HomeMy WebLinkAboutResolutions 86-289 N.C.S. 10/27/1986:-:
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of the amity of ~~~alurna, California
RESOLUTION AUTHORIZING ISSUANCE OF~REFUNDING BONDS
REFUNDING AS'S'ESSMENT DLS.TRICT N0. 10
The City Council of the City of Petaluma resolves:
..RECITALS. On September 2, 1986, the City Council of
the City of Petaluma 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 distrc in the total amount of
$2,.287,745.99. These reassessments will be recorded in the
office of the County Ree'order of the County of Sonoma 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.
'I'S'SUANCE~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, Refunding Assessment District
'No. 10, City of Petaluma, Sonoma 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 October 29, 1986. Bonds
shall mature and shall. bear interest at the rates set forth in
the table attached as Exhibit A.
ORIGINAL
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APPOINTMENT OF PAYING AGENT REGISTRAR AND TRANSFER
A E T. The City Council hereby :appoints Bank of America
National Trust and Savings Association as paying agent,
regis rar and transfer agent for the bonds in accordance with an
agreement between the City and Bank heretofore approved by the
City Council.
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 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. Refunding Assessment District No. 10.
Sec ion 5.1. REFUNDSNG 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
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°~' bonds for Refunding Assessment District No. l0 shall be
deposited with the Treasurer of the City.' Disbursements from
the refunding fund shall be made in acc:ordanee with the
Reassessment Report for these proceeding .
REDEMPTION FUND. The redemption fund shall be
maintained by the 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.
SPECIAL RESERVE FUND. The special reserve fund shall
be maintained by the City. There shall. be deposited into the
special reserve fund the amount of $8'0,071.11 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
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
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~~ 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 Refunding Assessment District
No. 10. ,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 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.
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PAYMENT ON BONDS. The principal and interest on the
bonds shall be payable at Bank of America 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
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' 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 matur ty of each 'bond.
REREGISTRAT.ION. 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.
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:
FORECLOSURE.. OF LIENS. Tf any installment of the
principal or interest of any reassessment levied in Refunding
Assessment District No. 10 becomes delinquent, the City Council
shall cause an action to be filed in the Superior Court of the
County of Sonoma 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
(15.0) days after the date of delinquency.
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
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Section 103(c) of the United States Internal Revenue Code of
1954.., as amended,.. and regulations of the Internal Revenue
Service authorized thereby.
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Under the; power and 'authority conferred upon this Council by the Charter of said City.
I hereby certify the for_e°oine Resolution tvas in o u ed and a ppted by the
Council of the City of Petaluma at .a (Regular)}ICJ ) meetin A roved'as to
}~ B f m
...:...:7th.......... day of .--•---..... Octo er .
on the ~ .:...:......:..:..... 19.6.., by the
- following vote:
..
Attorney
AYES: SOBEL, WOOLSEY, . CAVANAC~-I, BALSHAW, VICE MAYOR TE[~TCER, MAYOR MA
NOES: --% -
ABSENT: DAVI
ATTEST- ------------ =----- ----- ------•--....._-----.:.....------...-...........------•-•-•---_.... ..-------=------•-•---------..:.............................------------........_---•----=---
Ci ~ Ieik Mayor
COUNCIL FI LF
FORM: CA 2 1'/80 RES. No- 86-2i~g.
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MATURITY SCHEDULE
Refunding Assessment Distriot No. 10, City of Petaluma
SEPT 2
MATURITY PRINCIPAL INTE~2EST
DATB AMOUNT RATE
1988 $147,745.99 5.6.0%
1989 120,000.00 .6..1.0
1.990 12D,000.00 6.40
1991 170,000.00 6.70
1992 200,000.00 6.90
1993 205,000..00 7.1.0
1;994 205,000.0.0 7.30
1.99.5 205,000.00 7.40
1996 160,000.00 7.5.0
1997 150,000..00 7.60
1998 145,000.00 7.70
1999 140,000.00 7.80
2000 155,000.00 7.90
2001 166,000.00 8..00
TOTAL: $2,287,745.99
EXHIBIT A
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United States of America
State of California
County of Sonoma
REGISTERED REGT'STERED
Number $
REFUNDING BOND
CITY OF PETALUMA
REFUNDING, ASSESSMENT DISTRICT N0. 10
SERIES N0. 1986-1
INTEREST RATE MATURITY DATE BOND 'DATE CUSIP NUMBER
Under and by vixtue 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 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 reassessments
made for the refunding of all outstanding 191:5 Act bonds in the
Assessment District No. 10 NS, more fully described in the
Resolution of Intention adopted by the City Council of the City of
Petaluma on September 2, 1986, pay to:
or registered assigns, on the maturity date shown on the attached,
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, 1,9,88, 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, 19.8'8. 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 Tran fer Agent, Registrar and Paying Agent, in San Francaco,
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.
EXfiIBIT B RESO,~~-~ NCS
REFERENCE ZS 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 Petaluma 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 29th day of October, 1.986.
CITY OF PETALUMA
Clerk
Mayor Treasurer
(SEAL)
Certificate of Authentication and Registration
This is one of the Bonds described in the within
mentioned Resolution o'f 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
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(REVERSE OF BOND)
CITY OF PETALUMA
REFUNDING AS'SES'SMENT DISTRICT N0. 10
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 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 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 point owners),. a corporation, a partnership
or a trust.
Neither the City nor the Bank shall be required to make
such exchange or regis ration 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 .Marsh 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 STURGLS, NESS, BRUNSELL ~ SPERRY a
professional corporation, Emeryville, California, on file in my
office.
City Clerk
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