HomeMy WebLinkAboutResolutions 87-256 N.C.S. 08/31/1987,_-: .
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' ~ Resolution No. ~-256 N.C.S.
o;f the City of Petaluma, California
RESOLUTION AUTHORIZING ISSUANCE OF BONDS
LAKEVILLE HIGHWAY ASSESSMENT DISTRICT
The City Council of the City of Petaluma resolves:
Section 1. RECITALS. On January 21, 1986, the City
Council of the City of Petaluma adopted its resolution of
intention, as later amended, to order improvements in Lakeville
Highway Assessment District No. 15, City of Petaluma, Sonoma
County, California, under the provisions of the Municipal
Improvement Act of 1913 (the "Act"), as 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 $932,767.0:0. These assessments
were recorded in the office of the County Recorder of the County
of Sonoma, and thereupon became a lien on each parcel assessed.
The period within which parcel. owners might pay their
assessments in cash without interest expired on August 21, 1987.
Section 2. ~SUANCE OF BONDSOF 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 in the amount of $672,872.00. The bonds
steall be design°ated, "Improvement Bond, City of Petaluma,
Lakeville Highway Assessment District No. 15, Series
No. 19'87-'1." fonds shall be issued in denominations of $5000 or
integral multiples thereof, except for Bond No. l which may be
an odd amount; and shall be dated September 10, 1987. Bonds
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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 the 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 of Petaluma and Bank of America.
.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
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 S. 'ESTABLI'SHMENT OF SPECIAL FUNDS.. For
administering the prcceeds of the sale of bonds and payment of
interest and principal on the bonds., there ar:e hereby
established five funds to be known as the improvement fund, the
redemption fund, the investment earnings fund, the excess
.investment earnings fund and the special reserve fund,
respectively, for Lakeville Highway Assessment District No. 15.
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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 amended 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
$23,3.20.QO as a part of the City contribution.
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
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reimbursed to the, special reserve fund from the. proceeds of
redempton~or sale of the parcel for which payment of delinquent
assessment installments was made from the special reserve fund.
B. Upon retirement of all bonds of the issue, the
amount in the special reserve fund, including interest earnings.
thereon, shall be restored to the general. fund of the City.
Section 5.4. INVESTMENT EARNINGS FUND. Proceeds of
the investment of amounts in the improvement fund and the
redemption fund will be deposited in the investment earnings
fund. On. July 1 of each year during the term of the bonds (or
at other times as may be required or permitted by regulations of
the United States Internal Revenue Service), the Treasurer shall
determine whether any portion of investment earnings must be
.rebated to the United States pursuant to Section 148 of the
United States Internal Revenue Code and regulations adopted
thereunder. Any amounts required to be rebated will be
transferred to the excess investment earnings fund, and the
balance will 'be transferred to the improvement fund (or, upon
completion of the improvement, to the redemption fund to be
applied as credit to the next installment of principal and
interest collected from owners of assessed land).
The City of Petaluma is authorized to retain
independent. attorneys, accountants and other consultants to
assist in complying with Federal requirements.
Section 5.5. EXCESS INVESTMENT EARNINGS FUND. Amounts
in the excess investment earnings fund shall be invested in the
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same manner as amounts in the other funds and shall be held in
trust for rebate to the. United States at the times required by
Section 148 of the United States Internal Revenue Code and
regulations adopted thereunder.
section 6. PAYMENT ON BONDS. The principal and
interest on the bonds shall be payable at the office of Bank of
America National Trust .and Savings Association, 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 anew owner by completing the assignment -
certificate on the reverse of the bond and delivering the bond
to the registrar. Upon reregistraton, 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.
fiction 8. COVENANTS. In the event of a default in
the payment o;f any bond or any installment of interest thereon,
bondholders shall have the remedies set forth in the Improvement
Bond Act of 19.1.5. 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
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levied in Lakeville Highway Assessment District No. 15 becomes
delinquent, the City Council shall cause an action to be filed
in the Superior Cov.rt of the County of Sonoma 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
use had been reasonably expected at the date the bonds are
issued, could have caused the bonds to be "arbitrage bonds"
within the meaning of Section 148 of the United States Internal
Revenue Code of ;1986, and regulations of the Internal Revenue
Service adopted thereunder, and further shall rebate to the
United States any amounts actually earned as arbitrage in
accordance with the provisions of that Code and those
regulations.
Section 8.3. MAINTENANCE OF TAX EXEMPTION. The City
will take all reasonable actions required to maintain the status
of the bonds as bonds exempt from federal. income taxes and State
of California personal income taxes.
Under'the.; power and authority conferred upon this Council by the' Charter of said City.
R.
REFERENCE: I Hereby certify 'the forepgipg,~solution way ;ntrnd~+ced and adopted by the " Approved
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Council of the City of -Pet '{;fie ~ , ,[ fX(S~ meeting
on the .::..:..~-~.~~. da Cum -ai.1+~ F .k ..:: .............• 19---. $.~ by the
following vote: - ...----••--- ------ -------=----•---•-----
ity ttorney
AYES: Sobe-l, Balshaw, Cavani,_Davis, Tencer, Vice Mayor Wools
NOES.: 0 Y• -- -
ABSENT: M yor Hillgoss
ATTEST : ..... ::..:.:.:.:.:....:............. - - •' •--.-.....-_-.....-...........-.....-.
City Clerk Mayor,
Council File ....................................
ca iu.H, ~z~s.u~~:.:..:.8,7-256..:v,cs.
...............
MATURTTY SCHEDULE
CITY OF PETALUMA, LAKEVILI,E HIGHWAY ASSESSMENT DISTRICT NO
SEPT 2
MATURITY PRINCIPAL INTEREST
DATE AMOUNT RATE
1989 $7,.87.2.00
1990 35,000.00
1991 35,000.00
1992 40,000.00
1993 40,000.00
1994 45,000.00
1995 45,000.00
1996 50,000.00
1997 50,000.00
1998- 55,000.00
1.999 6D,000.00
2000 ~ 65,000.00
2001 70,000.00
2002 75,000.00
TOTAL: $672,872.00
b
5.5096
5.75
6.00
6.25
6.50
6.75
7.00
7.20
7.40
7.60
7.80
8.00
8.10
8.20
EX l R li'
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United States of America
State of California
County of Sonoma
REGISTERED
Number
REGISTERED
IMPROVEMENT BOND
CITY OF PETALUMA
LAKEVILLE HIGHWAY ASSESSMENT DISTRICT N0. 15
SERIES N0. 1987-1
INTEREST RATE MATURITY DATE BOND DATE CUSTP NUMBER
REGISTERED OWNER:
PRINCIPAL SUM:
Under and by virtue of the Improvement Bond Act of 1915,
Division 10, of the Streets and Highways Code; (the "Act"), the City
of Petaluma, County of Sonoma, 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. 86-18, adopted by the City
Council of the City of Petaluma on the 21st day of January,. 1986, as
later amended, pay to the registered owner stated above or
registered assigns,, on the maturity date stated above, the principal
sum stated above, ,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 aut°henticated and registered as of an interest payment
EXHIBIT B
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, 19'89, 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, 1989.
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 SSDE 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 pres:ent;ed 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
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. ' ,- .
the certificate of authentication and registration hereon endorsed
shall have been-dated and signed by the Bank.
IN WITNESS WHEREOF, said City of Petaluma 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 10th day of September, 1987.
CITY OF PETALUMA
Clerk
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
3
',~,
(REVERSE OF BOND)
CITY OF PETALUMA
LcSKEVILLE HIGHWAY ASSESSMENT DISTRICT N0. 15
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 Petaluma 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 is ued~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 (,18) days immediately preceding any interest payment date.
The City and the Bank may treat the registered 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 three 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
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