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HomeMy WebLinkAboutCC RES 85-106RESOLUTION N0. 85-106 RESOLUTION OF THE CITY COUNCIL UF THE CITY OF PALM DESERT, CALIFORNIA, AUTHORIZING AN� PkUVIDINb FOK THE ISSUANCE OF BONDS PURSUANT TO THE "IMPROVEMENT BONU ACT OF 1915" wHEREAS, the CITY COUNCIL of the CITY OF PALM DESERT, CALIFORNIA, has heretofore under- taken proceedings pursuant to the "Municipal Improvement Act of 1913", being Division 12 of the Streets and Highways Code of the State of California, and has confirmed assessments upon lands within a special assessment district described in a Resolution of Intention previously adopted for said improvements, said special assessment District known and designated as NORTH SPHERE ASSESSMENT DISTRICT N0. 84-1 (hereinafter referred to as the "Assessment District"); and, WHEREAS, said ment Bond Act of Cal iforni a, and, proceedings provided for the issuance of bonds pursuant to the "Improve- of 1915", being Division 10 of the Streets and Highways Code of the State and it is necessary to establish terms and provisions of such issuance; WHEREAS, the final unpaid balance to assessment, as well as the denomination and amounts to mature each year, cannot be determined until following the 30-day cash collection period after the recordation of said assessment; and, wHEREAS, there has now been presented for consideration by this legislative body an Ufficial Statement containing information including but not limited to the Assessment District and the type of bonds, including terms and conditions thereof. NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION l. That the above recitals are all true and correct. SECTION 2. Unpaid Assessments. The Treasurer shall, immediately upon the completion of the 30-day cash collection period, determine the assessments which are unpaid and the aggregate amount thereof as authorized by Section 8621 of the Streets and Highways Code of the State of California. SECTION 3. Re istered Bonds. Said bonds shall be issuable only as fully registered nds in the denomination of $5,OU0, or any integral multiple thereof, except for one bond maturing in the first year of maturity, which shall include the amount by which the total issue exceeds the maximum integral multiple of $5,000 contained therein. SECTION 4. Date of Bonds. All of said bonds shall be dated the 2nd day of November, , an tnterest shall accrue from that date. SECTION 5. Maturit and Denomination. The bonds shall be issued in serial form with annua maturities on eptember 2nd of every year succeeding twelve (12) months after their date, until the whole is paid. The amount maturing each year shall be such as to result in approximately equal annual debt service during the term of the issue as reflected by the interest rate and/or rates and principal amounts maturing in the respective years of maturity, and the Treasurer or designated Registrar shall, immediately upon completion of the cash collection period, prescribe the denominations of the bonds, which shall be in convenient amounts, not necessarily equal, and shall further provide for their issuance and delivery. SECTION 6. Interest. Each bond shall be of a single maturity and shall bear interest at the rate as set forth in the accepted bid proposal for said bonds from the interest payment date next preceding the date on which it is authenti- cated and registered, unless said bond is authenticated and registered as of an interest payment date, in which case it shall bear interest from said interest payment date, or unless said bond is authenticated and registered prior to the first interest payment date, in which case it shall bear inte- rest from its date, until payment of its principal sum has been discharged, SECTION 7. Place of Pa ent. The principal and interest on the bonds shall be pay- e in aw u money of the United States of America at the office of the Treasurer, or such paying agent as may be designated by Resolution of the legislative body. Principal and interest on said bonds shall be paid by check or draft to the registered owner thereof at his address as it appears on the books of registration, or at such address as may have been filed with the Treasurer for that purpose, as of the 15th day immediately preceding said interest payment date, SECTION 8. Redem tion. This bond, or a portion thereof if issued in a denomination grea er an $5,000, shall be subject to redemption and payment in advance of maturity in increments of $5,000 as provided in Section 8768 of the Streets and Highways Code, on the 2nd day of March or September in any year, by giving the notice provided in said law to the registered owner thereof at his address as it appears on the books of registration and by paying principal of and accrued interest on such redeemed amount, together with a premium equal to five percent (5%) of the redeemed prin- cipal amount. If less than the entire bond is redeemed, the unredeemed portion shall be reissued to the registered owner thereof. SECTION 9. Transfer of Registered Bonds. Any fully registered bond may, in accor- dance with its terms, be transferred upon the books of registration required to be kept pursuant to the provisions of Section 11 by the owner in whose name it is registered, or by his duly authorized attorney or legal representative, upon surrender of such fully registered bond for registration of such transfer, accompanied by delivery of a written instrument or transfer in a form approved by the Treasurer and by the owner of said bonds, duly executed. The Treasurer shall require the payment by the bondholder requesting such transfer of any tax or other governmental charge required to be paid with respect to such transfer and such charges as provided for in the system of registration for registered debt obligations. No transfer of fully registered bonds shall be required to be made during the fifteen (15) days next preceding each interest payment date. SECTION 10. Exchan e of Re istered Bonds. Fully registered bonds may be exchanged a e o ice o t e reasurer, or designated transfer agent/registrar, for a like aggregate principal amount of bonds of the same series, interest rate and maturity, subject to the terms and conditions provided in the system of registration for registered debt obligations, including the payment of certain charges, if any, upon surrender and cancellation of this bond. Upon such transfer and exchange, 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. SECTION 11. Books of Re istration. There shall be kept by the Treasurer sufficient ocs for t e registration and transfer of the bonds and, upon presenta- tion for such purpose, the Treasurer shall, under such reasonable regu- lations as it may prescribe, register or transfer or cause to be regis- tered or transferred, on said register, bonds as hereinbefore provided. SECTION 12. Execution of Bonds. The bonds shall be executed in facsimile by the reasurer an y he City Clerk, and the corporate seal shal•1 be imprinted in facsimile on the bonds. The bonds shall then be delivered to the transfer agent and registrar, for authentication and registra- tion. In case an officer who shall have signed or attested to any of the bonds by facsimile or otherwise shall cease to be such officer before the authentication, delivery and issuance of the bonds, such bonds nevertheless may be authenticated, delivered and issued, and upon such authentication, delivery and issue, shall be as binding as though those who signed and attested the same had remained in office. SECTION 13. Authentication. Only such of the bonds as shall bear thereon a certifi- ca e o au entication substantially in the form below, manually executed by the transfer agent and registrar, shall be valid or obligatory for any purpose or entitled to the benefits of this Resolution, and such certifi- cate of the transfer agent and registrar shall be conclusive evidence that the bonds so authenticated have been duly executed, authenticated and delivered hereunder, and are entitled to the benefits of this Resolution. FORM OF CERTIFICATE OF AUTHENTICATION AND REGISTRATION This bond has been authenticated and registered on BANK OF AMERICA, NT & SA as Transfer Agent and Registrar gy: SECTION 14. Ne otiabilit Re istration and Transfer of Bonds. The transfer of any n may e registered on y upon suc oo s o reg�stration upon surrender thereof to the transfer agent and registrar, together with an assignment duly executed by the owner or his attorney or legal representative, in satisfactory form. Upon any such registration of transfer, a new bond or bonds shall be authenticated and delivered in exchange for such bond, in the name of the transferee, of any denomination or denominations autho- rized by this Resolution, and in an aggregate principal amount equal to the principal amount of such bond or principal amount of such bond or bonds so surrendered. In all cases in which bonds shall be exchanged or transferred, the transfer agent and registrar shall authenticate at the earliest practical time, bonds in accordance with the provisions of this Resolution. All bonds surrendered in such exchange or registration transfer shall forthwith be cancelled. The legislative body may make a charge for every such exchange or registration of transfer of bonds sufficient to reimburse it for any tax or other governmental charge required to be paid with respect to such exchange or registration of transfer. The transfer agent and registrar shall not be required to make such exchange or registration of transfer of bonds during the fifteen (15) days immediately preceding any March 2nd or Septgnber 2nd. SECTION 15. Ownershi of Bonds. The person in whose name any bond shall be registered s a e eemed and regarded as the absolute owner thereof for all purposes, and payment of or on account of the principal and red enption premium, if any, of any such bond, and the interest on any such bond, shall be made only to or upon the order of the registered owner thereof or his legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such bond, including the redemption premium, if any, and interest thereon, to the extent of the sum or sums so paid. SECTION 16. Mutilated Destro ed Stolen or Lost Bonds. In case any bond secured ere y s a ecome mut� a e or e es royed, stolen or lost, the legislative body shall cause to be executed and authenticated a new bond of like date and tenor in exchange and substitution for and upon the cancellation of such mutilated bond or in lieu of and in substitution for such bond destroyed, stolen or lost, upon the owner's paying the reason- able expenses and charges in connection therewith, and, in the case of a bond destroyed, stolen or lost, his filing with the legislative body of evidence satisfactory to it and to the Treasurer thereof that such bond was destroyed, stolen or lost, and of his ownership thereof, and furnishing the legislative body with indemnity satisfactory to it. SECTION 17. Cancellation of Bonds. Al1 bonds paid or redeemed, either at or before maturity, sha be cancelled upon the payment or redemption of such bonds, and shall be delivered to the transfer agent and registrar when such payment or redemption is made. Al1 bonds cancelled under any of the provisions of this Resolution shall be destroyed by the transfer agent and registrar, which shall execute a certificate in duplicate describing the bonds so destroyed, and shall retain said executed certificate in its permanent files for the issue. SECTION 18. Reserve Fund. Pursuant to Part 16 of Division 10 of the California reets an ighways Code, as amended, there shall be created a special reserve fund for the bonds to be designated by the name of the Assessment Oistrict and specified as the special "Reserve Fund". The Reserve Fund shall be funded as follows: The initial designated amount shall be deposited in the Reserve Fund out of the bond proceeds. Periodically, at such times as may be determined by the legislative body, monies represent- ing interest on funds on deposit in the Reserve Fund shall be transferred to the Reserve Fund, but only to the extent permitted herein and to the extent that the amount of interest shall not result in the bonds becoming "arbitrage bonds" as defined in Section 103(c) of the Internal Revenue Code of 1954, as amended, and the regulations promulgated and proposed thereunder. For these proceedings, it is hereby determined and declared that the special Reserve Fund shall be funded in the following manner: EIGHT PERCENT (8%) OF THE PAR AMOUNT OF THE BOND ISSUE. Monies in the Reserve Fund shall be applied as follows: A. Amounts in said Reserve Fund shall be transferred to the Redemption Fund for the bonds if, as a result of delinquencies in the payment of assessments, there are insufficient monies in said Redemption Fund to pay principal of and interest on the bonds. Amounts so transferred shall be repaid to the Reserve Fund from proceeds from the redemption or foreclosure of property with respect to which an assessment is unpaid and from payments of the delinquent assessments; �. Interest earned on monies in the Reserve Fund shall accrue to the Reserve Fund only to the extant that the amount of interest credited thereto shall not result in the bonds becoming "arbitrage bonds" as defined in Section 103(c) of the Internal Revenue Code of 1954, as amended, and the regulations promulgated thereunder; C. Whenever monies in the Reserve Fund are sufficient to retire all of the bonds outstanding, plus accrued interest thereon, such money shall be transferred to the Redemption Fund for the bonds and collection of the remaining unpaid assessments shall cease. SECTION 19. Improvement Fund. The proceeds from the sale of the bonds, after deposit of required amounts in the Reserve Fund and the Redemption Fund, shall be placed in the fund hereby created, pursuant to Sections 10602 and 10424 of the California Streets and Highways Code, as amended, which shall be called the "Improvement Fund", and the monies in said Fund shall be used only for the purposes authorized in said assessment proceedings. Any surplus in the Improvement Fund after completion of the improvements shall remain in the Improvement Fund for a period not less than two (2) years from the receipt of bond proceeds as provided in Section 10427.1 of the California Streets and Highways Code, and thereafter shall be utilized or distributed as determined by the legislative body. SECTION 20. Redem tion Fund. Principal of and interest on said bonds shall be paid ou o t e edemption Fund created pursuant to Section 8671 of the California Streets and Highways Code. Accrued interest paid by the purchaser of the bonds, if any, shall be deposited in the Redemption Fund. In all respects not recited herein, said bonds shall be governed by the provisions of the "Improvement Bond Act of 1915", Division 10 of the California Streets and Highways Code, as amended. SECTION 21. Covenant to Foreclose. The legislative bo�y hereby covenants that upon e au t o any assessment payment due, it will cause Superior Court fore- closure proceedings to be brought within one hundred fifty (150) days of such default and thereafter diligently prosecute to completion such proceedings. Such foreclosure proceedings may be deferred if funds are advanced to the special Reserve Fund to keep said Fund continually at the level set forth in the Section entitled "Reserve Fund" set forth hereinabove. SECTION 22. Order to Print and Authenticate Bonds. The Treasurer is hereby instruc- e to cause bon s, as set ort a ove, to be printed, and to proceed to cause said bonds to be authenticated and delivered to an authorized representative of the purchaser, upon payment of the purchase price as set forth in the accepted proposal for the sale of bonds. SECTION 23. Arbitrage Certificate. On the basis of the facts, estimates and circum- stances now in existence and in existence on the date of issue of the bonds, as determined by the Treasurer, said Treasurer is hereby autho- rized to certify that it is not expected that the proceeds of the issue wi 11 be used in a manner that woul d cause such obl igations to be arbi- trage bonds. Such certification shall be delivered to the purchaser tagether with the bonds. SECTION 24. Desi nation of Transfer A ent Pa in A ent and Re istrar. The BANK OF �s ereby designated transfer agent, paying agent and registrar with respect to these proceedings and the bonds to be issued. PASSED, APPROVED and ADOPTED by the City Council of the City of Palm Desert, California, on this 24th day of october , 1985, by the following vote: AYES NOES BE:VSON, JACKSON, KELLY, [dILSON AND S?�TI'DER NONE ABSENT :�oVE ABSTAIN �o� ,, ^ A TEST: � ' � ; �� , �.% i �~/ y` /� C� i % � Y L CITY OF PALM DESERT STATE OF CALIFORNIA MAYOR � CITY OF PALM DESERT STATE OF CALIFURNIA