HomeMy WebLinkAboutRES NO 65-83RESOLUTION NO. 65-83
RESOLUTION OF THE COUNCIL OF THE CITY OF
BAKERSFIELD DETERMINING THE UNPAID LIST AND
PROVIDING FOR THE ISSUANCE OF $6,189,877.00
PRINCIPAL AMOUNT OF IMPROVEMENT BONDS
ASSESSMENT DISTRICT NO. 82-1
RESOI, UTION OF INTENTION NO. 955)
WHEREAS, this Council of the City of Bakersfield, Cali-
fornia, by Resolution of Intention No. 955, duly adopted on March
16, 1983, declared its intention to acquire improvements pursuant
to the Municipal Improvement Act of 1913 in an assessment dis-
trict in this City and in the County of Kern pursuant to Resolu-
tion No. 82-297 of the County of Kern adopted July 7
, i98 2 , therein provided for and designated City of
Bakersfield Assessment District No. 82-1 (Stockdale Sewer Trunk-
line), and further declared its intention to ~ssue Bonds under
the Improvement
reference being
955 for further
Bond Act of
hereby made
particulars;
]915 te ~epres~mt u*/t?aid ~ssess~ae~-~ka,
ke sai~] Reso] ut~on of InteP. tion No.
and
WUEREAS, an assessment in said assessment district was
thereaft£r duky confirmed, adopted and levied by resolution of
this City Council adopted on April 20, i[983, and said acquisition
was thereby ordered to be made, and the assessment and diagram
and the notice thereof were ordered to be duly recorded, upon
which the assessment shall become a lien upon the land upon which
it was levied and become due and payable, all
vided by law; and
WHEREAS, all persons owning property
district waived the cash payment period; and
WHEREAS, the Finance Director of the
field has made and filed with the City Clerk
Bakersfield a complete list Of all unpaid
assessment, based upo~ said waiver showing
in the manner pro-
xn said assessment
City of Bakers-
of the City of
assessments upon said
unpaid assessments in
the aggregate amount of $6,189,877.00, and said Finance Director
has determined, and this Council hereby finds and determines,
that said assessments so listed as unpaid upon said list of un-
paid assessments are unpaid and that the aggregate amount thereof
is said amount of $6,189,877.00.
NOW, THEREFORE, BE IT RESOLVED AND ORDERED BY THE
COUNCIL OF THE CITY OF BAKERSFIELD, AS FOLLOWS:
Section 1. This City Council has reviewed all proceed-
ings heretofore taken relative to the foregoing and has found, as
a result of such review, and does hereby find and determine that
all acts, conditions and things required by law to exist, happen
and be performed p~ecedent to and in the issuance of Bonds as
heretoafter provided do exist, have happened and have been per-
formed in due time, form and manner as required by law, and the
City of Bakersfield is now authorized pursuant to each and every
requirement of law to issue Bonds in the manner and form as in
this resolution provided, subject only to the recording of the
Notice of Assessment.
Section 2. Improvement Bonds of the City of Bakers-
field in the aggregate principal amount of $6,189,877.00 shall be
issued upon and shall represent and shall be secured by said
unpaid assessments.
Section 3. Said
Bonds shall be issued, upon
hereinafter set forth upon
ments in accordance with the
Act of 1915 (Division 10 of
pursuant to said Resolution
$6,189,877.00 principal amount of
the recording of the Assessment, as
the security of said unpaid assess-
provisions of the Improvement Bond
the Streets and Highways Code and
of Intention No. 955. The Bonds
shall be known as "Improvement Bonds, City of Bakersfield Assess-
ment District 82-1", hereinafter sonletimes referred to as "Bond"
and "Bonds". The Bonds shall be issued as coupon Bonds; and, ex-
cept as provided in Section 4 hereof, shall be dated April 2,
-2-
1983, shall be numbered and of the denomination and mature as set
forth in Exhibit "A" attached hereto and by reference incorpo-
rated herein. The Bonds are registrable as to principal and in-
terest or as to principal only.
Section 4. The Bonds shall bear interest from their
date until paid at the rate or rates determined at the time of
the sale thereof, but not to exceed twelve percent (12%) per
annum, payable on January 2, 1984, and semiannually thereafter on
January 2 and July 2 of each year. Such interest, unless the
Bonds are registered, shall be evidenced by coupons attached to
each Bond, which shall be numbered in consecutive numerical order
from I upwards in the order of their respective maturities, and
each of said coupons shall represent six months' interest (except
the first coupon on the Bonds, which shall represent interest
from its date) on the Bond to which it is attached.
Each 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 it is not presentee at maturity, interest thereon will
run only until maturity.
Section 5. Both the principal of and interest on the
Bonds shall be payable in lawful money of the United States of
America at the office of the Finance Director of the City of
Bakersfield, 1501 Truxtun Avenue, Bakersfield, California, or
such paying agent as may be approved by the City of Bakersfield.
Principal and interest on any fully registered Bonds shall be
paid to the registered owner by check or warrant mailed to the
address entered in the registry book required to be kept pursuant
to Section 12 hereof.
Section 6. The Bonds, the coupons attached thereto,
and the registration endorsement shall each be in substantially
-3-
the form attached hereto as Exhibit "B". Said exhibit is incor-
porated herein by reference, the blank spaces therein to be
filled in to conform to the provisions of this resolution.
Section 7. The Finance Director and the Clty Clerk of
the City of Bakersfield are hereby authorized and directed,
respectively, as such officers, to execute eac~ of the Bonds on
behalf of the City, and said Clerk is hereby authorized and
directed to affix the official seal of the City thereto. Such
seal may be prJ_nted, engraved, lithographed or otherwise placed
by facsimile thereon. Said ?inance Director is hereby authorized
to cause the Bends to be signed by printed, lithographed or en-
graved facsimile signature, and is hereby authorized and directed
to cause each of the interest coupons to be signed by printed,
lithographed or engraved facsimile signature. Such signing and
sealing as herein provided shall be a sufficient and binding
execution of the Bonds and coupons by the City. In case any of
such officers whose signature appears on the Bonds or coupons
shall cease to be such officer before the delivery of the Bonds
to the purchases, such signature shall nevertheless be valid and
sufficient for all purposes the same as though such officer had
remained in office until the delivery of the Bonds.
Section 8. The unpaid assessments as shown on said
list hereinabove referred to and as determine(] by said Finance
Director and this City Council, together with interest thereon
computed at the rate specified in the Bonds, shall remain and
constitute a trust fund for the redemption arid payment of the
principal of the Bonds and for the interest due thereon, and said
assessments and each installment thereof and the interest and
penalties thereon shall constitute a lien against the lots and
parcels of land on which they are made, until the same be paid.
The Finance Director of the City of Bakersfield shall annually
make a record in his office showing the several installments of
-4-
principal and interest on said assessment which are to be
collected for the forthcolning year during the term of the Bonds.
An annual installment of said unpaid assessments shall be payable
and shall be collected in each year corresponding in amount to
the amount of Bonds unpaid and to accrue that year, which amount
shall be sufficient to pay the Bonds as the same become due, and
an annual installment of interest on said unpaid assessments
shall be payable and shall be collected in each year correspond-
ing in amount to the amount of interest which will accrue on the
Bonds outstanding for such year, and which shall be sufficient to
pay the interest coupons thereof that shall become due in the
next succeeding January and July. The annual proportion of each
assessment coming due in any year, together with the annual
interest on such assessment, shall be payable Jn the same manner
and at the same time and in the same installments as the general
taxes of the County of Kern on real property are payable, and
said assessment installments and said annual interest on the
assessment shall be payable and become delinquent on the same
dates and in the same proportionate amounts and bear the same
proportionate penalties and interest after delinquency as do the
general taxes on real property in the County of Kern.
Section 9. There is hereby created and established a
fund to be known as the "City of Bakersfield Assessment District
NO. 82-1 Improvement Bond Redemption Fund", which shall be kept
by the Finance Director of the City of Bakersfield. All sums
received by said Finance Director from the collection of said
unpaid assessments, and of the interest and penalties thereon,
shall upon collection be forthwith paid into said fund, and all
sums to become due for the principal of and the interest on the
bonds shall be paid from sai~J fund, and the Bonds and the inter-
est thereon shall not be paid out of any other funds. Any sur-
-5-
plus remaining in said fund after payment of all Bonds and the
interest thereon shall be applied as authorized by law.
Section 10. Upon placement of the proceeds from the
sale of said bonds in the improvement fund, the City Finance
Director shall forthwith transfer the sum of $435,000.00 from said
fund into a special reserve fund, which shall be designated by the
name and/or number of the improvement or assessment district. The
money in said special fund shall be administered by the City
Finance Director in accordance with and pursuant to the provisions
of Part 16 of the Improvement Bond Act of 1915, provided only that
proceeds from (1) investment of moneys in the reserve fund and (2)
redemption or sale of the properties with respect to which payment
of delinquent assessments and interest thereon was paid from the
reserve fund, shall be credited to the reserve fund only to the
extent that the amount credited to the reserve fund will not re-
sult in the bonds becoming "arbitrage bonds" as defined in Section
103 (c) of the Internal Revenue Code of 1954, as amended, and
regulations promulgated by the United States Department of the
Treasury thereunder. To the extent that such proceeds, or any
portion thereof, would cause the bonds to become "arbitrage bonds"
if credited to the reserve fund and invested at a higher yield
than permitted by said Section 103 (c) and said regulations, then
such proceeds, or portion thereo~, shall be credited upon the
assessments, provided only that in the event crediting of any pot-
paid in
tion of such proceeds upon assessments not theretofore
full in cash would result in moneys in the bond redemption fund
~emaining therein for a period of more than twelve (12) months,
then any portion of such proceeds which would otherwise remain in
the bond redemption fund for a period of more than twelve (12)
months shall be used to call bonds prior to their maturity date on
the earliest call date next succeeding the deposit thereof in the
redemption fund.
-6-
Section 11. There is hereby created and established a
fund to be known as the "City of Bakersfield Assessment District
No. 82-1 Improvement Fund", which shall be kept by the Finance
Director of the City of Bakersfield. All proceeds of the sale of
the Bonds shall be placed by said Finance Director to the credit
of said fund and shall be kept separate and distinct from all
other City of Bakersfield funds. There shall likewise be paid
into said fund all payments heretofore made upon the assessment
levied as above recited. All moneys in said fund may, and upon
direction of this City Council shall, be invested in any lawful
investments maturing not later than the date on which such moneys
are required for disbursement as herein provided; all such moneys
shall be withdrawn only upon checks or warrant of the City. All
interest earned on such investments shall be credited to said
fund. The moneys in said fund shall be applied exclusively for
the purpose of paying the cost of the acquisition referred to in
Section 2 of this resolution, including payment of the incidental
expenses in connection with such acquisition; provided, however,
that after completion ot said acquisition and the payment of all
claims from said fund, any surplus moneys remaining in said fund
(as determined by this City Council) shall be used in the manner
provided in Section 10427 of said Streets and Highways Code.
Section 12. The Finance Director of the City of
Bakersfield is directed to cause the Bonds to be prepared in
accordance with this resolution, and to procure their execution
by the proper officers, and to deliver them, when so executed, to
the purchaser or [~urchasers thereof, on receipt of the purchase
price. Said Finance Director and the Clerk of the City of
Bakersfield are further authorize~ and directed to make, execute
and deliver to the purchaser of the Bonds a signature and no-
litigation certificate in the form .customarily required by pur-
chaser of municipal Bonds, certifying to the genuineness and due
-7-
execution of the Bonds and further certifying to all facts within
their knowledge relative to any litigation which may or might
affect City of Bakersfield Assessment District No. 82-1 of the
City, said officers or the Bonds, and said Finance Director is
further authorized and directed to make, execute and deliver to
the puchaser of the Bonds a receipt in the form customarily
required by purchasers of municipal Bonds, evidencing the payment
of the purchase price of the Bonds, which receipt shall be con-
clusive evidence t~at said purchase price has been paid and has
been received by the City. Any purchaser or subsequent taker or
holder of the Bond is hereby authorized to rely upon and shall be
justified in relying upon such signature
ficate and such receipt with respect to
and no-litigation certi-
the Bonds executed and
delivered pursuant to the authority of this resolution.
Section 13. The Finance Director shall keep or cause
to be kept a register showing the series, number, date, amount,
rate of interest, the last known holder of each Bond, and the
number and amount of each interest coupon paid. The Finance
Director shall cancel or cause to be cancel]ed each Bond and
coupon paid.
Section 14. Each Bond outstanding may be redeemed and
paid in advance of maturity upon the second day of January or
July in any yeas by giving at least sixty (60) days notice and by
paying the principal amount thereof together with a premium equal
to five percent (5%) of the principal plus interest to the date
of advanced maturity, unless sooner surrendered, in which event
said interest will be paid to the date of payment, all in the
event and as provided in the Improvement Bond Act of 1915. The
premium shall be paid, to the extent available, from surplus
funds from the fund created in Section 10 hereof.
-8-
The provisions of Part 11.1 of said Bond Act are appli-
cable to the advance payment of assessments and to the calling of
bonds.
The Finance Director shall call for redemption and
retire Bonds upon prepayment of assessments in amounts sufficient
there for, or whenever sufficient surplus funds are available
therefor in the redemption fund. In selecting Bonds for retire-
ment, the lowest numbered Bonds of the various annual maturities
shall be chosen pro rata in a manner intended to disturb as
little as possible the relationship of unpaid assessments to
Bonds outstanding.
Section 15. An appropriate book shall be kept in the
Finance Director's office showing at all times what Bonds are
registered and in whose names, and, upon presentation of the
Bonds for such purpose, the Finance Director may prescribe,
register or transfer or cause to be registered or transferred, in
said registry book, the Bonds as herein provided.
Section 16. Each coupon Bond herein authorized may be
registered as to both principal and interest only, upon the
written request of the holder and upon presentation of the Bond
to the Finance Director for such purpose.
(a) When a coupon Bond is presented for registration
as to both principal and interest, the coupons shall be removed
therefrom and cancelled (or preserved in a place of safekeeping,
at the option .of the Finance Director), and the number of the
Bond, the name and address of the holder in whose name it is to
be registered, the date of such registration and a notation that
the Bond is registered as to both principal and interest shall be
entered in the registry book, and appropriate endorsement thereof
shall be made by the Finance D~rector in the space provided
therefor on the back of the Bond. Until such registration is
discharged as hereinafter provided, the interest when due shall
-9-
be payable only to the registered owner and the principal when
due shall be payable only to such owner upon surrender of the
Bond to the Finance Director.
(b) A registered coupon Bond may be transferred only
by the registered owner, in person or by attorney duly authorized
in writing, by s written instrument of transfer in form
acceptable to the Finance Director, and by the Finance Director
endorsing such transfer on the Bond and in the registry book. No
transfer shall be required to be made during the fifteen (15)
days next preceding an interest payment date.
(c) A registered coupon Bond may be discharged from
registration upon written request of the registered owner. In
such case, the Finance Director shall transfer the Bond to bearer
by appropriate endorsement on the Bond and in the registry book,
cause allL unmatured coupons that have been removed from the Bond
to be reattached to the Bond (such coupons to be reprinted, if
necessary), and deliver the Bond and coupons to the owner, and
thereupon negotiability and transferability by delivery shall be
restored.
(d) Coupon Bonds that have been discharged from regis-
tration are subject to successive registrations and transfers in
the manner heretofore provided.
(e) The person requesting
discharge from registration of coupon
precedent to the exercise of such
Director's reprinting the coupons and
registration, transfer or
Bonds shall, as a condition
privilege, pay the Finance
any tax or other governmen-
tal charge required to
Section 17.
Section 13 hereof shall
be paid with respect thereto.
Any ~ully registered Bond provided for in
not be valid or obligatory for any purpose
until the Fin,~nce Director shall have entered in the registry
book required to be kept pursuant to Section 14 hereof the number
of the Bond, the name and address of the registered owner, the
-10-
date of such registration and a notation that it is registered as
to principal and interest, and until the registry date and regis-
tered owner's name have been endorsed by the Finance Director in
the space provided therefor on the back of the Bond. Thereafter,
until such Bond has been fully paid or until such Bond is sur-
rendered for transfer or in exchange for coupon Bonds, the inter-
est thereon and the principal thereof shall be payable only to
the registered owner last entered in said book and upon said
Bond.
Such Bond may, in accordance with its terms, be trans-
ferred irl the registry book by the registered owner, in person or
by the registered owner's duly authorized attorney in writing,
upon surrender of such registered Bond for registration of such
transfer, together with a duly executed written instrument of
transfer in form approved by the Finance Director.
The Finance Director shall require the payment by the
holder of the Bond requesting such transfer of any tax or other
governmental charge required to be paid with respect to such
transfer.
No transfer of the fully registered Bond shall be re-
quired to be made during tile fifteen (15) days next preceding an
interest payment date.
Section 18. The fully registered Bond may be surren-
dered and exchanged at the office of the Finance Director for
coupon Bonds of like series of authorized denominations aggre-
gating in principal amount the unpaid principal amount of said
registered Bond. All coupon Bonds delivered in exchange shall
have attached thereto all unmatured coupons appertaining thereto
(and any matured coupons but unpaid). The Finance Director shall
require the p.tyment by the holder of the Bond requesting such
exchange of an]; tax or other governmental charge required to be
paid with respect to such exchange. No such exchange shall be
-1] -
required to be made during the fifteen (15) days next preceding
an interest payment date.
Section 19. For the protection and security of the
Bonds, the City of Bakersfield covenants and agrees to and with
the holders of the Bonds to commence and diligently prosecute to
completion pursuant to Section 8830 et seq. of the Streets and
Highways Code of the State of California
as necessary regarding delinquent installments
which secure the Bonds that are to be issued
such foreclosure actions
of any assessments
hereunder. Such
foreclosure actions shall be commenced within one hundred twenty
(120) days of receipt of written request for such foreclosure
from the holder of any Bonds, which have part or all of any
coupons or install]~tents unpaid because of insufficient funds in
the Bond redemption fund of the City for said Bonds. In any
event, such foreclosure shall be commenced by the City not later
than two (2) years after the due date of such delinquent install-
ments remaining unpaid.
......... o0o .........
I BEREBY CERTIFY that. the foregoing Resolution was
passed and adopted by the Council of the City of Bakersfield at a
regular meeting thereof held on the 20th day of April ,
1983, by the following vote:
CITY CLER~ and'Ex Officio Clerk
of the Council of the City of
Bakersfield
APPROVED.this 20th day of April
MAYOR Bakersfield
-12-
, 1983.
APPROVED as to form:
Bakersfield
-13-
BOND NUMBERS
(inclusive)
EXHIBIT "A"
PRINCIPAL
Maturing
Maturity
Year (July 2)
1 - 18
19 - 48
49 - 83
84 123
124 163
164 - 213
214 - 268
269 - 328
329 - 393
394 - 463
464 - 543
544 633
634 728
729 - 833
834 - 953
954 - 1083
1084 - 1238
$ 89,877
150,000
175,000
200,000
200,000
250,000
275,000
300,000
325,000
350,000
400,000
450,000
475,000
525,000
600,000
650,000
775,000
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
UNITED STATES OF AMERICA
STATE OF CALIFORNIA
COUNTY OF KERN
IMPROVEMENT BOND
CITY OF BAKERSFIELD
ASSESSMENT DISTRICT NO.
82-1
No. $
Under and by virtue of the Improvement Bond Act of 1915,
Division 10 of the Streets and Highways Code, the City of Bakers-
field will on the second day of April, 1983, Out of the redemp-
tion fund for the payment of the Bonds issued upon the unpaid por-
tion of the assessments made for the improvement in an assessment
district designated "City of Bakersfield Assessment District No.
82-1, which said improvement and assessment district are more
fully described in Resolution of Intention No. 955 passed by the
City Council of the City of Bakersfield on March 16, 1893, pay to
the bearer the sum of
DOLLARS ( $ )
with interest thereon from April 2, 1983, at the rate of
percent ( %) per annum, all as is hereinafter specified, at
office of the Crocker National Bank, Corporate Trust Division,
Paying Agent, in San Francisco, California.
the
the
This Bond is one of several annual series of Bonds of
like date, tenor and effect, but differing in amounts, and matu-
rities, issued by said City under said law for the purpose of pro-
viding means for paying for the improvement described in said
Resolution of Intention and is secured by the moneys in said re-
demption fund and by the unpaid portion of the assessments made
for the payment of said improvement, and including principal and
interest, is payable exclusively out of said fund.
The interest is payable semiannually, to wit: On the
second day of January and July in each year hereafter, upon pre-
sentation of the proper coupons therefor; provided, that the first
of said coupons is for the interest to the second day of January,
1984, and thereafter the interest coupons are for the semiannual
interest.
This Bond will continue to bear interest after maturity
at the rate above stated; provided, it is presented at maturity
and payment thereof is refused upon the sole ground that there are
not sufficient moneys in said redemption fund with which to pay
the same. If it is not presented at maturity, interest thereon
will run until maturity.
This Bon~ may be registered as to principal and interest
or as to principal only, with the privilege of transfer, discharge
from registration and successive registration, upon written re-
quest of the owner and presentation of the Bond to the Paying
Agent, and payment of the charges, if any, all as set forth in the
resolution providing for the issuance hereof.
This Bond may be redeemed and paid in advance of matur-
ity upon the second day of January or July in any year by giving
notice provided in said law and by paying principal and accrued
interest together with a premium equal to five percent (5%) of the
principal.
EXHIBIT "B"
For the protection and security of the Bonds, the City
of Bakersfield covenants and agrees to and with the holders of the
Bonds to commence and diligently prosecute to completion pursuant
to Section 8830 et seq. of the Streets and Highways Code of the
State of California such foreclosure actions as necessary regard-
ing delinquent installments of any assessments which secure the
Bonds that are to be issued hereunder. Such foreclosure actions
shall be commenced within one hundred twenty (120) days of receipt
of written request for such foreclosure from the holder of any
Bonds which have part or all of any coupons or installments unpaid
because of insufficient funds in the Bond redemption fund of the
City for said Bonds. In any event, such foreclosure shall be
commenced by the City not later than two (2) years after the due
date of such delinquent installments remaining unpaid.
IN WITNESS WHEREOF, the City of Bakersfield has caused
this Bond to be signed by the Finance Director of said City and by
its Clerk, has caused the coupons to be signed by its Finance
Director, and has caused its Clerk to affix thereto its corporate
seal, all on the 2nd day of April, 1983.
(SEAL)
FII~ANCE DIRECTOR OF THE CITY OF
BAKERSFIELD
CITY CLERK OF THE CITY OF BAKERSFIELD
EXHIBIT "D"
{il)
COUPON FORM: The coupons to be attached
Bonds shall be substantially in the following form:
CITY OF BAKERSFIELD, California, will on
the due date hereof, unless the Bond
specified herein is redeemed prior there-
to, pay to bearer (unless said Bond is
registered as to both principal and inter-
est) the suni hereon at the principal office
of the Crocker National Bank, Corporate
Trust Division in San Francisco, Califor-
nia, upon surrender hereof, the sum shown
hereon in lawful money of the United
States, as interest on its IMPROVEMENT BOND
designated ASSESSME~T DISTRICT NO. 82-1,
dated ,
Due
$
Coupon No.
No.
to the coupon
Finance Director of the City of Bakersfield
REGISTRATION FORM: The form of endorsement for regis-
tration on the coupon Bonds shall be subtantially as follows:
This Bond is registered in the name of the registered
owner last entered below and both the principal of and interest on
this Bond are payable only to such owner, unless registered as to
principal only, in which event only the principal is so payable;
provided, however, that this Bond may be registered to bearer and
thereby discharged from registration and the negotiability hereof
restored.
Note: No writing below except by the Paying Agent of the City
of Bakersfield.
Date of Type of
Registry Registration*
Principal Only
and Interest
Name and Address
of Registered Owner
Signature of
Paying Agent
Principal Only
and Interest
Principa] Only
and Interest
* If registration
Interest"; if as
"only".
is as to principal only, strike the words "and
to principal and interest, strike the word
EXHIBIT "B"
(iii)