HomeMy WebLinkAboutReso. 1983 - 163 - Resolution ordering sale of bonds sunset west assessment district no. 1981-4 • •
� Q�
RESOLUTION NO. gj (, 3
RESOLUTION ORDERING SALE OF BONDS
SUNSET WEST ASSESSMENT DISTRICT NO. 1981-4
The City Council of the City of Redding resolves:
The City Council accepts the offer of DEAN WITTER
REYNOLDS , INC. , (attached to this resolution and by
reference incorporated in it) , to purchase all of the
improvement bonds to be issued in Sunset West Assessment
District No. 1981-4 .
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 15th day of August 15 , 1983.
AYES: Councilmembers Demsher, Fulton, Kirkpatrick, and Gard
NOES : Councilmembers None
ABSENT: Councilmembers None
ABSTAIN: Councilmembers Pugh
ETHEL A. NICHOLS, City Clerk, City of
Redding, Shasta County, California
By a 77,/,_.6-60
•
August 15, 1983
i
The City Council of the City of Redding Councilmembers:
•
For acceptance by you at your meeting on August 15, 1983, we hereby offer
to purchase not less than all of the bonds of your proposed 1915 Act
improvement bond issue to be known as Sunset West Assessment District #1981-4
City of Redding, Shasta County, California, on the following terms and
conditions:
We will pay 96% of the par value thereof, with accrued interest if any,
from the dated date of the issue (September 2, 1983) to the delivery date
of the issue. The bonds shall mature in such amounts and bear interest at
the rates shown below:
$34,816.00 due 7-2-85 @ 8.00 %
30,000.00 due 7-2-86 @ 8.25 %
35,000.00 due 7-2-87 @ 8.50 %
40,000.00 due 7-2-88 @ 8.75 %
40,000.00 due 7-2-89 @ 9.00
45,000.00 due 7-2-90 @ 9.25 %
50,000.00 due 7-2-91 @ 9.50 %
55,000.00 due 7-2-92 @ 9,75 %
60,000.00 due 7-2-93 @ 10.00 %
65,000.00 due 7-2-94 @ 10.10 %
75,000.00 due 7-2-95 @ 10.20 %
80,000.00 due 7-2-96 @ 10.30%
90,000.00 due 7-2-97 @ 10.40 %
100,000.00 due 7-2-98 @ 10.50 %
110,000.00 due 7-2-99 @ 10.50 0
The bonds shad be in $5,000 denominations except for bond #1 which will
be in the denomination of $4,816.00.
This bid is subject to the unqualified approving legal opinion of Sturgis,
Ness, Brunsell & Sperry a professional corporation, to be furnished to you
at your expense and printed on the bonds.
Delivery of these bonds is to be made to us on or before September 15, 1983.
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 the contract of purchase.
This bid is also made subject to the following terms and conditions:
A) RDGISTRATICN: The Bonds may issued in fully registered form only,
and will be interchangeable upon the telins set forth in the resolution
authorizing issuance of bonds.
B) CHANGE IN TAX EXRhhiPT.STATUS: At any time before the Bonds are
4
tendered for delivery the successful bidder may disaffirm and withdraw the
proposal if the interest received by private holders frau bonds of the
same type and character shall be declared to be taxable income under present
federal income tax laws, either by a ruling of the Internal Revenue Service
or by a decision of any federal court or shall be declared taxable or shall
be required to be taken into account in computing federal income taxes by
the terms of any federal income tax enacted subsequent to the date of this
notice.
C) Na -ARBITRAL CERTIFICATE: A certificate of the City certifying
that on the basis of the facts, estimates and circumstances in existence
on the date of delivery, it is not expected that the proceeds of the Bonds
will be used in a manner that would cause the Bonds to be arbitrage bonds.
D) NO LITIGATION CERTIFICATE: At the time of payment for and delivery
of said Bonds, the City will furnish to us a certificate that there is no
litigation pending affecting the validity of the Bonds.
E) SIGNATURE CERTIFICATE: Certificate signed by officers and repre-
sentatives of the Agency certifying that said officers and representatives
have sieved the Bonds, whether by facsimile or manual signature, and that
they were respectively duly authorized to execute the same.
F) CERTIFICATE RE: CUSIP NUMBERS: It is anticipated that CUSIP
identification numbers will be printed on the Bonds but neither the
failure to print such numbers on any Bond nor any error with respect
thereto shall constitute cause for failure or refusal by the purchaser
thereof to accept delivery of and pay for said Bonds in accordance with
the terms of the purchase contract. All expenses in relation to the print=
ing of CUSIP numbers on said Bonds shall be paid by the City; provided,
however, that the CUSIP Service Bureau charge for the assignment of said
numbers shall be the responsibility of and shall be paid for by the purchaser.
G) 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, being
Division 12 of the Streets and Highways Code of the State of California,
and are to be issued pursuant to the provisons of the Improvement Bond Act + .
of 1915, being Division 10 of said Code. Proceeds frau the sale of such
bonds will be used to pay the costs of the improvement project ac
authorized by said proceedings.
H) 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 interst accrued thereon to the date of redemption, plus a
redemption premium of five percent (5%) of the principal amount thereof.
• I) 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
•
• 4 401
•
and Highways 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 the judicial foreclosure in lieu of tax
sale and the five-sale and the five-year redemption period within 150 days
following the date of such a delinquency.
J) A special reserve fund will be created to provide available funds
frau which the City can advance and make payment on the amount of any
delinquent assessments levied for these proceedings. Payments from such
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. Said special reserve fund shall be maintained as a separate
trust account distinct frau all other funds of the City. The reserve fund
shall be in an amount equal to five percent (5%) of the bonds issued for
the proceedings. The reserve fund shall be administered and payments
shall be made all as authorized under the provisions of the Improvement
Bond Act of 1915.
K) 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, 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 is in
use in the performance of any public function.
This proposal is submitted in duplicate, one copy of which is to be
officially signed and returned to us.
Very truly yours,
DEAN IMTER REYNOLDS, INC.
_ t •
i: John J. 4,th, Jr d
First Vice President
The foregoing proposal is hereby accepted on behalf of the City of
Council of the City of Redding. I
Date ( , /5 173 Authorized Signature A _�- ,�!,.. Ari
Mayor