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HomeMy WebLinkAboutReso. 1983 - 227 - Resolution authorizing issuance of bonds assessment district no. 1983-7 TUGNAL RESOLUTION NO. ,557 RESOLUTION AUTHORIZING ISSUANCE OF BONDS ASSESSMENT DISTRICT NO. 1983-7 The City Council of the City of Redding resolves: Section 1. RECITALS. On August 15, 1983, the City Council of the City of Redding adopted its resolution of intention to order improvements in Assessment District No. 1983-7 , City of Redding, 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 $64 ,560 .97 . These assessments were recorded in the office of the County Recorder of the County of Shasta on September 29 , 1983 , under Recorder ' s Serial No. 28175 and thereupon became a lien on each parcel assessed. The period within which parcel owners might pay their assessments in cash without interest has now expired, and there remain unpaid assessments in the total amount of $64 ,560 .97 . 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, Assessment District No. 1983-7 , City of Redding, Shasta County, California." Bonds shall be issued in denominations of $1000.00 or integral multiples thereof, and shall be dated November 2 , 1983. Bonds shall be numbered, shall mature and QA shall bear interest at the rates set forth in the table attached , 111 111 as Exhibit A. Section 3 . APPOINTMENT OF PAYING AGENT, REGISTRAR AND /11! TRANSFER AGENT. The City Council hereby appoints 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 B 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 Assessment District No. 1983-7 . 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 made by the City Treasurer in accordance with the budget of estimated costs and expenses set forth in the engineer' s report 2 V , . : ' i • 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 (Treasurer or paying agent) . There shall be deposited into the special reserve fund the amount of $3 ,228 .05 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 assessee is required to prepay shall be reduced by an amount which is in the same ratio to the original amount of the special 3 /II! III e 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 $1000.00 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 Assessment District No. 1983-7 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 issued, would have caused the bonds to be "arbitrage bonds" within the meaning of Section 103 (c) of the .United States 5 • • 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 7th day of November , 1983. AYES: Councilmembers Demsher, Fulton, Pugh, and Gard NOES: Councilmembers None ABSENT: Councilmembers Kirkpatrick ETHEL A. NICHOLS, City Clerk , City of Redding, Shasta County, California 6 • • • GREENBACK LANE STREET ASSESSMENT DISTRICT NO. 1983-7 CITY OF REDDING DATE OF BOND DENOM- ANNUAL INTEREST MATURITY NUMBERS INATION AMOUNT RATE-% 1985 Al $560 . 97 $560. 97 10.500 1986 B1- B2 1,000 . 00 2,000 .00 10.500 1987 Cl- C3 1,000 . 00 3 , 000 . 00 10.500 1988 Dl- D3 1,000 . 00 3 ,000. 00 10 .500 1989 El- E3 1,000 . 00 3 ,000 . 00 10 .500 1990 Fl- F3 1,000. 00 3 ,000 .00 10.500 1991 Gl- G4 1,000 . 00 4 , 000 . 00 10.500 1992 H1- H4 1,000 . 00 4 ,000 . 00 10.500 1993 Jl- J4 1,000 .00 4 ,000 .00 10 .500 1994 Ki- K5 1 , 000 . 00 5 , 000 . 00 10.500 1995 L1- L5 1,000 . 00 5 ,000 . 00 10 . 500 1996 Ml- M6 1,000 .00 6 ,000 . 00 10.500 1997 N1- N7 1,000 . 00 7 , 000 . 00 10 .500 1998 P1- P7 1,000 . 00 7 ,000 .00 10.500 1999 Q1- Q8 1,000 . 00 8 ,000 . 00 10.500 $64 ,560 .97 EXHIBIT A • • • Number $ IMPROVEMENT BOND CITY OF REDDING GREENBACK LANE STREET ASSESSMENT DISTRICT NO. 1983-7 - , SERIES NO. 1983-7 REGISTERED REGISTERED INTEREST RATE MATURITY DATE DATED AS OF 10. 5% July 2 , November 2 , 1983 Under and by virtue of the Improvement Bond Act of 1915, • Division 10 , of the Streets and Highways Code, the City of Redding, County of Shasta, State of California, will, out of the redemption fund for the payment of the bonds issued upon the assessments made for the improvements in Greenback Lane Street Assessment District No. 1983-7 , more fully described in the Resolution of Intention No. 83-155, passed by the City Council of the City of Redding on the 17th day of August, 1983 , pay to or registered assigns, the principal sum of $ , with interest thereon at the interest rate per annum specified above, all as hereinafter specified, and at Bank of America National Trust and Savings Association, the transfer agent, registrar and paying agent ("the Bank" ) in San Francisco, California. THIS BOND SHALL NOT BECOME VALID FOR ANY PURPOSE UNTIL THE CERTIFICATE OF AUTHENTICATION AND REGISTRATION HEREON SHALL HAVE BEEN DATED AND SIGNED BY THE BANK. The interest is payable semiannually, to wit: on the EXHIBIT B . i • second day of January and July in each year hereafter , by check or draft mailed to the owner hereof at his 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 15th day preceding each interest payment date; provided that the first interest payment date shall be January 2 , 1985 , and thereafter interest shall be paid semiannually. If this bond is authenticated and registered before January 2 , 1985 , it shall bear interest from its date. - Otherwise, this bond shall bear interest from the interest payment date on or next preceding the date of its authentication and registration. ADDITIONAL PROVISIONS OF THIS BOND ARE SET FORTH ON THE REVERSE HEREOF. 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 Clerk to affix hereto in facsimile its corporate seal, all on the 2nd day of November , 1983. CITY OF REDDING Clerk Treasurer (SEAL) Certificate of Authentication and Registration This bond has been registered on , 19 Bank of America National Trust and Savings Association By Authorized Officer 2 4 (REVERSE OF BOND) CITY OF REDDING GREENBACK LANE STREET ASSESSMENT DISTRICT NO. 1983-7 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 said law with the purpose of providing means for paying for the improvements described in said resolution of intention, and is secured by the money in said redemption fund and by the unpaid assessments made for the payment of said improvements, and, including principal and interest, is payable exclusively out of said fund. The bonds are issuable only as fully registered bonds in denominations of $1, 000 or integral multiples thereof , except Bond No. A-1. Bonds may be exchanged at said office of the bank for the same aggregate principal amount of registered bonds of the same maturity but of other authorized denominations. This bond is transferable by the registered owner hereof, in person or by his attorney duly authorized in writing, at said . office of the bank. Upon such transfer, a new registered bond or bonds , of any authorized denomination, of the same maturity, and 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. Neither the .City nor the bank shall be required to make such exchange or registration of transfer of bonds during the 411 fifteen (15) days immediately preceding any interest payment date. The City and the bank may treat the owner hereof as the absolute owner for all purposes notwithstanding any notice to the contrary. This bond will continue to bear interest after maturity at the rate herein stated; provided, it is presented at maturity and payment thereof is refused upon the sole grounds that there is not sufficient money in said redemption fund with which to pay the bond. If the bond is not presented on maturity, interest thereon will run to maturity. This bond or any portion of it in the amount of $1,000 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 the giving of notice provided under said law and by paying principal and accrued interest together with a premium equal to five percent of the principal.