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HomeMy WebLinkAboutRESOLUTIONS - 08161988 - 88-543 RESOLUTION NO. 88/544 RESOLUTION AUTHORIZING ISSUANCE OF BONDS ASSESSMENT DISTRICT NO. 1986-1, HIDDEN- POND ROAD The Board of Supervisors of the County of Contra Costa resolves: Section 1. RECITALS. On April 12, 1988 , the Board of Supervisors of the County of Contra Costa adopted its resolution of intention to order improvements in Assessment District No. 1986-1, Hidden Pond Road, Contra Costa 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 Board of Supervisors against parcels of land within the assessment district in the total amount of $845, 072 . 00. These assessments have been recorded in the office of the County Recorder of the County of Contra Costa, 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 August 1, 1988. Section 2 . ISSUANCE OF BONDS. The Board of Supervisors 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 $845, 072 . 00. The bonds shall be designated, "Limited Obligation Improvement Bond, County of Contra Costa, Assessment District No. 1986-1, Hidden Pond Road, Series No. 1986-1. " 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 September 6, 1988 . Bonds shall mature and shall bear interest at the rates set forth in the table attached as Exhibit A. cc: Bank of America National Trust & Savings Assn. Sturgis, Ness, Brunsell , & Sperry (2) Section 3 . APPOINTMENT OF PAYING AGENT, REGISTRAR AND TRANSFER AGENT. The Board of Supervisors hereby appoints the Bank of America National Trust and S:avings Association as paying agent, :registrar and transfer agent for the bonds in accordance with an agreement between the County of Contra Costa and Bank of America. 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 County Treasurer and the Clerk of the Board of Supervisors and the ,seal of the County 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 County 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 investment earnings fund, the excess investment earnings fund and the special reserve fund, respectively, for Assessment District No. 1986-1, Hidden Pond Road, Contra Costa County, California. 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 County Treasurer. Disbursements from the improvement fund shall be made by the County Treasurer in accordance with the budget of estimated 2 costs and expenses set forth in the engineer's report heretofore approved by the Board of Supervisors, which report and budget are subject to modification by the Board from time to .time as' prescribed by the Act. Section 5. 2 . REDEMPTION FUND. The redemption fund shall be maintained by the County 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 FUND. The special reserve fund shall be maintained by the County Treasurer. There shall be deposited into the special reserve fund the amount of $25, 352 . 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 Assessment District No. 1986-1, . Hidden Pond Road. This reduction in the amount of principal prepaid shall be balanced by a transfer from the special reserve fund to the 3 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, the special reserve fund and the redemption fund 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 excess investment earnings 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 County Treasurer is authorized to retain independent attorneys, accountants and other consultants to assist in complying with Federal requirements. Section 5. 5. EXCESS INVESTMENT EARNINGS FUND. Amounts in the excess investment earnings fund shall be invested in the same 4 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 Q. 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, Corporate Agency Division, 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. Section 7 . REREGISTRATION. 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. Section 8 . 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 Board of Supervisors makes the following covenants, which shall constitute a contract with the bondholders: Section 8 . 1. FORECLOSURE OF LIENS. If any installment of principal or interest of any assessment levied in Assessment District No 1986-1, Hidden Pond Road, becomes delinquent, the Board of Supervisors shall cause an action to be filed in the Superior Court of the County of Contra Costa to foreclose the lien of the delinquent assessment under the authority of Section 8830 and 5 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 8.2 . ARBITRAGE. During the term of the bonds, the County .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 . MAINTENANCE OF TAX EXEMPTION. The County will take all reasonable actions required to maintain the status of the bonds as bonds exempt from federal income taxes and State of California personal income taxes: I HEREBY CERTIFY that the foregoing resolution was duly and regularly adopted by the Board of Supervisors of the County of Contra Costa, State of California, at a regular meeting thereof, held on the 16th day of August, 1988. AYES: Supervisors Powers, Fanden, McPeak, Torlakson, ISchroder NOES: None ABSENT: None ATTEST: August 16, 1988 PHIL BATCHELOR, Clerk of the Board of Supervisors and County /Administrator By 5_a- _�� . 0. Maglio Deputy Clerk 6