HomeMy WebLinkAboutCity Council Resolution 2473.13 RESOLUTION NO. 2473.13
RESOLUTION AUTHORIZING ISSUANCE OF BONDS
VILLAGE PARKING DISTRICT NO. 3
The City Council of the City of Saratoga resolves:
Section 1. RECITALS. On April 6, 1988, the City Council of
the City of Saratoga adopted its resolution of intention, to order
improvements in Village Parking District No. 3, City of Saratoga,
Santa Clara 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 $1,991,463.00. These
assessments were recorded in the office of the County Recorder of
the County of Santa Clara, and thereupon became a lien on each
parcel assessed. The period within which parcel owners might pay
their assessments in cash without interest has expired.
Section 2. ~SSUANCE OF BONDS. The City Council hereby
authorizes the issuance of improvement bonds under the provisions of
the Improvement Bond Act of 1915 to represent unpaid assessments in
the amount of $1,866,666.00. The bonds shall be designated,
"Limited Obligation Improvement Bond, City of Saratoga, Village
Parking District No. 3." Bonds shall be issued in denominations of
$5000 or integral multiples thereof, except for Bond No. 1, which
may be an odd amount, and shall be dated October 12, 1988. Bonds
shall mature and shall bear interest at the rates set forth in the
table attached as Exhibit A.
$ection 3. APPOINTMENT OF PAYING AGENT, REGISTRAR AND
TRANSFER AGENT. The City Council hereby appoints the Bank of
America National Trust and Savings Association as paying agent,
registrar and transfer agent for the bonds in accordance with an
agreement between the City of Saratoga and Bank of America NT&SA.
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 registrar.
The paying agent 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 of bonds and payment of
interest and principal on the bonds, there are hereby established
five funds to be known as the improvement fund, the redemption fund,
the special reserve fund, the investment earnings fund and the
arbitrage rebate fund, respectively, for Village Parking District
No. 3.
Section 5.1. .IMPROVEMENT FUND. Except as provided in
Section 5.3, proceeds of sale of the bonds, together with all
amounts paid on the assessments prior to bond issuance, shall be
deposited in the improvement fund to be maintained by the City
Treasurer. Disbursements from the improvement 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 budget are subject to
modification by the City Council from time to time as prescribed by
the Act.
Section 5.2~. REDEM~IQN..~F~N~.. The redemption 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 fund, which shall be a
trust fund for the benefit of the bondholders. Payment of the bonds
at maturity, or at redemption prior to maturity, and all interest on
the bonds shall be made from the redemption fund.
Section 5.3. SPECIAL RESERVE ~ND.... The special reserve fund
shall be maintained by the City Treasurer. There shall be deposited
into the special reserve fund the amount of $149,333.28 from the
proceeds of the sale of bonds,
A. During the term of the bonds, the amount in the special
reserve fund shall be available for transfer into the redemption
fund in accordance with Section 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 of 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 original amount of the special reserve fund as the original
amount of the prepaid assessment bears to the total amount of
assessments originally levied in Village Parking District No. 3.
This reduction in the amount of principal prepaid shall be balanced
by a transfer from the special reserve fund to the redemption fund
in the same amount.
C. The amounts deposited in the reserve fund will never
exceed 10% of the proceeds of the bond issue. Proceeds of
investment of the special reserve fund shall be deposited in the
investment earnings fund.
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 fund,
and the remaining installments of principal and interest not yet due
from assessed property owners shall be cancelled without payment.
Section 5.4. INVESTMENT EARNINGS FUND. Proceeds of the
investment of amounts in the improvement fund and the special
reserve fund (and the redemption fund if its earnings exceed
$100,000 in any bond year) will be deposited in the investment
earnings fund. On July 1 of each year during the term of the bonds
(or at other times as may be required or permitted by regulations of
the United States Internal Revenue Service), the Treasurer shall
determine whether any portion of investment earnings must be rebated
to the United States pursuant to Section 148 of the United States
Internal Revenue Code and regulations adopted thereunder. Any
amounts required to be rebated will be transferred to the arbitrage
rebate fund, and the balance will be transferred to the improvement
fund (or, upon completion of the improvement, to the redemption fund
to be applied as credit to the next installment of principal and
interest collected from owners of assessed land).
The City Treasurer is authorized to retain independent
attorneys, accountants and other consultants to assist in complying
with Federal requirements.
Section 5.5. ARBITRAGE REBATE FUND. Amounts in the
arbitrage rebate fund shall be invested in the same manner as
amounts in the other funds and shall be held in trust for rebate to
the United States at the times required by Section 148 of the United
States Internal Revenue Code and regulations adopted thereunder.
Section 6. PAYMENT ON BONDS. The principal and interest on
the bonds shall be payable at the office of the Bank of America
NT&SA, P. O. Box 37000, San Francisco, California 94137. Principal
and interest shall be paid by check, draft or warrant mailed to the
registered owner of each bond at the owner's address appearing on
the register maintained by the registrar on the 15th day preceding
the date of interest payment or maturity of each bond.
~ection 7. REREGISTRAT!QN. Any bond may be registered to a
new owner by completing the assignment certificate on the reverse of
the bond and delivering the bond to the registrar. Upon
reregistration, any bond may be replaced by one or more bonds of the
same maturity and aggregate amount in denominations of $5000 or any
integral multiple thereof.
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S~.~tion 8. ~OV~.ANTS. 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 8..~. ~QRECLOSURE OF LIENS. If any installment of
principal or interest of any assessment levied in Village Parking
District No. 3 becomes delinquent, the City Council shall cause an
action to be filed in the Superior Court of the County of Santa
Clara to foreclose the lien of the delinquent assessment under the
authority of Section 8830 and following of the Streets and Highways
Code of the State of California. This action shall be filed not
later than one hundred fifty (150) days after the date of
delinquency.
SectiOn....8..~.... 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, and
further shall rebate to the United States any amounts actually
earned as arbitrage in accordance with the provisions of that Code
and those regulations.
Section 8.3. ~INTENANCE....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.
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The above and foregoing resolution was passed and adopted at
a regular meeting of the Saratoga City Council held on the 21st day
of September, 1988, by the following vote:
AYES: Councilme/nkers Clevenger, Moyles, Peterson, Stut~Ten and Mayor Anderson
NOES: None
None
Deputy City
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MATURITY SCHEDULE
Village Parkin~ District No. 3, City of Saratoga
SEPT 2
MATURITY PRINCIPAL INTEREST
DATE AMOUNT RATE
1990 $1,666.00 6.20%
1991 85,000.00 6.40
1992 90,000.00 6.60
1993 95,000.00 6.80
199~ lO0,OOO.O0 7.00
1998 110,000.00
1996 115,000.00 7.20
1997 125,000.00 7.30
199B 138,000.00 7.40
1999 140,000.00 ?.50
~000 150,000.00 ?.60
2001 160,000.00
2002 175,000.00 ?.75
2003 165,000.00 ?.80
2004 200,000.00 7.80
TOTAL: $1,866,666.00
EXH ! B IT A
United States of America
State of California
County of Santa Clara
REGISTERED REGISTERED
Number
LIMITED OBLIGATION IMPROVEMENT BOND
CITY OF SARATOGA
VILLAGE PARKING DISTRICT NO. 3
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 Saratoga, County of Santa
Clara, 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. 2473.2, adopted by the City Council of
the City of Saratoga on the 6th day of April, 1988, 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 pay interest
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, 1990, 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, 1990. Both the principal hereof
and redemption premium hereon are payable at the principal corporate
trust office of the Bank of America National Trust and Savings
Association, or its successor,..as Transfer Agent, Registrar and
Paying Agent, in San Francisco, California, and the interest hereon
is payable by check or draft mailed 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.
EXHIBITB
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET
FORTH IN 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
it is not presented at maturity, interest thereon will run until
maturity.
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, said City of Saratoga has caused this
Bond to be signed in facsimile by the City Treasurer of said City
and by its Clerk, and has caused its corporate seal to be reproduced
in facsimile hereon all as of the 12th day of October, 1988.
CITY OF SARATOGA
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, transfer agent and registrar
Authorized Officer
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(REVERSE OF BOND)
CITY OF SARATOGA
VILLAGE PARKING DISTRICT NO. 3
ADDITIONAL PROVISIONS OF THE BOND
This Bond is one of several annual series of bonds of like
date, tenor and effect, but differing in amounts, maturities and
interest rates, issued by the City of Saratoga under the Act and the
Resolution of Issuance, for the purpose of providing means for
paying for the improvements described in said proceedings, and is
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, is 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. A determination 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 any portion of it in the amount of $5,000 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 mail 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.
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
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