HomeMy WebLinkAboutCity Council Resolution 889-U5149A-19~ WMAM:PDA:BEK: rva 07/li/80 18c
RESOLUTION NO. 889-U
A RESOLUTION DETERMINING UNPAID ASSESSMENTS AND
PROVIDING FOR ISSUANCE OF BONDS
VILLAGE PARKING DISTRICT NO. 4
ASSESSMENT DISTRICT
RESOLVED, by the City Council (the "Council") of the City of
Saratoga, (the "City"), Santa Clara County, California, that
WHEREAS, the Council has provided in proceedings conducted under
and pursuant to its Resolution of Intention No. 889-C, adopted
Febreary 7, 1979, as amended, that serial bonds will be issued to
represent the unpaid assessments pursuant to the Improvement Bond Act
of 1915, Division 10 of the Streets and Highways Code of the State of
California (the "Bond Law");
WHEREAS, a complete list of all unpaid assessments has been made
by the City Clerk as Collection Officer and filed with the City
Treasurer (the "Treasurer");
WHEREAS, this Council has duly considered said list and has
determined that the same is an accurate statement thereof;
NOW, THEREFORE, THE COUNCIL HEREBY DETERMINES AND ORDERS, as
follows:
1. List of Unpaid Assessments. That the assessments now
remaining unpaid are as shown on said list and on Exhibit "A" attached
hereto and by this reference made a part hereof, that the aggregate
amount thereof is $500,000, and that for a particular description of
the lots or parcels of land bearing the respective assessment numbers
set forth in said list, reference is hereby made to the assessment and
to the diagram recorded in the office of the Superintendent of Streets
of the City after confirmation by the Council.
2. Issuance of Bonds. Bonds in the aggregate principal amount
of $500,000"""'~hall be '["~sued as herein provided upon the security of
said unpaid assessments in accordance with the provisions of the Bond
Law, and under and pursuant to the provisions of said Resolution of
Intention, as amended, and the proceedings thereunder duly had and
taken. The Bonds authorized herein (the "Bonds" and sometimes the
"Bond") shall be known as "Improvement Bonds, City of Saratoga, Village
Parking District No. 4 Assessment District, Series 1980-1, be dated
August 2, 1980, be numbered, of the denominations and mature in the
amounts and on the dates set forth in Exhibit "B" attached hereto and
by this reference made a part hereof-
3. Interest. The Bonds shall bear interest from their date at
the rate or rates determined by the Council at the time of award of
sale of the Bonds, payable commencing on January 2, 1981, and
semiannually thereafter on July 2 and January 2 of each year to their
respective dates of maturity.
Each Bond will continue to bear interest after maturity at
the rate.stated therein, provided it is presented at maturity and
payment thereof is refused on the sole ground that there is not
sufficient money in the Redemption Fund with which to pay same; if it
is not presented at maturity, interest thereon will run only until
maturity.
4. Payable. Bank of America National Trust and Savings
Association is hereby designated as Paying Agent and Registrar for the
Bonds, and the principal of and interest on the Bonds shall be payable
at its Corporate Agency Service Center in San Francisco, California.
5. Form. The Bonds, the registration endorsement thereon and
the coupons to be attached to the Bonds shall be substantially in the
forms set forth in Exhibit "C" attached hereto and by this reference
made a part hereof, the blank spaces therein to be filled in to conform
to the provisions of this resolution.
6. Execution. The Bonds shall be executed on behalf of the
City and under its 6fficial seal by the Treasurer and by the City Clerk
and the coupons shall be executed by the Treasurer whose signature may
be reproduced on the Bonds and on the coupons by engraved, printed or
lithographed facsimile thereof, and the official seal may be placed on
the Bonds in like manner. Such signing and sealing shall constitute
and be a sufficient and binding execution of each and every one of the
Bonds and coupons thereof, respectively.
If any officer whose signature appears on the Bonds or
coupons ceases to be such officer before the delivery of the Bonds to
the purchaser thereof, such signature shall be as valid as if such
officer had remained in office until the delivery of the Bonds.
7. Preparation and Deliver~{ of Bonds. The City Clerk is hereby
directed to cause the Bonds to be prepared in accordance with this
resolution and the accepted bid for the Bonds, and the Treasurer shall
deliver same upon their completion and execution to the purchaser
thereof, upon receipt of the purchase price therefor, and upon the
performance of the conditions contained in said accepted bid for the
Bonds.
8. Bgnd..Re~ister. The Treasurer shall keep or cause to be kept
a register showing the series, number, date, amount, rate of interest,
the last known holder of each Bond, and the number and amount of each
interest coupon paid. The Treasurer shall cancel or cause to be
canceled each Bond and coupon paid.
9. Establishment of Funds. There are hereby created and
established==the fOllOWing special funds which shall be held and
maintained by the Treasurer as separate trust accounts, distinct from
all other accounts of the City:
,(a) The Village Parking District No. 4 Assessment District
Improvement Fund or similar designation as determined by the Treasurer
(the "Improvement Fund");
(b) The Village Parking District No. 4 Assesment District
Series 1980-1 Bond Redemption Fund or similar designation as determined
by the Treasurer (the "Redemption Fund"); and
(c) The Village Parking District No. 4 Assessment District
Series 1980-1 Bond R~serve Fund or similar designation as determined by
the Treasurer (the "Reserve Fund").
10. ~.~provement Fund. Moneys received by the City from the cash
payments of assessments, contributions or any other source for the
acquisition, construction and financing of the improvements described
in the assessment proceedings, together with the proceeds received from
the sale of the Bonds, including any premium received by the City on
the sale of the Bonds (but not including the moneys required to be
placed in the Reserve Fund pursuant to Section 12 hereof nor any
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accrued interest which shall be placed in the Redemption Fund) shall be
placed in the Improvement Fun~. Disbursement from the Improvement Fund
shall be made exclusively to pay the costs of the acquisitions and/or
improvements, together with all expenses incidental thereto.
Any surplus remaining in the Improvement Fund after payment
of all costs shall be used, in such amounts as the Council may
determine, in accordance with the provisions of law for one or more of
the following purposes:
(a) Transfer to the general fund of the City, provided that
the amount of any such transfer shall not exceed the lesser of $1,000
or 5% of the total amount expended from the Improvement Fund~
(b) As a credit upon the assessment and any supplemental
assessment~ provided that such surplus may, if the Council so
determines, also be applied as a credit to the City on account of
contributions made by it towards the cost and expenses of the
acquisitions and/or improvements in the proportion which such
contribution bears to the total amount of the assessment or supplemental
assessment prior to the deduction of all such contributions~ or
(c) For the maintenance of any improvements acquire~ or
constructed in sai~ proceedings.
11. Redemption Fund. Any accrued interest received on account
of the sale of the Bon~s, all sums received from the collection of
unpaid assessments and interest and penalties thereon (but excluding
collection charges) as provided in Section 14 hereof, and any amounts
advanced from the Reserve Fund or otherwise in satisfaction of the
City~s obligations under Section 15 hereof shall be placed in the
Redemption Fund. Disbursement from the Redemption Fund shall be made
exclusively to pay the principal or redemption price of the Bonds and
the interest due thereon.
Any surplus remaining in the Redemption Fund after payment of
all Bonds and the interest thereon shall first be applied to repayment
to the City of any special taxes levied by it for the purpose of paying
for lands purchased by it under Part 13 of the Bond Law less its
recovery on the lands purchase~ at such delinquent sale, and also of
any costs incurred by it thereunder. The remainder shall be repaid in
accordance with the provisions of Section 8783 of the Bond Law to
persons paying supplemental assessments, if any, and the balance may be
proportionately credited upon the final installments due upon the
assessments securing the Bonds and repaid to those persons whose
assessments have been previously paid or may be transferred to the
general fun~ of the City.
12. Reserve Fund. An amount equal to $30,000 shall be placed in
the Reserve Fund upon receipt of the. proceeds of the sale of the
Bonds. Moneys in the Reserve Fund shall constitute a trust fund for
the benefit of Bondholders and be paid and transferred in the following
amounts an~ at the following times and under any of the following
circumstances=
(a) Whenever there are insufficient funds in the Redemption
Fund to meet the next maturing installment of principal of or interest
on the Bonds, an amount necessary to pay such deficiency shall be
transferred as an advance from the Reserve Fund to the Redemption
Fund. The amount so advanced shall be reimbursed and deposited in the
Reserve Fund'from the proceeds of redemption or sale of the parcel for
which payment of delinquent installments was made from the Reserve Fund.
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(b) In the event unpaid assessments are paid in cash prior
to their final maturity date pursuant to the provisions of the Bond Law
for the advance payment of assessments, said unpaid assessments shall
be reduced. The proportionate reduction on said assessments shall
equal the ratio of the total amount initially provided for the Reserve
Fund to the total amount originally assessed in the proceedings for the
Bonds, and an amount equal to the reduction in said assessments shall
be transferred from the Reserve Fund to the Redemption Fund.
(c) At any time the amount of any interest earned by the
investment of all or any portion of the Reserve Fund together with the
principal amount in said Reserve Fund exceeds an amount equal to
fifteen percent (15%) of the aggregate principal amount of the Bonds
issued less any discount thereon, such excess shall be credited upon
the unpaid assessments in the manner set forth in Section 10427.1 of
the Streets and Highways Code of the State of California~ provided
that, in order to comply with the current Federal Regulations, in the
event said excess cannot be credited to said unpaid assessments and
expended therefor within thirteen (13) months of the date said excess
has accrued, said excess amount shall be applied to the advance
retirement of the Bonds in the manner provided in the Bond Law. Should
said Federal Regulations be changed, the use of the excess must conform
to said Federal Regulations.
(d) Whenever the balance in the Reserve Fund is sufficient
to retire all the remaining outstanding Bonds, collection of the
principal and interest on the unpaid assessments shall be discontinued
and the Reserve Fund shall be liquidated in retirement of the Bonds.
The Council shall order the same to be credited against the assessments
remaining unpaid in the manner set forth in Section 10427.1 of said
Streets and Highways Code, and the amount apportioned to each unpaid
assessment shall be credited against the last unpaid assessment
installment, and, if the amount apportioned to each parcel exceeds the
amount of said last installment, then such excess shall be credited
against the next preceding unpaid assessment installment or
installments until exhausted.
13. Investment of Funds. Moneys in the Improvement Fund, the
Redemption Fund, and the Reserve Fund may be invested in any
obligations which are then authorized by the laws of the State of
'California as investments for local agencies, maturing on a date or
dates. prior to the need for such moneys. Any income or interest
thereon shall accrue to and be deposited in the fund from which said
moneys were invested.
14. Collection of Unpaid Assessments. The unpaid assessments
shown on saidlist filed with the Treasurer and determined by this
Council, together with the interest thereon, shall remain and
constitute a trust fund for the redemption and payment of the principal
of the Bonds and for the interest due thereon, which unpaid assessments
shall be payable in annual series corresponding in number to the number
of serial maturities of the Bonds issued. An annual proportion of each
unpaid assessment shall be payable in each year preceding the date of
maturity of each of the several series of Bonds issued, sufficient to
pay the Bonds when due, and such proportion of each unpaid assessment
coming due in any year, together with the annual interest thereon,
shall be payable in the same manner and at the same time and in the
same installments as the general taxes of the City on real property are
payable, and become delinquent at the same times and in the same
proportionate amounts and bear the same proportionate penalties and
interest after delinquency as do the general taxes on real property of
the City. A record of the several installments of principal and
interest on said unpaid assessments which are to be collected in each
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year during the term of the Bonds shall be kept in the office of the
Auditor-Controller of Santa Clara County. When the first interest
coupon is for interest for a longer period than six months, the Auditor-
Controller shall enter the amount thereof in the column on the
assessment roll provided for the first installment, and the balance in
the column on the assessment roll provided for the second installment.
All sums received from the collection of said unpaid assessments and of
the interest and penalties thereon shall be placed in the Redemption
Fund provided for herein, except that any percentage collected to
represent the costs of such collection shall be retained by said
Auditor-Controller.
15. A~vances from Available surplus Funds. In the event of a
d
el nquencf~in the payment of any installment of the assessment levied
upon any property for the payment of the principal and interest of the
Bonds, the City, in the absence of any other bidder, shall be the
purchaser of delinquent property upon which any of said assessments are
levied in like manner in which it becomes, or may become, the purchaser
of property sold for the nonpayment of general City taxes, and shall
pay and transfer from available surplus funds into the Redemption Fund
the amount of any delinquent assessment installment and interest
thereon. The City shall also pay and transfer from available surplus
funds into the Redemption Fund the amount of any future delinquent
assessment and interest thereon on such property pending redemption.
Any amounts so advanced shall be recoverable upon sale or redemption of
the property.
The obligations imposed by this Section and by Sections 8800
to 8808, inclusive, of the Bond Law shall not be enforceable as to any
available surplus funds of the City until all moneys in the Reserve
Fund have been first exhausted.
16. Covenant to Foreclose. The City hereby covenants with the
holders of the' Bonds that"'"'It will order and cause to be commenced and
diligently prosecuted to completion, court foreclosure proceedings upon
the lien of any and all delinquent assessments and interest, pursuant
to and as provided in Part 14 of the Bond Law. Such foreclosure
proceedings shall be commenced within 90 days following the date of
such delinquency.
17. Redemption Prior to Maturity. Each Bond.outstanding may be
redeemed and paid in advance of maturity upon the second day of January
or July in any year by giving at least 60 days notice and by paying the
principal amount thereof together with a premium equal to 5% of the
principal plus interest to the date of advanced maturity, unless sooner
surrendered, in which event said interest will be paid to the date of
payment, all in the manner and as provided in the Bond Law.
The provisions of Part 11 of the the Bond Law are applicable
to the advance payment of assessments and to the calling of Bonds.
The Treasurer shall call for redemption and retire Bonds upon
prepayment of assessments in amounts sufficient therefor. In selecting
Bonds for retirement, the lowest numbered Bonds of the various annual
maturities shall be chosen pro rata in a manner intended to disturb as
little as possible the relationship of unpaid assessments to Bonds
outstanding.
18. Registration and Transfer of Bonds. Each Bond herein
authorized may be registered only as to Both principal and interest
upon the written request of the holder and upon presentation of the
Bond to the Registrar designated in Section-4 hereof.
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An appropriate book shall be kept by the Registrar showing at
all times what Bonds are registered and in whose names, and, upon
presentation of the Bonds for such purpose, the Registrar shall, and
under such reasonable regulations as the Registrar may prescribe,
register or transfer or cause to be registered or transferred, in said
registry book, the Bonds as herein provided.
Upon presentation of a Bond for registration, the coupons
shall be removed therefrom and canceled (or preserved in a place of
safekeeping, at the option of the Registrar), and the name and number
of the Bond, the name and address of the holder in whose name it is to
be registered, the date of such registration and a notation that the
Bond is registered as to both principal and interest shall be entered
in the registry book, and appropriate endorsement thereof shall be made
by the Registrar in the space provided therefor on the back of the
Bond. Until such registration is discharged as hereinafter provided,
the interest when due shall be payable only to the registered owner and
the principal when due shall be payable only to such owner upon
surrender of the Bond to the Registrar.
A registered Bond may be transferred only by the registered
owner, in person or by attorney duly authorized in writing, by a
written instrument of transfer in form acceptable to the Registrar, and
by the Registrar endorsing such transfer on the Bond and in the
registry book. No transfer shall be required to be made during the
fifteen (15) days next preceding an interest payment date.
A registered Bond may be discharged from registration upon
written request of the registered owner. In such case, the Registrar
shall transfer the Bond to bearer by appropriate endorsement on the
Bond and in the registry book, cause all unmatured coupons that have
been removed from the Bond to be reattached to the Bond (such coupons
to be reprinted, if necessary), and deliver the Bond and coupons to the
owner, and thereupon negotiability and transferability by delivery
shall be restored.
Bonds that have been discharged from registration are subject
to successive registrations and transfers in the manner heretofore
provided.
The person requesting registration, transfer or discharge
from registration shall, as a condition precedent to the exercise of
such privilege, pay the Registrar's reasonable charges therefor, if
any, including any cost of reprinting the coupons and. any tax or other
governmental charge required to be paid with respect thereto.
19. Use of Proceeds Certificate. The Treasurer is authorized to
certify as to the r'~'~sonably expected use by the City of the proceeds
of the Bonds within the meaning of Section 103(c) of the Internal
Revenue Code of 1954.
20. Certified Copies. The City Clerk is hereby directed to
forward a c"e~'~'~ied copy of this resolution to the City Treasurer and
to the Auditor-Controller of Santa Clara County.
· · · , ,
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I hereby certify that the foregoing is a full, true and correct
copy of a resolution duly passed and adopted by the City Council of the
City of Saratoga, California, at a meeting thereof held on the 16th day
of July, 1980, by the following vote of the members thereof:
AYES, and in favor thereof, Councilmen: Linda Callon,
Martha C]evenger, John Mallory, Cherie] Jensen, Dale Watson.
NOES, Councilmen: None
ABSENT, Councilmen:
City
· I Saratoga
APPRO~D: (SEAL)
Mayor
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