HomeMy WebLinkAboutReso. 1985 - 021 - Resolution Ordering sale of bonds ridgewood road sewer assessment district no. 1984-1 RESOLUTION NO.
RESOLUTION ORDERING SALE OF BONDS
Ridgewood Sewer Assessment District No. 1984-1
The City Council of the City of Redding resolves:
The City Council accepts the offer of M. L. Stern and
Company (attached to this resolution and by reference incorporated
in it) , to purchase all of the improvement bonds to be issued in
Ridgewood Sewer Assessment District No. 1984-1, 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
21st day of January, 1985 .
Demsher, Fulton, Gard, & Kirkpatrick
AYES: Councilmembers
None
NOES: Councilmembers
ABSENT: Councilmembers Pugh
ETHEL A. NICHOLS , City Clerk ,
City of Redding, Shasta County, California
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MUNICIPAL BONDS ,
January 21 , 1985
City Council
City of Redding
City Hall
760 Parkview Avenue
Redding, CA 96001
Dear Council Members,
For not to exceed $881 , 581 . 48 par value legally issued R
Improvement Bonds , City of Redding , Assessment District No .
1984-2 (Ridgewood Sewer Lateral Assessment District) , dated
February 2, 1985, and maturing serially from July 2, 1986, to
July 2 , 2000, subject to all of the terms and conditions
following , we will pay ninety-five percent (95 . 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 approximate amounts shown below:
INTEREST PRINCIPAL INTEREST PRINCIPAL
YEAR RATE AMOUNT YEAR RATE AMOUNT
1986 7 . 50% $ 6, 581 . 48 1993 9. 50% $ 55, 000
1987 8. 00 30, 000 1994 9. 75 60, 000
1988 8. 25 35 , 000 1995 10.00 65 , 000
1989 8. 50 40 , 000 1996 10. 10 75, 000
1990 8. 75 40, 000 1997 10. 20 80, 000
1991 9. 00 45 , 000 1998 10.30 90, 000
1992 9. 25 50, 000 1999 10. 40 100, 000
2000 10. 40 110, 000
Said bonds shall be in the denomination of $5 , 000 each,
except there may be one bond, due July 2 , 1986, in an odd
denomination.
8350 Wilshire Boulevard, Beverly Hills,California 90211 (213) 650-4001
Branch Offices: Carmel,San Diego, Sacramento Member: NASD,SIPC
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Page Two
City of Redding
January 21 , 1985
This bid is made for acceptance by the City Council on January 21 , 1985
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 February 14,
1985. 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 January 2 , or July 2 , prior
to its fixed maturity date , at the option of the Treasurer of the City ,
upon giving 60 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 five percent (5%) 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
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 ten percent (10. 00%)
of the bonds issued for these proceedings . The Special Reserve Fund
shall be administered and payments shall be made , all as
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Page Three
City of Redding
January 21 , 1985
authorized under the provisions of the Improvement bond Act of 1915.
E) 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.
F) 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 agency
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 in in use in the performance of any public
function.
G) We estimate the total interest cost , including discount, to
be $959 , 955. 23, a net interest cost of 10. 4868%.
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.
fil7 ' 4°F
Paul H. White
Senior Vice President
The foregoing proposal is hereby accepted on behalf of the City of
of Redding. /I f/ �
DATE / / AUTHORIZED SIGNATURE L1 , )`'L'i t-C/14
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