HomeMy WebLinkAboutResolution 134-86 R-8
CITY OF ATASCADERO
IMPROVEMENT DISTRICT NO 4
(SEPERADO-CAYUCOS ASSESSMENT DISTRICT)
RESOLUTION NO 134-86
RESOLUTION AND ORDER PROVIDING FOR THE
ISSUANCE OF $1, 070,226 62
PRINCIPAL AMOUNT OF IMPROVEMENT BONDS,
CITY OF ATASCADERO IMPROVEMENT
DISTRICT NO 4 (SEPARADO-CAYUCOS ASSESSMENT DISTRICT)
PRESCRIBING THE DENOMINATIONS, DATE, FORM,
AND MAXIMUM RATE OF INTEREST THEREOF,
AUTHORIZING THE EXECUTION OF SAID BONDS;
APPOINTING A PAYING AGENT FOR SAID BONDS;
PROVIDING FOR THE COLLECTION OF ASSESSMENTS
TO PAY THE PRINCIPAL OF AND INTEREST ON SAID
BONDS, PROVIDING FOR A RESERVE FUND FOR SAID
BONDS; APPROVING THE OFFICIAL STATEMENT FOR SAID
BONDS, AND APPROVING BOND PURCHASE CONTRACT
WHEREAS, the City Council of the City of Atascadero
(the "City Council" ) , on July 14, 1986, adopted its Resolution
of Intention No 70-86 relating to the acquisition and
construction of certain proposed public improvements in an
assessment district in and for the City of Atascadero (the
"City" ) designated City of Atascadero Improvement District
No 4 (Seperado-Cayucos Assessment District) , as described
therein, pursuant to the provisions of the Municipal
Improvement Act of 1913, which said Resolution of Intention
provided that serial bonds to represent unpaid assessments and
to bear interest at a maximum rate of not to exceed the
maximum rate permitted by law would be issued in the manner
provided by Division 10 of the Streets and Highways Code of
the State of California, the Improvement Bond Act of 1915, and
that said bonds would extend over a minimum of fifteen (15)
years and a maximum of twenty (20) years from the second day
of September next succeeding twelve (12) months from their
date, reference being hereby made to said Resolution of
Intention for further particulars; and
WHEREAS, an assessment and diagram were thereafter
duly made and filed with this City Council, and after a hearing
duly noticed and held said assessment was confirmed, levied and
approved by Resolution No. 116-86 adopted by this City Council
on October 27 , 1986; and
WHEREAS, said assessment and diagram were duly
recorded on October 30 , 1986 , in the office of the
Superintendent of Streets of the City of Atascadero, and said
diagram was recorded in the office of the San Luis Obispo
County Recorder, all in the time, form and manner required by
law; and
WHEREAS, said assessment was in the total amount of
$1 ,236 ,625 56 and was apportioned upon the several
subdivisions of land in said City of Atascadero Improvement
District No 4 (Seperado-Cayucos Assessment District) in
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proportion to the estimated benefits to be received by such
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subdivisions, respectively, from said work, acquisitions and
improvements as shown in said assessment; and a notice of
assessment was duly recorded in the office of the County
Recorder of the County of San Luis Obispo on November 14 ,
1986 , all in time, form and manner required by law; and
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WHEREAS, notice of the levy of said assessment and
notice otherwise as required by law has been duly given by
mailing and by publication in the time, form and manner
required by law; and
WHEREAS, all sums assessed by said assessment and
said corrected assessment were due and payable to the
Treasurer of the City of Atascadero (the "Treasurer") on or
before the close of business on December 15, 1986;
NOW, THEREFORE, BE IT RESOLVED by the City Council
of the City of Atascadero, as follows
Section 1 The foregoing recitals, and each of
them, are true and correct and the City Council hereby so
finds and determines
Section 2 The City Council has reviewed all
proceedings heretofore taken relative to the foregoing and has
found, as a result of such review, and does hereby find and
determine that all acts, conditions and things required by law
to exist, happen and be performed precedent to and in the
issuance of improvement bonds as hereinafter provided do
exist, have happened, and have been performed in due time,
form and manner as required by law and the City is now
authorized pursuant to each and every requirement of law to
authorize the issuance of bonds in the manner and form as in
this resolution provided
Section 3 Bonds in the principal amount of
$1,070,226 62 shall be issued upon the security of the
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aggregate amount unpaid assessments (together with the ''
interest thereon) in accordance with the provisions of said
Improvement Bond Act of 1915 and pursuant to the provisions of
said Resolution of Intention and proceedings taken
thereunder Said bonds shall be designated "City of
Atascadero, Improvement District No 4 Improvement Bonds
(Seperado-Cayucos Assessment District) " (the "Bonds" ) , shall
be issued as fully registered bonds, shall be of the
denomination of $5, 000 or any integral multiple of $5,000 (not
exceeding the principal amount of Bonds maturing at any one
time) , shall be dated December 2, 1986 (which is hereby fixed
and determined to be the date of issue of the Bonds) and shall
mature and bear interest as set forth in the following
schedule
Principal Maturity Date Interest
Amount .(September 2) Rate
$ 30,226 62 1988 5 00%
30,000 00 1989 5 50
30, 000 00 1990 5 75
30, 000 00 1991 6 00
35,000 00 1992 6 25
35, 000 00 1993 6 50
40, 000 00 1994 6 75
40,000 00 1995 7 00
45, 000 00 1996 7 00
45, 000 00 1997 7 10
50, 000 00 1998 7 20
55, 000 00 1999 7 30
60, 000 00 2000 7 35
65, 000 00 2001 7 40
65, 000 00 2002 7 40
70, 000 00 2003 7 45
75, 000 00 2004 7 45
85, 000 00 2005 7 50
90,000 00 2006 7 50
95, 000 00 2007 7 50
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err The Bonds shall bear interest from the interest
payment date next preceding the date of authentication and
registration thereof, unless such date of authentication and
registration is on a day during the period from the
sixteenth (16th) day of the month next preceding an interest
payment date, to such interest payment date, both inclusive,
in which event they shall bear interest from such interest
payment date, or unless such date of authentication and
registration is on a day on or before the fifteenth (15th) day
of the month next preceding the first interest payment date,
in which event they shall bear interest from December 2,
1986 Such interest shall be payable on September 2, 1987,
and thereafter semiannually on March 2 and September 2 of each
year until and at the respective maturity dates of the Bonds
Section 4 Both the interest on and principal of
and redemption premiums, if any, on the Bonds shall be payable
in lawful money of the United States of America at the
corporate trust office of the Paying Agent hereinafter
appointed in Los Angeles, California Payment of the interest
on the Bonds due on or before the maturity or prior redemption
thereof shall be made by check or draft mailed to the
registered owners of the Bonds at their addresses as they
appear at the close of business on the fifteenth ( 15th) day of
the month prior to each such interest payment date on the
registration books maintained by the Paying Agent as
hereinafter set forth Payment of the principal of and
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redemption premiums, if any, on the Bonds shall be made only
upon surrender thereof on their maturity dates or on
redemption prior to maturity at the corporate trust office of
the Paying Agent in Los Angeles, California
Any Bond may be redeemed in whole or in part in
integral multiples of the minimum authorized denomination of
the Bonds on the second day of March or September in any year,
at the option of the Treasurer, upon payment of the principal
amount thereof and interest accrued thereon to the date of
redemption, together with a premium equal to three per cent
(3%) of such principal amount; provided, that the Treasurer
shall proceed pursuant to Part 11 1 of the Improvement Bond
Act of 1915 in determining those Bonds to be redeemed and the
manner of the redemption thereof Notice of redemption of any moo
Bond shall be given by the Treasurer as provided in the
Improvement Bond Act of 1915
Section 5 The Bonds shall be substantially in the
following form, the blanks to be filled in with appropriate
words and figures, namely
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[FORM OF BOND]
[FORM OF FACE OF BOND]
UNITED STATES OF AMERICA
STATE OF CALIFORNIA
COUNTY OF SAN LUIS OBISPO
REGISTERED REGISTERED
NUMBER $
CITY OF ATASCADERO IMPROVEMENT DISTRICT NO 4
IMPROVEMENT BOND
(SEPERADO-CAYUCOS ASSESSMENT DISTRICT)
INTEREST MATURITY BOND CUSIP
RATE DATE DATE NUMBER
September 2, December 2, 1986
REGISTERED OWNER
PRINCIPAL AMOUNT DOLLARS
Under and by virtue of the Improvement Bond Act of
1915, Division 10 (commencing with Section 8500) of the
Streets and Highways Code (the "Act" ) , the City of Atascadero
(the "City" ) , County of San Luis Obispo, State of California
will, out of the redemption fund for the payment of the bonds
issued upon the unpaid portion of assessments made for the
acquisitions, work and improvements more fully described in
proceedings taken pursuant to Resolution of Intention
No 70-86, adopted by the City Council of the City on the 14th
day of July, 1986, pay to the registered owner set forth above
on the maturity date stated above, the principal sum set forth
above in lawful money of the United States of America, and in
like manner will pay interest from the interest payment date
next preceding the date on which this bond is authenticated
and registered, unless this bond is authenticated and
registered on a day during the period from the
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sixteenth (16th) day of the month next preceding an interest
payment date to such interest payment date, both inclusive, in
which event it shall bear interest from such interest payment
date, or unless this bond is authenticated and registered on a
day on, or before the fifteenth (15th) day of the month next
preceding the first interest payment date, in which event it
shall bear interest from December 2, 1986, until payment of
such principal sum shall have been discharged, at the rate per
annum stated above, payable semiannually on March 2 and
September 2 in each year commencing on September 2, 1987
Both the principal hereof and redemption premium hereon are
payable at the corporate trust office of Security Pacific
National Bank, as Paying Agent (the "Paying Agent" ) in Los
Angeles, California, and the interest hereon is payable by
check or draft mailed to the owner hereof at the owner' s
address as it appears on the records of the Paying Agent or at
such address as may have been filed with the Paying Agent for
that purpose, as of the fifteenth (15th) day immediately
preceding each interest payment date
This bond will continue to bear interest after
maturity at the rate above stated; provided, it is presented
at maturity and payment hereof is refused upon the sole ground
that there are not sufficient moneys in said redemption fund
with which to pay the same If it is not presented at
maturity, interest hereon will run until maturity
This bond shall not be entitled to any benefit under
the Act or the Resolution Authorizing Issuance of Bonds (the
"Resolution of Issuance" ) , or become valid or obligatory for
any purpose, until the certificate of authentication and
registration hereon endorsed shall have been signed by the
Paying Agent The City has determined in the Resolution of
Issuance that the bonds are qualified tax-exempt obligations
pursuant to Section 265(b) (3) (B) (ii) of the Internal Revenue
Code of 1986, as amended
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS
OF THIS BOND SET FORTH ON THE REVERSE HEREOF, WHICH FURTHER
PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF
FULLY SET FORTH AT THIS PLACE
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IN WITNESS WHEREOF, said City of Atascadero has
caused this bond to be signed in facsimile by the Treasurer of
said City and by its City Clerk and has caused its corporate
seal to be reproduced in facsimile hereon, all as of the 2nd
day of December, 1986
CITY OF ATASCADERO
City Clerk City Treasurer
[SEAL]
VOW
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[Certificate of Authentication and Registration]
This is one of the bonds described in the within
mentioned Resolution of Issuance, which has been authenticated
and registered on the day of , 1986
SECURITY PACIFIC NATIONAL BANK,
as Paying Agent
By
Authorized Officer
[FORM OF BACK OF BOND]
This bond is one of several annual series of bonds
of like date, tenor and effect, but differing in amounts,
maturities and interest rates, issued by the City under the
Act and the Resolution of Issuance for the purpose of
providing means for paying for the work, acquisitions and
improvements described in the proceedings, and is secured by
the moneys in said redemption fund and by the unpaid portion
of said assessments made for the payment of said improvements,
and, including principal and interest, is payable exclusively
out of said fund
This bond or any portion of it in the amount of five
thousand dollars ($5, 000) , or any integral multiple thereof,
may be redeemed and paid in advance of maturity upon the
second day of March or September in any year by giving at
least 60 days' notice by registered mail to the registered
owner hereof at the owner' s address as it appears on the
registration books of the Paying Agent by paying principal and
accrued interest together with a premium equal to three
percentum (3%) of the principal
This bond is transferable by the registered owner
hereof, in person or by the owner' s attorney duly authorized
in writing, at the office of the Paying Agent, subject to the
terms and conditions provided in the Resolution of Issuance
including the payment of certain charges, if any, upon
surrender and cancellation of this bond Upon such transfer a s
new registered bond or bonds of any authorized denomination or
denominations, of the same maturity, for the same aggregate
principal amount, will be issued to the transferee in exchange
herefor
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Bonds shall be registered only in the name of an
individual (including joint owners) , a corporation, a
partnership, or a trust
Neither the City nor the Paying Agent shall be
required to make such exchange or registration of transfer of
bonds during the fifteen ( 15) days immediately preceding any
interest payment date
The City and the Paying Agent may treat the owner
hereof as the absolute owner for all purposes, and the City
and the Paying Agent shall not be affected by any notice to
the contrary
[Form of Assignment]
For value received the undersigned do(es) hereby
sell, assign and transfer unto
the within bond and do(es) hereby irrevocably constitute and
appoint
attorney to transfer the same on the register of the Paying
Agent of the City of Atascadero with full power of
substitution in the premises
Date
SIGNATURE GUARANTEED
NOTE The signatures) to this Assignment must correspond
with the name( s) as written on the face of the
within bond in every particular, without alteration
or enlargement or any change whatsoever and the
signature( s) must be guaranteed by a member firm of
the New York Stock Exchange or a commercial bank or
trust company
Section 6 The Treasurer and the Clerk of this
Board are hereby authorized and directed, respectively, to
execute each of the Bonds on behalf of the City by use of
their engraved, printed or lithographed facsimile signatures,
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and the Clerk is hereby authorized and directed to affix the VA901
seal of the City thereto, which seal may be engraved, printed,
lithographed or otherwise placed by facsimile thereon Such
signing and sealing as herein provided shall be a sufficient
and binding execution of the Bonds by the City In case any
of the officers whose signatures appears on the Bonds shall
cease to be such officer before the delivery of the Bonds to
the purchaser, such signature shall nevertheless be valid and
sufficient for all purposes the same as though such officer
had remained in office until the delivery of the Bonds Only
such of the Bonds as shall bear thereon a certificate of
authentication and registration, executed and dated by the
Paying Agent, shall be entitled to any benefits hereunder or
be valid or obligatory for any purpose, and such certificate
shall be conclusive evidence that the Bonds so authenticated
have been duly authorized, executed, issued and delivered
hereunder and are entitled to the benefits hereof
Section 7 Security Pacific National Bank is hereby
appointed Transfer Agent, Registrar and Paying Agent (the
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"Paying Agent" ) of the City for the purpose of paying the
interest on and principal of and redemption premiums, if any,
on the Bonds and for the purpose of performing the other
obligations imposed on it in this resolution The Paying
Agent may at any time resign, which resignation shall become
effective upon the appointment of a successor Paying Agent
Upon receiving notice of such resignation the City shall
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promptly appoint a successor Paying Agent, except that if no
successor Paying Agent shall have been appointed by the City
within, thirty (30) days of receiving such notice, the
resigning Paying Agent may petition any court of competent
jurisdiction for the appointment of a successor Paying Agent
The City may at any time in its sole discretion remove the
Paying Agent initially appointed and any successor thereto and
may appoint a successor or successors thereto by an instrument
in writing; provided that the City agrees that it will at all
times maintain a Paying Agent with a corporate trust office in
Los Angeles, California The Paying Agent is hereby
authorized to pay interest on the Bonds due on or before the
maturity or prior redemption thereof to the registered owners
thereof as their names appear at the close of business on the
fifteenth (15th) day of the month preceding each interest
payment date on the registration books required to be kept by
it pursuant to this section as the registered owners thereof,
such interest to be paid by check or draft mailed to such
registered owners at their addresses appearing on such books
or at such other addresses as they may have filed with it for
that purpose, and to pay to such registered owners the
principal of and redemption premiums, if any, on the Bonds
upon presentation and surrender of the Bonds to it at maturity
or on redemption prior to maturity
The Paying Agent will keep at its corporate trust
office in Los Angeles, California sufficient books for the
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registration, transfer and exchange of the Bonds, which books Iwo
shall at all time be open to inspection by the City Upon
presentation for such purpose, the Paying Agent shall, under
such reasonable regulations as it may prescribe, register or
transfer or exchange the Bonds on such books as hereinafter
provided
Any Bond may be transferred or exchanged on such
books by the registered owner thereof, in person or by his
duly authorized attorney, upon payment by the person
requesting such transfer or exchange of any tax or other
governmental charge required to be paid with respect to such
transfer or exchange and upon surrender of such Bond for
cancellation accompanied by delivery of a duly executed
written instrument of transfer or exchange in a form approved
by the Paying Agent Whenever any Bond or Bonds shall be
surrendered for transfer or exchange, the City shall execute
and the Paying Agent shall authenticate and deliver a new Bond
or Bonds of authorized denominations of the same maturity date
aggregating the same principal amount of the Bond or Bonds so
surrendered The City and the Paying Agent may deem and treat
the registered owner of any Bond as the absolute owner of such
Bond for the purpose of receiving payment thereof and for all
other purposes, whether such Bond shall be overdue or not, and
neither the City nor the Paying Agent shall be affected by any
notice or knowledge to the contrary; and payment of the
interest on and principal of and redemption premium, if any,
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on such Bond shall be made only to such registered owner,
which payment shall be valid and effectual to satisfy and
dischazge the liability on such Bond to the extent of the sum
or sums so paid
The City shall from time to time, upon request of
the Paying Agent and subject to any agreement between the City
and the Paying Agent then in force, pay the Paying Agent
compensation for its services, reimburse the Paying Agent for
all its advances and expenditures, including, but not limited
to, advances to and fees and expenses of independent
accountants, counsel and engineers or other experts employed
by it in the exercise and performance of its rights and
obligations hereunder, and indemnify and save the Paying Agent
harmless against liabilities not arising from its own
negligence or willful misconduct which it may incur in the
exercise and performance of its rights and obligations
hereunder, provided that the Paying Agent shall not have any
lien for such compensation or reimbursement against any moneys
held by it in any of the funds established hereunder, although
it may take whatever legal actions are lawfully available to
it directly against the City
The statements, agreements, conditions, covenants
and terms contained herein and in the Bonds shall be taken as
statements, agreements, conditions, covenants and terms of the
City, and the Paying Agent does not assume any responsibility
for the correctness of the same or for the observance or
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performance by the City of the same and does not make any
representation as to the sufficiency or validity hereof or of
the Bonds The Paying Agent shall not incur any
responsibility in respect hereof other than in connection with
the rights and obligations assigned to or imposed upon it
herein or in the Bonds, and the Paying Agent may conclusively
rely on the written instructions, representations and
calculations received by it from the City Council of the City
or from any officer of the City or from any officer of San
Luis Obispo County hereunder
Section 8 The unpaid assessments in the aggregate
amount of $1,070,226 62, as hereinabove referred to and as
determined by the Treasurer and the City Council, together
with interest thereon computed at the rate specified in the
Bonds (which interest shall begin to run from the date of the
Bonds) , shall in accordance with and consistent with the
Improvement Bond Act of 1915, remain and constitute a trust
fund for the redemption and payment of the principal of the
Bonds and for the interest due thereon, and said assessments
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and each installment thereof and the interest and penalties
thereon shall constitute a lien against the lots and parcels
of land on which they are made, until the same be paid The
Treasurer shall annually make a record in his office showing
the several installments of principal and interest on said
assessments which are to be collected for the forthcoming year
during the term of the Bonds An annual installment of said
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�*Ww unpaid assessments shall be payable and shall be collected in
each year corresponding in amount to the amount of Bonds
unpaid ,and to accrue that year, which amount shall be
sufficient to pay the Bonds as the same become due, and an
annual installment of interest on said unpaid assessments
shall be payable and shall be collected in each year
corresponding in amount to the amount of interest which will
accrue on the Bonds outstanding for such year, which amount
shall be sufficient to pay the interest thereon that shall
become due in the next succeeding March and September The
annual proportion of each assessment coming due in any year,
together with the annual interest on such assessment, shall be
payable in the same manner and at the same time and in the
same installments as the general taxes of the County of San
Luis Obispo on real property are payable, and said assessment
installments and said annual interest on said unpaid
assessments shall be payable and become delinquent on the same
dates and in the same proportionate amounts and bear the same
proportionate penalties and interest after delinquency as do
general taxes on real property in the County of San Luis
Obispo
The City Council hereby covenants with the holders
of the Bonds that in the event any assessment, or installment
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thereof, including any interest thereon, is not paid when due, t
it will order and cause to be commenced within one hundred and E
fifty ( 150) days following the date of delinquency, and
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thereafter diligently prosecute, judicial foreclosure
proceedings upon such delinquent assessment or installment
thereof and interest thereon, which foreclosure proceedings
shall be commenced and prosecuted without regard to available
surplus funds of the City, including money available in the
Reserve Fund provided in Paragraph 11 of this resolution The
City Council hereby further covenants with the holders of the
Bonds that it will monitor the records of the Treasurer and,
not later than one hundred and fifty (150) days following the
date when each assessment, or any installment thereof,
including any interest thereon, is due, it will advise the
Paying Agent either that there are no such delinquencies, or
that there are such delinquencies, and (in the latter case)
whether or not it has caused to be commenced the aforesaid
judicial foreclosure proceedings If the City has advised
that such judicial foreclosure proceedings have not been
commenced, then the Paying Agent agrees that it will use its
best efforts to institute a suit at law or in equity to compel
the City to commence such foreclosure proceedings (the
expenses of which suit shall be paid by the City in accordance
with Section 7 hereof) ; provided, that the Paying Agent shall
not be responsible for monitoring the records of the Tax
Collector of San Luis Obispo or for taking any action other
than as specified herein, it will cause to be commenced the
aforesaid judicial foreclosure proceedings
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.• Section 9 There is hereby created and established
a fund to be known as the "City of Atascadero Improvement
District No 4 (Seperado-Cayucos Assessment District) Bond
Redemption Fund, " which fund shall be kept by the Treasurer
and shall constitute a trust fund for the benefit of the
holders of the Bonds At the time of the issuance of the
Bonds, the City shall deposit in said fund from the proceeds
of the sale of the Bonds the sum of $50, 671 15, representing
capitalized interest, and the sum of $6,097 35, representing
accrued interest, which shall be applied to the interest
payments on the Bonds until September 2, 1987 All sums
received by the Treasurer which are received from the
collection of unpaid assessments, and of the interest and
penalties thereon, shall upon receipt be deposited in said
fund All sums to become due for the principal of and the
interest on the Bonds shall be withdrawn from said fund and
transferred to the Paying Agent so as to be received by the
Paying Agent for use for the payment of the principal of and
the interest on the Bonds at least two (2) business days
before each such principal or interest due date, and the Bonds
and the interest thereon shall not be paid out of any other
funds The City Council hereby agrees and covenants that it
will timely make or cause to be made such withdrawals and
transfers in compliance with the requirements of this
sentence The Paying Agent shall not be required to invest
any funds held by it under this section, nor shall it be
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liable to the City for payment of interest on any funds so
held Any surplus remaining in said fund after payment of all
Bonds and the interest thereon shall be applied as directed by
the City All moneys in said fund shall be invested in any
lawful investments of City funds maturing not later than the
date on which such moneys are required for disbursement as
herein provided All interest earned on such investments
shall be credited to said fund, except as otherwise required
by Section 12 of this resolution
Section 10 There is hereby created and established
a fund to be known as the "City of Atascadero Improvement
District No 4 (Seperado-Cayucos Assessment District)
Improvement Fund, " which shall be kept by the Treasurer
After making the deposit in the Reserve Fund as required by
Section 11 and after making the deposit in the Redemption Fund
required by Section 9, all remaining proceeds of the sale of
the Bonds (together with the paid assessments) shall be placed
by the Treasurer to the credit of said fund and shall be kept
separate and distinct from all other City funds All moneys
in said fund shall be invested in any lawful investments of
City funds maturing not later than the date on which such
moneys are required for disbursement as herein provided All ,
interest earned on such investments shall be credited to said
fund, except as otherwise required by Section 12 of this
resolution The moneys in said fund shall be applied
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exclusively for the purpose of paying the cost of the
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improvements for which the City of Atascadero Improvement
District No 4 (Seperado-Cayucos Assessment District) has been
formed,, including payment of the incidental expenses in
connection with such improvements, provided, that after
completion of said improvements and the payment of all claims
from said fund, any surplus moneys remaining in said fund (as
determined by the City Council) , or such portion thereof as is
allowed by law, shall be used as a credit on the assessment in
accordance with the provisions of Section 10427 1 of the
Streets and Highways Code
Section 11 There is hereby created and established
a separate fund to be known as the "City of Atascadero
Improvement District No 4 (Seperado-Cayucos Assessment
District) Reserve Fund, " which fund shall be kept by the
Treasurer and which shall constitute a trust fund for the
benefit of the holders of the Bonds At the time of the
issuance of the Bonds, the City shall deposit in said fund
from the proceeds of the sale of the Bonds the sum of
$52, 039 77, and all money in said fund shall be paid and
transferred in the following amounts and at the following
times and under the following circumstances
(a) Whenever there are insufficient funds in the
Redemption Fund to meet the next maturing installment of
principal of or interest on the Bonds, the City shall
transfer an amount necessary to satisfy such deficiency
to the Paying Agent, for use for the payment of the
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principal of and the interest on the Bonds, at least two *ago,
(2) business days before each such principal or interest
due date which amount shall be calculated by the
Treasurer and which calculation shall be set forth in
writing The City agrees that if such insufficiency was
caused by delinquent payment of installments of
assessments, then an amount equal to the amount so
transferred shall be reimbursed and deposited by the City
in the Reserve Fund from the proceeds of redemption or
sale of the parcel in respect of which payment of
installments of assessments was delinquent
(b) In the event unpaid assessments are paid in
cash prior to their final due date, the City shall
transfer no earlier than fifteen (15) days after the
receipt of such payment from the Reserve Fund for deposit
in the Redemption Fund an amount equal to the ratio of
the total amount initially provided for in the Reserve
Fund to the total amount originally assessed in the
proceedings for the Bonds multiplied by the reduction in
said assessments, which shall be calculated by the
Treasurer and which such calculation shall be set forth
in writing
(c) If at any time the amount of interest earned by
the investment of any portion of the Reserve Fund,
together with the principal amount in the Reserve Fund,
shall exceed $52, 039 77, such excess shall be credited by
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1% the City upon the unpaid assessments in the manner set
forth in the Improvement Bond Act of 1915
(d) Whenever the balance in the Reserve Fund is
sufficient to retire all the remaining outstanding Bonds,
the City shall transfer the balance in the Reserve Fund
for deposit in the Redemption Fund and the City shall
cease the collection of the principal and interest on the
unpaid assessments In such case, the City shall credit
such balance against the assessments remaining unpaid in
the manner set forth in the Improvement Bond Act of 1915,
with the amount apportioned to each unpaid assessment
credited against the last unpaid assessment installment;
and if the amount apportioned to each parcel exceeds the
amount of said last installment, then such excess shall
be credited against the next preceding unpaid assessment
installment or installments until exhausted In the
event that the balance in the Reserve Fund at the time of
such transfer exceeds the amount required to retire all
outstanding Bonds, then such excess shall be apportioned
by the City to each parcel upon which an individual
assessment remained unpaid at the time the balance in the
Reserve Fund was sufficient to retire all outstanding
Bonds, and such payments shall be made by the City in
cash to the respective owners of the parcels, except that
if such excess is not greater than One Thousand Dollars
($1, 000) , such excess may be transferred to the general
`%w fund of the City
24
Section 12 ( a) The City will not make any use of
the proceeds of the Bonds or any other funds of the City or of
the improvements acquired and constructed with the proceeds of
the Bonds or any part thereof which would cause the Bonds to
be "arbitrage bonds" subject to federal income taxation by
reason of Section 148 of the Internal Revenue Code of 1986, as
amended (the "Code") , "private activity bonds" subject to
federal income taxation by reason of Section 141(a) of the
Code, or obligations subject to federal income taxation
because they are "federally guaranteed" as provided in Section
149(b) of the Code, and to that end the City, with respect to
the proceeds of the Bonds and such other funds, will comply
with all requirements of such sections of the Code and all
regulations of the United States Department of the Treasury
issued thereunder to the extent that such requirements are, at
the time, applicable and in effect, and will comply with the
provisions of the Letter of Instructions delivered to the City
by Orrick, Herrington & Sutcliffe, dated the date of issuance
of the Bonds, as originally executed and as it may be amended
from time to time (the "Letter of Instructions")
(b) In furtherance of the covenants of the City set
forth above, the City will cause the Paying Agent to comply
with the Letter of Instructions, and the City hereby agrees
i
and covenants to establish and maintain with the Paying Agent
the "City of Atascadero Improvement District No 4
d
(Seperado-Cayucos Assessment District) Rebate Fund" and to use
25
w such fund to segregate the Rebate Requirement (as that term is
defined in the Letter of Instructions) and Rebate Earnings (as
that term is defined in the Letter of Instructions) from all
other moneys of the City and the Paying Agent in accordance
with the Letter of Instructions
(c) The City hereby represents that the reasonably
anticipated amount of "qualified tax-exempt obligations" which
has been and will be issued by the City in 1986 does not
exceed $5,000, 000, and hereby designates the Bonds to be
"qualified tax-exempt obligations" pursuant to Section
265(b) (3 ) (B) (ii) of the Code
Section 13 The City Clerk is directed to cause the
Bonds to be lithographed, printed or engraved, and to cause
the blank spaces thereof to be filled in to comply with the
provisions hereof, and to procure their execution by the
proper officers, and to deliver them when so executed, to the
Paying Agent, who shall authenticate them, and thereafter
deliver them to the purchaser thereof, on receipt by the
Treasurer of the purchase price thereof The Treasurer and
the City Clerk are further authorized to execute and deliver
to the purchaser of the Bonds a signature and no-litigation
certificate in the form customarily required by purchasers of
municipal bonds, certifying to the genuineness and due
execution of the Bonds and to all facts within their knowledge
relative to any litigation which may or might affect said City
of Atascadero Improvement District No 4 (Seperado-Cayucos
err
26
Assessment District) or the City, said officers or the Bonds,
and the Treasurer is further authorized to execute and deliver
to the purchaser of the Bonds a Treasurer' s receipt in the
form customarily required by purchasers of municipal bonds,
evidencing the payment of the purchase price of the Bonds,
which receipt shall be conclusive evidence that said purchase
price has been paid and has been received by the City Any
purchaser or subsequent taker or holder of the Bonds is hereby
authorized to rely upon and shall be justified in relying upon
any such signature and no-litigation certificate and any such
Treasurer' s receipt with respect to the Bonds executed, sold
and delivered pursuant to the authority of this resolution
Section 14 The officers of the City are hereby
authorized and directed, jointly and severally, to do any and
all things and to execute and deliver any and all documents,
or to make any necessary modifications thereto, which are
acceptable to the City Manager, City Attorney and Bond Counsel
and which they deem necessary or advisable in order to
consummate the issuance, sale and delivery of the Bonds
Section 15 The Official Statement relating to the
Bonds on file with the City Clerk is hereby approved, and the
Bonds are hereby sold to Mann, Urfer, Inc at a price equal to
t
ninety-seven and one quarter per cent (97 25%) of the
principal amount thereof, together with accrued interest
thereon to the date of delivery, in accordance with the Bond
Purchase Contract on file with the City Clerk The officers
27
I
4
i
of the City are hereby authorized for and in the name of the
City to execute an Official Statement and a Bond Purchase
Contract, respectively, in substantially the forms presented
to the City Council, with such changes as such officers may
require or approve, such approval to be conclusively evidenced
by the execution thereof Mann, Urfer, Inc is hereby
authorized and directed to cause to be printed and mailed to
prospective purchasers of the Bonds copies of such Official
Statement in substantially such form as was presented to this
City Council
Section 16 This resolution shall take effect
immediately
28
r
PASSED AND ADOPTED this 18th day of December, 1986,
by the following vote
AYES Councilmembers Borgeson, Handshy, Molina and Mayor Mackey
NOES ' Councilwoman Norris
ABSENT None
I 1`
SEAL,
]
` ATTE S'"
BOYD C SHARITZ, Ci erk MAR RIE R MACKEY, Mayor
APPROVED AS TO FORM APPROVED AS TO CONTENT
ROBERT M JONES, City Attorney ROBERT M JONES, City Attorney
29