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HomeMy WebLinkAbout85-295 - Resolutions RESOLUTION NO. 85-295 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, AUTHORIZING AND PROVIDING FOR THE IS- SUANCE OF BONDS PURSUANT TO THE "IHPROVENENT BOND ACT OF 191 5" WHEREAS, the City Council of the City of Rancho Cucamon~a, California, has heretofore undertaken proceedings pursuant to the "Landscaping and Lighting Act of 1972", being Part 2 of Division 15 of the Streets and Highways Code of the State of California, and has formed an assessment district pursuant thereto, said special assessment District known and designated as PARK AND RECREATION INPROVEHKNT DISTRICT (HERITAGE AND RED HILL CONMUNITY PARKS) (hereinafter referred to as the "Assessment District"); and WHEREAS, the Ci~7 Council has, by Resolution, determined and declared that bonds shall be issued to finance the estimated cost of the proposed im- provement for the Assessment District under 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 the issuance of such bonds; and WHEREAS, there has now been presented for consideration by this legis- lative body an Official Statement containing information including but not lim- ited to the Assessment District and the type of bonds, including term and con- ditions thereof. NO%/, THEREFORE, IT IS HEREBY RESOLVED AS FOLLO%/S: SECTION i: That the above recitals are all true and correct. SECTION 2: Registered BondS. Said bonds shall be issuable only as fully registered bonds in the denomination of $5,000, or any integral nmltiple thereof, except for one bond maturing in the first year of maturity, which shall include the amount by which the total issue exceeds the maxi~am integral multiple of $5,000 contained therein. SECTION 3: Date of Bonds. All of said bonds shall be dated the 2nd day of September, 1985, and interest shall accrue from that date. SECTION 4: Maturity and Denomlnatio.. The bonds shall be issued in serial form with annual maturities on July 2nd of every year succeeding ten (10) 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 Trea- surer 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 5: 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 payman= date next preceding the date on which it is authenticated and registered, unless said bond is authenticated and regis- tered as of an interest payment date, in which case it shall bear interest from said interest paymant date, or unless said bond is authenticated and registered prior to the first interest payment dates in which case it shall bear interest from its date, until payment of its principal sum has been discharged. Resolution No. 85-295 Page 2 SECTION 6: Place of Payment. The principal and interest on the bonds shall be payable 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 may have been filed with the Treasurer for that purpose, as of the 15th day immediately preceding said interest payment date. SECTION 7: K~L~.2~.i~. This bond, or a portion thereof if issued in a denomination greater than $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 2rid 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 princi- pal of and accrued interest on such redeemed amount, together with a premium equal to five percent (SZ) of the redeemed principal amount. If less than the entire bond is redeemed, the unredeemed portion shall be reissued to the regis- tered owner thereof. SECTION 8: Transfer of Registered Bonds. Any fully registered bond may, in accordance with its term, be transferred upon the books of registra- tion 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 reg- istration 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 ~: Exchange of Registered Bondq. Fully registered bonds may be exchanged at the office of the Treasurer, or designated transfer agent/registrar, for a like aggregate principal amount of bonds of the same se- ries, 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 ag- gregate principal amount will be issued to the transferee in exchan6e therefor. SECTION 1O: Books of Re[istratiOn. There shall be kept by the Trea- surer sufficient hooks for the registration and transfer of the bonds and, upon presentation for such purpose, the Treasurer shall, under such reasonable regu- lations as it may prescribe, register or transfer or cause to be registered or transferred, on said register, bonds as hereinbefore provided. SECTION 11: Execution of Bonds. The bonds shall be executed in facsimile by the Treasurer and by the 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 reEistrar, for authentication and registration. In case an officer who shall ha~e signed or attested to any of the bonds by facsimile or otherwise shall cease to be such officer before the authentication, delivery Resolution No. 85-295 Page 3 and issuance of the bonds, such bonds nevertheless may be authenticated, deliv- ered 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 of- fice. SECTION 12: ~. Only such of the bonds as shall bear thereon a certificate of authentication substantially in the form below, manually executed by the transfer agent and registrar, shall be valid or oblig- atory 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 de- livered 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 **-**-85. BANK OF AMERICA NT & SA as Transfer A~ent and Registrar By: SECTION 13: Ne~otiabilitv, Registration and Transfer of Bondn. The transfer of any bond may be registered only upon such books of registration up- on surrender thereof to the transfer agent and registrar, together with an as- signment 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 authorized by this Resolu- tion, 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 a11 cases in which bonds shall be exchanged or transferred, the transfer agent and registrar shall authenticate at the earliest practical time, bonds in accor- dance with the provisions of this Resolution. All bonds surrendered in such exchange or registration transfer shall forthwith be cancelled. The legisla- tive 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 pre- ceding any Hatch 2rid or September 2nd. SECTION 14: Ownershin of Bonds. The person in whose name any bond shall be registered shall be deemed 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, 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 15: Hutilated. Destroyed. Stolen or Lost Bonds. In case any bond secured hereby shall become mutilated or be 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 de- stroyed, 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 legislative body of evidence satisfactory to it and to the Auditor thereof that such bond was destroyed, stolen or lost, and of his ownership thereof, and furnishing the legislative body with indemnity sat- isfactory to it. Resolution No. 85-295 Page 4 SECTION 16: Cancellation of Bonds. All bonds paid or redeemed, ei- ther 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 pro- visions 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 17: Reserve Fund. Pursuant to Part 16 of Division 10 of the California Streets and Highways Code, as amended, there shall be created a spe- cial reserve fund for the bonds Co be designated by the name of the Assessment District and specified as the special "Reserve Fund". The Reserve Fund shall be funded as follows: The initial designated amount equal to 7.5% of the bond proceeds shall be deposited in the Reserve Fund. Monies in the Reserve Fund shall be applied as follows: A. Amounts in said Reserve Fund shall be transferred to the redemp- tion Fund for the bonds if, as a result of delinquencies in the payment of assessments, there are insufficient monies in said Re- demption 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 re- spect to which an assessment is unpaid and from payments of the delinquent assessments; B. On July 15 of each year the amount of interest earned to the pre- ceding June 30 by the investment of monies in the Reserve Fund in permitted investments, and not previously transferred, shall be transferred from the Reserve Fund to the Redemption Fund, in the manner provided in Part 16 of said Division 10; 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. D. The amount of the annual Reserve Fund disbursement of earned in- terest shall be credited toward installments of unpaid assessments each year during which any part of the bonds remain outstanding. The Auditor's Record, prepared pursuant to Section 8682 of the Streets and Highways Code, shall reflect credits against each of the unpaid assessments in the manner provided in Section 22656 of said Code, in amounts equal to each parcel's proportionate share of the annual reserve fund disbursement. No portion of the annual Reserve Fund disbursement shall be transferred in any year in excess of the amount which would cause the Reserve Fund to fall below the original amount of the Reserve Fund. E. In the event that any annual Reserve Fund disbursement was not fully made in any year because to have done so would have caused the Reserve Fund to fell below the minims amount for that year, the Treasurer may thereafter transfer and credit any amounts in excess of the minimum amount toward the assessment installments due in subsequent years. Resolution No. 85-295 Page 5 SECTION 18: .~. The proceeds from the sale of the bouds, after deposit of required amouuts in the Reserve Fund mud the Redemption Fund, shall ba placed in the fuud hereby created, pursuant to Sectious 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 on- ly 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 19: ~. Principal of and interest on said bonds shall be paid out of the Redemption Fund created pursuant ~o 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 .ighways Code, as amended. SECTION 20: Covenant to Foreclosp. The legislative body hereby cove- nants that upon default of any assessment payment due, it will cause Superior Court foreclosure proceedings to be brought within one hundred eighty (180) days of such default and thereafter diligently prosecute to completion such proceedings. Such foreclosure proceedings may be deferred if funds are ad- vented to the special Reserve Fund to keep said Fund continually at the level set forth in the Section entitled "Reserve Fun" set forth hereinabove. SECTION 21: Covenant to Law Assessment. The legislative body hereby covenants that it will, pursuant to Chapter 3 of the "Landscaping and LightinE Act of 1972", annually levy an assessment within the Assessment District suffi- cient in amount to pay the debt service on the bonds for the fiscal year to which the assessment applies. SECTION 22: Order to Print and Authenticate Bond§. The Treasurer is hereby instructed 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 23: Arbitra~e Certlflcat~. On the basis of the facts, estimates and circumstances now in existence and in existence on the date of issue of the bonds, as determined by the Treasurer, said Treasurer is hereby authorized 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 arbitrage bonds. Such certification shall be delivered to the purchaser together with the bonds. SECTION 24: Designation of Transfer A=en~. Paying_ A~_ent au,I ReSistrat. The BANK OF AMERICA NATIONAL TRUST & SAVINGS ASSOCIATION is hereby designated transfer agent, paying agent and registrar with respect to =hess proceedings and the bonds to be issued. SECTION 25: Official Statement. The 0fficial Statement, as prepared and submitted, is hereby approved and adopted, and the execution and distribu- tion is hereby authorized. A copy of said Official Statement shall be kept on file with the transcript of these proceedings and remain open for public in- spection. Resolutioo No. 85-295 Page 6 PASSED, APPROVED, and ADOPTED this 6th day of November, 1985. AYES: Wright, Buquet, MikeIs, Dahl, King NOES: None ABSENT: None J, JD. ~i~el~, Mayor ' ATTEST: Beverly ~. Authelet, City Clerk l, BEVERLY A. AUTHELET, CITY CLERK of the City of Rancho Cucamonga, California, do hereby certify that the foregoing Resolution yes duly passed, approved, and adopted by the City Council of the City of Rancho Cucamon~a, Cal- ifornia, at a regular meeting of said City Council held on the 6th day vetoher, 1985. Executed this 7th day of November, 1985 at Rancho Cucamonga, Califor- nia. Beverly A./' Authelet, City Clerk