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HomeMy WebLinkAboutReso. 1984 - 055 - Resolution authrorizing issuance of bonds cedars road sewer assessment district no. 1983-6 • 4 ORIGIN L RESOLUTION NO. JW-',53- RESOLUTION AUTHORIZING ISSUANCE OF BONDS CEDARS ROAD SEWER ASSESSMENT DISTRICT NO. 1983-6 The City Council of the City of Redding resolves: Section 1. RECITALS. On January 16 , 1984 , the City Council of the City of Redding adopted its resolution of intention to order improvements in Cedars Road Sewer Assessment District No. 1983-6 under the provisions of the Municipal Improvement Act of 1913 (the "Act" ) . Proceedings taken under the Act led to the levy of a special assessment by the City Council against parcels of land within the assessment district in the total amount of not to exceed $17 ,401.76 . These assessments were recorded in the office of the County Recorder of the County of Shasta on February 23 , 1984 , under Recorder ' s Serial No. 5605 and thereupon became a lien on each parcel assessed. The period within which parcel owners might pay their assessments in cash without interest will expire on March 26 , 1984 , and the amount of unpaid assessments will be determined at that time. Section 2 . ISSUANCE OF BONDS . The City Council hereby authorizes the issuance of improvement bonds under the provisions of the Improvement Bond Act of 1915 to represent unpaid assessments. The bonds shall be designated, "Improvement Bonds, Cedars Road Sewer Assessment District No. 1983-6 , City of Redding, Alameda County, California. Bonds shall be issued in denominations of $500 or integral multiples thereof, and shall be dated April 2, 1984. Bonds bear interest at a rate of 10 . 5% • • per annum and will mature in accordance with a schedule to be determined after the final amount of the bond issue is established to provide for an approximately even debt service. Section 3 . APPOINTMENT OF PAYING AGENT, REGISTRAR AND TRANSFER AGENT. The City Council hereby appoints the Bank of America National Trust and Savings Association as paying agent. The City Manager shall hereafter select an appropriate person to serve as registrar and transfer agent for the bonds. Section 4 . FORM AND EXECUTION. Bonds shall be issued as fully registered bonds in the form set forth as Exhibit A to this resolution. The bonds shall be signed by the City Treasurer and the City Clerk and the seal of the City shall be affixed. Both signatures and seal may be reproduced on the bonds by facsimile, but upon its registration or reregistration each bond shall be authenticated by the manual signature of the registrar . Section 5 . ESTABLISHMENT OF SPECIAL FUNDS . For administering the proceeds of the sale of bonds and payment of interest and principal on the bonds, there are hereby established three funds to be known as the improvement fund, the redemption fund and the special reserve fund, respectively, for Cedars Road Sewer Assessment District No. 1983-6. Section 5 . 1. IMPROVEMENT FUND. Except as provided in Section 5 . 3 , proceeds of sale of the bonds, together with all amounts paid on the assessments prior to bond issuance, shall be deposited in the improvement fund to be maintained by the City Treasurer . Disbursements from the improvement fund shall be 2 • made by the City Treasurer in accordance with the budget of estimated costs and expenses set forth in the engineer ' s report heretofore approved by the City Council, which report and budget are subject to modification by the City Council from time to time as prescribed by the Act. Section 5 . 2. REDEMPTION FUND. The redemption fund shall be maintained by the City Treasurer . All payments of principal and interest installments on the assessments, together with penalties, if any, shall be deposited in the redemption fund, which shall be a trust fund for the benefit of the bondholders. Payment of the bonds at maturity, or at redemption prior to maturity, and all interest on the bonds shall be made from the redemption fund. Section 5 . 3. SPECIAL RESERVE FUND. The special reserve fund shall be maintained by the City Treasurer. There shall be deposited into the special reserve fund the amount of $870 .08 from the proceeds of the sale of bonds. The special reserve fund shall be administered as follows: A. During the term of the bonds, the amount in the special reserve fund shall be available for transfer into the redemption fund in accordance with Section 8808 of the Streets and Highways Code. The amount so advanced shall be reimbursed to the special reserve fund from the proceeds of redemption or sale of the parcel for which payment of delinquent assessment installments was made from the special reserve fund. B . If any assessment is prepaid before final maturity of the bonds, the amount of principal which the 3 • • assessee is required to prepay shall be reduced by an amount which is in the same ratio to the original amount of the special reserve fund, together with accrued interest, as the original amount of the prepaid assessment bears to the total amount of assessments originally levied in Cedars Road Sewer Assessment District No. 1983-6 . This reduction in the amount of principal prepaid shall be balanced by a transfer from the special reserve fund to the redemption fund in the same amount. C. Whenever required to prevent the reserve fund from exceeding the reserve limitations set by federal statute and regulation, the City Treasurer is directed to transfer accrued interest from the special reserve fund to the redemption fund from time to time, and to establish pro rata credits against annual installments of assessment principal and interest in the same amount in the year following the year of transfer . D. When the amount in the special reserve fund equals or exceeds the amount required to retire the remaining unmatured bonds (whether by advance retirement or otherwise) , the amount of the special reserve fund shall be transferred to the redemption fund, and the remaining installments of principal and interest not yet due from assessed property owners shall be cancelled without payment. Section 6 . PAYMENT ON BONDS . The principal and interest on the bonds shall be payable at Bank of America National Trust and Savings Association, San Francisco, California. Principal and interest shall be paid by check, draft or warrant mailed to the registered owner of each bond at 4 • • the owner ' s address appearing on the register maintained by the registrar on the 15th day preceding the date of interest payment or maturity of each bond. Section 7 . REREGISTRATION. Any bond may be registered to a new owner by completing the assignment certificate on the reverse of the bond and delivering the bond to the registrar . Upon reregistration, any bond may be replaced by one or more bonds of the same maturity and aggregate amount in denominations of $500 or any integral multiple thereof. Section 8 . COVENANTS . In the event of a default in the payment of any bond or any installment of interest thereon, bondholders shall have the remedies set forth in the Improvement Bond Act of 1915 . In addition, the City Council makes the following covenants, which shall constitute a contract with the bondholders: Section 8 .1. FORECLOSURE OF LIENS . If any installment of the principal or interest of any assessment levied in Cedars Road Sewer Assessment District No. 1983-6 , becomes delinquent, the City Council shall cause an action to be filed in the Superior Court of the County of Shasta to foreclose the lien of the delinquent assessment under the authority of Section 8830 and following of the Streets and Highways Code of the State of California. This action shall be filed not later than one hundred fifty (150) days after the date of delinquency. Section 8 . 2 . ARBITRAGE. During the term of the bonds, the City will make no use of bond proceeds which, if such use had been reasonably expected at the date the bonds are 5 • • issued, would have caused the bonds to be "arbitrage bonds" within the meaning of Section 103 (c) of the United States Internal Revenue Code of 1954 , as amended, and regulations of the Internal Revenue Service authorized thereby. 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 19th day of March, 1984. AYES: Councilmembers Fulton, Kirkpatrick, Pugh, and Gard NOES: Councilmembers None ABSENT: Councilmembers Demsher ETHEL A. NICHOLS , City Clerk, City of Redding, Shasta County, California BY % C(. 6 • • • United States of America State of California City of Redding REGISTERED REGISTERED Number $ IMPROVEMENT BOND CITY OF REDDING CEDARS ROAD SEWER ASSESSMENT DISTRICT NO. 1983-6 SERIES NO. INTEREST RATE MATURITY DATE BOND DATE CUSIP 10 .5% July 2 , April 2 , 1984 Under and by virtue of the Improvement Bond Act of 1915 , Division 10 , of the Streets and Highways Code, (the "Act" ) , the City of Redding, County of Shasta, State of California, (the "City" ) , will, out of the redemption fund for the payment of the bonds issued upon the unpaid portion of assessments made for the acquisition, work and improvements more fully described in proceedings taken pursuant to Resolution of Intention No. 84-16 , adopted by the City Council of the City of Redding on 17th day of January, 1984, pay to or registered assigns, on the maturity date stated above, the principal sum of , in lawful money of the United States of America and in like manner will pay interest from the interest payment date next preceding the date on which this Bond is authenticated, unless this Bond is authenticated and registered as of an interest payment date, in which event it shall bear interest from such interest payment date, or unless this Bond is authenticated and registered prior to January 2 , 1985 , in which event it shall bear interest from its date, until payment of such principal sum shall have been discharged, at the rate per annum stated above, payable semiannually on January 2 and July 2 in each year . Both the principal hereof and redemption premium hereon are payable at the principal corporate trust office of Bank of America National Trust and Savings Association-Corporate Agency Division, or its successor , as Paying Agent, in San Francisco, California, and the interest hereon is payable by check or draft mailed to the owner hereof at the owner ' s address as it appears on the registration books of the Bank, or at such address as may have been filed with the Bank for that purpose, as of the fifteenth day immediately preceding each interest payment date. REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH IN THE REVERSE SIDE HEREOF WHICH SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS THOUGH FULLY SET FORTH HEREIN. EXH BIT ,, • i This bond will continue to bear interest after maturity at the rate above stated, provided, it is presented at maturity and payment thereof is refused upon the sole ground that there are not sufficient moneys in said redemption fund with which to pay same. If it is not presented at maturity, interest thereon will run until maturity. This Bond shall not be entitled to any benefit under the Act or the Resolution Authorizing Issuance of Bonds (the "Resolution of Issuance" ) , or become valid or obligatory for any purpose, until the certificate of authentication and registration hereon endorsed shall have been dated and signed by the Registrar and Transfer Agent. IN WITNESS WHEREOF, said City of Redding has caused this bond to be signed in facsimile by the Treasurer of said City and by its Clerk, and has caused its corporate seal to be reproduced in facsimile hereon all as of the 2nd day of April, 1984. CITY OF REDDING Clerk Treasurer (SEAL) Certificate of Authentication and Registration This is one of the Bonds described in the within mentioned Resolution of Issuance, which has been registered on By Authorized Officer 2 • (REVERSE OF BOND) CITY OF REDDING CEDARS ROAD SEWER ASSESSMENT DISTRICT NO. 1983-6 ADDITIONAL PROVISIONS OF THE BOND This bond is one of several annual series of bonds of like date, tenor and effect, but differing in amounts, maturities and interest rates, issued by the City of Redding under the Act and the Resolution of Issuance, for the purpose of providing means for paying for the improvements described in said proceedings , and is secured by the moneys in said redemption fund and by the unpaid portion of said assessments made for the payment of said improvements, and, including principal and interest, is payable exclusively out of said fund. This Bond is transferable by the registered owner hereof, in person or by the owner ' s attorney duly authorized in writing, at the office of the Transfer Agent, subject tothe terms and conditions provided in the Resolution of Issuance, including the payment of certain charges, if any, upon surrender and cancellation of this Bond. Upon such transfer , a new registered Bond or Bonds, of any authorized denomination or denominations, of the same maturity, for the same aggregate principal amount, will be issued to the transferee in exchange therefor . Bonds shall be registered only in the name of an individual (including joint owners) , a corporation, a partnership or a trust. The Transfer Agent shall be required to make such exchange or registration of transfer of bonds during the fifteen (15) days immediately preceding any January 2 or July 2 . The City and the Bank may treat the owner hereof as the absolute owner for all purposes, and the City and the Bank shall not be affected by any notice to the contrary. This bond or any portion of it in the amount of '$500 or any integral multiple thereof, may be redeemed and paid in advance of maturity upon the second day of January or July in any year by giving at least 60 days' notice by registered mail to the registered owner hereof at such owner ' s address as it appears on the registration books of the Bank and by paying principal and accrued interest together with a premium equal to five percentum of the principal. LEGAL OPINION I hereby certify that the following is a correct copy of the signed legal opinion of STURGIS , NESS , BRUNSELL & SPERRY a professional corporation, Emeryville, California, on file in my office. City Clerk