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Home My WebLink About1972-10-03; City Council; 896; Cannon Road Assessment District AD1-1970THF - CITY OF CARLSFAD, CALIFOQIIA e SLpplement to .Agc?:;da Bill 'lo. --- 89b Date -- October 3, 1972- Referred To: - --. - Subject: Submitted By: . Cannon Road Assessment District AD 1-1970 6 Sal'e of Bonds. Director.of Pub1 ic Works -- Statement of the Natter The subject Assessment District has been set up under the 1913 Act Procedures which require the sale of Assessment Bonds prior to construction. Due to the shortness of time it is not feasible to , prepare a prospectus and advertise for bids on the bonds. Stone and Youngberq of San Diego has been contacted and have offered a proposal to purchase the Cannon Road Bonds at 973% of face va:ue at an interest rate of 6.35% per annum. The Engineer's estimate has included 24% for a bond discount and therefor the Bond sale will generate sufficient revenues to pay the contract cost plus incidentals. 1 The Finance Director has reviewed the proposal with local banking representatives, and we have made inquiry through financial contacts, as well as large property owners within the District; and the consensus is that the Stone G Youngberg proposal is fair and reasonable. Exhibit 1) Letter from Stone and Youngberg dated September 18, 197Z0 Staff Recomgiendat ions Adopt Resolution No. Joq4q authorizing contract for the sale of bonds for Cannon Road Ass ssment District to Stone and Youngberg. Supplement to A3 No. 896 ~~t~: October 3, 1972 '. h .. .. .. -. . City Ir!anaqcr's Recommendation .- .. .. Concur ._ .. Council 'Action . 10-3.-72 - Resolution '#2099 authorizing sale of was adopted. (Stone and Yaungberg) improvement -. bonds . .. . .. t .. c .. . -2- MEMORANDUM October 2, TO : C FROM : C 972 ty Clerk ty Engineer SUBJECT: Cannon Road Assessment District AD1-1970 Contract No. 1012 Following is a schedule of publication and mailing for subject project : Publication Resolution of Intention No. 2096 Oct. 5, 1972 Notice Inviting Bids Oct. J, 1972 12.- ?+--/y Oct. 12, 1972 Mai 1 inq Notice of Improvement Oct. 6, 1972 Notice of U.G. Utility District Oct. 6, 1972 Resolution No. 2097 , U.G. District Oct. 6, 1972 Postin Notice9 of Improvement will be posted by Engineering before Oct. 6, 1972 and Affidavit of Posting will be furnished to you. A list of property owners in the districts and district maps are enclosed for your information. HTC/JS/dw encl . Hunter T, Cook City Engineer by: Tim Flanagan -. 3 i 7 4 f t r I E S IC 11 12 1: 14 1: 1C 17 1E 15 20 21 22 23 24 25 26 27 28 29 30 31 32 - .- - . . . . . . . -. .. A 3025.259 h RESOLUTION NO. 2099 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD AUTHORIZING THE SALE OF IMPROVE- MENT BONDS CANNON ROAD IMPROVEMENT DISTRICT 1-1970 The City Council of the City of Carlsbad resolves as follows: 1. Pursuant to the provisions of California Streets and Highways Code Section 10602, the Council determines that improve- ment bonds to be sold in the above entitled proceeding shall be sold at private sale by negotiation. 2. Stone & Youngberg, as the result of negotiations with representatives of the City of Carlsbad, has made an offer in writing dated September 28, 1972, for purchase of the improvement bonds to be issued in this proceeding. attached as Exhibit A and incorporated in this resolution. A copy of such offer is 3. Sale of the improvement bonds to be issued in these pro- ceedings is authorized on the terms set out in Exhibit A: Bonds shall be issued pursuant to the Improvement Act of 1911 and shall bear interest at the rate of 6.35% per annum and shall have 1/10 of their principal amount due each year from January 2, 1974, through January 2, 1983, inclusive. Such bonds shall be callable at any time at 105% of the outstanding principal amount, together with accrued interest to the next semi-annual interest coupon date 4. Sale of such bonds shall be made at a price of 97.5% of the principal amount of bonds issuing as a result of unpaid assessments, without accrued interest; and such bonds shall be dated not later than December 6, 1972, and shallhave coupon due July 2, 1973, for interest only. their first 5. The Clerk of,the City Council is authorized to take any action required for consummation of this sale. PASSED, APPROVED AND ADOPTED by the City Council of the City of Carlsbad at a regular meeting held on October 3 , 1972, by .. . ... . - 3 i 2 4 C t ‘i E $ 1c 13 1: 12 14 1: 1E 13 1E 19 2c 21 22 23 24 25 26 27 28 29 30 31 32 the following vote: AYES : Cmn. Dunne, McComas, Lewis, Chase and Fraze,. NOES : None. ABSENT : None. ATTEST: MAREAqT E. ADAMS (SEAL) -2- STONE & YOUNGBERG INVESTMENT SECURITIES MEMBERS PACIFIC COAST STOCK EXCHANGE September 28, 1972 -. . City Council 1200 Elm Avenue . City of Carlsbad ' Carlsbad, California 92008 RE: City of Carlsbad Assessment District Proceedings, Assessment District No. 1-1970 (Cannon Road Improve- ments) Gentlemen: This letter follows our recent communication with the City of Carlsbad and your request for a proposal on all 1911 'Act Improvement Bonds which will issue from the above des- cribed assessrient district. With this letter therefore, Stone t Youngberg agrees to purchase from the City of Carlsbad all bonds issuing from this proceedings. ject to the following terns and conditions: This purchase on our part shall be sub- 1. All bonds issuing from this proceedings shall be issued pursuant to the Improvement Act of 1911 and the Nunicipal Improvement Act of 1913. All bonds issuing from this proceedings shall bear interest at the rate of six and thirty-five one hundredths percent (6.35%) per annum, and shall have one tenth (l/lOth) of their prin- cipal amount due each year January 2, 1974 to January 2, 1983, inclusive. 2. 3. .All bonds are to be callable at anytime at 105% of the outstanding principal mount thereof, together with accrued interest to the next semi- annual interest coupon period. 4. All bonds shall be accompanied by the unqualified legal opinion of Mr. Richard Crake of Woolley, Crake, Collins & Ward, San Diego, California. The cost of such opinion is to be a part of the assessment district proceedings. EL PATIO BUILDING 7946 IVANHOE AVENUE LA JOLLA. CALIFORNIA 92037 - (714) 459.4478 City Council City of Carlsbad September 28, 1972 Page 2 5. 6. 7. 8. 9. Stone & Youngberg's purchase price of these bonds issuing as a result of unpaid assessments shall be equal to ninety-seven and one half percent (97 1/2&) of the principal amount thereof without accrued interest. Bonds issuing from this proceedings shall be dated not later than December 6, 1972 and therefore, have their first coupon due July 2, 1973 for in- terest only. It is our understanding that..bonds are to be avail- able for delivery approximately February 1, 1973. Our commitment will continue in effect thereafter provided bonds are delivered to us for payment on or before March 1, 1973, free and clear of all liens, lawsuits and encumbrances. This commitment is for the purchase of all bonds issuing from this proceedings in a total par value amount not exceeding $282,000.00 (The estimated total cost of these proceedings without provision for any City cash contribution). Properties to be assessed in this district shall be as shown on the enclosed map of assessment district. The allocation of project costs shall be, by formula, approximately as shown on the 1913 Act Report submitted by Mr. Judson T. Naiman on behalf of Associated Engineering, San Diego, California. We very much appreciate the opportunity to submit this proposal and ask that in the event you have questions regarding the above, you do not hesitate to call on us. Yomy truly, Genera4 Partner , MJB:pc cc: Mr. Richard Crake Mr. Judson T. Naiman