HomeMy WebLinkAboutCC Resolution 6906 (Kerner Blvd Assessment District)RESOLUTION NO. 6906
RESOLUTION AUTHORIZING ISSUANCE OF BONDS
KERNER BOULEVARD ASSESSMENT DISTRICT
The City Council of the City of San Rafael resolves:
Section 1. RECITALS. On November 15, 1982, the City
Council of the City of San Rafael adopted its resolution of
intention to order improvements in the Kerner Boulevard
Assessment District, under the provisions of the Municipal
Improvement Act of 1913 (the "Act"). Said resolution of
intention was later amended. Proceedings taken under the Act
led to the levy of a special assessment by the City Council
against parcels of land within the assessment district in the
total amount of $5,800,000.00. These assessments were recorded
in the office of the County Recorder of the County of Marin on
May 11, 1984 under Recorder's Serial No. 84022313 and thereupon
became a lien on each parcel assessed. The period within which
parcel owners might pay these assessments in cash without
interest has now expired. Pursuant to Council action taken on
August 20, 1984, and at the request of the property owner,
additional parcels have been included in the assessment
district. The total amount of assessments has been increased to
$6,046,134.00. The owner of those additional parcels has waived
his right to pay all or any portion of his assessments in cash.
There now remain unpaid assessments in the total amount of
$6,046,134.00.
Section 2. ISSUANCE OF BONDS. The City Council
hereby authorizes the issuance of improvement bonds under the
provisions of the Improvement Bond Act of 1915 to represent
unpaid assessments. The bonds shall be designated, "Improvement
Bonds, Kerner Boulevard Assessment District, City of San Rafael,
Marin County, California, Series No. 1984-1." Bonds shall be
issued in denominations of $5,000.00 or integral multiples
thereof, and shall be dated September 5, 1984. Bonds shall be
numbered, shall mature and shall bear interest at the rates set
forth in the table attached as Exhibit A.
J"N
Resolution No. 6906
Section 3. APPOINTMENT OF PAYING AGENT, REGISTRAR AND
TRANSFER
AGENT.
The City
Council
hereby appoints the
Bank
of
America
as paying
agent,
registrar
and transfer agent
for
the
bonds, in accordance with an agreement between the City of San
Rafael and the Bank of America heretofore approved by the City
Council.
Section 4. FORM AND EXECUTION. Bonds shall be issued
as fully registered bonds in the form set forth as Exhibit B to
this resolution. The bonds shall be signed by the 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
registrar.
The paying agent shall assign 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 improvement fund, the
redemption fund and the special reserve fund, respectively, for
the Kerner Boulevard Assessment District.
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 prior to 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 engineer's report
heretofore approved by the City Council, which report and budget
are subject to modification by the City Council of the City of
San Rafael 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
2
Resolution No. 6906
principal and interest installments on the assessments, 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 City Treasurer. There
shall be deposited into the special reserve fund the amount of
$492,000.00 from the proceeds of the sale of bonds. The special
reserve fund shall be administered as follows:
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 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, together with accrued interest, as the original
amount of the prepaid assessment bears to the total amount of
assessments originally levied in the Kerner Boulevard Assessment
District. 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 assessment principal and interest
in the same amount in the year following the year of transfer.
D. When the amount in the special reserve fund
3
Resolution No. 6906
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 no. PAYMENT ON BONDS. The principal and
interest on the bonds shall be payable at the Bank of America
tiT&SA, San Francisco, California. 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 $5,000 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 Improvement
Bond Act of 1915. 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 assessment
levied in the Kerner Boulevard 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 assessment 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
Resolution No. 6906
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.
* *
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 20th day of
August, 1934, by the following vote, to wit:
AYES: COUNCILMEMBERS: Frugoli, Nave, Russom & Mayor Mulryan
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: Breiner
JoRn M. LEONCINI, City Clerk
�1 Lir, HANSEN & CO.
ESTABLISHED 1931
INVESTMENT 13ANKERS
201 SANSOME STREET, 7TH FLOOR
SAN FRANCISCO 94104
[415] 421-8900
City Counsel
City of San Rafael
California
SRCC Item 416
(8/20/84)
August 20, 1984
Re: Kerner Boulevard Assessment District
Itcipal Financing City of San Rafael, California
Dear Council Members:
:cialAssessment Wulff, Hansen & Co., and M.L. Stern & Co. hereby offers
Revenue Bonds to purchase all, but not less than all, bonds to be
offered by the City of San Rafael according to the
Improvement Bond Act of 1915 of the State of California
my (after proceedings under the Municipal Improvement Act of
1913) to represent the cost of acquisitions and
laldistrict improvements in the Kerner Boulevard Assessment District.
.marclal We make this offer under under the following terms and
•strlal
conditions:
<J�ntial
p1tal
:C
Amount of Bonds:
Not to
Exceed
$6,046,134.00.
Form of Bonds:
Registered
bonds to
be issued
``opaning
serially.
Bond denominations
of
$5,000
to $100,000.
sceping
walks1,9
Interest Rate:
7.50%
1986
10.60%
1996
US
8.50%
1987
10.60%
1997
ting
10.00%
1988
10.60%
1998
nage
10.00%
1989
10.60%
1999
control
tic c
Ing
10.25%
1990
10.70%
2000
,r5
10.25%
1991
10.75%
2001
jstrial malls
10.50%
1992
10.80%
2002
s
;round
10.50%
1993
10.85%
2003 ^1
cation
10.60%
1994
3.-0:85$
2004 (�' •'�''� `t
10.60%
1995
10:&5%
2005 -••` .` Y .
,'gt�>"9
,Ing
zmatlon Price: 95.00% of par value plus accrued
interest.
Term: 20 years
Net Interest Cost: 10.881251%.
NEARLY HALF A CENTURY HELPING CALIFORNIANS ,�,-'
City Council
Kerner Boulevard Assessment District
August 20, 1984
Page Two
Maturity Schedule: Serially
from 9-5-86 to
9-5-2004 as shown
below:
1986
$ 1,134.00
1996
$ 280,000.00
1987
$ 5,000.00
1997
310,000.00
1988
$125,000.00
1998
340,000.00
1989
$140,000.00
1999
375,000.00
1990
$155,000.00
2000
415,000.00
1991
$170,000.00
2001
460,000.00
1992
$185,000.00
2002
510,000.00
1993
$205,000.00
2003
565,000.00
1994
$230,000.00
2004
630,000.00
1995
$250,000.00
2005
695,000.00
Delivery Date: Approximately
September
5,
1984.
Reserve Fund: The City shall establish from the proceeds
of the bonds a reserve fund equal to 8% of
the principal amount of the bonds. In our
view, it is reasonably required for this
issue, and vital to the marketing of the
bonds, that proceeds from the investment
of monies in said reserve fund should be
retained in said fund until the amount in
said fund equals the maximum annual debt
service on the bonds.
Redemption Premium: 5% of unmatured principal.
Paying Agent and
Registrar: Bank of America, N.T. & S.A., Corporate
Agency, San Francisco, California.
No Litigation: A no litigation certificate of the City
shall accompany the bonds at delivery.
-
City Counsel
August 20, 1984
Kerner Boulevard Assessment District
Page Three
Legal Opinion: The opinion of Sturgis, Ness, Brunsell &
Sperry, of Emeryville, California, without
qualification, and without expense to us
shall accompany the bonds.
Foreclosure Clause: The City to initiate and vigorously pursue
foreclosure proceedings to be initiated
150 days after delinquency occurs.
Merger of Parcels: The City shall force the merger of parcels
5, 8, & 29 with the closest contiguous
parcels under the same ownership at the
earliest possible date, and shall require
same as a condition of approval on any
development proposals for these or
contiguous parcels.
Time of Delivery: Not later than 48 hours after the City
notifies the undersigned that the bonds
are ready for delivery. If the subject
bonds are not delivered by 5:00 p.m. on
the third day after the aforementioned
delivery date, Wulff, Hansen & Co.
reserves the right to renegotiate the
price and/or the rate of interest.
Place of Delivery: Bank of America, N.T. & S.A. , San
Francisco, California.
Expiration: This offer expires August 21, 1984.
MP/jm
Very truly yours,
WUILFF, HANSEN & CO.
Mark Pressman
Vice President
Gene D ' E r (Ya ►--' J
Senior Vice President
REGISTERED
Number
United States of America
State of California
County of Marin
REGISTERED
IMPROVEMENT BOND
CITY OF SAN RAFAEL
KERNER BOULEVARD ASSESSMENT DISTRICT
SERIES NO. 1984-1
INTEREST RATE MATURITY DATE BOND DATE CUSIP NUMBER
September 5, 1984
Under and by virtue of the Improvement Bond Act of 1915,
Division 10, 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. 6447, adopted by the City
Council of the City of San Rafael on the 15th day of November, 1982,
as later amended, 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 January 2, 1986, 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 January 2 and July 2 in each
year. 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 Paying Agent, in 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.
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 Treasurer of said City
and by its Clerk, and has caused its corporate seal to be reproduced
in facsimile hereon all as of the 5th day of September, 1984.
CITY OF SAN RAFAEL
City C ems— City Treasurer
(SEAL)
Certificate of Authentication and Registration
This is one of the Bonds described in the within
mentioned Resolution of Issuance, which has been
registered on
Bank of America National Trust and Savings Association
By
Authorized Officer
(REVERSE OF BOND)
CITY OF SAN RAFAEL
KERNER BOULEVARD 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 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 January 2 or July 2.
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 January or July 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