HomeMy WebLinkAboutResolutions - No. 88-143RESOLUTION NO. 88- 143
BEFORE THE CITY COUNCIL OF THE CITY OF
LODI, CALIFORNIA
A RESOLUTION DETERMINING UNPAID REASSESSMENTS AND
PROVIDING FOR ISSUANCE OF REFUNDING BONDS
TURNER ROAD AND CLUFF AVENUE ASSESSMENT DISTRICT NO. 1
(REASSESSMENT AND REFUNDING OF 1988)
RESOLVED, by the City Council of the City of Lodi, California, that
WHEREAS, in proceedings heretofore undertaken pursuant to Resolution of Intention
No. 81-39, adopted by this Council on April 15, 1981, under which proceedings special
assessment bonds were issued designated "Improvement Bonds, Turner Road and Cluff
Avenue Assessment District No. 1, City of Lodi, California, Bond Series 1981-1," dated
December 23, 1981 (the "Improvement Bonds');
WHEREAS, on September 28, 1988, said Council adopted its Resolution No. 85-134, a
Resolution of Intention to Levy Reassessments and to Issue Refunding Bonds upon the
Security thereof, pursuant to the Refunding Act of 1984 for 1915 Act Improvement Bonds
as contained in Division 11.5 of the Streets and Highways Code (commencing with § 9500)
(the "Act'), and therein provided that reassessments would be levied and serial bonds
would be issued thereunder pursuant to the provisions of the Act to refund the outstanding
Improvement Bonds, reference to said Resolution hereby being expressly made for further
particulars;
WHEREAS, the City Council has determined that the outstanding principal amount of
the Improvement Bonds is the sum of $810,000.00, that of said outstanding principal
amount $135,000 is secured by assessment installments already posted to the 1988/89 tax
roll, and that it is in the best interests of the City to advance the maturity of the
remaining outstanding principal amount of the Improvement Bonds in the sum of
$675,000.00 (the "Prior Bonds") by providing for reassessments and the issuance of
refunding bonds to refund, in advance of maturity, the presently outstanding Prior Bonds
pursuant to the Act and proceedings heretofore taken pursuant to said Resolution of
Intention;
WHEREAS, the Director of Finance has filed his certificate of the accuracy of the
unpaid reassessments as stated in the Engineer's Report of reassessments and the auditor's
assessment register contained therein;
NOW, THEREFORE, said Council does hereby find, determine and order as follows:
1. That the reassessments in said district which now remain unpaid, and the
aggregate thereof, are as shown in Exhibit A, hereto attached, and by reference made a
part hereof.
2. That for a particular description of the lots and parcels of land bearing the
respective reassessment numbers set forth in said unpaid list and upon which
reassessments remain unpaid, severally and respectively, reference is hereby made to the
reassessment and to the diagram contained in the Engineer's Report, as reviewed and
approved September 28, 1988, on file in the office of the City Clerk, as confirmed by said
Council, the several lots or parcels of land represented by said reassessment numbers
being so numbered and designated upon said diagram and reassessment ns so confirmed,
severally and respectively.
3. The unpaid list is in the amount of $485,000.00, and refunding bonds shall be issuea
upon the security of said unpaid reassessments in said amount and in accordance with the
provisions of the Act, and under and pursuant to the provisions of said Resolution No.
88-134 and the proceedings thereunder duly had and taken; the bonds shall be designated,
"Limited Obligation Refunding Improvement Bonds, Turner Road and Cluff Avenue
Assessment District No. 1, City of Lodi, California, Bona Series 1988-1 (Reassessment
and Refunding of 1988)," and in all respects not specified in this resolution, shall be issued
in the manner prescribed by the Act. The bonds shall be in fully registered form only and
shall not be de -registerable, shall be numbered in sequence, shall be dated October 12,
1988, shall be in denominations of $5,000 or integral multiples thereof, and their
respective interest rates and dates of maturity are as shown in Exhibit B, hereto attached,
and incorporated herein by reference. The bonds shall bear interest from October 12,
1988, which shall be payable semi-annually on the second day of March and September in
each year, except that the first interest shall be payable on the second day of March, 1990.
4. Said bonds shall be issued in series, and the unpaid assessments as shown on Baia list
filed with the Director of Finance of said City and determined by said Council, together
with the interest thereon, shall remain and constitute a trust fund for the redemption and
payment of the refunding bonds and of the interest which may be due thereon, which
unpaid reassessments shall be payable in annual series corresponding to the number of
series of bonds issued, and an annual proportion of each assessment shall be payable in
each year preceding the date of maturity for each of the several bonds issued, and such
proportion of each reassessment corning due in nny yenr, torother with the annual interest
thereon, shall in turn be payable in installments as the general taxes of said City on real
property are taxable, and shall become delinquent at the same time and in the same
proportionate amounts and bear the same proportionate penalties for delinquency. There
shall be included in each annual installment of principal and interest on the bonds issued
to represent unpaid reassessments a maximum amount of two percent (2%) of the
installment to reimburse the City for the cost of administration and collection of such
annual installments and the registration, administration and payment of the bonds issued
or the reserve or any related funds.
5. The City Council has determined that the City will not obligate itself to advance
available funds from the City Treasury to cure any deficiency which may occur in the
bona redemption fund. Such determination shall not prevent the City, in its sole
discretion, from so advancing funds.
6. The bonds 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 at the applicable address
shown on the registration books of the registrar by paying principal and accrued interest
together with a premium equal to three percent (3%) of the principal.
7. The City Council covenants with the holders of said bonds to be issued herein that
it will, within one hundred fifty (150) days following the due date of any delinquent
installment of reassessments securing the bonds, commence and thereafter diligently
prosecute to completion a foreclosure action regarding such delinquent installment of
reassessment.
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Tne City further covenants that it shall neither take, nor permit to be taken, any
action which would jeopardize the tax exempt status of the bonds under section 148 of the
Internal Revenue Code of 1986, and regulations thereunder, in effect on the date of this
resolution, and will take all reasonable actions required to maintain the status of the
bonds as exempt from federal income taxes and California personal income taxes.
8. The Director of Finance shall establish the following funds for administering the
proceeas of the sale of refunding bonds and payment of principal and interest on the
bonds: (1) a refunding escrow fund, (2) a cost of issuance fund to cover the incidental
expenses, (3) the redemption fund for the refunding bonds, and (4) a special reserve fund
as additional security for the payment of the bonds as provided in Part 16 of the
Improvement Bond Act of 1915 in the amount of $33,950.00 and in accordance with the
terms of the offer to purchase said bonds dated September 21, 1988, by Wulff, Hansen dt
Co., the purchaser of said bonds, on file with the City Clerk, to which reference is made
for further particulars.
9. All proceeds of sale of the refunding bonds (excepting the sum of $33,950 for the
special reserve fund on the refunding bonds, and the sum of $14,550 for bond discount),
together with the sum of $74,000.00 from the construction fund, the sum of $124,390.00
from the redemption fund and the sum of $101,710.00 from the special reserve fund, all
established for the Prior Bonds, shall be deposited in the refunding escrow fund, to be
maintained by the Bank of America N. T. & S. A. as escrow bank for the refunding bonds.
Disbursements from the refunding escrow fund shall be made by the escrow bank in
accordance with the Engineer's Report for these proceedings and the terms and conditions
of the escrow agreement between the City and the escrow bank respecting the refunding
bonds. The sum of $33,650.00 from the redemption fund established for the prior bonds,
shall be deposited in the cost of issuance fund to cover the cost of issuing the refunding
bonds as shown in the Engineer's Report, either by dircet transfer or by transfer from the
appropriate existing fund into the cost of issuance fund.
10. The Director of Finance is hereby authorized to execute an appropriate escrow
agreement to be entered into between the City of Lodi and the escrow bank.
11. The redemption fund shall be maintained by the Director of Finance of the City for
payment of the refunding bonds at maturity, or at redemption prior to maturity, and all
interest on the bonds shall be made from the redemption fund. All payments of principal
and interest installments, including prepaid installments and premiums, if any, collected
on the reassessments, together with penalties, if any, shall be deposited in the bond
redemption fund, which shall be a trust fund for the benefit of the bondholders of the
refunding bonds.
12. The special reserve fund shall be maintained by the Director of Finance of the
City. There shall be deposited into the special reserve fund the amount of $33,950.00
from the proceeds of sale of the refunding bonds, and the fund shall be administered as
follows:
(a) 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 assessment being prepaid bears to the total amount of
assessments originally levied in the proceedings, together with its pro rata share of
the interest earned on said amount of the special reserve fund. 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.
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(b) The amounts on deposit in this fund shall never exceed 10`K of the proceeds
of the bond issue.
(c) When the amount in this 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 bond redemption
fund, and the remaining installments of principal and interest not yet due from
assessed property owners shall be cancelled without payment.
(d) 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 transfer 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.
13. Moneys in each of the funds, shall, whenever practicable, be invested in legal
investments for the City under applicable law for the moneys held pursuant to this
resolution at the time when any of such moneys are to be invested therein. Any income
therefrom or interest thereon shall accrue to and be deposited in the fund from which said
moneys were invested.
14. The refunding bonds shall be signed by the City Clerk and Director of Finance of
the City, or bear the engraved, printed or lithographed signature of said officers, and the
official seal of said City may be affixed to the bonds by printed, lithographed or other
rcprcxlife lion thereof. Said bonds shrill be substilit ially in the form set forth in the
Improvement Bond Act of 1915 with appropriate changes in the wording to show that they
are issued pursuant to the Refunding Act of 1984 for 1915 Act Improvement Bonds and are
payable at the office of the transfer agent, registrar and paying agent of said City, the
Bank of America National Trust Cc Savings Association, Corporate Agency Service Center,
San Francisco, California. The Director of Finance and City Clerk are hereby authorized
and directed to execute said bonds.
15. Each of said bonds is transferable only upon the registry book to be maintained by
the transfer agent, registrar and paying agent upon surrender of the bond duly endorsed or
accompanied by a written instrument of transfer satisfactory to said transfer agent,
registrar and paying agent and executed by the registered holder thereof, or by attorney
duly authorized in writing, and thereupon one or more new fully registered bonds of
authorized denominations and of the same maturity, aggregating the principal amount of
the bond surrendered for transfer, shall be issued to the transferee or transferees in
exchange therefor, and upon payment of the City's and registrar's reasonable charges, if
any, including any tax or governmental charge that may be imposed in connection with
such transfer and exchange. No such transfer and exchange shall be required to be made
during the 15 days immediately preceding any interest payment date, nor after
notification to the registrar of a temporary suspension period pending selection of bonds
for call and redemption, nor as to such bonds selected for call and redemption. Bonds so
transferred shall bear interest from October 12, 1988, or the date prior to transfer to
which interest has been paid, whichever is later.
16. The City shall not take, nor permit nor suffer to be taken by the Director of
Finance or otherwise, any action with respect to the gross proceeds of the bonds which if
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such action had been reasonably expected to have been taken, or had been deliberately
and intentionally taken, on the closing date of the bond issue would have caused the bonds
to be "arbitrage bonds" within the meaning of section 148(e) of the Internal Revenue Code
of 1986 (hereafter, the "Code") and regulations issued thereunder (hereafter, the
"Regulations").
17. On the basis of the facts, estimates and circumstances now in existence and in
existence on the date of issue of the bonds, as determined by the Director of Finance, the
Director of Finance is authorized and directed to certify that it is not expected that the
proceeds of said issue will be used in a manner that would cause such obligations to be
arbitrage bonds. Such certification shall be delivered to the purchaser of the bonds at the
time of delivery of and payment for the bonds.
18. The City shall assure that the following limitations, as defined by the Code and
the Regulations, shall apply:
A. not in excess of ten percent (10%) of the proceeds of the bonds is used for
private business use if, in addition, the payment of the principal of, or the interest
on more than ten percent (10%) of the proceeds of the bonds is (under the terms of
the bonds or any underlying arrangement) directly or indirectly, (1) secured by any
interest in property, or payments in respect of property, used or to be used for a
private business use, or (2) to be derived from payments (whether or not to the City)
in respect of property, or borrowed money, used or to be used for a private business
use; and
B. in the event that in excess of five percent (5%) of the proceeds of the bonds
is used for a private business use, and, in addition, the payment of the principal of,
or the interest on, more than five percent (5%) of the proceeds of the bonds is
(under the terms of the bonds or any underlying arrangement) directly or indirectly,
secured by any interest in property, or payments in respect of property, used or to
be used for said private business use, or is to be derived from payments (whether or
not to the City) in respect of property, or borrowed money, used or to be used for a
private business use, then, (1) said excess over said five percent (5%) of the proceeds
of the bonds which is used for private business use shall be used for a private
business use related to a government use of such proceeds, and (2) each such private
business use over five percent (5%) of the proceeds of the bonds which is related to
a government use of such proceeds shall not exceed the amount of such proceeds
which is used for the government use of proceeds to which such private business use
is related.
19. The City shall assure that not in excess of the lesser of five percent (5%) of the
proceeds of the bonds or $5,000,000 is to be used, directly or indirectly, to make or
finance loans (other than loans constituting nonpurpose investments and other than loans
which enable the borrower to finance any governmental tax or assessment of general
application for a specific essential governmental function) to persons other than state or
local government units, as defined in the Code and the Regulations.
20. The City shall not take any action, or permit or suffer any action to be taken if
the result of the same would be to cause the bonds to be "federally guaranteed" within the
meaning of section 149(b) of the Code and Regulations.
21. The City hereby designates the bonds for purposes of paragraph (3) of section
265(b) of the Code and covenants that the bonds do not constitute private activity bonds
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as defined in section 141 of the Code, and that not more than $10,000,000 aggregate
principal amount of obligations the interest on which is excludable (under section 103(a) of
the Code) from gross income for federal income taxes (excluding, however, private
activity bonds, as defined in section 145 of the Code), including the bonds, have been or
shall be issued by or on behalf of the City, including all subordinate entities of the City,
during the calendar year 1988.
22. In accordance with section 148(f)(4)(C) of the Code, the City covenants that it is
a governmental unit with general taxing powers; that the bonds are not private activity
bonds as defined in section 141 of the Code; that ninety-five percent (95 %) or more of the
net proceeds of the bonds are to be used for local governmental activities of the City (or
of a governmental unit the jurisdiction of which is entirely within the jurisdiction of the
City), and that the aggregate face amount of all tax-exempt obligations (other than
private activity bonds as defined in section 141 of the Code) issued by the City, including
all subordinate entities of the City, during the calendar year 1988 will not exceed
$5,000,000, excluding, however, tax-exempt obligations which are not outstanding on the
closing date of the bond issue.
23. Without the consent of the registered owners of the bonds, the City hereafter
may amend this resolution to add, modify or delete provisions as may be necessary or
appropriate to assure compliance with section 148(f) of the Code or as otherwise may be
necessary to assure the exemption of interest on the bonds from federal income taxation.
24. All actions mandated by this resolution to be performed by the Director of
Finance may be performed by the designee thereof or such other official of the City or
independent contractor, contractor, or trustee, duly authorized by the City Council of the
City to perform such action or actions in furtherance of all or a specific portion of the
requirements hereof.
25. The City Clerk shall furnish a certified copy of this Resolution to the Director of
Finance, to the Bank of America, National Trust and Savings Association, and to the
County Auditor.
DATED: October 5, 1988.
I, ALICE M. REIMCHE, City Clerk of the City of Lodi, do hereby certify that
Resolution No. 88- 143 was passed and adopted at a regular. meeting of the City Council
of the City of Lodi, held October 5, 1988, by the following vote:
AYES: Councilmembers- HinchTts , Olson, Reid, Snider and
Pinkerton (.Mayor)
NOES: Councilmembers- None
ABSEN7% Councilmembers- None
ABSTENTIONS: Councilmembers - Nme
Ul1011 '� ' &1/Yl(>9iL
ALICE M. REM E, City Clerk
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$485,000.00
*That portion of APN 049 020 17 lying within Parcel 1 as shown on Parcel Map filed in
Book 9 of Parcel Maps, page 216, in the office of the County Recorder of San Joaquin
County, as amended by Lot Line Adjustment approved by Resolution No. 82-12 of the Lodi
City Council.
**That portion of APN 049 020 20 lying within Parcel 1 as shown on Parcel Map filed in
Book 9 of Parcel Maps, page 216, in the office of the County Recorder of San Joaquin
County, as amended by Lot Line Adjustment approved by Resolution No. 82-12 of the Lodi
City Council.
EXHIBIT A
LIST OF UNPAID REASSESSMENTS
TURNER ROAD AND CLUFF AVENUE ASSESSMENT DISTRICT NO. 1
(REASSESSMENT AND REFUNDING OF 1988)
Reassessment No. Description
Amount
Assessor's Parcel No.
2
049 020 18
$5,262.01
5
049 080 26
5,919.72
6
049 080 25
5,919.72
7
049 08045
52,562.72
8A
049 080 65
32,008.40
8E
049 080 67
20,030.16
8F
049 080 68
3,411.11
8G
049 080 66
19,594.02
9
049 080 50
30,215.19
10
049 080 51
20,731.03
11A
049 080 55
10,535.20
11B
049 080 56
9,787.46
i1C
049 080 57
5,124.71
11D
049 080 58
5,565.10
12A
049 080 63
13,764.71
12B
049 080 64
13,764.71
13
049 080 46
11,943.87
14
049 08047
5,695.25
15
049 030 13
44,431.24
16A
049 04043
19,079.91
16B
049 040 44
47,700.81
17A
049 020 17 (*Portion only)
4,604.44
17B
049 020 20 (**Portion only)
3,888.20
18
049 020 19
93.460.31
$485,000.00
*That portion of APN 049 020 17 lying within Parcel 1 as shown on Parcel Map filed in
Book 9 of Parcel Maps, page 216, in the office of the County Recorder of San Joaquin
County, as amended by Lot Line Adjustment approved by Resolution No. 82-12 of the Lodi
City Council.
**That portion of APN 049 020 20 lying within Parcel 1 as shown on Parcel Map filed in
Book 9 of Parcel Maps, page 216, in the office of the County Recorder of San Joaquin
County, as amended by Lot Line Adjustment approved by Resolution No. 82-12 of the Lodi
City Council.
EXHIBIT A
TURNER ROAD AND CLUFF AVENUE ASSESSMENT DISTRICT NO. 1
(REASSESSMENT AND REFUNDING OF 1988)
REFUNDING BOND MATURITY SCHEDULE
Interest Annual Date of Maturity
Rate W—mount
6.25%
$65,000.00
September
2, 1990
7.00%
95,000.00
September
2, 1991
7.25%
100,000.00
September
2, 1992
7.40%
110,000.00
September
2, 1993
7.50%
115,000.00
September
2, 1994
Total
$485,000.00
EXHIBIT B