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HomeMy WebLinkAboutReso 91-139 - Resolution ordering sale of bonds - Churn Creek Rd Extension No. 2, assessment Dist No 1990-5 RESOLUTION NO. gZ- Z 9 RESOLUTION ORDERING SALE OF BONDS CHURN CREEK ROAD EXTENSION NO. 2, ASSESSMENT DISTRICT NO. 1990-5 The City Council of the City of Redding resolves: The City Council accepts the offer of M.L. Stern & Co. (attached to this resolution and by reference incorporated in it) to purchase all of the improvement bonds to be issued in Churn Creek Road Extension No. 2, Assessment District No. 1990-5. 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 I HEREBY CERTIFY that the foregoing resolution was duly and j regularly adopted by the City Council of the City of Redding, Shasta County, California, at a regular meeting thereof, held on the 2nd day of April, 1991. AYES: COUNCILMEMBERS Arness, Dahl, Fulton, Moss & Buffum NOES: COUNCILMEMBERS None ABSENT: COUNCILMEMBERS None ETHEL A. NICHOLS, City Clerk, J City of Redding, Shasta County, J California y� By I ORIGINAL IlVVESTMENT SECUR=S,., BOND PURCHASE AGREEMENT April 2, 1991 City Council City of Redding 760 Parkview Avenue Redding, CA 96001 Dear Council Members, For not to exceed $269,560.51 par value legally issued Improvement Bonds, City of Redding, Chum Creek Road Extension No. 2 Assessment District No. 1990-5, dated April 18, 1991, and maturing serially from September 2, 1992, to September 2, 2006, 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, 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 April 2, 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 April 18, 1991. If the bonds are not tendered for delivery to us accompanied by said approving legal opinion by April 18, 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 1 Branch Offices:Carmel,San Diego, Sacramento Member:NASD,SIPC City of Redding Page Two April 2, 1991 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 unici al 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) Not later than October 1 in any year, the City shall file an action in the Superior a Court to foreclose the lien of each delinquent assessment if the sum of uncured assessment delinquencies for thepreceding 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. 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 a&ency 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 City of Redding Page Three April 2, 1991 H) We estimate the total interest cost, including discount, to be $ 210,457.19 a net interest rate of 7.987303 %. 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. i aul i e Senior Vice President The foregoing proposal is hereby accepted on behalf of the City of Redding. , DATE ,2 AUTHORIZED SIGNATURE 1 INVESTMENT SECURITIES i EXHIBIT A CITY OF REDDING, CALIFORNIA CHURN CREEK ROAD EXTENSION NO. 2 j ASSESSMENT DISTRICT NO. 1990-5 INTEREST PRINCIPAL YEAR RATE AMOUNT 1992 6.00 % $ 9,560.51 1993 6.25 10,00). )� 1994 6.50 10,000.00 1995 6.75 15,000.00 1996 7.00 15,000.00 1997 7.20 15,000.00 1998 7.40 15,000.00 1999 7.60 15,000.00 2000 7.70 20,000.00 2001 7.75 20,000.00 2002 7.80 20,000.00 2003 7.85 25,000.00 2004 7.90 25,000.00 2005 8.00 25,000.00 2006 8.00 30,000.00 I Exhibit A is hereby accepted on behalf of the City of Redd' DATE AUTHORIZED SIGNATURE i I INVESTMENT SECURITIES