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HomeMy WebLinkAboutRESOLUTIONS - 02121991 - 91-109 RESOLUTION NO. 91/109 RESOLUTION AUTHORIZING ISSUANCE OF BONDS RANCHO PARAISO ASSESSMENT DISTRICT NO. 1990-1 The Board cf Supervisors of the County of Contra Costa resolves: Section 1. RECITALS. On January 8, 1991, 'the Board of Supervisors of the ,County of Contra - Costa adopted its resolution of intention to order improvements in Rancho Paraiso Assessment District No. 1990-1, 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 against parcels of land within the assessment district in the total amount of $6, 000, 000.20. These assessments will be recorded in the office of the County Recorder of the County of Contra Costa, and thereupon will become a lien on each parcel assessed. The period within which parcel owners might pay their assessments in cash without. interest was waived according to the petition signed .by each property owner within the boundaries of the assessment district. Section 2 . ISSUANCE OF BONDS. The Board 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 $6, 000, 000.00. Each bond shall be designated, "Limited Obligation• Improvement Bond, County of Contra Costa, Rancho Paraiso Assessment District No. 1990-1, Series No. 1990- l. " Bonds shall be dated approximately the date of delivery and issued in denominations of $5000 or integral multiples thereof, not to exceed $100, 000. 00. Bonds shall mature in principal amounts as set forth in the table attached as Exhibit A. The bond date and interest rates on the bonds shall be as set forth in the bond purchase agreement. D � 91 109 RESOLUTION / Section 3 . APPOINTMENT OF PAYING AGENT REGISTRAR AND TRANSFER AGENT. The Board of Supervisors ' 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 County of'. Contra Costa and Bank of America Nationa... Trust and Savings Association. 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 ,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 registrar 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 special reserve fund, the investment earnings fund and the arbitrage rebate fund, respectively., for 'Rancho Paraiso Assessment District No. 1990-1. 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 before 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 costs and expenses set forth in the .engineer's report heretofore approved by the Board, which report. and budget are 2 I 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 find, which shall be a trust fund for the benefit of the bondholders. Payment of the bonds at maturity, or at redemption before maturity, and all interest- on the bonds shall be made from the redemption fund. Section 5-. 3 . SPECIAL RESERVE FUND. There shall be deposited into the special reserve fund the amount of $180, 000. 00 from the proceeds of the. sale of bonds. That amount, less any amounts transferred to the redemption fund pursuant to Section 8584 of the Streets and Highways Code, shall constitute the "Reserve Requirement" for the bonds.' The special reserve fund shall be maintained by theCountyTreasurer. 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 unpaid assessments originally securing the Bonds. 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. 3 C. The amount maintained in the special reserve fund will never exceed the Reserve. Requirement. 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 ;.he 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 special reserve fund will be deposited in the investment earnings fund. As of September 2 of each year during the term of the bonds, the County 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 as follows: (a) To the extent that the balance in the special reserve fund is less than the Reserve Requirement, a transfer will be made from the investment earnings fund to the special reserve fund. (b) The remaining balance in the investment earnings fund, if any, will be transferred to the redemption fund to be used, in the discretion of the County Treasurer, as a credit upon the annual installments of assessment or for the advance retirement of bonds. The County Treasurer is authorized to retain independent attorneys, accountants and other consultants to assist in complying with Federal requirements. 4 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 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 payment. Section 7 . ADVANCE RETIREMENT OF BONDS. Any Bond or any portion thereof 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 or certified mail or by personal service to the registered owner thereof 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. Section 8. 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 9. 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 makes the following g 5 covenants, which shall constitute a contract withthe bondholders: Section 9. 1. FORECLOSURE OF LI_ENS. Not later than October 1 in any year, the County shall file' an action in the Superior Court to foreclose the lien of each delinquent assessment if the sli,a of uncured assessment delinquencies for the preceding fiscal year exceeds five percent (5%) of the assessment installments posted.to the tax roll for that fiscal year, and if the amount of the special reserve fund is less than the Reserve Requirement. Section 9. 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 9. 3 . MAINTENANCE OF TAX EXEMPTION. The County 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. 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 12th day of February, 1991. ATTEST:, PHIL,�BATCHELOR, Clerk of Board of Supervisors and County Administrator By 6