HomeMy WebLinkAbout2003-3 - Assessment District No. 86RESOLUTION NO. 2003 -3
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH AUTHORIZING ISSUANCE OF BONDS AND
APPROVING THE FORM OF CERTAIN BOND DOCUMENTS FOR
ASSESSMENT DISTRICT NO. 86
WHEREAS, this City Council has previously adopted its Resolution of
Intention and initiated proceedings for the acquisition of certain public works of
improvement, together with appurtenances and appurtenant work, in a special
assessment district designated as Assessment District No. 86 (hereinafter
referred to as the "Assessment District') pursuant to 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 (the "Improvement Act'); and
WHEREAS, this legislative body, to finance the acquisition and
construction of such improvements, declared in its Resolution of Intention to
issue bonds against any unpaid assessments as certified by the Treasurer, such
bonds to issue pursuant to the terms and provisions of the 'Improvement Bond
Act of 1915 ", being Division 10 of such Code (the 'Bond Act'); and
WHEREAS, at this time this legislative body desires to set forth the
general terms and conditions relating to the authorization, issuance and
administration of such bonds; and
WHEREAS, there has been presented, considered and ready for approval
the form of a bond indenture, which document contains information including but
not limited to the Assessment District and the terms and conditions of the bonds;
and
WHEREAS, there has also been presented for consideration by this
legislative body a form of Bond Purchase Contract authorizing the sale of bonds
to M. L. Stern & Co. Inc., as underwriter;
NOW, THEREFORE, it is hereby Resolved, Determined, and Ordered as
follows:
SECTION 1. Recitals. The above recitals are true and correct.
SECTION 2. Bonds Authorized. Pursuant to the Bond Act, this Resolution
and the Bond Indenture (hereafter defined), limited obligation improvement
bonds of the City for the Assessment District designated as "City of Newport
Beach Assessment District No. 86 Limited Obligation Improvement Bonds" (the
"Bonds ") in an aggregate principal amount not to exceed the unpaid
assessments are hereby authorized to be issued, sold, and delivered. The date,
manner of payment, interest rate or rates, interest payment dates,
denominations, form, registration privileges, manner of execution, place of
payment, terms of redemption and other terms, covenants and conditions of the
Bonds shall be as provided in the Bond Indenture as executed.
SECTION 3. Authorization and Conditions. The City Manager, the City
Treasurer, and such other official of the City as may be designated by the City
Council, or any of them (each an "Authorized Officer "), are hereby authorized and
directed to execute and deliver the various documents and instruments described
in this Resolution with such additions and changes as the Authorized Officer
deems advisable, provided that no additions or changes shall authorize an
aggregate principal amount of Bonds in excess of the unpaid assessments. The
approval of such additions or changes shall be conclusively evidenced by the
execution and delivery of such documents or instruments by an Authorized
Officer, upon consultation with and review by the City Attorney and bond counsel.
SECTION 4. Bond Indenture. The form of Bond Indenture with respect to
the Bonds as presented to this City Council and on file with the City Treasurer is
hereby approved. The Authorized Officer is hereby authorized and directed to
cause the same to be completed and executed on behalf of the City.
SECTION 5. Sale of Bonds. This City Council hereby authorizes and
approves the sale of the Bonds by negotiation to M. L. Stern & Co. Inc. (the
"Underwriter "). The form of the Bond Purchase Agreement as presented to this
City Council and on file with the City Treasurer is hereby approved and the
Authorized Officer is hereby authorized and directed to execute the Bond
Purchase Agreement on behalf of the City upon the execution thereof by the
Underwriter, subject to Section 3 and further subject to the following conditions:
the aggregate principal amount of the bonds is equal to the unpaid assessments
within the Assessment District, the underwriter's discount does not exceed two
percent (2 %) and the net interest rate on the bonds shall not exceed seven
percent (7 %) per annum.
SECTION 6. Bonds Prepared and Delivered. Upon the execution of the
Bond Purchase Agreement, the Bonds shall be prepared, authenticated and
delivered, all in accordance with the applicable terms of the Bond Act and the
Bond Indenture, and the Authorized Officer and other responsible City officials
are hereby authorized and directed to take such actions as are required under
the Bond Purchase Agreement and the Bond Indenture to complete all actions
required to evidence the delivery of the Bonds upon the receipt of the purchase
price thereof from the Underwriter.
SECTION 7. Annual Assessment Installments. A copy of the resolution
confirming the assessments, which assessments shall constitute the security for
the Bonds, shall be delivered to the City Treasurer, and the City Treasurer shall
keep or cause to be kept the record showing the several installments of principal
and interest on the assessments by assessor's parcel number that are to be
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collected each year during the term of the bonds. The City Treasurer shall
establish procedures to promptly respond to inquiries concerning installments on
current tax roles as prescribed by section 53754 of the Government Code of the
State of California. An annual portion of each assessment, together with annual
interest on said assessment, shall be payable in the same manner and at the
same time and in the same installment as the general property taxes of the
County of Orange and shall be payable and become delinquent at the same time
and in the same proportionate amount. Each year the annual installments shall
be submitted to the County Auditor for purposes of collection.
SECTION 8. Covenant to Initiate Foreclosure Proceedings. This
legislative body does further specifically covenant for the benefit of the
bondholders to commence and prosecute to completion foreclosure actions
regarding delinquent installments of the assessments in the manner, within the
time limits and pursuant to the terms and conditions as set forth in the Bond
Indenture as submitted and approved through the adoption of this Resolution.
SECTION 9. Actions. All actions heretofore taken by the officers and
agents of the City with respect to the establishment of the Assessment District
and the sale and issuance of the bonds are hereby approved, confirmed and
ratified, and the proper officers of the City are hereby authorized and directed to
do any and all things and take any and all actions and execute any and all
certificates, agreements, contracts, and other documents, which they, or any of
them, may deem necessary or advisable in order to consummate the lawful
issuance and delivery of the Bonds in accordance with Bond Act, this Resolution,
the Bond Indenture, the Bond Purchase Agreement, and any certificate,
agreement, contract, and other document described in the documents herein
approved.
SECTION 10. Effective Date. This resolution shall take effect from and
after its adoption.
PASSED, APPROVED and ADOPTED this 14th day of January, 2003.
AYES: Heffernan,
NOES: None
ABSENT: None
Proctor, Ridgeway, Adaps, Webb, Nichols, Mayor Bromberg
ATTEST:
City Clerk
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STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, LaVonne M. Harkless, City Clerk of the City of Newport Beach, California, do
hereby certify that the whole number of members of the City Council is seven; that the foregoing
resolution, being Resolution No. 2003 -3 was duly and regularly introduced before and adopted by the
City Council of said City at a regular meeting of said Council, duly and regularly held on the 14th
day of January, 2003, and that the same was so passed and adopted by the following vote, to wit:
Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg
Noes: None
Absent: None
Abstain: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the
official seal of said City this 15th day of January, 2003.
(Seal)
City Clerk
Newport Beach, California