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HomeMy WebLinkAbout107-85I RESOLUTION NO. 107-85 RESOLUTION AUTHORIZING ISSUANCE OF BONDS ASSESSMENT DISTRICT NO. 1985-1, SYCAMORE VALLEY The City Council of the City of Danville resolves: Section 1. RECITALS. On August 5, 1985, the City Council of the City of Danville adopted its resolution of intention to order improvements in Assessment District No. 1985-1, Sycamore Valley, as later amended, 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 $16,088,876.00. These assessments were recorded in the office of the County Recorder of the County of Contra Costa on November 25, 1985, under Recorder's Serial No. 85-174359, and thereupon became a lien on each parcel assessed. The period within which parcel owners might pay their assessments in cash without interest has been waived, and there remain unpaid assessments in the total amount of $16,088,876.00. 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. 1985-1, Sycamore Valley, City of Danville, Contra Costa County, California, Series No. 1985-1." Bonds shall be issued in denominations of $5,000.00 or integral multiples thereof, and shall be dated December 23, 1985. Bonds shall be numbered, shall mature and shall bear interest at the rates set forth in the table attached as Exhibit A. Section 3. APPOINTMENT OF PAYING AGENT, REGISTRAR AND TRANSFER AGENT. The City Council hereby appoints Bank of America National Trust and Savings Association as paying agent, registrar and transfer agent for the bonds in accordance with an agreement between the city and Bank of America National Trust and Savings Association heretofore approved by the City Council. 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 re-registration each bond shall be authenticated by the manual signature of the registrar. 542 San Ramon Valley Blvd. · Danville, CA * 94526 * (415) 820-6337 The paying agent shall assign to each bond authenticated and registered by it a distinctive letter, or number, or letter and number, and shall maintain a record thereof which shall be available to the City for inspection. 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 funds and the special reserve fund, respectively, for Assessment District No. 1985-1, Sycamore Valley. 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 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 FUNDS. 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 funds, 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 $643,555.04 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 reserve funds, together with accrued interest, as the original amount of the prepaid assessment bears to the total amount of assessments originally levied in Assessment District No. 1985-1, Sycamore Valley. 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 funds, 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, Corporate Agency Division, P.O. Box 37000, San Francisco, CA 94137. Principal and interest shall be paid by check, draft or warrant mailed to the registered owner of each bond at 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. RE-REGISTRATION. 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 re-registration, any bond may be replaced by one or more bonds of the same maturity and aggregate amount in denominations of $5,000 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. 1985-1, Sycamore Valley, becomes delinquent, the City Council shall cause an action to be filed in the Superior Court of the County of Contra Costa 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 Internal Revenue Code of 1954, as amended, and regulations of the Internal Revenue Service authorized thereby. PASSED, APPROVED AND ADOPTED this 10th day of December, 1985 by the following vote: AYES: Lane, McNeely, Kennett, Schlendorf NOES: None ABSENT: None ABSTAIN: 0ffenhartz Mayor ATTEST: