HomeMy WebLinkAboutRES NO 232-87RESOLUTION NO. 232-87
RESOLUTION OF THE COUNCIL OF THE CITY OF BAKERSFIELD
CALIFORNIA, AUTHORIZING AND PROVIDING FOR THE ISSUANCE
OF BONDS IN THE MATTER OF ASSESSMENT DISTRICT NO. 86-1
(PANOP3~MA HIGHLANDS)
WHEREAS, the CITY COUNCIL of the CITY OF BAKERSFIELD, CALIFORNIA, has heretofore
undertaken proceedings pursuant to the "Municipal Improvement Act of 1913", being
Division 12 of the Streets and Highways Code of the State of California, and has
confirmed assessments upon lands within a special assessment district described in a
Resolution of Intention previously adopted for said improvements, said special
assessment District known and designated as ASSESSMENT DISTRICT NO. 86-1 (PANORAMA
HIGHLANDS) (hereinafter referred to as the "Assessment District"); and,
WHEREAS, said proceedings provided for the issuance of bonds pursuant to the
"Improvement Bond Act of 1915", being Division 10 of the Streets and Highways Code
of the State of California., and it is necessary to establish terms and provisions of
such issuance; and,
WHEREAS, the final unpaid balance to assessment, as well as the denomination and
amounts to mature each year, cannot be determined until following the 30-day cash
collection period after the recordation of said assessment.
NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS:
SECTION 1. Recitals. That the above recitals are all true and correct.
SECTION 2.
Unpaid Assessments. The Treasurer shall, immediately upon the comple-
tion of the 30-day cash collection period, determine the assessments
which are unpaid and the aggregate amount thereof as authorized by
Section 8621 of the Streets and Highways Code ef the State of
California.
SECTION 3.
Term of Bonds. Serial bonds to represent the unpaid assessments, and
bear interest at a rate not to exceed the current legal maximum rate of
12% per annum, will be issued in the manner provided in the "Improve-
ment Bond Act of 1915", being Division 10 of the Streets and Highways
Code of the State of California, the last installment of which bends
shall mature a maximum of and not to exceed FOURTEEN (14) years from
the second day of September next succeeding twelve (12) months from
their date. The provisions of Part 11.1 of said Act, providing an
alternative procedure for the advance payment of assessments and the
calling of bonds shall apply.
SECTION 4.
Registered Bonds. Said bonds shall be issuable only as fully
registered bonds in the denomination of $5,000, or any integral
multiple thereof, except for one bond maturing in the first year of
maturity, which shall include the amount by which the total issue
exceeds the maximum integral multiple of $5,000 contained therein.
SECTION 5.
Date of Bonds. All of said bonds shall be dated the 6th day of
January, 1988, and interest shall accrue from that date.
SECTION 6.
SECTION 7.
SECTION 8.
SECTION 9.
SECTION 10.
Maturity and Denomination. The bonds shall be issued in serial form
with annual maturities on September 2nd of every year succeeding twelve
(12) months after their date, until the whole is paid. The amount
maturing each year shall be such as to result in approximately equal
annual debt service during the term of the issue as reflected by the
interest rate and/or rates and principal amounts maturing in the respec-
tive years of maturity, and the Treasurer shall, immediately upon
completion of the cash collection period, provide for the issuance and
delivery of the bonds.
Interest. Each bond shall be of a single maturity and shall bear
interest at the rate as set forth in the approved Bond Purchase
Contract for said bonds from the interest payment date next preceding
the date on which it authenticated and registered, unless said bond is
authenticated and registered as of an interest payment date, in which
case it shall bear interest from said interest payment date, or unless
said bond is authenticated and registered prior to the first interest
payment date, in which case it shall bear interest from its date, until
payment of its principal sum has been discharged.
Place of Payment. The principal on the bonds shall be payable in
lawful money of the United States of America upon surrender of the bond
at the principal corporate trust office of Bank of America National
Trust and Savings Association, as paying agent, in San Francisco,
California.
Interest on said bonds shall be paid by check or draft to the regis-
tered owner thereof at his address as it appears on the books of regis-
tration, or at such address as may have been filed with the Registrar
for that purpose, as of the 15th day immediately preceding said
interest payment date.
Redemption. This bond, or a portion thereof if issued in a denomina-
tion greater than $5,000, shall be subject to redemption and payment in
advance of maturity in increments of $5,000 as provided in Section 8768
of the Streets and Highways Code, on the 2nd day of March or September
in any year, by giving the notice provided in said law to the regis-
tered owner thereof at his address as it appears on the books of regis-
tration and by paying principal of and accrued interest on such
redeemed amount, together with a premium equal to three percent (3%) of
the redeemed principal amount. If less than the entire bond is
redeemed, the unredeemed portion shall be reissued to the registered
owner thereof.
Transfer of Registered Bonds. Any fully registered bond may, in accor-
dance with its terms, be transferred upon the books of registration
required to be kept pursuant to the provisions of Section 11 by the
owner in whose name it is registered, or by his duly authorized
attorney or legal representative, upon surrender of such fully regis-
tered bond for registration of such transfer, accompanied by delivery
of a written instrument or transfer in a form approved by the Registrar
and by the owner of said bonds, duly executed.
SECTION 11.
SECTION 12.
SECTION 13.
SECTION 14.
The Registrar shall require the payment by the bondholder requesting
such transfer of any tax or other governmental charge required to be
paid with respect to such transfer and such charges as provided for in
the system of registration for registered debt obligations.
No transfer of fully registered bonds shall be required to be made
during the fifteen (15) days next preceding each interest payment date.
Exchange of Registered Bonds. Fully registered bonds may be exchanged
at the principal corporate trust office of the Registrar in San
Francisco, California, for a like aggregate principal amount of bonds
of the same series, interest rate and maturity, subject to the terms
and conditions provided in the system of registration for registered
debt obligations, including the payment of certain charges, if any,
upon surrender and cancellation of this bond. Upon such transfer and
exchange, 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.
Books of Registration. There shall be kept by the Registrar sufficient
books for the registration and transfer of the bonds arid, upon presenta-
tion for such purpose, the Registrar shall, under such reasonable
regulations as it may prescribe, register or transfer or cause to be
registered or transferred, on said register, bonds as hereinbefore
provided.
Execution of Bonds. The bonds shall be executed in facsimile by the
Treasurer and by the City Clerk, and the corporate seal shall be
imprinted in facsimile on the bonds. The bonds shall then be delivered
to the Registrar, for authentication and registration. In case an
officer who shall have signed or attested to any of the bonds by
facsimile or otherwise shall cease to be such officer before the authen-
tication, delivery and issuance of the bonds, such bonds nevertheless
may be authenticated, delivered and issued, and upon such authentica-
tion, delivery and issue, shall be as binding as though those who
signed and attested the same had remained in office.
Authentication. Only such of the bonds as shall bear thereon a certifi-
cate of authentication substantially in the form below, manually
executed by the Registrar, shall be valid or obligatory for any purpose
or entitled to the benefits of this Resolution, and such certificate of
the Registrar shall be conclusive evidence that the bonds so authenti-
cated have been duly executed, authenticated and delivered hereunder,
and are entitled to the benefits of this Resolution.
FORM OF CERTIFICATE OF AUTHENTICATION AND REGISTRATION
This bond has been authenticated and registered on
as Registrar
By:
SECTION 15.
Negotiability, Registration and Transfer of Bonds. The transfer of any
bond may be registered only upon such books of registration upon surren-
der thereof to the Registrar, together with an assignment duly executed
by the owner or his attorney or legal representative, in satisfactory
form. Upon any such registration of transfer, a new bond or bonds
shall be authenticated and delivered in exchange for such bond, in the
name of the transferee, of any denomination or denominations authorized
by this Resolution, and in an aggregate principal amount equal to the
principal amount of such bond or principal amount of such bond or bonds
so surrendered. In all cases in which bonds shall be exchanged or
transferred, the Registrar shall authenticate at the earliest practical
time, bonds in accordance with the provisions of this Resolution. All
bonds surrendered in such exchange or registration transfer shall forth-
with be cancelled. The legislative body may make a charge for every
such exchange or registration of transfer of 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. The
Registrar shall not be required to make such exchange or registration
of transfer of bonds during the fifteen (15) days inu~ediately preceding
any March 2nd or September 2nd.
SECTION 16.
Ownership of Bonds. The person in whose name any bond shall be regis-
tered shall be deemed and regarded as the absolute owner thereof for
all purposes, and payment of or on account of the principal and redemp-
tion premiums. if any, of any such bond, and the interest on any such
bond, shall be made only to or upon the order of the registered owner
thereof or his legal representative. All such payments shall be valid
and effectua]L to satisfy and discharge the liability upon such bond,
including the redemption premium, if any, and interest thereon, to the
extent of the sum or sums so paid.
SECTION 17.
Mutilated, Destroyed, Stolen or Lost Bonds. In case any bond secured
hereby shall become mutilated or be destroyed, stolen or lost, the
legislative body shall cause to be executed and authenticated a new
bond of like date and tenor in exchange and substitution for and upon
the cancellation of such mutilated bond or in lieu of and in substitu-
tion for such bond destroyed, stolen or lost, upon the owner's paying
the reasonable expenses and charges in connection therewith, and, in
the case of a bond destroyed, stolen or lost, his filing with the legis-
lative body of evidence satisfactory to it and to the Registrar thereof
that such bond was destroyed, stolen or lost, and of his ownership
thereof, and furnishing the legislative body with indemnity satisfac-
tory to it.
SECTION 18.
Cancellation of Bonds. All bonds paid or redeemed, either at or before
maturity, shall be cancelled upon the payment or redemption of such
bonds, and shall be delivered to the Registrar when such payment or
redemption is made. All bonds cancelled under any of the provisions of
this Resolution shall be destroyed by the Registrar in accordance with
the applicable provisions of the law, which shall execute a certificate
in duplicate describing the bonds so destroyed, and shall retain said
executed certificate in its permanent files for the issue.
SECTION 19.
Creation of Funds. The Treasurer is hereby authorized and directed to
establish the following Funds for purposes of making payment for the
costs and expenses for the works of improvement and payment of
principal and interest on the bonds. The Funds to be created are desig-
nated as follows:
IMPROVEMENT FUND: The proceeds from the sale of the bonds, after
deposit of required amounts in the Reserve Fund and Redemption Fund,
shall be placed in the Fund hereby created, pursuant to Sections 10602
and 10424 of the California Streets and Highways Code, as amended,
which shall be called the "Improvement Fund", and the monies in said
Fund shall be used only for the purposes authorized in said assessment
proceedings, and specifically to pay for the costs and expenses of the
construction or acquisition of the authorized public capital improve-
ments, together with all incidental expenses. Any surplus in the
Improvement Fund after completion of the improvements shall remain in
the Improvement Fund for a period of not less than two (2) years from
the receipt of bond proceeds as provided in Section 10427.1 of the
California Streets and Highways Code, and thereafter shall be utilized
or distributed as determined by the legislative body.
REDEMPTION FUND: The Treasurer is hereby authorized and directed to
keep a Redemption Fund designated by the name of the proceedings, into
which he shall place all sums received for the collection of the assess-
ments and the interest thereon, together with all penalties, if
applicable.
Principal of and interest on said bonds shall be paid to the registered
owner out of the Redemption Fund created pursuant te Section 8671 of
the California Streets and Highways Code. Accrued interest paid by the
purchaser of the bonds, if any, shall be deposited in the Redemption
Fund. In all respects not recited herein, said bonds shall be governed
by the provisions of the "Improvement Bond Act of 1915", Division 10 of
the California Streets and Highways Code, as amended. Under no circum-
stances shall the bonds or interest thereon be paid out of any other
fund except as provided by law.
RESERVE FUND: Pursuant to Part 16 of Division 10 of the California
Streets and Highways Code, as amended, there shall be created a special
reserve fund for the bonds to be designated by the name of the Assess-
ment District and specified as the special "Reserve Fund". The Reserve
Fund shall be funded as follows: The initial designated amount (8%) of
the net bond proceeds) shall be deposited in the Reserve Fund out of
said bond proceeds.
Monies in the Reserve Fund shall be applied as follows:
Amounts in said Reserve Fund shall be transferred to the Redemption
Fund for the bonds if, as a result of delinquencies in the payment
of assessments, there are insufficient monies in said Redemption
Fund to pay principal of and interest on the bonds. Amounts so
transferred shall be repaid to the Reserve Fund from proceeds from
the redemption or foreclosure of property with respect to which an
assessment is unpaid and from payments of the delinquent
assessments;
On July ]5 of each year the amount of interest earned to the preced-
ing June 30 by the investment of monies in the Reserve Fund in
permitted investments, and not previously transferred, shall be
transferred from the Reserve Fund to the Redemption Fund, in the
manner provided in Part 16 of said Division 10;
The amount of the annual Reserve Fund disbursement of earned
interest shall be credited toward installments of unpaid assess-
ments each year during which any part of the bonds remain outstand-
ing. The Auditor's Record, prepared pursuant to Section 8682 of
the Streets and Highways Code, shall reflect credits against each
of the unpaid assessments in the manner provided in Section 10427.1
of said Streets and Highways Code, in amounts equal to each
parcel's proportionate share of the annual reserve fund
disbursement.
No portion of the annual Reserve Fund disbursement shall be trans-
ferred in any year in excess of the amount which would cause the
Reserve Fund to fall below the original amount of the Reserve Fund,
minus adjustments to reflect the discharge of assessments prior to
maturity made to that point.
Whenever monies in the Reserve Fund are sufficient to retire all of
the bonds outstanding, plus accrued interest thereon, such money
shall be transferred to the Redemption Fund for the bonds and
collecticn of the remaining unpaid assessments shall cease.
In the event that any annual Reserve Fund disbursement was not
fully made in any year because to have done so would have caused
the Reserve Fund to fall below the minimum amount for that year,
the Treasurer may thereafter transfer and credit any amounts in
excess of the minimum amount toward the assessment installments due
in subsequent years.
In the event assessments are paid in cash in advance of their final
maturity date, the Treasurer is authorized to reduce the minimum amount
of the Reserve Fund and increase the annual Reserve Fund disbursements
in the proportion in which the assessments paid in cash bears to the
total original unpaid assessments.
SECTION 20.
No City Liability. It is hereby further determined and declared that
the City will not obligate itself to advance any available funds from
the City Treasury to cure any deficiency or delinquency which may occur
in the bond redemption fund by failure of property owners to pay annual
special assessments. This determination shall be clearly set forth and
stated in the title of the bonds to be issued pursuant to these proceed-
ings as authorized and required by Section 8769 of the Streets and
Highways Code of the State of California.
SECTION 21.
Covenant to Foreclose. The legislative body hereby covenants that upon
default of any assessment payment due, it will cause Superior Court
foreclosure proceedings to be brought within one hundred fifty (150)
days of such default and thereafter diligently prosecute to completion
such proceedings. Such foreclosure proceedings may be deferred if
funds are advanced to the special Reserve Fund to keep said Fund
continually at the level set forth in the Section entitled "Reserve
Fund" set forth hereinabove.
SECTION 22.
Covenant to Maintain Tax-Exempt Status. The City covenants that it
will not make any use of the proceeds of the bonds issued hereunder
which would cause the bonds to become "arbitrage bonds" subject to
Federal income taxation pursuant to the provisions of Section 148(a) of
the Code, or to become "Federally-guaranteed obligations" pursuant to
the provisions of Section 149(b) of the Code, or to become "private
activity bonds" pursuant to the provisions of Section 141(a) of the
Code. To that end, the City will comply with all applicable require-
ments of the Code and all regulations of the United States Department
of Treasury issued thereunder to the extent such requirements are, at
the time, applicable and in effect. Additionally, the City agrees to
implement and follow each and every recommendation provided by Bond
Counsel and deemed to be necessary to be undertaken by the City to
ensure compliance with all applicable provisions of the Code in order
to preserve the exemption of interest on the bonds from Federal income
taxation.
SECTION 23.
Covenant Regarding Arbitrage. The City shall not take or permit nor
suffer to be taken any action with respect to the gross proceeds of the
bonds as such term is defined under the Code which, if such action had
been reasonably expected to have been taken, or had been deliberately
and intentionally taken, on the date of issuance of the bonds, would
have caused the bonds to be "arbitrage bonds" within the meaning of
Section 148 of the Code and the regulations promulgated thereunder.
SECTION 24.
Order to Print and Authenticate Bonds. The Treasurer is hereby
instructed to cause bonds, as set forth above, to be printed, and to
proceed to cause said bonds to be authenticated and delivered to an
authorized representative of the purchaser, upon payment of the
purchase price as set forth in the accepted proposal for the sale of
bonds.
SECTION 26.
Arbitrage Certificate. On the basis of the facts, estimates and circum-.
stances now in existence and in existence on the date of issue of the
bonds, as determined by the Treasurer, said Treasurer is hereby autho-
rized to certify that it is not expected that the proceeds of the issue
will be used in a manner that would cause such obligations to be
arbitrage bonds. Such certification shall be delivered to the
purchaser together with the bonds.
SECTION 27.
Designation of Transfer Agent, Paying Agent and Registrar. The BANK OF
AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION is hereby designated
paying agent and registrar with respect to these proceedings and the
bonds to be issued.
APPROVED and ADOPTED this 16th day of December , 1987.
ATTES~:
CITY CLERK
CITY OF BAKERSFIELD
STATE OF CALIFORNIA
MAYOR
CITY OF BAKERSFIELD
STATE OF CALIFORNIA
APPROVED as to form:
t~TfERIM CITY A~iY)RNEY
CITY OF BAKERSFIEI,D
STATE OF CALIFORNIA
STATE OF CALIFORNIA
COUNTY OF KERN
CITY OF BAKERSFIELD
I, CAROL WILLIAMS, CITY CLERK of the CITY OF BAKERSFIELD, ~.~NIA, DO HEREBY
CERTIFY that the foregoing Resolution, being Resolution No. - , was duly
passed, approved and adopted by the City Council, approved and signed by the Mayor,
and attested by the City Clerk, all at the regular meeting of said City Council
held on the 16th day of December , 1987, and that the same was
passed and adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBERS Childs, DeMond, Smith, Ratty, Peter~Dn, McDermott,
Salvaggio
COUNCIL MEM8ERS None
COUNCIL MEMBERS None
COUNCIL MEM8ERS None
EXECUTED this
16th day of December
, 1987, at Bakersfield, California.
CITY CLERK
CITY OF BAKERSFIELD
STATE OF CALIFORNIA