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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