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HomeMy WebLinkAboutMinutes - May 28, 1935 SMQ COUNCIL CHAMBERS - - CITY COUNCIL CITY HALL - - CITY OF LODI May 28, 1935 The City Council of the City of Lodi convened in special session in the Council Chambers at the City Hall in said City on Tuesday, the 28th day of May, 1935 at the Your of 8:OOP.M. The meeting was called to order by the Mayor, G.M. Steele. The Clerk called the roll. Those present and those absent were as follows: _ PRESEN`i: Councilmen, Harvey S. Clark, W.A. Spooner, Otto A. Weihe, and G.M. Steele Mayor) ABSENT: Councilman, George A. Zeagle. The Clerk read the call of the meeting together with the proof of service of the same, which was ordered spread upon the minutes of the meeting. CITY Or LODI, CALIr0-RNIA Office of the City Clerk and Assessor Monday, May 27,. 1935 To: Mr. Harvey S. C1ark,.City Councilman, Mr. George A. Yeagle,City Co.:ncilman, Mr. W. A. Spooner, City Councilman, 13r. Otto A. Weihe, City Councilman, Mr. G.M. Steele, City Councilman, You and each of you are hereby notified that I ha-ve called a special meeting of the City Council of the City of Lodi, California to be held in the Council Chambers at the City, Hall in said City at 8:00 o'clock P.M. on Tuesday., the. 28th day of May 1935, for the purpose of considering a proposed Loan and Grant Agreement between said City of Lodi and the United States of America. and adopting a resolution approving and authorizing the execution of such agreement. (Signed) G.M. Steele Mayor of the City of Lodi A true copy of the foregoing notice was delivered by me to each of the above-named members of the City Council of the City of Lodi on the 27th day of Cloy, 1935 within the territorial limits of the City of Lodi, County of pan Joaquin, State of California. (Signed) J. P. BL:'_=Y City Clerk of the City of Lodi and ex -officio Clerk of the City Cauneil Dated: May 27, 1935 of said City. The 'followinz resollation numbered 778 and entitlsd "A rR'SOLUTION APPROVING A LOAN dND GRANT AG3�T 3ETWEEN THE CITY O? LODI AND THE UNITED STATES 0: AM RICA'. AND AUTHORIZING ITS EZ---CUTION" was intro- duced by Councilman Spooner, seconded by Councilman Weihe and read once in full by the City Clerk and considered by the City Council: RESOLUTION NO. 778 A RESOLUTION APPR07ING A LOAN AND GRANT AG?XEIFIT BETWEEN THE CITY OF LODI AND THE UNI'TED STATES OF AIEFICA, AND AUTH0_iIZING ITS EXECIITION. BE IT 1qE30LVED 3Y THE CITY COUNCIL JP THE CITY OF LODI , Section -1. That the loan and Grant Agreement between the City of Lodi. County of San Joaquin, State of California, and the United States of America under and subject to the terms of which the United States will by loan and grant not exceedin a in the aggregate the sum of SIX HUND.ED THOUS.0D D0.,LAR3 (4600,000.OU) aid said City of Lodi in -financing the construction of a hydro -electric -diesel generating plant and transmission line, a copy of whi2h loan and grant agreement is filed among the public records of the City of Lodi in the office of the City Clerk of said City and is also set forth at length in Vol. 5, Page 204 et seq, "3ecords of the City Council, City of Lodi", and which Loan and Grant Agreement is hereby made a Dart hereof, be and the same is hereby in all respects approved. 203 COUNCIL CHAMBERS --CITY COUNCIL CITY, HALL - - CITY OF LODI Section 2. That the Uayor of said City of Lodi be and he is hereby authorized and directed to execute such Loan and Grant Agreement in triplicate on behalf of the City of Lodi, and the City Clerk of said City of Lodi be and he is hereby authorized and directed to impress or affix the official seal of said City to each of said three copies of said Loan and Grant Agreement and to attest such seal. Section 3. That said City Clerk be and he is hereby authorized and directed to forthwith forward three conies of said Loan and Grant Agreement as executed on behalf of said City of Lodi to the Federal Emergency Administration of Public Work, Washington, D.C. Section 4. That the +payor and the City Clerk be and they are hereby authorized and empowered on behalf of said City of Lodi to request and consent to modifications or changes in said Loan and Grant Agreement with reference to the designation, date, denominations, medium of payment, places of payment, and registration or conversion privileges of the bonds to be issued thereunder in irder to cimply with the requirements of law and of the proceedings teen for the issuance of said bonds. and to exscute in the same manner as said Loan and Grant Agreement any further instruments that may be found desireable in connection with such modifications or changes. Section 5. That said City Clerk be and he is hereby authorized and directed to forthwith send to said Federal Emergency Administratioh of Public Works two certified copses of this Resolution and two certified copies of the proceedings of the City Council in connection with the adoption of this Resolution, and such further documents or proofs in connection with the approval and execution of said Loan and Grant Agreement as may be requested by said Federal Emergency Relief Administration of Public forks. The question being gut upon the passage and adoption of said Resolution No. 778, the roll was called with the following results: AYES: Councilmen, Spooner, Weis, Clark, and Steele. NOES_ Councilmen, None A33ENT: Councilman, Beagle. The Mayor thereupon declared the Resolution adopted. It was moved by Councilman Weihe and seconded by Councilman Clark that the meeting adjourn. Motion carried. City Clerk. O- - - - - - - - CLERZ'S CERTIPIC,,T I. J. F. 3LA22LY, City Clerk of the City of Lodi. County of San Joaquin, State of California. do hereby certify that the annexed extract from the minutes of the special meeting of the City Council of the City Of Lodi held on the 28th day of May.. 1935. has been compared by me with and is a true copy and a correct copy of the whole of said minutes insofar as such minutes relate to the matters therein referred to. IN WITPTESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Lodi this 28th day of May, 1935. (SEAL) CityIerk o the City o L ;; / fficio Clark of the City C^il of said City. 46 i It COUNCIL CHAMBERS -- CITY COUNCIL CITY HALL -- CITY OF LODI LOAN AND GRANT A13,a HITT BETWEEN THEE CITY 0? LODI, CaLI?ORNIA AND T= UNITED STATES 0? YERICA P.W.A. Doc -et No. 57:51. 1. Purpose of Agreement. Subject to the terms and conditions of this Agreement, the United States of America (herein called the "Government") will, by loan and grant not exceeding in the aggregate the sum of j600,000 (herein called the "Allotment") aid the City of Lodi (San Joaquin County, California) (herein called the "Borrower") in financing a project (herein called the "Project") consisting substantially of the construction of a hydro -electric generating plant, Diesel electric fenerating plant and transmission line, all pursuant to the Borrower s application (herein called the "Application"), P.W.A. Docket No. 5731, Title II of the National Industrial Recovery Act (herein called the "Act") and the Constitution and Statutes of the State of California (herein called the "State"). 2. Amount and Method of Maainp Loan. The Borrower will' sell and the Government will buy, at the principal amount thereof plus accrued interest, $466,000 aggre;ate principal amount of negotiable coupon bonds (herein called the "Bonds") of the description outlined 'below or such other description as may be satisfactory to the Borrower and to the Federal Emerzency Administrator of Public Works (herein called the "Administrator"), bearing interest at the rate of 4 percent per annum, payable semi-annually from date until maturity, less such amount of the Bonds, if any, as the Borrower may sell to purchasers other than the Government. (a) Date: July 1, 1935. (b) Denomination: 41,000. (c) Place of Payment: At the office of the Treasurer of the City of Lodi, Lodi Ualifornia, or, at the option of the holder, at a bank or trust company in the 3orough of Manhattan. City and State of bew fork. (d) Registration Privileges: Registerable as to both principal and interest. (e) Maturities: Payable, without option of prior redempt- ion, on July 1, in years and amounts as follows: $23,000 in each of the years 1936 to 1949, both inclusive 1024,000 in sack of the years 1950 to 1955, both inclusive (f) Security: General obliQ_ations of the Borrower, payable as to both print pand 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. Amount and Method of Maki -via Grant. The Government will made and the Borrovier will a7cept, whether or not any or all of the 3onds are sold to purchasers other than the Government, a grant (herein called the "Grant") in an amount equal to 30 per centum of the cost of the labor and materials employed upon the °rojeet. The determinatijn by the Administrator of the cost of the labor and materials employed upon the Project shall be conclusive. The Govern- ment will make part of the Grant by payment of money and the remainder of the Grant by cancellation of Bonds or interest coupons or both. If all of the Bonds are sold to purchasers other than the Government the Government will make the entire Grant by payment of Money. In no event shall the Grant, whether made partly by payment of money aisd partly by concellation, or wholly by payment of money, be in excess of $148,000. 4. Bond 2roceedings. When the agreement has been executed the 3orrower (unless it has already done so) shall ^rom ptly take all proceedinxs necessary for the authorization and issuance of the Bonds. 20 COUNCIL CHAMBERS --CITY COUNCIL CITY HALL -- CITY OF LODI 5. Bond and Grant Reouisitions. Prom time to time after the execution oath -is Agreement, the Borrower shall file a requisition with the Government requesting the Government to take up and pay for Bonds or to make a payment on account of the Grant. Each requisition shall be accompanied by such documents as may be requested by the Administrator (a requisition tozether with such documents being here- in collectively called a!"Requisition"). 6. Bond Payments. If a Requisition requesting the Government to tale up and pay for Bonds is satisfactory in form and substance to the.Administrator, the Government, within a reasonable time after the receipt of such Requisition, will take up and pay for Bonds. having maturities satis.actory to the Administrator, in such amount as will provide. in the judgment of the Administrator, sufficient funds for the construction of the Project for a reasonable period. Payment for such Bonds shall be made at a Pederal Reserve Bank to be designated by the Administrator or at such other place or places as the Administ_ator may dealznate, against delivery by the Borrower of such Bonds, haring- all unmatured interest coupons attached thereto, together with such documents as may be requested by the administrator. The Government shall be under no obligation to take up and pay for Bonds beyond the amount which in the judgment of the Administrator is needed by the Borrower to complete the Project. 7. Grant by Payment of 31oney. If a Requisition requesting the Government to maVe a payment on account of the Grant is satisfactory in form and substance to the Administrator. the Government will pay to the Borrower at such place or places as the Administrator may designate against delivery by the Borrower of its receipt therefor, a sum of money equal to the difference between the aggregate amount previously paid on account of the Grant, and (a) 25 per centum of the cost of the labor and materials shown in the Requisition to have been employed upon the Project if the Requisition shows that the Project has not been completed. or (b) 30 per centum of the cost of such labor and materials if the Requisition shows that the Project has been completedand that all costs incurred in connection therewith have been determined; proviled, however, that the part of the Grant made b y payment of money to the Borrower shall not be in excess of the difference between the Allotment and the amount paid (not including the amount paid as accrued interest) for the Bonds taken up by the Government. The Government reserves the right to make any part of the Grant by cancel- lation of Bonds or interest coupons or both rather than by payment of :coney if, in the judgment of the Administrator, the Borrower does not need the money to pay. costs incurred in connection with the construction of the Project. S. Grant b� Cancellation of Bonds. If the Borrower, with- in a reasonable time after the completion of the Project, shall have filed a Requisition, satisfactory in form and substance to the Administrator, then the Government will cancel such Bonds and interest coupons as may be selected by the Administrator in an aggregate amount equal (as nearly as may be ) to the difference between 30 per centum of the cost of the labor and materials employed upon the Project and the part of the Grant made by payment of money. The Go:e rnment will hold Bonds or intefest coupons for such reasonable time in an amount sufficient to hermit compliance with provisions of this Paragraph, un- less payment of such difference shall have been otherwise provided for by the Government. 9. Grant Advances. At any time after the execution of this Agreement the :'government may, upon request of the Borrower, if in the judgment of the Administrator the circumstances so warrant, make advances to the Borrower on account of the Grant, but such advances shall not be in excees of 30 Der centum of the cost of the labor and materials to be employed upon the Project, as estimated by the Administrator. 06 COUNCIL CHAM8ERS -- CITY COUNCIL CITY HALL -- CITY OF LODI 10. Deposit of Bond Proceeds and Grant: 3ondFund; Construction Accounts. Tbe $orrower shall deaosit all accrued interest which it receires__?rom the sale of the 3onds at the time of the payment therefor and any payment on account of'the Grant which may be made tinder the provisions of Paragraph 8, hereof, into an inter- est and 'pond retirement fund account (herein called the ".3ond Bund") promptly upon the receipt of such accrued interest or such payment on account of the Grant. It will deposit the remaining proceeds from the sale of the 3onds (whether such 3onds are sold to the Government or other purchasers) and the part of the Grant made by payment of money under the provisions of Paragraph 7, hereof, prompt- ly upon the receipt of such proceeds or payments in a separate account or accounts (eadh of such separate accounts herein called a "Construction Account"), in a bank or banks which are members of the Federal 3eserre System and of the Pederal Deposit Insurance Corp- oration and which shall be satisfactory at all times to the admin- istrator. 11. Disbursement of ,:conies in Construction accounts and In Bond Fund. Tae Borrower s al expend the :conies in a Z_Qnstrnction Account only for such'pu rposes as shall have been previously specified in Requisitions filed with the Goverment and as shall have been approved by the Administrator. Any monies re- maining unexpended in any Construction Account after the coq*pletion of the Project which are not required to meet obligations incurred in connection with the construction of the Project shall either be paid into the Bond Purd, or.said monies shall be used for the purchase of such of the .3onds as are then outstanding at a price not exceeding the principal amount thereof plus accrued interest. Any Bonds sv purchased ah all be cancelled and no additional Bonds shall be issued in lieu thereof. The monies in the 3ond Fund shall be used solely for the purpose of paying interest on and principal of the bonds. 12. Other Financial did from the Go^ernment. If the 3orrower shall receive anyfunds (-o Ee r than those received under this Agreement) directly or indirectly from the Government, or any agency or instrumentality thereof, to aid in financing the construction of the Project, to the extent that such funds so received exceed the part of the Grant which would otherwise be made by payment of money, the aggregate principal amount of Bonds to be purchased by the Govern- ment shall be reduced. 13. Construction of Protect. Not later than upon the receipt by it of the first 3ond payment, the 3orrower will commence or cause to be commenced the constru,tion of the Project, and the Borrower will thereafter continue such construction or cause it to be continued to completion with all practicable dispatch, in an efficient and economical manner, at a reasonable cost and in accord- ance with the nrorisions of this Agreement, plans, drawings, speci- fications and.construction contrad'a which shall be satisfactory to the Administrator, and under such engineering supervision and inspection as the Administrator may re wire. Except with the written consent of the Administrator, nomaterials or equipment of the Project shall be purchased by the 3orrower subject to any chattel mort?age, or any conditional sale or title retention agreement. 14. Construction Work. All work on the Project shall be done subject to the rules and regulations adopted by the Administrator to carry out the purposes and control the administration of the Act. By the act•.of executing this agreement the 3orrower acknowledges receipt of a copy of the rules and regulations set out in Bulletin No. 2 Non--ederal Projects revised March 1, 19;35, entitled "?.W.A. R iUIR^=11TS as to 3IDS, COITTRACTOR'S 3JUDS, dITD C ATTRACT, WAGE AND LA90R 2R. 113IC1;S ZD GRIraAL IN34ROCTIOIaS as to APPLICATIONS AND LO11:S AND GRANTS", and covenants that said rules and regulations, with all blank spaces filled in as provided, in said 3ulletin, will be incorporated verbatim in ALL CONSTRUCTION CON"13ACTS for work on the Project.* — 207 COUNCIL CHAMBERS - - CITY COUNCIL CITY HALL --CITY OF LODI 15. Force Account. All construction work on the Project shall be done under contract, 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 Administrator for permission to do all or any part of the Project on a force account basis. 16. Restriction as to Contractors. The 3orrower shall receive no bid. rom any contractor, nor permit any contractor to receive any bid from any subcontractor, who has not signed U. S. Government Porm No. P.W.A. 61, revised March, 1934. 17. Bonds and Insurance. Construction contracts shall be supported by adequate surety or otter bonds or security satis- factory to the Administrator for the protection of the 3orrower, or materialmen, and of labor emoloyed on the Project or any part thereof. The contractor under any construction contract shall be required to provide public liability insurance in the amount satisfactory to the Administrator. 18. Information. During the construction of the Project the Borrower will furnish to the Government all such information and data as the Administrator may re•,uest as to the construction, cost and progress of the work. The Borrower will furnish to the Govern- ment 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 3orrower as the Administrator or any such purchaser may at any time reasonably require. *Particular care should be taken by the Borrower that in all construction contrYcts the followin¢ words are inserted in the blank space in Paragraph T{e of t ee rules and regulations: "City of Lodi and/or County of San Joaquin and/or County of Calaveras and/or Co.nty of Amador" and the following words are inserted in blank space in Paragraph 3 (a) (2) 63 the rules and regulations: "State of California." 19. Re resentations and Warranties. The Borrower represents and warrants as7- ollows: (a) Litigation. No litigation or other proceedings are now pending or threatened which might adversely affect the Bonds, thesecurity therefor. the construction of the Projoet, or the financial condition of the Borrower: (b) Financial Condition. The character of the assets and the financial condition of the Borrower are as favor- able as at the date of the Borrower's most recent financial statement, furnished to the Government as a past of the Application, and there have been no oranges in the character of such assets or in such financial condition except such changes as are necessary and incidental to the ordinary and usual conduct of the Borrower's affairs; (e) Pees and Commissions. It has not and does not intend to pay any bonus, Yee or commission in order to secure the loan or grant hereunder: (d) Affirmation. Every statement contained in this Agreement, in the application, and in any supplement thereto or amendment thereof, and in any other document submitted to the Gover=ent is correct and complete, and no relevant fact materially affecting the Bonds the security therefor, the Grant or the Project, or the obligations of the Borrower under this Agreement has been omitted therefrom. 'Os COUNCIL CHAMBERS - - CITY COUNCIL CITY HALL - -CITY OF LODI 20. Bond Circular. The 3orrower will furnish all such information in proper form7or the preparation df a Bond Circular and will take all such steps as the Government or any purchaser or purchasers from the Government of not less than 25 per centum of the 3onds may reasonably request to aid in the sale by the Government or such purchaser or p:irchasers of any or all of the Bonds. 21. Expenses. The Government shall be under no oblig- ation to pay any costs, charges or expenses incident to compliance with any of the duties or obligations of the aorrower under this Agreement including, without limiting the generality of the fore- going, the cost of preparing, executinz and delivering the Bonds, and any legal, engineering and accounting costs, charges or expenses incurred by the Borrower. 22. waiver. Any provision of this Agreement may be waived or amended with the consent of the Borrower and the written approval of the administrator, without the execution of a new or supplemental agreement. 23. Interest of Member of Congress. No Member of or Delep-ate to theongr�f the United States of America shall be admitted to any share or part of this Agreement, or to any benefit to arise thereupon. 24. Validation. The Borrower hereby covenants that it will institute, prosecute and carry to c.)mpletion in so far as it may be within the power of the 3orrower, any and all acts and things to be performed or done to secue the enactment of legis- lation or to accomplish such other proceedings, judicial or other- sies, as may be necessary, appropriate or advisable to empower the Borrower to issue the 3onds and to remedy any defects, illegalities and irregularities in the proceedings of the 3orrower relative to the issuance of the Bonds and to validate the same after the issuance thereof to the Government, if in the judgment of.the Administrator such action may be deemed necess.ry, appropriate or advisable. The Borrower further covenants that it will procure and furnish to the Government, as a condition precendent to the Govern- ment's obligetions hereunder a letter from the Governor of the State stating that if in the judgment of the Administrator it may be advis- able to enact legislation to empower the Borrower to issue the -Bonds or to remedy any defects, illegalities or irregularities in the pro- ceedings of the Borrower relative to the issuance thereof or to vali- date tie same, said Governor will recommend and cooperate in the enactment of such legislation. 25. Naming of Project. The Projedt shall never be named except with the written consdnt of the administrator. 26. Insurance on Project. The 3orrowershall, during the life of the Project, maintain proper and adequate insurance thereon. 27. Undue Dela �Z the Borrower. If in the opinion of the Administrator, WhiC? 7h_71 be eonciusive, the 3orrower shall delay for an unreasonable time in carrying out any of the duties or obligations to be performed by it under the terms of this Agreement, the Administrator, may cz-ncel this Agreement. 28. Condit ons Precedent to the Government's Obligations. The Government shall be under no obligation to pay for any of the Bonds or to make any part of the Grant: 209 COUNCIL CHAMBERS - - CITY COUNCIL CITY HALL - - CITY Of LODI (a) Tinancial Condition and iudoet. If, in the judgment of the Admin- is�or, the f nanc= condition of the Borrower shall have changed unfavorably in a material degree from its condition as theretofore represented to the Government, or the Borrower shall have failed to balance its budget satisfactorily or shall have failed to take action reasonably designed to bring the ordinary current expenditures of the Borrower within the prudently estimated revenues thereof; (b) Cost of Pro!,,ect. If the Administrator shall not be satisfied Th—at tTe Borrower will be able to complete the Project for the sum of 4600;000, or that the Borrower will be able to obtain, In a manner satisfactory to the iidministrator. any additional funds which the Administrator shall estimate to be necessary to complete the Project; (c) Compliance. If the Administrator shall not be satisfied that the 3orrower has complied with all the provisions contained in this agreement or in the Proceedings authorizing the issuance of the Bonds, theretofore to be complied with by the Borrower; (d) Lezal Matters. If the Administrator shall not be satisfied as to all legaC. -matters and proceedings affectinz the Bonds, the security therefor or the construction of the Project; (e) Representations. If any representation made by the Borrower in this Agreement or in the Application or in any supplement there- to or amendment thereof, or in any document submitted to the Government b,; the Borrower shall be found by the Administrator to be incorrect or incomplete in any material respect; (f) Maturi-tZ of Bonds Sold to Government. If, in the event that some of t. Winds aresold to purchasers other than the Government. the maturities of the remaining Bonds are not satisfactory to the Administrator. This agreement shall be binding upon the parties hereto when a copy thereof, duly executed by the Borrower and the Government. shall have been received by the Borrower. This Agreement shall be governed by and be contrued in accordance with the laws of the State. If any provision of this Agreement shall be invalid in whole or in part, to the extent 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 obliaations of the parties hereto, provided, however, that in the opinion of the Administrator, the AR_reement does not then violate the terms of the Act. ' IN WITNESS 'WHE3 OP, the Borrower and the Government have respectively caused this Agreement, to be duly executed as of CITY 0:' LODI SEAL: ATTEST: City C1 irk By, Mayor. UNITED STATES 0_ AMERICA 3y Federal Emergency Administrator of Public ;corks