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HomeMy WebLinkAboutCC RES 77-113r�sourrtaN No. n-» s A RESOLUTION OF THE CiTY COUNCIL OF THE CITY OF ►ALM OfSERT. GILIFORNIA. CALLING FOR BIDS OM BONOS TO dE ISSUEO TO REPRESEN? UlfPAIO ASSESSMENTS UPON �AN06 IN All ASSESSI�NT DISTRICT IMEREAS. in actord�nce r►ith the te�s and provtsions of the "Municipal I�proveaent Ikt ot 1913", being 01v1sfon 12 of the Streets an0 HiqhMaYs Code oi the SUte of G1ltornia. the C1ty Council has lnitiated proceedings for the construttlon ot ce�taln publlt �+orks of lmprovement, together with appurtenances �nd uquisitton. Mhere necessaryr� 1n a speclal assessment district; said special �suss�ent distMct is kiwwn and designated as: ASSESSMENT OISTRICT M0. 77-1 (herein�fter �efen�d to as the 'Assess�nent District'); and. MHEREAS. tAe City Cfluncil has further detennSned that serial bonds shall De issued to flnance the costs and expenses of said improvements and proceedinqs. �nd setd bonds shall be iswed pursuaet to the terms and provisions of the "Im- prove+nent Act of 1911", being Divfsion 1 of the Streets and NighMays Code of the Sute of Glifornia. NOM. THEREFORE. BE IT RESOLYED by the City Councll of the Citr of Palm Desert. Glifornla, es follows: SECTIOM 1. That the above recitals are all true and correct. SECTION 2. That the Ctty Cou�cil does hereby catl for sealed bids on the bonds proposed to be issued, to be �eceived up to the time specified in the Notice of Sale hereefte� set forth. SECTIOM 3. That the City Council hereby selects and specifies as the date of t-Fe�6on�s representing assessments against private p�ope�ty, the date specified for that purpose in the Notice of Sale attached hereto, as ExhiDit 'A'; said date to be the 15th day of Janua�y, 1978, o� the 31st day after the recorda- tion of the assestrtient, �►hichever is later. SELTIOtI 4. That the Motice of Sale relatin9 to the sale of the assess- �nent bo s or t abore referenced Assessment District is hereby approved and adopted by the Ctty Council, and a copy of said Notice is on file 1n the Office of the City Clerk of said City. SECTION 5. That the City of Palm Desert will provide, at no expense to the bidder.— t�e unqualified leqal opinion of F. MacKen2ie Bro�, Atto��ey at law, attesting to the validity of the proceedings, and the enforceability of the bonds. SECTION 6. That F. MacKenzie Bro�m, Bond Counsel, is herebr directed to �nai1 cop es o t approved 1lotice of Sale to all persons so deterniined to be prospective purcfiasers and interested in bidding on the bonds to be issued for these praeedings; said bonds to be issued pursuant to said "Improvement Act of 1911", being Divislon 7 of the Streets and Highways Code of the State of California. P�ge 1 h. SECTtOl1 1.' TMt sald bonds shall not exceed the legal inexi�um interest r�u of �;'�a�t (8x) �nd satd bonds shall be subject to �il of the te►�s �„� �d�t a,: �na provislons nlating to bonds as set forth in tAe "Improvement ��Uj�f9�la��nd tu�tiher �s�set torthtlnethe�Resoluticn of�Intention,s esolu- tton Ib. 17-110, tor these proceedings. PASSEO. APPROYED. and ADOpTED br the City Council of the City of Palm p�, �� Glffw�nla. o� thls 13t�_day of p�tQ�r , 191�, tollainq vote. tA rit: Ay�: Brush. McPherson. Newbrander. Wilso� 8 Mullins NOES: � 118SE11? : None IIBSTAIN: � ��� � ,� - A O D. LLINS. MArOR ATTESY: .GIL .0 K CITf OF PALM OESERT. CALI RlIIA 0 Y � 4 5• t �� RESOLUTION 110. 77-113 CITY O! PAI1! DESERT NOTICZ O! SALE ON IMPROVE�N? BpNp3 1188ESSMIIi? DISTRZC? NO. �7-1 lIOTICE IS HEREB7 G2VEN that the City oi PALl�t DESERT , California, will receive sealed bfds at the Office o t e C ty C er of said City in the City Rall, up to the hour of 2:30 o'clock p M , on tiOVEMBER 29 1977 . Said bids wi e opened at sa�� an t e resu ts w t erea ter be referred to the Councfl for consideratioz� at their next regular n�eeting. Mafled bids should be addresaed as follows: City Conncil c/o City Clerk City Hall �5-275 Prickly Pear Lane Palm Desert, California 92260 Res �►ssesament District No. 77-1 BONDS. The bonds to be aold wi21 be secured by unpaid assessments er v ed upon private property within safd 1►ssessment District, and are authorized by proceedinqa taken pursuant to the 'Municipal Im- provement Act of 1913", beinq Division 12 of che Stzeets and iiigh- ways Code of the State of California, and are to be issued pursuant to the provisions of the •Impzovement Act of 1911", beinq Division 7 of said Code. Proceeds fran the sale of such bonds vill be used to pay the costs of the improvement project as authorixed by said prxeedinqa. At�OUNT. The total nw4ber a�nd aggregate of bonds to be sold can o�y be determiaed upon the expiration of the thirty (30) day cash collection payment period follrn+ing the confirn►ation and recorda- tion of the asseasiaent and durinq said period, assessments may be paid either in whole or in part. The total estimated aqgregate amount of asseasments to be confirmed is S 65,500.00 5aid bonds shall be isaued for all unpaid assessments or portions thereof Mhich amount to Fifty Dollars (S50.00) or over and shall be in the reapective an►ounta as set forth in the conf inoed and re- corded asaessment for said District. Said bonds will be dated the lSth day of JANUARY. 1978 or the 31st day after the zecordinq o� the assessment, w chever s later, and shall bear interest at a rate to be detenafned at the sale thereof; provided, hoWever, that said rate ahall be the same fox all bonds, shall not exceed the ■+aximum rate of eiqht percent (Bt) per annum. Said bonds aad the coupona thereof shall be issued substantially in the forai authori=ed for the issuance of bonds under Division 7 of the Streets and Highways Code of the State of California, and shall extend over a period endinq NINE ( 9) years from the second day of January next succeedinq t e next Septeraber first follovinq their date, and an even ar�nual proportion of the principal sum theieof shall be payable, by coupon, on tf�e aecond day of January every year after the next Septdnber fizst folloving their date, until the rrhole is paid, and the interest shall be payable semi- annually, by coupon, on the second days oi January and July, re- spectivelp, of each year iollowinq the date of the bonds. fachiblt 'A' RESOIUTIpM N0. 71-113 DID. Said bonda Mill be sold for cash only to thQ bidder whoae �', in tAe opinion ot t!w City Council, vill best serve t?�e in- terests oi ovn�rs of lat�d inelnded in the Assessaen� Disirict. lias Mill b� accepted oe a llat basis, Mith no requirpnent of pay�ent o! accro�Q int�rest an ers sha11 state separately the pre�iu�, it anY, ane the r�te of interest oifered for said bonds. llnr praaiuw otiered vill not be taken into consideration in deter- •ininq the best bid except !or the purpose of breakinq a tie be- tveen tvo bida stating the sa�ne net interest cost. /► bidder may offer • prewius, but such pre�aiu�a will be Fayable only if such preniun� is used to break a tie between that bid and so�ne other bid or Dids statinq the same net intereat cost. Each bid ahall be for Ne erttirt anaunt of the bonda to be issued at a aingle rate of interest, and any bids for less than the entire amount of aafd securities or for varyinq rates of interest will be rejected. No bid will be considered for leas than NINETY-EIGNT percent of par. In deter�ininq the lowest net effective interest cost for'the bonds �I1 caoputations includinq diacounts will be based on and computed on the amount oi assesa�aent to be confirmed. p111'MEHT. Said bonds and the intereat thereon u rooney of the United States oi America at Citr Treasurer oi said City. are payable in law- the office of the LEGN,OPINION. The unqualiiied opinion of F. Maclfenzie Brawn, Attorney, approvinq the validity of said bonds will be furnished to the succeaaful bidder upon delivery of the securities at the expense of the City. The cost of printing securfties will be paid by the City and will not be payable by the successiul bidder. SECURITY DEPOSIT. A certified or cashier's check for the sum of 2,000.00 payable to the order of said City must accom- pany every-6i� as a guaranty that the bidder, if successful, vill accept and pay for the securitfes described in the accepted bid in accordance with the terms of his bid, and said check shall remain in the posseaaion of the City Council until payment for said secu- rities has been received. The Cfty Council zeserves the riqht to reject any and all bids. The City Council also reserves the riqht to disreqard insubstantial irregularities and technical defects in Dids. xW1►RD. The bonds will be sold for cash only. All bids must be for not ess than all ot the bonds hereby offered foz sale. Each bid- der ahould state in his bid the total net interest cost in dollars and the averaqe net intereat rate detenained thereby, which shall be oonsidered informative only and not a part of the bid. For pur- poses oi this co�aputation, bidders are to assume that the maximum aggreqate amount of bonds shall be issued. The City will consider makinq an action on award on the bonds or rejectinq all bids at the next reqular meetinq of the City Council follwinq the openit�q of tht bids; however, the_ award may be made after the expiration oi the specified time if the bidder shall not 1►ave qivtn to said City Council notice in �+ritinq of ihe withdrawal oi snch proposal. DELINERY O! SECURI?IES. Delfvery of said bonds shall be made to the success er at e City Hall, or at any other place agreed nP� b'p th! City and the successful bidder. Payment shall be made in casl: or pederal R�sezve Bank iunds. �ntbtt �a� �� RESOLUTION N0. 77-113 �t EXEMpT ST11TU3. At anr tiw�e before the bonds ere tendered for �nr, �e succtsstul bidder way disaffirm and withdraw the Qropos�l if tlf� int�r��t received by private holders from bonds oi the sas� tpp� and cAaracter shall be declared to be taxable in- � m�der pr�sent federal ir�caee tax lawa, either by a rulinq of the internal R�renv� Ser�►ic� oz by a decision o! any federal court, or shall be declareQ taxaDle by the terms oi any federal inconie tax lav enacted subseqvent to the date of this notice. NO LITIGJITION CEATIPTCIITE. At the time of payment ior and delivery o sai n s e ty w 11 iurnish the successful bidder a certi- ficate that thete is no litiqation pending affectinq the validity of the bonds and certificates. 11SSESSKENT DESCRIPTION !WD AMOUNTS. For a description of the re- spective ots, pleces an parce a of land upon which the several assesaments and bonds are iasued, and for other information, re- ference is hereby esade to the assessment presently on file in the office of the City Clerk, and upon confirmation to the recorded in the oflice oi the Superintendent oi Streeta of said City. BO�ID REDEMPTION. The bands iurther shall pzovide a zedemption premiva o ve percent (51) on the unmatured principal if the bonds are redeemed or discharqed prior to their maturity. � ' .��� �- 1:� , � ' _ �� � ' /�'" � f �i/r! . �� %.- CITY CLERK ,� CITY OF PAI.M DESERT STATE OF CALIFORNIA i•f Exhiblt 'A' -3- ..--: � DONDS 11ND SECURII7 FOR BONDS AO?J1�1tI1T t �e proceeainqs for the Morks oi ia�provanent and the levy of the :pecial asa�ssinent aze pursuant to the tenas and provisions of the •Municipal Iaiprovaaent /1ct oi 1913", beinq Diviaion 12 of the Streets and Hiqhways Code oi the State of California. There has been substantial canpliance with the proceedings of Division � of the Stzeets ar�d Hiqhways Code, the "Special 1lssessment Investi- qation. Limitation and Majority Protest Act of 1931." The bonds to issue to tinance Lhe works of improvements are issued pursuant to the tes�ns �nd provisions oi the 'improvement Act of 1911", be- inq Division ? of th� Streets end Highways Code, and specifically pursuant to Chaptez 4 of Part S of aaid Division 7. SECURITY: M indfvidual aaaessment bond will be issued to represent each individual unpaid assessment within the boundaries of the assess- ment district and said aaaessment and bond constitute a direct lien and obliqation aqainst the particular parcel of benefited property described therein. Should default be made in any pay- ment upon principal or interest thereon, the owner of said bond is entitled to initiate foreclosure proceedinqs in the manner and form as authorized by law. Neither the public aqency issuinq the bonds or any officer thereof ia in any way liable for the payment of the principal oz interest on the bonds and the payment of said bonds is aolely payable from the redemption fund created under the proceedings. PRIORTTIES : The assessment bonds r+ill have priority over nny private debt such as a judqment, deed of trust or mortgaqe, reqardless of the tine impoaed. The aasessment lien and obliqation is on a parity �rith qeneral property taxes and also Mill have priority over any subsequently iasued apecial assessment fixed lien obliqaLions but aill be subordinate and inferior to any previous- ly i.�poaed special asaessment debt levied on the particular par- cel of property. 11l�OUti'P s The bonds can issue in any amount in excess of SS0.00 and will issne in the exact aisount of the assessment remaining unpaid on the particular parcel of p=operty. 1+n assessment bond will issue for each parcel of property and the bond represents the direct amottnt oi the lien obliqation on said particular parcel of pzoper- t7• INTERES? MTE: 'fhe na�ci�u� interest zate allo�rable by law for this type of secur- itr is eight pezcerft (8t) per annun. 1►ssessment bonds nwy also be sold at a discount or at a premium. DEI.INQUEIICIES s In the evEnt that there is a default oz a delinquency in the PaY- uent ot any principal or interest coupon by the propertY otimer on said bonds, the bond holder is entitled, as of January 2 or ? July 2, as the case �aay be, to is�n+ediately declare the entire , �` RESOLUTIOM N0. 77-113 �ount of the wfpaid assesswent to be due and payable or to direct or have th• lot os parcel advertised in the maaner and forfn as providsd by thf 'Iwprave�eat 11ct of 1911'. The foreclosure pro- cee�inqs car be aithtr pursuant to a•ale psocedure throuqh the Oifics o! th� aqettcY•• ?reasurer or through a jndicial foreclosure throvqh t1�e Superior Court. rhe bands and the asseasments are payable to ths Trlasurtr on each October 15, and 1�pri1 15, as the case war b� and, os� the next June 1 or December 1, if the assess- went coupon raaains nnpaid, a penaity is immediately added in�the aiwunt ot one percent (l�) of the delfnquent amount. A similar penalty ot one peYcent (1�) is then added for each succeedinq month as lonq as th� assesamenta remain unpaid. FORECLOSUREt The holder of the bond has a sole remedy in case of default or delinquency. Mhich is throuqh a foreclosure action initiated either by the Treaaurer of the local agency or by a Court action through the local Superior Court. Under both foreclosure proceed- inqs, the property ormer upon the issuance of the Certificate of Sale, has a one yeaz peziod of redemption. The property owmer also, up to the time of the sale of said propezty, has the right of either reinatatement of the delinquent bond or, af course, redemption. Upon the end of the one year period of redemption, the Certificate of Sale holder has riqht to make application to the Treasurer for a deed to the property. The Certificate of Sale rill bear interest at the rate of one percent (lt1 per e�onth on the amounts included in the Certificate of Sale up to the time that the deed is to be issued. DISCii1►RGE OP OBLIGl1TTON: The property owner, at any tfine durinq the life of the bond, haa the riqht to pay off the unpaid assessment by qenerally payinq the unpafd principal amount, toqether vith interest to the next ceupon pexiod iJanuary 2 or July 2, as the case may be). The City Council also has the discretion as to whether or not to include in the Resolution af Intention the provision for a five percent �5!) redemption premium and if the Resolution of Intentien did ao provide, then the�property owner muat also pay five percent (Sf) zedemption on the unpaid principal at the time of the discharge of the obliqation. If the payments are not made in the time as allo++ed by laM, then penaltiea are applicable to said proceedings at the rate of one percent (lt) per nwnth on the unpaid anwunt.