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HomeMy WebLinkAbout1988-07-19; City Council; 9542; AWARD CONTRACT FOR CONSTRUCTION PALOMAR AIRPORT ROAD WEST ASSESSMENT DISTRICT PROJECT NO 3151BILL G"- /'e" I. b '* 43 .. ASSESSMENT DISTRICT, PROJECT NO. 3151 Adopt Resolution No. 88-222 authorizing the issuance of bonds anc approving the indenture. Draft Bond Indenture attached, Adopt Resolution No. gf-223 awarding the sale of bonds anc establishing a Redemption Fund. Adopt Resolution No. ff-2 47 accepting certain right-of-wa! interests necessary for the Palomar Airport Road West Assessmenl District project. Adopt Resolution No. ffka50awarding a contract for thc construction of the PalomaFAirport Road West Assessment District Project No. 3151. ITEM EXPLANATION: On July 5, 1988, the City Council conducted the public hearing fo: the formation of the Palomar Airport Road West Assessment District Following the public hearing, the City Council adopted thc necessary Resolutions approving the Engineer's Report, denyinc protests (none received) and making appropriate findings ani related matters, and confirming the District preliminar: assessments. On June 22, 1988, three (3) sealed bids for the construction of thi project were received as follows: M.L. Chilcote Incorporated $5,001,654.20 R.E. Hazard Construction Company $5 , 118 , 367.90 West Coast General Corporation $5,977,087.63 References have been verified for the low bidder and Staf recommends award of construction of this project to M.L. Chilcot Incorporated. Construction is tentatively scheduled to begin in early August an be completed in the summer of 1989. All prior approvals an permits have been secured for this project. ENVIRONMENTAL REVIEW: P 0 e 73y”2. $ .e Page 2 of Agenda Bill No. ‘I I GENERAL PLAN CONSISTENCY: The Planning Commission formally adopted Resolution No. 2696 01 October 21, 1987, determining the construction of the Paloma: Airport Road West Assessment District was in conformance with thc City’s General Plan. PROPOSITION H CONSISTENCY: This project is funded through the issuance of bonds in conjunctio with the City’s contribution of Public Facilities Fee funds. Bot: sources of funding are exempt from the Proposition H (capita project funding limitation) requirements. ACCEPTANCE OF RIGHT-OF-WAY INTERESTS: Attached are copies of the necessary right-of-way interest required to construct this project. All rights-of-way have bee obtained from the District participants with the exception of th Huntington Beach Corporation. Negotiations are continuing wit Huntington Beach to execute the required documents. In the even the required District right-of-way cannot be obtained fro Huntington Beach, the City Council has previously authorized th condemnation of this right-of-way which will be pursued an obtained in advance of the project contractor beginning work. FISCAL IMPACT: A summary of the estimated project costs as confirmed by th preliminary assessments is as follows: Construction cost (including 10% contingency) $5,502,000 Right-of-way (including contingency) 1 , 134 , 864 Incidentals 926,767 Less interest earned (148,549) Financing cost 1,024,342 TOTAL PROJECT COST $8,439,424 Less CRMWD contribution (162,725) Less City right-of-way credit (221,473) TOTAL PROJECT ASSESSMENT $4,720,471 The City Council has previously appropriated a total of $3,334,75 Public Facilities Fee funds in prior year Capital Improvemen Program budgets for the City’s contributions to this project. N additional City contribution is anticipated at this time. Staff recommends award of the construction contract to M.L Chilcote Incorporated for the Palomar Airport Road West Assessmen District. Less City contribution (3 , 334,755) . * q53L e .. Page 3 of Agenda Bill No. EXHIBITS : 1. Location map. 2. & -r Resolution No. fr-aJa authorizing the issuance of bonds anc approving the indenture. Draft Bond Indenture attached. 3. Resolution No. ff-423 awarding the sale of bonds and establishing a Redemption Fund. 4. Resolution No. ffiaqp accepting certain right-of-wa! interests necessary for the Palomar Airport Road Wesl Assessment District project. Easement and grant deec documents with accompanying legal descriptions and acquisitioi plats on file in the office of the City Clerk. 5. Resolution No. ---- ffes@ awarding a contract for th construction of the Palomar Airport Road West Assessmen District, Project No. 3151. ,. - + - LOCATION MAP I -*.-:' .. .. .. .. .. .. .. .. .. \\ LEGEND . . . . . . . . . ASSESSMENT 0 1 STRICT BOUNDARY VICINITY MAP N. T. S. PROJECT NAME PALOMAR AIRPORT ROAD vpRoJ= No. EXHIBl ASSESSMENT DlSTRl CT 31 51 I A .. 1 2 3 * !5 6 ' 8 9 lo I' 12 l3 '4 l5 l6 17 l8 I' 20 21 22 23 2! 25 26 27 28 0 RESOLUTION NO. 88-222 w RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING ISSUANCE OF BONDS, APPROVING BOND INDENTURE AND OFFICIA: STATEMENT FOR A SPECIAL ASSESSMENT DISTRICT WHEREAS, the CITY COUNCIL of the CITY OF CARLSBAD CALIFORNIA, is conducting proceedings for the construction o certain public improvements in a special assessment distric pursuant to the terms and provisions of the IIMunicipa Improvement Act of 1913", being Division 12 of the Streets an Highways Code of the State of California, said specia assessment district known and designated as ASSESSMENT DISTRIC' NO. 86-1 (PALOMAR AIRPORT ROAD) (hereinafter referred to as th "Assessment District'') i and, WHEREAS, this legislative body has previously declared i its Resolution of Intention to issue bonds to finance sai improvements, said bonds to issue pursuant to the terms an provisions of the llImprovement Bond Act of 1915", being Divisio 10 of said Code; and, WHEREAS, at this time this legislative body is desirou to set forth all formal terms and conditions relating to th 1 authorization, issuance and administration of said bonds: and, WHEREAS, there has been presented, considered and read for approval a bond indenture setting forth formal terms an conditions relating to the issuance and. sale of bonds; and, ;// /// /// /// .. . ., = 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 w 0 WHEREAS, there has also been presented an Officia Statement containing information including but not limited ti the Assessment District and the type of bonds, including term and conditions thereof. NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. That the above recitals are true and correct SECTION 2. That this legislative body does authorize th issuance of bonds pursuant to the terms and provisions of th l11mprovement Bond Act of 1915!', being Division 10 of the Street and Highways Code of the State of California, and does express1 approve the BOND INDENTURE substantially in the form presente herein, subject to modifications as necessary and as approved b the City Manager. A copy of said BOND INDENTURE shall be keF on file with the transcript of these proceedings and open fc public inspection, with final approval conclusively evidenced k the City Managerls execution. Said bonds shall be issued ar subject to the terms and conditions in said approved Bor Indenture. 1 /// /// /// /// /// /// /// /// /// /// /// . 1 2 3 4 5 6 7 8 9 10 11 12 13 l4 15 16 17 18 19 20 21 22 23 24 25 26 27 28 w W SECTION 3. That the Official Statement, as prepared an( submitted, is hereby approved and adopted, and the execution an( distribution is hereby authorized. A copy of said Officia Statement shall be kept on file with the transcript of thesc proceedings and remain open for public inspection. PASSED, APPROVED AND ADOPTED by the City Council of th City of Carlsbad at its regular meeting held on the 19th da of July , 1988, by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Pettine, and Mamaux NOES: None ABSENT: None ABSTAIN: Council Member L ATTEST: .,$e RAUT$k&kf%& Clerk 2- \ (SEAL) I DRAFI w 0 I ,. '. .I BOND INDENTURE This Bond Indenture (the "Indenture") dated as of , 1988, entered into and approved by the CITY OF CARLSBAD (the "Issuer"), a municipal corporation, to establish the terms and conditions pertaining to the issuance of bonds in a special assessment district known and designated as ASSESSMENT DISTRICT NO. 86-1 (PALOMAR AIRPORT ROAD) (the "Assessment District"). SECTION 1. Issuance, Designation and Amount. Pursuant to the provisions of the "Improvement Bond Act of 1915" (the "Act"), being Division 10 of the Streets and Highways Code of the State of California, the Issuer does hereby authorize the issuance of bonds to represent unpaid assessments within the Assessment District in principal amount not to exceed $4,852,999.00 and designated as the City of Carlsbad, Assessment District No. 86-1 (Palomar Airport Road) Limited Obligation Improvement Bonds (the "Bonds" ) . SECTION 2. Unpaid Assessments. The Treasurer shall, immediately upon the comple- tion of the 30-day cash collection period, determine the assessments which are unpaid and the aggregate amount thereof as authorized by Section 8621 of the Streets and Highways Code of the State of California. SECTION 3. Term of Bonds. Bonds to represent the unpaid assessments, and bear interest at a rate not to exceed the current legal maximum rate of 12% per annum, will be issued in the manner provided in the "Improvement Bond Act of 1915", being Division 10 of the Streets and Highways Code of the State of California, the last installment of which Bonds shall mature a maximum of and not to exceed FOURTEEN (14) years from the second day of September next succeeding twelve (12) months from their date. The provisions of Part 11.1 of said Act, providing an alternative procedure for the advance payment of assessments and the calling of Bonds shall apply. SECTION 4. Registered Bonds. Said Bonds shall be issuable only as fully regis- tered Bonds in the denomination of $5,000, or any integral multiple thereof, except for one bond maturing in .the first year of maturity, which shall include the amount by which the total issue exceeds the maximum integral multiple of $5,000 contained therein. SECTION 5. Date of Bonds. All of said Bonds shall be dated the 17th day of August, 1988, and interest shall accrue from that date. SECTION 6. Maturity and Denomination. The Bonds shall be issued in serial forn with annual maturities on September 2nd of every year succeeding twelve (12) months after their date, until the whole is paid. The amount maturing each year shall be such as to result in approximately equal annual debt service during the term of the issue as reflected by the interest rate and/or rates and principal amounts maturing in the respec- tive years of maturity, and the Treasurer or designated Registrar # m . .- .,. shall , immediately upon completion of the cash collection period, prescribe the denominations of the Bonds, which shall be in convenient amounts, not necessarily equal, and shall further provide for their issuance and delivery. SECTION 7. Interest. Each Bond shall be of a single maturity and shall bear interest at the rate as set forth in the accepted bid proposal for saic Bonds from the interest payment date next preceding the date on whick it authenticated and registered, unless said Bond is authenticated anc registered as of an interest payment date, in which case it shall bear interest from said interest payment date, or unless said Bond is authen- ticated and registered prior to the first interest payment date, ir which case it shall bear interest from its date, until payment of its principal sum has been discharged. SECTION 8. Place of Payment. The principal on the Bonds shall be payable ir lawful money of the United States of America upon surrender of the Bonc at the office of the Treasurer, or such paying agent as may be desig- nated by Resolution of the Issuer. Interest on said Bonds shall be paid by check or draft to the regis- tered owner thereof at his address as it appears on the books of regis- tration, or at such address as may have been filed with the Treasure2 for that purpose, as of the 15th day immediately preceding saic interest payment date. SECTION 9. Redemption. This Bond, or a portion thereof if issued in a denomina- tion greater than $5,000, shall be subject to redemption and payment ir advance of maturity in increments of $5,000 as provided in Section 876t of the Streets and Highways Code, on the 2nd day of March or Septembei in any year, by giving the notice provided in said law to the regis- tered owner thereof at his address as it appears on the books of regis- tration and by paying principal of and accrued interest on suci redeemed amount, together with a premium equal to three percent (3%) ol the redeemed principal amount. If less than the entire Bond it redeemed, the unredeemed portion shall be reissued to the registerec owner thereof. SECTION 10. Transfer of Registered Bonds. Any fully registered Bond may, in accor- dance with its terms, be transferred upon the books of registratioi required to be kept pursuant to the provisions of Section 11 by thc owner in whose name it is registered, or by his duly authorize( attorney or legal representative, upon surrender of such fully regis. tered Bond €or registration of such transfer, accompanied by deliver] of a written instrument or transfer in a form approved by the Treasure] and by the owner of said Bonds, duly executed. The Treasurer shall require the payment by the Bondholder requestin such transfer of any tax or other governmental charge required to bc paid with respect to such transfer and such charges as provided for ii the system of registration for registered debt obligations. * w m .. . . .I No transfer of fully registered Bonds shall be required to be made between the fifteenth (15th) day of the month next preceding each interest payment date, nor during the fifteen (15) days preceding the selection of any Bonds for redemption prior to the maturity thereof, nor with respect to any Bond which has been selected for redemption prior to the maturity thereof. SECTION 11. Exchange of Registered Bonds. Fully registered Bonds may be exchanged at the office of the Treasurer, or designated transfer agent/registrar, for a like aggregate principal amount of Bonds of the same series, interest rate and maturity, subject to the terms and conditions provided in the system of registration for registered debt obligations, including the payment of certain charges, if any, upon surrender and cancellation of this Bond. Upon such transfer and exchange, a new registered Bond or Bonds of any authorized denomination or denomina- tions of the same maturity for the same aggregate principal amount will be issued to the transferee in exchange therefor. SECTION 12. Books of Registration. There shall be kept by the Treasurer sufficient books for the registration and transfer of the Bonds and, upon presenta- t ion for such purpose , the Treasurer shall , under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on said register, Bonds as hereinbefore provided. SECTION 13. Execution of Bonds. The Bonds shall be executed in facsimile by the Treasurer and by the City Clerk, and the corporate seal shall be imprinted in facsimile on the Bonds. The Bonds shall then be delivered to the transfer agent and registrar, for authentication and registra- tion. In case an officer who shall have signed or attested to any of the Bonds by facsimile or otherwise shall cease to be such officer before the authentication, delivery and issuance of the Bonds, such Bonds nevertheless may be authenticated, delivered and issued, and upon such authentication, delivery and issue, shall be as binding as though those who signed and attested the same had remained in office. SECTION 14. Authentication. Only such of the Bonds as shall bear thereon a certifi- cate of authentication substantially in the form below, manually executed by the transfer agent and registrar, shall be valid or obliga- tory for any purpose or entitled to the benefits of this Indenture, and such certificate of the transfer agent and registrar shall be conclu- sive evidence that the Bonds so authenticated have been duly executed, authenticated and delivered hereunder, and are entitled to the benefits of this Indenture. FORM OF CERTIFICATE OF AUTHENTICATION AND REGISTRATION This bond has been authenticated and registered on as Transfer Agent and Registrar By : I. 0 - 1- _. SECTION 15. Negotiability, Registration and Transfer of Bonds. The transfer of any Bond may be registered only upon such books of registration upon surrender thereof to the transfer agent and registrar, together with an assignment duly executed by the owner or his attorney or legal represen- tative, in satisfactory form. Upon any such registration of transfer, a new Bond or Bonds shall be authenticated and delivered in exchange for such Bond, in the name of the transferee, of any denomination or denominations authorized by this Indenture , and in an aggregate principal amount equal to the principal amount of such Bond or principal amount of such Bond or Bonds so surrendered. In all cases in which Bonds shall be exchanged or transferred, the transfer agent and registrar shall authenticate at the earliest practical time, Bonds in accordance with the provisions of this Indenture. All Bonds surren- dered in such exchange or registration transfer shall forthwith be cancelled. The Issuer may make a charge for every such exchange or registration of transfer of Bonds sufficient to reimburse it for any tax or other governmental charge required to be paid with respect tc such exchange or registration of transfer. The transfer agent and registrar shall not be required to make such exchange or registration of transfer of Bonds during the fifteen (15) days immediately preceding any March 2nd or September 2nd. SECTION 16. Ownership of Bonds. The person in whose name any Bond shall be regis- tered shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of or on account of the principal and redemp- tion premium, if any, of any such Bond, and the interest on any such Bond, shall be made only to or upon the order of -the registered owner thereof or his legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond, including the redemption premium, if any, and interest thereon, to the extent of the sum or sums so paid. SECTION 17. Mutilated, Destroyed, Stolen or Lost Bonds. In case any Bond secured hereby shall become mutilated or be destroyed, stolen or lost, the Issuer shall cause to be executed and authenticated a new Bond of like date and tenor in exchange and substitution for and upon the cancella- tion of such mutilated Bond or in lieu of and in substitution for suck Bond mutilated, destroyed, stolen or lost, upon the owner's paying thc reasonable expenses and charges in connection therewith, and, in the case of a Bond destroyed, stolen or lost, his filing with the Payinc Agent and Issuer of evidence satisfactory to them that such Bond waE destroyed, stolen or lost, and of his ownership thereof, and furnishin< the Paying Agent and Issuer with indemnity satisfactory to them. SECTION 18. Cancellation of Bonds. All Bonds paid or redeemed, either at or before maturity, shall be cancelled upon the payment or redemption of suck Bonds, and shall be delivered to the transfer agent and registrar wher such payment or redemption is made. All Bonds cancelled under any of the provisions of this Indenture shall be destroyed by the transfer agent and registrar, which shall execute a certificate in duplicate describing the Bonds so destroyed, and shall retain said executec certificate in its permanent files for the issue. ?. I. 0 m ,. SECTION 19. Creation of Funds. The Treasurer is hereby authorized and directed to establish the following Funds €or purposes of making payment €or the costs and expenses for the works of improvement and payment of principal and interest on the Bonds. The Funds to be created are designated as follows: IMPROVEMENT FUND: The proceeds from the sale of the Bonds, after deposit of required amounts in the Reserve Fund and Redemption Fund, shall be placed in the Fund hereby created, pursuant to Sections 10602 and 10424 of the California Streets and Highways Code, as amended, which shall be called the "Improvement Fund", and the monies in said Fund shall be used only for the purposes authorized in said assessment proceedings, and specifically to pay for the costs and expenses of the construction or acquisition of the authorized public capital improve- ments, together with all incidental expenses. Any surplus in the Improvement Fund after completion of the improvements shall remain in the Improvement Fund for a period of not less than two (2) years from the receipt of Bond proceeds as provided in Section 10427.1 of the California Streets and Highways Code, and thereafter shall be utilized or distributed as determined by the Issuer. REDEMPTION FUND: The Treasurer is hereby authorized and directed tc keep a Redemption Fund designated by the name of the proceedings, intc which he shall place accrued interest, if any, on the Bonds from the date of the Bonds to the date of delivery to the initial purchaser thereof, capitalized interest as shown in the final Engineer's"Report", and all sums received for the collection of the assessments and the interest thereon, together with all penalties, if applicable. Principal of and interest on said Bonds shall be paid to the registerec owner out of the Redemption Fund created pursuant to Section 8671 of the California Streets and Highways Code. Accrued interest paid by the purchaser of the Bonds, if any, shall be deposited in the Redemptior Fund. In all respects not recited herein, said Bonds shall be governec by the provisions of the "Improvement Bond Act of 1915", Division 10 of the California Streets and Highways Code, as amended. Under no circum- stances shall the Bonds or interest thereon be paid out of any other fund except as provided by law. RESERVE FUND: Pursuant to Part 16 of Division 10 of the California Streets and Highways Code, as amended, there shall be created a special reserve fund for the Bonds to be designated by the name of the Assess- ment District and specified as the special "Reserve Fund". The Reservc Fund shall be funded as follows: An amount equal to ten percent (10%) of the original Bond proceeds shall be deposited in the Reserve Func out of said Bond proceeds. Monies in the Reserve Fund shall be applied as follows: A. Amounts in said Reserve Fund shall be transferred to the Redemptior Fund for the Bonds if, as a result of delinquencies in the payment of assessments, there are insufficient monies in said Redemptior Fund to pay principal of and interest on the Bonds. Amounts sc w * .. L transferred shall be repaid to the Reserve Fund from proceeds from the redemption or foreclosure of property with respect to which an assessment is unpaid and from payments of the delinquent assessments; B. On July 15 of each year the amount of interest earned to the preceding June 30 by the investment of monies in the Reserve Fund in permitted investments, and not previously transferred, shall be transferred from the Reserve Fund to the Redemption Fund, in the manner provided in Part 16 of said Division 10, and shall be expended for the advance retirement of Bonds within thirteen (13) months of such transfer; provided, however, that earnings exceeding the "yield on the Bonds, as that term is defined in the Internal Revenue Code of 1986 (the "Code") and the regulations promulgated pursuant thereto, shall be transferred and held in trust pursuant to instructions from Bond Counsel for rebate to the United States; C. The amount of the annual Reserve Fund disbursement of earned interest shall be credited toward installments of unpaid assess- ments each year during which any part of the Bonds remain outstand- ing. The Auditor's Record, prepared pursuant to Section 8682 of the Streets and Highways Code, shall reflect credits against each of the unpaid assessments in the manner provided in Section 10427.1 of said Streets and Highways Code, in amounts equal to each parcel's proportionate share of the annual reserve fund disbursement. No portion of the annual Reserve Fund disbursement shall be transferred in any year in excess of the amount which would cause the Reserve Fund to fall below the original amount of the Reserve Fund, minus adjustments to reflect the discharge of assessments prior to maturity made to that point. D. Whenever monies in the Reserve Fund are sufficient to retire all of the Bonds outstanding, plus accrued interest thereon, such money shall be transferred to the Redemption Fund for the Bonds and collection of the remaining unpaid assessments shall cease. E. In the event that any annual Reserve Fund disbursement was not fully made in any year because to have done so would have caused the Reserve Fund to fall below the minimum amount for that year, the Treasurer may thereafter transfer and credit any amounts ir excess of the minimum amount toward the assessment installments due in subsequent years. In the event assessments are paid in cash in advance of their final maturity date, the Treasurer is authorized to reduce the minimum amount of the Reserve Fund and increase the annual Reserve Fund disbursements in the proportion in which the assessments paid in cash bears to the total original unpaid assessments. SECTION 20. No Issuer Liability. It is hereby further determined and declared that the Issuer will not obligate itself to advance any available funds fron its Treasury to cure any deficiency or delinquency which may occur ir - w m . .- I ., . the Bond Redemption Fund by failure of property owners to pay annual special assessments. This determination shall be clearly set forth and stated in the title of the Bonds to be issued pursuant to these proceed- ings as authorized and required by Section 8769 of the Streets and Highways Code of the State of California. SECTION 21. Covenant to Foreclose. The Issuer hereby covenants that upon default of any assessment payment due, it will cause Superior Court foreclosure proceedings to be brought within one hundred fifty (150) days of such default and thereafter diligently prosecute to completion such proceed- ings. Such foreclosure proceedings may be deferred if funds are advanced to the special Reserve Fund to keep said Fund continually at the level set forth in the Section entitled "Reserve Fund" set forth hereinabove. SECTION 22. Covenant to Maintain Tax-Exempt Status. The Issuer covenants that it will not make any use of the proceeds of the Bonds issued hereunder which would cause the Bonds to become "arbitrage bonds" subject to Federal income taxation pursuant to the provisions of Section 148(a) of the Code, or to become "Federally-guaranteed obligations" pursuant to the provisions of Section 149(b) of the Code, or to become "private activity bonds" pursuant to the provisions of Section 141(a) of the Code. To that end, the Issuer will comply with all applicable require- ments of the Code and all regulations of the United States Department of Treasury issued thereunder to the extent such requirements are, at the time, applicable and in effect. Additionally, the Issuer agrees to implement and follow each and every recommendation provided by Bond Counsel and deemed to be necessary to be undertaken by the Issuer to ensure compliance with all applicable provisions of the Code in order to preserve the exemption of interest on the Bonds from Federal income taxat ion. SECTION 23. Covenant Regarding Arbitrage. The Issuer shall not take or permit nor suffer to be taken any action with respect to the gross proceeds of the Bonds as such term is defined under the Code which, if such action had been reasonably expected to have been taken, or had been deliberately and intentionally taken, on the date of issuance of the Bonds, would have caused the Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code and the regulations promulgated thereunder. SECTION 24. Order to Print and Authenticate Bonds. The Treasurer is hereby instructed to cause Bonds, as set forth above, to be printed, and to proceed to cause said Bonds to be authenticated and delivered to an authorized representative of the purchaser, upon payment of the purchase price as set forth in the accepted proposal for the sale of Bonds. SECTION 25. Arbitrage Certificate. On the basis of the facts, estimates and circum- stances now in existence and in existence on the date of issue of the Bonds, as determined by the Treasurer, said Treasurer is hereby autho- rized to certify that it is not expected that the proceeds of the issue will be used in a manner that would cause such obligations to be arbitrage Bonds. Such certification shall be delivered to the purchaser together with the Bonds. w m ~ II b SECTION 26. Designation of Transfer Agent, Paying Agent and Registrar. The is hereby designated transfer agent , paying agent and registrar with respect to these proceedings and the Bonds to be issued. IN WITNESS WHEREOF, the Issuer has executed this Bond Indenture effective the date first written hereinabove. CITY MANAGER CITY OF CARLSBAD STATE OF CALIFORNIA ATTEST : CITY CLERK CITY OF CARLSBAD STATE OF CALIFORNIA ,. 1 I. " 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 e 0 RESOLUTION NO. 88-223 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, MAKING AWARD FOR SALE OF BONDS, AND PROVIDING FOR THE ESTABLISHMENT OF A REDEMPTION FUND WHEREAS, the CITY COUNCIL of the CITY OF CARLSBAI CALIFORNIA, has heretofore instituted and conducted proceedinc under the terms and provisions of the IIMunicipal Improvement A( of 1913", being Division 12 of the Streets and Highways Code ( the State of California, for the construction of certain publ. works of improvement, together with appurtenances a1 appurtenant work, in a special assessment district known ai designated as ASSESSMENT DISTRICT NO. 86-1 (PALOMAR AIRPOI ROAD) (hereinafter referred to as the IIAssessment District" and, WHEREAS, in the Resolution of Intention it was determinl and declared that bonds should issue under the provisions of tl glImprovernent Bond Act of 191519, being Division 10 of the Stree. and Highways Code of the State of California; and, WHEREAS, there has now been received, in proper form, purchase agreement (hereinafter the llproposalll) for the purcha of said bonds to issue under said proceedings, which considered to best serve the interests of owners of la included within the Assessment District and should be accepted NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. That the above recitals are all true a I correct * SECTION 2. That the proposal received from SMITH BAFtNE HARRIS UPHAM & CO., INC. for the purchase of improvement bon * 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 e 0 representing unpaid assessments in said Assessment District 1 hereby accepted and approved. SECTION 3. That said sale is subject to all the ten and conditions as set forth in the Resolution of Issuance and : the accepted proposal. SECTION 4. That the Mayor and City Clerk are here1 authorized to execute the proposal and a coy of said propos: shall be kept on file with the transcript of these proceedings SECTION 5. That the Treasurer be, and hereby i! directed to have the bonds printed immediately upon tl expiration of the cash collection period, and said Treasurc shall then have said bonds signed and delivered upon receipt ( the amount of monies due pursuant to said proposal and upon t: performance of all the conditions as set forth in the proposal SECTION 6. That the interest rate or rates on said boni be, and the same hereby is fixed at the rate or rates as s forth in said accepted proposal. SECTION 7. That the Treasurer is hereby authorized a directed to keep a redemption fund designated by the name the proceedings, into which he shall place all sums received f the collection of the assessments and the interest thereo together with all penalties, if applicable, thereon and fr which he shall disburse such funds to the registered owne Under no circumstances shall the said bonds or interest there be paid out of any other fund except as provided by law. Sa fund shall be known as the REDEMPTION FUND, and shall designated by the name of this Assessment District. I /// __ -0 1 2 3 4 5 6 7 a 9 10 11 l2 13 14 15 16 13 18 19 20 21 22 23 24 25 , ,' 2: 27 28 e e SECTION 8. That the Treasurer shall transfer monies a necessary from the SPECIAL RESERVE FUND in the manner and fox as authorized by law. PASSED, APPROVED AND ADOPTED by the City Council of tk: City of Carlsbad at its regular meeting held on the 19th da of July , 1988, by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Pettine, and Mamaux NOES: None ABSENT: None ABSTAIN: Council Member ATTEST: ALETHA L. RAUTENKRANZ, City Clerk (SEAL) I e I. r BOND PURCHASE CONTRACT The Honorable Members of the City Council of the City of Carlsbad 1200 Elm Avenue Carlsbad, CA 92008 Re: Offer to Purchase Limited Obligation Improvement Bonds City of Carlsbad Assessment District No. 86-1 (Palomar Airport Road) Members of the Council: Pursuant to discussions with City staff and the City's financial advisor and bond counsel, and our investigation and analysis of the captioned bond issue, Smith Barney, Harris Upham & Co., Inc. (the Underwriter) hereby offers to purchase all of said Bonds subject to the following conditions: 1. The Bonds shall be issued pursuant to the Municipal Improvement Act of 1913 and the Improvement Bond Act of 1915 (the "Bond Law"). The Bonds shall be in the aggregate principal amount of $4,720,471.00.* The Bonds shall be issued in denominations of $5,000, or in integral multiples thereof as may be requested by the Underwriter, except one bond in an amount to be determined. All Bonds shall be issued in registered form in accordance with instructions to be determined by the Underwriter prior to the Closing Date. 2. 3. 4. 5. The Bonds shall be dated August 17, 1988 and, unless otherwise approved by us, shall be delivered on or about 1O:OO a.m. California time on or about August 18, 1988 and in no event later than 1O:OO a.m. California time August 31, 1988 (The delivery date is herein referred to as "Closing Date," and the time of delivery is herein referred to as the llClosing.ll). The Bonds shall be made available to the Underwriter not later than one (1) business day before the Closing Date for purposes of inspection and packaging. * Preliminary, subject to change. T8/REN:07:12:88 I .- e a .. ._ 7 6. The Bonds shall mature in each of the years and in the amounts and at the rates of interest set forth on the attached maturity schedule marked Exhibit A. reserve fund equal to 10% of the principal amount of the Bonds. the Bond Indenture for the Bonds (the "Indenture"), as well as pursuant to applicable federal laws and regulations. The reserve fund balance shall be shown as a separately- stated item in the City's annual financial report. delinquent assessments within 150 days after any delinquency. 9. The City shall covenant in the Indenture that in the event any court of competent jurisdiction shall declare the assessment or lien against any parcel or properties within the Assessment District invalid, the City shall undertake every reasonable action within the law to reassess such parcels and perfect a valid lien against them. meeting on July 19, 1988. 7. The City shall establish from the proceeds of the Bonds a The reserve fund shall be administered pursuant to 8. The City shall covenant to commence judicial foreclosure of 10. The City shall award the sale of the Bonds to us at their 11. The purchase price shall be 98.3% of par (a discount of 12. The City will deliver or cause to be delivered to the .1.7%), plus accrued interest, if applicable. Underwriter copies of its Official Statement with respect to the Bonds, substantially in the form of the Preliminary Official Statement currently on file with the Underwriter, with only such changes therein as have been accepted by the Underwriter and signed on behalf of the City by the City Manager or other authorized officer of the City. The City hereby ratifies, confirms and approves the use of distribution by the Underwriter prior to the date hereof of the Preliminary Official Statement, and hereby authorizes the Underwriter to use and distribute the Official Statement in connection with the offer and sale of the Bonds. 13. The purchase price of the Bonds shall be paid in cash, Federal Reserve Bank funds, or other funds immediately available to the City made payable to the City upon delivery to the Underwriter of the Bonds accompanied by: (a) The unqualified approving legal opinion of Brown and Diven, Rancho Santa Fe, California, Bond Counsel, in substantially the form attached hereto as Exhibit B. The legal opinion shall be printed on the Bonds at no charge to us. T8/REN:07:12:88 -2- a. a e .. .. + (b) The supplemental opinion of Bond Counsel in form and substance satisfactory to the Underwriter, dated as of the Closing Date and addressed to the City and the Underwriter, to the effect that: (1) Based upon their participation as Bond Counsel, the information in the Official Statement on the cover page relating to tax exemption, description of the Bonds and security for the Bonds and statements under the captions "Preliminary Statementv1 , "The Bonds1' , "Bondowners I Risks1' , I'Legal Opinion1' and "Tax Exemption1' are, to the extent they relate to the Bonds, the Indenture, the Bond Law and the Internal Revenue Code of 1986, as amended, and the transactions contemplated by the Official Statement, true and correct in all material respects and do not omit to state a material fact necessary to make the statements contained therein not misleading (except such counsel need express no view as to financial statements and the statistical data contained in the Official Statement). (2) The Indenture and all other resolutions related to the proceedings for Assessment District No. 86-1 have been duly adopted by the City and this Bond Purchase Contract has been duly authorized, executed and delivered by the respective parties thereto. (3) The Bonds are exempt from registration pursuant to the Securities Act of 1933, as amended, and the Resolution is exempt from qualification as an indenture pursuant to the Trust Indenture Act of 1939, as amended. (c) The opinion of the City Attorney, dated as of the Closing Date, in form and substance satisfactory to the Underwriter and addressed to the Underwriter, to the effect that: (1) The City is a municipal corporation duly organized and validly existing under the laws of the State of California. (2) The statements in the Official Statement under the captions "The Bondst1, "The Improvement Project" , "The Districtt1 and "No Litigation" are true and correct in all material respects. that would lead such counsel to believe that the Official Statement, as of the Closing Date, (3) Nothing has come to such counsel's attention T8/REN:07:12:88 -3- I, e .. .. * contains an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading (except such counsel need express no view as to financial statements and the statistical data contained in the Official Statement). (4) The Indenture and other resolutions of the City relating to Assessment District No. 86-1 and the issuance of the Bonds were duly adopted at meetings of the City Council which were called and held pursuant to law and with all public notice required by law and at which a quorum was present and acting throughout; such resolutions are in full force and effect and have not been amended, modified or rescinded since the respective dates of their adoption. (5) After reasonable investigation, there is no action, suit, proceeding, inquiry or investigation at law or in equity before or by any court, regulatory agency, public board or body, pending or, to the best of such counsel's knowledge, threatened against or affecting the existence of the City or the titles of its- officers to their respective offices or seeking to restrain or to enjoin the sale or delivery of the Bonds, the application of the proceeds thereof in accordance with the Indenture or the collection or application of any assessment installments or interest thereon provided for the payment of the Bonds, or in any way contesting or affecting the validity or enforceability of the Bonds, the Indenture or any action of the City contemplated by any of said documents. (d) Such additional legal opinions, certificates, proceedings, instruments and other documents as the Underwriter may reasonably request to evidence compliance by the City with legal requirements, the truth and accuracy, as of the Closing Date, of the representations of the City contained herein, and the due performance or satisfaction by the City at or prior to such time of all agreements then to be performed and all conditions then to be satisfied by the City. 14. The obligation of the Underwriter to accept delivery of and pay for the Bonds on the Closing Date shall be subject, at the option of Underwriter, to the following additional conditions: T8/REN:07:12:88 -4- 0 0 *. .. a (a) At the Closing Date, the Indenture and any other applicable agreements shall be in full force and effect, and shall not have been amended, modified or supplemented except as may have been agreed in writing by Underwriter, and there shall have been taken in connection therewith, with the issuance of the Bonds and with the transactions contemplated thereby and by this Bond Purchase contract, all such actions as, in the opinion of Bond Counsel for the City, shall be necessary and appropriate. market price or marketability of the Bonds shall not have been materially adversely affected, in the judgment of Underwriter (evidenced by a written notice to the City terminating the obligation of Underwriter to accept delivery of and pay for the Bonds) by reason of any of the following: (1) Legislation enacted (or resolution passed) by (b) Between the date hereof and the Closing Date, the the Congress of the United States of America or a decision rendered by a court established under Article I11 of the Constitution of the United States of America, or an order, ruling, regulation (final, temporary or proposed), press release or other form of notice issued or made by or on behalf of the Treasury Department of the Internal Revenue Service of the United States of America, with the purpose or effect, directly or indirectly, of imposing federal income taxation upon the interest as would be received by the owners of the Bonds or the owners of municipal obligations similar to the Bonds. (2) Legislation enacted (or resolution passed) by the Congress of the United States of America, or an order, decree or injunction issued by any court of competent jurisdiction, or an order, ruling, regulation (final, temporary or proposed), press release or other form or notice issued or made by or on behalf of the Securities and Exchange Commission or any other governmental agency having obligations of the general character of the Bonds, or the Bonds, including any or all underlying arrangements, are not exempt from registration under or other requirements of the Securities Act of 1933, as amended, or that the Resolution is not exempt from qualification under or other requirements of the Trust Indenture Act of 1939, as amended, or that the issuance, offering or sale of obligations of the general character of the T8/REN:07:12:88 -5- I ,- . a a * Bonds, or of the Bonds, including any or all underwriting arrangements, as contemplated hereby or by the Official Statement or otherwise is or would be in violation of the federal securities laws as amended and then in effect. The withdrawal or downgrading of any rating of any securities of the City by a national municipal bond rating agency. constitution or action by any Federal or California court, legislative body, regulatory body or other authority materially adversely affecting the tax status of the City, its property, income, securities (or interest thereon), the validity or enforceability of the assessments or the ability of the City to construct the improvements as contemplated by the Resolution and the Official Statement. (3) (4) Any amendment to the Federal or California (5) Any event occurring, or information becoming known which, in the judgment of Underwriter makes untrue or misleading in any material respect any statement or information contained in the Official Statement concerning the Bonds, the City, the Assessment District, the Project, the landowners, developers, or the properties . assessed. (6) The declaration of a general banking moratorium by Federal, New York or California authorities, or the general suspension of trading on any national securities exchange; (7) The imposition by the New York Stock Exchange or other national securities exchange, or any governmental authority, of any material restrictions not now in force with respect to the Bonds or obligations of the general character of the Bonds or securities generally, or the material increase of any such restrictions now in force, including those relating to the extension of credit by, or the charge to the net capital requirements of, underwriters. (8) An order, decree, or injunction of any court of competent jurisdiction, or order, ruling, regulation or official statement by the Securities and Exchange Commission, or any other governmental agency having jurisdiction of the subject matter, issued or made to the effect that the issuance, offering or sale of T8/REN:07:12:88 -6- ' .1 a a -. '. L obligations of the general character of the I Bonds, or the issuance, offering or sale of the Bonds, including any or all underlying obligations, as contemplated hereby or by the Official Statement, is or would be in violation of the Federal Securities laws as amended and then in effect. 15. The Underwriter has delivered to the City a good faith check in the form of a bank check in the amount of $25,000.00. In the event the offer made hereby is not accepted, such check shall be immediately returned to the Underwriter. If the offer made hereby is accepted, the City agrees to hold the check uncashed until the Closing as security for the performance by the Underwriter of its obligation to accept and pay for the Bonds at the Closing and, in the event of its compliance with such obligation, such check shall be returned uncashed to the Underwriter at the Closing. In the event of the failure by the City to deliver the bonds at the Closing, or the failure by the City to satisfy the conditions of the obligations of the Underwriter contained herein, or if the obligations of the Underwriter shall be terminated for any reason permitted by this Bond Purchase Contract, such check shall be immediately returned to the Underwriter and such return shall constitute a full release and discharge of all claims by the Underwriter arising out of the transactions contemplated hereby. In the event that the Underwriter fails (other than for a reason permitted hereunder) to accept and pay for the Bonds at the Closing, such check shall be retained by the City (as and for full) liquidated damages for such failure and for any defaults hereunder on the part of the Underwriter and such retention shall constitute a full release and discharge of all claims by the City against the Underwriter arising out of the transactions contemplated hereby. 16. This offer is conditioned upon the successful consummation of the assessment district proceedings and the performance of the conditions specified herein and should said proceedings or conditions for any reason fail to be successfully consummated, there shall be no obligation on the part of the City or the Underwriter hereunder. 17. Expenses and costs of the City incident to the performance of its obligations in connection with the authorization, issuance and sale of the Bonds to the Underwriter, including fees and expenses of consultants, fees and expenses of the City's financial advisor (if any) and fees and expenses of bond counsel, counsel to the Underwriter and counsel for the City, shall be paid by the City. 18. Notices. Any notice or other communication to be given to the City under this Bond Purchase Contract may be given by T8/REN:07:12:88 -7- 6 .I . 0 e .. I. delivering the same in writing at the City's address set forth above and any such notice or other communications to be given to the Underwriter may be given by delivering the same in writing to Smith Barney, Harris Upham & Co., Inc., 401 B Street, Suite 2300, San Diego, California 92101, Attention: Public Finance Department. This Bond Purchase Contract is made solely for the benefit of the City, the Underwriter and any persons controlling the Underwriter and no other persons, partnership, association or corporation shall acquire or have any right hereunder or by virtue hereof. This Bond Purchase Contract shall be governed by the laws of the State of California. 19. 20. Counterparts. This Bond Purchase Contract may be signed in two or more counterparts; all such counterparts, when signed by all parties, shall constitute but one single agreement. Respectfully submitted, SMITH BARNEY Agreed To And Accepted: f2.L 4. & T8/REN:07:12:88 -8- . 0 0 %4,720,171 Patemat Airport Raad, Asseesment District Uhr 86-1 Reviccd Dated and Delivery Detes DEET SERVICE SCHEDULE I. *. P=C=====t==I==="Clr= *===J==¶t==*'=='le=r¶ OATB PR l ClC 1 PAL COUPON INTEREST PERIM) TOTAL FJSCAL TOTAL ......-. .............. ....--.--- ----------_--- -----__------- ----------.... 5/ 21139 185,186.17 185.V34.17 3/ 2/90 165.105.13 165,7U3.13 9/ 2/90 205,000.00 6.000000 165,703.13 370,703.13 536,406.25 31 2/91 15Y, 555.15 ISY, 553.13 9/ 2/91 215,OOO .OO 6.200000 159,553.13 37f1 , 553.13 534,106.25 91 2/89 190,471.00 5.5ooooo i7oI9~,t.oa 361.~12.08 546,598.24 51 2/92 i52,aaa.ii) iw,t18n.i~ 9/ 2/92 230,000.00 6.4OpOOO 152,888.13 382,888.13 535.776.25 3f 2/93 145,5?8.13 145,526.13 9/ 2/93 2L5,OOO.OO 6.600000 165,528.13 390,528.13 536,056.25 <z 3/ 2/9b 137,443.13 137,443.13 9/ 2/94 260,000.00 6.800000 137,443.13 397,443.13 534,884.25 3/ 2/95, 128,603.15 128,603.13 P/ 2/96 295,000.00 7.125000 118,803.13 L13,803.13 532,606.25 9/ 2/97 320,000.00 7.250000 108,293.?5 428,293.75 536,587.50 31 2/98 ,I' 96 I 6V3.75 96,693.75 9/ 2/98 340,000.00 7.375000 46,693.75 436,693.75 533,387.50 3/ 2/99 84,156.25 84,156.25 9/ 2/99 365,000.00 7.625000 8&,156.25 449,156.25 533,312.50 9/ 2/ 0 39~,000;00 7.t50000 70,240.63 465,240.63 535,LB1.25 91 21 f m,ooo.oo 7.a75000 54,934.38 479,93ft .38 534,868.75 9/ 2/ 2 /.60,000.00 8.000000 38, ZOO. 00 /iP8,200 .OO 536, LOU. 60 91 21 3 49s,oo0.00 a.oooooo 19,800.00 514,800 -00 534,600 .OO 91 2/95 2a0,000.00 7.oooooo 128.603.13 408,603.13 537,206.25 3/ 2/96 i I a, 803. I 3 I i8,.903.1~ 31 2/97 108,293.7s 108,293.75 ... 3/ 2/ 0 70,240.63 70,2W 63 31 2/ 1 54 , 934.38 54,934.38 3/ 2/ 9 38,200.00 3G,20OI 00 3/ 2/ 3 19,800 .OO 19,800.00 -__----------- _____________- -------_------ 4 , 720,1171.00 3,317,808.40 8,038,m. LO ACCRUE0 949.67 949.67 4,120,4Il.OU J ,m,n58. ni n, u~ I, JLV. 81 .. _____*__-_____ -----_-------- r------,-"---.-- DATED 8/17/88 WITH DELIVERY OF 8/18/88 BOND YEARS 43,092.157 AVERAGE COUPOH 7.559 AVERAGE LIFE 9.298 WIC % 7.559001 x USINU 1(10.0~00130a SMITH EARNEY - PUDLlC FINANCE DIVISION, SAN FRAUCISCO, CALIFORNIA 9410L RUNDATE: 01-18-7988 0 10:13:35 FILENAME: PARI KEY: 88 I. . * rn a. d EXHIBIT A $4,720,471 Aggregate Principal Amount CITY OF CARLSBAD IMPROVEMENT BONDS Assessment District No. 86-1 (Palomar Airport Road) Maturity Date Principal Interes 9/2/89 $190,471.00 5.500% 9/2/90 205,000.00 6.000% 9/2/91 215,000.00 6.200% 9/2/92 230,000.00 6.400% 9/2/93 245,000.00 6.600% 9/2/94 260,000.00 6.800% 9/2/95 , 280,000.00 7.000% 295,000.00 7.125% 9/2/96 9/2/97 320,000.00 7.250% Amount 0 Rate --I .. 9/2/98 340,000.00 7.375% 9/2/99 365,000.00 7.625% 9/2/00 395,000.00 7.750% 9/2/01 425,000.00 7.875% 9/2/02 460,000.00 8.000% 9/2/03 495,000.00 8.000% The following notation is for information purposes only apd is not a part of this bid. The net interest cost of the Bonds based on the above maturity schedule and a discount of 1.7 B is %. The average coupon rate is 7.559 %. I T8/REN:07:12:88 -0- ,. . Y 1 2 3 4 5 6 ' 8 9 lo 11 l2 l3 14 I.5 l6 17 18 I' 2o 21 22 23 24 25 26 27 28 @ 0 88-249 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ACCEPTING CERTAIN RIGHT-OF-WAY INTERESTS NECESSARY FOR THE PALOMAR AIRPORT ROAD WEST ASSESSMENT DISTRICT PROJECT WHEREAS, the City Council of the City of Carlsbad herel: finds it necessary, desirable and in the public interest 1 affect the construction of the Palomar Airport Road We: Assessment District: and, WHEREAS, certain right-of-way interests are necessary ' affect the construction of said project: and, WHEREAS, appropriate legal instruments with accompanyi legal descriptions and acquisition plats have been prepared affect said right-of-way interest; and, WHEREAS, the City Council of the City of Carlsba California, hereby finds it necessary, desirable and in t public interest to accept said right-of-way interests. NOW, THEREFORE, BE IT RESOLVED: 1. That the City Council of the City of Carlsba 1 California hereby accepts certain right-of-way interests generally described in easement and grant deed forms wi accompanying legal descriptions and acquisition plats on file the office of the City Clerk to affect the construction of sa project. 2. That the City Clerk is hereby authorized and direct to execute said right-of-way instruments and have same record in the office of the County Recorder, San Diego County. /// /// ,I r - 1 2 3 4 5 6 7 8 9 10 11 12 l3 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 e 0 3. That the City Clerk is further authorized ar directed to forward copies of said right-of-way instruments following their recordation to the Engineering Department fc their records and information. PASSED, APPROVED AND ADOPTED by the City Council of tk City of Carlsbad at its regular meeting held on the 19th dz of July , 1988, by the following vote, to wit: Council Members Lewis, Kulchin, Pettine and Mamaux AYES: NOES: None ABSENT: None ABSTAIN: Council Member ATTEST: d-ed&- R.nd: \ ALETHA L. RAUTENKRANZ, City ‘Clerk (SEAL) I ,. * * *. . '.. 1 2 3 4 5 t5 7 8 9 lo l1 l2 l3 l4 15 16 17 18 l9 2o 21 22 23 24 25 26 27 28 e 0 RESOLUTION NO. 88-250 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AWARDING THE CONTRACT FOR THE CONSTRUCTION OF CERTAIN PUBLIC WORKS OF IMPROVEMENT IN A SPECIAL ASSESSMENT DISTRICT WHEREAS, the CITY COUNCIL of the CITY OF CARLSBAI CALIFORNIA, did publicly open, examine and declare all sealc proposals or bids for doing the work and improvements describ in its Resolution of Intention, which Resolution and a IvRepor subsequently approved, are hereby expressly referred to for description of said work and improvements and for a particulars relative to the proceedings for the works I improvement, in a special assessment district known a designated as ASSESSMENT DISTRICT NO. 86-1 (PALOMAR AIRPO ROAD) (hereinafter referred to as the "Assessment District"). NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. That the above recitals are all true a correct. SECTION 2. That this legislative body hereby rejects a of said proposals or bids except that herein mentioned, and do hereby award the construction contract for doing said work a making improvements in the Assessment District to the lowe responsible bidder, to-wit : 1 M.L. CHILCOTE INCORPORATED at the prices named in the bid of said bidder on file with t transcript of these proceedings and open for public inspection SECTION 3. That this award of contract is here conditioned upon and made subject to the receipt of monies a proceeds from the issuance and sale of bonds. The Contract I ,I ,. J I- * + 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 e I) shall not commence construction or order equipment until he ha received a Notice to Proceed. Any progress payment to th Contractor for work completed may be delayed if monies have no been received from the sale of bonds. SECTION 4. That the works of improvement shall b constructed in the manner and form as set forth in the plans an specifications for these proceedings, as previously approved a a part of the tlReporttl, as required by law and specifically th ltMunicipal Improvement Act of 1913t1, being Division 12 of th Streets and Highways Code of the State of California. SECTION 5. That the Mayor and City Clerk are hereb authorized to execute the Agreement for the works of improvemen relating to said Assessment District, and a copy of sai Agreement shall be on file with the transcript of thes proceedings. /// /// /// I /// /// /// /// /// /// /// /// /// /// I , ., 4. rd + V T. a T 1 2 3 4 5 6 7 a 9 10 11 12 l3 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ? e SECTION 6. That all monies to pay for the costs and expenses of the above referenced Assessment District shall be paid from the funds as deposited in the Improvement Fund, including any interest earned thereon. PASSED, APPROVED AND ADOPTED by the City Council of the day City of Carlsbad at its regular meeting held on the of July , 1988, by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Pettine, and Mamaux NOES: None ABSENT: None 19th ABSTAIN: Council Member L ATTEST: ALETHA L. RAUTENWZ, City Plerk (SEAL) I