HomeMy WebLinkAbout1986 068 CC RESO1986 068 CC RESO ;¢fì ø Æ RESOLUTION NO. 86-68
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF BALDWIN PARK ISSUING BONDS UNDER THE
IMPROVEMENT BOND ACT OF 1915 FOR ASSESSMENT
DISTRICT NO. 86-1
WHEREAS, this Council has heretofore initiated assess-
ment proceedings pursuant to its Resolution No. 86-38 under
the Municipal Improvement Act of 1913, Division 12 of the
Streets and Highways Code) and has confirmed an assessment in
the total amount of $3,430,925.26; and
WHEREAS, the assessment proceedings provide for the
issuance of bonds pursuant to the Improvement Bond Act of
1915 Division 10 of the Streets and Highways Code); and
WHEREAS, following public bidding and receipt of bids
for the purchase of the bonds herein, the Council in its
Resolution No. 86-69 awarded the sale of said bonds to
Stone & Youngberg at the interest rates set forth in said
resolution and hereinbelow; and
WHEREAS, this Council desires, pursuant to Section
8650.1 of the Streets and Highways Code, to establish the
denomination of the bonds and the amount to mature each year
which will be other and different than that provided in
Section 8650 of said Code;
NOW, THEREFORE, IT IS HEREBY RESOLVED BY the City
Council of the City of Baldwin Park, California, as follows:
Section 1. That in accordance with the proceedings
heretofore taken, bonds shall be issued pursuant to the
Improvement Bond Act of 1915. The bonds shall be of the
denominationof $5,000 each, or multiples thereof, except for
one bond in the denomination of $925.26. The bonds shall be
dated August 15, 1986, The first interest is payable on
March 2, 1987, and thereafter the interest is payable semi-
annually on September 2 and March 2 of each year. The bonds
shall mature on September 2 in the amounts and years and
shall bear interest at the rates set forth below:
Amount Year September 2)
$ 925.26
5,000
85,000
100/000
110,000
115,000
125,000
135,000
145/000
155,000
170,000
180,000
195,000
215,000
230,000
250,000
270/000
290,000
315,000
340,000
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Interest Rate
7.50%
7.50%
7.50%
7.50%
7.50%
7.50%
7.50%
7.50%
7.75%
7.75%
8.00%
8.00%
8.00%
8.00%
8.00%
8.00%
8.00%
8.00%
8.00%
8.00%
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1986 068 CC RESO ;¢fì ø Æ Resolution 86-68
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Section 2. The bonds be redeemed and paid in
advance of maturity upon the second day of March or September
in any year by giving a notice provided by law and by paying
principal and accrued interest together with a premium equal
to three percent 3%) of the principal.
Section 3. The bonds shall be issued substantially
in the form set forth in Section 8652 of the Streets and
Highways Code, provided, however, that such bonds shall be
fully registered as to principal and interest,
Section 4. The bonds shall be signed by facsimile
signature by the City Treasurer and the City Clerk, and the
City Clerk shall also affix by facsimile the corporate seal
of the City to the bonds. The bonds shall be authenticated
by an authorized officer of Bank of America National Trust
and Savings Association, paying agent for the bonds.
Section 5. The proceeds from the sale of the bonds
shall be placed in the fund or account hereby created,
pursuant to Section 10602 and 10424 of the Streets and
Highways Code, which shall be called the Assessment District
No, 86-1 Construction Fund" and the moneys in the funds shall
be used only for the purposes authorized in the assessment
proceedings.
Section 6. The bonds shall be payable at the office
of Bank of America National Trust and Savings Association, in
Los Angeles and San Francisco, California, which is hereby
appointed as Paying Agent and Registrar, and shall be paid
out of the Redemption Fund created pursuant to Section 8671
of the Streets and Highways Code. In all respects not
recited herein said bonds shall be governed by the provisions
of the Improvement Bond Act of 1915, Division 10 of the
Streets and Highways Code.
Section 7. Pursuant to Section 10 of Resolution No.
86-38 and the provisions of Part 16 commencing with Section)
8880) of Division 10 of the Streets and Highways Code of the
State of California, from the proceeds received from the sale
of the bonds, an amount equal to ten percent 10.00%) on the
outstanding bonds the Reserve Requirement") shall be
deposited by the City Treasurer in a special reserve fund or
account the Reserve Fund") which the City hereby covenants
and agrees to maintain. The Reserve Fund shall be designated
and identified as the Assessment District No. 86-1 Reserve
Fund." The Reserve Fund shall constitute a trust fund for
the benefit of the bondholders, and shall be maintained,
used, transferred, reimbursed and liquidated as follows:
a) Whenever there are insufficient funds in
the Redemption Fund to pay the next maturing
installment of the principal of or interest on the
bonds, an amount necessary to pay such deficiency
shall be advanced from the Reserve Fund to the
Redemption Fund. The amounts so advanced shall be
reimbursed from the proceeds of redemption or sale
of the parcels for which payment of delinquent
installments of assessments and interest thereon or
real property taxes has been made from the Reserve
Fund.
b) In the event unpaid assessments are paid
in advance, in whole or in part, the assessments
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1986 068 CC RESO ;¢fì ø Æ Resolution No. 86-68
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thus paid shall be proportionately reduced by an
amount equal to the ratio of the Reserve Require-
ment for the Reserve Fund to the total amount
originally assessed in the proceedings for the
issuance of the bonds, and the amount thus deter-
mined shall be transferred from the Reserve Fund to
the Redemption Fund.
c) If on June 30 of each year, commencing
June 30, 1987, the amount of any income realized
from the investment of the money in the Reserve
Fund plus the remaining principal amount thereof
exceeds the Reserve Requirement, such excess shall
be transferred to the Redemption Fund and expended
for the advance retirement of bonds or applied as
pro rata credit to the next payable installment of
the assessments within thirteen months of the date
of the occurrence of such excess.
d) If, on June 30 of the fiscal year next
preceding the fiscal year in which the last unpaid
assessment installment becomes due and payable, the
balance in the Reserve Fund is sufficient to retire
all or a portion of the last maturing series of
outstanding bonds, whether by advance retirement or
otherwise, collection of all or a portion of the
principal and interest on the assessments shall be
discontinued and the Reserve Fund shall be liqui-
dated in retirement of the bonds.
Section 8. The City Treasurer is hereby instructed
to cause bonds, as set forth above, to be printed and to
issue and deliver the bonds to the purchaser thereof upon
payment of the purchase price.
APPROVED AND ADOPTED this 6th day of August, 1986.
/^Z^^————-
MAYOR
ATTEST:
X
c^^
LI^DA L. GA^K. 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 Baldwin Park at its regular meeting of the
City Council on the 6th day of August, 1986 by the following
vote:
AYES: COUNCILMEN MCNEILL, KING, GIBSON, IZELL AND MAYOR WHITE
NOES: COUNCILMEN NONE
ABSENT: COUNCILMEN NONE
LINDA L. GATR,CITY CLERK
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