Resolution 71
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RESOLUTION NO. 7 I
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PROVIDING FOR THE ISSUANCE OF $31,000 PRI~WIPAL AMOUNT OF
"CITY OF GILROY lVIU1\lICIPAL AUDITORIUM BONDS OF 1936"; PRE-
SCRIBING THE DATE AND li':JRliI OF' SAID BONDS AND OF TEE COUPONS
TO BE ATTACHED THEHETO; FIXING THE IIIAXIMUM RATE OF IN'[iEREST
ON SAID BONDS, AND PEESCHIBING THE MAil'URI'rIES THEREOF; AUTHOR-
IZING THE EXECUTION OF SAID BONDS AND COUPONS, AND PROVIDING
FOR THE LEVY OF A TAX TO PAY TEE ?RINCIPAL AND INTEHJ~ST THERE-
OF; AND DIRECTING NOTICE OF SALE OF SAID BONDS TO BE GIVEN.
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vVHEREAS, all the requirements of law have been complied
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, constl~cting 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
Com~on 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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~, THEn3FORE, BE IT RESOLVED by the Common 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 j
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 vmich
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 a t 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
Sta te 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 0 f the Treasurer of
said City.
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, ar~ 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 ovmer.
IN WITNESS 1NIIEREOF, said City of Gilroy has caused
this bond to be executed uncer its corporate seal, signed
by its Mayor and its Treasurer, and countersig~(led by its
Clerk, and has caused the interest coupons hereto attached
to be signed by its Treasurer, 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 .~
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Sectio~. The W~yor 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 City, and the City Clerk is hereby authorized and
directed to court 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.
Secti-:)n 20 For the purpos e of paying the principal and
interest of said bonds the Common Council of said City of Gilroy
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shall, at the time of fixing the gener~l 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 cominf; due for princ1pal and interost on said bonds,
a tax sufficient to pay the annual inters st 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 th e 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 wh:Lch the same was levied and collected.
Such fund shall be designated "1936 Municipal Auditorium Bond Fund,1l
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 knovm 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
~ll1ds~ and shall be applied exclusively to the acquisition, con-
struction and completion of the aforesaid municipal improvement.
Section 1. 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 .,
spaces thereof to be filled in to comply with the provisions hereof,.J
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 hel'eby dir ected 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 ~IDNICIPAL AUDITORIUM BONDS OF 1 9 3 6
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NOTICE IS tillREBY 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 O'clock, P .lvI.,
of Jilqnday ., the 16th. _ day of November-
1936 , for the purcha~Je of $31,000 principal amount of City
of Gi~roy 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 interc;st rate stated in the bid
must be in a multiple of one-quarter of one per cent. per
annum, payable semiaru1ually, and the interost rate shall not
exceed four (4) per cent. per annum, payable semiannually on
May 1st and November 1st of each year. Said bonds mature arid
are payable in consecutlve 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 !uditorium 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 Francis co, Cali fornia, approving the validity 0 f said
bonda will be furnished to the successful bidder ~~thout
charge, together ~~th 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
audi toriurn, assembly and convention hall, a,ll as set forth in
the proposition as submitted at said election.
The City of Gilroy was incorporated March 12th 1870 .
The population (Census of 1930) was 3502 ; the present
conservative estinmteis 3800 . The assessed valuation
of all taxable property in said City ls $ 2.916,042
and the total bonded indebtedness (not including this issue) is
$ 171,900.00 . The tax collection record of said City is
as follows:
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Total amount Amount of City Amount of all
of City taxes taxes uncollected City taxes un-
Fiscal levied for each at the end of collected as of
Year fiscal year each fiscal year July 1, 1936 j
1931-32 $ 36, 068. 18 $ 807. 40, $ 445. 35
1932-33 $ 30, 799. 52 $ 988. 25 $ 607. 05
1933-34 $ 28, 674. 08 $ 1162. 47 $ 447. 64
1934-35 $ 28, 005. 48 $ 903. 12 $ 545. 13
1935-36 $ 29, 286. 27 $ 672. 09 $ 672. 09
Further lnformation re la t i v e to the financia 1 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 issuel 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. rnis 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; Counc ilman George C. :~ilias Jr, Ben stewart,
George M. Mason, Harry L. Yiill~inson, Not Heiner.
Noes:
Councilman None
Absent: Councilman J. H. Rush.
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