HomeMy WebLinkAboutSpecial Agenda 121886 r
AGE _N -DA
ATASCADERO CITY COUNCIL
SPECIAL MEETING
ATASCADERO ADMINISTRATION BUILDING
FOURTH FLOOR CLUB ROOM
DECEMBER 18 1986
5 30 P.M',
1. PROPOSED RESOLUTION 134-86 - APPROVAL OF UNPAID ASSESSMENT
LIST, AUTHORIZING ISSUANCE OF -BONDS, APPROVAL OF OFFICIAL
STATEMENT, AND APPROVAL OF BOND PURCHASE CONTRACT
2. PROPOSED RESOLUTION 135-86. - AMENDING RESOLUVI'GP 117-86 =
AWARDING CONSTRUCTION CONTRACT TO BEAVER CONSTRUCTION FOR
SEWER ASSESSMENT` DISTRICT NUMBER 4
3 . PROPOSED RESOLUTION 136-86 AMENDING RESOLUTION OF INTENTION
& ELIMINATING CITY FROM OBLIGATION TO PAY DELINQUENT ASSESS-
MENTS IF RESERVE FUNDS BECOME DEPLEATED
MEMORANDUM
TO: City Council
THROUGH: Mike Shelton, City Manager
FROM: Paul Sensibaugh, Director of Public Works
SUBJECT: AD #4 (Seperado-Cayucos) - Final Actions
Recommendation:
Staff recommends that Council adopt Resolutions 134-86,
135-86, and 136-86.
Background:
December 15 at 5 p.m. was the last time for making a cash
payment to avoid a lein on a property to be assessed under AD #4.
Over $152, 000 was collected prior to that time, representing 14%
of the total project cost.
. The adoption of Resolutions 134-86 , 135-86 and 136-86 are
the final steps in the long and detailed process of an assessment
district using a 1913 Improvement Act Proceedings and 1915 Act
Bonds.
Resolution No. 134-86 provides for the issuance of bonds in
the amount of $1,070,226. 62, sets the size of each bond at $5, 000
increments, sets the maximum rate of interest, authorizes the
selling of the bonds, appoints Security Pacific as the paying
agent, provides for the collection of assessments, provides for a
reserve fund to pay any delinquent assessments, approves the of-
ficial statement and approved the bond purchase contract with
Mann-Urfer Incorporated, a subcontractor to Security
Pacific.
Resolution No. 135-86 ammends Resolution 117-86 for the
purpose of allowing the Mayor to sign the contracts with Beaver
Construction upon securing the bond purchase contract instead of
the City Manager signing the contract upon actually obtaining the
receipts from the sale of the bonds. This is being done to bring
the documents into conformity with the engineering specifi-
cations.
Resolution No. 136-86 ammends the Resolution of Intention to
eliminate the City from any obligation to pay delinquent assess-
ments in case the reserve funds becomes depleated. Instead, the
City would call in the lein on the property for legal actions
against the property. The delinquency rate for all of Atascadero
is only about 3%. The 5% reserve fund is over $50 , 000 which re-
presents about 100 annual payments out of a total of about 5600
annual payments, or less than 2% of the payments. Considering
that unusually high percentage of benefit units, 14%, paid cash
up front and that the reserve fund will earn interest over the
years, it is unlikely that the reserve fund will become depleat
ed.
Discussion:
The documentation given to Council contains many blanks but
was distributed in that form to allow adequate time to digest the
complex resolution providing for the issuance of the bonds. The
final assessment figures were calculated late on the 15th and
telephoned to Security Pacific and Orrick, Herrington and Sut-
cliffe. Final bond package information will be forthcoming up
until and during the meeting of the 18th at 5:30 pm. The time
schedule is so delicate that this is the only way to accomplish
the final steps.
The engineering agreement will be signed on the 18th and the
Notice to Proceed will be issued by carrier to Beaver Excavating
on Friday the 19th. Construction will begin the first week in
January after the holiday weekend.
Fiscal Analysis:
The resolutions do not obligate the City to any additional
indebtedness. Resolution 136-86 keeps the City from future ob-
ligations due to default on assessments.
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