HomeMy WebLinkAboutResolutions 9934 N.C.S. 10/11/1983_ 1~
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~ of tl~e City of Petaluma, Caliiomi~
AUTHORIZING ISSUANGE OF BONDS
SPECIAL ASSESSMEN:T DISTR.ICT N0. 10 NS
The City Council of the City of Petaluma resolves:
Section l. RECITALS. On April 20, 1981, the City
Council of the City of Petaluma adopted its resolution of
in~.ention to order improvements in Special Assessment District
No. 10 NS under the provisions of the Municip al Improvement Act
of 1913 (the "Act"). The 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 assessmen:t district in the total amount of
$2,257,554.00. These assessments were recorded in the office of
the County Recorder of.the County of Sonoma on September 16,
1983, and thereupon became a lien on each:parcel assessed. The
period within which parcel owners might pay their assessments in
cash without interest was waived, and there remain unpaid
assessments in the total amount of $2,257,554.00.
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 assessmen:ts. The bonds shall be designated, "Improvement
Bonds, Special Assessment District No, l0 NS, City of Petaluma,
Sonoma County, California. Bonds sha1T be issued in
,
ORI~~~AL
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denominations of.$5000 or integral multiples thereof, and shall
be dated October 2, 1983. Bonds shall be numbered, shall mature
and shall bear interest at the rates stated in the~following
table:
DATE.OF BOND ANNUAL INTEREST
MATURITY NUMBERS AMOUNT RATE-~
198'5 A $27,554.00 9.750
1986 B 100,00'0.00 9.750
1987 C 115,000.00 9.750
1988 D 125,000.00 9.750
1989 E 140,000.00 9.750
1990 F 145,00:0.00 10.000
1991 G 160,00'0.00 10.000
1992 H 185,000.00 10.250
1993 J 195,d00`.00 10.250
1994 K 200,000.00 10.500
1995 L 205,000.00 10.250
1996 M 165,000.00 10.870
1997 N 165,000.00 10.870
199g P 165,000.00 10.8J0
1999 Q 165,000.00 10.87a
$2,257,554.00
Section 3. APPOINTMENT OF PAYING AGENT, REGISTRAR AND
TRANSFER AGENT. The City Council hereby appoints the City
Finance_O•f_f::icer and Treasurer as paying agent, registrar and
transfer agent.for the bonds.
Section~~4. FORM AND EXECUTION. Bonds shall be issued
as fully registered bonds in the form set forth as Exhibit A to
this resolution. The bonds shall be signed by the City
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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
eaeh bond shall be authenticated by the manual signature of the
registrar.
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
Special Assessment District No. 10 NS.
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
depos~ted in the improvement fund to be maintained by the City
Treasurer. Disburseme~nts 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
he.retofore approved by the Council, which report and budget are
subject to modification by the Council from time to time as
prescribed by the Act.
Section 5.2. REDEMPTION FUND. The redemption fund
shall be maintained by the paying agent of the City. All
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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
be~efit of the bondholders. Payment of the bonds at maturity,
or at redemption prior to maturity, and all interest on the
bonds sha11 be made from the redemption fund.
Section 5.3. SPECIAL RESE~VE FUND. The special
reserve fund shall be maintained by the City Treasurer. There
shall be deposited into the special reserve fund the amount of
$180,604.00 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 i_nto the
redemption fund in accordance with Section 8808 of the Streets
and Higliways 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
installment,s was made from the special reserve fund.
B. If any assessment is prepaid before the 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
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amount of the prepaid assessment bears to the total amount of
ass,essments originally levied in Special Assessment Dis'trict
No. IO NS. 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
regulation, the City Treasurer is
interest from the spec.ial reserve
from time to time, and to establi
annual installments of assessment
same amount in the year following
set by federal statute and
directed to transfer accrued
fund.to the redemption fund
sh pro rata credits against
principal and inter.est in the
the year of transfer.
D. When the amount in the special reserve ~und 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.
Sec.tion 6. PAYMENT ON BONDS. The principal and
interest on the bonds shall be payable at City Hall, Post and
and English Streets, Petaluma, California 94953. Principal and
interest shall be paid by check, draft or warrant mailed to the
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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 $5000 or any integral multiple thereof.
Sectior. 8. COVENANTS. In the event of a default in
the payment of any bond or any installment of interest thereon,
bondholders shall have the remedies set forth in the Improvement
Bond Act of 1915. In addition, the City Council makes the
following.covenants, which shall constitute a contract with the
bondholders:
Section 8.1. FORECLOSURE OF LIENS. If any
installment of the principal or interest of any assessment
levied in Special Assessment District No. 10 NS becomes
delinquent, the Council shall cause an action to be filed in the
Superior Court of.the County of Sonoma to foreclose the lien of
the delinquent assessment under the authority of Section 8830
and following of the Streets and Highways Code of the State of
California. This action shall be filed not later than one
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hundred fifty (1S0) days after the date of delinquency.
Section 8.2. ARBITRAGE. During the term of the
bonds; the City will make no use of bond proceeds which, if such
use had been reasonably expected at the date the bonds are
issued, would have caused the bonds to be "arbitrage bonds"
within the meaning of Section 103(c) of the United States
In~ernal Reve.nue Code of 1954, as amended, and regulations of
the Internal Revenue Service authorized thereby.
Under the power and authoriry conferred upon this Counu7 by the Charter of said City.
I hereby artify the foregoing Resoluaoa was int;oduced and adopted by tke
Counci] of the City of Petaluma at a(Regular) (Adjourned)~ meeang Approved as to
llth .,, day of OCtObE'Y' form
on tbe. •••---••--•......_..... ...... . .........••••-•-•-._._._.._...-•-......_._...., 19....:$y~by the
foilowing v_ote:
....................•-.•---......_.......... _.
City Attorney
AYES: Perry;- Bati~lia,. Bond, Cavanagh, Balshaw, Vice Ma.yor Harberson, Mayor Ma.ttei
NOES: None
ABSENT: N ~ ~'
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ATTEST: . ,.- = - - -- . .. :. .... . . .. .... .. •-- -- •--•- -- ~--~-.--I~%!- • : ---._. ~--•-•--._.:.. _..---•--~-••-
City Clerk . ' ayor `/6' . ~
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IMPROVEMENT BOND
CITY OF PETALUMA
SPECIAL ASSESSMENT DISTRICT IO NS
SERIES N0. 1983-1
Under and by virtue of the Improvement Bond Act of
1915, Division 10, of the Stxeets and Highways Code, the City of
Petaluma, County of Sonoma; S.~ate of California, will, out of
the redemption fund for the payment of the bonds issued upon the
assessments made for the improvements in Special Assessment
District 10 NS more fully described in the Resolution of
Intention No. 9127 N.C.S., passed by~the City Council of the
City of Petaluma on the 20th day of April, 1981, as later
amended, pay to. ~
or registered assigns, on July 2, 1985, the principal sum of
$5000 with interest thereon at the rate of $ per annum, all
as her:einafter specified, and at the office of the City Finance
Officer and Treasurer, the transfer.agent, registrar and paying
ag.ent in Petaluma, California. ~ ~
THIS BOND SHALL NOT BECO~E VALID FOR ANY PURPOSE UNTIL THE
CERTIFICATE OF AUTHENTICATION AND REGISTRATION HEREON SHALL HAVE
BEEN DATED AND SIGNED BY THE CITY FINANCE OFFICER AND TREASURER.
The interest is payable semiannually, to wit: on the
second day o.f January and July in each year hereafter, by check
or draft mai"led to the owner hereof at his address as it appears
on the registration books of the City (or at such address as may
EXHIBIT A 9934
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have been filed with the City for that purpose) as of the 15th
day preceding each interest payment date; p:rovided that the
first interest payment date shall be January 2, 1985, and
thereafter interest shall be paid semiannually.
If this bond. is authenticated and registered before
January 2, 1985, it shall bear interest from its date.
Otherwise, this bond shall bear interest from the interest
payment date on or next preceding the aa'te of its authentication
and registration.
Additional provisions of this bond are set forth on
the reverse hereof.
IN WITNESS WHEREOF, said City of Petaluma has caused
this bond to be signed in facsimile by the City Finance Officer
and Treasurer of said City and by its Clerk, and has caused its
Clerk to affix hereto in facsimile its corporate seal, all on
the 2nd day of October, 1983.
CITY OF PETALUMA
Clerk City Finance Officer and Treasurer
(SEAL) .
Certificate of Authenti,cation and Registration
This bond' has 'been registered on , 19_
City Finance Df.f`icer and Treasurer
By
Authorized Officer
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(REVERSE OF BOND)
CITY OF PETALUMA
SPECIAL ASSESSMENT DISTRICT 10 NS
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 said 1aw with the purpose of providing means for paying
for the improvements described in said Resolution of Intention,
as later amended, and is secured by the money in said redemption
fund and by the unpaid assessments ma~de for the payment of said
improvements, and, including principal and interest, is payable
exclusively out of said fund,
Tne bonds are issuable only as fully registered bonds
in denominations of $5,000 or integral multiples thereof, except
Bond No. A-1 in the principal amount of $ Bonds may be
exchanged, at said office of the City Finance Officer and
Treasurer, for the same aggregate principal amount of registered
bonds of the same maturity but of other authorized
denominations. -
This'bond is transferable by the registered owner
hereof,,in person or by his attorney duly authorized in writing,
at said offic`e of the City F'inance Offieer and Treasurer. Upon
such transfer, a new registered bond or bonds, of any authorized
denomination, of the same maturity, and 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
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individual (including joint owners), a corporation, a
partnership or a ~trust.
The City shall not 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
may treat the owner hereof as the absolute owner for all
purposes notw"ithstanding ariy notice to~the contrary.
.~ This bond will continue to bear interest after
maturity at the rate herein stated; provided, it is presented at
maturity and payment thereof is refused upon the sole grounds
that there is not sufficient money in said redemption fund with
which to pay the bond. If the bond is not presented on
maturity, interest thereon will run to maturity.
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 the giving of notice provided under said law and by
paying principal and accrued interest together with a premium
equal to five percent of the principal.
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