HomeMy WebLinkAbout1986-06-24; City Council; 8249-6; College Blvd. Assessment District*.
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IEPT. FIN
TITLE: COLLEGE BLVD ASSESSMENT DISTRICT PAYING AGENT AGREEMENT
CITY M G R. &
RECOMMENDED ACTION:
Adopt Resolution No. r(, (;7 & appointing paying agent, registrar and
transfer agent for purposes of servicing certain assessment bonds.
ITEM EXPLANATION:
The City of Carlsbad recently sold $9.5 million of 1915 Act Bonds for the construction of College Blvd.
during which principal and interest must be paid, bond holders must be
registered and transfers of bond ownership must be recorded.
services are typically provided to the City by a paying agent.
These bonds will have a 20-year life
These
The City solicited proposals from paying agents and received two quotes:
one from Bank of America and one from Security Pacific Bank.
prices in these proposals are comparable. A survey of clients of both
agencies shows that both have reasonably good track records.
staff is recommending the use of Bank of America as the paying agent
on this particular issue based on minor difficulties experienced with
Security Pacific Bank in processing payments on previous City debt issues.
The
The City
FISCAL IMPACT:
The fees for paying agent services are shown in the attached agreement.
Annual paying agent costs will be paid from assessment district funds, if sufficient interest earnings are available. Otherwise, costs will be paid
from the Finance Department budget.
EXHIBITS:
1. Resolution No. f&d 2 appointing paying agent, registrar and transfer
2.
agent for purposes of serving certain assessment bonds.
Fee Agreement - Bank of America
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RESOLUTION NO. 8622
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA, APPOINTING PAYING AGENT, REGISTRAR AND TRANSFER AGENT FOR PURPOSES OF SERVICING CERTAIN ASSESSMENT BONDS
WHEREAS, the CITY COUNCIL of the CITY OF CARLSBAD, CALIFORNIA
has conducted proceedings for the formation of a special assess-
ment district under 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, to be financed through
bonds to issue pursuant to the terms and provisions of the
"Improvement Bond Act of 1915", being Division 10 of said Code,
said assessment district being known and designated as
ASSESSMENT DISTRICT NO. 85-2 (COLLEGE BOULEVARD)
(hereinafter referred to as the "Assessment District"); and,
WHEREAS, at this time this City Council is desirous to
appoint a paying agent, registrar and transfer agent for purposes
of servicing the bonds as proposed to issue for this Assessment
District; and,
WHEREAS, at this City Council has received a Fee Agreement
from a qualified paying agent, registrar and transfer agent for
the servicing of said bonds.
NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS:
SECTION 1. That the above recitals are all true and
correct.
SECTION 2. That this City Council hereby appoints .BANK OF
AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION to act as Paying
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Agent, Registrar and Transfer Agent for purposes of servicing the
bonds to issue under the provisions of the "Improvement Bond Act
of 1915" for the above-referenced Assessment District, based upon
the Fee Agreement submitted, which Agreement is hereby approved
and adopted and the execution thereof by the Mayor and City Clerk
is hereby authorized.
PASSED, APPROVED and ADOPTED at a regular meeting of the City
Council held on the 24th day Of June , 1986, by
following vote, to wit:
AYES: Council Members Casler, Lewis, Kulchin, Chick and Pettine
NOES: None
ABSENT: None Lv d. L
VSLER, Mayor
ATTEST:
ALtIHA L. RAU
(SEAL)
the
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FEE AGREE-
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THIS AGREEMENT, made and entered into this
1986, between the CITY OF CARLSBAD,
TRUST AND SAVINGS ASSOCIATION, a national banking association, hereinafter called "BANK".
day of
"CITY" and BANK OF AMERICA NATIONAL
WHEREAS, CITY has authorized and may from time to time issue Various Local Improvement Bond issues and authorize and issue additional bonds and wishes BANK to act as Agent to register, transfer ownership and pay principal and interest on said bonds.
CITY may from time to time include other bond issues under the terms of this Agreement.
CITY, as a Registrar, Transfer Agent, and Paying Agent, wishes to register, transfer ownership and pay said bonds and additional bonds and interest thereon.
1. CITY hereby appoints BANK its Agent to register, transfer ownership and pay bonds and interest thereon.
2. CITY will, on or before the date bonds and interest is to be paid, deposit immediately available funds with the Corporate Agency Division of BANK in San Francisco; otherwise BANK will not be required to make
any disbursement.
3. BANK will cause all of said bonds to be honored
in accordance with their terms for registration, transfer of ownership or payment at maturity or when by their terms they otherwise become payable upon presentation to BANK.
BANK will hold and apply any monies deposited.
4. CITY will deliver or cause to be delivered to the BANK, at least six (6) days prior to the original issue date of the bonds the following documents:
Original issuance instructions from Underwriters
Supply of bond certificate(s1 Specimen bond certificate(s) Certified bond resolution (s) Bond legal opinion (s) Debt service schedules
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5. CITY will pay to BANK fees as set .forth below:
INITIAL ACCEPTBPJCP: FM: (per issue) $500.00
Set up original issue by separate maturities and rates and prepare bonds for delivery for closing.
AL AD-TION FM: (billed annually)
For each issue: $500.00
CE AND SERVICUG FEE: (billed semiannually)
Annual minimum (per issue) $500.00
This fee includes the Annual Maintenance of and servicing of 100 bondholder accounts or any portion thereof; solicitation of taxpayer identification numbers; postings; semiannual interesf disbursement; stop payment and replacement of lost or missing interest checks; correspondence and research required, documentary
transfers; replacement of lost or stolen bonds; and one bondholder list.
Should the annual bondholder account base exceed 100 accounts, then in addition to the minimum annual maintenance and servicing fee of $500.00, a charge of $5.00 per bondholder account will be charged for the excess of 100 bondholder accounts.
Issuance, Registration or Transfer Each bond : Payment of bonds upon maturity or call - Each bond : Bondholder list over one - each holder: Minimum charge per list: .
Label production - each:
Mail processing by machine - each: Mail processing by hand - each:
Minimum charge:
Minimum charge:
(if applicable)
Each payment:
$ 1.50
$ 3.00
$ -05
$ 75.00
$ .OS
$ 50.00
$ 010
$ -25 $ 75.00
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$ 20.00
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G FUND -TION: (if applicable)
Selection of bonds for redemption and preparation of Notice of Redemption:
Purchase of bonds for retirement Each purchase:
FOR RESERVE FUU: (if applicable)
Per Reserve Fund:
--FUNDS: (if applicable)
Each Transaction: If directed by other than trustee:
Each investment other than Bank of America issued securities or Bank of America Certificates of Deposit. This service charge will cover costs of placement of an investment, settlement, safekeeping of the security, collection of interim interest and the costs of redemption.
-OR-: (if applicable)
Filing of tax forms, each form
ELOM): (if applicable)
$500.00
$ 75.00
$100 . 00
$ 75.00 $150.00
$ 1.50
$500.00
Set up'and annual maintenance of policy.
OUTdF - P-:
Fees do not include out-of-pocket expenses such as, but not limited to, counsel fees, postage, insurance,wires, stationery, costs of printing forms or letters, publication of notices of redemption, expenses of BANK personnel travelling to attend closings or meetings, etc. These out-of-pocket expenses will be charged at the actual cost incur red.
ADDITIONAL:
The above schedule of fees are for the ordinary services in
connection with the items mentioned, and should BANK be called upon to render any additional services in connection with the items mentioned or any services not set forth in . the above schedule, or services during default, a reasonable charge depending upon the services rendered will be made.
G OF CANCELLED BOW:
BANK shall retain cancelled bonds for a period of twelve months for the purpose of facilitating research, after which time they shal1,either be returned to the Issuer or sent to a commercial record storage warehouse selected by the Issuer. If cancelled bonds are to be microfilmed, the cancelled bonds and all supporting documentation are to be sent to a microfilm service bureau for filming. and a duplicate copy of the film will be retained by the BANK for research purposes and all documents will be sent to the BANK'S record destruction facility. The microfilm service bureau will bill the Issuer directly with a copy to the BANK. BANK will charge the Issuer 15% of the microfilm service bureau's bill as a processing charge (for handling, coordination, file certification, and
destruction).
An original
6. The foregoing schedule is subject to change upon
providing at least ninety (90) days advance written notice.
7. BANK will submit its statement for fees and
expenses due BANK, and CITY will pay said statement in accordance with Paragraph 2 of this Agreement. Statements for fees and expenses unpaid after 30 days are subject to a handling charge of 2% per month.
8. All notices, documents and other correspondence
will be mailed or delivered to BANK at Bank of America, Capital Markets Group, Corporate Trust Administration lt8510, 555 South Flower Street, 5th Floor Los Angeles, CA 90071 and to CITY at or to such other address as
either party shall from time to time indicate in writing to the other.
1200 Elm Avenue, Carisbad, CA 92008-1989
9. CITY upon ninety (90) days written notice to
BANK, may terminate this Agreement.
10. BANK upon ninety (90) days written notice to CITY, may terminate this Agreement.
THE TERMS AND CONDITIONS OF THIS Agreement are intended for the mutual benefit of CITY and BANK exclusively, and are not intended to give any third party any right or claim, contractual or otherwise, hereunder.
IN WITNESS WHEREOF, the parties have caused these
presents to be duly executed, the day and year first above written.
CITY OF CARLSBAD
- MARY H. (2 SLER BY
ALETHA L. RAUTENKRANZ BY d Title City Clerk
ERICA NATIONAL TRUST ASSOCIATION
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L- L BY
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