HomeMy WebLinkAboutCC Resolution 8805 (Mariposa Rd Assessment District)RESOLUTION NO. 8805
RESOLUTION AUTHORIZING ISSUANCE OF BONDS
MARIPOSA ROAD ASSESSMENT DISTRICT
The City Council of the City of San Rafael resolves:
Section 1. RECITALS. On November 4, 1991, the City Council
of the City of San Rafael adopted its resolution of intention to
order improvements in Mariposa Road Assessment District, City of
San Rafael, Marin County, California, under the provisions of the
Municipal Improvement Act of 1913 (the "Act"), as amended.
Proceedings taken under the Act led to the levy of a special
assessment by the Council against parcels of land within the
assessment district in the total amount of $247,524.68. These
assessments were recorded in the office of the County Recorder of
the County of Marin, and thereupon became a lien on each parcel
assessed. The period within which parcel owners might pay their
assessments in cash without interest expired on December 7, 1992.
Section 2. ISSUANCE OF BONDS. The Council hereby authorizes
the issuance of improvement bonds under the provisions of the
Improvement Bond Act of 1915 to represent unpaid assessments in the
amount of $233,687.57. Each bond shall be designated, "Limited
Obligation Improvement Bond, City of San Rafael, Mariposa Road
Assessment District, Series No. 1-1993." Bonds shall be dated
approximately the date of delivery and issued in denominations of
$5000 or integral multiples thereof, except for Bond No. 1, which
shall be an odd amount. Bonds shall mature in principal amounts as
set forth in the table attached as Exhibit A. The bond date and
interest rates on the bonds shall be as set forth in the bond
purchase contract.
Section 3. APPOINTMENT OF PAYING AGENT. REGISTRAR AND
TRANSFER AGENT. The Council hereby appoints the Bank of America
National Trust and Savings Association (the "Bank") as paying
agent, registrar and transfer agent for the bonds in accordance
with an agreement between the City of San Rafael and the Bank.
Section 4. FORM AND EXECUTION. Bonds shall be issued as
fully registered bonds substantially in the form set forth as
Exhibit B to this resolution. The bonds shall be signed by the
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City Treasurer and the City Clerk and the seal of the City shall be
affixed. Both signatures and seal may be reproduced on the bonds
by facsimile, but upon its registration or reregistration each bond
shall be authenticated by the manual signature of the Bank.
The Bank 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 five funds to
be known as the improvement fund, the redemption fund, the special
reserve fund, the investment earnings fund and the arbitrage rebate
fund, respectively, for Mariposa Road Assessment District, City of
San Rafael, Marin County, California.
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 before 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 amended engineer's report heretofore
approved by the Council, which report and budget are subject to
modification by the Council from time to time as prescribed by the
Act.
Section 5.2. REDEMPTION FUND. The redemption fund shall be
maintained by the City Treasurer. All payments of principal and
interest installments on the assessments, together with funded
interest, if any, and penalties, if any, shall be deposited in the
redemption fund, which shall be a trust fund for the benefit of the
bondholders. Payment of the bonds at maturity, or at redemption ._
before maturity, and all interest on the bonds shall be made from
the redemption fund.
The City Treasurer shall deposit into the redemption fund,
from the proceeds of the sale of the bonds, the amount of
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$9,700.00, which shall be applied to payment of the first payable
interest on the bonds until fully expended.
Section 5.3. SPECIAL RESERVE FUND. There shall be deposited
into the special reserve fund the amount of $11,684.38 from the
proceeds of the sale of bonds. That amount, less any amounts
transferred to the redemption fund pursuant to Section 8884 of the
Streets and Highways Code, shall constitute the "Reserve
Requirement" for the bonds. The special reserve fund shall be
maintained by the City Treasurer.
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 8883 and 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 fund as the original
amount of the prepaid assessment bears to the total amount of
unpaid assessments originally securing the Bonds. 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. The amount maintained in the special reserve fund will
never exceed the Reserve Requirement. Proceeds of investment of
the special reserve fund shall be deposited in the investment
earnings fund.
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 fund,
and the remaining installments of principal and interest not yet
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due from assessed property owners shall be cancelled without
payment.
Section 5.4. INVESTMENT EARNINGS FUND. Proceeds of the
investment of amounts in the improvement fund and the special
reserve fund will be deposited in the investment earnings fund. As
of September 2 of each year during the term of the bonds, the
Treasurer shall determine whether any portion of investment
earnings must be rebated to the United States pursuant to Section
148 of the United States Internal Revenue Code and regulations
adopted thereunder. Any amounts required to be rebated will be
transferred to the arbitrage rebate fund, and the balance will be
transferred as follows:
(a) To the extent that the balance in the special reserve fund
is less than the Reserve Requirement, a transfer will be made from
the investment earnings fund to the special reserve fund.
(b) The remaining balance in the investment earnings fund, if
any, will be transferred to the improvement fund until the
improvement is completed and the improvement fund is closed;
thereafter the balance in the investment earnings fund will be
transferred to the redemption fund to be used, in the discretion of
the City Treasurer, as a credit upon the annual installments of
assessment or for the advance retirement of bonds.
The City Treasurer is authorized to retain independent
attorneys, accountants and other consultants to assist in complying
with Federal requirements.
Section 5.5. ARBITRAGE REBATE FUND. Amounts in the arbitrage
rebate fund shall be invested in the same manner as amounts in the
other funds and shall be held in trust for rebate to the United
States at the times required by Section 148 of the United States
Internal Revenue Code and regulations adopted thereunder.
Section 5.6 RETURN OF UNCLAIMED FUNDS. Other provisions of
this resolution to the contrary notwithstanding, the Bank shall
return to the City any funds held by it hereunder not later than
thirty (30) days before those funds would escheat to the State of
California under any law now or hereafter enacted.
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Section 6. PAYMENT ON BONDS. The principal and interest on
the bonds shall be payable at the office of the Bank of America
National Trust and Savings Association, Corporate Agency Division,
P.O. Box 37000, San Francisco, California 94137. Principal and
interest shall be paid by check mailed to the registered owner of
each bond at the owner's address appearing on the register
maintained by the Bank on the 15th day preceding the date of
payment.
Upon the payment and cancellation of any bond, the bond shall
be destroyed and the Bank shall furnish the City a certificate of
destruction.
Section 7. ADVANCE RETIREMENT OF BONDS. Any Bond or any
portion thereof in the amount of $5,000 or any integral multiple
thereof, may be redeemed and paid in advance of maturity upon the
second day of March or September in any year by giving at least 30
days' notice by registered or certified mail or by personal service
to the registered owner thereof at such owner's address as it
appears on the registration books of the Bank and by paying
principal and accrued interest together with a premium equal to
three percentum of the principal.
Section 8. REREGISTRATION. Any bond may be registered to a
new owner by completing the assignment certificate on the reverse
of the bond and delivering the bond to the Bank. Upon
reregistration, any bond may be replaced by one or more bonds of
the same maturity and aggregate amount in denominations of $5000 or
any integral multiple thereof. Neither the City nor the Bank shall
be required to make such exchange or registration of transfer of
bonds during the fifteen (15) days immediately preceding any
interest payment date.
Section 9. 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 Council makes the following
covenants, which shall constitute a contract with the bondholders:
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Section 9.1. FORECLOSURE OF LIENS. Not later than October 1
in any year, the City shall file an action in the Superior Court to
foreclose the lien of each delinquent assessment if the amount of
the special reserve fund is less than the Reserve Requirement. All
of the foregoing notwithstanding, the City may, in any particular
case, elect to advance the amount of any delinquency (excluding
penalties and interest) from any legally available sources of funds
to the redemption account. In that event the City need not
initiate the foreclosure action. In such a case, the City may
reimburse itself, when the assessment installment is paid on the
property, for its advance plus interest and penalties.
Section 9.2. 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, could have
caused the bonds to be "arbitrage bonds" within the meaning of
Section 148 of the United States Internal Revenue Code of 1986, and
regulations of the Internal Revenue Service adopted thereunder, and
further shall rebate to the United States any amounts required to
be rebated on account of arbitrage in accordance with the
provisions of that Code and those regulations.
Section 9.3. MAINTENANCE OF TAX EXEMPTION. The City will take
all reasonable actions required to maintain the status of interest
on the bonds as excludable from gross income for federal income tax
purposes and as exempt from the State of California personal income
taxes.
Section 9.4. DESIGNATION AS QUALIFIED TAX-EXEMPT OBLIGATIONS.
The City, together with its subordinate entities, has issued less
than $5 million of governmental purpose bonds in calendar year
1993, and has no intention at this time of issuing more than $5
million of governmental purpose bonds in 1993, nor does the City
believe that there is any reasonable prospect that it will do so. -
The City hereby designates the Bonds "Qualified Tax -Exempt
Obligations" for purposes of Section 265(b)(3) of the Internal
Revenue Code of 1986. The City also hereby states that this issue
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qualifies for relief from the rebate requirements of the Internal
Revenue Code under Section 148(f)(4)(C) of that Code.
I, JEANNE M. LEONCINI, Clerk of the City of San Rafael,
California, hereby certify that the foregoing resolution was duly
and regularly introduced and adopted at a regular meeting of the
Council of said City held on the 21st day of December, 1992, by the
following vote, to wit:
AYES: COUNCILMEMBERS: Breiner, Cohen, Thayer & Mayor Boro
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: Shippey
JEAN 1'-M. LEO IN City Clerk
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MATURITY SCHEDULE
MARIPOSA ROAD ASSESSMENT DISTRICT
Bonds mature on September 2 in the years
and amounts set forth below:
YEAR FACE AMOUNT
1994
13,687.57
1995
10,000.00
1996
10,000.00
1997
10,000.00
1998
10,000.00
1999
15,000.00
2000
15,000.00
2001
15,000.00
2002
151000.00
2003
15,000.00
2004
20,000.00
2005
20,000.00
2006
20,000.00
2007
20,000.00
2008
25,000.00
TOTAL: 233,687.57
EXHIBITA
REGISTERED
Number
INTEREST RATE
United States of America
State of California
County of Marin
REGISTERED
LIMITED OBLIGATION IMPROVEMENT BOND
CITY OF SAN RAFAEL
MARIPOSA ROAD ASSESSMENT DISTRICT
REGISTERED OWNER:
PRINCIPAL SUM:
SERIES NO. 1-1993
MATURITY DATE BOND DATE CUSIP NUMBER
Under and by virtue of the Improvement Bond Act of 1915,
Division 10 (commencing with Section 8500), of the Streets and
Highways Code (the "Act"), the City of San Rafael, County of Marin,
State of California (the "City"), will, out of the redemption fund
for the payment of the bonds issued upon the unpaid portion of
assessments made for the acquisition, work and improvements more
fully described in proceedings taken pursuant to Resolution of
Intention No. 8563, adopted by the City Council of the City of San
Rafael on the 4th day of November, 1991, pay to the registered
owner stated above or registered assigns, on the maturity date
stated above, the principal sum stated above, in lawful money of
the United States of America and in like manner will pay interest
from the interest payment date next preceding the date on which
this Bond is authenticated, unless this Bond is authenticated and
registered as of an interest payment date, in which event it shall
bear interest from such interest payment date, or unless this Bond
is authenticated and registered prior to March 2, 1993, in which
event it shall bear interest from its date, until payment of such
principal sum shall have been discharged, at the rate per annum
stated above, payable semiannually on March 2 and September 2 in
each year commencing on March 2, 1993. Both the principal hereof
and redemption premium hereon are payable at the principal
corporate trust office of Bank of America National Trust and
Savings Association, Corporate Agency Division, P.O. Box 37000, San
Francisco, California 94137, or its successor, as Paying Agent,
Registrar and Transfer Agent, in San Francisco, California (the
"Bank"), and the interest hereon is payable by check mailed on each
interest payment date to the owner hereof at the owner's address as
it appears on the registration books of the Bank, or at such
address as may have been filed with the -Bank for that purpose, as
of the fifteenth day immediately preceding each interest payment
date.
i..� i •► 6 d ! �r
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND
SET FORTH ON THE REVERSE SIDE HEREOF WHICH SHALL FOR ALL PURPOSES
HAVE THE SAME EFFECT AS THOUGH FULLY SET FORTH HEREIN.
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 same.
If it is not presented at maturity, interest thereon will run until
maturity.
This Bond shall not be entitled to any benefit under the
Act or the Resolution Authorizing Issuance of Bonds (the
"Resolution of Issuance"), or become valid or obligatory for any
purpose, until the certificate of authentication and registration
hereon endorsed shall have been dated and signed by the Bank.
IN WITNESS WHEREOF, the City has caused this Bond to be
signed in facsimile by the Treasurer of said City and by its Clerk,
and has caused its corporate seal to be reproduced in facsimile
hereon all as of the 6th day of January, 1993.
CITY OF SAN RAFAEL
&rk Treasurer
( SEAL)
CERTIFICATE OF AUTHENTICATION AND REGISTRATION
This is one of the Bonds described in the within mentioned
Resolution of Issuance, which has been authenticated and registered
on
BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION
as paying agent, registrar and transfer agent
By
Authorized Officer
Pa
LIMITED OBLIGATION IMPROVEMENT BOND
CITY OF SAN RAFAEL
MARIPOSA ROAD ASSESSMENT DISTRICT
Series No. 1-1993
ADDITIONAL PROVISIONS OF THE BOND
This Bond is one of several annual series of bonds of
like date, tenor and effect, but differing in amounts, maturities
and interest rates, issued by the City under the Act and the
Resolution of Issuance, for the purpose of providing means for
paying for the improvements described in said proceedings, and is
secured by the moneys in said redemption fund and by the unpaid
portion of said assessments made for the payment of said
improvements, and, including principal and interest, is payable
exclusively out of said 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 Bank, 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
Bond. Upon such transfer, 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.
Bonds shall be registered only in the name of an
individual (including joint owners), a corporation, a partnership
or a trust.
Neither the City nor the Bank shall be required to make
such exchange or registration of transfer of bonds during the
fifteen (15) days immediately preceding any interest payment date.
The City will not obligate itself to advance available
funds from the City treasury to cure any deficiency which may occur
in the bond redemption fund.
The City and the Bank may treat the registered owner
hereof as the absolute owner for all purposes, and the City and the
Bank shall not be affected by any notice to the contrary.
This Bond or any portion of it in the amount of $5,000 or
any integral multiple thereof, may be redeemed and paid in advance
of maturity upon the second day of March or September in any year
by giving at least 30 days' notice by registered or certified mail
or by personal service to the registered owner hereof at such
owner's address as it appears on the registration books of the Bank
and by paying principal and accrued interest together with a
premium equal to three percentum of the principal.
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By resolution duly adopted by the City Council, this Bond
has been designated a "Qualified Tax -Exempt Obligation" within the
meaning of Section 265 (b) (3) of the Internal Revenue Code of
1986, as amended.
I hereby certify that the following is a correct copy of
the signed legal opinion of STURGIS, NESS, BRUNSELL & SPERRY a
professional corporation, Emeryville, California, on file in my
office.
City Clerk
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