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HomeMy WebLinkAboutResolution 2001-114 N.C.S. 06/18/2001 ReS®IUtioI1 N0.2.001-114 ~.C.S. of the City of Petaluma, California A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETAL.[Ti~L<~. CONFIRMING UNPAID ASSESSMENTS, AUTHORIZING ISSUANCE Oh' IMPROVEMENT BONDS, AND. DIRECTING ACTIONS WITH RESPECT THERETO Assessment District 2E!00-01 (McDoweil/E. Washington) Resolution No. 2 0 01-114N.C.s. TABLF OF CONTENTS Page Section 1. DEFINITIONS .......................................................................................................1 Section 2. LIST OF UNPAID ASSESSMENTS ...........:.........................................................2 Section 3. ISSUANCE OF BONDS ........................................................................................2 Section. 4. FORM OF BOND .....:............................................................................................3 Section. 5. PAYMENT OF`BONDS .........................................................................................3 Section 6. DESIGNATLON OF AGENT .................:.:.............................................................3 Section 7. EXECUTION .:....................................................................................................:...3 Section 8. AUTHENTICATION :............................................:................................................3 Section 9. PREPARATION, .SALE AND DELIVERY OF BOND .........................................3 Section 10. IMPROVEMENT' FUND ..........................................:............................................3 Section 11. REDEMPTION FUND ...................................................................................:......4 Section 12. COLLECTION OF ASSESSMENTS ....................:.:.............................................4 Section 13. REDEMPTION PRIOR TO MATURITY ..............................................................5 Section 14. EXCHANGE OF BOND...: .........................5 Section 15. NEGOTIABILITY,'REGISTRATION AND TRANSFER OF BOND ..................5 Section 16. 'OWNERSHIP OF BOND ............:....................:............................:.....................:.5 Section 17: ADVANCES FROMAVAILABLE SURPLUS FUNDS ......................................5 Section 1-8. COVENANT TO FORECLOSE ............................:...................................:............6 Section 19. INVESTMENT OF FUNDS ...........................................................................:.....:6 Section 20. AUTHORITIES OF FINANCE DIRECTOR ...............................:..................1:.....6 Section 2I. CERTIFIED COPIES .............................................................................................6 EXI-II~BIT A 'Form of .Bond i RESOLVED, by the City Council (the ":Council"). of the City of Petaluma (the "City"), County of Sonoma, (the "County") California-:. WHEREAS; on October 16, 2000, "this Council adopted its Resolution of Intention. to Make Acquisitions and Improvements, (ttie "Resolution of Intention") under the. Municipal. Improvement Act of 1913, Division 12 of the Streets and Highways. Code ;of .California, (the "Act") to initiate proceedings under. the Act in and for the City's. Assessment District 2000-01 (McDowell/E. Washington) (the "Assessment District"). WHEREAS, notice of the recordation of the assessment and of the time within which assessments were duly waived by all owners of property subject to such proceedings and a List of Unpaid- Assessments has been filed with the City; NOW,'THEREFORE, IT IS' ORDERED, as follows.: Section 1. IDEFINITIONS. Unless the context otherwise requires, the terms defined in this ,Section 1. shall, for all purposes of this Resolution, have the meanings. herein specified and shall be equally applicable to both the singular and plural forms of any of he terms herein defined. "A. ct" means the Municipal Improvement Act of 1913, Division 12 of the Streets and Highways Code as supplemented by the City's charter powers. "Advances" .means the amounts advanced by the City for the purchase price of the Bonds and placed in the- respective Improvement Accounts to pay or reimburse the costs of issuing the bonds and' making. of the improvements to each of the Assessment Parcels, as such amounts are endorsed on each of`the Bonds. "A;~ent" means the Finance Director of the City acting as the Agent under the Section 6 hereof. "Assessment or Assessments" means the unpaid amounts of the special assessments levied against the Assessment Parcels within :the boundaries of the Assessment District pursuant ~to the Act and the proceedings of the Counci'I under the Resolution of Intention, for the purpose of paying Debt Service on the Bonds. "Assessment District" means;that portion of the District designated "Assessment bistrict," as established. in proceedings under the... Ast and Resolution of Intention. `Bond" or "Bonds" means the Improvement Bond, City of Petaluma, Assessment District 2000-01 (McDowell/E. Washington) Series 2001-1. "Bond Date" :means September 2, .2000. . "Bond Law" means the Improvement Bond. Act of 1915, Division 10 of the. California Streets .and Highways Code, as modified under the charter city powers of the City as herein provided. "Bond: Year" means the one year .period beginning on September 2 in each year and ending on the September 1' in the following year, except that the first Bond Year shall begin on the Closing Date and end on September 1,2001. "Clerk" means the official who is the ,city clerk or deputy or assistant city clerk. "City„ means the City of Petaluma, County of Contra Costa, California. "Closing Date" means fh'e date upon which there is a physical delivery of the Bonds in exchange for the first Advance for the Bonds. "County„ means the County of Sonoma, State of .California. ~ "Debt Service" means the scheduled amount of interest and amortization of principal payable on the •Bonds during the period of computation, excluding amounts scheduled during such period which relate 'to principal which has been "retired before the beginning. of such period. "Finance Director" means. the Administrative Services Director or other official of the City who is the, chief financial officer or deputy 'thereof: ~ ~ • "Imnrovernent . Fund" means the- City of Petaluma;, Assessment District 2000-01 (McDowell[E. Washington), Improvement Bonds, Improvement .Fund established under Seefion 10 hereof. "Interest Payment Date" means the second days of March and September in each year, being the dates upon- which interest on the Bonds is payable, commencing on March 2, 2002. "Interest.Rate" means the .actual rate of interest of the Bonds which is not to exceed 8°Io per annum. "Original Purchaser" means the City as first purchaser of the Bonds. "Project„ means the acquisitions and improvements .described in the Resolution of Intention. ``Redemption Fund"-means he City of Petaluma„ Assessment District 2000-0'1 (McDowelUE. Washington), .Improvement Bonds, Redemption Fund established under Section 11 hereof. "Registered Owner" means the person or entity in whose name any Bond is registered by the Agent. "Resolution" or "Resolution of Issuance" means this .Resolution as adopted or hereafter amended. "State" means the State of California. Section 2. LIST' ®F UNPAID ASSESSMENTS. The Assessments now remaining unpaid on the Assessment Parcels are as shown on the list. thereof {the "List of Unpaid Assessments") .and on file with .the Finance Director and by this. reference is hereby approved and made a part. hereof. For a particular de"scrigton of the lots or parcels of land bearing the respective assessment numbers set forth m said list; :reference is hereby ,made to the assessment and to the diagram heretofore recorded.. in the office. of the Engineer of the City after confirmation thereof by this Council. • Section. 3. ISSUANCE OF BONDS. (A) Authority. The Bonds are authorized under the provisions of the Bond Law, except that, pursuant to the charter city powers of the City; the proceeds of the bonds shall be used to f Hance. certain public street improvements and related costs, all as provided in the proceedings under the Resolution of Intention. (B) Series. The -Bonds shall be issued in a single series of bonds designated "Series 2001-1." (C) Terms. The .Bonds shall be dated as of September 2, 2001 and shall mature and be payable on each .September 2 in each year beginning on September 2, 2002, until maturity as prodded in the form of the Bond in Exhibit A hereto. Interest on the Bonds shall be at the Interest Rate, computed on a 360-day year, payable on each Interest Payment Date. -2- Section 4. 1F'ORM OF BOND. The Bonds shall be ,issued only as single, fully registered bond and shall be substantially in the form set forth in Exhibit "A" hereto. The Bond shall be ' registered initially in the name of the City as the owner thereof: Section 5. .PAYMENT OF BONIDS:, 'The .Bond.. shall ,bear interest at the Interest. Rate, payable on.each Interest Payment Date: The principal of the ..Bonds shall be payable in lawful .money of the United States of America at the offce. of the Finance ;Director in Petaluma, California. Interest on the Bond shall be paid. to the registered owner by check or draft mailed to the address entered in the registry book provided for herein, as of the fifteenth (15th) day of the calendar month immediately preceding each Interest Payment Date. If the City is the owner of the Bond, any, payments: shall be made by book .entry only. :Section 6. DESIGNATION OF AGENT The Finance. Director is hereby designated to perform. the actions: and duties required.. under this Resolution for the management of funds and accounts herein provided for the Bond and provide for the registration, authentication and transfer of the Bond. Section 7. EXECUTION. The Bond shall be executed. on behalf of the City and under its official eai by manual signatures the Finance Director and the City Clerk, and the official seal may be placed on the Bond in like manner; such signing and sealing shall constitute and be a sufficient and binding execution of the Bond. The Bond shall then be authenticated by the Finance Director. If any officer whose signature appears on the Bonds ceases. to be such officer before the authentication;.and delivery of the Bond fo the purchaser whereof; such signature shall be as valid as if such officer had remained in office until the authentication and delivery of the Bond. Section 8: AUTHENTIGAT,ION. Only the .Bond. as,. shall bear thereon a :certificate of authentication substantially in the form: 'on the Bond, manually executed by the Finance Director, shall be valid or obligatory for any ,purpose or entitled to the benefits. of this Resolution, and such.: certificate of the Finance Director ahall 'be conclusive evidence that the Bond so authenticated has been duly- executed, authenticated and d'eliwered hereunder and are entitled to the 'benefits of this resolution. The Finance Director's .certificate of authentication on .the Bond shall be deemed to• be executed by it ~if signed by an authorized :officer or signatory of. the Fi"nance Director, but it shall not be necessary that the same officer or signatory sign the certificate of authentication on the Bond issued hereunder. Section 9.:PREPARATION SALE AND DELIVERY, OF -BOND. The Finance Director is hereby directed to cause the Bond to be prepared in accgrdance with this Resolution :and to authenticate and deliver the Bond tp ;the Original Purchaser thereof; ,and upon the performance of the conditions; applicable to the delivery thereof and the City Hereby acknowledges that it shall be the Original Purchaser of the Bond. The City ,shall be the origirial~ purchaser of• the~.Bond and the. Finance Director and the City C erk are hereby authorized and directed'to'take all actions required to complete the sale and del•yey of theBond .provid'ed .that: the aggregate principal amount of ,theBond does not exceed ~ the amount of unpaid assess "meets as shown. on the list thereof herein approved, the term of years to maturity of the -Bond .does not exceed ;25 years. and the' rate of net interest cost of the Bond does not exceed the Interest .Rate. per annum. Pursuant ,to the. authority of the charter of the City, this Council hereby finds and determines: that the provisions. of Section 53601 (a) of the California Government Code shall not apply to the purchase by the City of the Bond for investment. Section 10. IMPROVEMENT. FUND. The Finance Director shall establish the .Improvement Fund, into which. shall. be placed 'the proceeds received "..from. the sale of the Bond, together with the proceeds .received from any cash payment of Assessment attributable to each of the Bond. All moneys in the Improvement Fund shall be withdrawn only upon cheeks or warrants of the City and shall be applied. exclusively to the payment of the costs of issuing the Bond and the costs of the acquisitions and/or construction of the .Project. and improvements described in the proceedings under and pursuant to the Resolution of Intention, as now or hereafter changed or modified by appropriate -3- legal proceedings, and all expenses incidental thereto:- It~ is hereby specifically provided that the Finance breetor be authorized to make deposits to the ,Improvement Fund .from time to time as may best serve the financial interests of the City.. Section. 11. REDEMPTION FUND. The Finance Director shall establish the Redemption Fund, into wfiich•shall be placed all Burris receiued'fi•om, tfie collection of Assessments provided for in Section T2 hereof;, and of the .interest and penalties thereon, Moneys in the Redemption .Fund shall be used at ouch times and in. such .amounts. as are required to make- timely payments of the principal and the interest due on the Bond. Within the. Redemption ,Fund, -the Finance: Director may establish a separate Prepayment Account to be used.'to collect and :disburse the proceeds of any prepayments: of assessments and penalties, interest and costs thereon; as provided in the applicable provisions of the .Bond. Law. Section 12°. COLLECTION OF ASSESSMENTS.. The Assessments shown on the List of Unpaid Assessments, together with the interest thereon at the Interest Rate, shall be payable in annual series corresponding in number to the number of serial maturities of the .Bond as finally determined by the Finance Director. An annual. proportion of each Assessment shall be payable in each year preceding 'the date of maturities of represented by the Bonds; sufficient to pay the Bond when due;. and such proportion of each Assessment coming due in any year;, together with the annual interest thereon, shall be payable at the same time as the general taxes on real property are payable. .The Bonds:. shall- 6ecome• delinquent at the same times and in the; same proportionate amounts and bear the same proportionate penalties and .interest after delinquency as do the general taxes on real property. _ The Finance Director is hereby authorized and directed. to cause the Assessments to be collected.. by the County upon the regular property tax bills. All sums received from the collection of the Assessments and. of the interest and any penalties .thereon shall be placed in the Redemption Fund. In addition to any amounts authorized pursuant to section 8682 of the Bond Law to be included with bhe annual amounts of'installments as aforesaid, the' City, pursuant to section 8682.1 of the. Bond. Law, may cause to be entered on the assessment roll on which taxes will next become due, opposite -each lot or parcel of land within the Assessment, District in the manner set forth in acid section 8682, each lot's pro rata share of -the estimated annual expenses of the City in connection with. the administrative duties thereof for the Bond, including, but not limited to; the costs of • registration, authentication,. transfer and compliance with the provisions hereof. Delinquent ' assessments shall be subject to foreclosure pursuant to Section T$' hereof. -4- " Section I3: REl)EIVIPTION PRIOR TO 1VIAT><J'RITY. The Finance Director shall cause the Bond to be called for redemption as herein. provided upon prepayment of assessments in amounts- sufficient therefor, or whenever sufficient surplus .funds are available therefor in the Redemption Fund.. The provisions. of Part 1,1._.1 of the .B_ond Law are applicable to the advance payment of Assessments and to the calling of the'Bond: For any Bond registered in the name of the City, the Bond shall be subject to call .and. redemption; at ,par and without penalty or premium, on any date at the principal amount thereof and accrued interest to the date of redernp_tion plus the City's reasonable costs of processing and notice of advanced maturity shall not be published: in the event of .partial redemption only, the Finance Director shall endorse thereon a notation of such partial redemption in the form provided on the Bond. 'Section 14. EXCHANGE OF' BOND. The Bond; upon .surrender thereof at the office of the Finance Director;. together with an assignment duly executed Eby the registered owner thereof or attorney or legal representative in, such form as shall. be satisfactory to the Finance Director, may; at the option of such owner, be exchanged for an aggregate principal amount of Bond equal to the principal. amount of . the Bond so surrendered, ..and of any authorized denomination or denominations. The City shall make provision for the exchange of the Bond at the office of the Finance Director. Section 15. NEGOTIABILITY, REGISTRATION AND TRANSFER OF BOND. The Finance Director shall keep books for the .registration, and for the registration of 'transfers, of the Bond as provided in this resolution which. shall at all Times be open to inspection by the City. The transfer ,of the Bond may be registered only' upon such books upon surrender thereof to "the Finance Director together-with an assignment duly executed by the owner or attorney or legal representative in such- forme as shall be satisfactory to the Finance Director. Upon any such registration of transfer, the City shall execute and the 'Finance Director shall authenticate and deliver in exchange for such Bond a new Bond..°registered in the: name of the transferee, and in an aggregate principal amount equal to the principal amount of such Bond so surrendered. In all. cases in which Bond shall be exchanged, the City shall execute and the Finance Director . shall authenticate and deliver at the earliest practicable time a.Bond in accordance with the provisions of this resolution: The Bond surrendered in any such exchange or registration of transfer shall forthwith be cancelled by the Finance Director. The City or the Finance Director may make a; charge for every such exchange or registration of`transfer of the Bond uffcient to reimburse it for any tax or other governmental charge required to~ be paid with respect ao such exchange or registration of transfer, but :no other charge shall be made to any owner for the privilege of exchanging or registering,.. the transfer of Bonds under the- provisions of this resolution. Neither the City nor .the Finance. Dir_eetor shall be required to make .such exchange or registration of transfer of the Bond during; the fifteen (15) days of the .calendar month immediately preceding any Interest Payment Date.. Section 16: OWNERSHIP OF BOND. The Registered O- caner shall be deemed and regarded ° , as the absolute. owner thereof for .all purposes, and payment of or on account of the principal, sand. ' redemption premium, if any, of the Bond; and .the interest on the Bond, shall be made: ;only to or upon- the order `.of `the Registered. Owner 'thereof or such. owner's legal representative.. All such payments: shall be, valid and. effectual to satisfy .and discharge the liability upon the Bond; and interest thereon to the extent of the .sum or sums so paid. Section 1,7. ADVANCES FROM AVAILABLE SURPLiJS FUNDS. The. City shall be the purchaser bf property upon which payment of an annual, installment of principal and interest due upon any of said unpaid assessments. is delinquent, in like manner in which it becomes or may become the purchaser of property sold for the nonpayment. of general taxes, and. shall transfer from available surplus funds into the- .Redemption Fund for the Bond; as an advance recoverable upon sale or redemption of the. property, the. amount of the delinquent. unpaid assessment installment upon which said sale is made. The City-shall also pay and transfer from available surplus funds into the Redemption Fund, as an advance .recoverable upon sale or rede_ mption of the property, the amount of any future delinquent unpaid assessment installments on such property pending redemption. -5- Section 18. COVENANT TO FORECLOSE. `The City hereby covenants with and for the benefit of the Registered Owner of the Bond that it will order;. and cause to be commenced within 90 days following the date of delinquency, and thereafter diligently prosecuted; an action in the superior court to foreclose the lien of any assessment or installment .thereof not paid when due, pursuant to and as provided in Sections 8830 through $835,. inclusive,. of the Bond Law. The Finance Director shall notify the City Attorney of any such delinquency. of which the Finance- Director is aware, and the City Attorney shall commence, or cause to be commenced, such .foreclosure proceedings. The City Attorney is .hereby authorized to employ counsel to conduct any such foreclosure proceedings without further action of the Councih Section 19. INVESTMENT OF FUNDS. Moneys in the Improvement Fund and Redemption Fund, shall, whenever practicable; be invested in legal investments for the City under .applicable law and consistent with the City :established., investment policies for the moneys held pursuant to this Resolution at the time when any of such moneys are to be invested therein. Any income therefrom or interest thereon shall accrue to .:and be deposited in the, fund from which such moneys were invested. Section. 20, AUTHORITIES OF FINANCE DIRECTOR. ,All actions mandated by this Resolution. to be performed. by the Finance Director may be performed by the designee of thereof or such other official of the City. or independent contractor, contracfor~ or trustee duly authorized by the City Council of'the City to perform such action or actions in furtherance of all or a specific portion of the requirements hereof. The provision of all notices of assessment; including., by publication .and mailing o owners of properties w. ithin the Assessment District, is hereby approved and ratified. The Finance Director and the Clerk are authorized to complete Exhibits A to this Resolution to assure the timely delivery of:~ he Bond. Section 2r1.~ CERTIFIED COPIES. The City Clerk shall furnish a certified copy of this resolution to the.+Finance Director. -6- Under the power and authority conferred upon this Council by the Charter of said City. REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the A ro o Council of the City of Petaluma at a (Regular) (A7d,~81'Ct'1I8i1~ Q6~eCi~)~[ meeting on the ....~.~.~.kl.......... day of .......,~.llxl.~ ZOQ.~., by the following vote: City Attorney AvES: O'Brien, Healy, Torliatt, Maguire, Moynihan, Vice Mayor Cader-Thompson Mayor Thompson NOES: None ABSENT: None ATTEST: ...........~.R.~i:~^ City Clerk Mayor CounciJ~Fj~IG,,....._. ~~~N~C.S~ Res. N EXHIBIT A FORM OF BOND UNITED. STATES OF AMERICA STATE OF CALIFORNIA COUNTY OF SONOMA .IMPROVEMENT BOND CITY OF~PETALUMA ASSESSMENT DISTRICT 2000-O1 (NIcDOWELL/E.WASHINGTON) SERIES 2001 Under and by virtue of the Improvement Bond Act of 1915, Division 10 of the Streets and Highways Code of the State of California (the "Act"), the City of Petaluma (the "City"); County of Sonoma,, State of California, will; on the 2nd day of each September as set forth below, out of the redemption fund for the payrnent of the bonds issued upon the unpaid portion of the assessments made for [he acquisition, work. and improvements more fully described in the proceedings taken pursuant to Resolution of Intention. No. 2000-192 adopted by the City Council of ahe City of Petaluma.on October 16, 2000, pay to the City of Petaluma, or registered assigns, the sum of not to exceed Dollars Maturity Date; (September 21 Maturity Date .(September 2) together with interest. thereon from the date of this Bond being September 2, 2001, at the rate of percent. per annum, all as is hereinafter specified, and at the office of the Finance Director and as the paying. agent. This bond is issued by the City under for the purpose of providing means for paying for the acquisition;. work' and improvements described in said proceedings, and is secured by the moneys in such. redemption fund and by the unpaid portion of the assessments made for the payment of said acquisition, work and improvements, and, including principal and interest, is payable exclusively out. ~of said fund: The interest is payable hereon commencing on the 2nd day of March, '20Q2, and semiannually thereafter on the 2nd days, of September and March. This bond will continue to bear interest after the respective maturity dates, at the rate above. stated, provided there is not sufficient money in said redemption. fund to pay same on their due dates; subject to the terms of the resolution providing for the issuance hereof. Both principal and interest shall be paid to the .registered.. owner hereof by check or warrant mailed to the address entered in the book maintained by'the.Finance Director for the registration and transfer of this bond, except that the final. installment. due thereon will be paid only upon the surrender of this bond fo the Finance Director. The principal of this bond may be redeemed and paid :in advance of maturity by paying the principal amount thereof and accrued interest and certain costs of the City, as provided in the Exhibit A -1- .resolution of the Council of the City authorizing the i"ssuance of this bond (the "Resolution of Issuance") adopted by the City Council. This bond shall not become valid or obligatory for any purpose under the Act or the Resolution of Issuance until authenticated. and registered as to principal and interest in said registry book and in the space provided on -this bond. This bond may lire ,transferred by the registered. owner, in person or by duly authorized attorney in, writing, upon surrender of this bond for registration of such transfer;. together with a duly executed written instrument. of transfer in form approved by the Finance Director:. No transfer shall be -valid until entered in said book and endorsed upon the back of this bond. Any owner of this bond subsequent to its original owner :is hereby placed on notice of all payments of both principal of and interest on this: bond. prior to its transfer to such owners and all subsequent- owners hereof hereby .acknowledge that they have :ascertained the actual unpaid principal amount =of .this bond as of the date of transfer to them and hereby release the City from- all obligation as to all principal and interest paid by the City prior to such date. Exhibit A ' -2- IN WITNESS WHEREOF, said City has caused this bond to be signed by its Finance Director, and by 'its City Clerk,. all on the 2nd day, of September, 2001. Finance Director City Clerk City of Petaluma "'City of Petaluma Certificate of Authentication This is one of the Bonds described in the Resolution .Authorizing Issuance of Bonds,. which has been authenticated on , 2001. Finance. Director of the City of .Petaluma. of the County of Sonoma, as Transfer Agent, Registrar and Paying Agent By Exhibit A -3- REGISTRA'T'ION This bond is :registered in the naive of the regste"red owner last entered below and both the principal of and interest on thin bond are .payable only tq such Owner. NOTE: No' writing below .except by -the Finance Director. REGISTRY NAME AND ADDRESS OF ~ SIGNATURE OF DATE REGISTERED OWNER FINANCE DIRECTOR CITY OF PETALUMA 200.1 Exhibit A -4- ENDORSEIVIENT OF ADVANCES OF PAYMENT The City of Petaluma has duly paid. for the purchase hereof, on dates and in amounts, as follows: AMOUNT OF FINANCE DIRECTOR .ADVANCE DATE SIGNATURE Total Advanced: $ as of Exhibit A -5- FORM OF .RECORD OF PARTIAL REDEMPTION The record. of redemption in advance of maturity on the registered bond shall be substantially as follows: RECORD OF REDEMPTION IN' ADVANCE OF MATURITY OF BONDS REPRESENTED BY THIS -BOND DATE OF PRINCIPAL DATE AiJTHORIZED MATURITY AMOUNT REDEEMED SIGNATURE Exhibit A -6-