HomeMy WebLinkAboutReso 91-055 - Reso approving Bond Purchase Agreement - College Highlands Assessment Dist No 1989-4 i
RESOLUTION NO.
RESOLUTION APPROVING BOND PURCHASE AGREEMENT I
COLLEGE HIGHLANDS ASSESSMENT DISTRICT NO. 1989-4 /
The City Council of the City of Redding resolves:
The City Council approves the Bond Purchase Agreement of
M.L. Stern & Co. , Inc. (attached to this resolution and by
reference incorporated in it) to purchase all of the Series B
improvement bonds to be issued in College Highlands Assessment
District No. 1989-4, City of Redding, Shasta County, California.
The City Council directs the sale and delivery of the bonds
to the offeror in accordance with the terms and conditions stated
in the Bond Purchase Agreement.
The Mayor is authorized to sign the Bond Purchase Agreement.
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 15th day of January, 1991.
AYES: COUNCILMEMBERS Arness, Dahl , Fulton, Moss & Buffum
NOES: COUNCILMEMBERS None
ABSENT: COUNCILMEMBERS None
t
ETHEL A. NICHOLS, City Clerk,
City of Redding, Shasta County,
! California
By
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INVE TMENT SECURTI'IES
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BOND PURCHASE AGREEMENT
January 15, 1991
City Council
City of Redding
760 Parkview Avenue
Redding, CA 96001
Dear Council Members,
For not to exceed $686,795.43 par value legally issued Improvement Bonds, City of
Redding, College Highlands Assessment District No. 1989-4, Series B, dated January
22, 1991, and maturing serially from September 2, 1992, to September 2, 2005,
inclusive, subject to all of the terms and conditions following, we will pay ninety eight
percent (98.00%) of the par value thereof with accrued interest to the date of
delivery, 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 denomination of $5,000 or any integral multiple thereof,
except for one bond, due September 2, 1992, which will include the amount by which
the principal amount of the issue exceeds the largest integral multiple of $5,000
contained therein.
This bid is made for acceptance by the City of Redding on January 15, 1991, and is
subject to the unqualified approving legal opinion of Sturgis, Ness, Brunsell & Sperry,
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 22, 1991. If the
bonds are not tendered for delivery to us accompanied by said approving legal
opinion by January 22, 1991, 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 (213) 650-4001
Branch Offices:Carmel,San Diego. Sacramento Member:NASD,SIPC
City of Redding Page Two
January 15, 1991
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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
y 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.
a C) Not 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 nine percent (9.00%) 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.
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 feebleminded or the insane, whether such lot or parcel of land is
in use in the performance of any public function.
INVESTMENT SECURITIES
a City of Redding Page Three
January 15, 1991
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H) We estimate the total interest cost, including discount, to be $ 535,440.32 , a
net interest rate of 8.166 %.
This proposal is submitted in duplicate, one copy of which is to be officially signed and returned
to us.
Very truly yours,
M.L. RN & CO. INC.
aWit
Senior Vice President
The foregoing proposal is hereby accepted on behalf of the City of Redding.
DATE 1/15/91 AUTHORIZED SIGNATURE 'A" el 17 a-11A Q
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INVESTMENT SECURITIES
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EXHIBIT A
CITY OF REDDING, CALIFORNIA
COLLEGE HIGHLANDS ASSESSMENT DISTRICT NO. 1989-4, SERIES B
INTEREST PRINCIPAL
YEAR RATE AMOUNT
1992 6.50 % $ 6,795.43
1993 .70 35,000.00
1994 6.90 35,000.00
1995 7. 10 35,000.00
1996 7.30 40,000.00
1997 7.50 45,000.00
1998 7.70 45,000.00
1999 7.90 50,000.00
2000 8.00 55,000.00
2001 8.00 60,000.00
+ 2002 8. 10 60,000.00
2003 8. 10 65,000.00
0_00
2004 8.20 75,nnn_nn
2005 8.20 80,000.00
Exhibit A is hereby accepted on behalf of the City of RAcy
DATE 1/15/91 AUTHORIZED SIGNATURE
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INVESTMENT SECURITIES