Loading...
HomeMy WebLinkAboutReso 044-92 DBX AD91-1 Bonds RESOLUTION NO. 44-92 RESOLUTION AUTHORIZING ISSUANCE OF BONDS DUBLIN BOULEVARD EXTENSION ASSESSMENT DISTRICT 91-1 The City Council of the City of Dublin resolves: Section 1. RECITALS. On December 23, 1991, the City Council of the City of Dublin adopted its resolution of intention to order improvements in Dublin Boulevard Extension Assessment District 91- 1, City of Dublin, Alameda county, 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 $2,350,000.00. These assessments were recorded in the office of the County Recorder of the County of Alameda, 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 April 6, 1992. Section 2. ISSUANCE OF BONDS. The City Council hereby authorizesthe issuance of improvement bonds under the provisions of the Improvement Bond Act of 1915 to represent unpaid assessments in the amount of $2,350,000.00. Each bond shall be designated, "Limited Obligation Improvement Bond, City. of Dublin, Dublin Boulevard Extension Assessment District 91-1, Series No. 91-1." Bonds shall bedated approximately the date of delivery and issued in denominations of $1000 or integral multiples thereof. Bonds may be issued as serial bonds, term bonds, or any combination thereof. Bonds shall mature in the principal. amounts set forth in the table attached as Exhibit A. The bond date and interest rates on the bonds shall be as set forth in the bond purchase agreement. ORIGINAL Section 2.1. TERM BONDS; MANDATORY ADVANCE REDEMPTION. Bonds maturing on September 2 in the years 1993 to 2007, inclusive, shall be issued as serial bonds. Bonds maturing on September 2, 2012, shall be issued as term bonds. The term bonds are subject to mandatory advance redemption on September 2, by lot, at a redemption price equal to the principal amount to be redeemed, together with accrued interest to the date of redemption, without premium, in accordance with the following schedule and in the Year Amount to Be Redeemed 2008 $165,000 2009 180,000 2010 195,000 2011 210,000 2012 230,000 Assessment installments sufficient to make these mandatory advance redemptions shall be collected by the City, deposited in the Redemption Agency Fund and used by the Bank for the mandatory advance redemption or payment of the term bonds. All other advance redemptions of term bonds or serial bonds shall be as provided in the Improvement Bond Act of 1915. Section 3. APPOINTMENT OF PAYING AGENT, FISCAL AGENT, REGISTRAR AND TRANSFER AGENT. The City CoUncil hereby appoints the Bank of America National Trust and Savings Bank (the "Bank") as paying agent, fiscal agent, registrar and transfer agent for the bonds in accordance with an agreement between the City of Dublin and the Bank. following amounts: 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 Bank. The Bank 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 FUNDS. For administering the proceeds of the sale ofbonds and payment of interest and principal on the bonds, there are hereby established three funds to be known as the capital projects fund, the redemption agency fund and the special reserve fund, respectively, for Dublin Boulevard Extension Assessment District 91-1. Section 5.1. CAPITAL PROJECTS FUND. 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 capital projects fund to be maintained by the City Treasurer. Disbursements from the capital projects fund 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 3 budget are subject to modification by the City Council from time to time as prescribed by the Act. Section 5.2. REDEMPTION AGENCY FUND. The redemption agency fund 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 agency fund, which shall be an agency 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 agency fund. The City Treasurer shall deposit into the redemption agency fund, from the proceeds of the sale of the bonds, the amount of $117,500.00, which shall be applied to payment of the first payable interest on the bonds until fully expended. Section 5.3. SPECIAL RESERVE FUND. There shall be deposited into the special reserve fund the amount of $117,500.00 (the "Initial Reserve") from the proceeds of the sale of bonds. The special reserve fund shall be maintained by the Bank, which shall invest funds at the written direction of the City received at least two (2) business days in advance and in accordance with the City statement of investment policy to be provided to the Bank by the City Treasurer. Earnings on these investments shall accrue to the special reserve fund until it equals $164,500.00 (less any amounts transferred to the redemption agency fund pursuant to paragraph B hereinafter) (the "Reserve Requirement"). Amounts in excess of the Reserve Requirement shall be transferred to the redemption agency fund and shall be used for the advance retirement of bonds or as a credit on the next installment of assessment payments, at the discretion of the City Treasurer. A. During the term of the. bonds, the amount in the special reserve fund shall be available for transfer into the redemption agency fund in accordance with Section 8883 and 8808 of the Streets and Highways Code. The amount so advanced shall be reimbursed to the special reserve fund from the proceeds of redemption or sale of the parcel for which payment o~ delinquent assessment installments was made from the special reserve fund. 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 originalamount of the special reserve fund 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 fund to the redemption agency fund in the same amount in accordance with the instructions of the City. C. The amount maintained in the special reserve fund will never exceed the Reserve Requirement. D. When the amount in the special reserve fund equals or exceeds the amount required to retire the remaining unmatured bonds (whether by advance retirement or otherwise), the amount of the special reserve fund shall be transferred to the redemption agency fund, and the remaining installments of principal and interest not 5 yet due from assessed property owners shall be cancelled without payment. Section 5.4 RETURN OF UNCLAIMED FUNDS. Other provisions of this resolution to the contrary notwithstanding, the Bank shall return to the City any funds held by it.hereunder not later than thirty (30) days before those funds would escheat to the State of California under any law now or hereafter enacted. 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, Floor 6, San Francisco, California 94105. Principal and interest shall be paid by check and mailed on the interest payment date to the registered owner of each bond at the owner's address appearing on the register maintained bythe Bank as of the 15th day preceding the date of payment. Section 7. ADVANCE RETIREMENT OF BONDS. Any Bond or portion thereof in the amount of $1,000 or any integral multiple .thereof may be redeemed and paid in advance of maturity on 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 bond owner at the owner's address appearing on the registration books of the Bank and by paying principal and accrued interest together with a premium equal to three percentum of the principal. Section 8. REREGISTRATION. Any bond may be registered to a new owner by completing the assignment certificate on the reverse 6 of the bond and delivering the bond to the Bank. Upon reregistration, any bond may be replaced by one or more bonds of the same maturity and aggregate amount in denominations of $1000 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 fund 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. 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. 7 Section 9.4. DESIGNATION AS OUALIFIED TAX-EXEMPT OBLIGATIONS. The City, together'with its subordinate entities, has issued less than $5 million of governmental purpose bonds in calendar year 1992, and has no intention at this time of issuing more than $5 million of governmental purpose bonds in 1992, nor does the City believe that there is any reasonable prospect that it will do so. The City hereby designates the Bonds "Qualified Tax-Exempt Obligations" for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986. The City Council also hereby states that this issue qualifies.. for relief from the rebate requirements of the Internal Revenue Code under Section 148(f)(4)(C) of that Code. PASSED, APPROVED, AND ADOPTED this 27th day of April, 1992, by the following vote: Councilmembers Burton, Howard, Jeffery, Moffatt & Mayor Snyder AYES: NOES: None ABSENT: None ABSTAIN: None ATTEST 8 Maturity (September 1994 1995 1996 . ..19.97 :is~98 1999 2000 'Principal: Amount $63'.0:00 66,000 70,000 75,600 80,000 86,000 91,000 $958,000 Interest' Rate MATURITY' SCHEDULE* 'Maturity . ~eptember 2) % 2001 .2002 2003 ,2004 2005 · 2006 2007 Principal Amount $98.000 105,000 113,000' 121,000" 131,000 '141,000 152,000 % Term Bonds Due September 2, 2012. · Interest Rate (Price 100%) The Bonds are of J~red when, as and if issued and delivered to the Undera, riter subject to the approval as to their legality by' St,rgis, Ness, Brunsell & Sperry, a professional corporation, Emeryvitte, California. It is expected that the Bonds in temporary or definitive form wH be available for delive.ry in New Yorlc, New York on or 'about . 1992. Rauscher Pierce Refsnes, Inc.-. Dated: _, 1992. *Vreliminar,)i itibject to change. A Jnited States of America State of California County of Alameda REGISTERED Number REGISTERED $ LIMITED OBLIGATION IMPROVEMENT BOND CITY OF DUBLIN DUBLIN BOULEVARD EXTENSION ASSESSMENT DISTRICT 91-1 SERIES NO. 91-1 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"), the City of Dublin, County of Alameda, State of California (the "City"), will, out of the redemption fund 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. 135-9i, adopted by the City Council of the City of Dublin on the 23rd day of December, 1991, 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 payinterest 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, 1993, 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, 1993. 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 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. REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH ON 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 fund with which to pay same. If not presented at maturity, interest on the Bond will run until maturity. EXHIBIT B 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, the City has caused this Bond to be signed in facsimile by the Treasurer of said City and by its Clerk, and has caused its corporate seal to be reproduced in facsimile hereon all as of the day of , 1992. CITY OF DUBLIN 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 2 (REVERSE OF BOND) LIMITED OBLIGATION IMPROVEMENT BOND CITY OF DUBLIN DUBLIN BOULEVARD EXTENSION ASSESSMENT DISTRICT SERIES NO. 91-1 ADDITIONAL PROVISIONS OF THE BOND Except for the term bonds maturing in the year 2012, each bond of this Series No. 91-1 is one of several annual series of bonds of like date, tenor and effect, but differing in amounts, maturities and interest rates. The Series No. 91-1 bonds have been issued by the City of Dublin under the Act and the Resolution of Issuance, for the purpose of providing means for paying for the improvements described in said proceedings, and are secured by the moneys in said redemption fund and by the unpaid portion of said assessments made for the payment of said improvements, and, including principal and interest, are payable exclusively out of said fund. 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 fund. Adetermination 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 a_y portion of it in the amount of $1,000 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 owner's address as it appears on the registration books of the Bank and by paying principal and accrued interest together with a premium equal to three percentum of the principal. By resolution duly adopted by the City, this Bond has been designated as a "Qualified Tax-Exempt Obligation" within the meaning of Section 265 (b) (3) of the Internal Revenue Code of 1986, as amended. The term bonds maturing in the year 2012 are subject to mandatory advance redemption, by lot, without premium, on September 2 in accordance with the following schedule and in the following amounts, on or after September 2, 2008. Amount to be Year Redeemed 2008 $ 165,000 2009 180,000 2010 195,000 2011 210,000 2012 230,000 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 4