Loading...
HomeMy WebLinkAboutReso 1987-13374 RESOLUTION NO. 13374 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF BONDS PURSUANT TO THE "IMPROVEMENT ACT OF 1911", AND ACCEPTING OFFER TO PURCHASE BONDS WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA, has heretofore undertaken proceedings pursuant to Chapter 27 of the "Improvement Act of 1911", being Division 7 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 1911 BLOCK ACT XVII CASH CONTRACT (hereinafter .referred to as the "Assessment District"); and, WHEREAS, said proceedings provided for the issuance of bonds pursuant to said "Improvement Act of 1911", and it is necessary to establish terms and provisions of such issuance; and, WHEREAS, there has now been presented for consideration by this legislative body an offer to purchase said bonds. NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: CTION 1. Recitals. 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 respective denominations of the unpaid assess- ments against each lot or parcel of land assessed in said special assessment district. SECTION 3. Date of Bonds. All of said bonds shall be dated the 1st day of November, 1987, and interest shall accrue from that date. SECTION 4. Maturity and Denomination. The bonds shall be issued to represent each unpaid assessment of One Hundred Fifty Dollars ($150.00) or more in serial form. The term of the bonds shall be NINE (9) years from the second day of January next succeeding the next September 1st following their date and, at the expiration of said time, the whole principal sum then unpaid shall be due and payable. On the second day of January of each year, following the next September 1st after their date, an even annual proportion of the whole amount is due and payable to the registered owner of each bond, until the whole is paid, with all accrued interest at the rate set forth herein. SECTION 5. Interest. Each bond shall bear interest at the rate as set forth in the accepted offer to purchase 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 authenticated 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. TTION 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. 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. Redemption. The bonds may be redeemed by the owner or any person interested in any lot or parcel of land described therein, in the manner provided in the streets and Highways Code, at any time before maturity, and before commencement of proceedings for sale, upon payment to the Treasurer, for the registered owner of the bond, of the amount then unpaid on the principal thereof, with interest thereon (if not ~reviously paid) up to the next succeeding January 2 or July 2, as the case may be, at the rate set forth herein, and all penalties accrued and unpaid, together with a premium of five percent (5%) of said unmatured principal. SECTION 8. Transfer of Registered Bonds. Any fully registered bond may, in accor- dance 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 registe- red 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 9. Exchange of Registered Bonds. 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 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 denomina- tions of the same maturity for the same aggregate principal amount will be issued to the transferee in exchange therefor. SECTION 10. Books of Registration. There shall be kept by the Treasurer sufficient books for the registration and transfer of the bonds and, upon presenta- tion for such purpose, the Treasurer shall, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on said register, bonds as hereinbefore provided. ~TION 11. Execution of Bonds. The bonds shall be executed in facsimile by the Treasurer, 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 authentication and registration. In case an officer who shall have signed or attested to any of the bonds by facsimile or other- wise shall cease to be such officer before the authentication, delivery and issuance of the bonds, such bonds nevertheless may be authenti- cated, 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 12. Authentication. Only such of the bonds as shall bear thereon a certifi- cate of authentication substantially in the form below, manually executed by the transfer agent and registrar, shall be valid or obliga- tory for any purpose or entitled to the benefits of this Resolution, and such certificate of the transfer agent and registrar shall be ~onclusive 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 CITY OF CHULA VISTA as Transfer Agent and Registrar By: SECTION 13. 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 denominations authorized by this Resolution, 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 all cases in which bonds shall be exchanged or transferred, the transfer agent and registrar shall authenticate 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 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 preceding any January 2nd or July 2nd. ~TION 14. Ownership 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. Mutilated, 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 substitu- tion for such bond destroyed, stolen or lost, upon the owner's paying ~he reasonable expenses and charges in connection therewith, and, in the case of a bond destroyed, stolen or lost, his filing with the legis- lative 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 satisfac- tory to it. SECTION 16. 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 certi- ficate in its permanent files for the issue. SECTION 17. Improvement Fund. The proceeds from the sale of the bonds, after deposit of required amounts in 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 desig- nated by this name of the Assessment District and called the "Improve- ment Fund", and the monies in said Fund shall be used only 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 18. Redemption Fund. Principal of and interest on said bonds shall be paid out of the Redemption Fund as authorized pursuant to the "Improvement Act of 1911", being Division 7 of the Streets and Highways Code of the State of California. 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 provi- sions of said Act. 7TION 19. Order to Print and Authenticate Bonds. 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 20. Arbitrage Certificate. On the basis of the facts, estimates and circum- stances now in existence 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 arbitrage bonds. Such certification shall be delivered to the purchaser together with the bonds. SECTION 21. pffer to Purchase. The offer to purchase said bonds, as submitted by STONE & YOUNGBERG, is hereby approved and accepted. APPROVED and ADOPTED this 8th day of December , 1987. STATE OF CALIFORNIA Ay ST: CITY OF CHULA VISTA STATE OF CALIFORNIA Presented by Approved as to form by i 3~hn P. Lipp~tt, ~trector of D. Richard Rudolf, Ass~a~ant ~blic Works City Attorney %TE OF CALIFORNIA uUNTY OF SAN DIEGO CITY OF CHULA VISTA I, JENNIE M. FULASZ, CITY CLERK of the CITY OF CHULA VISTA, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 13374 , was duly passed, approved and adopted by the City Council, approved and signed by the Mayor, and attested by the city Clerk, all at the regular meeting of said City Council held on the 8th day of December , 1987, and that the same was passed and adopted by the following vote: AYES: COUNCIL MEMBERS Moore, McCandliss, Nader, Cox NOES: COUNCIL MEMBERS None ABSENT: COUNCIL MEMBERS Malcolm ABSTAIN: COUNCIL MEMBERS None EXECUTED this day of , 1987, at Chula Vista, california. STATE OF CALIFORNIA CrlY OF CHUIA V!5'IA November 20, 1987 The Honorable Members of the City Council City of Chula Vista 276 Fourth Avenue Chula Vista, CA 92010 RE: Offer to purchase bonds in the amount of $60,042.88 issuing from the City of Chula Vista, 1911 Block Act - XVII Cash Contract Members of the Council: Pursuant to discussions with your City staff and bond counsel for the above-referenced District, and our investigation and analysis of the issue, Stone & Youngberg hereby offers to purchase all of said bonds subject to the following terms and conditions. l) Purchase price for the bonds shall be one hundred percent (100.00%) of par value, without accrued interest. 2) Interest rate on the bonds shall be 9.40%. 3) Bonds shall be dated November 1, 1987. 4) Bonds shall be issued in accordance with Part 5, Div.'7 of the Streets and Highways Code (Improvement Act of lgll). 5) Bonds shall mature over a ten-year period returning one-tenth of their principal amount each year, January 2, 1989 through January 2, 1998, inclusive, be callable at 105% of their then unmatured par value, along with interest to the next succeeding coupon period, and bear penalty interest at the rate of 2.00% per month on all such unpaid amounts. 6) The total par value of bonds to be purchased is $60,042.88. The bonds are to be issued in the individual amounts as set forth below: reference is made to Assessment Numbers as shown on the Official Assessment Diagram recorded on the 25th day of September, 1987, Book of Maps of Assessment Districts, County of San Diego. li27 WALL STREET. PO BOX 1024.LA JOLLA CALIFORNIA 92038- i619~ 454'9081 The Honorable Members of the City Council City of Chula Vista November 20, 1987 Page 2 Asst. No. Amount 2 $ 1,176.12 9 5,028.71 11 684.12 12 1,050.62 13 2,314.95 14 5,149.80 16 22,495.62 17 22~142.94 Total $60,042.88 7) As per our conversations with City staff, we hereby agree to sell back to the City of Chula Vista, the bond to issue versus Assessment No. 2. This bond is in the amount of $1,176.12, and will be sold back to the City at par, without accrued interest. 8) The purchase price of the bonds shall be paid in full upon delivery to Stone & ¥oungberg of the bonds, accompanied by a) the unqualified approving legal opinion of Brown &Diven of Rancho Santa Fe, California, bond counsel. The legal opinion shall be printed on the bonds at no charge to Stone & Youngberg. b) a non-litigation certificate of the City. 9) The obligation of Stone & Youngberg to accept delivery and pay for bonds on the closing date will be subject to all statutes, both Federal and State, pertaining to the creation and confirmation of assessments in this District and the issuance of all bonds therefrom remaining in full force and effect as they were on the date of confirmation of assessments. 10) Our offer to purchase will expire December 16, 1987 unless sooner accepted. Respectfully submitted, M. H. O'Connor,~/~. MHO/ec CC: Shale Hanson, Associate Civil Engineer F. Mackenzie Brown Bond Counsel STONE t u¢ 23 ;5:05 November 20, 1987 The Honorable Members of the City Council City of Chula Vista 276 Fourth Avenue Chula Vista, CA 92010 RE: Offer to purchase bonds in the amount of $60,042.88 issuing from the City of Chula Vista, 1911 Block Act - XVII Cash Contract Members of the Council: Pursuant to discussions with your City staff and bond counsel for the above-referenced District, and our investigation and analysis of the issue, Stone & Youngberg hereby offers to purchase all of said bonds subject to the following terms and conditions. l) Purchase price for the bonds shall be one hundred percent (100.00%) of par value, without accrued interest. 2) Interest rate on the bonds shall be 9.40%. 3) Bonds shall be dated November l, 1987. 4) Bonds shall be issued in accordance with Part 5, Div.'7 of the Streets and Highways Code (Improvement Act of 1911). 5) Bonds shall mature over a ten-year period returning one-tenth of their principal amount each year, January 2, 1989 through January 2, 1998, inclusive, be callable at 105% of their then unmatured par value, along with interest to the next succeeding coupon period, and bear penalty interest at the rate of 2.00% per month on all such unpaid amounts. 6) The total par value of bonds to be purchased is $60,042.88. The bonds are to be issued in the individual amounts as set forth below: reference is made to Assessment Numbers as shown on the Official Assessment Diagram recorded on the 25th day of September, 1987, Book of Maps of Assessment Districts, County of San Diego. 1127WALL STRE£T' PO BOX 1024.LA JOLtA CALfFORNiA 92038.t6~9~454'9081 / T The Honorable Members of the City Council City of Chula Vista November 20, 1987 Page 2 Asst. No. Amount 2 $ 1,176.12 9 5,028.71 ll 684.12 12 1,050.62 13 2,314.95 14 5,149.80 16 22,495.62 17 22~142.94 Total $60,042.88 7) As per our convsrsations with City staff, we hereby agree to sell back to the City of Chula Vista, the bond to issue versus Assessment No. 2. This bond is in the amount of $1,176.12, and will be sold back to the City at par, without accrued interest. 8) The purchase price of the bonds shall be paid in full upon delivery to Stone & Youngberg of the bonds, accompanied by a) the unqualified approving legal opinion of Brown &Diven of Rancho Santa Fe, California, bond counsel. The legal opinion shall be printed on the bonds at no charge to Stone & Youngberg. b) a non-litigation certificate of the City. 9) The obligation of Stone & Youn§berg to accept delivery and pay for bonds on the closing date will be subject to all statutes, both Federal and State, pertaining to the creation and confirmation of assessments in this District and the issuance of all bonds therefrom remaining in full force and effect as they were on the date of confirmation of assessments. lO) Our offer to purchase will expire December !6, 1987 unless sooner accepted. Respectfully submitted, M. H. O'Connor,~/~. MHO/ec CC: Shale Hanson, Associate Civil Engineer F. Mackenzie Brown Bond Counsel