HomeMy WebLinkAboutRESOLUTIONS - 03071989 - 89-154 RESOLUTION NO. V9 1S-1
RESOLUTION AUTHORIZING ISSUANCE OF REFUNDING BONDS
ASSESSMENT DISTRICT 1989-1, SAN RAMON VALLEY BOULEVARD REFUNDING
(REFUND A.D. 1981-1)
The Board of Supervisors of the County of Contra
Costa resolves:
Section 1. RECITALS. On March 7, 1989, the Board
of Supervisors of the County of Contra Costa adopted its resolution
of intention to conduct reassessment proceedings and issue
refunding bonds in Assessment District 1989-1, San Ramon Valley
Boulevard Refunding, (Refund A.D. 1981) , County of Contra Costa,
State of California, 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 $980, 000.00.
These reassessments will be recorded in the office
of the County Recorder of Contra Costa County, and thereupon will
become a lien on 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 under
the provisions of the Act to be secured by the reassessments. The
bonds shall be designated, "Limited Obligation Refunding Bond,
,County of Contra Costa, Assessment District 1989-1, San Ramon
Valley Boulevard Refunding, (Refund A.D. 1981-1) , Series No. 1989-
111. 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 March 21, 1989. Bondsshallmature and shall
bear interest at the rates set forth in the table attached as
Exhibit A.
RESOLUTION NO. 7/y S V
Section 3 . APPOINTMENT OF PAYING AGENT, REGISTRAR AND
TRANSFER AGENT. The Board of Supervisors hereby appoints 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 and Bank of America.
Section 4 . FORM AND EXECUTION. Bonds shall be issued as
fullyregistered bonds substantially in the form set forth as
Exhibit B to this resolution. The bonds shall be signed by the
Clerk of the Board of Supervisors and the County Treasurer 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 refunding fund, the redemption fund,
the special reserve fund, the investment earnings fund, and the
arbitrage rebate fund, respectively, for Reassessment District
1981-1, San Ramon Valley Boulevard
Section 5. 1. REFUNDING FUND. Except as provided in
Section, 5. 3, proceeds of sale, of the bonds, together with the
redemption fund and special reserve fund for the outstanding bonds
for Assessment District No. 1981-1, San Ramon Valley Boulevard
shall be deposited in the refunding fund to be maintained by the
County Treasurer. Disbursements from the refunding fund 'shall be
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made by the County Treasurer in accordance with the budget of
estimate V d costs and expenses set forth in the reassessment report
heretofore approved by the Board of Supervisors, which report and
budget are subject to modification by the Board of Supervisors from
time to time as prescribed by the Act. Any surplus remaining in
the refunding fund after the retirement of all bonds of the
refunded issue shall be transferred to the 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 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 $29,400. 00
(the "Reserve Requirement") from the proceeds of the sale of bonds.
The special reserve fund shall be administered as follows:
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 9620 of the Streets and
Highways Code, to the extent of delinquencies in the payment of
reassessments (or delinquencies, if any, in the assessments
replaced by the reassessments) . 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
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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
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the original amount of the prepaid reassessment bears to the total
amount of reassessments originally levied in Assessment District
1989-1, San Ramon Valley Boulevard Refunding (Refund A.D. 1981-1) .
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 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 refunding fund (except proceeds to be
used for retirement of the refunded bonds) and the special reserve
fund will be deposited in the investment earnings fund. On July I
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
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Internal Revenue Service) , the County Treasurer shall determine
whether any portion of investment earnings must be rebated to the
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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 reassessments 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.
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 Bank of America
National Trust and Savings Association, Corporate Agency Division,
P. 0. Box 3.7000, 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
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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 S. 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 Act. In
addition, the Board of Supervisors makes the following covenants,
which shall constitute a contract with the bondholders:
Section 8. 1. FORECLOSURE OF LIENS. Not later than
October I in any year, the County shall file an action in the
Superior Court to foreclose the lien of each delinquent assessment
if the sum 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 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.
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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 7th day of March, 1989.
ATTEST:
PHIL BATCHELOR, Clerk of the
Board of Supervisors and
County Administrator
By: QLd�
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