IiI0tion by Councilman Eeiner,seconded by Councilman Rogers and
carried that the chairman of the r:ater Committee purchase a Sterling
vertical pump,?} R.P.motor,from Lee L.IJathison for ~205.25,all in
accordance with his bid submitted January 15,1940.
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~ot10n by Councilman Milias,seconded by Councilman Rogers and
carried that $100.00 be transferred from the General ]und to the
Library Fund.
RESOLUTION No.121 is presented and read.
Motion by Councilman Eeiner,seconded by Councilman Mason that
RESOLUTION NO.12l be adopted.
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01f~"E-S- 0'1. U-1Vt 0 N
N 0 121
WHERE.l1S, the Common Council of the City of Gilroy by Reso-
lution No. 119 authorized the issuance and sale of ~31,000 principal
amount of City of Gilroy Municipal Auditorium Bonds of 1940 and
directed the City Clerk of sa:ld City to countersign and affix the
official seal of' said City to said bonds pursuant to the require-
menta of law; and
WHEREAS, said F. A. COX, City Clerk, has stated, represented
and declared th~:'.t he will not sign Or' countersign any of 38..1d:)ond8
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or exeCUl;e the sa",e, alls [::i,nE; tha t saiu bonds cannot be is sued or
801d for the purpose for which the s'::me Vlere le~ally authorized to
be issued; and
'f:IIElmAS, this City he,s no plain, speedy or adequate remedy to
compel said City lilerk to perform the official 0.i'.ties enjoined
upon him by law, save by the intervention of a Court of competent
jurisdiction of the State of California;
NOW, THEREFOrE, BE lir HBSOI VBD by the ConmlOn COti...YJ.cil 01' the
City of Gilroy as folloTIs:
'lihat James S. 0;:l"crS, City AttOI'ney for the City of Gilroy,
is hereby authorized 2.nc dir'ctted to inst:l.tute t-l proceeding in
mandate in any C01J.rt of competent jurj,sdiction in the St~':'.te of C8l j,-
\ fornia, to compel P. A. Cox, as City Clsrk of the City of Gilroy,
to s i(;n, count ers :;C~n E'.nd e::ecu'~ 8,31,000 principal arlount of City
of Gilro.I I,:unicipal At:.6i tOr'iun Eonds of 19i':(), an to take ~;UGn
action as in the judgment of s~:d City Attorney is necessary or
advisable to provide for the execution, authentication ~nd delivery
of S8.:'O bonds.
ADCF''l'Ji;:G ALG PASSED th:1~s 13th day oj' Feb!,u~!,y__._. 11., Hi/cO
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the followin vote:
Il'~'\~J3~ S :
Councilmen: George :c..Milias,Jr. ,Jack Hogers,James
Battersby,George M.MasonolNat Heiner.
NOi:: : Councilmen: hone
A~'L"E! t: Counc:Ll 6n: George i1..LIartin.
Appro\ed:
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At':~~est:
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Adjourned subject to the call
of the chair'.
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City 81erk
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