HomeMy WebLinkAbout81-181RESOLUTION NO. 81-181
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA ANA ISSUING BONDS UNDER
THE IMPROVEMENT BOND ACT OF 1915
WHEREAS, this City Council has heretofore initiated
assessment proceedings pursuant to its Resolution No. 81-119
under the Municipal Improvement Act of 1913, (Division 12 of
the Streets and Highways Code) and has confirmed an assess-
ment in the total amount of $3,150,000 ; and
WHEREAS, the assessment proceedings provide for the
issuance of bonds pursuant to the Improvement Bond Act of
1915 (Division 10 of the Streets and Highways Code); and
WHEREAS, following public bidding, and receipt of bids
for the purchase of the bonds herein, the City Council in
its Resolution No.81-142 awarded said bonds to Merrill Lynch
Capital Markets Group , as the best bidder therefor at the interest
rates set forth in said resolution and hereinbelow; and
WHEREAS, this City Council desires, pursuant to Section
8650.1 of the Streets and Highways Code, to establish the
denomination of the bonds and the amount to mature each year
which will be other and different than that provided in
Section 8650 of said Code;
NOW, THEREFORE, BE IT RESOLVED AND ORDERED BY THE
CITY COUNCIL OF THE CITY OF SANTA ANA, STATE OF CALIFORNIA,
as follows:
1. That in accordance with the proceedings heretofore
taken, bonds shall be issued pursuant to the Improvement
Bond Act of 1915. The bonds shall be 630 in number, shall
be numbered in consecutive numerical order, beginning with
the earliest maturity, and shall be numbered from 1 to 630 ·
The bonds shall be of the denomination of $5000 each,
~xxxxxxxxx~ The bonds shall be dated November 15, 1981.
The first interest coupon is payable on January 2, 1983, and
thereafter the interest is payable semi-anually on July 2
and January 2 of each year. The bonds shall mature on
July 2 in the amounts and years and shall bear interest at
the rates set forth below:
Interest
Amount Year (July2) Rate
$ 5,000
110,000
125,000
135,000
150 000
165 000
180 000
200 000
220 000
240 000
270 000
290 000
320 000
350 000
390 000
1983 10%
1984 10%
1985 10%
1986 10%
1987 10%
1988 10%
1989 10%
1990 10%
1991 10%
1992 10%
1993 10%
1994 10%
1995 10%
1996 10%
1997 10%
White Weld
2. The bonds may be redeemed and paid in advance of
maturity upon the second day of January or July in any year
by giving a notice provided by law and by paying principal
and accrued interest together with a premium equal to five
per cent (5%) of the principal.
3. The bonds shall be issued substantially in the
form set forth in Section 8652 of the Streets and Highways
Code.
4. The bonds shall be signed by the Treasurer and the
City Clerk of the City, and the Clerk shall also affix the
corporate seal of the City to the bonds. The coupons
affixed to the bonds may be signed by the Treasurer by an
engraved, printed or lithographed signature.
5. The proceeds from the sale of the bonds shall be
placed in the fund hereby created, pursuant to Section 10602
and 10424 of the Streets and Highways Code, which shall be
called the "Assessment District No. 246 Construction Fund"
and the moneys in the fund shall be used only for the
purposes authorized in the assessment proceedings.
6. The bonds shall be payable at the principal office
of First Interstate Bank of California in Los Angeles,
California, the Paying Agent of the City, and shall be paid
out of the Redemption Fund created pursuant to Section 8671
of the Streets and Highways Code. In all respects not
recited herein said bonds shall be governed by the provi-
sions of the Improvement Bond Act of 1915, Division 10 of
the Streets and Highways Code.
7. Pursuant to Section 8 of Resolution No. 81-119 and
the provisions of Part 16 (commencing with Section 8880) of
Division 10 of the Streets and Highways Code of the State of
California, from the proceeds received from the sale of the
bonds, the amount of $ 315.000 shall be deposited by
the City Treasurer in a special reserve fund (the "Reserve
Fund") which the City hereby covenants and agrees to main-
tain. The Reserve Fund shall be designated and identified
as the "Assessment District No. 246 Reserve Fund." The
Reserve Fund shall constitute a trust fund for the benefit
of the bondholders, and shall be maintained, used , trans-
ferred, reimbursed and liquidated as follows:
(a) Whenever there are insufficient funds in the
Redemption Fund to pay the next maturing installment of
the principal of or interest on the bonds, an amount
necessary to pay such deficiency shall be advanced from
the Reserve Fund to the Redemption Fund. The amounts
so advanced shall be reimbursed from the proceeds of
redemption or sale of the parcels for which payment of
delinquent installments of assessments and interest
thereon or real property taxes has been made from the
Reserve Fund.
(b) In the event unpaid assessments are paid in
advance, in whole or in part, the assessments thus paid
shall be proportionately reduced by an amount equal
to the ratio of the total amount initially provided
for the Reserve Fund to the total amount originally
assessed in the proceedings for the issuance of the
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R~SObUTION NO.
PAGE THREE
bonds, and the amount thus determined shall be trans-
ferred from the Reserve Fund to the Redemption Fund.
(c) If at any time the amount of any income
realized from the investment of the money in the
Reserve Fund plus the remaining principal amount
thereof exceeds an amount equal to fifteen percent
(15%) of the aggregate principal amount of the bonds
issued, less any discount thereof, such excess shall be
transferred to the Redemption Fund and expended for the
advance retirement of bonds within thirteen months of
the date of the occurrence of such excess.
(d) Whenever the balance in the Reserve Fund is
sufficient to retire all remaining outstanding bonds,
whether by advance retirement or otherwise, collection
of the principal and interest on the assessments will
be discontinued and the Reserve Fund will be liquidated
in retirement of the bonds.
8. The Treasurer is hereby instructed to cause bonds,
as set forth above, to be printed and following the filing
of the list of unpaid assessments, to issue and deliver the
bonds to the purchaser thereof upon payment of the purchase
price as set forth in the notice calling for bond bids and
in the accepted bid.
PASSED AND ADOPTED THIS
1981, by the following vote:
2nd day of November
AYES: Acosta, Bricken, Grtset, Luxembourger, McGui§an, Serrato
NOES: Markel
ABSENT OR NOT VOTING: None
Mayor, City of Santa Ana
ATTEST:
APPROVED AS TO FORM:
~-DWARD J. CO~PE~_~
CITY ATTORNEY
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