HomeMy WebLinkAboutResolution 91-145 06/03/1991~ZeSOIUtI®1"l Nom. 91-145 N.C.S.
of the City of Petaluma, California
RESOLUTION AUTHORIZING ISSUANCE OF BONDS
ASSESSMENT DISTRICT NO. 21
CORONA-ELY ASSESSMENT DISTRICT
The City Council of the City of Petaluma resolves:
Section 1. RECITALS. On January 16, 1990, the City Council
of the City of Petaluma adopted its resolution of intention, as
later amended, to order improvements in Assessment District No. 21,
Corona-Ely Assessment District, City of Petaluma, County of Sonoma,
State of 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 $16,122,380.00. 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 January 2, 1991.
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 and Chapter 4.08 of the
Petaluma Municipal Code to represent unpaid assessments in the
amount of $16,120,000.00. Each bond shall be designated, 11Limited
Obligation Improvement Bond, City of Petaluma, Assessment District
No. 21, Corona-Ely Assessment District, Series No. 1991-A." Bonds
shall be dated July 2, 1991 and issued in denominations of $5000 or
integral multiples thereof. Bonds shall mature in principal
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His. no........9.1.-.1.4.5..... N.cs. ~~
amounts as set forth in the table attached as Exhibit A and
interest rates on the bonds shall be as set forth in the final
official statement.
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 National
Trust and Savings Association.
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 registrar 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 REVENUE FUND. For
administering the proceeds of the sale of bonds and payment of
interest and principal on the bonds, there is hereby established a
special revenue fund called "District #21 - Corona-Ely" which will
consist of five accounts to be known as the improvement account,
the redemption account, the special reserve account, the investment
earnings account and the arbitrage rebate account, respectively,
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for Assessment District No. 21, Corona-Ely Assessment District,
City of Petaluma, County of Sonoma,. State of California.
Section 5.1. IMPROVEMENT ACCOUNT. Except as provided in
Section 5.3, proceeds of sale of the bonds, together with all
amounts paid on the assessments before bond issuance, shall be
deposited in the improvement account to be maintained by the City
Treasurer. Disbursements from the improvement account 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 ACCOUNT. The redemption account
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
account, which shall be a trust fund for the benefit of the
bondholders. Payment of the bonds at .maturity, or at redemption
before maturity, and all interest on the bonds shall be made from
the redemption account. The City shall deposit into the redemption
account, from the proceeds of the sale of the bonds, an amount
equal to interest for 14 months, which shall be applied to payment
of the first payable interest on the bonds until fully expended.
Section 5.3. SPECIAL RESERVE ACCOUNT. There shall be
deposited into the special reserve account an amount equal to one-
half maximum annual debt service from the proceeds of the sale of
bonds. That amount, less any amounts transferred to the redemption
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account pursuant to Section 8884 of the Streets and Highways Code,
shall constitute the "Reserve Requirement" for the bonds. The
special reserve account shall be maintained by the City Treasurer.
A. During the term of the bonds, the amount in the special
reserve account shall be available for transfer into the redemption
account in accordance with Section 8808 of the .Streets and Highways
Code. The amount so advanced shall be reimbursed to the special
reserve account from the proceeds of redemption or sale of the
parcel for which payment of delinquent assessment installments was
made from the special reserve account.
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 account as the original
amount of the prepaid assessment bears to the total amount of
unpaid assessments originally securing the Bonds. This reduction
in the amount of principal prepaid shall be balanced by a transfer
from the special reserve account to the redemption account in the
same amount.
C. The amount maintained in the special reserve account will
never exceed the Reserve Requirement. Proceeds of investment of
the special reserve account shall be deposited in the investment
earnings account.
D. When the amount in the special reserve account equals or
exceeds the amount required to retire the remaining unmatured bonds
(whether by advance retirement or otherwise), the amount of the
special reserve account shall be transferred to the redemption
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account, and the remaining installments of principal and interest
not yet due from assessed property owners shall be cancelled
without payment.
Section 5.4. INVESTMENT EARNINGS ACCOUNT. Proceeds of the
investment of amounts in the improvement account and the .special
.reserve account will be deposited in the investment earnings
account. As of September 2 of each year during the term of the
bonds, 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 arbitrage rebate account, and the
balance will be transferred as follows:
(a) To the extent that the balance in the special reserve
account is less than the Reserve Requirement, a transfer will be
made from the investment earnings account to the special reserve
account.
(b) The remaining balance in the investment earnings account,
if any, will be transferred to the improvement account until the
improvement is completed and the improvement account is closed;
thereafter the balance in the investment earnings account will be
transferred to the redemption account to be used, in the discretion
of the City Treasurer, as a credit upon the annual installments of
assessment or for the advance retirement of bonds.
The City Treasurer is authorized to retain independent
attorneys, accountants and other consultants to assist in complying
with Federal requirements.
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Section 5.5. ARBITRAGE REBATE ACCOUNT. Amounts in the
arbitrage rebate account shall be invested in the 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 the Bank of America
National Trust and Savings Association, 55 Hawthorne Street, 8th
Floor, San Francisco, California 94105. 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
payment.
Section 7. ADVANCE RETIREMENT OF BONDS. Any Bond or any
portion thereof 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 30
days' notice by registered or certified mail or by personal service
to the registered owner thereof at such owner's address as it
appears on the registration books of the Bank and by paying
principal and accrued. interest at the following redemption prices:
101.0% if redeemed on or before September 2, 1992;
100.5% if redeemed on March 2, 1993 and September 2, 1993;
and 100.0% if redeemed after September 2, 1993.
Section 8. REREGISTRATION. Any bond may be registered to a
new owner by completing the assignment certificate on the reverse
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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.
Section 9. 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 9.1. FORECLOSURE OF LIENS. Not later than October 1
in any year, the City shall file an action in the Superior Court to
foreclose the lien of each delinquent assessment if the sum of
uncured assessment delinquencies for the preceding fiscal year
exceeds five percent (5%) of the assessment installments posted to
the tax roll for that fiscal year, and if the amount of the special
reserve account is less than the Reserve Requirement.
Section 9.2. 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 required to
be rebated on account of arbitrage in accordance with the
provisions of that Code and those regulations.
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Section 9.3. MAINTENANCE OF TAX EXEMPTION. The City will take
all reasonable actions required to maintain the status of interest
on the bonds as excludable from gross income for federal income tax
purposes and as exempt from the State of California personal income
taxes.
Section 9.4. ARBITRAGE REBATE ELECTIONS. This City Council
elects to pay the penalty, if any, established by Section 148 (f)
(4) (B) (iv) (V) of the Internal Revenue Code in lieu of rebating
arbitrage earnings on the improvement account. This City Council
declines to make the election permitted by Section 148. (f) (4) (B)
(iv) (VI) and, hence, earnings on the special reserve account shall
be considered "net proceeds" under Section 148 (f) (4) (B) (iv)
(II) .
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 Approved as to
Council of the City of Petaluma at a (Regular) (Adjourned) (Special meeting form,~.~7
on the .....-._.3rd_...... day of ..--••----------June....---•---• .................... 19.9., by the /~
following vote: .................
City Attorney
AYES: Read, D~~~s, Woolsey, Nelson, Vice Mayor Cavanagh, Mayor Hilligoss
NOES: None
ABSENT: SOb 1
ATTEST : ........ ...... .......... ......... ...............•--.....-.........---.....-.....----..... .. --.....
City Clerk Mayor
(bunch File----•--•----------------°--•--..-..
cA .n-~5 Res. Na...........9.1._.1.4.5.. N.c.s.
EXHIBIT A
ASSESSMENT DISTRICT NO. 21
CORONA-ELY ASSESSMENT DISTRICT
MATURITY SCHEDULE
(Interest Rates shall be as set forth
in the Final Official Statement)
September 2 Principal Amount
1992 $ 0
1993 0
1994 0
1995 465,000
1996 505,000
1997 550,000
1998 595,000
1999 640,000
2000 695,000
2001 750,000
2002 815,000
2003 880,000
2004 955,000
2005 1,035,000
2006 1,120,000
2007 1,210,000
2008 1,310,000
2009 1,420,000
20.10 1,535,000
2011 1,640,000
$16,.120,000
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EXHIBIT B
United States of America
State of California
County of Sonoma
REGISTERED REGISTERED
Number $
LIMITED OBLIGATION IMPROVEMENT BOND
CITY OF PETALUMA
ASSESSMENT DISTRICT NO. 21
CORONA-ELY ASSESSMENT DISTRICT
SERIES NO. 1991-A
INTEREST RATE MATURITY DATE BOND DATE CUSIP NUMBER
REGISTERED OWNER:
PRINCIPAL SUM: DOLLARS
Under and by virtue of the Improvement Bond Act of 1915,
Division 10 (commencing with Section 8500), of the Streets and
Highways Code, (the "Act"), and Chapter 4.08 of the Petaluma
Municipal Code, the City of Petaluma, County of Sonoma, State of
California,. (the "City"), will., out of the redemption account 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. 90-25, adopted by the City Council of the City of
Petaluma on the 16th day of January, 1990, 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
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, 1992, 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, 1992. 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, or its successor, as Paying Agent,
Registrar and Transfer Agent, in San Francisco, California (the
"Bank"), and the interest hereon is payable by check or draft
mailed on each interest payment date 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.
E IT°T' B-1 ~~~. s 1 -1 ~ s rr c s
REFERENCE IS 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 account 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 City Treasurer of said City
and by its Clerk, and has caused its corporate seal to be
reproduced in facsimile hereon all as of the 2nd day of July, 1991.
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, registrar and transfer agent
By
Authorized Officer
~ rig B-2 ~~~. 9~- ~ 4 S N C s
(REVERSE OF BOND)
LIMITED OBLIGATION IMPROVEMENT BOND
CITY OF PETALUMA
ASSESSMENT DISTRICT NO. 21
CORONA-ELY ASSESSMENT DISTRICT
Series No. 1991-A
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,
Chapter 4.08 of the Petaluma Municipal Code, 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 account 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 account.
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 will not obligate itself to advance available
funds from the City treasury to cure any deficiency which may occur
in the bond redemption account. A determination not to obligate
itself shall not prevent the City from, in its sole discretion, so
advancing funds.
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 30 days' notice by registered or certified mail.
or by personal service to the registered owner hereof at such
B'3 REQ. 9 1- 14 5 N C S
~TI~
owner's address as it appears on the registration books of the Bank
and by paying principal and accrued interest at the following
redemption prices:
101.0% if redeemed on or before September 2, 1992;
100.5% if redeemed on March 2, 1993 and September 2, 1993;
and 100.00 if redeemed after September 2, 1993.
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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EXFIi~IT B