HomeMy WebLinkAboutReso 93-434 - Awarding Sale of Bonds to M.L. Stern & Co. (Shasta View Ext Assessment Dist No 1990-2, Ph 2) RESOLUTION NO. 93
RESOLUTION AWARDING SALE OF BONDS
TO M.L. STERN & CO.
(Shasta View Extension Assessment District No. 1990-2 - Phase II)
The City Council of the City of Redding resolves:
WHEREAS, the City Council accepts the offer of M.L. .
Stern & Co. , dated , 1993 (attached to this resolution
and by reference incorporated in it) to purchase all of the
Series 1990-2B improvement bonds to be issued in Shasta View
Extension Assessment District No. 1990-2 (Phase II) , City of
Redding, Shasta County, California.
NOW THEREFORE BE IT RESOLVED AND ORDERED, the City
Council directs the sale and delivery of the bonds to the offeror
in accordance with the terms and conditions stated in the offer.
I HEREBY CERTIFY that the foregoing resolution was duly
and regularly adopted by the City Council of the City of Redding,
Shasta County, California, at a regular meeting thereof, held on
the 21st day of December, 1993 .
AYES: Councilmembers: Anderson, Kehoe, Moss and Arness
NOES: Councilmembers: None
ABSENT: Councilmembers: Dahl
CONNIE STROHMAYER,
City Clerk, City of Redding,
Shas a County, California
By,4,, c.
{
SF2-25055.1
INVESTMENT SECURITIES
BOND PURCHASE AGREEMENT
December 21, 1993
City Council
City of Redding
760 Parkview Avenue
Redding, CA 96001
Dear Council Members,
For not to exceed $165,000.00 par value legally issued Improvement Bonds, City of
Redding, Shasta View Extension Assessment District No. 1990-2, Series 1990-2B, dated
January 5, 1994, and maturing serially from September 2, 1995, to September 2, 2011,
inclusive, subject to all of the terms and conditions following, we will pay ninety seven and
one-half percent (97.50%) of the par value thereof with accrued interest to the date of
delivery, if any, for bonds bearing interest at the rates and maturing in the amounts shown
in Exhibit A herewith attached and considered a part of this Purchase Contract.
Said bonds shall be in the denominations of$1,000 or integral multiples thereof.
This bid is made for acceptance by the City of Redding on December 21, 1993, and is
subject to the unqualified approving legal opinion of Orrick, Herrington & Sutcliffe, to be
furnished to us at your expense. Said legal opinion is to be printed on the bonds at your
expense.
Delivery of these bonds is to be made to us on or about January 5, 1994. If the bonds are
not tendered for delivery to us accompanied by said approving legal opinion by January 5,
1994, we shall have the right, at our option, to cancel this bond Purchase Contract.
However, by mutual agreement, the time for delivery may be extended.
8350 Wilshire Boulevard, Beverly Hills, California 90211-9972 (213) 658-4400
Branch Offices: Carmel, San Diego, Sacramento Member: NASD, SIPC
RED902B/12116/93/REV.I
City of Redding Page Two
December 21, 1993
This bid is also made subject to the following terms and conditions:
A) The bonds to be sold will be secured by unpaid assessments levied upon private property
within said Assessment District, and authorized by proceedings taken pursuant to the Municipal
Improvement Act of 1913 (Division 12 of the Streets and Highways Code of the State of
California), and are to be issued pursuant to the provisions,of the Improvement Bond Act of 1915
(Division 10 of said Code). Proceeds from the sale of the bonds will be used to pay the costs of
the Improvement Project as authorized by said proceedings.
B) Any bond may be redeemed on any March 2, or September 2, prior to its fixed maturity date,
at the option of the City Treasurer, upon giving 30 days prior notice, and upon the payment of
the principal amount thereof and interest accrued thereon to the date of redemption, plus a
redemption premium of three percent(3.00%) of the principal amount thereof
C) No later than October 1 in any year, the City shall file an action in the Superior Court to
foreclose the lien of each delinquent assessment if the sum of uncured assessment delinquencies
for the preceding fiscal year exceeds five percent (5%) of the assessment installments posted to
the tax roll for that fiscal year, and if the amount of the special reserve fund is less than the
Reserve Requirement.
D) A Special Reserve Fund will be created to provide available funds from which the City of
Redding can advance and make payment on the amount of any delinquent assessments levied for
these proceedings. Payments from the Reserve Fund shall be an advance to be reimbursed from
the proceeds of redemption or sale of the properties with respect to which payment has been
made. The Special Reserve Account shall be maintained as a separate trust account distinct from
all other funds of the City of Redding. The Special Reserve Fund shall be in amount equal to
seven percent (7.00%) of the bonds issued for these proceedings. The Special Reserve Fund shall
be administered and payments shall be made, all as authorized under the provisions of the
Improvement bond Act of 1915.
E) If a delinquency occurs in the payment of any assessment installment, the City of Redding
will have a duty only to transfer into the Redemption Fund the amount of the delinquency out of
the Reserve Fund. This duty on the part of the City of Redding shall be continuous during the
period of the delinquency, only to the extent of funds available from the Reserve Fund, until
reinstatement, redemption, or sale of the delinquent property.
F) At the time of payment for and delivery of the bonds, the City of Redding will furnish a
certificate that there is no litigation threatened or pending affecting the validity of the bonds or
the legality of the assessment.
INVESTMENT SECURITIES
City of Redding Page Three
December 21, 1993
G) There shall be no bonds issued secured by unpaid assessments levied upon any lot or parcel of
land belonging to the United States, or to the State of California, or to any county, city, public
agency mandatory of the government, school board, educational, penal or reform institution or
institution for the feeble-minded or the insane, whether such lot or parcel of land is in use in the
performance of any public function.
I) We estimate the total interest cost, including discount, to be $116,403.56, a net interest rate of
6.39%.
This proposal is submitted in duplicate, one copy of which is to be officially signed and returned
to us.
Very truly yours,
M.L. STERN & CO. INC.
11.ek
Paul H. White
Executive Vice President
The foregoing proposal is hereby accepted on behalf of the City of Redding.
�o 21 DATE � AUTHORIZED SIGNATURE /K_
INVESTMENT SECURITIES
EXHIBIT A
CITY OF REDDING, CALIFORNIA
SHASTA VIEW EXTENSION ASSESSMENT DISTRICT NO. 1990-2, SERIES 1990-211
INTEREST PRINCIPAL
YEAR RATE AMOUNT
1995 4.00% $6,000
1996 4.50 $6,000
1997 4.75 $7,000
1998 5.00 $7,000
1999 5.25 $7,000
2000 5.50 $8,000
2001 5.70 $8,000
2002 5.80 $9,000
2003 5.90 $9,000
2004 6.00 $10,000
2005 6.10 $10,000
2006 6.20 $11,000
2007 6.30 $12,000
2008 6.40 $13,000
2009 6.45 $13,000
2010 6.50 $14,000
2011 6.50 $15,000
Exhibit A is hereby accepted on behalf of the City of Redding.
DATE 93 AUTHORIZED SIGNATURE c
INVESTMENT SECURITIES