HomeMy WebLinkAboutRES NO 13-94RESOL TIUN 1 $ - 9 4
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF BAKERSFIELD PROVIDING FOR ISSUANCE
OF REFUNDING BONDS ~ AWARDING SALE OF
REFUNDING BONDS IN CONNECTION WITH THE
CITY OF BAKERSFIELD ASSESSMENT DISTRICT NO. 86-2
(SERIES II -- TAXABLE)
RESOLVED BY THE CITY COUNCIL (the "Council") OF THE CITY
OF BAKERSFIELD (the "city") as follows:
WHEREAS, on January 12, 1994, the Council adopted its
Resolution of Intention No. 1114 (the "Resolution of Intention") to
levy reassessments, and to issue refunding bonds upon the security
thereof, within an assessment district generally known as City of
Bakersfield Assessment District No. 86-2 (the "District"), under
and pursuant to the Refunding Act of 1984 for 1915 Act Improvement
Bonds (being Division 11.5, commencing with Section 9500, of the
California Streets and Highways Code) (the "1984 Refunding Act");
the Resolution of Intention is hereby referred to for further
particulars; and
WHEREAS, the refunding bonds are to be issued in two
separate series, one series to be tax-exempt and allocated to
refund tax-exempt prior bonds, and one series to be taxable and
allocated to refund taxable prior bonds; and
WHEREAS, as set forth in Resolution No. I~-q~ , adopted
by the Council on January 12, 1994, the Council has duly considered
the written report dated January 12, 1994, prepared in connection
with the proposed refunding and reassessment pursuant to Section
9523 of the 1984 Refunding Act (the "Reassessment Report"), has
made the findings required by Section 9525 of the 1984 Refunding
Act, and has approved, confirmed and adopted the Reassessment
Report and the reassessment and reassessment diagram(s) presented
therewith; and
WHEREAS, the reassessment diagram(s) and a notice of
reassessment have been duly recorded in the manner provided by law,
and the reassessments and interest thereon shall be collected on
the assessment roll for the City in the same manner and subject to
the same remedies on default and to the payment of interest and
penalties on the enforcement thereof as the original assessments of
the District; and
WHEREAS, the Council is now authorized under the 1984
Refunding Act to authorize, issue and sell the refunding bonds;
1/11/94(1398.7)
THEREFORE, THE COUNCIL FINDS, DETERMINES AND ORDERS AS
FOLLOWS:
SECTION 1. Definitions. Unless the context otherwise
requires, the terms set forth below shall, for all purposes of this
Resolution, have the meanings specified in this Section 1. These
definitions shall be equally applicable to both the singular and
plural forms of any of such terms.
"Aqent" means the transfer agent, registrar and paying
agent appointed pursuant to Section 23 of this Resolution.
"Authority" means the Bakersfield Public Financing
Authority.
"Bond Counsel" means the law firm of Burke, Williams &
Sorensen, Fresno, California.
"Bond Date" means the dated date of the Series II Bonds,
which shall be determined by the City and the Authority and
established by the purchase contract for the Series II Bonds
identified in Section 21 hereof.
"Bond Denomination" means the amount of $5,000, which is
the minimum amount in which the Series II Bonds may be issued,
except that one Series II Bond, due on September 2, 1994, will
include the amount, if any, by which the principal amount of the
Series II Bonds exceeds the largest integral multiple of $5,000
contained in such issue.
"Bond Year" means the twelve-month period beginning on
September 2 of each year and ending September 1 of the following
year, except that the first Bond Year shall begin on the Closing
Date and end September 1, 1994.
"Bonds" means, collectively, the Series I Bonds and the
Series II Bonds.
"city" means the City of Bakersfield, California, the
issuer of the Series II Bonds.
"Clerk" means the City Clerk or the Deputy City Clerk to
the City.
"Closinq Date" means the date upon which there is an
exchange of the Series II Bonds for the proceeds representing the
purchase price of the Series II Bonds by the Original Purchaser.
"Code" means the Internal Revenue Code of 1986, as
amended.
1/11/94(1398.7) 2
"Costs of Issuance" means all applicable costs and
expenses incident to the calling, retiring or paying of the Taxable
Prior Bonds and to the issuance of the Series II Bonds, including,
but not limited to:
(i) underwriters' fees, if any (other than those
taken in the form of a discount on the Closing Date);
(ii)
underwriters'
fees, as well
counsel fees, if any, including Bond Counsel,
counsel, City's counsel and special tax counsel
as any other specialized counsel fees;
(iii) financial consultant fees, if any;
(iv) rating agency fees, if any;
(v) charges of the escrow agent or trustee, if any;
(vi) paying agent and certifying and authenticating
agent fees, if any;
(vii) certified public accountant fees, if any;
(viii) printing and advertising costs, if any, of the
Series II Bonds and of any preliminary and final official
statements;
(ix) accrued and unpaid interest, if any, on the
Taxable Prior Bonds;
(x) any premium necessary in the calling and
retiring of the Taxable Prior Bonds;
(xi) City administrative expenses;
(xii) costs of engineering and feasibility studies
necessary to the issuance of the Series II Bonds; and
(xiii) amounts, if any, the City has paid or
transferred, either from a special reserve fund or from
surplus funds, into the redemption fund for the Taxable Prior
Bonds, and any penalties and interest thereon, provided such
amounts, penalties and interest have been included in and
limited to the particular reassessments levied on those
subdivisions of land in the District securing original
assessment installments which are delinquent and for which the
payments or transfers have been made.
1/I 1/94(1398.7)
"Costs of Issuance Fund" means the special fund
established by the Treasurer pursuant to Section 10 of this
Resolution for payment of Costs of Issuance of the Series II Bonds.
"County" means the County of Kern, California, the county
in which the City is located.
"Debt Service" means the scheduled amount of interest and
principal payable on the Series I Bonds or the Series II Bonds, as
the text indicates, during the period of computation, excluding
amounts scheduled during such period which relate to principal
which has been retired before the beginning of such period.
"District" means the City of Bakersfield Assessment
District No. 86-2.
"Escrow Fund" means the separate fund into which a
portion of the Sale Proceeds of the Series II Bonds will be
deposited pursuant to Section 9 of this Resolution and the Escrow
Agreement dated as of the Closing Date, between the City and Bank
of America, National Trust and Savings Association, as escrow
agent.
"Federal Securities" means those securities described in
Sections 1360 and 1360.1 of the California Financial Code and
includes United States Treasury notes, bonds, bills or certificates
of indebtedness, or obligations for which the faith and credit of
the United States are pledged for the payment of principal and
interest, including the guaranteed portions of small business
administration loans so long as the loans are obligations for which
the faith and credit of the United States are pledged for the
payment of principal and interest.
"Interest Payment Date" means each date upon which
interest on the Series II Bonds is payable, commencing on
September 2, 1994, and semiannually thereafter on March 2 and
September 2 of each year to maturity.
"1984 Refundinq Act" means the Refunding Act of 1984 for
1915 Improvement Act Bonds, Division 11.5 of the California Streets
and Highways Code.
"1915 Act" means the Improvement Bond Act of 1915, Divi-
sion 10 of the California Streets and Highways Code.
"Oriqinal Purchaser" means the purchaser of the Series II
Bonds from the City on the Closing Date, which is to be the
Authority.
"Redemption Fund" means the fund established by the
Treasurer for the Series II Bonds into which shall be placed any
accrued interest for the period from the Bond Date to the Closing
Date of the Series II Bonds and all sums received from the
collection of reassessments and allocable to the Series II Bonds
and of the interest and penalties thereon, all as provided in
Section 10 hereof.
"Redemption Premium" means the following percentages of
the principal amount of the Series II Bonds for the periods
indicated:
Redemption Date
(both dates inclusive)
Redemption
Premium
Closing Date through September 1, 2002
September 2, 2002, through September 1, 2003
September 2, 2003, through September 1, 2004
September I, 2004, and thereaRer
3%
2%
1%
0%
The Redemption Premium will be paid on Bonds redeemed prior to
maturity as stated in Section 12 hereof. The Original Purchaser
and any subsequent owner of the Series II Bonds may waive any
Redemption Premium owing on the Series II Bonds. The Series II
Bonds shall not be redeemed in whole until on or after September 2,
2001.
"Resolution" means this Resolution No. 1~-gq, as it may
be amended by the Council from time to time.
"Sale Proceeds" means any amounts actually or
constructively received from the sale of the Series II Bonds,
including amounts used to pay underwriters' discount, if any, or
compensation and accrued interest on the Series II Bonds (other
than pre-issuance accrued interest, if any).
"Series I Bonds" means the City of Bakersfield Assessment
District No. 86-2 Limited Obligation Refunding Bonds, Series I
(Tax-exempt), a separate issue of bonds, in the aggregate principal
amount of $10,220,000, to be issued by the City pursuant to the
1984 Refunding Act. The Series I Bonds are expected to be tax-
exempt bonds. The Series I Bonds are secured by the same
reassessment lien as the Series II Bonds and have parity with the
Series II Bonds. Said lien is sufficient to pay Debt Service on
both series of Bonds. Pursuant to Section 17 hereof, the City has
covenanted that any foreclosure action against said lien shall be
simultaneous for the Series I Bonds and the Series II Bonds.
Pursuant to Section 12 hereof, payments or collections of
assessments shall be applied first to Debt Service of the Series II
Bonds and then to Debt Service of the Series I Bonds.
"Series II Bond" or "Series II Bonds" means the City of
Bakersfield Assessment District No. 86-2 Limited Obligation
Refunding Bonds, Series II (Taxable), in an aggregate principal
amount of $1,610,000, issued pursuant to the 1984 Refunding Act and
1/11/94(1398.7) 5
ORIGINAL
this Resolution. Each Series II Bond shall be substantially in the
form provided in Exhibit A, which is attached to and made part of
this Resolution. The Series II Bonds are expected to be taxable
bonds.
"Taxable Prior Bonds" means, collectively, all of the
following bonds issued by the City:
Improvement Bonds, City of Bakersfield, Assessment
District No. 86-2, Series C.
The bonds listed above are "taxable bonds" of the City in that the
interest thereon is not exempt from income taxation by the United
States of America.
"Treasurer" means the Finance Director of the City, or
such other person appointed by the Finance Director to carry out
the duties of the Treasurer required hereunder.
SECTION 2. List of Reassessments. The reassessments now
remaining unpaid are as shown on the list presented to the Council
concurrently with this Resolution and are in the aggregate amount
of $1,610,000. The Council hereby approves such list. For a
particular description of the lots or parcels of land bearing the
respective reassessment numbers set forth in the list, reference is
made to the reassessment and to the reassessment diagram(s)
recorded in the office of the Public Works Director of the City
after confirmation thereof by the Council.
SECTION 3. Issuance of Bonds. Series II Bonds, in the
aggregate principal amount of not to exceed $1,610,000, shall be
issued as provided in this Resolution upon the security of the
reassessments in accordance with, under and pursuant to the
provisions of the Resolution of Intention, this Resolution and the
1984 Refunding Act and the proceedings conducted thereunder. The
Series II Bonds shall be issued only in fully registered form in
the amount of the Bond Denomination or any integral multiple
thereof (except for one Series II Bond, due on September 2, 1994,
which will include the amount, if any, by which the principal
amount of the Series II Bonds exceeds the largest integral multiple
of $5,000 contained in such issue). The Series II Bonds shall
mature in the amounts and on the dates and at the rates of interest
set forth in the purchase contract for the Series II Bonds, to be
entered into by the City and the Authority pursuant to Section 21
hereof. The Series II Bonds shall be numbered consecutively from
1 upward, and shall be payable in numerical order, consecutively,
commencing with the lowest number within the maturity. If the
Authority acquires the Series II Bonds, one Series II Bond in an
amount not to exceed $1,610,000 may be issued to represent all
serial bonds; and/or, if term bonds are issued, a separate
certificate for each term bond maturity may be issued.
1/I 1/94(1398.7) 6
SECTION 4. Form of Series II Bonds. The Series II Bonds
shall be substantially in the form set forth in Exhibit A.
SECTION 5. Payment of Series II Bonds. The Series II
Bonds shall bear interest at the rate not to exceed twelve percent
per annum or such higher rate of interest as may be authorized by
law at the time of sale of the Bonds as provided in the purchase
contract for the sale of the Series II Bonds to the Original
Purchaser, payable on each Interest Payment Date.
Each Series II Bond shall bear interest from the Interest
Payment Date next preceding the date on which it is authenticated
and registered, unless authenticated and registered (i) prior to an
Interest Payment Date and after the close of business of the
fifteenth day of the month immediately preceding such Interest
Payment Date, in which event it shall bear interest from such
Interest Payment Date, or (ii) prior to the close of business on
the fifteenth day of the month preceding the first Interest Payment
Date, in which event it shall bear interest from the Bond Date;
provided, however, that if at the time of authentication interest
is in default, each Series II Bond shall bear interest from the
date to which interest has been paid. Each Series II Bond will
continue to bear interest after maturity at the rate stated
therein, provided it is presented at maturity and payment thereof
is refused on the sole ground that there is not sufficient money in
the Redemption Fund with which to pay same. If a Series II Bond is
not presented at maturity, interest thereon will run only until
maturity.
SECTION 6. Execution. The Series II Bonds shall be
executed on behalf of the City and under its official seal by the
Treasurer and by the Clerk, whose signatures shall be manually
placed on the Series II Bonds or reproduced by engraved, printed or
lithographed facsimile thereof, and the official seal may be placed
on the Series II Bonds in like manner. Such signing and sealing
shall constitute and be a sufficient and binding execution of each
and every Series II Bond. If the Series II Bonds are executed
under seal by facsimile, the Series II Bonds shall then be
delivered to the Treasurer or the Agent for authentication by the
Treasurer or Agent.
If any officer whose signature appears on the Series II
Bonds ceases to be such officer before the authentication and
delivery of the Series II Bonds to the purchaser thereof, such
signature shall be as valid as if such officer had remained in
office until the authentication and delivery of the Series II
Bonds.
SECTION 7. Authentication. Only those Series II Bonds
which bear thereon the original manual signatures of the Treasurer
and the Clerk and the original imprint of the City seal, or the
facsimile of such signatures and seal and a certificate of
1/11/94(1398.7) 7
ORiGi~-~AL
authentication substantially in the form below, manually executed
by the Treasurer or the Agent, shall be valid or obligatory for any
purpose or entitled to the benefits of this Resolution. For
Series II Bonds bearing a certificate of authentication, such
certificate shall be conclusive evidence that the Series II Bonds
so authenticated have been duly executed, authenticated and
delivered hereunder and are entitled to the benefits of this
Resolution. The certificate of authentication on any Series II
Bond requiring authentication shall be deemed to be duly executed
if signed by an authorized officer or signatory of the Treasurer or
the Agent, but it shall not be necessary that the same officer or
signatory sign the certificate of authentication on all the
Series II Bonds.
1/11/94(139g.7) 8
[FORM OF CERTIFICATE OF AUTHENTICATION AND REGISTRATION]
This is one of the Series II Bonds described in the Resolution Providing for Issuance of Refunding
Bonds and Awarding Sale of Refunding Bonds referred to herein.
[Name Of Authenticating Entity]
By:
Authorized Representative
SECTION 8. Preparation and Delivery of Series II Bonds.
The Treasurer is authorized and directed to cause the Series II
Bonds to be prepared in accordance with this Resolution and to
cause the Series II Bonds to be executed and/or authenticated and
delivered to the Original Purchaser, upon receipt of the purchase
price therefor and upon the performance of the conditions contained
in the accepted offer for the purchase of the Series II Bonds.
SECTION 9. Escrow Agreement and Escrow Fund. A separate
Escrow Fund entitled, "City of Bakersfield Assessment District
No. 86-2 Limited Obligation Refunding Bonds, Series II (Taxable),
Escrow Fund," shall be established for the Series II Bonds pursuant
to the Escrow Agreement dated as of the Closing Date, between the
City and Bank of America, National Trust and Savings Association,
as escrow agent (the "Escrow Agent"). The Escrow Agent shall
maintain and account for the Escrow Fund and all monies therein and
earnings thereon separately from all other funds and accounts of
the Escrow Agent. The Escrow Fund shall be funded with the Sale
Proceeds of the Series II Bonds and any other amounts legally
available to the City for the refunding of the Taxable Prior Bonds,
and shall be applied to the refunding of the Taxable Prior Bonds.
Upon receipt of payment for the Series II Bonds when they have been
sold by the City, the Treasurer shall deposit with the Escrow
Agent, for deposit in the Escrow Fund, respectively, an amount of
the appropriate Sale Proceeds which, when added to other amounts
deposited therein, is certified by a certified public accountant
licensed to practice in California to be sufficient, together with
any interest or other gain to be derived from investment of monies
in the Escrow Fund, to refund and redeem in full the Taxable Prior
Bonds on the earliest date on which they may be redeemed, including
payment of principal of, interest accrued to the date of redemption
and redemption premiums thereon, if any, all as provided in the
Escrow Agreement. Monies in the Escrow Fund shall be invested in
Federal Securities, and interest and earnings on shall be allocated
to that Escrow Fund.
The Treasurer is authorized and directed to execute the
Escrow Agreement in such form as the Treasurer deems appropriate,
to execute such other documents and to take such other actions as
may be necessary or appropriate to accomplish the redemption and
1/11/94(1398.7) 9
refunding of the Taxable Prior Bonds in accordance with the Escrow
Agreement and this Resolution.
SECTION 10. Costs of Issuance Fund. The Treasurer shall
establish a special fund designated as the "City of Bakersfield
Assessment District No. 86-2 Limited Obligation Refunding Bonds,
Series II (Taxable), Costs of Issuance Fund." The Costs of
Issuance Fund shall be kept separate and apart from all other funds
and monies of the City. Upon receipt of payment for the Series II
Bonds when they have been sold by the City, the Treasurer shall
deposit in the Costs of Issuance Fund Sale Proceeds in the amount
of $188,700 and other funds, if any, from time to time deposited
with the Treasurer for such purpose and so identified in writing to
the Treasurer.
Monies in the Costs of Issuance Fund shall be disbursed
by the Treasurer to pay Costs of Issuance of the Series II Bonds.
The Treasurer shall disburse monies from the Costs of Issuance Fund
only upon receipt of a sequentially numbered requisition, signed by
an authorized representative of the person requesting payment,
setting forth the amounts to be disbursed for payment or
reimbursement of Costs of Issuance, the name and address of the
person or persons to whom the amounts are to be disbursed, and
certifying that the amounts to be disbursed are for Costs of
Issuance properly chargeable to the Costs of Issuance Fund,
together with copies of all receipts, invoices, billings or other
documents reasonably necessary or as the Treasurer may reasonably
require to verify the foregoing.
When all Costs of Issuance for the Series II Bonds have
been paid, but in no event later than 180 days from the Closing
Date, the Treasurer shall transfer any monies then remaining in the
Costs of Issuance Fund to the Redemption Fund for the Series II
Bonds to be applied as provided in Section 11. The Costs of
Issuance Fund shall then be closed and the City shall no longer be
obligated to make payments for Costs of Issuance.
SECTION 11. Redemption Fund. The Treasurer shall
establish a separate Redemption Fund for the Series II Bonds into
which shall be placed any accrued interest for the period from the
Bond Date to the date of delivery of the Series II Bonds, funded
interest, if any, in an amount not to exceed the maximum permitted
by law as of the Bond Date, and all sums received from the
collection of unpaid reassessments provided for in Section 12 and
allocated to the Series II Bonds, including interest and penalties
thereon. From the Redemption Fund, disbursements shall be made to
pay the principal or advance redemption price of the Series II
Bonds, as applicable, and the interest due thereon.
SECTION 12. Collection of Reassessments. The
reassessments shown on the list presented to the Council herewith,
together with the interest thereon, shall be payable in annual
1/11/94(1398.7) 10
installments corresponding in number to the number of serial and/or
term maturities of the Series I Bonds and Series II Bonds issued.
An annual proportion of each unpaid reassessment shall be payable
in each year preceding the date of maturity of each of the Bonds
issued, sufficient to pay the Bonds when due, and such proportion
of each unpaid reassessment coming due in any year, together with
the annual interest thereon, shall be payable in the same manner
and at the same time and in the same installments as the general
taxes on real property are payable, and become delinquent at the
same times and in the same proportionate amounts and bear the same
proportionate penalties and interest after delinquency as do the
general taxes on real property. All sums received from the
collection of the reassessments and of the interest and penalties
thereon shall be allocated first to the Series II Bonds and placed
in the Redemption Fund in an amount sufficient to pay the principal
of and interest on the Series II Bonds due on the next Interest
Payment Date, and then to the redemption fund for the Series I
Bonds.
SECTION 13. Redemption Prior to Maturity. The Series II
Bonds will not be redeemed in whole and paid in whole in advance of
maturity until on or after September 2, 2001. However, each
Series II Bond, or any portion thereof in the amount of the Bond
Denomination or any integral multiple thereof, outstanding may be
redeemed in part and paid in part in advance of maturity upon any
Interest Payment Date in any year by giving at least sixty days
notice and by paying the principal amount thereof together with the
Redemption Premium plus interest to the date of advanced maturity,
unless sooner surrendered, in which event interest will be paid to
the date of payment of the principal amount, all in the manner and
as provided in the 1915 Act.
The Treasurer shall cause to be called for redemption and
retire the Series II Bonds upon prepayment of reassessments in
amounts sufficient therefor, or whenever sufficient surplus funds
are available therefor in the Redemption Fund. In selecting
Series II Bonds for retirement, the lowest numbered Series II Bonds
of the various annual maturities therein shall be chosen pro rata
in such a way that the ratio of outstanding Series II Bonds to
issued Series II Bonds shall be approximately the same in each
annual maturity, insofar as possible. Within each annual maturity,
Series II Bonds shall be selected for retirement by lot. The
provisions of Part 11.1 of the 1915 Act shall be applicable to the
advance payment of reassessments and to the calling of the Series
II Bonds.
SECTION 14. Exchanqe, Neqotiability. Reqistration and
Transfer of Series II Bonds. Any Series II Bond, upon surrender
thereof at the office of the Agent, together with an assignment
duly executed by the registered owner thereof or his attorney or
other legal representative in such form as shall be satisfactory to
the Agent, may, at the option of such owner, be exchanged for an
1/11194(1398.7) 11
ORiGIt-~AL
aggregate principal amount of Series II Bonds, equal to the
principal amount of the Series II Bond so surrendered and of any
Bond Denomination or Bond Denominations. The City shall make
provision for the exchange of Series II Bonds at the office of the
Agent.
In all cases in which Series II Bonds shall be exchanged,
the City shall execute and the Treasurer or Agent shall
authenticate and deliver at the earliest practicable time Series II
Bonds in accordance with the provisions of this Resolution.
The Treasurer or the Agent shall keep books for the
registration and registration of transfers of the Series II Bonds
as provided in this Resolution, which books shall at all times be
open to inspection by the City. The transfer of any Series II Bond
may be registered only upon such books upon surrender thereof to
the Treasurer or Agent together with an assignment duly executed by
the owner or his attorney or legal representative in such form as
shall be satisfactory to the Treasurer or Agent. Upon any such
registration of transfer, the City shall execute and the Treasurer
or Agent shall authenticate and deliver in exchange for such
Series II Bond a new Series II Bond or Series II Bonds registered
in the name of the transferee, of any Bond Denomination or Bond
Denominations, and in an aggregate principal amount equal to the
principal amount of such Series II Bond(s) so surrendered.
All Series II Bonds surrendered in any such exchange or
registration of transfer shall forthwith be cancelled by the
Treasurer or Agent. The City may make a charge for every such
exchange or registration of transfer of Series II Bonds sufficient
to reimburse it for any tax or other governmental charge required
to be paid with respect to such exchange or registration of
transfer, but no other charge shall be made to any owner for the
privilege of exchanging or registering the transfer of Series II
Bonds under the provisions of this Resolution. The City shall not
be required to make such exchange or registration of transfer of
Series II Bonds during the fifteen days immediately preceding any
Interest Payment Date.
SECTION 15. Ownership of Series II Bonds. In addition
to or as part of the books described in Section 14, the Treasurer
shall keep a register in his office showing the series, number,
amount, rate of interest and registered owner of each Series II
Bond. The person in whose name any Series II Bond shall be
registered shall be deemed the absolute owner thereof for all
purposes, and payment of or on account of the principal, and the
Redemption Premium, if any, of any such Series II Bond, and the
interest on any such Series II Bond, shall be made only to or upon
the order of the registered owner thereof or such owner's legal
representative. All such payments shall be valid and effectual to
satisfy and discharge the liability upon such Series II Bond,
including the Redemption Premium, if any, and interest thereon to
1/11/94(1398.~ 12
the extent of the sum or sums so paid. The Treasurer shall cancel
and file each Series II Bond paid in full.
SECTION 16. Limited Obliqation. The Series II Bonds
shall represent and be secured by the reassessments in the same
manner as the original unpaid assessments constituted security for
the Taxable Prior Bonds. Pursuant to Section 8769 of the 1915 Act,
the City has determined that the City will not obligate itself to
advance available funds from the City treasury to cure any
deficiency which may occur in the Redemption Fund. Such
determination shall not prevent the City from, in the City's sole
discretion, so advancing funds.
SECTION 17. Covenant to Foreclose. The City covenants
with and for the benefit of the owners of the Series II Bonds that
it will order and cause to be commenced within 150 days following
the date of delinquency, and thereafter diligently prosecute, an
action in the superior court to foreclose the lien of any
reassessment or any installment thereof not paid when due, pursuant
to and as provided in Sections 8830 through 8836 of the 1915 Act,
provided that the alternative method of tax apportionment (Sections
4701 through 4717 of the California Revenue and Taxation Code) is
no longer applied by the City to special assessments for which
bonds have been issued pursuant to the 1915 Act, for any reason
whatsoever. The City further covenants that for any foreclosure
proceedings initiated pursuant to the foregoing, the City shall
also simultaneously initiate foreclosure proceedings for the Series
I Bonds. Any foreclosure proceedings taken pursuant to this
section shall be performed simultaneously with the foreclosure
proceedings for the Series I Bonds.
SECTION 18. Investment of Funds. Monies in the
Redemption Fund shall, whenever practicable, be invested in legal
investments for the City under applicable law for the moneys held
pursuant to this Resolution at the time when any of such monies are
to be invested therein. Any income from or interest on such
investments shall accrue to and be deposited in the fund from which
the monies were invested.
SECTION 19. Amendment. Without the consent of the
owners of the Series II Bonds, the City may amend this Resolution
to add, modify or delete provisions, provided that the security
interest of the owners of the Series II Bonds is not adversely
affected thereby.
SECTION 20. Authority of Treasurer. All actions
required by this Resolution to be performed by the Treasurer may be
performed by the designee thereof or such other official of the
City or independent contractor, agent or trustee duly authorized by
the Treasurer to perform such action or actions.
1/11/94(1398.7) 1 3
ORIGINAL
SECTION 21. Sale of Series II Bonds. The Council hereby
approves the sale of the Series II Bonds by negotiation with the
Authority. The Treasurer is hereby authorized to negotiate or
cause to be negotiated a purchase contract with the Authority for
such sale subject to the following terms : (i) the Yield on the
Series II Bonds shall not exceed the yield on the Authority's
Revenue Bonds, Series 1993C, by more than 1.5 percent; (ii) the
annual interest rate on the Series II Bonds shall not exceed twelve
percent; (iii) the total discount (inclusive of original issue
discount and underwriting discount) on the Series II Bonds, if any,
shall not exceed three percent of the aggregate principal amount of
the Series II Bonds; and, (iv) the aggregate principal amount of
the Series II Bonds shall not exceed $1,610,000. The Mayor of the
city, the City Manager of the City and/or the Treasurer are hereby
authorized and directed to execute and deliver such purchase
contract in the name and on behalf of the City and to execute all
other necessary documents in forms approved by Bond Counsel and the
City Attorney of the City, and to do all other things necessary to
complete the sale and delivery of the Series II Bonds.
SECTION 22. Leqal Opinion. The City will furnish the
legal opinion of Burke, Williams & Sorensen, Bond Counsel,
approving the legality of the proceedings and the issuance of the
Bonds.
SECTION 23. Appointment of Aqent. The Treasurer is
authorized to appoint a qualified financial institution to serve as
Agent, and such appointment is at the sole determination of the
Treasurer. The City may act as its own Agent, and, until such time
as a financial institution is selected, if ever, the City shall
serve as Agent for the Series II Bonds.
SECTION 24. Certified CoDies. The Clerk shall furnish
a certified copy of this Resolution to the Treasurer, the Agent and
the Auditor-Controller of the County.
III
III
III
III
III
1/11/9~(1398.~ 14
ORtG ~L
I HEREBY CERTIFY that the foregoing Resolution was passed
and adopted by the City Council of the City of Bakersfield at a
regular meeting thereof held on the 12th day of January 1994, by
the following vote:
AYES: COUNCILI~IEMBERS McDERMOTt, EDWARDS, DeMOND, SMITH. BRUNNI, ROWI. ES, SALVAGGIG
NOES: COUNCILMEMDERS
A~STAIN: COUNCILMEMBERS
ABSENT: COUNCILMEMBERS
City Clerk and Ex Officio
Clerk of the Council of the
City of Bakersfield
APPROVED this 12th day of January 1994
MAYO~e i~~ty of Bakersfield
APPROVED AS TO FORM:
BURKE, WILLIAMS & SORENSEN,
Bond Counsel
By: Richard H% Har~rove
COUNTERSIGNED:
of BaATTO~eEts;~e~dhe
= FRE:I:~BOND~00843\505\1398.7 =
1/11/94(1398.7) 15
EXHIBIT A
UNITED STATES OF AMERICA
STATE OF CALIFORNIA
COUNTY OF KERN
NO ·
CITY OF BAKERSFI~,?.~ ASSESSMENT DISTRICT NO. 86-2
LIMITED OBLIGATION REFUNDING BOND, SERIES II (TAXABLE)
In the opinion of Bond Counsel, interest on this Bond is includable in the
gross income calculations of the Bond Owner for federal income tax purposes
but is exempt from State of California personal income taxes.
PRINCIPAL AMOUNT
BOND DATE
REGISTERED OWNER:
MATURITY DATE INTEREST MATURITY
(September 2) RATE PRINCIPAL
Under and by virtue of the Refunding Act of 1984 for 1915 Act
Improvement Bonds, Division 11.5 of the California Streets and Highways Code (the
"1984 Refunding Act"), the City of Bakersfield, California (the "City"), will,
out of the Redemption Fund on the maturity date specified above for the payment
of the Series II Bonds issued upon the unpaid reassessments made for the
refunding and reassessment more fully described in proceedings taken pursuant to
Resolution of Intention No. 1114, adopted by the City Council of the City on
January 12, 1994, pay to the registered owner hereof, or registered assigns, on
the maturity date stated above, the principal sum shown hereon in lawful money
of the United States and in like manner pay interest at the rate per annum stated
above, payable semiannually on March 2 and September 2 in each year commencing
September 2, 1994. This Series II Bond bears interest from the interest payment
date next preceding its date of authentication and registration unless it is
authenticated and registered (i) prior to an interest payment date and after the
close of business on the fifteenth day of the month immediately preceding such
interest payment date, in which event it shall bear interest from such interest
payment date, or (ii) prior to the close of business on the fifteenth day of the
month immediately preceding September 2, 1994, in which event it shall bear
EXHIBIT A
A- 1
interest from its date, until payment of such principal sum shall have been
discharged. Both the principal hereof and redemption premium hereon are payable
upon presentation and surrender hereof at the Office of the Finance Director of
the City, or its successors, as Transfer Agent, Registrar and Paying Agent (the
"Agent"), and the interest hereon is payable by check or draft mailed to the
owner hereof at such owner's address as it appears on the registration books of
the Agent, or at such address as may have been filed with the Agent for that
purpose, as of the fifteenth day of the month immediately preceding each interest
payment date.
This Bond is the one and only bond representing the City of Bakersfield
Assessment District No. 86-2 Limited Obligation Refunding Bonds, issued by the
City under the 1984 Refunding Act and that certain resolution titled "Resolution
of the City Council of the City of Bakersfield Providing for Issuance of
Refunding Bonds and Awarding Sale of Refunding Bonds in Connection With the City
of Bakersfield Assessment District No. 86-2 (Series II - Taxable)," adopted by
the City Council of the City on January 12, 1994 (the "Resolution of Issuance"),
in the aggregate principal amount of not to exceed $1,610,000 for the purpose of
providing means for paying for the refunding and reassessment described in said
proceedings, and is secured by the monies in said Redemption Fund and by the
unpaid portion of said reassessments made for the payment of said refunding and
reassessment, and, including principal and interest, is payable exclusively out
of said Redemption Fund.
This Bond is transferable by the registered owner hereof, in person or
by the owner's attorney duly authorized in writing, at said office of the Agent,
subject to the terms and conditions provided in the Resolution of Issuance,
including the payment of certain charges, if any, upon surrender and cancellation
of this Series II Bond. Upon such transfer, a new registered Series II Bond or
Series II Bonds, of any authorized denomination or denominations, 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 Agent shall be required to make such exchange
or registration of transfer of Series II Bonds between the fifteenth day of the
month immediately preceding any March 2 or September 2 and such March 2 or
September 2.
The City and the Agent may treat the registered owner hereof as the
absolute owner for all purposes, and the City and the Agent shall not be affected
by any notice to the contrary.
The Series II Bonds will not be redeemed in whole and paid in whole in
advance of maturity until on or after September 2, 2001. However, this Series
II Bond, or any portion thereof in the amount of the five thousand dollars
($5,000) or any integral multiple thereof, may be redeemed in part and paid in
part in advance of maturity upon any March 2 or September 2 prior to its maturity
date, by giving at least sixty days notice to the registered owner hereof and by
paying the principal amount thereof plus interest to the date of advanced
maturity (unless sooner surrendered, in which event interest will be paid to the
date of payment of the principal amount) together with the following redemption
premium computed upon the principal amount, or portion thereof, of the Series II
Bond to be redeemed:
EXHIBIT A
1/6/94(~404.1) A - 2
ORIGINAL
Redemption Date
(both dates inclusive)
Closing Date through September 1, 2002
September 2, 2002, through September 1, 2003
September 2, 2003, through September 1, 2004
September 2, 2004, and thereafter
Redemption
Premium
3%
2%
1%
O%
The City will not obligate itself to advance available funds from the
City treasury to cure any deficiency which may occur in the Redemption Fund.
This Series II Bond will continue to bear interest after maturity at
the rate above stated, provided that it is presented at maturity and payment
thereof is refused upon the sole ground that there are not sufficient monies in
said Redemption Fund with which to pay same. If it is not presented at maturity,
interest hereon will run only until maturity.
This Series II Bond shall not be entitled to any benefit under the Act
or the Resolution of Issuance, or become valid or obligatory for any purpose,
until validly executed and registered in accordance with the Act and the
Resolution of Issuance.
IN WITNESS WHEREOF, the City of Bakersfield has caused the Series II
Bond to be executed and registered by its Finance Director and by its City Clerk
and has caused its official seal to be imprinted hereon all as of ,
1994.
Cl'l~' OF BAKERSFlU.n, CALIFORNXA
City Clerk
Finance Director
[S E AL]
ASSIGNMENT
For value received, the undersigned do(es) hereby sell, assign and
transfer unto
the within-mentioned Series II Bond and
hereby irrevocably constitute(s) and appoint(s)
attorney, to
transfer the same on the books kept for registration hereof with full power of
substitution in the premises.
Dated:
EXHIBIT A
1/6/94(1404.1) A - 3
ORIGI~,iAL