HomeMy WebLinkAbout1986 040 CC RESO1986 040 CC RESO ;¢fì ù ü RESOLUTION NO. 86-40
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF BALDWIN PARK CALLING FOR SEALED
BIDS ON BONDS TO BE ISSUED TO REPRESENT
UNPAID ASSESSMENTS UPON LANDS IN
ASSESSMENT DISTRICT NO. 86-1
WHEREAS/ pursuant to Resolution NO. 86-38 adopted
June 4, 1986, and proceedings taken pursuant thereto under and
in accordance with the Municipal Improvement Act of 1913,
Division 12 of the Streets and Highways Code of the State of
California, this City Council fixed and established the
boundaries of Assessment District NO. 86-1; and
WHEREAS, this proceedings pursuant to said Municipal
Improvement Act of 1913 are being taken for the purpose of
acquiring and constructing certain public facilities in the
district; and
WHEREAS, an assessment of the proposed cost and
expense of said improvements was duly made and filed, and a
hearing will be held thereon on July 16, 1986; and
WHEREAS, it is necessary and desirable that this
City Council sell bonds to be issued to represent each upaid
assessment; and
WHEREAS, this City Council determined that pursuant
to Chapter 7 of said Municipal Improvement Act of 1913, that
said bonds would be issued pursuant to the Improvement Bond
Act of 1915, Division 10 of said Streets and Highways Code; and
NOW THEREFORE IT IS HEREBY RESOLVED by the City
Council of the City of Baldwin Park, California, as follows:
SECTION 1. That this City Council does hereby call
for sealed bids on the bonds proposed to be issued, to be
received up to the time specified in the notice attached hereto
as Exhibit A.
SECTION 2. That this City Council hereby selects and
specifies as the date of the bond the date specified for that
purpose in the notice attached hereto as Exhibit A.
SECTION 3. That the City Clerk of the City of Baldwin
Park shall cause a notice inviting such bids to be given by one
publication in the Highlander, such publication to be at least
five 5) days before the bids are to be opened. The City Clerk
shall further cause an appropriate notice of intention to sell
such bonds to be published in the Bond Buyer at least fifteen
15) days prior to the date that bids are to be opened,
SECTION 4. That the City hereby convenants and agrees
with the holders of the bonds herein, that the bonds shall be
enforceable and contain the terms and conditions substantially
in the form set forth in the notice of sale as attached hereto
as Exhibit A.
SECTION 5. That the Director of Community Services
or his designees are hereby authorized to complete the fore-
going notice by the addition of such information as is necessary
and to distribute it to potential bidders for the bonds.
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1986 040 CC RESO ;¢fì ù ü Resolution No. 86-40
Page Two
APPROVED AND ADOPTED this 4th f June, 1986.
MAYOR
ATTEST:
7^
NDA L.
NDA L.^SAIR, CITY CLERK
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES SS
CITY OF BALDWIN PARK
I, LINDA L. GAIR, City Clerk for the City of Baldwin
Park, do hereby certify that the foregoing Resolution was duly
and regularly approved and adopted by the City Council of the
City of Baldiwn Park at its regular meeting of the City
Council on the 4th day of June/ 1986 by the following vote:
AYES:
NOES:
COUNCILMEN GIBSON,IZELL,KING,MCNEIL,AND MAYOR WHITE
COUNCILMEN NONE
ABSENT: COUNCILMEN NONE
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1986 040 CC RESO ;¢fì ù ü NOTICE OF SALE OF IMPROVEMENT BONDS
IMPROVEMENT BOND ACT OF 1915
CITY OF BALDWIN PARK
ASSESSMENT DISTRICT NO. 86-1
Exhibit A"
NOTICE IS HEREBY GIVEN that sealed proposals will be received
and opened by a representative of the City of Baldwin Park,
California the City"), on July 15, 1986, at the hour of
11:00 A.M., P.D.T., in the offices of the Director of Community
Services
California
located at 14403 E. Pacific Avenue, Baldwin Park
91706
for the purchase of not to exceed
$3/300,000 principal amount of improvement bonds designated
IMPROVEMENT BONDS, ASSESSMENT DISTRICT 86-1" the Bonds"),
issued under and pursuant to the Municipal Improvement Act of
1913" and the Improvement Bond Act of 1915".
Proposals for the purchase of the Bonds will be received and
considered subject to the following terms and conditions:
ISSUE. NOT TO EXCEED $3,300/000.
PROCEEDINGS AND AUTHORITY FOR ISSUANCE. These proceedings are
authorized under the terms and provisions of the Municipal
Improvement Act of 1913", being Division 12 of the Streets and
Highways Code, for the constructin of certain public improve-
ments within the assessment district, including appurtenances,
with authorization for the Bonds being pursuant to the provisions
of the Improvement Bond Act of 1915"/ being Division 10 of said
Code. The Special Assessment Investigation, Limitation and
Majority Protest Act of 1931", being Division 4 of said Code, has
been fully coplied with in these proceedings.
DENOMINATIONS. The Bonds will be issuable only as fully
registered Bonds in the denomination of any multiple of $5,000,
except for one Bond maturing in the first year of maturity which
shall include any amount by which the total issue exceeds the
maximum integral multiple of $5,000 contained therein.
MATURITIES. The final exact maturity schedule for the Bonds
will be determined following the waiver of the cash collection
period, estimated to occur on July 16, 1986. Following receipt
of waiver of the cash collection period and prior to the date of
delivery of Bonds, the actual aggregate amount of Bonds to be
issued will be certified by the City Treasurer. The maturity
schedule will be arranged so as to provide for approximately
level debt service with Bonds maturing on September! 2nd of
each year commencing in 1987. For the purposes of calculating
the best bid for the bonds, the following Maturity Schedule,
which assumes that Bonds will be isued for the full amount of
proposed assessments, shall be used.
BONDS MATURING MATURITY YEAR BONDS MATURING
MATURITY YEAR
$165
175
190
205
220
240
260
280
305
325
1987
5
5
65
95
105
110
120
130
140
150
000
000
000
000
000
000
000
000
000
000
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
000
000
000
000
000
000
000
000
000
000
1988
1989
1990
1991
1992
1993
1994
1995
1996
DATE OF BONDS
The Bonds will be dated July 26, 1986.
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1986 040 CC RESO ;¢fì ù ü INTEREST RATE. The Bonds shall bear interest from their date
at a rate or rates to be determined at the sale hereof, but
not to exceed the current legal maximum of twelve percent 12%)
per annum. Said Bonds shall be issued in registered form with
interest payable semiannually on March 2 and September 2, 1986.
Bidders may specify any number of separate interest rates, and
any rate may be repeated as often as desired; provided, however,
that i) the difference between the highest and lowest rates
specified in any bid shall not exceed two and one half percent
2.5%); ii) each interest rate specified must be in a multi-
ple of 1/20 of 1% and a zero rate of interest cannot be
specified; iii) each Bond shall bear interest from its date to
its stated maturity date at the interest rate specified in the
bid; iv) all Bonds of the same maturity date shall bear the
same rate of interest; and v) no bid will be accepted which
provides for the cancellation and surrender of any interest
payment or for the waiver of interest or other concessions by
the bidder as a substitute for payment in full of the purchase
price in bank funds. Bids which do not conform to the terms
of this paragraph will be rejected.
REDEMPTION, Any Bond may be redeemed in any multiple of $5,000,
on any March 2 or September 2 prior to its stated maturity date,
at the option of the City Treasurer, upon giving the 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
percent 3%) of the principal amount redeemed. If less than an
entire Bond is redeemed, the Paying Agent shall prepare a Bond
for the unredeemed portion which shall be returned to the
registered Bondholder.
PAYMENT. Both principal and interest are payable in lawful
money of the United States of America at the office of the
Paying 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 Paying Agent prior
to delivery. The Bond will be issued in registered form as
to both principal and interest, and are subject to transfer
on the registered books upon proper notice given to the
Treasurer or designated Paying Agent. Payment of principal
and interest on each Bond shall be made directly to the re-
gistered owner thereof.
SECURITY, the Bonds herein offered for a sale are issued upon
and secured by unpaid assessments which, together with interest
thereon, constitute a trust fund for the redemption and payment
of the principal and interest on the Bonds. All the Bonds are
secured by the moneys in the Redemption Fund" established by
the City during the proceedings and by the unpaid assessments
levied to provide for payment of said acquisitions and improve-
ments, and, including principal and interest, are payable
exclusively out of said Redemption Fund.
The unpaid assessments are collected in annual installments,
together withinterest on the declining balances, on the tax
roll on which general taxes for real property are collected
and are payable and become delinquent at the same time and in
the same proportionate amounts and bear the same penalties
and interest and are subject to the same provisions for sale
and redemption as apply to properties for non-payment of
general taxes.
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1986 040 CC RESO ;¢fì ù ü In the event of a delinquency in the payment of any install-
ment of principal and interest appearing on the tax roll, the
City shall be obligated/ in the absence of any other bidder
at a foreclosure sale, to purchase such delinquent parcel at
the foreclosure sale and to pay future delinquent assessment
installments and interest thereon to the extent it has
available surplus funds, until such parcel is resold by the
City or redeemed.
Passage on June 6, 1978, of the Jarvis-Gann Initiative
Proposition 13), now Article XIIIA of the California
Constitution, has reduced the amount of general property tax
revenues received by the City; such reduction in tax revenues
makes it less likely that the City will have surplus funds to
advance to the Redemption Fund to cover delinquencies. In
addition. Article XIIIA and subsequent statutory enactments
have eliminated the formerly applicable mandatory duty on the
part of the City to levy and collect, and special tax in the
amount necessary to meet delinquencies, but not to exceed
$0.10 per $100 of assessed valuation of property within the
City) if surplus are not available to cover such delinquencies.
COVENANT FOR SUPERIOR COURT FORECLOSURE. In the event of a
delinquency in the payment of any installment of unpaid
assessment, the City may order institution of an action in
the Superior Court of the Stae of California to foreclose the
lien of such delinquent assessment, 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 fore-
closure sale in Superior Court, the right of redemption is
eliminated, as distinguished from the five-year redemption
period applicable to the sale of real property for delinquent
property taxes.
The City covenants with the holders of the Bonds that it will
cause to be commenced, and thereafter diligently prosecute,
Superior Court foreclosure proceedings upon any and all such
delinquent assessments, for the amount of such delinquency
plus costs, penalties and interest, as authorized by law.
Such foreclosure proceedings shall be commenced within 150
days following the date of such delinquency.
RESERVE FUND. The resolution of the City providing for issuance
of the Bonds will cause the creation of a special reserve fund
the Reserve Fund") to provide available funds, from which the
City can advance the amount of any delinquent installment on
unpaid assessments levied in the proceedings, and interest
thereon, into the Redemption Fund for the Bonds, pursuant to
and as provided in Part 16 of said Division 10. Payments from
the Reserve Fund shall be deemed an advance to be reimbursed
from the proceeds of redemption or sale of the properties with
respect to which payment of delinquent assessments and interest
thereon was paid.
The Reserve Fund shall be held and maintained as a separate
trust account, distinct from all other funds. Upon receipt
of the proceeds of sale of the Bonds, an amount equal to
ten percent 10%) of the par amount of Bonds issued shall be
deposited in the Reserve Fund. Moneys in the Reserve Fund
shall be paid and transferred in the following amounts and at
the following times and under the following circumstances.
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1986 040 CC RESO ;¢fì ù ü a) Whenever there are insufficient funds in the
Redemption Funds to pay the next maturing installment of
principal of or interest on the Bonds, an amount necessary
to make up such deficiency shall be transferred from the
Reserve Fund to the Redemption Fund:
b) On July 15 of each year, commencing July 15, 1987,
the amount of interest earned to the preceding June 30 by the
investment of moneys in the Reserve Fund in permitted invest-
ments shall be transferred from the Reserve Fund to the
Redemption Fund, in the manner provided in Part 16 of said
Division 10. The amount of the annual Reserve Fund disbursement
of earned interest shall be credited toward installments of un-
paid assessments each year during which any part of the Bonds
remain outstanding. The auditor's record prepared pursuant to
Section 8682 of the Streets and Highways Code shall reflect
credits against each of the unpaid asseessments in the manner
provided in Section 10327.1 of said Code in amounts equal to
each parcel's proportionate share of the Reserve Fund;
c) In the event assessments are paid in cash in advance
of their final maturity date, the City is authorized to reduce
the minimum amount of the Reserve Fund; and
d) Whenever the balance in the special Reserve Fund is
sufficient toretire all remaining outstanding bonds in the
issue, whether by advance retirement or otherwise, collection
of the principal and interest on the asessments shall be
discontinued and the Reserve Fund shall be liquidated in re-
tirement of the Bonds.
ASSESSMENT DESCRIPTION AND AMOUNTS/. For a description of the
respective lots, pieces and parcels of land upon which the
several asessments are levied and the Bonds are issued, and
for other information, reference is made to the assessment on
file in the Office of the city Cleric and to the Assessment
Diagram recorded in the Office of the County Recorder or the
County of Los Angeles, California.
TAX EXEMPT. In the opinion of Bond Counsel, interest on the
Bonds is exempt from the income taxes of the United States of
America under present federal income tax laws and also from
personal income taxes of the State of California under present
State income tax laws.
LEGAL OPINION. Thew approving opinion of Rutan & Tucker,
Costa Mesa, California, approving the validity and tax-exempt
status of the Bonds will be furnished to the successful bidder
upon delivery of the Bonds at no charge, and a copy of said
legal opinion wil be printed on each Bond.
BID, Said Bonds will be sold for cash only to the bidder whose
bid, in the opinion of the City, will best serve the interests
of the owners of land included in the assessment district. All
bids should be unconditional.
Each bid must state separately the discount and the rate of
interest offered for said securities. The highest bid will be
determined by adding the amount of the discount bid to the
total amount of interest which would be paid from the date of
the Bonds to their respective maturity dates at the interest
rates specified in the bid, and the award will be made on the
basis of the lowest net interest cost,
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1986 040 CC RESO ;¢fì ù ü Bids shall be for all of the Bonds to be issued and any bid
for less than the entire amount of said Bonds will be re-
jected. The purchaser must pay accrued interest from the date
of the Bonds to the date of deliverty. All interest will be
computed on a 360-day year basis. The cost of printing the
Bonds will be borne by the City.
The City reserves the right to disregard insubstantial
irregularities and technical defects in bids.
DISCOUNT. The Bonds will be offered for sale at four
percent 4%) of their par value, the discount is based on
and considered as it relates to the balance to assessment as
set forth in the Notice of Sale.
FORM OF BID. All bids must be for not less than all of the
Bonds and accrued interest to date of delivery/ less such
discount as is specified in the bid. Each proposal, together
with bidder's check must be enclosed in a sealed envelope
addressed to the CITY COUNCIL/ CITY OF BALDWIN PARK, c/o
14403 E. PACIFIC AVENUE, BALDWIN PARK, CALIFORNIA 91706
and endorsed PROPOSAL FOR IMPROVEMENT BONDS, ASSESSMENT
DISTRICT NO. 86-1". All Proposals must be delivered to
the office of the Director of Community Services prior to
11:00 A.M., P.D.T., on July 15, 1986.
SECURITY AND DEPOSIT. A certified or cashier's check for the
sum of $20,000 payable to the order of the CITY OF BALDWIN
PARK must accompany the bid as a guarantee that the bidder,
if successful, will accept and pay for the securities
described in the accepted bid in accordance with the terms of
the bid, and said moneys will remain in the possession of the
City in the Improvement created under these proceedings and
shall be applied as a credit toward payment for the Bonds,
CUSIP NUMBERS. It is anticipated that CUSIP numbers will be
printed on the Bonds, but neither failure to print such numbers
on any Bonds nor any error with respect thereto shall constitute
cause for a failure or refusal by the purchaser thereof to
accept delivery of any payment for the bonds. All expenses in
relation to the printing of CUSIP numbers on the Bonds shall
be paid by the City; provided, however, that the CUSIP Service
Bureau charge for the assignment of said numbers shall be paid
for by the purchaser of the Bonds. The responsibility of
ordering said numbers shall also be the responsibility of the
purchaser of the bonds.
NET INTEREST COST. Bidders are requested, but not required, to
supply a calculation of the total net interest cost and the
estimated net interest rate to the City on the basis of their
respective bids, which shall be considered as informative only
and not binding on either the bidder or the City.
UNDERWRITING GROUP. Each bidder is requested for furnishing
the names of all firms participating in the bid.
RIGHT OF REJECTION. The City reserves the right, in its
discretion, to reject any and all bids and to waive any
irregularity or informality in any bid.
PROMPT AWARD. The City will take action awarding the Bonds
or rejecting all bids on July 16, 1986, provided that the
award may be made after the expiration of the specified time
if the bidder shall not have given to the City a notice in
writing of the withdrawal of such bid.
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1986 040 CC RESO ;¢fì ù ü DELIVERY OF SECURITIES. Delivery of said Bonds shall be made
to the successful bidder at the Office of the Treasurer or
at any other matually agreeable location). Payment shall be
made in cash. Federal Reserve Bank funds, or other funds
immediately available to the City.
RIGHT OF CANCELLATION. The successful bidder shall have the
right, at its option, to cancel the contract of purchase if
the City shall fail to execute the bonds and tender the same
for delivery within sixty 60) days from the date of award
thereof. In such event the successful bidder shall be entitled
to the return of the deposit accompanying the bid.
NO LITIGATION CERTIFICATE. The City will furnish to the purchaser
of the Bonds a no-litigation certificate, certifying that ther
is no controversy or litigation pending concerning the validity
of the Bonds or the levy and collection of the assessments
securing the same, the existence of the Assessment District,
or of the City or of the title of the officers thereof to their
respective offices.
OFFICIAL STATEMENT. The Financial Consultant has prepared an
Official Statement, a copy of which will be furnished upon
request made to the Financial Consultant. After the award of
Bonds is made by the City, the City will provide the successful
bidder with 100 copies of the Official Statement at the expense
of the City.
APPROVED by the City Council, of the City of Baldwin Park,
California, this 4th day of June, 1986.
7^^
L. GAIR
CITY CLERK
CITY OF BALDWIN PARK,
CALIFORNIA
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1986 040 CC RESO ;¢fì ù ü BID FORM FOR 1915 ACT BONDS
TO: CITY COUNCIL
CITY OF BALDWIN PARK
14403 E. PACIFIC AVENUE
BALDWIN PARK, CALIFORNIA 91706
FOR: Proposal for Improvement Bonds
Assessment District No. 86-1
In accordance with all terms and conditions of your Notice of
Sale of Improvement Bodns, Improvement Bond Act of 1915,
Assessment District NO. 86-1, dated June 4, 1986, we submit
the following bid for Improvement Bonds Improvement Bond Act
of 1915) to be dated July 26, 1986, with interest payable
March 2,1987 and thereafter semiannually on March 2 and
September 2:
BONDS MATURING INTEREST RATE BOND MATURING INTEREST RATE
1987
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
1988
1989
1990
1991
1992
1993
1994
1995
1996
We will pay
of $
for a total of $
from the $ 3,300,000
which is a discount
par value, plus accrued
As a matter of information, the
interest to date of delivery.
interest cost, in accordance with the above bid, is:
Gross Interest Cost
Discount
TOTAL NET INTEREST COST
Effective Net Interest Rate
This offer is subject to a satisfactory legal opinion by
Rutan & Tucker, Costa Mesa, California, approving the validity
of the Bonds, at your expense.
Enclosed herein is a Cashier's or Certified check in the amount
of $ 20,000 payable to the order of CITY OF BALDWIN PARK, which
check we request by returned promptly in the event we are not
the successful bidder, otherwise to be retained and applied
against the purchase price of the Bonds.
This bid is made subject to the condition if any) shown on the
reverse side of this bid form.
Submitted by:
Other Members of the
Syndicate are:
Firm)
By:_____________
Representative)
Check Number:
Telephone Number
Date:
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