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Home My WebLink AboutReso. 1989-447 - Palisades sewer assessment district no. 1989-2 • RESOLUTION NO. 5:1 : 7 RESOLUTION ORDERING SALE OF BONDS PALISADES SEWER ASSESSMENT DISTRICT NO. 1989-2 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 improvement bonds to be issued in Palisades Sewer Assessment District No. 1989-2 , City of Redding, County of Shasta, State of 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 the 5th day of December, 1989. AYES: COUNCILMEMBERS Buffum, Dahl , Fulton, Johannessen, & Carter NOES: COUNCILMEMBERS None • I ABSENT: COUNCILMEMBERS None ETHEL A. NICHOLS, City Clerk, City of Redding, Shasta County, California ��/f!' / B C�d��X Ee/ t Y by Connie Strohmayer. ' sistant '<‘ Z r • •OFFER OF MARK PRESSMAN ASSOCIATES (to come) 12/05/89 17:02 0421 0755 MPA SF CA +4VITY OF RIDDING X002 • • • MARK PRESSMAN ASSOCIATES • Int Bankins 250 Montgomery Sara, Suite 1200 San Francisco, CA 94104 • FAX:(1D_421-0755 (415M-7300 v,lr December 5,1989 • The Honorable City Council �of Redding dfrrniaCalifo 96008 • Re: Palisades Sewer Assessment District No.1989-2 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 Act of 1915,Division 10 of the California Street and Highways Code to represent the cost of improvement bonds in Palisades Sewer Assessment District No.1989-2(the"District"). AmotmtofBonds: $980,794.94 Fa=ofBond= Registered bonds to be issued serially. Bond denorninatinns of$5,000 to •$100,000,except for ane Band in an odd axnownt due in 1991. • First Interest Payment and Approximate Maturity Schedule The first interest payment on the Bonds shall be March 2,1991,with principal payments commuting September 2,1991,and annually thereafter as • specified below: 1991 $ 794.94 1999 $ 70,000 1992 40,000 2000 75,000 1993 45,000 2001 80,000 1994 50,000 2002 85,000 • 1995 55,000 2003 95,000 1996 55,000 2009E 100,000 1997 • 60,000 2005 105,000 1998 65,000 . Price: 98-00%of par value phss accrued interest. • • • Tema 15 years. • • • Council City of Redding December 5,1989 Page Two Net Interest Cost 7.736% Interest Rates: 1991 6.40% 1999 7.40% 1992 6.60 2000 730 1993 6.80 2001 7.60 1994 6.90 2002 7.70 1995 7.00 2003 7.75 1996 7.10 2004 7,73 1997 7.20 2005 7.75 1998 730 Date of Bonds and • Delivery Date: December 20,1989. 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 Reserve Fand: 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 win be credited to the Redemption Fund to be applied to debt service. Redemption Premium: 5%of=matured principal on thirty(30)days notice to bondholders. • Paying Agent and Registrar: Bank of America, San Frandsco, California. No Litigation: Ano 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 to be printed on the Bonds. II I • 11111 City Council City of Redding December 5, 1989 Page Three 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 Resolution and any other applicable agreements 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; (b) 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 Offering Statement shall not have been materially adversely affected, 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 passes) by the Congress of the United States of America of 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 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 Offering Statement or otherwise is, or would be, in violation of the federal securities laws as amended and then ' in effect; li • • City Council City of Redding December 5, 1989 Page Four (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 Offering Statement; or (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 Offering Statement concerning the City, the improvement project, the landowners, or the property assessed. (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,secured only by the property assessed in these proceedings with no City financial responsibility for bond debt service. City Covenant: The City shall covenant 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 delivered 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 December 6th, 1989. Very truly yours, MARK PRESSMAN ASSOCIATES (MPA) D. Hatter Inve ent Banker r � Mark Pressman JDH:lc it