HomeMy WebLinkAboutReso 1990-284 - Ordering sale of series a bonds college highlands assessment district No. 1989-4 • •
RESOLUTION NO. 90 .,01 45t7
RESOLUTION ORDERING SALE OF SERIES A BONDS
COLLEGE HIGHLANDS ASSESSMENT DISTRICT NO. 1989-4
The City Council of the City of Redding resolves:
The City Council accepts the offer of Mark Pressman
Associates (attached to this resolution and by reference
incorporated in it) to purchase all of the Series A 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 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
i the 5th day of June, 1990.
AYES: COUNCILMEMBERS Arness, Dahl , Fulton, Moss & Buffum
NOES: COUNCILMEMBERS None
ABSENT: COUNCILMEMBERS None
ETHEL A. NICHOLS, City Clerk,
City of Redding, Shasta County,
California
BY c I /,0
Ethel A. Nichols, City Clerk
el ID P I
•. s� "5,+�:� �X43 5 'i`uaa
OIRK PRESSMAN ASSOCIATE
0
Investment Banking
250 Montgomery Street, Suite 1200
San Francisco, CA 94104
FAX: (415) 421-0755
(415) 421-7300
1PP
June 5,1990
The Honorable City Council
City of Redding
1, Redding, California 96008
Re: College Highlands Assessment District No.1989-4,Series A
I,I!
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 College Highlands Assessment District No. 1989-4, Series A (the
"District").
I+ Amount of Bonds: $744,817.65
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 $ 19,817.65
1992 30,000.00
1993 35,000.00
1994 35,000.00
1995 40,000.00
1996 40,000.00
1997 45,000.00
1998 45,000.00
1999 50,000.00
2000 55,000.00
2001 60,000.00
12002 65,000.00
2003 70,000.00
2004 75,000.00
2005 80,000.00
Price: 14\;'r-.-7-5-070,of par value plus accrued interest.
Term: 15 years.
Pr.,
Net Interest Cost: S�V %
Mailing Address: P.O. Box 26690, San Francisco, CA 94126
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City of Redding
June 5,1990
Page Two
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9
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.11 Interest Rates: 1991 (0-S� % 1999 7' '15� %
1992 (c=? ' 2000 7'3-r
1993 6,'70 2001 7,410
11 1994 k), 27 2002 7,4/6--
1995
,"/S--1995 a',90 2003 755
1996 7" 2004 7,6'e'
1997 7,/i7 2005 7")
1998 7/
Date of Bonds and
Closing Date: 2'D 1990.
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1,1
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
1 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").
I: Reserve Fund: The City shall establish a Reserve Fund in the amount of nine percent(9.0%)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 unmatured principal on thirty(30)days notice to bondholders.
Paying Agent
and Registrar: Bankers Trust Company of California, N.A., 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
June 5, 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 G-32 or any other rules adopted by the MSRB, and approved for
i 1
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City of Redding
June 5,1990
Page Three
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
gu
(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
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
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City of Redding
June 5,1990
Page Four
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.
Issuance of Parity Bonds: The City shall covenant that any additional bonds (Series B bonds) on a parity with
the Series A Bonds shall not be issued unless an appraisal acceptable to the
Underwriter indicates that the total bonds to be outstanding(the Series A Bonds plus
any additional Series B bonds)does not exceed 35%of the current appraised value of
property securing said bonds.
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.
li
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 June 6th,1990.
Very truly yours,
! ARK PRE . • �eCIATES
i�` I ;7E ,)
/ " `,/
I; Jim D. Hatter
Michael B. Lyn
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