Resolution 1402
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RESOLUTION NO. 1402
PROVIDING FOR THE ISSUANCE OF $350,000 PRINCIPAL AMOUNT
OF CITY OF GILROY GENERAL OBLIGATION BONDS OF 1969, FIRST
DIVISION, BEING PART OF AN ISSUE OF $950,000 AUTHORIZED
AT AN ELECTION HELD IN SAID CITY ON APRIL 8, 1969; PRE-
SCRIBING THE DATE, DENOMINATION, FORM AND NUMBERS AND
DATES AND AMOUNTS OF THE MATURITY OF THE BONDS AND COUPONS
OF THE FIRST DIVISION OF SAID AUTHORIZED ISSUE; FIXING
THE MAXIMUM RATE OF INTEREST THEY SHALL BEAR, AND PROVI-
DING FOR THE LEVY OF A TAX TO PAY THE PRINCIPAL AND INTER-
EST THEREOF
CITY OF GILROY
GENERAL OBLIGATION BONDS OF 1969
FIRST DIVISION
RESOLVED, by the City Council of the City of Gilroy, Cali-
fornia, that
WHEREAS, the City Council of the City of Gilroy did, on
January 20, 1969, adopt its Resolution No. 1309, wherein it did
determine that the public interest and necessity demand the acquisi-
tion, construction and completion of the following municipal im-
provements, to wit:
a) The acquisition of real property and the con-
struction and completion thereon of a library building,
including land and rights in land, site clearing and
development, building, parking facilities, landscaping,
furniture, furnishings, equipment, facilities and appurten-
ances, and all things auxiliary thereto and necessary to
complete the same.
b) Making certain additions and improvements to
the City's Northside Park encompassing the construction
and completion of park facilities for community use, in-
eluding structures and equipment and incidental works and
structures necessary or convenient to the maintenance and
operation of a park.
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c) The acquisition of real property and the con-
struction and completion thereon of a headquarters fire
station; the completion of grading, paving and site pre-
paration of such real property; the purchase of furniture
and equipment to furnish said headquarters fire station;
and the purchase of fire apparatus and its equipment;
and the acquiring of all lands, easements, facilities
and appurtenances and the completion of all incidental
work necessary therefor.
WHEREAS, the City Council of the City of Gilroy on February 3,
1969,did.adopt its Ordinance No. 843, wherein it did call a special
municipal election to be held in said City on April 8, 1969, for
the purpose of submitting to the qualified voters of said City the
propositions stated therein, of incurring bonded indebtedness in the
principal amount of $600,000 for the object and purpose stated in
paragraph (a) above, $150,000 for the object and purpose stated in
paragraph (b) above, and $200,000 for the object and purpose stated
in paragraph (c) above; and
WHEREAS, in said Ordinance it is further provided that the
amount of indebtedness proposed to be incurred for the improvement
mentioned in each of said propositions is the amount therein stated,
which improvement is to be made for the object and purpose stated
therein; and
WHEREAS, all of the requirements of law have been complied
with in calling and holding the special municipal election held in
the City of Gilroy on April 8, 1969, at which election each of the
propositions for the incurring of such bonded indebtedness was
submitted to the voters of the City; the votes cast for and against
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each proposition were counted separately; the City Council of said
City did duly and regularly canvass the returns of said election,
and did as a result of such canvass determine and declare, and
does hereby certify, that Propositions No.1 (Library), No.2
(Park Improvement) and No. 3 (Headquarters Fire Station) each re-
ceived at said special municipal election the affirmative vote of
more than two-thirds of all of the voters voting at the election
on each such proposition and that the aforementioned propositions,
and each of them, were thereby duly carried and adopted, and the
issuance of bonds in the sums and for the purposes specified in
said propositions was duly authorized.
NOW, THEREFORE, IT IS RESOLVED, DETERMINED and ORDERED,
as follows:
1. All acts, conditions and things required by law to
exist, happen and be performed precedent to and in the issuance
of bonds have existed, happened and been performed in due time,
form and manner as required by law, and the City of Gilroy is now
authorized pursuant to each and every requirement of law to incur
an indebtedness in the manner and form as in this Resolution pro-
vided.
2. The principal amount of the bonds authorized at
said election is hereby divided into two or more series. Bonds
of the City of Gilroy in the aggregate principal amount of Three
Hundred Fifty Thousand Dollars ($350,000) to be known as "City of
Gilroy General Obligation Bonds of 1969 - First Division", shall be
issued to pay the cost of the acquisition, construction and com-
pletion of the municipal improvements of said City set forth in
the following propositions, to wit:
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PROPOSITION NO.1: "Shall the City of Gilroy incur
a bonded indebtedness in the
(Library) principal amount of $600,000 in
accordance with the provisions
of the Ordinance calling the election at which this proposition
is submitted, for the object and purpose of the acquisition of
real property and the construction and completion thereon of
a library building, including land and rights in land, site
clearing and development, building, parking facilities, land-
scaping, furniture, furnishings, equipment, facilities and
appurtenances, and all things auxiliary thereto and neces-
sary to complete the same?"
PROPOSITION NO.2: "Shall the City of Gilroy incur
a bonded indebtedness in the
(Park Improvement) principal amount of $150,000 in
accordance with the provisions
of the Ordinance calling the election at which this propo-
sition is submitted for the object and purpose of making
certain additions and improvements to the City's Northside
Park encompassing the construction and completion of park
facilities for community use, including structures and equip-
ment and incidental works and structures necessary or con-
venient to the maintenance and operation of a park?"
IIShall the City of Gilroy incur
a bonded indebtedness in the
principal amount of $200,000 in
accordance with the provisions
of the Ordinance calling the
election at which this proposition is submitted for the ob-
ject and purpose of the ac~uisition of real property and the
construction and completion thereon of a headquarters fire
station; the completion of grading, paving and site pre-
paration of such real property; the purchase of furniture
and equipment to furnish said headquarters fire station;
and the purchase of fire apparatus and its equipment; and
the acquiring of all lands, easements, facilities and ap-
purtenances and the completion of all incidental work neces-
sary therefor?1I
(Headquarters Fire
Station)
PROPOSITION NO.3:
3. Jurisdiction is hereby reserved in the City Council of
the City of Gilroy to issue at any time, the remaining Six Hundred
Thousand Dollars ($600,000) principal amount of said authorized
issue to pay any additional cost of the acquisition, construction
and completion of the municipal improvements set forth in the above
quoted propositions, which principal amount may be divided into one
or more series, as the Council of said City shall determine; pro-
vided, however, that none of said remaining bonds shall be sold
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within sixty (60) days after the date of sale of the First Division.
4. That said Three Hundred Fifty Thousand Dollars ($350,000)
principal amount of bonds of the First Division shall be issued as
hereinafter set forth and shall be sold in accordance with law at
not less than their par value and accrued interest. The bonds of
said First Division of said authorized issue shall be negotiable in
form and of the character known as IISerialll, shall be seventy (70)
in number, numbered consecutively from 1 to 70, both inclusive, of
the denomination of $5,000 each, and shall be dated December 15,
1969.
5. All of said bonds of said First Division shall bear
interest from their date until paid at the rate or rates designated
by the Council of the City of Gilroy at the time of the sale of
said bonds of the First Division, but not to exceed six percent (6%)
per annum, payable semiannually, except that interest for the first
year after the date of the bonds shall be payable at the end of said
year. 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, except the first coupon on
each bond which shall represent one year's interest on the bond to
which it is attached. Said interest coupons shall be payable on
the fifteenth day of June and the fifteenth day of December in each
year until and at the respective dates of maturity of said bonds,
the first coupon on each bond representing interest from December 15,
1969 to December 15, 1970. Interest rates for different maturities
may be in varying multiples of any fraction or combination of
fractions of 1%.
If, upon presentation at maturity, payment of any bond or
any interest coupon thereof, or both, is not made in full accordance
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with the terms of this Resolution providing for the issuance
thereof, said bonds or coupons, or both, shall continue to bear
interest at the rate stated therein until paid in full.
6. Said bonds of the First Division shall be numbered
and be payable in consecutive numerical order, from lower to higher,
on December 15 in each of the years, and mature in the total amounts
per year, as set forth in Exhibit "A" attached hereto and by refer-
ence incorporated herein.
7. Both the principal of and interest on said bonds
shall be payable in lawful money of the United States of America
at the main office of Bank of America National Trust and Savings
Association, San Francisco, California, the Paying Agent of the
City, or at any other bank or trust company designated by said
Paying Agent as a co-paying agent in the Cities of New York, New
York, and/or Chicago, Illinois.
8. Said bonds and coupons of the First Division shall
each be substantially in the form, the blanks therein to be filled
with appropriate words and figures, as set forth in Exhibit "B"
attached hereto and by reference incorporated herein.
9. The bonds may be registered in the manner provided
by law.
10. The Mayor and the Director of Finance, or one or
more of his duly authorized deputies, are hereby authorized and
directed, respectively, as such officers, to execute each of said
bonds on behalf of the City, and the City Clerk, or one or more
of her duly authorized deputies, is hereby authorized and directed
to countersign each of said bonds and to affix the official seal
of the City thereto. All of the signatures and countersignatures,
except that of the City Clerk or her deputy, and the official
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seal of the City may be printed, engraved, lithographed, stamped
or otherwise placed in facsimile upon said bonds. Said Director
of Finance, or one or more of his duly authorized deputies, is
hereby authorized and directed to sign each of the interest coupons
by his printed, lithographed or engraved facsimile signature. Such
signing, countersigning and sealing as herein provided shall be a
sufficient and binding execution of said bonds and coupons of said
City. If any officer whose signature or countersignature appears
on the bonds or coupons ceases to be such officer before delivery
of the bonds, his signature is as effective as if he had remained
in office.
11. At the time of making the general tax levy after in-
curring the bonded indebtedness, and annually thereafter, until the
bonds are paid or until there is a sum in the treasury set apart
for that purpose sufficient to meet all payments of principal and
interest on the bonds as they become due, the City Council shall
levy and collect a tax sufficient to pay the interest on the bonds
and such part of the principal as shall become due before the pro-
ceeds of a tax levied at the time for making the next general tax
levy shall be available. If the earliest maturity of the bonds is
more than one year after the date of issuance, the City Council
shall levy and collect annually a tax sufficient to pay the inter-
est as it falls due and to constitute a sinking fund for payment
of the principal on or before maturity. Said taxes shall be levied
,and collected as other City taxes, and in addition to all other
taxes. The moneys derived from said taxes shall be used only for
the payment of the bonds and the interest. Said tax moneys, as
collected, shall be forthwith paid into the fund for which the
same were levied and collected and which shall be designated
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. .
"City of Gilroy General Obligation Bonds of 1969 Bond Fund" or
other designation sufficient to identify it and all sums to become
due for the principal of and interest on said bonds shall be paid
from such fund. There shall likewise be deposited in said fund
all premiums and any money received on account of interest accrued
on said bonds from their date to the date of delivery and actual
payment of the purchase price thereof.
12. There is hereby created and established a fund to be
known as the "City of Gilroy General Obligation Bonds of 1969
Construction Fund" or other designation sufficient to identify it,
which shall be kept by the Director of Finance of said City and
who shall also see that the proceeds of the sale of any of said
bonds of said authorized issue (except any premium and accrued
interest to the date of delivery) shall be placed by the Director
of Finance to the credit of such fund and shall be kept separate
and distinct from all other municipal funds and shall be applied
to the acquisition, construction and completion of said municipal
improvements in amounts up to, but which shall, in no event, ex-
ceed for any improvement the amounts as set forth in each of the
propositions authorized at the special municipal election held on
April 8, 1969.
For the purpose of accounting for the expenditure of the
moneys of said fund, the Director of Finance of said City shall
create, and the Auditor of said City shall audit, the following
special accounts to the end that all expenses and expenditures
in connection with said fund shall be charged against the res-
pective accounts hereinafter set forth and that there shall be
expended no more than the maximum amount specified for each of
said accounts as follows, to wit:
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City of Gilroy
General Obligation Bonds of 1969
Construction Fund
Maximum Expenditures
Library (Proposition No.1)
Park Improvement (Proposition No.2)
Headquarters Fire Station (Propo-
sition No.3)
$
600,000
150,000
200,000
The proceeds from the sale of the First Division, ag-
gregating Three Hundred Fifty Thousand Dollars ($350,000) in
principal amount shall be deposited in said fund and credited
to the special accounts as follows:
(a)
Park Improvement
(Proposition No.2)
$
150,000
A record shall be kept of the disbursements made
from such account and such disbursements shall be
made solely to the objects and purposes contained in
Proposition No. 2 as set forth in Paragraph 2 above,
and as approved by the voters.
(b)
Headquarters Fire Station
(Proposition No.3) $
200,000
A record shall be kept of the disbursements made
from such account and such disbursements shall be made
solely to the objects and purposes contained in Pro-
position No. 3 as set forth in Paragraph 2 above, and
as approved by the voters.
13. The City Clerk is directed to cause a sufficient
number of blank bonds and coupons of suitable quality to be litho-
graphed, printed or engraved and to cause the blank spaces thereon
to be filled in to comply with the provisions hereof, and to pro-
cure their execution by the proper officers, and to deliver them
when so executed to the Director of Finance of said City who
shall safely keep the same until they have been sold by the said
Council, whereupon he shall deliver them to the purchasers thereof
on receipt of the purchase price.
14. Said Mayor and said Director of Finance and City
Clerk, or one or more of their duly authorized deputies, are
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further authorized and directed to make, execute and deliver to the
purchaser of said bonds, a signature and no-litigation certificate
in the form usually required by purchasers of municipal bonds gener-
ally certifying to the genuineness and due execution of said bonds,
and further certifying to all facts that in their knowledge, re-
lative to any litigation, mayor might affect said City and said
officers or said bonds, and said Director of Finance is further
authorized and directed to make, execute and deliver to the purchaser
of said bonds a receipt from the Director of Finance in the form
usually required by purchasers of municipal bonds evidencing the
payment of the purchase price of said bonds, which receipt shall
be conclusive evidence that said purchase price has been paid and
has been received by said City.
15. Any purchaser or subsequent taker or holder of said
bonds is hereby authorized to rely upon and shall be justified in
relying upon any such signature and no-litigation certificate and
receipt with respect to said bonds executed pursuant to the
authority of this Resolution.
ATTEs'r:
~~?~
. City Clerk ~
(SEAL)
* * * * * * *
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I hereby certify that the foregoing is a full, true and
correct copy of a resolution duly passed and adopted by the City
Council of the City of Gilroy, California, at a meet1ng thereof
held on the
20th
day of
October
, 19 69
,
by the following vote of the members thereof:
AYES, and in favor thereof, Councilmembers: Batrez, Duffin, Kennedy,
Pate, Silva, Wentworth, and Goodrich.
N DES,
Counc1lmembers:
None
ABSENT, Councilmembers: None
APPROVED:
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EXHIBIT "A"
Total Amount Year of
Bond Numbers Per Year Maturity
1 ~ 5 $ 25,000 1970
6 ~ 10 25,000 1971
11 ~ 16 30,000 1972
17 - 22 30,000 1973
23 - 29 35,000 1974
30 - 36 35,000 1975
37 - 44 40,000 1976
45 - 52 40,000 1977
53 - 61 45,000 1978
62 - 70 45,000 1979
EXHIBIT "B"
UNITED STATES OF AMERICA
STATE OF CALIFORNIA
COUNTY OF SANTA CLARA
CITY OF GILROY
GENERAL OBLIGATION BOND OF 1969
FIRST DIVISION
$5000.
No.
The CITY OF GILROY, a municipal corporation, organized 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 regis-
tered owner hereof) on the 15th day of December, 19 , FIVE
THOUSAND DOLLARS ($5,000), together with interest thereon at the
rate of . percent ( %) per annum until
payment of said principal sum in full, said interest to be payable
on December 15, 1970, and thereafter payable semiannually on the
15th day of June and the 15th day of December of each year, repres-
ented by coupons attached hereto at the time of issuance. Unless
this bond is registered, such interest, prior to maturity, 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 of America at the main office of Bank of
America National Trust and Savings Association, San Francisco,
California, the Paying Agent of the City, or at the offices of the
co-paying agents in New York, New York, and/or Chicago, Illinois.
If, upon presentation at maturity, payment of this bond or
any interest coupon hereof, or both, is not made in full accordance
with the terms of the Resolution providing for the issuance hereof,
said bond or coupon, or both, shall continue to bear interest at
the rate stated herein until paid in full.
This bond is one of the First Division, aggregating Three
Hundred Fifty Thousand Dollars ($350,000) in principal amount, of
a duly authorized issue of bonds of said City aggregating Nine
Hundred Fifty Thousand Dollars ($950,000) in principal amount, all
of like tenor (except for such variations as may be required to
designate varying divisions, principal amounts, denominations,
dates, maturity dates, and interest rates), and is issued under
and pursuant to the 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.
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;!'
,.
It is hereby certified, recited, and declared that all
acts, conditions and things required by law to exist, happen and
a_.._
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 exceed any limit pre-
scribed by the Constitution or statutes of said State, and that
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 the. City are hereby pledged for
the punctual payment of the principal and interest of this bond.
IN WITNESS WHEREOF, the City of Gilroy has caused this bond
to be executed under its official seal, signed by its Mayor and its
Director of Finance and countersigned by its Clerk, and has caused
the interest coupons hereto attached to be signed by its Director
of Finance and this bond to be dated the 15th day of December, 1969.
Mayor of the City of Gilroy
Director of Finance of the City of
Gilroy
Countersigned:
City Clerk of the City of Gilroy
, 19_
City of Gilroy, California
General Obligation Bond of 1969
First Division
Dated December 15, 1969
On
$
Coupon No.
Bond No.
The sum shown hereon, being interest then due, is payable to bearer
(unless the bond be registered) at the main office of Bank of America
National Trust and Savings Association, San Francisco, California,
the Paying Agent of the City, or at the offices of the co-paying
agents in New York, New York and/or Chicago, Illinois, in lawful
money of the United States of America.
Director of Finance of the City of
Gilroy
REGISTRATION
This bond is registered pursuant to the statute in such cases
made and provided in the name of the registered owner last entered
below and the interest and principal thereof are hereafter payable to
such owner.
DATE OF
REGISTRATION
NAME OF
REGISTERED OWNER
SIGNATURE OF DIRECTOR
OF FINANCE OR REGISTRAR
EXHIBIT "B"
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