HomeMy WebLinkAboutReso 1990-124 - Churn creek extension No. 1 assessment district No. 1989-5 411 111
RESOLUTION NO. 72 -/Ay
RESOLUTION APPROVING PURCHASE CONTRACT
CHURN CREEK ROAD EXTENSION NO. 1
ASSESSMENT DISTRICT NO. 1989-5
The City Council of the City of Redding resolves:
Section 1. Upon the condition set forth in Section 2
below, this City Council approves the Purchase Contract of MARK
PRESSMAN ASSOCIATES (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. 1, Assessment District No.
1989-5, 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 Purchase Contract.
Section 2 . As a condition of this award of sale of bonds,
it shall be the responsibility of MARK PRESSMAN ASSOCIATES to
provide the City with sufficient copies of the Draft Official
Statement and the Final Official Statement to be derived therefrom
to accomplish satisfaction of condition paragraph (a) at pages 2 and
3 of the Purchase Contract attached hereto.
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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
20th day of March, 1990.
AYES: COUNCILMEMBERS Buffum, Fulton, Johannessen, & Carter
NOES: COUNCILMEMBERS None
ABSENT: COUNCILMEMBERS Dahl
ETHEL A. NICHOLS, City Clerk,
City of Redding, Shasta County,
California
BY N�,� L[.V.�%c- ,o'rd
2
•
MARK PRESSMAN ASSOCIATES
Investment Banking
250 Montgomery Street, Suite 1200
San Francisco, CA 94104
FAX: (415) 421-0755
(415) 421-7300
March 20, 1990
The Honorable City Council
City of Redding
Redding, California 96008
Re: Churn Creek Road Extension No.1 Assessment District No.1989-5
Dear Members of the Council:
MARK PRESSMAN ASSOCIATES (MPA), as managing underwriter (the "Underwriter") of the above
referenced issue, hereby offers to purchase all, but not less than all, bonds to be offered by the City of
Redding (the "City") pursuant to the provisions of the Municipal Improvements Act of 1913 and the
Improvement Bond Act of 1915, Division 10 of the California Street and Highways Code to represent the
cost of improvement bonds in the Churn Creek Road Extension No. 1 Assessment District No. 1989-5 (the
"District").
Amount of Bonds: $606,251.93
Form of Bonds: Registered bonds to be issued serially. Bond denominations in multiples of$5,000
or any integral thereof,except that one bond may contain any odd amount.
First Interest Payment
and Maturity Schedule: The first interest payment on the Bonds shall be March 2, 1991, with
principal payments commencing September 2, 1991,and annually thereafter as
specified below:
1991 $ 6,251.93
1992 25,000.00
1993 25,000.00
1994 30,000.00
1995 30,000.00
1996 35,000.00
1997 35,000.00
1998 40,000.00
1999 45,000.00
2000 45,000.00
2001 50,000.00
2002 55,000.00
2003 60,000.00
2004 60,000.00
2005 65,000.00
Price: 97.75%of par value plus accrued interest.
Term: 15 years.
Net Interest Cost: 7.5871%
Mailing Address: P.O. Box 26690, San Francisco, CA 94126
•
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City Council
City of Redding
March 20, 1990
Page Two
Interest Rates: 1991 6.25% 1999 7.20%
1992 6.35 2000 7.30
1993 6.50 2001 7.40
1994 6.75 2002 7.50
1995 6.90 2003 7.50
1996 7.00 2004 7.60
1997 7.00 2005 7.60
1998 7.10
Date of Bonds and
Delivery Date: March 28, 1990.
Foreclosure Clause: 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 as described in the Resolution Authorizing Issuance of Bonds(the
"Resolution").
Reserve Fund: The City shall establish a Reserve Fund in the amount of seven and one-half percent
(7.50%)of the bond par value. In our view,it is reasonably required for this issue,
and vital to the marketing of the Bonds, that proceeds from the investment of
monies in said reserve fund should be retained in said fund until the amount in said
fund reaches the maximum allowed by law and earnings above that amount will be
credited to the Redemption Fund to be applied to debt service.
Redemption Premium: 5%of unmatured principal on thirty(30)days notice to bondholders.
Paying Agent .
and Registrar. Bank of America, San Francisco, California.
No Litigation: A no litigation certificate of the City shall accompany the Bonds at delivery.
Legal Opinion: The opinion of Sturgis, Ness, Brunsell & Sperry, Emeryville, California,
without qualification and without expense to the Underwriter as to the legality of
the proceedings leading to the issuance of the Bonds and as to the federal and state
tax status of the Bonds. Such opinion,dated as of the Closing Date,to be printed on.
the Bonds when issued.
Conditions Precedent: The obligation of the Underwriter to accept delivery of and pay for the Bonds
on the Closing Date shall be subject, at the option of the Underwriter, to the
following additional conditions:
(a) The City shall have delivered or caused to have been delivered to the Underwriter
prior to the execution of this Purchase Contract or the first sale of the Bonds,
whichever first occurs, copies of the Draft Official Statement dated March 20, 1990
relating to the Bonds (the "Draft Official Statement") deemed final by the City for
purposes of Rule 15c2-12 under the Securities Exchange Act of 1934 (the "Rule")and
to satisfy Municipal Securities Rulemaking Board (the "MSRB") Rule
• •
City Council
City of Redding
March 20, 1990
Page Three
G-32 or any other rules adopted by the MSRB, and approved for distribution by
resolution of the City. Within seven business days from the date hereof, the City
shall deliver to the Underwriter a final Official Statement, executed on behalf of
the City by an authorized representative of the City and dated the date of delivery
thereof to the Underwriter, which shall include information permitted to be
omitted by paragraph (b)(1) of the Rule and with such other amendments or
supplements as shall have been approved by the City and the Underwriter (the
"Official Statement"). The Draft Official Statement and the Official Statement,
including the cover pages, the appendices thereto and all information incorporated
therein by reference are hereinafter referred collectively to as the "Official
Statement." The Underwriter agrees that it will not confirm the sale of any Bonds
unless the confirmation of sale is accompanied or preceded by the delivery of a copy
of the Official Statement.
(b) The Resolution shall be in full force and effect, and shall not have been amended,
modified or supplemented except as may have been agreed in writing by the
Underwriter, and there shall have been taken in connection therewith, with the
issuance of the Bonds and with the transactions contemplated thereby and by this
Purchase Contract, all such actions as, in the opinion of Sturgis, Ness, Brunsell &
Sperry, Emeryville, California, Bond Counsel for the City, shall be necessary and
appropriate;
(c) Between the date hereof and the closing date, the market price or marketability of
the Bonds at the initial offering prices set forth in the Official Statement shall not
have been adversely affected in a material way, in the judgment of the
Underwriter (evidenced by a written notice to the City terminating the obligation
of the Underwriter to accept delivery of and pay for the Bonds)by reason of any of
the following:
(1) Legislation enacted (or resolution passed) by the Congress of the United
States of America or a decision rendered by a court established under
Article III of the Constitution of the United States of America or by the
Tax Court of the United States of America,or an order, ruling, regulation
(final, temporary or proposed),press release or other form of notice issued
or made by or on behalf of the Treasury Department or the Internal
Revenue Service of the United States of America, with the purpose or
effect, directly or indirectly, of imposing federal income taxation upon
the interest as would be received by the owners of the Bonds;
(2) Legislation enacted (or resolution passed) by the Congress of the United
States of America,or an order,decree or injunction issued by any court of
competent jurisdiction or an order, ruling,regulation (final, temporary or
proposed), press release or other form of notice issued or made by or on
behalf of the Securities and Exchange Commission, or any other
governmental agency having jurisdiction of the subject matter, to the
effect that obligations of the general character of the Bonds, or the
Bonds,including any or all underlying arrangements,are not exempt from
registration under or other requirements of the Securities Act of 1933, as
amended, or that the Resolution is not exempt from qualification under or
other requirements of the Trust Indenture Act of 1939,as amended,or that
• •
City Council
City of Redding
March 20, 1990
Page flour
the issuance,offering or sale of obligations of the general character of the
Bonds,or of the Bonds, including any or all underwriting arrangements,as
contemplated hereby or by the Official Statement or otherwise is, or
would be, in violation of the federal securities laws as amended and then
in effect;
(3) Any amendment to the Federal or California Constitution or action by any
Federal or California court, legislative body, or other authority
materially adversely affecting the tax status of the City, its property,
income, securities (or interest thereon), validity or enforceability of the
assessment or the ability of the City to construct or acquire the
improvements as contemplated by the Resolution and the Official
Statement;
(4) Any event occurring,or information becoming known which,in the judgment
of the Underwriter makes untrue or misleading in any material respect any
statement or information contained in the Official Statement concerning
the City, the improvement project, the landowners, or the property
assessed;or
(5) Any calamitous act of God such as flooding, land movement, or other
which directly or indirectly affects the value of the property assessed
and/or the security of the Bonds.
Limited Obligation: The Bonds shall be "limited obligations"of the City,pursuant to section 8769(b)of
the California Streets and Highway Code, secured only by the property assessed in
these proceedings with no City financial responsibility for bond debt service.
City Covenant: The City shall covenant in the Resolution to take any action within its powers to
maintain the tax-exempt status of the Bonds.
Place of Delivery: To be arranged.
Time of Delivery: Not later than 48 hours after the City notifies the undersigned that the Bonds are
ready for delivery. If the subject Bonds are not available for delivery by 5:00 p.m.on
the aforementioned delivery date, the Underwriter reserves the right to renegotiate
the price and/or the rate of interest.
Expiration: This offer expires at noon on March 21st,1990,
Very truly yours,
MRK PRESSM • •1, /I
- •. • TES
.
im D. Hatter
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ichael B. Lynch