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HomeMy WebLinkAboutCC Resolution 7305 (Sun Valley Open Space Assessment District)RESOLUTION NO. 7305 RESOLUTION AUTHORIZING ISSUANCE OF BONDS SUN VALLEY OPEN SPACE ASSESSMENT DISTRICT The City -Council of the City of San Rafael resolves: Section 1. RECITALS. On August 5, 1985, the City Council of the City of San Rafael adopted its resolution of intention to order improvements in Sun Valley Open Space Assessment District under the provisions of the Municipal Improvement Act of 1913 (the "Act"). 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 $528,693.68. These assessments were recorded in the office of the County Recorder of the County of Marin on October 1, 1985, under Recorder's Serial No. 85 042704 and thereupon became a lien on each parcel assessed. The period within which parcel owners might pay their assessments in cash without interest has now expired, and there remain unpaid assessments in the total amount of $357,326.18. 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, Sun Valley Open Space Assessment District, City of San Rafael, Marin County, California, Series No. 1985-3." Bonds shall be issued in denominations of $1000 or integral multiples thereof, and shall be dated February 25, 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, 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 the Bank 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 ORIGINAL 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 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 improvement fund, the redemption fund and the special reserve fund, respectively, for Sun Valley Open Space 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 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 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 $17,866.31 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 Sun Valley Open Space 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 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 C National Trust and Savings Association, Corporate Agency 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 $1000 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 Sun Valley Open Space 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 five hundred (500) 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. HR 3838 PROVISIONS. The following are 4 provided to assure that interest on the bonds is exempt from income taxation by the United States of America under Title VII, Tax Exempt Bonds of HR 3838 passed by the United States House of Representatives on December 17, 1985. Section 9.1 IMPROVEMENT FUND DISBURSEMENTS. On July 1, 1988, the Treasurer shall, in accordance with the provisions of Exhibit B hereof, give notice of redemption, as of September 2, 1988, of Bonds in an amount equal to all amounts then on deposit in the Improvement Fund. Prior to September 2, 1988, the Treasurer shall transfer all amounts on deposit in the Improvement Fund to the Redemption Fund and on September 2, 1988, shall apply amounts on deposit in the Redemption Fund to the redemption of the Bonds. Section 9.2. RESERVE REQUIREMENT. The amount in the Reserve Fund shall at no time exceed the "Reserve Requirement" which for purposes of this resolution means maximum Annual Debt Service or such lesser amount as shall equal 150 percent of Annual Debt Service for the Bond Year for which the computations of the Reserve Requirement is made. For purposes of this resolution, the term "Annual Debt Service" means the scheduled amount of interest and amortization of principal payable on the Bonds in the Bond Year for which the computation is made. For purposes of this resolution, the term "Bond Year" means the twelve month period beginning September 2 of each year and ending on the first day of said month in the following year. Section 9.3. COMPUTATION OF RESERVE REQUIREMENT. Annually, on the first day of each Bond Year or on the preceding business day in the event that such first day is not a business day, the Treasurer shall compute Annual Debt Service on the Bonds during the forthcoming Bond Year. In the event that, based upon such computation, the Treasurer determines that the amount then on deposit in the Reserve Fund exceeds the Reserve Requirement, the Treasurer shall withdraw the excess amount from the Reserve Fund and shall deposit such amount in the Redemption Fund to be applied to the payment of debt service on the Bonds on the next interest payment date. 5 Section 9.4. INVESTMENT IN ACCORDANCE WITH INSTRUCTIONS. Except as otherwise provided herein, all moneys held by the Treasurer in any of the funds or accounts established pursuant to this Resolution and all monies held by the City in any fund or account which is reasonably expected to be used to pay, or which is pledged for the payment of, debt service on the bonds shall be invested only upon receipt of the written opinion of Bond Counsel to the effect that the proposed investment shall not adversely affect the exemption from Federal income taxation of interest on the Bonds. Such opinions may pertain to general or specific investments and may be limited to a defined period or may be specified to apply throughout the term of the Bonds unless amended or revoked. In the event that said opinion of Bond Counsel is not provided, such moneys shall be held in cash and not invested or shall be invested in obligations bearing interest which are exempt from Federal income taxation or shall be invested in United States Treasury Securities -- State and Local Government Series producing a yield of not to exceed Eight and One Quarter Percent (8.250), Section 9.5. EARLY ISSUANCE PROHIBITION. The City shall assure that five percent (5%) of the Net Proceeds of the Bonds are spent within thirty (30) days after the date of delivery of the Bonds to carry out the governmental purpose of the Bonds, and that all of the Net Proceeds of the Bonds are spent within three (3) years of the date of delivery of the Bonds to carry out the governmental purpose of the Bonds. Amounts used for redemption of the Bonds shall be deemed to.be amounts used to carry out the governmental purpose of the Bonds within the meaning of the preceding sentence. Section 9.6. AMENDMENT. Without the consent of the Bondowners, the City hereafter may amend this Resolution or add, modify or delete provisions if the same is necessary or desirable, in the opinion of Bond Counsel, to assure the exemption of interest on the Bonds from Federal income taxation. Section 9.7. AUTHORITY OF TREASURER. All actions mandated by this resolution to be performed by the Treasurer may 51 be performed by the designee thereof or such other official of the City duly authorized by the City Council of the City to perform such action or actions in furtherance of the requirements thereof. 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 F-ebruary, 1986, by the following vote, to wit: AYES: COUNCILMEMBERS:Breiner, Frugoli, Nave, Russom & Mayor Mulryan NOES: COUNCILMEMBERS:None ABSENT: COUNCILMEMBERS:None J( �NM.EONCI , City Clerk 7 MATURITY SCHEDULE Sun Valley Open Space Assessment District, City of San Rafael SEPT 2 MATURITY PRINCIPAL INTEREST DATE AMOUNT RATE 1987 $7,326.18 5.50% 1988 10,000.00 6.00 1989 10,000.00 6.50 1990 10,000.00 7.00 1991 10,000.00 7.25 1992 10,000.00 7.50 1993 10,000.00 7.75 1994 15,000.00 8.00 1995 15,000.00 8.10 1996 15,000.00 8.15 1997 15,000.00 8.20 1998 20,000.00 8.25 1999 20,000.00 8.30 2000 20,000.00 8.35 2001 25,000.00 8.40 2002 25,000.00 8.45 2003 25,000.00 8.50 2004 30,000.00 8.50 2005 30,000.00 8.50 2006 35,000.00 8.50 TOTAL: $357,326.18 EXHIBIT A United States of America State of California County of Marin REGISTERED REGISTERED Number $ IMPROVEMENT BOND CITY OF SAN RAFAEL SUN VALLEY OPEN SPACE ASSESSMENT DISTRICT SERIES NO. 1985-3 INTEREST RATE MATURITY DATE BOND DATE CUSIP NUMBER February 25, 1986 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. 7159, adopted by the City Council of the City of San Rafael on the 5th day of August, 1985, 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 September 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 March 2 and September 2 in each year commencing on September 2, 1986. 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 EXHIBIT B 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 25th day of February, 1986. Clerk CITY OF SAN RAFAEL (SEAL) Treasurer 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 Authorized Officer (REVERSE OF BOND) CITY OF SAN RAFAEL SUN VALLEY OPEN SPACE 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 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 $1,000 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