HomeMy WebLinkAboutCC Resolution 7416 (Kerner Blvd Assessment District)RESOLUTION NO. 7416
RESOLUTION AUTHORIZING ISSUANCE OF REFUNDING BONDS
KERNER BOULEVARD REFUNDING ASSESSMENT DISTRICT
The City Council of the City of San Rafael resolves:
Section 1. RECITALS. On July 21, 1986, the City
Council of the City of San Rafael adopted its resolution of
intention to conduct reassessment proceedings and issue
refunding bonds under the provisions of the Refunding Act of
1984 for 1915 Improvement Act Bonds (the "Act"). Proceedings
taken under the Act led to the levy of reassessments by the City
Council against parcels of land within the reassessment district
in the total amount of $6,445,000.00. These reassessments will
be recorded in the office of the County Recorder of the County
of Marin and thereupon will become a lien upon each of the
reassessment parcels. The refunding bonds are being issued in
the amount of the total reassessment.
Section 2. ISSUANCE OF BONDS. The City Council
hereby authorizes the issuance of refunding bonds under the
provisions of the Act to be secured by the reassessments. The
bonds shall be designated, "Refunding Bonds, Kerner Boulevard
Refunding Assessment District, City of San Rafael, Marin County,
California, Series No. 1986-1." In all respects not specified in
this resolution, the bonds shall be issued in the manner
prescribed by the Act. Bonds shall be issued in denominations
of $5000 or integral multiples thereof, and shall be dated
August 29, 1986. Bonds shall mature and shall bear interest at
the rates set forth in the table attached as Exhibit A.
Section 3. APPOINTMENT OF PAYING AGENT, FISCAL AGENT,
REGISTRAR AND TRANSFER AGENT. The City Council hereby appoints
Bank of America National Trust and Savings Association as paying
agent, registrar and transfer agent for the bonds in accordance
with an agreement between the City and Bank heretofore approved
by the City Council.
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
Un R I P��, I A I
Mayor, Treasurer and the Clerk and the seal of the City shall be
affixed. All 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
registrar.
The paying agent 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 three funds to be known as the refunding fund, the
redemption fund and the special reserve fund, respectively, for
the Kerner Boulevard Refunding Assessment District.
Section 5.1. REFUNDING FUND. Except as provided in
Section 5.3, proceeds of sale of the bonds, together with the
redemption fund and special reserve fund for the outstanding
bonds for the Kerner Boulevard Refunding Assessment District
shall be deposited with the City Treasurer of San Rafael.
Disbursements from the refunding fund shall be made in
accordance with the Reassessment Report for these proceedings.
Section 5.2. REDEMPTION FUND. The redemption fund
shall be maintained by the City Treasurer. All payments of
principal and interest installments on the reassessments,
together with 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 prior to maturity, and all interest on the bonds
shall be made from the redemption fund.
Section 5.3. SPECIAL RESERVE FUND. The special
reserve fund shall be maintained by the Bank of America. There
shall be deposited into the special reserve fund the amount of
$386,700.00 from the proceeds of the sale of refunding bonds.
The special reserve fund shall be administered as follows:
A. During the term of the bonds, the amount in
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the special reserve fund shall be available for transfer into
the redemption fund in accordance with Section 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
reassessment installments was made from the special reserve
fund.
B. If any reassessment 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, together with accrued interest, as the original
amount of the prepaid reassessment bears to the total amount of
assessments originally levied in Kerner Boulevard Refunding
Assessment, City of San Rafael, Marin County, California. 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. Whenever required to prevent the reserve fund
from exceeding the reserve limitations set by federal statute
and regulation, the City Treasurer is directed to transfer
accrued interest from the special reserve fund to the redemption
fund from time to time, and to establish pro rata credits
against annual installments of reassessment principal and
interest in the same amount in the year following the year of
transfer.
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 due from assessed property owners shall be
cancelled without payment.
Section 6. PAYMENT ON BONDS. The principal and
interest on the bonds shall be payable at Bank of America
National Trust and Savings Association, Corporate Agency
I
Division, P.O. Box 37000, San Francisco, CA 94137. Principal
and interest shall be paid by check, draft or warrant mailed to
the registered owner of each bond at the owner's address
appearing on the register maintained by the registrar on the
15th day preceding the date of interest payment or maturity of
each bond.
Section 7. 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 registrar. 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.
Section 8. 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 Act. In
addition, the City Council makes the following covenants, which
shall constitute a contract with the bondholders:
Section 8.1. FORECLOSURE OF LIENS. If any
installment of the principal or interest of any reassessment
levied in the Kerner Boulevard Refunding Assessment District
becomes delinquent, the City Council shall cause an action to be
filed in the Superior Court of the County of Marin to foreclose
the lien of the delinquent reassessment under the authority of
Section 8830 and following of the Streets and Highways Code of
the State of California. This action shall be filed not later
than one hundred fifty (150) days after the date of delinquency.
Section 8.2. 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, would have caused the bonds to be "arbitrage bonds"
within the meaning of Section 103(c) of the United States
Internal Revenue Code of 1954, as amended, and regulations of
the Internal Revenue Service authorized thereby.
Section 9. Notwithstanding any of the foregoing, the
figures in this are maximums, and Ransom E. Coleman is
authorized to reduce those figures appropriately to reflect only
i
those properties whose owners sign valid consent and waiver
forms to the reassessment.
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 18th day of
August, 1986, by the following vote, to wit:
AYES: COUNCILMEMBERS: Breiner, Frugoli, Nave & Mayor Mulryan
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: Russom
J Nt M. LEONCINI, City Clerk
5
MATURITY SCHEDULE
KERNER BOULEVARD REFUNDING ASSESSMENT DISTRICT
SEPT 2
MATURITY PRINCIPAL INTEREST
DATE AMOUNT RATE
1987
$100,000.00
7.50%
1988
170,000.00
7.50
1989
185,000.00
7.50
1990
200,000.00
7.75
1991
215,000.00
7.75
1992
230,000.00
7.75
1993
250,000.00
8.00
1994
270,000.00
8.00
1995
290,000.00
8.00
1996
315,000.00
8.00
1997
340,000.00
8.00
1998
365,000.00
8.00
1999
395,000.00
8.00
2000
425,000.00
8.00
2001
460,000.00
8.00
2002
495,000.00
8.00
2003
535,000.00
8.00
2004
580,000.00
8.00
2005
625,000.00
8.00
TOTAL: $6,445,000.00
EXHIBIT A
United States of America
State of California
County of Marin
REGISTERED REGISTERED
Number $
REFUNDING BOND
CITY OF SAN RAFAEL
KERNER BOULEVARD REFUNDING ASSESSMENT DISTRICT
SERIES NO. 1986-1
INTEREST RATE MATURITY DATE BOND DATE CUSIP NUMBER
August 29, 1986
Under and by virtue of the Refunding Act of 1984 for 1915
Improvement Act Bonds; Division 11.5 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 reassessments
made for the refunding of all outstanding 1915 Act bonds in the
Kerner Boulevard Assessment District, Series No. 1984-1 and Series
No. 1985-1, as more fully described in the Resolution of Intention
adopted by the City Council of the City of San Rafael on the 21st
day of July, 1986, pay to
or registered assigns, on the maturity date stated above, the
principal sum of , 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, 1987, 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, 1987. 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, or its successor, as Transfer
Agent, Registrar and Payintj-Agent, ih--San Francisco, California, and
the interest hereon is payable by check or draft mailed 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.
UZOAPH 3
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND
SET FORTH IN 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, said City of San Rafael has caused
this bond to be signed in facsimile by the Mayor and Treasurer of
said City and by its Clerk, and has caused its corporate seal to be
reproduced in facsimile hereon all as of the 29th day of August,
1986.
CITY OF SAN RAFAEL
Clerk Mayor 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., transfer agent and registrar
By
Authorized Officer
(REVERSE OF BOND)
CITY OF SAN RAFAEL
KERNER BOULEVARD REFUNDING ASSESSMENT DISTRICT
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 of San Rafael under the Act
and the Resolution of Issuance, for the purpose of refunding bonds
described in said proceedings, and is secured by the moneys in
said redemption fund and by the unpaid portion of said
reassessments made for the payment of said bonds, 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 1 -he
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 and the Bank may treat the 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 60 days' notice by registered mail 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 five percentum
of the principal.
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