HomeMy WebLinkAboutReso. 1988-094 - Resolution ordering sale of bonds huntington drive/debbie lane water assessment district no. 1987-3 111 i
RESOLUTION NO. u g ly
RESOLUTION ORDERING SALE OF BONDS
HUNTINGTON DRIVE/DEBBIE LANE WATER
ASSESSMENT DISTRICT NO. 1987-3
The City Council of the City of Redding resolves:
The City Council accepts the offer of M. L. Stern & Co. ,
Inc. , (attached to this resolution and by reference incorporated in
it) to purchase all of the improvement bonds to be issued in
Huntington Drive/Debbie Lane Water Assessment District No. 1987-3 ,
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 the 1st
day of March, 1988.
AYES: Councilmembers Carter , Fulton , Gard , Johannessen , & Dahl
NOES: Councilmembers None
ABSENT: Councilmembers None
ETHEL A. NICHOLS, City Clerk, City of
Redding, Shasta County, California
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BY Q.
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INVESTMENT SECURITIES
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March 1, 1988
City Council
City of Redding
City Hall
760 Parkview Avenue
Redding, CA 96001
Dear Council Members,
For not to exceed $209, 870. 11 par value legally issued
Improvement Bonds, City of Redding, Huntington Drive/Debbie . i
Lane Water Assessment District No. 1987-3 , dated March 15,
1988, and maturing serially from September 2, 1989, to
September 2, 2003, subject to all of the terms and conditions
following, we will pay ninety-seven percent (97. 00%) 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 below:
INTEREST PRINCIPAL INTEREST PRINCIPAL
YEAR RATE AMOUNT YEAR RATE AMOUNT
1989 5. 25% $ 4,870. 11 1997 7.40% $15, 000
1990 5.75 10, 000 1998 7.50 15, 000
1991 6. 00 10, 000 1999 7. 60 15, 000
1992 6. 25 10, 000 2000 7.70 20, 000 , ,,
1993 6.50 10, 000 2001 7. 75 20, 000 '
1994 6.75 10, 000 2002 7.75 20, 000
1995 7. 00 10, 000 2003 7 . 75 25, 000
1996 7.25 15, 000
Said bonds shall be in the denominations of $5, 000 or any
integral multiple thereof, except for the bond due in 1989,
which shall be in the principal amount as shown above.
8350 Wilshire Boulevard, Beverly Hills,California 90211 (213) 650-4001
Branch Offices:Carmel,San Diego, Sacramento Member:NASD,SIPC
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March 1, 1988 Page Two
City of Redding
This bid is made for acceptance by the City Council on March 1, 1988,
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 March 15, 1988.
If the bonds are not tendered for delivery to us accompanied by said
approving legal opinion within the time stated in this proposal, we
shall have the right, at our option, to cancel this contract of
purchase. However, by mutual agreement, the time for delivery may be
extended.
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 Municipal 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 Treasurer of the
City, 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%) of the
principal amount thereof.
C) In the event of any delinquency in the payment of any
installment of an unpaid assessment, the City must order institution of
an action in the Superior Court of the State of California to foreclose
the lien of such unpaid assessment, as authorized by Part 14, Division
10 of the Streets and Highways Code of the State of California. In
such action, the real properties subject to the unpaid assessment may
be sold at judicial foreclosure. The City has determined to authorize
judicial foreclosure in lieu of tax sale and the five-year redemption
period within 150 days following the date of such a delinquency.
D) A Special Reserve Fund will be created to provide available
funds from which the City can advance and make payment on the amount of
any delinquent assessments levied for these proceedings. Payments from
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March 1, 1988 Page Three
City of Redding
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. The
Special Reserve Fund shall be in amount equal. to five percent (5. 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 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 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 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 agent,
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.
H) We estimate the total interest cost, including discount, to
be $163 , 088. 60, a net interest rate of 7. 7764%.
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March 1, 1988 Page Four
City of Redding
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.
/11.(
White
Senior Vice President
The foregoing proposal is hereby accepted on behalf of the City of
Redding.
(21q; °6111-t
DATEZ -'Ji( /9gY AUTHORIZED SIGNATURE