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HomeMy WebLinkAbout1980-04-01; City Council; Resolution 6133RESOLUTIO1J NO. 61 33 RESOLUTION OF THE CITY COUNCIL AUTHORIZING THE SALE OF SPECIAL ASSESSMENT BONDS TO FINANCE IMPROVEMENTS IN A SPECIAL ASSESS- MENT DISTRICT. WJ3EREAS, in accordance with the terms and provisions of the tgNun- icipal Improvement Act of 1913," being Division 12 of the Streets and Highways Code of the State of California, this City Council has initiated proceedings for the construction of certain public works of improvement, together with appurtenances and acquisition, where necessary, in a special assessment district; said special assessment district known and designated as ASSESSMENT DISTRICT NO. 79-1 [BRISTOL COVE ASSESSMENT DISTRICT] (hereinafter referred to as the "Assessment District") ; and WHEREAS, this City Council has further determined that serial bonds shall be issued to finance the costs and expenses of said improvements and proceedings, and said bonds shall be issued pur- suant to the terms and provisions of the "Improvement Act of 1911," being Division 7 of the Streets and Highways Code of-: the State of California; and WHEREAS, at this time, this City Council is desirous of authoriz- ing the sale of bonds to finance the works of inproveinont as proposed for this Assessment District. NOW, THEREFORE, IT IS HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF CA€USBAD, CALIFORNIA, AS FOLLOWS: SECTION 1, That the above recitals are all true and correct, SECTION 2. That F. MACXENZIE BRO"T;J, BOND COUNSEL is hereby authorized to solicit pro2osal.s for the sale of bonds for the Assessment District, and said bonds shall not exceed the maximum legal interest rate of ten percent (10%) per annum, and said bonds shall be issued upon the terms and provisions of the "Improvement Act of 1911," being Division 7 of the Streets and Highways Code of the State of California, and pursuant to the terms and conditions as set forth in the Resolution of Intention as previously adopted for these proceedings. SECTION 3. That this Resolution is adopted pursuant to the pro- visions of Section 10602 of the Streets aiid Efighwys Code of the State of California, and it is further directed that all recommandations relating to the sale of bonds be presented to this City Council no later than ths time set for the Public Hearing on the "Report" and related matters for this Assessment District. SECTION 4. SECTION 5. SECTION 6. The City will provide, at no expense to the bidder, the unqualified opinion of F. MACKENZIE BROW, Attorney at Law, attesting to the validity of the proceedings and the enforceability of the bonds. That pursuant to the provisions of Section 10600.5, this City Council hereby determines that the bonds shall bear interest from theix date, and the date of said bonds shall be as follows: THE 35TH DAY AFTER RECORDATION OF THE ASSESSMENT ROLL IN THE OFFICE OF THE SUPERINTENDENT OF STREETS. That the BID SPECIFICATZONS relating to the sale of the assessment bonds for the Assessment District are hereby approved arid a copy for further particulars is referenced and attached hereto. APPROVED and ADOPTED this 1 st day of April, 1980 ATTEST : CITY OF CARSLBAD STATE OF CALIFORNIA -2- 0 "IMPROVEMENT ACT OF 1911" BOND BID SPECIFICATIONS CITY: PROJECT NAME: CITY OF CARLSBAD ASSESSMENT DISTRICT NO. 79-1 . [BRISTOL COVE ASSESSMENT DISTRICT] PROCEEDINGS : "Municipal Improvement Act of 1913", being Division 12 of the Streets and Highways Code of the State of California. Not to exceed: $ 213,600.00 BOND AMOUNT: All bonds to be issued under these proceedings will be representing liens against privately owned property, all within the incorporated limits of the City OWNERSHIP t INTEREST RATE: Not to exceed the maximum rate allowable by law which is ten percent (10%). Bidders may bid less, but all bids must be for a single rate of interest. The bonds, if redeemed prior to maturity, shall provide a redemption premium in the amount of five percent (5%) on the unmatured principal. BOND REDEMPTION : BOND TERMS: The bonds shall be payable in ten (10) annual installments. Bonds shall be serviced and collected at the Office of the City Treasurer of said City- PLACE OF PAYMENT: $ $ 1,500.00 SECURITY DEPOSIT: ESTIPlATED DATE OF DELIVERY: DATE CITY TO CONSIDER PROPOSALS : referred to City Council at their next regular meeting; said meeting beingthe 6TH of MAY, 1980- DATE FOR RECEIPT OF CONSTRUCTION BIDS: APRIL 30, 1980 at 2:30 p.n- DATE OF PUBLIC HEARING : THE 35TH DAY AFTER RECORDATION OF THE ASSESSMENT ROLL IN THE OFFICE OF THE SUPERINTENDENT OF STREETS. BOND DATE: NATURE OF PROJECT: CONSTRUCTION AND INSTALLATION OF CERTAIN DRAINAGE IMPROVEMENTS TOGETHER WITH APPURTENANCES AND APPURTENANT WORK. "IMPROVEMENT ACT OF 1911" BOND BID SPECIFICATIONS (Continued) Page 2 LEGAL OPINION : DISCOUNT : CONSIDERATION: ACCRUED INTEREST: PAYMENT : PFENIUM : FOR FURTHER PARTICULARS PLEASE CONTACT: The City will provide the legal opinion of F. Mackenzie Brown, attorney at law and the City will also provide said legal opinion upon delivery of the bonds, together with a Certificate of No- Litigation. No bid will be considered for less than - -_ NINETY PERCENT ( 9 0 Sd ) of par and discount will. be based on bonds actually issued. The award and acceptance will be based on the bidder submitting the lowest net effective interest rate on said bonds. Bidding to be on a flat basis and there will be no payment of accrued interest required. - Bonds will be sold for cash only and delivery will be made at the City Hall. A premium to any bid will only be con- sidered to break a tie. F. MACKENZIE BROW Attorney at Law 1600 Dove Street Suite 110 Newport Beach, California 92660 Telephone (714) 752-9025 (213) 587-4755 ***** BONDS AND SECURITY FOR BONDS AUTHORITY: The proceedings for the works of improvement and the levy of the special assessment are pursuant to the terms and provisions of the "Municipal Improvement Act of 1913", being Division 12 of the Streets and Highways Code of the State of California. been substantial compliance with the proceedings of Division 4 of the Streets and Highways Code, the "Special Assessment Investi- gation, Limitation and Majority Protest Act of 1931." The bonds to issue to finance the works of improvements are issued pursuant to the terms and provisions of the "Improvement Act of 1911", be- ing Division 7 of the Streets and Highways Code, and specifically pursuant to Chapter 4 of Part 5 of said Division 7. There has SECURITY: An individual assessment bond will be issued to represent each individual unpaid assessment within the boundaries of the assess- ment district and said assessment and bond constitute a direct lien and obligation against the particular parcel of benefited property described therein. Should default be made in any pay- ment upon principal or interest thereon, the owner of said bond is entitled to initiate foreclosure proceedings in the manner and form as authorized by law. Neither the public agency issuing the bonds or any officer thereof is in any way liable for the payment of the principal or interest on the bonds and the payment of said bonds is solely payable from the redemption fund created under the proceedings. PRIORITIES : The assessment bonds will have priority over any private debt such as a judgment, deed of trust or mortgage, regardless of the time imposed. The assessment lien and obligation is on a parity with general property taxes and also will have priority over any subsequently issued special assessment fixed lien obligations but will be subordinate and inferior ly imposed special assessment debt Levied on the cel of property. AMOUNT : to any previous- particular par- The bonds can issue in any amount in excess of $150.00 and will issue in the exact amount of the assessment remaining unpaid on the particular parcel of property. An assessment bond will issue for each parcel of property and the bond represents the direct amount of the lien obligation on said particular parcel of proper- ty - INTEREST RATE: The maximum interest rate allowable by law for this type of secur- ity is eight percent (8%) per annum. Assessment bonds may also be sold at a discount or at a premium. DELINQUENCIES: In the event that there is a default or a delinquency in the pay- ment of any principal or interest coupon by the property owner on said bonds, the bond holder is entitled, as of January 2 or July 2, as the case may be, to immediately declare the entire amount of the unpaid assessment to be due and payable or to direct or have the lot or parcel advertised in the manner and form as provided by the "Improvement Act of 1911". ceedings can be either pursuant to a sale procedure through the Office of the agency's Treasurer or through a judicial foreclosure through the Superior Court. The bonds and the assessments are payable to the Treasurer on each October 15, and April 15, as the case may be and, on the next June 1 or December 1, if the assess- ment coupon remains unpaid, a penalty is immediately added in the amount of one percent (1%) of the delinquent amount. A similar penalty of one percent (1%) is then added for each succeeding month as long as the assessments remain unpaid. The foreclosure pro- FORECLOSURE : The holder of the bond has a sole remedy in case of default or delinquency, which is through a foreclosure action initiated either by the Treasurer of the local agency or by a Court action through the local Superior Court. Under both foreclosure proceed- ings, the property owner upon the issuance of the Certificate of Sale, has a one year period of redemption. also, up to the time of the sale of said property, has the right of either reinstatement of the delinquent bond or, of course, redemption. Upon the end of the one year period of redemption, the Certificate of Sale holder has right to make application to the Treasurer for a deed to the property. The Certificate of Sale will bear interest at the rate of one percent (1%) per month on the amounts included in the Certificate of Sale up to the time that the deed is to be issued. The property owner DISCHARGE OF OBLIGATION: The property owner, at any time during the life of the bond, has the right to pay off the unpaid assessment by generally paying the unpaid principal amount, together with interest to the next coupon period (January 2 or July 2, as the case may be). The City Council also has the discretion as to whether or not to include in the Resolution of Intention the provision for a five percent (5%) redemption premium and if the Resolution of Intention did so provide, then the property owner must also pay five percent (5%) redemption on the unpaid principal at the time of the discharge of the obligation. If the payments are not made in the time as allowed by law, then penalties are applicable to said proceedings at the rate of one percent (18) per month on the unpaid amount. These bonds do provide the five percent (5%) redemption premium. 'Y STATE OF CALIF COUNTY OF SAN CITY OF CARLSBAD .. 1 ., I, ALETHA I,. RAUTENKmNZ, City Clerk of the City of Carlsbad, California, DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 6133 adopted by said City Council, approved and signed by the Mayor, and attested by the City Clerk, a11 at a reqular meeting of said City Council, held on the 1st day of Apri 1 , 19 80, and that the same was passed and adopt- ed by the following vote, to-wit: r was duly passed, approved, and AYES : NOES : COUNCIL-~N: Packard, Skotnicki, Anear, Lewis and Counci 1 woman Cas1 er COUNCILMEN: None ABSENT : COUNCILMEN : bne , 19 80, at CARLSBAD, - Executed this 7nd day of April California- CITY QLBL CLERK ?? Rb,+ d CITY OF CARLSBAD STATE OF CALIFORNIA