Minutes 1934/05/15
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Gilroy, Calif., May l5th, 1934.
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The regular adjourned meeting of the Common Council pf ~~y 8th,
1934 was called to order by His Honor Mayor Elmer J. Chesbro.
Present Councilmen J. H. Rush, George Easton, S. D. Heck, Fred C.
Boock, George C. Milias, J'r.; Absent Councilman George A. 'Iientz.
The Street Committee is hereby requested to go up to Walter
Ruperts and inspect the parking situation and report back.
_t was ordered that the ballots cast by Absentee voters be
opened.
~otion by Boock seconded by Milias and carried that the Resolu-
tion relative to the vote cast for Municipa~ officers be
adopted as follows:-
~nereas, the Mayor and cornnon Council of the City of Gilroy has
canvassed the vote cast at the 1mnicipal election held on Mon-
day, May 7th, 1934,
Now Therefore as a result of such canvass the Mayor and Common
Councilfind the number of votes cast for the various candidates
to be as follows:-
For MAYOR
Elmer J. Chesbro,
E. R. Chesbro,
Chas. Fredrickson,
Mrs. Pink House,
O. J. Opperman,
Chas. Freerickson,
Spofford,
Richard Brem,
Jas. Battersby,
Joe Steinmetz,
784
1
4
8
1
1
1
1
1
1.
I,'or COUNCILMAN,
Fred C. Boock,
S. D. Heck,
George C. Milias,
J. H. Rush,
Ben Stewart,
Geo. A. iilentz,
Chas. Fredrickson,
Geo. Henz,
George Martin,
Albert Carrey,
Herber~ Sutton,
M. Raphael,
Lloyd Smith,
Jr.
676
749
701
727
740
729
297
2
1
1
1
1
1
For TREASURER,
P. R. Colson,
For CLERK,
Philip Cox,
E. F. Rogers,
For MARSHAL,
George Easton,
Walter S. White,
830
,
374
650
465
540
And the Mayor and Common Council find that the following per-
y
sons have been duly elected to the resgective
Mayor, Elmer J. Chebro,
Councilmen Fred C. Boock, S. D. Heck,
J. H. Rush, Ben. Stewart, George A. Dentz
Treasurer, P. H. Colson, ~ity Clerk" E.
Marshal, ~ialter S. Vlhite.
officers as follows:
George C. Milias, Jr.,
y
F. Rogers,
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and that Certificates of election be issued to such officers.
Thereupon C:ouncilman :F'red C. Boock introduced Reso-
lution no. 38 hereto ettached and made a prt of these minutes
at length and moved its adoption, such motion was duly second-
ed by (;ouncilman George C. Milias, .Jr.
RES Q 1. U 1. 1. Q! N Q. 38
DECLARING THE RESULTS OF THE SPECIAL ELECTION HELD IN THE CITY OF
GILROY, COUNTY OF SANTA CLJ.RA, STA~~ OF CllLIFORNIA, ON MAY 7TH, 1934,
UP01J THE Q,UESTION OF INCURRING THE BONDED INDEBTEDNESS OF SAID CITY
FOR THE OBJECT AND PURPOSE HEREINAFTER E}mMER~TED.
WHEREAS, on the 2nd day of April, 1934, the Common Council
of the City of Gilroy, County of Santa Clara, State of California. by
ordinance duly passed and published, did call a special election to be
held in said city on the 7th day of May, 1934, for the purpose of
submitting to the qualified voters of said city the proposition: .Shall
the City of Gilroy incur a bonded indebtedness of $29,000000 for the
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acquisition. construotion and completion of a main cast iron pipe line
to replace the present main steel pipe line conveying water to the City
of Gilroy."
VffiEREAS, due and legal notice of said special election was
given as required by law and by said ordinance; and
WHEREAS, on the 7th day of May, 1934, at the hour of six
o'clock in the morning of said day, the polls were duly and regularly
opened for said special election in said city, and said polls were
continuously kept open for said purpose from the time they were so opened
until seven o'clock in the afternoon of said day, and during said hours
of said 7th day of May, 1934, a special election was held in said City
of Gilroy, on said proposition, and in accordance with said ordinance; ani
WHEREAS. iIl1Jlediately theTeafter, said special election was
regularly and duly canvassed by the duly constituted officers, by
law appointed for that purpose, and the result of said eleotion was
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thereafter made and delivered to the Common Council of said city, as
by law and by said ordinanoe ~equired; and
WHEREAS, thereafter, to-wit: on the l5th day of May, 1~34,
at the hour of 8:30 o'olock in the evening of said day, the said Common
Council did, at the place required by law and by said ordinance, duly
convene and proceed to and did canvass said returns of said special
election so held as aforesaid, and did thereupon declare the result of
said special election as follows, to-wit:
That the number of votes given and cast at said special
election was 852.
That the total number of votes given and cast at said
special election upon said proposition was 825 votes, of whioh total
number of votes so given and cast, there were given and cast ?l3 votes
in favor of said proposition and ll2 votes against said proposition; and
vVHER~~S, in order to authorize the incurring of indebt-
edness and the issuance of bonds therefor upon any proposition submitted
at any special election called and held for that purpose there TIillst be
given and cast for and in favor of said proposition so submitted and
voted upon, the votes of at least two-thirds of all the voters voting at
Eaid special election;
NO-.V, TH:C::LFORL, BE IT RESOLVED, and it is hereby resolved:
(l) That a special election was duly and regularly called
and held in all things according to ordiu2nce of said City of Gilroy,
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duly adopted for the objeots and purposes therein specified, and
acoording to the laws of the state of California.
(2) That the total votes given and oast at said special
eleotion were duly and regularly canvassed and found to be 852 votes;
(3) That the total number of votes given and cast at
said special election upon said proposition for the objects and
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therein stated, was 825 votes, of which total number of votes so~ivan
and cast there were given and cast ?l3 votes in favor of-~aid proposition,
and 112 vot~s ~gainst said proposition, and that said proposition has
received the requisite two-thirds votes of all votes given and cast at
said special election, and the issuance of bonds of said city for said
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proposition, for the objects and purposes therein stated, is authorized
by said election.
NOW, THEREFORE, BE IT YJRTIIER RESOLVED, that bonds of the
City of Gilroy in the sum of Twenty-nine Thousand Dollars shall be issued
for said proposition, being for the aCQuisition, construction and
completion of a main cast iron pipe line to replaoe the present main
steel pipe line conveying water to the City of Gilroy.
The above and foregoing resolution was duly passed by the Common
Council of the City of Gilroy at a regular adjourned meeting held on the
l5th day of May, 1934, by the following vote:
~- AYES: George Easton, George Milias, ~r., Fred C. Boock, S. D. Heck,
~. H. Rush
....
NOSS: None
ABSENT: George Wentz
ATTEST:
APPROV'iD: ~
1AYOR
Upon motion by Councilman Lreorge Easton, seconded by
Councilman :Fred Boock That Resolution No. 39approving a certe.in
Loan and Grant agreement be passed and adopted as follows:
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CITY OF GILROY
RES 0 L UTI 0 N N O.
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A RESOLUTION ADOPTING AND APPROVING A PROPOSED CERTAIN LOAN AND
GRANT AGREEMENT BETWEEN THE SAID CITY OF GILROY AND THE UNITED
STATES OF AMERICA, BY THE FEDERAL EMERGENCY ADMINISTRATOR OF PUB-
LIC WORKS, A COMPLETE AND ACCURATE COPY THEREOF BEING SET OUT IN
THE BODY OF THIS RESOLUTION AND MADE A PART HEREOF.
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THE COMMON COUNCIL OF THE CITY OF GILROY DO RESOLVE AS FOLLOWS:
WHEREAS, the City of Gilroy, by and through its Common Council,
said Common Council being the legislative and governing body of said
City of Gilroy, desire to approve and adopt a certain proposed loan
and grant agreement so offered to it by the said United States of
America, the same being set forth at length herein.
THEREFORE, the Common Council of the City of Gilroy, being the
legislative and governing body of said municipality, do hereby
adopt and approve the proposed loan and grant agreement, a copy
thereof being set forth at length herein, which is as fOllows, to-
wit:
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LOAlf AGREilllENT dated as of
, 1s;l3_
between CITY OF GILROY, C:mNTY OF SANTA CLARA,
CALIFORNIA, (herein oalled the "Borrower"), and the
UNITED STATE:S OF l~IERICA (herein called the
"Government") .
PART QNE
GENERAL PROVISIONS
1. Amount of ~ ~ Grant, Purchase Price and ~]rpnsA. Subject
to the ter~ and conditions of this Agreement, the Borrower will sell and the
Government will purchase $29,000 aggregate principal amount of the bonds, (heretn
called the "Bonds"), of the Borrower, at lOO per centum of the principal amount
thereof, plus accrued interest, and, in addition to the amount of Bonds to be
purchased, the Government will make a grant, (herein called the "Grant"), to the
Borrower of not to exceed 30 per centum of the cost of the labor and materials
employed upon the Project as herein described, but such Grant together with the
aggregate principal amount of the Bonds purchased, and any other funds, (herein
called "Other Funds"), received directly or indirectly from the Government or any
agency or instrumentality thereof to be used to aid in financing the construction
of the Projec~, shall not exceed in aggregate amount the total cost of the Projec~
and in no event shall such aggregate amount exceed $37,000, (except for such pay-
ment, if any, as nay be made under the provisions of Paragraph ll, PART TWO, here""
ot,~, the proceeds derived from the sale of the Bonds and the amount paid on
account of the Grant, (except for such payment, if any, as may be made under the
provisions of Paragraph ll, PART TWO, hereof), to be used for the replacement by
the Borrower of existing steel pipe water supply main with cast iron pipe, (here-
in called the "Project"), and for other and incidental purposes; all pursuant to
the Borrower's applioation, (herein called the "Application"), P. W. A. Docket
No. 3082, the proceedings authorizing the issuance of the Bonds, Title II of the
National Industrial Recovery Act, (herein called the "Act"), approved June le,
1933, the Constitution and Statutes of the State of California, and the Charter
of the Borrower, including particularly:
,
Charter of the City of Gilroy, Sections 9, lO, l3, and l8.
General Laws (Deering'S, 1931) Act 6424.
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Ci ty of Gilroy, County of Snnta Clara, California
2. Description of Bonds.
(a) Designation.
'IV A TER :MA IN R EPLA C.cllEtIT' B O!m.
(b) Pri~cipal Amount. $29,000.
(c) ~. Negotiable, general obliagtion, serial, coupon Bond.
(d) Re~istration. Registerable at the option of the holder as to
principal and interest.
(e) ~. July 1, 1934
(f) Interest. 4 per cent per annum, payable on January 1, 1930,
and semi-an:mally thereafter on July first and January first
of eaoh year.
(g) Maturities. July first, of eaoh year, as follows:-
Year Amount Year Amount
1935 $l,OOO. 1945 $l,OOO-
1956 1,000. .1.946 2,000
li3'l 1,000. lQ4? 2,000
1938 l,OOO. 1948 2,000
1939 1,000. 1949 2,000
1940 1,000. 1950 2,000
lilL..l 1,000. 1951 2,000
1942 1,COO. lSl52 2,000
19~3 l,OOO. 1953 2,000
1944 l,OOO. 1954 2,000
(h) Security.
General obligations of the Borrower, payable as to both prinoipal
and interest from ad valorem taxes which may be levied without
limit as to rate or amount upon all the taxable property within
the territorial limits of the Borrower.
(i) Place ~ Medium Qt Eayment.
At the offioe of the Treasurer of the Borrower, in the City of
Gilroy, California, in such funds as are, on the respective dates
of payment ef the principal of and interest on the Bonds, legal
tender for debts due the United states of lDnerica.
(j) Denomination. $l,OOO.
3. Form, Text, ~Sample Q!~. The Bonds shall be in form and text
satisfactory to the Legal Division of the Federal Emergency Administration of
Public Works, (herein called "Counsel for the Government"). Before the Bonds are
prepared, the Borrower shall submit a sample or specimen bond (with ooupons) for
approval by Counsel for the GdVernment.
4. Method Q! Taking ~CBonds. The Bonds shall be taken up and paid for
in blocks from time to time as funds are needed for the Project, or the entire
issue may be taken up and paid for by the Government at one time, in the discretirn
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City of Gilroy, County of Santa Clara, California
of the Finance Division of the Federal Emergency Administration of Public Works,
(herein called the "Finance Division").
5. Amount 2!. Bonds to !2.!LTaken!Il2.. The Government shall be under no
obligation to take up and pay for Bonds beyond the amount which, together with
Other Funds, and the amount to be paid to the Borrower on account of the Grant
as provided in this Agreement, shall be necessary, in the judgment of the En-
gineering Division of the Federal Emergency Administration of Public Works (here-
in called the "Engineering Division"), to complete the Project. In case any of
the Bonds are sold to purchasers other than the Government, the principal amount
of Bonds which the Government is obliged to take up and pay for shall be corres-
pondingly reduced.
'6. Deposit of ~ Proceeds ~ GT'ant; Retirement!\!llA. The Bor-
rower will pay all aocrued interest which it receives from the sale of the
Bonds at the time of the payment therefor (and any pay~nent which may be made on
account of the Grant under the provisions of Paragraph ll, PART TWO, hereof), in~
an intereEt and bond retirement fund account. It will deposit the remaining pro-
ceeds from the sale of the Bonds and any payments made on account of the Grant
under the provisions of Paragraph 8 and Paragraph lO, PART TWO, hereof, in a baak
or banks which are members of the Federal Reserve System, in a special account or
accounts, each of such special accounts to be continuously secured by a pledge to
the Borrower of direct obligations of the United States of America having an
aggregate market value, e2clusive of accrued interest, at all times at least
equal to the balance on deposit in eaoh such account. SUch securities will be
deposited with the Borrower. Provided, however, that at the option of the Fblance
Division such special account or accounts may be secured by a surety bond, or
,
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City of Gilroy, County of Santa Clara, California
bonds which shall be in form, sufficiency and substance satisfactory to Counsel
for the Government. Any balance or balanoes remaining unexpended in such special
account or accounts after the completion of the Project and which are not re-
quired to meet unpaid obligations incurred in conneotion with the construction of
the Project shall be paid into said interest and bond retirement fund account, mn)
together with the accrued interest aforesaid, shall be used solely for the pay-
ment of the interest on and the principal of the Bonds, or said unexpended bal-
ance or balances may be used for the purchase of such of the Bonds as are then
outstanding at a price, (exclusive of accrued interest), not exceeding the
principal amount thereof. Any Bonds so purchased shall be cancelled and no
additional bonds shall be issued in lieu thereof. Such Bonds, when cancelled,
shall be submitted to the Government for recording.
7. Disbursement ~~Proceeds and Grant. The Borrower will ex-
pend the funds in such special aocount or accounts only for such purposes as
shall have been previously specified in oertificates accompanying the requisitions
for such funds filed with the Government and approved by Counsel for the Govern-
ment, or such funds shall be used for purchasing Bonds as provided in this Agree-
ment.
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PART TWQ
1. Approval of A~reement. Within a reasonable time after the
receipt of the Agreement, the Borrower shall adopt a resolution setting
forth the Agreement in full, approving the same, and authorizing and directing
the execution thereof by the official or officials designated to sign the same
on the Borrower's behalf. Promptly thereupon, the Borrower shall cause such
official or officials to sign the Agreement.
2. Preliminary Prooeedings ~ Borrower. When the Agreement has been
signed on behalf of the Bo:rrower, the Borrower shall promptly:
{a} Send to the Government three signed counter-parts of
the Agreement and a oertified copy of the resolution
adopted by the Borrower pursuant to Paragraph l, PART TWO,
hereof, together with certified extracts of the minutes
pertaining to its adoption and any papers, certificates and
other documents which may be requested by Counsel for the
Government;
(b) Retain municipal bond counsel satisfactory to the Finance
Division to a~sist the Borrower in the Proceedings relative
to the authorization, issuance and sale of the Bonds, and to
give such legal opinions relative thereto as may be requested
by Counsel for the Government;
{c} Submit to the Government plans, drawings, and specifications
of the work and materials to be employed upon the Project;
the latest data as to the expected cost of the Project;
a statement as to when and how it is proposed to advertise
for bids and to let contracts for the work; a statement as
to when and how it is proposed to acquire the neoessary lands,
easements, franohises, and rights-of-way; an estimate as to
the amount of money that will be needed at the time of the
sale of the Bonds; and any other details or data that may be
requested by the Engineering Division;
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(d) Submit to the Government all such authorizations, permits,
licenses and approvals from Federal, state, county, muni-
oipal and other authorities as Counsel for the Government
may deem advisable then to be obtained in oonnection with
the Project or the Bonds;
(e) Take all the oroceedings necessary for the authorization
and issuance of the bonds including the giving of notice of
the proposed sale of the bonds to the Treasurer and
Department of Finance of the state of California.
3. First Bond Requisition. As soon as the provisions of Paragraph 2,
PART TWO, hereof, shall have been complied with to the satisfaction of Counsel
for the Government, the Borrower will file with the ~overnment a requisition re-
questing the government to take up and pay for such amount of the Bonds, as. to-
gether with Other Funds, and such portion, if any, of the Grant, requested
simultaneously with such Bond requisition, will provide sufficient funds for the
construction of the Project for a reasonable period (or, in the discretion of the
Finance Division, a requisition to take up and pay for the entire amount thereof
at one time), specifying the principal amount, serial numbers and maturities
(which maturities shall be satisfactory to the Finance Division) of the Bonds of
such block and the date when it is desired to complete the delivery thereof (which
date shall not be earlier than ten days after the Government's receipt of such
first Bond requisition, unless otherwise satisfactory to Counsel for the Govern-
ment), the first Bond requisition to be accompanied by a complete transcript of
all bond proceedings to date, together with such certificates, forms opinions,
letters, statements and other documents as may be requested by Counsel for the
Government.
4. First Bond Payment. If the first Bond requisition and the documents
accompanying the same are satisfactory in form, sufficiency and substance to CO~
sel for the Government, then, subject to the terms and conditions of this Agree-
ment, ~pon reasonable notice to the Borrower, and within a reasonable time after
thereceipt by the Government of the first Band requisition, the Government will
arran@e to take up and pay for such amount of the Bonds as, together with Other
Funds, and such portion, if any, of the Grant, paid simultaneously with the
payment for such amount of Bo~ds, will provide, in the judgment of the Engineer-
ing Division, sufficient funds for the oonstruction of the Projeot for a
reasonable period, or, in the judgment of the Finance Division, the entire ~ount
of the Bonds, the first Bond payment to be made ct the Federal Reserve Bank
of San Francisco, at San Francisco, California)
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P. W. 6526
Pre G. D. C.
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(herein called the "Reserve Bank"), or at such other place or places as Counsel
for the Government may d.esignate, against delivery by the Borrower of such Bonds,
(having all unmatured coupons attached), together with such documents as may
be requested by and which shall be in form, sufficiency and substance as there-
tofore approved by Counsel for the Government.
5. Subsequent ~ Requisitions. Unless all of the Bonds shall have
been previously delivered and paid for, from time to time after the first Bond
payment, but not oftener than once a month, (unless otherwise satisfactory to
the Engineering Division), the Borrower will file a requisition with the Govern-
ment requesting the Government to take up and pay for an additional block or
the Bonds of such amount, as, together with Other Funds, and such portion, if
any, of the Grant, requested sijTIultaneously with such Bond requisition, will
provide sufficient funds for the construction of the Project for a reasonable
p!'3riod, s:pecifying the principal amount, serial numbers and maturities, (which
ma~urities shall be satisfactory to the Finance Division), of the Bonds included
in such block and the date when it is desired to complete the delivery thereof,
(which date shall be not earlier than ten days after the Government's receipt
of such Bond requisition, unless otherwise satisfactory to Counsel for the
Government), each Bond requisition to be accompanied by such documents as may
be requested by Counsel for the Government.
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6. Subsequent B~P~yments. If a Bond requisition and the documents
accompanying the same are satisfactory in form, sufficiency and substance to
Counsel for the Government, then, subject to the terms and conditions of this
Agreement, upon reasonable notice to the Borrower, and within a reasonable time
after the receipt by the Government of such Bond requisition, the Government
will arrange to take up and pay for such additional amount of the Bonds~as, to-
gether with Other Funds, and such portion, if any, of the Grant, paid simultan-
eously with the payment for such amount of the Bonds, will prOVide, in the judg-
ment of the Engineering Division, sufficient funds for the construction of the
Project for a reasonable period. each Bond payment to be made at the Reserve Bank
or at such other place or places as Counsel for the Government may designate,
against delivery of such block of Bonds, ~aving all unmatured coupons attached~,
together with such documents as may be requested by and which shall be in form,
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sufficiency and substance as theretofore approved by Counsel for the Government.
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P. W. 6526
7. Grant Requisitions. The Borrower may at any time after the
execution of this Agreement but not oftener than once a week, file a
requisition requesting the Government to make a payment to the Borrower on
account of the Grant, each Grant requisition to be accompanied by such doc-
uments as may be requested by Counsel for the Government.
8. Grant Payments. If a Grant requisition and the documents accom-
panying the same are satisfactory in form, sufficiency and substance to Counsel
for the Government, then, subject to the terms and conditions of this Agree-
ment, upon reasonable notice to the Borrower, and within a reasonable time
after the receipt by the Government of such Grant requisition (but not earlier
than ten days after the receipt thereof, unless otherwise satisfactory to Counsel
for the Government), the Government will pay to the Borrower a sum of money,
which, together with all previous Grant payments, and Other Funds, shall be equal
in aggregate amount to 25 per centum of the cost of the labor and materials shown
to have been employed upon the Project to a date not later than the date of such
Grant requisition; provided, however, that such Grant payment, together with all
previous Grant payments, Other Funds, and the amount paid for the Bonds shall
not exceed in aggregate amount the total cost of the Project, and in no event
shall suoh Grant payment, together with all previous Grant payments and Other
Funds, exceed in aggregate amount the sum of $8,000. ; each Grant payment
to be made at the Reserve Bank or at such other place or places as Counsel for
the Government may designate, against delivery by the Borrower of its receipt
thereforo
9. Final Grant Requisition. Within a reasonable time after the
Project has been completed and al.l costs incurred in connection therewith have
been determined, the Borrower may file a requisition with the Government
requesting the Government for the final portion of the Grant, the final Grant
requisition to be accompanied by suoh documents as may be requested by Counsel
tor the Government.
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P. W. 6526
10. FInal Grant Payment. If the final Grant requisition and the docu-
ments accompanying the same are satisfactory in form. sufficiency ahd substance to
Counsel for the Government, then subject to the terms and conditions of this
Agreement, upon reasonable notice to the Borrower, and within a reasonalbe time
after the receipt by the Government of the final Grant requisition (but not
earlier than ten days after the receipt thereof. unless otherwise satisfactory to
Counsel for the Government). the Government will pay to the Borrower a sum of
money. which, together with all previous Grant ~ayments. and Other Funds, shall hi
equal in aggregate amount to 30 per centum of the cost of the labor and materials
employed upon the Project; provided, however, that the final Grant payment. to-
gether with all previous Grant payments, Other Funds, and the amount paid for the
Bonds shall not exceed in aggregate amount the total cost of the Project, and in
no event shall be final Grant payment, together with all previous Grant payments
and Other Funds, exceed in aggregate amount the sum of je,OOOi the final
Grant payment to be made at the Reserve Bank or at suoh other place or places as
Counsel for the Government may designate, against delivery by the Borrower of its
receipt therefor.
llo Cancellation 2! Bonds. If the Borrower, within a reasonable time
after the completion of the Project, shall have filed the final Grant>requ1sition
with the Government, and if the documents accompanying the same are satisfactory
in form, sufficiency and substance to Counsel for the Government, then, in
addition to the Grant payments made under the provisions of Paragraphs 8 and lO,
PART TWO, hereof. the Government will canoel; in so far as possible. and in such
order as may be satisfactory to the Finance Division. Bonds and/or coupons in an
aggregate amount equal to the amount. if any. by which 30 per centum of the cost
of the labor and materials employed upon the Projeot exceeds the aggregate of all
such Grant payments and Other Funds; and for such reasonable time and to this
end, the Government will hold Bonds in the amount necessary to effectuate the
purpose and intent of this Paragraph. unless payment of such excess shall have
been otherwise provided for by the Government.
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P. W. 6526
PART THR!E
CONSTRUCTION CONTRACTS
IN CONSIDERATION OF THE GRANT, TIn; BORROWER COVEN.b.NTS THAT:
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l. Construction Contraots. All construotion oontracts made by the Bor-
rower and all subcontracts for work on the Project shall be subject to the rules
and regulations adopted by the Government to carry out the purposes and control
the administration of the Act, and shall contain provisions appropriate to insure
that:
(a) Convict Labor. No convict labor shall be employed on the Project, and
no materials manufactured or produced by convict labor shall be used on
the project.
(b) 30-~ Week. Except in executive, administrative and supervisory posi-
tions, so far as practicable and feasible in the judgment of the Govern-
ment, no individual directly employed on the Project shall be permitted
to work more than thirty hours in anyone week, or, except in cases of
emergency, on any Sundays or legal holidays; but in accordance with rules
and regulations from time to time made by the Government, this prGv1sion
shall be construed to permit working time lost because of inclement
weather or unavoidable delays in anyone week to be made up in the
succeeding twenty days.
(c) Wages.
(l) All employees shall be paid just and reasonable wages which
shall be compensation sufficient to provide, for the hours of labor as
limited, a standard of living in decency and comfort;
(2) All contracts and subcontracts shall further prescribe such
minimum wage rates for skilled and unskilled labor as may be determined
by the Government and shall be subject to all rules and regulations which
the Government may promulgate in connection therewith. Suoh minimum
rates, if any, shall also be stated in all proposals of bids submitted
including those of subcontractors; and a clearly legible statement of all
wage rates to be paid the several classes of labor employed on the work
shall be posted in a prominent and easily accessible place at the site
of the work. All cont>>actors shall keep a true and accurate record of
the hours worked by and the wages paid to each employee and shall
furnish the Government with sworn statements thereof on demand.
(3) All employees shall be paid in full not less often than once
each week and in lawful ~'oney of the Fni ted states of A.rner ica in the full
lO
amount accrued to each individual at the time of closing of the payroll, which
shall be at the latest date practicable prior to the date of payment, and there
shall be no deductions on account of foods purchased, rent, or other obliga-
tions, but such obligations shall be subject to collection only by legal pro-
cess.
(d) ~r Preferences. Preference ahall be given, where they are qualified, to ex.
service men with dependents, and then in the following order:
(l) To citizens of the United States and aliens who have declared their
intention of becoming citizens, who are bona fide residents of the Oity of
Gilroy and lor County of Santa Clara, and,
(2) To citizens of the United States and aliens who have declared their
intention of becoming citizens, who are bona fide residents of the state of
California, provided, that these preferences shall apply only where such
labor is available and qualified to perform the work to which the employ-
ment relates.
These provisions shall hot be deemed to prevent the insertion, by the
Borrower, in specifications ane/or any such construction contract for work en
the Project, of any applicable provisions of the Public Works Alien Employmern
Act of 1931 (Deering's General Laws, 1931, Aot 6430), in so far as the same
are not inconsistent with the provisions of this Agreement and with Title 11
of the National Industrial Recovery Act.
(e) Employment Serviceli.To the fullest extent possible, labor required for the
Project and appropriate to be secured through employment services, shall be
chosen from lists of qualified workers submitted by local employment agencies
designated by the United States Employment Service, provided, however, that
organized labor, skilled and unskilled, shall not be required to r~gister at
such local employment agencies but shall be eecured in the customary ways througp
recognized union locals. In the event, however, that cualified ~orkers are not
furnished by the union locals within 48 hours (Sundays and holidays excluded)
after reouest is filed by the employer, such labor msy be chosen from lists of
cualified workers submitted by local employment agencies designated by the
United States Employment Service. In the selection of workers from lists pre-
pared by such employment agencies and union locals, the labor preferences pro-
Vided in SubyParagraph (d) supra, shall be observed in accordance with such
rules and regulations ar the Government ;:-!1ay prescribe.
(f) Human Labor. In accordaftce with such rules and regulations as the Govern-
ment may prescribe, the maximum of hUman labor shall be used in lieu of
machinery whereever praoticable and consistent with sound economy and pub-
lic advantage; and to the extent that the work Lay be accomplished at no
II
greater expense by human labor than by the use of machinery, and labor
of requisite qualifications is available, such human labor shall be em-
ployed.
(g) Accident Prevention. Every construction contr~ct for work on the Project
shall contain an undertaking to comply with all applicable provisions of
the laws and building and construction codes of the State, Territory,
Distriot and/or municipality in which the work is done and with any regu-
lations for the protection of workers which may be promulgated by the
Government.
(h) Comnensation Insurance. Every construction contract for work on the Proj-
ect shall contain a provision requiring the employer to furnish compen-
sation insurance for injured workers and to give proof of such adequate
insurance satisfaotory to the Government.
(i) Persons Entitled tQ Benefits Qt Labor ProvisionR. Every person who per-
forms the work of a laborer or of a mechanic on the Froject, or any part
thereof, shall be entitled to the benefits of the labor and wage provi-
sions hereof, regardless of any contractual relationship between the con-
tractor or subcontractor and such laborer or mechanic. There shall be no
discrimination in the ,selection of labor on the ground of race, creed or color.
(j) Bonding 2! Contractso Construction contracts shall be supported by ade-
quate surety or other bonds or security satisfactory to the Government for
the protection of labor and material men employed on the Project or any part
thereof.
(k) Materials. So far as articles, materials, and supplies produced in the
United States are concerned, only articles, materials and supplies pro-
duced under codes of fair oompetitionadopted pursuant to the provisions
of Title I of the Act, or under the President's Reemployment Agreement,
shall be used in work on the Project, except when the Government deter-
mines that this requirement is not in the public interest or that the
consequent cost is unreasonable. So far as feasible and practicable, and
subject to the above, preference shall be given to the use ,of locally
produced materials if such use does not involve higher cost, inferior
quality or insufficient quantity, subject to the determination of the
Government; but there shall ~e no requirenlent providing prioe differen-
tiations for or restricting the use of materials to those produced within
the Nation or State.
l2
(l) Inspection and Records. The Government, through its authorized agents
shall have the right to inspect all work as it progresses and shall have
access to all pay rolls, records of personel, invoices of materials,
and other data relevant to the performance of the contract.
(m) Reports. Subject to such rules and regulations as the Goverlunent may
prescribe, contractors and subcontractors shall make reports in tripli-
cate to the Government monthly within five days after the close of each
calendar month on forms to be furnished by the United St~tes DepQrtment
of Labor, which reports shall include the number of 'ersons on their
pay rolls, the aggregate amount of the pay rolls, the Inan hours worked,
wage scales paid to various classes of labor and the total expenditures
for materials. The contractors shall also furnish to the Government
the names and addresses of all subcontractors at the earliest date prac-
ticable.
{n} Compliance with Title I of ~~. All contractors and subcontractors
~ust comply with the conditions prescribed in Sections 7 (a) (l) and
7 (a) (2) of Title I of the Act.
2. Restriction ~ to Contractors. No contract shall be let to any con-
contraotor or subcontractor who has not signed and complied with the applicable
anproved code of ~air competition adopted under Title I of the Act for the trade
or industry or subdivision thereof concerned, or, if there be no such approved
code, who has not signed and complied with the provisions of the President's
Reemployment Agreement.
3. Termination for Breach. The Borrower will enforoe compliance with
all the provisions of this part of this Agreement, and, as to any work done by it
in connection with the construction of the Project, will itself comply therewith.
All construction contracts shall provide that if any such provisions are violated
by any contractor or subcontractor, the Borrower may, with the approval of the Gov
ernment, and shall at the request of the Government, terminate by written notioe
to the contractor or subcontractor the contract of such contractor or subcon-
tractor, and have the right to take over the work and prosecute the same to
completion by contract or otherwise and such contractor or subcontraotor and his
sureties shall be liable for any excess cost occasioned theI'eby and/or, if so re-
quested by the Government, the Borrower shall withhold from such contractor or
subcontractor so Tiuch of the compensation due to him as may be necessary to pay tI
laborers or mechanics the difference between the rate of wages required by the c~n
tract and the rate of wages actually paid to the laborers and mechanics.
l3
P. W. 6526
Form R-I-Q@-1
4. Force Labor. Provided, however, that if prices in the bids are
excessive, the Borrower reserves the right, anything in this Agreement to the
contrary notwithstanding, to apply to the Government for permission to do all
or any part of the Project by day labor, upon such conditi8ns as the Government
may impose, witp the understanding that all provisions in this Agreement, in-
cluding those relating to labor, Waf(~S, hours and recruitment, shall be ob-
served.
~
14
PART FOUR
---- ----
1. Construction 2! Project. Upon receiving a Bond payment under the pro~
visions of Paragraph 4, PART TWO, hereof, the Borrower will nromptly commenoe or
cause to be commenced the construction of the Project (unless such construotion
has already been commenced). and the Borrower will thereafter continue suoh con-
struction or cause it to be continued to completion with all practicable dispatch)
in an efficient and economical manner, at a reasunable oost, and in accordance
with the provisions of this Agreement as to the labor and materials to be employed
upon the Project, and the plans, d~awings, specifications and construction con-
tracts which, except for subcontracts, shall be in form satisfactory to the
Engineering Division, and in accordance with such engineering supervision and
inspection as the Government or its representatives may require. Except with the
prior written consent of Counsel for the Government, no materials or equipment
for the Project shall be purchased by the Borrower subject to any chattel mortgage
or any conditional sale or title retention agreement.
2. Completion of Project. Upon the completion of the Project the Borrow-
er will furnish to the Government a certificate of the Borrower's engineers certi-
fying to such completion, to the total cost of the Projeot and to suoh other
matters as the Engineering Division may request, such certificate to be accompan~d
by such data as the Engineering Division may request.
3. Information. During the construction of the Project the Borrower will
furnish to the Government all such information and data as the Engineering
Division may request as to the construction, cost and progress of the work. The
Borrower will furnish to the Government and to any purchaser from the Government
of 25 per centum of the Bonds. such financial statements and other information
and data relating to the Borrower and the Project as the Finance Division or any
such purchaser from time to time may reasonably require.
4. Conditions frecedent to the Government's ObligationQ. The Government
shall be under no obligation to pay for any of the Bonds or to make any Grant:
(a) Budget. If in the judgment of the Federal Emergency Administrator
of Public Works (hereinafter called the "Administrator") the Bor-
rower has failed to balance its budget satisfactorily, or has fail-
ed to take satisfactory action which is reasonably designed to
bring the ordinary current expenditures of the Borrower within tm
l
prudently estimated revenues thereof;
(b) Cost of Project. If the Engineering Division shall not be satisfied
that the Borrower will be able to oonstruct the Project within the
cost estimated at the time when the Application was arproved by the
rV-l
P. W. 5586
LV-2
Government, such estimated oost being the amount of j37,OOO. ,
unless, in the event that additional funds appear to the Engineer-
ing Division to be necessary in order to pay in full the COct of
the construction of the Project, the Finance Division shall be sa-
tisfied that the Borrower will be able to obtain such funds, as
needed, through additional borrowing or otherwise, in a manner
satisfactory to Counsel for the Governrrlent;
(c) Complience. If the Borrower shall not have complied, to the satis-
faction of Counsel for the Government, with all the provisions con-
tained or referred to in this Agreement and in the proceedings
authorizing the issuance of the Bonds, theretofore to be complied
with by the Borrower;
(d) LeRal Matteri. If Counsel for the Government shall not be satis-
fied as to all legal matters and proceedings affecting the Bonds,
the security therefor or the Project;
(e) Representations. If any representation made by the Borrower in
this Agreement or in the Application or in any supplement thereto
or amendment thereof, or in any document submitted to the Govern-
ment by the Borrower shall be found by Counsel for the Government
to be incorreot or incomplete in any material respect;
(f) Financial Condition. If, in the judgment of the Finance Division,
the financial condition of the Borrower shall have changed unfavor-
ably in a material degree from its condition as theretofore repre-
sented to the Government.
5. Representations ~ Warranties. The Borrower represents and warrants
as follows:
(a) Authorizations. All necessary authorizations, permits, licenses
and approvals from Federal, State, county, wlnicipal and other
authorities in oonneotion with the Project or the Bonds have been
or will be obtained;
(b) LitiRation. No litigation or other proceedings are now pfnding or
threatened which might adversely affect the Bonds, the oonstruction
,
and operation of the Project, or the financial condition of the
Borrower;
LV-2
l6
P. W. 5122
(c) Financial Condition. The character of the assets and the financial
oondition of the Borrower are as favorable as at the date of the
Borrower's most recent financial statement, furnished to the
Government as a part of the Application, and there have been no
changes in the charac~er of its assets or in its financial condi-
tion exoept such changes as are necessary and inoidental to the
ordinary und usual conduot of the Borrower's affairs;
Cd) Fees ~ Commissions. No fee or commission has been or will be
paid by the Borrower or any of its officers, employees, agents or
representatives, and no agreement to pay a fee or commission has
been or will be entered into by or on behalf of the Borrower, or
any of its officers, employees, agents or representatives, in
order to secure the loan and/or Grant hereunder;
(e) Affirmation. Every statement contained in this Agreement, in the
Borrower's Arplioation, and in any suprlement thereto or amendment
thereof, and in any other document submitted or to be submitted to
the Government by or on behalf of the Borrower is, or when so
submitted will be, correct and complete, and no relevant fact
materially affecting the Bonds, the Grant, the project or the ob-
ligations of the Borrower under this Agreement has been or will be
omitted therefrom.
$. Indemnification. The Borrower will indemnify the Government and all
purchasers of the Bonds from the Government against any loss or liability incu~
by reason of any inaccuracy or incomyletness in any representation contained
herein. In the event that there shall be any suoh inaccuracy or incompleteness,
the Gover~~ent shall be entitled (in addition to the above right of indemnifioa-
tion and any other right or remedy) to return any or all of the Bonds to the
Borrower and recover the prloe;Jaid therefor by the Govennment.
7.~ 2! Government's Name. Without the prior written consent of the
Government, the Borrower will not refer to this Agreement or to any purchase by
the Government of the Bonds as an inducement for the purchase of any securities
(including Bonds repurohased lrom the Government) of the Borrower; and will not
permit any purchaser from it of any such securities to do so.
IV-3
17
P. W. 6526
8. Sale of Bonds Ql the Government. The Borrower will take all such
steps as the Government may reasonably request to aid in the sale by the Govern.
ment of any or all of the Bonds. Upon request, the Borrower will furnish to the
Government or to any purchaser from the Government of 25 per centum of the Bond&
information for the preparation of a bond oircular in oustomary form, signed by
the proper official of the Borrower, oontaining such data as the Government or
such purchaser may reasonably request conoerning the Borrower and the Project.
9. Expenses. The Borrower will pay all costs, charges and expenses
incident to compliance with all the duties and obligations of the Borrower under
this Agreement inolucing, without limiting the generality of the foregoing, the
cost of preparing, executing and delivering the Bonds and obtaining all legal
opinions requested by Counsel for the Government.
10. Supplemental Documents. The Borrower will furnish to the Govern-
ment suoh supplemental doouments as Counsel for the Government may request in
connection with the Bonds, the Grant, the Project or the oblisations of the
Borrower under this Agreement.
ll. Waiver.Any provision of this Agreement may be waived or amended
with the consent of the Borrower and the written approval of the Engineering
Division, Finance Division, and Counsel for the Government, without the execution
of a new or supplemental agreement, if, in the opinion of Counsel for the Govern-
ment, which shall be conclusive, such waiver or amendment does not substantially
vary the terms of this Agreement. No waiver by the Government of any such
provision shall constitute a waiver thereof as applied to any subsequent obliga-
tion of the Borrower or the Government under this Agreement.
l2. A~reement E2l ~ ~ Benefit ~ Third Parties. This Agreement is
not for the benefit of any pe:'-son or corporation other than the parties hereto,
their respective assigns or the suocessors of the Borrower, and neither the hold~
of the Bonds nor any other person or corporation, except the parties hereto, the~
respective aEsigns or the successors of the Borrower, shall have any rights or i~-
terest in or under this Agreement, except as expressly provided for herein.
l3. Interest of Member of Con~ress. No member of or Delegate to the
Congress of the United states ~f America shall be admitted to any share or part
of this Agreement, or to any benefit to arise thereupon.
IV-4
l8
P. W. 5122
l4. Validation. The Borrower hereby covenants that it will in-
stitute, prosecute and carry to completion insofar as it may be within the
power of the Borrower, any and all acts and things to be performed or done
to secure the enactment of legislation or to accomplish suoh other proceed-
ings, judicial or otherwise, as may be necessary, appropriate or advisable
to empower the Borrower to issue the Bonds,and to remedy any defects, il-
legalities and irregularities in the proceedings of the Borrower relative to
the issuance of the Bonds and to validate the same after the issuance thereof
to the Government, if in th~ judgment of Counsel for the Government suoh
I te or advisable The Borrower fur-
action may be deemed necessary, appropria ·
ther covenants that it will proaure and furnish to the Government, as a con-
dition precedent to the Government's obligations hereunder, a letter from the
Governor of the State of California
in form satisfactory to Counsel for
the Government and expressing the covenant and agreement of said Govennor
to effectuate insofar as it is within pis power the covenant of the Borrower
as hereinabove in this Paragraph expressed.
l5. Miscellaneous. This Agreement shall be binding upon the parties
hereto when a copy thereof, duly eyecuted by the Borrower and the Government,
shall have been reoeived by the Borrower. This Agreement shall be governed by
and be construed in accordance with the laws of the state of California.
This Agreement shall be binding upon and
.
inure to the benefit of the parties hereto, their respective assigns and the
successors of the Borrower, and shall inure to the benefit of the holders from
time to time of any of the Bonds; provided, however, that no rights of the
Borrower hereunder shall be assignable eycept with the prior written oonsent
of the Government. All obligations of the Borrower hereunder shall cease
upon paYTllent in full of all the Bonds.
l6. Promotion of National RF!/'HY'\7A"'~. The Borrower covenants to discharge
faithfully and with all possible dispatch the duties and obligations im-
posed upon it by this Agreement, it being the purpose of this Agreement to en-
able the Borrower to secure the benefits of the Act, foster employment, promote
the public welfare and thereby assist in the recovery program of the President
t
of the United States.
IV-5
19
Po W. 6806
l7. Undue Delay ~ ~ Borrower. The Government shall have
the right to rescind the allotment for the Project and annul any obligation to
make a loan or a grant to the Borrower unless the Borrower shall within a
reasonable time:
(a) Sign and return to the Government three counterparts
of this Agreement as provided in Paragraphs land 2,
PART TWO, hereof. (For the purpose~ of this subpara-
graph 17 (a) a reasonable time shall be deemed to be ten
days in the ordinary course of events or such longer
period as shall be allowed in the absolute discretion
of the Administrator);
(b) Comply with all the provisions of Paragraph 2, PART
TWO, hereof, including particularly subparagraph(e)
relating to the authorization and issuance of the Bonds;
(c) File requisitions with the Government in accordance
with the provisions of ParagraphS 3 and 5 PART TWO,
hereof; and
(d) Commence or cause to be commenced the construction of
the Project.
The administrator shall determine in his absolute discretion
what constitutes a reasonable time within the meaning of this Paragraph 17.
l8. Construction of Agreement. If any provisLon of this
Agreement shall be invalid in whole or in part, to the extent that it is not
invalid it shall be valid and effective and no such invalidity shall affect,
in whole or in part, the validity and effectiveness of any other provision of
this Agreement or the rights or obligations of the parties hereto, provided,
in the opinion of Counsel for the Government, the Agreement does not then vio-
late the terms of the Act.
.
IV-6
20
T
I
I
Po W. 6367
City of Gilroy, County of Santa Clara, California
IN WITNESS WHE'?EOF, 'the CITY OF GILROY, COUNTY OF SANTA CLARA,
CALIFORNL~, and the UNITED STATES OF l~ERICA have respectively caused this
Agreement to be duly executed as of the day and year first above ~Titten.
CITY OF GILROY, COIDJTY OF SANTA CLARA., CALIFORNIA,
By
Mayor.
SEAL
ATTEST:
City Clerk.
UNITED STATES OF AMERICA
By
Federal Emergency Administrator
of Public Works
.,
IV-7
2l
BE IT FURTHER RESOLVED that the Mayor, Elmer J. Che sbro, of
the City of Gilroy, be and he is hereby authorized and empowered
to execute said loan and grant agreement as such Mayor and that
the same be duly attested by E. F. Rogers, City Clerk of said City
of Gilroy, and that the official seal of said City be affixed
thereto.
The above and foregoing resolution was duly passed and
adopted by the Common Council of the City of Gilroy at an adjourned
regular meeting held on the ~ day of
a two-thirds vote of all the members of
, 1934, by
Council of the
City of Gilroy as follows:
'-4
,~~
AYES:
NOES:
ABSENT :
Approved:
Attest:
~ i'f) h-v '
~ Mayor.
c; /l ~!~.
y e rk.
"
~,
-2-
\.'_ .J
Motion by Councilman J. H. Hush, seconded by Councilman S.
b)' i ~ "",
~ ,<
.ki{ d
D._Heck and carried:
That the Mayor be empoBered to sign pap-
ers pertaining to the loan and the Clerk to affix the official
seal.
Bills of I. Patterson, Wagner and the Evening Dispatch were
presented and by motion o~ Councilman S. D. Heck, seconded by
Councilman Geo. C. Milias, Jr. ordered allowed and warrants
drawn.
The matter of oiling roads was left with the Street Depart-
ment Committee.
Adjourned until Next Tues-
day, May 22nd, 1934.
~~lUfJr
,