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HomeMy WebLinkAboutCC RESO 12,301CITY OF NATIONAL CITY RESOLUTION NO. 12,301 RESOLUTION CALLING A SPECIAL REVENUE BOND ELECTION IN THE CITY OF NATIONAL CITY FOR THE PURPOSE OF SUBMITTING TO THE QUALIFIED VOTERS OF SAID CITY THE MEASURE OF ISSUING REVENUE BONDS IN THE PRINCIPAL AMOUNT OF $22,500,000 TO PROVIDE FUNDS FOR THE ACQUISITION OF A WATER SYSTEM; DECLARING THE ESTIMATED COST OF SAID ACQUISITION, THE PRINCIPAL AMOUNT OF REVENUE BONDS TO BE ISSUED THEREFOR, AND THE MAXIMUM RATE OF INTEREST TO BE PAID ON SUCH REVENUE BONDS; FIXING THE DATE OF SAID ELECTION, THE MANNER OF HOLDING THE SAME AND THE MANNER OF VOTING FOR OR AGAINST THE ISSUANCE OF SAID REVENUE BONDS; CONSOLIDATING SAID ELECTION WITH THE SPECIAL MUNICIPAL ELEC- TION TO BE HELD ON SAID DATE OF ELECTION; AND PROVIDING FOR NOTICE OF SAID ELECTION. WHEREAS, the City Council of the City of National City has duly determined that the public interest and neces- sity demand the acquisition of the existing California -American Water Company's water system now serving the City, South Bay Irrigation District and Chula Vista (the "Sweetwater Water System"), and has further duly determined that such acquisition should be financed by the issuance of revenue bonds under the Revenue Bond Law of 1941; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City, as follows: Section 1. A special revenue bond election shall be and is hereby ordered and will be held in the City of National City on Tuesday, May 31, 1977, at which election there shall be the measure of Law of 1941 of submitted to the qualified voters of the City issuing revenue bonds under the Revenue Bond the State of California for the purpose of providing funds for the acquisition of the Sweetwater Water System, as set forth in the following measure, to wit: MEASURE (W) : (Water System Acquisition - Revenue Bonds) "Shall the City of National City acquire by court judgment the California -American Water Company's water system, which serves the City, South Bay Irrigation District, and Chula Vista, and for such purpose shall the City of National City issue twenty-two million five hundred thousand dollars of revenue bonds pursuant to the Revenue Bond Law of 1941?" Section 2. (a) The estimated cost of said acqui- sition is $22,500,000 and the principal amount of revenue bonds proposed to be issued therefor is $22,500,000. (b) Said estimated cost includes all costs and estimated costs incidental to or connected with said acqui- sition, together with all engineering, appraisal, inspection, legal and fiscal agent's fees, costs of the bond election and of the issuance of said revenue bonds, and bond reserve funds and working capital. The enterprise for the acqui- sition of which said revenue bonds shall be issued under the Revenue Bond Law of 1941 of the State of California is hereby defined to be the whole and each and every part of the 2 presently existing Sweetwater Water System, and all facili- ties hereafter acquired or constructed for said water system, and all additions, extensions, betterments and improvements to said water system or any part thereof hereafter made or acquired or constructed by contract, pur- chase, condemnation or otherwise for said purpose. It is hereby found and determined that the City does not now own or operate a water system, that the public interest and necessity require that the City acquire the Sweetwater Water System, that the City has no means of financing the cost of said acquisition except by the issuance and sale of said $22,500,000 principal amount of revenue bonds, that the revenues from said water system shall be pledged to the payment of said revenue bonds proposed to be issued for the foregoing purpose, and that said water system, and each and every part thereof, when acquired as aforesaid, will constitute a complete water system for the City and its environs. It is hereby found and determined that the acquisition of said water system is necessary to enable the City to exercise its municipal powers and functions, namely, to furnish sufficient water service for any present or future beneficial use of the City. Section 3. This City Council proposes to issue and sell revenue bonds in not to exceed the amount and for the object and purpose specified in said measure if a major- ity of all of the electors voting on said measure at said special revenue bond election shall vote in favor of said 3 measure. The rate of interest to be paid on said revenue bonds shall not exceed eight per cent (8%) per annum, pay- able semiannually (except that the City Council of the City, in its discretion, may provide that interest for the first year shall be payable annually in one installment at the end of such year), and said issue of revenue bonds shall be revenue bonds payable exclusively from the revenues of said enterprise which are legally available for such pur- pose and are not to be and shall not be secured by the taxing power of the City, and shall be issued under the Revenue Bond Law of 1941. The principal of and interest on said revenue bonds, and any premiums upon the redemption of any thereof, are not and shall not constitute a debt of the City, nor a legal or equitable pledge, charge, lien or encumbrance upon any of its property or upon any of its income, receipts or revenues, except the revenues of said enterprise legally available for such purpose. No taxes shall ever be levied or collected by the City for the payment of any of said revenue bonds or the interest thereon, nor shall any property of the City be subject to forfeiture therefor; but all revenues of said enterprise legally available for the pay- ment of said revenue bonds shall be applied to such payment. Said issue of revenue bonds, if authorized, shall be special obligations of the City and shall be secured by a pledge of and shall be a charge upon and shall be payable, as to the principal thereof, interest thereon and any premiums upon the redemption of any thereof, solely from and secured by a lien upon the net revenues of said enterprise, and all of 4 the net revenues of said enterprise, including the revenues of additions, extensions, improvements and betterments thereto hereafter acquired or constructed, shall be pledged and assigned as security for all of said revenue bonds; provided, that, if all necessary and reasonable maintenance and operation costs of said enterprise (which costs include the reasonable expenses of management, repair and other expenses necessary to main- tain and preserve said enterprise in good repair and working order) are paid when due, and if the interest on and prin- cipal of all of said revenue bonds and all charges to pro- tect or secure them are paid when due (including such sums for sinking funds, redemption funds, reserve funds or other funds created for the better securing of all of said revenue bonds as shall be provided for in the discretion of the City Council in the resolutions of the City Council providing for the issuance of any of said revenue bonds), then, subject to any limiting covenants in the resolutions of the City Council providing for the issuance of any of said revenue bonds, the remaining surplus may be used for any lawful purpose of said City. This City Council may, subject to the provisions of the Revenue Bond Law of 1941, provide for the issuance of additional revenue bonds for the pur- pose of improving said enterprise, or making any extensions or additions thereto, on a parity with any of said revenue bonds authorized for the acquisition of said enterprise, subject to such limitations as this City Council may specify at the time of the issuance of any of said revenue bonds herein proposed to be authorized for the acquisition of said enterprise. 5 Section 4. The City Council does hereby submit to the qualified voters of the City of National City at said special revenue bond election said measure set forth in Section 1 of this resolution. (a) Said special revenue bond election shall be held and conducted, and the votes thereat canvassed and the returns thereof made, and the result thereof ascertained and determined as herein provided; and in all particulars not prescribed by this resolution said special revenue bond election shall be held and conducted and the votes received and canvassed in the manner provided by law for the holding of general municipal elections in said City. (b) All persons qualified to vote at municipal elections in the City of National City upon the date of the election herein provided for shall be qualified to vote upon the measure submitted at said special revenue bond election. (c) The polls at the polling places for said spe- cial revenue bond election shall be opened at 7:00 o'clock A.M. of said day of election and shall be kept open continu- ously thereafter until 8:00 o'clock P.M. of said day of elec- tion, when the polls shall be closed (except as provided in Section 14301 of the Elections Code), and the election offi- cers shall thereupon proceed to canvass the ballots cast thereat. (d) Said special revenue bond election shall be consolidated with the special municipal election heretofore called to be held in the City of National City on said date of election, pursuant to Resolution No.12290 adopted on March=154. , 1977, and the precincts, polling places and officers of election for said special revenue bond elec- tion shall be as provided for said special municipal election, as set forth in Resolution No. 12,322 adopted April 5, 1977, to which proceedings reference is hereby made for a descrip- tion thereof. (e) Each voter to vote for said measure hereby submitted and in favor of the issuance of revenue bonds as set forth in said measure shall stamp a cross (+) in the blank space opposite the word "YES" on the ballot to the right of said measure, and to vote'against said measure here- by submitted and against the issuance of revenue bonds as set forth in said measure shall stamp a cross (+) in the blank space opposite the word "NO" on the ballot to the right of said measure. On absent voter ballots the cross (+) may be marked with pen or pencil. (f) This City Council shall meet on Tuesday, June 7, 1977, at 8:00 o'clock P.M. at its usual meeting place and canvass the returns of said special revenue bond election as required by law, and declare the result of said election. Section 5. The City Clerk of the City of National City is hereby directed upon the passage and adoption of this resolution to publish the same once a week for at least two succeeding weeks in the National City Star -News, which is a newspaper of general circulation published less than six days a week in the City of National City. No other notice of the election hereby called need be given. Section 6. This resolution shall be forthwith entered upon the minutes of this City Council and shall take 7 effect immediately upon adoption. as amended on April 5, 1977, PASSED AND ADOPTED March 29 , 1977e/by the follow- ing vote: AYES: Councilmen Camacho; Dalla; Pinson; Reid; Morgan NOES: None. ABSENT: None. [SEAL] ATTEST: Mayor of the tyf of National City City Clerk of the ity of National City The foregoing resolution is presented to me for ap- 29t proval and is hereby approved this day of March, 1977.