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HomeMy WebLinkAboutCC RES 85-098M RESOLUTION N0. 85_gg RESOLUTIOfv UF THt CITY COUNCIL UF THE CITY OF PALM DESERT, CALIFORNIA, NUTHUkIZING AVU PRUVIDING FOIt THE ISSUANCE OF BONDS PURSUANT TO THE "IMPRUVEMENT BONu ACT UF 1915" wHEREAS, the CITY COUNCIL of the CITY OF PALM OESEKT, CALIFORNIA, has heretofore undertaken 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 /�SSESSMENT DISTRICT N0. 83-1 (hereinafter referred to as the "Assessment District"); and, wHEREAS, said proceedings provided for the issuance of bonds pursuant to the "Improvement Bond Act of 1915", being Division 10 of the Streets and Highways Code of the State of California, and it is necessary to establish terms and provisions of such issuance; and, 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 Ufficia] Statement containing information including but not limited to the Assessment Uistrict 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. Modification to Resolution of Intention. The Resolution of Intention and re ated on conditions s a a be amended to indicate that bonds shall mature a maximum of FOURTEEN (14) YEARS from the 2nd day of September next succeeding twelve (12) months from their date. SECTION 3. Un aid Assessments. The Treasurer shall, immediately upon the compietion o the 30-day cas 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. SECTIUN 4. Registered Bonds. Said bonds shall be issuable only as fully registered bonds in the denomination of $5,000, 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 5. Date of 8onds. Al1 of said bonds shall be dated the 2nd day of October, 985, and interest shall accrue from that date. SECTION 6. Maturit and Denomination. The bonds shall be issued in serial form with annua maturities on ep ember 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 rnaturity, and the Treasurer or designated Registrar shall, immediately upon completion of the cash collection period, prescribe the denomina- tions of the bonds, which shall be in convenient amounts, not necessarily equal, and shall further provide for their issuance and delivery. SECTION 7. Interest. Each bond shall be of a single maturity and shall bear inte- rest 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 authenticated 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 authen- ticated and registered prior to the first interest payment date, in which case it shall bear interest from its date, until payment of its principal sum has been discharged. Interest shal� be payable semi- annually on the 2nd day of March and September in each year; providing, however, that pursuant to Streets and Highways Code Section 8650, the first installment of interest shall be to March 2, 1986, and thereafter the interest installments sha11 be for semi-annual interest. Pursuant to the authorization of Section 10204.2, a sum equal to the interest on the bonds from the date of the bonds to said Sept. 2, 1986, shall be capitalized and included within the incidental expenses of the proceed- ings and paid from the proceeds of the bond issue directly into the Redemption Fund for the bonds to make the payment for said March 2, 1986, interest payment. SECTION 8. Place of Payment. The principal and interest on the bonds shall be pay- able in lawful 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 ��ay have been filed with the Treasurer for that purpose, as of the 15th day immediately preceding said interest payment date. SECTION 9. Redemption. This bond, or a portion thereof if issued in a denomination greater t 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 equa] 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 r�gistered owner thereof. SEC7ION 10. Transfer of Re istered Bonds. Any fully registered bond may, in accor- ance 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 11. Exchan e of Re istered Bonds. Fully registered bonds may be exchanged at the office of the 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 12. Books of Registration. There shall be kept by the Treasurer sufficient b-ooks for the registration and transfer of the bonds and, upon presenta- tion for such purpose, the Treasurer shall, under such reasonable regu- 1 at i ons as it may prescr i be, reg i ster or transfer or cause to be reg i s- tered or transferred, on said register, bonds as hereinbefore provided. SECTION 13. Execution of Bonds. The bonds shall be executed in facsimile by the reasurer an y he City Clerk, and the corporate seal shall be imprinted in facsimile on the bonds. The bonds shall then be delivered to the transfer agent and registrar, for authen�ication 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 nevertneless 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 14. Authentication. Only such of the bonds as shall bear thereon a certifi- cate of authentication substantially in the form below, manually exe- cuted by the transfer agent and registrar, shall be valid or obligatory for any purpose or entitled to the benefits of this Resolution, and such certificate 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 �ANK OF AMERICA, NT & SA as Transfer Agent and Registrar �y: SECTIUN 15. Negotiability, Registration and Transfer of Bonds. The transfer of any bond may be registered only upon such books of registration upon surren- der thereof to the transfer agent and registrar, together with an assignment duly executed by the owner or his attorney or legal represen- tative, 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 denomi- nations author�zed by this Resolution, and in an aggregate principa) a�nount 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 authen- ticate 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 trans- fer of bonds sufficient to reimburse it for any tax or other governmen- tal charge required to be paid with respect to such exchange or regis- tration 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 September 2nd. SECTION 16. Ownershi of Bonds. The person in whose name any bond shall be regis- ere s a e eemed and regarded as the absolute owner thereof for all purposes, and payment of or on account of the principal and redemption premium, if any, of any such bond, and the interest on any such bond, sha]1 be made on]y 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, includ- ing the redemption premium, if any, and interest thereon, to the extent of the sum or sums so paid. SECTIUN 17. Mutilated Destro ed Stolen or Lost Bonds. In case any bond secured ereby sha become muti ated or e destroyed, 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 reasonable expenses and charges in connection therewith, and, in the case of a bond destroyed, stolen or lost, his filing with the legisla- tive 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 18. Cancellation of Bonds. All bonds paid or redeemed, either at or before maturity, shall 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. All 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 cer- tificate in its permanent files for the issue. SECTION 19. Reserve Fund. Pursuant to Part 16 of Uivision 10 of the California Streets and Highways Code, as amended, there shall be created a special reserve fund for the bonds to be designated by the name of the Assess- ment District and specified as the special "Reserve Fund". The Reserve Fund shall be funded as follows: The initia] 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 representing 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 promul- gated and proposed thereunder. For these proceedings, it is hereby determined and declared that the special Reserve Fund shali be funded in the following manner: FIVE PERCENT (5%) UF THE PAR AMOUNT OF THE BOND ISSUE SHALL BE SET ASIDE AS THE SPECIAL RESERVE. Nbnies 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 20. Im rovement Fund. The proceeds from the sale of the bonds, after aeposit o 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 pro- ceedings. 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 Nighways Code, and there- after shall be utilized or distributed as determined by the legislative body. SECTION 21. Redem tion Fund. Principal of and interest on said bonds shall be paid out o the edemption Fund created pursuant to Section 8671 of the California Streets and Highways Code. Accrued interest paid by the purchaser of ttie 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 22. Covenant to Foreclose. The legislative body hereby covenants that upon aefault of any assessment payment due, it will cause Superior Court foreclosure 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 23. Order to Print and Authenticate Bonds. The Treasurer is hereby instruc- ted to cause bonds, as set forth above, 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 24. Arbitrage Certificate. On the basis of the facts, estimates and circum- stances now in ex stence 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 will be used in a manner that would cause such obligations to be arbi- trage bonds. Such certification shall be delivered to the purchaser together with the bonds. SECTION 25. Desi nation of Transfer A ent, Pa in A ent and Re istrar. The BANK OF ER A NA IONAL U AND SAUIN S �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 lqth day of ,��temher , 1985, by the following vote: AYES KELLY, WILSON, and SNYDER NOES BENSON NBSENT JACKSON /aBSTAIN NONE STATt UF CALIFORNiN / ^ �' s � �.� � MA OR CITY OF PALM DESERT STATE OF CALIFORNIA