Resolution 10120ORU3INAI
RESOLUTION NO.
A RESOLUTION DETERMINING UNPAID ASSESSMENTS
AND PROVIDING FOR ISSUANCE OF BONDS
HARBOR BAY BUSINESS PARK
ASSESSMENT DISTRICT 83-1
RESOLVED, by the City Council of the City of Alameda, County of Alameda,
California, that
WHEREAS, on June 21, 1983, this Council passed and adopted Resolution of
Preliminary Determination and of Intention No. 10087 relating to the
acquisition and/or construction of public improvements under and pursuant to
the provisions of the Municipal Improvement Act of 1913, and therein provided
that serial bonds would be issued thereunder pursuant to the provisions of the
Improvement Bond Act of 1915, reference to said Resolution of Preliminary
Determination and of Intention hereby being expressly made for further
particulars;
WHEREAS, Finance Director of this City filed with the City Treasurer of
this City, on August 2, 1983, a list of all assessments which remained unpaid;
and
WHEREAS, this Council duly considered said list and determined that the
same was an accurate statement thereof;
NOW, THEREFORE, IT IS HEREBY DETERMINED AND ORDERED, as follows:
1. List of Unpaid Assessments. The assessments now remaining unpaid
are as shown on said list and on Exhibit "A" attached hereto and by this
reference made a part hereof; the aggregate amount thereof is $1,366,000; and
for a particular description of the lots or parcels of land bearing the
respective assessment numbers set forth in said list, reference is hereby made
to the assessment and to the diagram recorded in the office of the
Superintendent of Streets of this City after confirmation thereof by this
Council.
2. Issuance of Bonds. Bonds in the aggregate principal amount of
$1,366,000.00 shall be issued as hereinafter provided upon the security of
said unpaid assessments in accordance with the provisions of the Improvement
Bond Act of 1915 (Division 10 of the Streets and Highways Code) and under and
pursuant to the provisions of said Resolution of Preliminary Determination and
of Intention and the proceedings thereunder duly had and taken. The bonds
herein provided to be issued shall be known as "Improvement Bonds, City of
Alameda, Harbor Bay Business Park Assessment District 83 -1, Series 1983 -1 ",
and shall be dated August 18, 1983. Said bonds shall be issued in fully
registered form, be numbered and of the denominations and mature in the
amounts and on the dates set forth in Exhibit "B" attached hereto and by this
reference made a part hereof. The bonds shall contain a separate letter
prefix for each maturity, and within each maturity shall be numbered
consecutively from 1 upwards.
3. Payments of Bonds. Said bonds shall bear interest at the rate or
rates determined by this Council at the time of sale of said bonds (not to
exceed twelve percent (12 %) per annum, or such higher rate of interest as may
be authorized by applicable law at the time of sale of such bonds), payable
commencing on January 2, 1984, and semiannually thereafter on July 2 and
January 2 of each year to maturity.
Each bond shall bear interest from the interest payment date next
preceding the date on which it is authenticated, unless authenticated on a
2
January 2 or July 2, in which case it shall bear interest from such interest
payment date, or, unless authenticated prior to January 2, 1984, in which case
it shall -bear interest from its date; provided, however, that if at the time
of authentication interest is in default, such bond shall bear interest from
the date to which interest has been paid.
Each bond will continue to bear interest after maturity at the rate
stated therein, provided it is presented at maturity and payment thereof is
refused on the sole ground that there is not sufficient money in the
redemption fund with which to pay same; if it is not presented at maturity,
interest thereon will run only until maturity.
The principal and redemption premium on said bonds shall be payable in
lawful money of the United States of America at Bank of America National Trust
and Savings Association, the Transfer Agent, Registrar and Paying Agent
("Agent") of this City, at its corporate agency division in San Francisco,
California upon the presentation and surrender of said bonds as the same
become due and payable. Interest on said bonds shall be paid to the
registered owner by check or draft mailed to the address entered in the
registry book provided for herein, as of the 15th day immediately preceding
each interest payment date.
4. Form. The bonds shall be substantially as set forth in Section
8652 of the Streets and Highways Code of the State of California.
5. Execution. Said bonds shall be executed on behalf of the City and
under its official seal by said Finance Director and by its City Clerk whose
signatures shall be reproduced on the bonds by engraved, printed or
lithographed facsimile thereof, and the official seal of said City shall be
placed on the bonds in like manner; such signing and sealing shall constitute
and be a sufficient and binding execution of each and every one of said
3
bonds. The bonds shall then be delivered to the Agent for authentication by
it.
If any officer whose signature appears on said bonds thereon ceases to
be such officer before the authentication and delivery of said bonds to the
purchaser thereof, such signature shall be as valid as if such officer had
remained in office until the authentication and delivery of said bonds.
6. Authentication. Only such of the bonds as shall bear thereon a
certificate of authentication substantially in the form below, manually
executed by the Agent, shall be valid or obligatory for any purpose of
entitled to the benefits of this resolution, and such certificate of the Agent
shall be conclusive evidence that the bonds so authenticated have been duly
executed, authenticated and delivered hereunder and are entitled to the
benefits of this resolution. The Agent's certificate of authentication on any
bond shall be deemed to be executed by it if signed by an authorized officer
or signatory of the Agent, but it shall not be necessary that the same officer
or signatory sign the certificate of authentication on all of the bonds issued
hereunder.
[FORM OF CERTIFICATE OF AUTHENTICATION AND REGISTRATION]
This is one of the bonds described in the Resolution Determining Unpaid
Assessments and Providing for the Issuance of Bonds, which bond has been
registered on
4
BANK OF AMERICA NT and SA,
as Transfer Agent, Registrar
and Paying Agent
By
Authorized Officer
7. Preparation and Delivery of Bonds. The Finance Director is hereby
directed to cause said bonds to be prepared in accordance with this resolution
and to deliver same upon their completion to the Agent who shall authenticate
and deliver said bonds to the purchaser thereof, upon receipt of the purchase
price therefor, and upon the performance of the conditions contained in the
accepted bid for the bonds.
8. Improvement Fund. Said Finance Director shall keep an improvement
fund designated by the name and /or number of the improvement or assessment
district, into which shall be placed the proceeds received from the sale of
said bonds, including any premium (except that any interest accrued from the
date of the bonds to the date of delivery thereof shall be placed in the
redemption fund provided for herein). All moneys in said fund shall be
withdrawn only upon checks or warrants of the City of Alameda and shall be
applied exclusively to the payment of the cost of the acquisitions and /or
construction of the improvements described in the proceedings under and
pursuant to said Resolution of Preliminary Determination and of Intention, as
now or hereafter changed or modified by appropriate legal proceedings, and all
expenses incidental thereto. Any surplus remaining after payment of all costs
and all legal charges, claims and expenses shall be used as set forth in said
proceedings.
5
9. Redemption Fund. Said Finance Director shall keep a redemption
fund designated by the name of the bonds, into which shall be placed any -
accrued interest for the period from the date of said bonds to the date of
delivery thereof and all sums received from the collection of unpaid
assessments provided for in Section 10 hereof, and of the interest and
penalties thereon, and from which fund disbursement shall be made to pay the
principal or advance redemption price of the bonds and the interest due
thereon.
10. Collection of Unpaid Assessments. The unpaid assessments shown on
said list, together with the interest thereon, shall be payable in annual
series corresponding in number to the number of serial maturities of the bonds
issued. An annual proportion of each unpaid assessment shall be payable in
each year preceding the date of maturity of each of the several series of
bonds issued, sufficient to pay the bonds when due, and such proportion of
each unpaid assessment coming due in any year, together with the annual
interest thereon, shall be payable in the same manner and at the same time and
in the same installments as the general taxes on real property are payable,
and become delinquent at the same times and in the same proportionate amounts
and bear the same proportionate penalties and interest after delinquency as do
the general taxes on real property. All sums received from the collection of
said unpaid assessments and of the interest and penalties thereon shall be
placed in the redemption fund provided for herein.
11. Redemption Prior to Maturity. Each bond outstanding may be
redeemed and paid in advance of maturity upon the second day of January or
July in any year by giving at least 60 days notice and by paying the principal
amount thereof together with a premium equal to 5% of the principal plus
6
interest to the date of advanced maturity, unless sooner surrendered, in which
event said interest will be paid to the date of payment, all in the manner and
as provided in the Improvement Bond Act of 1915.
The provisions of Part 11.1 of the Improvement Bond Act of 1915 are
applicable to the advance payment of assessments and to the calling of said
bonds.
The Finance Director shall call for redemption and retire bonds upon
prepayment of assessments in amounts sufficient therefor, or whenever
sufficient surplus funds are available therefor in the redemption fund. In
selecting bonds for retirement, the lowest numbered bonds of the various
annual maturities shall be chosen pro rata in a manner intended to disturb as
little as possible the relationship of unpaid assessments to bonds outstanding.
12. Exchange of Bonds. Any bond, upon surrender thereof at the
principal corporate agency division of the Agent, together with an assignment
duly executed by the registered owner thereof or owner's attorney or legal
representative in such form as shall be satisfactory to the Agent, may, at the
option of such owner, be exchanged for an aggregate principal amount'of bonds
equal to he principal amount of the bond so surrendered, and of any authorized
denomination or denominations.
13. Negotiability, Registration and Transfer of Bonds. The Agent shall
keep books for the registration, and for the registration of transfers, of
bonds as provided in this resolution which shall at all times be open to
inspection by the City. The transfer of any bond may be registered only upon
such books upon surrender thereof to the Agent, together with an assignment
duly executed by the Owner or his attorney or legal representative in such
form as shall be satisfactory to the Agent. Upon any such registration of
7
transfer the City shall execute and the Agent shall authenticate and deliver
in exchange for such bond a new bond or bonds registered in the name of the
transferee, of any denomination or denominations authorized by this
resolution, and in an aggregate principal amount equal to the principal amount
of such bond or bonds so surrendered.
In all cases in which bonds shall be exchanged, the City shall execute
and the Agent shall authenticate and deliver at the earliest practicable time
bonds in accordance with the provisions of this resolution. All bonds
surrendered in any such exchange or registration of transfer shall forthwith
be cancelled by the agent. The City or the Agent 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 to
such exchange or registration of transfer, but no other charge shall be made
to any owner for the privilege of exchanging or registering the transfer of
bonds under the provisions of this resolution. Neither the City nor the Agent
shall be required to make such exchange or registration of transfer of bonds
during the 15 days immediately preceding any January 2 or July 2.
14. Ownership of Bonds. The person in whose name any bond shall be
registered shall be deemed and regarded as the absolute owner thereof for all
purposes and payment of or on account of the principal, and redemption
premium, if any, on 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 such owner's
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.
8
15. Advances from Available Surplus Funds. The City shall be the
purchaser -of property upon which payment of an annual installment of principal -
and interest due upon any of said unpaid assessments is delinquent, in like
manner in which it becomes or may become the purchaser of property sold for
the nonpayment of general taxes, and shall transfer from available surplus
funds into the redemption fund for said bonds, as an advance recoverable upon
sale or redemption of the property, the amount of the delinquent unpaid
assessment installment upon which said sale is made. The City shall also pay
and transfer from available surplus funds into said redemption fund, as an
advance recoverable upon sale or redemption of the property, the amount of any
future delinquent unpaid assessment installments on such property pending
redemption.
16. Reserve Fund. Upon placement of the proceeds from the sale of said
bonds in the improvement fund, the Finance Director shall forthwith transfer
the sum of $109,280.00 from said fund into a special reserve fund, which shall
be designated by the name and/or number of the improvement or assessment
district. The money in said special fund shall be administered by the Finance
Director in accordance with and pursuant to the provisions of Part 16 of the
Improvement Bond Act of 1915, provided only that proceeds from (1) investment
of moneys in the reserve fund and (2) redemption or sale of the properties
with respect to which payment of delinquent assessments and interest thereon
was paid from the reserve fund, shall be credited to the reserve fund only to
the extent that the amount credited to the reserve fund will not result in the
bonds becoming "arbitrage bonds" as defined in Section 103(c) of the Internal
Revenue Code of 1954, as amended, and regulations promulgated by the United
States Department of the Treasury thereunder. To the extent that such
9
proceeds, or any portion thereof, would cause the bonds to become "arbitrage
bonds" if_ credited to the reserve fund and invested at a higher yield than -
permitted by said Section 103(c) and said regulations, then such proceeds, or
portion thereof, shall be credited upon the assessments, provided only that in
the event crediting of any portion of such proceeds upon assessments not
theretofore paid in full in cash would result in moneys in the bond redemption
fund remaining therein for a period of more than twelve (12) months, then any
portion of such proceeds which would otherwise remain in the bond redemption
fund for a period of more than twelve (12) months shall be used to call bonds
prior to their maturity date on the earliest call date next succeeding the
deposit thereof in the redemption fund.
17. Investment of Funds. Moneys in the Redemption Fund, the Reserve
Fund and the Improvement Fund shall, whenever practicable, be invested in
legal investments for the City of Alameda 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.
18. Covenant to Foreclose. The City hereby covenants with and for the
benefit of the holders of the bonds that it will order, and cause to be
commenced within 120 days following the date of delinquency, and thereafter
diligently prosecuted, an action in the superior court to foreclose the lien
of any assessment or installment thereof not paid when due, pursuant to and as
provided in Sections 8830 through 8835, inclusive, of the Streets and Highways
Code of the State of California.
19. Non - Arbitrage Covenant. The City hereby covenants with the holders
of the bonds that it will make no use of the proceeds of said bonds at any
10
time during the term thereof which, if such use had been reasonably expected
on the date said bonds were issued, would have caused said bonds to be
arbitrage bonds within the meaning of Section 103(c) of the Internal Revenue
Code of 1954, as amended, and the Temporary and Proposed Treasury Regulations
promulgated thereunder.
20. Certificate as to Non - Arbitrage. On the basis of the facts,
estimates and circumstances now in existence and in existence on the date of
issue of said bonds, as determined by the Finance Director, said Finance
Director is authorized 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
said bonds at the time of delivery of and payment for said bonds.
21. Certified Copies. The City Clerk shall furnish a certified copy of
this resolution to the Finance Director, to the Agent and to the Auditor of
the County of Alameda.
* * * * * * * * * * * * * **
I, the undersigned, hereby certify that the foregoing Resolution was
duly and regularly introduced and adopted by the Council of the City of
Alameda in regular meeting assembled on the day of , 1983, by
the following vote, to wit:
AYES:
NOES:
ABSENT:
11
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
official seal of said City this day of , 1983.
City Clerk of the City of Alameda
12
Assessment
Number
1
LIST OF UNPAID ASSESSMENTS
CITY OF ALAMEDA
HARBOR BAY BUSINESS PARK
ASSESSMENT DISTRICT 83 -1
Assessor's
Parcel No.
74- 1040 -4.5 (por.)
EXHIBIT A
Amount of
Assessment Unpaid
$1,366,000.00
Bond Numbers
(Inclusive)
$1,366,000 IMPROVEMENT BONDS
SERIES 1983 -1
CITY OF ALAMEDA
HARBOR BAY BUSINESS PARK
ASSESSMENT DISTRICT 83 -1
Denomination
EXHIBIT B
Maturity
Principal Date
Amount (July 2)
I, the undersigned, hereby certify that the foregoing Resolution
was duly and regularly adopted and passed by the Council of the City
of Alameda in regular meeting assembled on the 2nd of August, 1983,
by the following vote to wit:
AYES: Councilmembers Gorman, Hanna, Lucas, Monsef and President Diament - 5.
NOES: None.
ABSENT: None.
IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the
official seal of said City this 3rd day of August, 1983.
City Clerk of the City