HomeMy WebLinkAbout83-45 - Authorizing Sale of Bonds - Assessment District No. 82-1RESOLUTION NO. 83-45
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COSTA MESA, CALIFORNIA, AUPHORIZING THE SALE OF
SPECIAL ASSESSMENT BONDS TO FINANCE IMPROVEMENTS
IN A SPECIAL ASSESSMENT DISTRICT.
WHEREAS, the City Council of the City of Costa Mesa, California, has
initiated proceedings pursuant to the terms and conditions of the "Munici-
pal Improvement Act of 1913", being Division 12 of the Streets and Highways
Code of the State of California, for the construction of certain public
works of improvement, together with appurtenances and acquisition, where
necessary, in a special assessment district; said special assessment
district known and designated as: ASSESSMENT DISTRICT NO. 82-1, STERLING
AVENUE, (hereinafter referred to as the "Assessment District"); and
WHEREAS, it: has been further determined that serial bonds shall be
issued to finance the costs and expenses of said improvements and proceed-
ings, and said bonds shall be issued pursuant to the terms and provisions
of the "Improvement Act of 1911", being Division 7 of the Streets and
Highways Code of the State of California; and
WHEREAS, at this time, this City Council is desirous of authorizing
the sale of bonds to finance the works of improvement as proposed for this
Assessment District;
NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS:
SECTION 1. That the above recitals are all true and correct.
SECTION 2. That BOND COUNSEL is hereby authorized to solicit a
proposal or proposals for the sale of bonds for the Assessment District.
The interest rate on said bonds shall not exceed the current legal maximum
rate of twelve percent (12%) per annum. Said bonds shall be issued pursu-
ant to the terms and conditions as set forth in the Resolution of Intention
as previously adopted for these proceedings.
SECTION 3. That this Resolution is adopted pursuant to the provisions
of Section 10602 of the Streets and Highways Code of the State of Cali-
fornia, and it is further directed that all recommendations relating to
the sale of bonds be presented to this body no later than the time set for
the Public Hearing on the "Report" and related matters for this Assessment
District.
SECTION 4. That there will be provided, at no expense to the bidder,
the approving legal opinion of F. MACKENZIE BROWN, Attorney at Law, attest-
ing to the validity of the proceedings and the enforceability of the bonds.
SECTION 5. That pursuant to the provisions of Section 10600.5, it is
hereby determined that the bonds shall bear interest from their date, and
the date of the bonds shall be SEPTEMBER 2, 1983, or the 31st day after
recordation of the assessment roll and diagram, whichever is later.
SECTION 6. That the BOND SALE SPECIFICATIONS relating to the sale of
assessment bonds for the Assessment District are hereby approved, and for
further particulars, a copy of said Bond Sale Specifications is attached
hereto.
PASSED AND ADOPTED this 16th day of Ma 83.
l i _
ty of Costa
ATTEST:
C y Clerk of the City o "CostaMe
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, EILEEN P. PHINNEY, City Clerk and ex -officio Clerk of the City
Council of the City of Costa Mesa, California, hereby certify that the
above and foregoing Resolution No. 83-45 was duly and regularly passed and
adopted by the said City Council at a regular meeting thereof, held on the
16th day of May, 1983, by the following roll call vote:
AYES: COUNCIL MEMBERS: Hall, Johnson, Hert2Dg, McFarland, Schafer
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal
of the City of Costa Mesa this 17th day of May, 1983.
4MYLClerk and ex -officio Clerk o the
City Council of the City of Cos sa
BOND SALE SPECIFICATIONS
PROJECT: ASSESSMENT DISTRICT NO. 82-1, STERLING AVENUE
AGENCY: CITY OF COSTA MESA
IMPROVEMENTS: STREET IMPROVEMENT'S
PROCEEDINGS: "MUNICIPAL IMPROVEMENT ACT OF 1913"
BONDS: "IMPROVEMENT ACT OF 1911"
AMOUNT: The amount of bonds shall not exceed $174,633.00. This
amount will be adjusted upon receipt of construction
bids and will also be conditioned upon any payments
received during the 30 -day cash collection period
which follows the Public Hearing. It is estimated
that the actual amount of the bond issue will not be
known until approximately 35 days after the conclusion
of the Public Hearing.
BOND TERM: Bonds will be payable in TEN (10) annual installments.
BID: Bonds will be sold for cash to the bidder whose bid,
in the opinion of the City Council, best serves the
interests of the owners of land within the Assessment
District. Bids will be accepted on a flat basis with
no requirement of the payment of accrued interest.
Each bid will be for the entire amount of the bonds,
with a single rate of interest.
DISCOUNT: No bid will be considered for less than 95% of par.
SECURITY DEPOSIT: A certified or cashier's check in the amount of
$5,000.00 shall accompany each bid.
TAX EXEMPT STATUS: The successful bidder may withdraw his proposal if at
any time prior to the delivery, the interest on said
bonds shall be declared to be taxable under Federal
inane tax laws by a ruling of the Internal Revenue
Service, or a decision of a court of competent
jurisdiction.
RESCISSION: If the bonds are not available for delivery within 45
days after their date, the City or the successful
bidder may, upon written notice, rescind any award.
BID DATE: Bids will be received up until the hour of 10:30 a.m.
on the 23rd day of June, 1983, and all bids shall be
delivered or mailed to the following:
CITY CLERK
CITY OF COSTA MESA
POST OFFICE BOX 1200
77 FAIR DRIVE
COSTA MESA, CA 92626
REDEMPTION: The bonds shall provide a 5 percent redemption premium
if discharged prior to maturity.
LEGAL OPINION: There will be provided the approving legal opinion of
F. MACKENZIE BROWN, Attorney at Law, (BROWN & NAZAREK],
which opinion will accompany the bonds, at no expense
to the bidder.
EXHIBIT
Resolution No. 83-45
Page 1 of 2
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INTEREST RATE: Bonds shall bear interest frau their date at a rate
not to exceed the current legal maximum rate of
twelve percent (12%) per annum, or the maximum rate
allowed by law at the time of sale, whichever is
higher. The actual interest rate will be determined
based on bids received.
COLLECTION OF Unpaid assessments and bonds will be serviced by the
ASSESSMENTS AND Treasurer.
BONDS :
ASSESSMENT These assessment bonds are secured by individual liens
SUITABILITY: upon individual properties within the properties
within the boundaries of the Assessment District, and
neither the City nor any officer thereof is liable for
any payment on said bonds. The bonds are not an obli-
gation of the State of California or any political
subdivision thereof, and there is no pledge of the
full faith and credit of the City. The limited nature
of this obligation for payment could result in delay
and default in payment.
PROPERTY TAXES: The City has no direct responsibility for the collec-
tion of property taxes, and thus no information
relating to property tax delinquencies is herewith
made available.
DATE OF BONDS: The date of the bonds shall be SEPTEMBER 2, 1983, or
the 31st day after recordation of the assessment roll
in the Office of the Superintendent of Streets, which-
ever is later.
RATING: No application to a rating agency for these bonds has
been made, nor is any contemplated.
DELIVERY: The delivery of bonds shall be made at the Office of
the Treasurer.
ASSESSMENT For a description of the respective parcels of land
DESCRIPTIONS and the respective assessments, reference is made to
AND AMOUNTS: the Engineer's "Report" as on file with the transcript
of these proceedings.
EXHIBIT
Resolution No. 83-45
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