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HomeMy WebLinkAboutRESOLUTIONS - 03311987 - 87-187 RESOLUTION NO. 87/187 RESOLUTION AUTHORIZING ISSUANCE OF REFUNDING BONDS ASSESSMENT DISTRICT NO 1987-1, PLEASANT HILL BART STATION AREA REFUNDING BE IT RESOLVED by the Board of Supervisors of the a County of Contra Costa, State of California: Section 1. RECITALS. On March 31, 1987 , the Board of Supervisors of the County of Contra Costa adopted its resolution of intention to conduct reassessment proceedings and issue refunding bonds under the provisions of the Refunding Act of 1984 for 1915 Improvement Act Bonds (the "Act") . Proceedings taken under the Act led to the levy of reassessments by the Board of Supervisors against parcels of land within the reassessment district in the total amount of $8,785,000. These reassessments will be recorded in the office of the County Recorder of the County of Contra Costa and thereupon will become a lien upon each of the reassessment parcels. The refunding bonds are being issued in the amount of the total reassessment. Section 2. ISSUANCE OF BONDS. The Board of Supervisors hereby authorizes the issuance of refunding bonds and supplemental interest certificates under the provisions of the Act to be secured by the reassessments. The bonds shall be designated, "Assessment District 1987-1, Pleasant Hill BART Station Area Refunding Bonds, County of Contra. Costa, California, Series No. 1987-1, Without Obligation to Advance Funds. " In all respects not specified in this resolution, the bonds shall be issued in the manner prescribed by the Act. Bonds shall be issued in denominations of $5000 or integral multiples thereof, and shall be dated April 16, 1987. Bonds shall mature and shall bear interest (other than as described in RESOLUTION NO. 87/187 3 r . ...;; interest and principal on the bonds and supplemental interest :;certificates, there are hereby established five funds to be known as the escrow fund, the redemption fund, the special = reserve fund, the investment earnings fund and the excess :.investment earnings fund, respectively, for Assessment District 1987-1, Pleasant Hill BART Station Area Refunding. Section 5.1. ESCROW FUND. Except as provided in ;. : Section 5.3, proceeds of sale of the bonds and supplemental interest certificates, together with the redemption fund and -special reserve fund for the outstanding bonds for Assessment .:District 1983-1, Pleasant Hill BART Station Area shall be deposited with the County Treasurer. Disbursements from the . .:escrow fund shall be made in accordance with the Reassessment _. ..... Report for these proceedings. The amount of any surplus : remaining in the Escrow Fund after completion of the refunding' . ;., of the bonds being refunded in these proceedings shall be transferred to the Special Reserve Fund. Section 5.2. REDEMPTION FUND. The redemption fund_ . shall be maintained by the County Treasurer . All payments of ,.principal and interest installments on the reassessments, 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 (including that with respect to the supplemental interest certificates) 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 transferred into the special reserve fund the amount of $263,550.00 from the special reserve fund established for the 4 bonds being refunded with the proceeds of the bonds authorized herein. The special reserve fund shall be administered as follows and as described in Exhibit C hereto: 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 reassessment installments was made from. the special reserve fund. B. If any reassessment 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, together with accrued interest, as the original amount of the prepaid reassessment bears to the total amount of reassessments originally levied in Assessment District 1987-1. 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 or maximum annual debt service, whichever is less. 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 5 cancelled without payment. Section 5.4. INVESTMENT EARNINGS FUND. The investment earnings fund will be administered by the Treasurer in the manner described in Exhibit C. Section 5. 5. EXCESS INVESTMENT EARNINGS FUND. The excess investment earnings fund will be administered by the Treasurer in the manner described in Exhibit C. Section 6. PAYMENT ON BONDS. The principal and interest on the bonds and interest with respect to the supplemental interest certificates shall be payable at the office of the Bank of America National Trust St Savings Association San Francisco, California. Principal and interest _ shall be paid by check, draft or warrant mailed to the registered owner of each bond and supplemental interest certificates 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 and supplemental interest certificates may be registered to a new owner by completing the assignment certificate on the reverse of the document and delivering the document 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 and owners of supplemental interest certificates shall have the remedies set forth in the Act. In addition, the Board of Supervisors makes the following covenants, which shall constitute a contract with the bondholders and owners of 6 supplemental interest certificates: Section 8.1. FORECLOSURE OF LIENS . If any installment of the principal or interest of any reassessment levied in Assessment District 1987-1 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 reassessment 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. 2. ARBITRAGE. During the term of the bonds, the County will make no use of bond proceeds or the _ proceeds of the supplemental interest certificates which, if such use had been reasonably expected at the date the bonds are issued, would 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 authorized thereby. The detailed provisions of the Arbitrage and Rebate Covenants are set forth in Exhibit C. Section 8.3. MAINTENANCE OF TAX EXEMPTION. The County will take all reasonable actions required to maintain the status of the interest on the bonds (other than that represented by the supplemental interest certificates) as :interest which is exempt from federal income taxes and State of California personal income taxes. -7- 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 31st day of March, 1987. ATTEST: March 31 , 1987 PHIL BATCHELOR, Clerk of the Board of Supervisors and County Administrator By Dep t 8