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HomeMy WebLinkAboutResolution 1999-001 RESOLUTION NO. 1999-001 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO DECLARING INTENTION TO REFUND THE OUTSTANDING BONDS OF CAMINO REAL IMPROVEMENT PROJECT TO LEVY REASSESSMENTS AS SECURITY FOR THE REFUNDING BONDS AND TO CONTINUE THE LIEN OF THE ORIGINAL ASSESSMENTS ON CERTAIN PARCELS OF PROPERTY IN THE ASSESSMENT DISTRICT,AND EMPLOYING BOND COUNSEL,DISCLOSURE COUNSEL AND REASSESSMENT CONSULTANT WHEREAS, on July 8, 1993, the City of Atascadero (the "City") issued and sold bonds for Camino Real Improvement Project of the City of Atascadero designated City of Atascadero Camino Real Improvement Project Limited Obligation Improvement Bonds, and such bonds remain outstanding in the aggregate principal amount of $1,700,000 (the "Outstanding Bonds"); and WHEREAS, the City Council of the City (the "City Council") has been advised that due to favorable municipal bond interest rates, the Outstanding Bonds could be refunded at a savings in annual debt service to the property owners within the Assessment District; and WHEREAS, the City Council has determined, based on such advice, that the public interest requires the refunding of the Outstanding Bonds as permitted by and pursuant to proceedings to be conducted in accordance with the Refunding Act of 1984 for 1915 Improvement Act Bonds, Division 11.5 (commencing with Section 9500) of the Streets and Highways Code of the State of California (the "Refunding Act"); NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the City Council of the City of Atascadero as follows: Section 1. Refunding; Continuation of Liens of Original Assessments. The City Council determines that the public interest requires the refunding of the Outstanding Bonds and declares its intention to refund the Outstanding Bonds, to issue bonds to refund the Outstanding Bonds (the "Refunding Bonds") and to levy reassessments on the parcels of property in the Assessment District as security for the Refunding Bonds, all pursuant to the Refunding Act. It is further the intention of the City Council to continue the liens of the original assessments levied on parcels of property in the Assessment District, and which secure the payment of the principal of and interest of the Outstanding Bonds, as security for the payment of the unpaid installments of such assessments and the penalties and interest thereon, including the installments of such assessments which have been posted to and are to be collected on the tax assessment roll for the 1998-99 fiscal year and all unpaid and delinquent installments of such assessments which were posted to the tax assessment roll for prior fiscal years. Section 2. - Report. The City Manager is authorized and directed to have Tartaglia Engineering, the firm employed by the City to assist the City in the reassessment proceedings which are to be conducted pursuant to the Refunding Act (the "Reassessment Consultant"), prepare and file with the City Clerk a report containing all of the matters required by Section 9523 of the Streets and Highways Code of the State of California (the "Report"). In preparing the Report, the Reassessment Consultant shall assume that the City will advance the maturity of all of the Outstanding Bonds to March 2, 1999, and that in refunding the Outstanding RVPUB\KAB\53769 1 Bonds, the City will pay the principal amount thereof and accrued interest thereon to March 2, 1999, together with a premium equal to three percent (3%) of said principal amount. The Reassessment Consultant shall further assume that the maximum interest rate on the Refunding Bonds will be seven percent (7.0%)per annum. Upon receipt of the Report, the City Clerk shall present it to the City Council for consideration. Section 3. Reserve Fund. The City Council declares its intention to provide in the resolution authorizing the issuance of the Refunding Bonds for the establishment from the proceeds of the sale of the Refunding Bonds of a special reserve fund for the Refunding Bonds pursuant to Part 16 (commencing with Section 8880) of Division 10 of the Streets and Highways Code of the State of California. The estimated amount of the special reserve fund shall be included in the total amount of the reassessments and shall be separately identified in the Report to be prepared pursuant to Section 2 hereof. Section 4. Maximum Interest Rate on Refunding. The maximum rate of interest on the Refunding Bonds shall not exceed seven percent(7.0%)per annum. Section 5. Delinquent Assessment Installments. The City staff and the Reassessment Consultant shall determine and make a recommendation to the City Council as to whether it is in the best interests of the City and the owners of parcels of property in the Assessment District as to which annual installments of the assessments thereon are unpaid and delinquent to include such delinquent installments, and the penalties and interest thereon, in the reassessments which will be levied on such parcels as security for the payment of the principal of and interest on the Refunding Bonds. Section 6. No City Obligation. The City Council determines, pursuant to Section 8769 of the Streets and Highways Code of the State of California, that City will not obligate itself to advance available funds form the City Treasury to cure any deficiency which may occur in the bond redemption fund for the Refunding Bonds. Section 7. Consultants. For purposes of the reassessment proceedings and the issuance and sale of the Refunding Bonds, the law firm of Best Best& Krieger LLP is employed as Bond Counsel and Disclosure Counsel to the City, and the firm of Tartaglia Engineering is employed as Reassessment Consultant. The City Manager is authorized and directed to execute contracts between such firms and the City in a fWRJ ity Attorney. ADOPTED this 26th day of JanuCityIf Atascadero ATTEST: Luu� ! Marcia McClure Torgerson City Clerk of the City of Atascadero RVPUB\KAB\53769 2 CERTIFICATION I, Marcia McClure Torgerson, City Clerk of the City of Atascadero do hereby certify that the foregoing resolution was adopted by the City Council of the City of Atascadero at a regular meeting thereof held on the 26th day of January, 1999, by the following vote of the Council: AYES: Council Members Arrambide, Clay, Lerno, Luna and Mayor Johnson NOES: None ABSENT: None ABSTAINED: None IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Atascadero this 10"day of February, 1999. Marcia McClure Torgerson City Clerk of the City of Atascadero RVPUB\KAB\53769 3