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HomeMy WebLinkAboutCC Resolution 8446 (Northgate Refunding Assessment District)RESOLUTION NO. 8446 RESOLUTION ORDERING SALE OF BONDS CIVIC CENTER - NORTHGATE REFUNDING ASSESSMENT DISTRICT The City Council of the City of San Rafael resolves: The City Council accepts the offer of Stone & Youngberg (attached to this resolution and by reference incorporated in it) to purchase all of the refunding bonds to be issued in Civic Center - Northgate Refunding Assessment District. This Council approves the bond purchase contract between Stone & Youngberg and the City of San Rafael for the purchase of the limited obligation refunding bonds to be issued in Civic Center - Northgate Refunding Assessment District and authorizes the Treasurer to sign the contract. The City Council directs the sale and delivery of the refunding bonds to the offeror in accordance with the terms and conditions stated in the offer. 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 17th day of June, 1991, by the following vote, to wit: AYES: COUNCILMEMBERS: Boro, Breiner, Shippey, Thayer & Mayor Mulryan NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None � . JEANN9JLEONCINI; Ciy Clerk .� n , r P � �.; i � 8 STONE & YOUNGBERG MEMBERS PACIFIC STOCK EXCHANGE June 17, 1991 City Council City of San Rafael 1400 Fifth Avenue P. O. Box 151560 San Rafael, CA 94915-1560 Attention: Ransom E. Coleman Re: Offer to Purchase Bonds in the Amount of $3,365,000 City of San Rafael Limited Obligation Refunding Bonds Civic Center-Northgate Refunding Assessment District Series No. 1991-1 Dear Councilmembers: Pursuant to discussions with City staff, bond counsel, and our investigation and analysis of the captioned bond issue, Stone & Youngberg ("the Underwriter") hereby offers to purchase all of the above referenced bonds (the "Bonds") subject to the following conditions: The Bonds shall be issued pursuant to the provisions of the Refunding Act of 1984 for 1915 ILnprovement Act Bonds. 2. The Bonds shall be as described in the Official Statement and the Resolution of Issuance for the Bonds. The par value of the Bonds shall be in the amount of $3,365,000 and the Bonds shall mature and bear interest rates as set forth in Exhibit A. 4. The Bonds shall be issued in denominations of $5,000, or in integral multiples thereof as may be requested by the Underwriter. 5. All Bonds shall be issued in registered form in accordance with instructions to he determined by the Underwriter prior to closing. Bank of America NT & SA shall act as Paying Agent, Registrar, Transfer Agent and Fiscal Agent. 6. The Bonds shall be dated July 1, 1991 and shall be delivered on or about July 1, 1991 (the "Closing Date"). 7. Interest on the Bonds will be payable commencing on March 2, 1992 and semi-annually thereafter each September 2 and March 2 until maturity. 8. The City shall establish from the proceeds of the Bonds a reserve fund equal to five percent (5%) of the principal amount of the Bonds. The reserve fund shall be administered pursuant to the Resolution of Issuance for the Bonds, as well as pursuant to applicable federal laws and regulations. ONE CALIFORNIA STREET • SAN FRANCISCO, CALIFORNIA 94111 • (415) 981-1314 City of San Rafael June 17, 1991 Page 2 9. The City shall award the sale of the Bonds to the Underwriter at its Council meeting of June 17, 1991. 10. The purchase price for the Bonds shall be ninety-eight percent (98%) of par, plus accrued interest, if applicable. The purchase price shall be paid in frill upon delivery of the Bonds to the Underwriter. Payment for the Bonds shall be made in immediately available funds. The City shall be responsible for the costs of issuance of the financing including bond and official statement printing, appraisal fee,- registrar/paying agent fee, bond counsel fee, escrow agent fee and other miscellaneous expenses. 11. The City has reviewed the Preliminary Official Statement dated June 12, 1991, deems it "near final" for purposes of Rule 15c2-12 under the Securities Exchange Act of 1934, and has approved it for distribution by the Underwriter. 12. The City will deliver to the Underwriter at closing in forms suitable to the Underwriter: (a) The unqualified approving legal opinion of Sturgis Ness Brunsell & Sperry of Emeryville, Bond Counsel. The legal opinion shall be printed on the Bonds at no charge to us. (b) A no -litigation certificate of the City. (c) A certificate executed by ail authorized officer of the City stating that to the best of his knowledge and belief the Official Statement does not contain any untrue statement of a material fact or omit any statement or information concerning the ILnprovement Project, the Assessment District, or the City which is necessary to make such statements and information therein, in light of the circumstances under which they were made, not misleading in any material respect. 13. The obligations of the Underwriter to accept delivery of and pay for the Bonds on the Closing Date shall be subject, at the option of the Underwriter to the following additional conditions: (A) At the Closing Date, the Resolution of Issuance and any other applicable agreements shall be in full force and effect, and shall not have been amended, modified or supplemented except as may have been agreed to in writing by the Underwriter, and there shall have been taken in connection therewith, with the issuance of the Bonds and with the transactions contemplated thereby and by this Purchase Contract, all such actions as, in the opinion of Bond Counsel, shall be necessary and appropriate; (B) Between the date hereof and the Closing Date, the market price or marketability of the Bonds at the initial offering prices shall not have been materially adversely affected, in the judgment of the Underwriter (evidenced by a written notice to the City terminating the obligation of the Underwriter to accept delivery of and pay for the Bonds) by reason of any of the following: City of San Rafael June 17, 1991 Page 3 (a) Legislation enacted (or resolution passed) by the Congress of the United States of America or a decision rendered by a court established under Article III of the Constitution of the United States of America or by the Tax Court of the United States of America, or an order, ruling, regulation (final, temporary or proposed), press release or other form of notice issued or made by or on behalf of the Treasury Department or the Internal Revenue Service of the United States of America, with the purpose or effect, directly or indirectly, of imposing federal income taxation upon the interest as would be received by the owners of the Bonds; (b) Legislation enacted (or resolution passed) by the Congress of the United States of America, or an order, decree or injunction issued by any court of competent jurisdiction, or an order, ruling, regulation (final, temporary or proposed), press release or other form of notice issued or made by or on behalf of the Securities and Exchange Commission, or any other goveirunental agency having jurisdiction of the subject matter, to the effect that obligations of the general character of the Bonds, or the Bonds, including any or all underlying arrangements, are not exempt from registration under or other requirements of the Securities Act of 1933, as amended, or that the Resolution of Issuance is not exempt from qualification under or other requirements of the Trust Indenture Act of 1939, as amended, or that the issuance, offering or sale of obligations of the general character of the Bonds, or of the Bonds, including any or all underwriting arrangements, as contemplated hereby or otherwise is or would be in violation of the federal securities laws as amended and then in effect; (c) Any amendment to the Federal or California Constitution or action by any Federal or California court, legislative body, regulatory body or other authority materially adversely affecting the tax status of the City, its property, income, securities (or interest thereon), validity or enforceability of the reassessments; or City of San Rafael June 17, 1991 Page 4 (d) Any event occurring, of information becoming known which, in the judgment of the Underwriter makes untrue or misleading in any material respect any statement or information contained in the Official Statement. Respectfully submitted, STONE & YOUNGBERG ,n By Scott Clinton, Partner APPROVED AND ACCEPTED CITY OF SAN RAF�AEL By:�- _ "RANSOM E. C0LLMAN Title: _J eds_urer Date: June 17, 1991 KS:ssj (WPP/083C) :K4 my '-3 1 $3,365,000 The average interest rate is 7.431848%. The net interest cost including an underwriting discount of 2.0% is 7.585308%. CITY OF SAN RAFAEL LIMITED OBLIGATION REFUNDING BONDS CIVIC CENTER NORTHGATE REFUNDING ASSESSMENT DISTRICT SERIES 1991-1 Initial Public Maturity Date Principal Interest Offering (Seotember 2) Amount Rate Price 1992 $ 45,000.00 5.25% 100% 1993 90,000.00 5.75% 100% 1994 95,000.00 6.00% 100% 1995 100,000.00 6.20% 100% 1996 110,000.00 6.40% 100% 1997 115,000.00 6.60% 100% 1998 125,000.00 6.80% 100% 1999 130,000.00 7.00% 100% 2000 140,000.00 7.10% 100% 2001 150,000.00 7.20% 100% 2002 160,000.00 7.30% 100% 2003 170,000.00 7.40% 100% 2004 185,000.00 7.50% 100% 2005 200,000.00 7.50% 100% 2006 215,000.00 7.55% 100% 2007 230,000.00 7.55% 100% 2008 245,000.00 7.60% 100% 2009 265,000.00 7.60% 100% 2010 285,000.00 7.60% 100% 2011 310,000.00 7.60% 100% The average interest rate is 7.431848%. The net interest cost including an underwriting discount of 2.0% is 7.585308%.