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HomeMy WebLinkAboutMINUTES - 02041992 - 1.48A .�c8A RESOLUTION NO. RESOLUTION AUTHORIZING CHIEF INVESTMENT OFFICER/ ASSISTANT TREASURER TO ENTER INTO BOND PURCHASE CONTRACT REASSESSMENT DISTRICT NO. 1991-3 (REFUNDING SAN PABLO CREEK IMPROVEMENTS A.D. NO. 1982-2) The Board of Supervisors of the County of Contra Costa resolves: The County Chief Investment Officer/Assistant Treasurer is hereby authorized to enter into a bond purchase contract with M. L. Stern & Co. , Inc. , in the form attached hereto as Exhibit A and by reference incorporated herein, to purchase all of the refunding bonds to be issued in Reassessment District No. 1991-3 (Refunding San Pablo Creek Improvements A.D. No. 1982-2) , Contra Costa County, California. The Chief Investment Officer/Assistant Treasurer is authorized to approve the interest rates on the bonds, not exceeding the rates set forth in the Amended Reassessment Report, to establish the date of the bonds and the closing date for delivery of the bonds and to execute the bond purchase contract, but the bonds shall be delivered not later than May 1, 1992 . If bond delivery cannot be effected by May 1, 1992 , the authority of the Chief Investment Officer/Assistant Treasurer to enter into the bond purchase contract shall expire. The Chief Investment Officer/Assistant Treasurer is further authorized, if necessary to the sale of the bonds, to approve and execute an Official Statement. 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 regular meeting thereof, held on the 4th day of February, 1992 . ATTEST: PHIL BATCHELOR, Clerk of the Board of Supervisors and County Administrator By Y 2 BOND PURCHASE CONTRACT FOR REASSESSMENT DISTRICT NO. 1991-3 (REFUNDING SAN PABLO CREEK IMPROVEMENTS A.D. NO. 1982-2) BOND PURCHASE OFFER M. L. Stern & Co. , Inc. (the "Underwriter) hereby offers to purchase all, but not less than all, of the improvement bonds designated "Limited Obligation Refunding Bonds, County of Contra Costa, Reassessment District No. 1991-3 (Refunding San Pablo Creek Improvement Assessment District No. 1982-2) (the "Bonds") , to be offered by the County of Contra Costa (the "County") under the terms and provisions of the Refunding Act of 1984 for 1915 Improvement Act Bonds, Division 11.5 of the california Streets and Highways Code, and all laws amendatory thereof or supplemental thereto. ISSUE Not to exceed $540, 000. 00. DENOMINATIONS The Bonds will be issued in $5, 000 denominations, or any integral multiple thereof up to $100, 000. MATURITIES The first interest payment on the Bonds shall be March 2 , 1993 , with principal payments commencing on September 2, 1993, and annually thereafter as specified below: Maturity Year Bonds Maturing 1993 $55, 000 1994 $75, 000 1995 $50, 000 1996 $85, 000 1997 $85, 000 1998 $90, 000 1999 $100, 000 INTEREST RATES Maturity Year Interest Rates 1993 1994 1995 1996 1997 1998 1999 NET INTEREST COST RIGHT OF REJECTION The County reserves the. right, at its sole discretion, to reject any and all interest rates offers from the Underwriter. The County shall reject all interest rate offers that do not result in reducing the assessment on each individual parcel, reducing each year's payments, not extending the term, and produce a 3% present value savings after the deduction of contributed funds. All of the above listed criteria shall be as computed by the County's financial advisor and bond counsel. Interest rates that meet the County's above mentioned criteria, the date of the Bonds, and the closing date shall be included in this contract, and the purchase offer to the County by the Underwriter shall occur on or before noon of May 1, 1992 . The purchase offer will be signed by the Underwriter and then the Chief Investment Officer/Assistant Treasurer of Contra Costa County before this contract shall be valid. DATED DATE OF THE BONDS CLOSING DATE OF THE BONDS DISCOUNT The Bonds will be sold at ninety-eight and three-quarters percent (98 3/4%) of the principal amount of Bonds. The discount is based on and considered as it relates to the balance to reassessment. REDEMPTION Any Bond may be redeemed, in any multiple of $5, 000, on any March 2 or September 2 prior to its fixed maturity date, at the option of the County, upon giving the thirty (30) day notice provided in the Improvement Bond Act of 1915 and upon payment of the principal amount thereof and interest accrued thereon to the date of redemption, plus a redemption premium of three per cent (3%) of the principal amount redeemed. PAYMENT Both principal and interest are payable in lawful money of the United States of America at the corporate trust office of the Bank of America National Trust & Savings Association, San Francisco, California (the "Agent") . EXECUTION AND REGISTRATION The Bonds will be executed by the facsimile signatures of the officials authorized to execute the Bonds and authenticated by the Agent prior to delivery. . The Bonds will be issued in registered form as to both principal and interest, and are subject to transfer upon proper notice given to the designated Agent. Payment of principal and interest on each Bond shall be made directly to the registered owner thereof. COVENANT FOR SUPERIOR COURT FORECLOSURE In the event of a delinquency in the payment of any installment of an unpaid reassessment, the County may order institution of an action in the Superior Court of the State of California to foreclose the lien of such delinquent reassessment, as authorized in Part 14 of Division 10 of the Streets and Highways Code of the State of California (the 2 Improvement Bond Act of 1915) . Upon foreclosure sale in Superior Court, the right of redemption is limited as distinguished from the five-year redemption period applicable to the sale of real property for delinquent property taxes. The County covenants with the owners of the Bonds that it will cause to be commenced, and thereafter diligently prosecute, Superior Court foreclosure proceedings upon any and all such delinquent reassessments, for the amount of such delinquency plus costs, penalties and interest, as authorized by law. Such foreclosure proceedings shall be commenced on October 1st following the date of such delinquency if the sum of uncured reassessment delinquencies for the preceding fiscal year exceeds five percent (5%) of the reassessment installments posted in the tax roll for that fiscal year and if the amount of the Special Reserve Fund is less than the amount originally placed in the Special Reserve Fund of the District. RESERVE FUND The Bond resolution established a special reserve fund (the "Special Reserve Fund") , to be held by the County Treasurer. From Bond proceeds, the County will place therein an amount equal to 3% of the principal amount of the Bonds, $16,200.00. TAX EXEMPT In the opinion of Bond Counsel, interest on Bonds shall be excludable from gross income under present federal income tax laws (subject to certain exceptions) and also from personal income taxes of the State of California under present State income tax laws. LEGAL OPINION The approving opinion of Sturgis, Ness, Brunsell & Sperry, Emeryville, California, approving the validity and tax- exempt status of the Bonds will be furnished to the Underwriter upon delivery of the Bonds at no charge, and a copy of said legal opinion will be printed on each Bond. DELIVERY OF SECURITIES Delivery of said Bonds shall be made to the Underwriter at the Bank of America National Trust & Savings Association, Principal Corporate Trust Office, 55 Hawthorne Street - 8th Floor, San Francisco, California 94105 (or any other mutually agreeable location) . Payment shall be made by the Underwriter in Federal Reserve Bank Funds, or other funds immediately available and acceptable to the County. NO LITIGATION CERTIFICATE The County will furnish to the Underwriter of the Bonds a no-litigation certificate, certifying that there is no controversy or litigation pending concerning the validity of the Bonds or the levy and collection of the reassessments securing the same, or the existence of the reassessment district, or of the County or of the title of the officers thereof to their respective offices. 3 EXPIRATION This offer expires at noon on May 1, 1992 . DATED: , 1992 CONTRA COSTA COUNTY, a political subdivision of the State of California By David Dezell Chief Investment Officer/ Assistant Treasurer M. L. STERN & CO. , INC. Yi By 4 BOND PURCHASE CONTRACT FOR REASSESSMENT DISTRICT NO. 1991-3 (REFUNDING SAN PABLO CREEK IMPROVEMENTS ASSESSMENT DISTRICT NO. 1982-2) BOND PURCHASE OFFER M. L. Stern & Co . Inc . (the "Underwriter) hereby offers to purchase all, but not less than all, of the improvement bonds designated "Limited Obligation Refunding Bonds, County of Contra Costa, Reassessment District No . 1991-3 (Refunding San Pablo Creek Improvement Assessment District No . 1982-2) (the "Bonds") , to be offered by the County of Contra Costa (the "County") under the terms and provisions of the Refunding Act of 1984 for 1915 Improvement Act Bonds, Division 11 .5 of the California Streets and Highways Code, and all las-,s amendatory thereof or supplemental thereto . ISSUE Not to exceed $540, 000 . 00 . DENOMINATIONS The Bonds will be issued in $5, 000 denominations, or any integral multiple thereof up to $100, 000 . MATURITIES The first interest payment on the Bonds shall be March 2, 1993, with principal payments commencing on September 2, 1993, and annually thereafter as specified below: Maturity Year Bonds Maturing 1993 $55, 000 1994 $75, 000 1995 $50, 000 1996 $85, 000 1997 $85, 000 1998 $90, 000 1999 $100, 000 INTEREST RATES Maturity Year Interest Rates 1993 k-�-30 1998 6 77d 1994 st�i' 1999 1995 1996 NET INTEREST COST � r?G 1997 �j-�d RIGHT OF REJECTION The County reserves the right, at its sole discretion, to reject any and all interest rates offers from the Underwriter. The County shall reject all interest rate offers that do not result in reducing the assessment on each individual parcel, reducing each year' s payments, not extending the term, and produce a 3% present value savings after the deduction of contributed funds . All of the above listed criteria shall be as computed by the County' s financial advisor and bond counsel . Interest rates that meet the County' s above mentioned criteria, the date of the Bonds, and the closing date shall be included in this contract, and the purchase offer to the County by the Underwriter shall occur on or before noon of May 1, 1992 . The purchase offer will _be signed by the Underwriter and then the Chief Investment Officer/Assistant Treasurer of Contra Costa County before this contract shall be valid. DATED DATE OF THE BONDS ✓%y�=lJ �O �7 7�' CLOSING DATE OF THE BONDS DISCOUNT The Bonds will be sold at ninety-eight and three-quarters percent (98 3/4) of the principal amount of bonds . The discount is based on and considered as it relates to the balance to reassessment . REDEMPTION Any Bond may be redeemed, in any multiple of $5, 000, on any March 2 or September 2 prior to its fixed maturity date, at the option of the County, upon giving the thirty (30) day notice provided in the Improvement Bond Act of 1915 and upon payment of the principal amount thereof and interest accrued thereon to the date of redemption, plus a redemption premium of three per cent (3o) of the principal amount redeemed. PAYMENT Both principal and interest are payable in lawful money of the United States of America at the corporate trust office of the Bank of America National Trust & Savings Association, San Francisco, California (the "Agent") . EXECUTION AND REGISTRATION The Bonds will be executed by the facsimile signatures of the officials authorized to execute the Bonds and authenticated by the Agent prior to delivery. The Bonds will be issued in registered form as to both principal and interest, and are subject to transfer upon proper notice given to the designated Agent . Payment of principal and interest on each Bond shall be made directly to the registered owner thereof . COVENANT FOR SUPERIOR COURT FORECLOSURE In the event of a delinquency in the payment of any installment of an unpaid reassessment, the County may order institution of an action in the Superior Court of the State of California to foreclose the lien of such delinquent reassessment, as authorized in Part 14 of Division 10 of the Streets and Highways Code of the State of California (the Improvement Bond Act of 1915) . Upon foreclosure sale in Superior Court, the right of redemption is limited as distinguished from the five-year redemption period applicable to the sale of real property for delinquent property taxes . The County covenants with the owners of the Bonds that it will cause to be commenced, and thereafter diligently prosecute, Superior Court foreclosure proceedings upon any and all such delinquent reassessments, for the amount of such delinquency plus costs, penalties and interest, as authorized by law. Such foreclosure proceedings shall be commenced on October 1st following the date of such delinquency if the sum of uncured reassessment delinquencies for the preceding fiscal year exceeds five percent (5o) of the reassessment installments posted to the tax roll for that fiscal year and if the amount of the Special Reserve Fund is less than the amount originally placed in the Special Reserve Fund of the District . RESERVE FUND The Bond Resolution established a special reserve fund (the "Special Reserve Fund") , to be held by the County Treasurer. From Bond proceeds, the County will place therein an amount equal to 30 of the principal amount of the Bonds, $16, 200 . 00 . TAX EXEMPT In the opinion of Bond Counsel, interest on Bonds shall be excludable from gross income under present federal income tax laws (subject to certain exceptions) and also from personal income taxes of the State of California under present State income tax laws . LEGAL OPINION The approving opinion of Sturgis, Ness, Brunsell & Sperry, Emeryville, California, approving the validity and tax- exempt status of the Bonds will be furnished to the Underwriter upon delivery of the Bonds at no charge, and a copy of said legal opinion will be printed on each Bond. DELIVERY OF SECURITIES Delivery of said Bonds shall be made to the Underwriter at the Bank of America National Trust & Savings Association, Principal Corporate Trust Office, 55 Hawthorne Street - 8th Floor, San Francisco, California 94105 (or any other mutually agreeable location) . Payment shall be made by the Underwriter in Federal Reserve Bank Funds, or other funds immediately available and acceptable to the County. NO LITIGATION CERTIFICATE The County will furnish to the Underwriter of the Bonds a no-litigation certificate, certifying that there is no controversy or litigation pending concerning the validity of the Bonds or the levy and collection of the reassessments securing the same, or the existence of the reassessment district, or of the County or of the title of the officers thereof to their respective offices . EXPIRATION This offer expires at noon on May 1, 1992 . DATED : �`:j , 1992 CONTRA COSTA COUNTY, a political sub-division of the State of California 1 By DAVIDZELL CHIEF INVESTM T OFFICER ASSISTANT TREASURER M. L. STERN & CO. , INC. By