HomeMy WebLinkAboutReso 1990-238 - Resolution ordering sale of bonds S.A.V.I ID
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RESOLUTION NO. 9O
RESOLUTION ORDERING SALE OF BONDS
S.A.V.I. ASSESSMENT DISTRICT NO. 1988-4
The City Council of the City of Redding resolves:
The City Council accepts the offer of Mark Pressman
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Associates (attached to this resolution and by reference
incorporated in it) to purchase all of the improvement bonds to be
I ; issued in S.A.V.I. Assessment District No. 1988-4.
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 ; 1 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 May, 1990.
' AYES• COUNCILMEMBERS Arness, Dahl , Fulton, Moss, Buffum
NOES: COUNCILMEMBERS None
ABSENT: COUNCILMEMBERS None
ETHEL A. NICHOLS, City Clerk,
City of Redding, Shasta County,
II ! California
BY C Z�i,e ;%CierZ
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PURCHASE CONTRACT
(TO BE PROVIDED BY MARK PRESSMAN ASSOCIATES)
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1! 05/15/90 16: 48 V421 0755 MFA SF CA 4-+y CITY OFREDDING 47_ 0C:
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MARK PRESSMAN ASSOCIATES
Investment Banking •
250 Montgomery Street, Suite 1200
San Francisco, CA 94104
FAX (415) 421-0755
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. May 15,1990
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The Honorable City Council
City of Redding
Redding,California 96008 •
i Re: Santa.Ana.Valley Irrigation Assessment District No.19884
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Dear Members of the Council:
MARK FRESSMAN ASSOCIATES (WA), 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 Santa Ana Valley Irrigation Assessment District No. 1988-4 (the
"District").
Amount of Bands $2,554,76155
Foran of Bcm 4c Registered bonds to be issued serially. Bond denominations in multiples of x5,000
or any integral thereof up to$100,000,except that one band may contain any odd
amount_
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Fust 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 $ 9,761.66 2001 $125,000.00
1992 70,000.00 2002 130,000.00
1993 75,000.00 2003 140,000.00
1994 75,000.00 2004 150,000.00
ij 1995 80,000.00 2005 165,000.00
1996 90,000.00 2006 175,000.00
1997 95,000.00 2007 190,000.00
1998 100,000.00 2008 205,000.00
1999 110,000.00 2009 220,000.00
2000 115,000.00 2010 235,000.00
Price: • 97.75%of par value plus accrued interest_
Term: 20 years.
Net Interest Cost 7.847140%
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I .0515/90 16: 49 $421 0755 MPA SF CA 444 CITY OF.REDDING ZOO:.
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it City Cotmcil
City of Redding
May 15,1990
Page Two
li Interest Rates: 1991 6-650% 2001 7.600%
1992 6.700 2002 7.650
II 1993 6.850 2003 7.650
1994 7.000 2004 7.700
1995 7.100 2005 7.000
1996 7.200 2006 7.750
1997 7.300 2007 7750
1998 7.400 2008 7.800
1999 7500 2009 7.800
2000 7.550 2010 7.800
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Date of Bonds and
Closing Date: May 29,1990.
Foreclose 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 re_,c ve fund is less than the Reserve
Requirement as described in.the Resolution Authorizing Issuance of Bonds(the
"Resolution").
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Reserve Fund_ The City shall establish a Reserve Fund in the amount of ten percent
(10.0%)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: 3%of unmattrred principal on thirty(30)days notice to bondholders.
Pig Agent
and Registrar: Bankers Trust Company of California,N.A.,San Francisco, California_
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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.
ll 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
May 15, 1990 relating to the Bonds (the "Draft Official Statement") deemed
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City Council
City of Redding
May 15, 1990
Page Three
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 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
i, 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
! I 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
it
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City Council
City of Redding
May 15, 1990
Page Four
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
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,
! I 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
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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 Closing: To be arranged.
Time of Closing: 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 May 16th, 1990.
Very truly yours,
MARK PRESSMAN ASSOCIATES
Jim D. Hatter
Mark Pressman