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COUNCIL ACTION CORRESPONDENCE
To Craig A. Graves Subject Refunding of Assessment
City Treasurer District 1I961 Bonds--
October 1986 Tri-City Project
Date 20,
Meeting Date October 20, 1986 Agenda Item No. 13
Action
A public hearing was set for Dec~rnber 8, 1986, concerning the refunding
of all outstanding bonds of the $13,400,000.00 City of San Bernardino,
Improvement Bonds, Assessment District No. 961, Series 1985 (Park
Centre) , pursuant to the Refunding Act of 1984 for 1915 Improvement
Act Bonds.
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cc: City Engineer b#~4/~
Finance /SHAUNA CLARK
Redevelopment Agency City Clerk
..
3.5
SBE077-10/1810S/k1
1l/l3/86
NOTICE OF PUBLIC HEARING BY THE MAYOg AND COMMON COUNCIL
OF THE CITY OF SAN BERNARDJ[N_01 CALIFORNIA, ON A
CERTAIN RESOLUTION OF INTENTION AND ENGINEER'S REPORT
NOTICE IS HEREBY GIVEN of the passage of Resolution No. 86-421,
adopted on October 20, 1986, by the Mayor and Common Council of the City
of San Bernardino entitled, "Resolution of the Mayor and Conunon Council
of the City of San Bernardino, California, Declaring Its Intention to
Refund All Outstanding Bonds of the $13,400,000 City of San Bernardino,
Improvement Bonds, Assessment District No. 961, Series 1985 (Park
Centre), Pursuant to the Refunding Act of 1984 For 1915 Improvement Act
Bonds" (the "Resolution of Intention") and of the Hling with the City
Clerk of a certain Engineer's Report (as hereinafter defined),
A
Engineer's
designated
public hearing
Report has been
as follows:
on the Resolution
scheduled at the
of Intention
date, time
and the
and place
Monday, December 8, 1986
9:00 a.m.
Council Chambers
Ci ty Hall
300 North "D" Street
San Bernardino, California 92418
The Resolution of Intention initiates certain proceedings
pursuant to the Refunding Act of 1984 for 1915 Improvement Act Bonds
(Streets and Highway Code Section 9500, et seq.) (the "Refunding Act of
1984") for the refunding of all outstanding $13,400,000 City of
San Bernardino, Improvement Bonds, Assessment District No. 961, Series
1985 (Park Centre), previously issued by the City of San Bernardino,
California (the "City") on or prior to their maturity dates, in
connection with the formation of Assessment District No. 961 within the
City. The Resolution of Intention states that the property to be
reassessed is the property originally assess<;d in connection with the
creation of Assessment District No. 961 within the City and also
authorizes the levy of a reassessment on the property included in
Assessment District No. 961 for the purpose of issuing new bonds for said
refunding.
The total estimated cost of the proposed reassessment and
refunding as contained in that certain report of the engineer appointed
by the City prepared pursuant to Section 9523 of the Refunding Act of
1984 and on file with the City Clerk (the "Engineer's Report"), and the
Resolution of Intention is $12,450,000. The total amount to be
reassessed against all of the properties within Assessment District
No. 961 is $12,450,000 and the amounts of each proposed reassessment upon
the various parcels of land in said Assessment District No. 961 are as
contained in the Engineer's Report.
- 1 -
Section 9528 of the Refunding Act of 1984 provides that any
persons interested in any of the property to be reassessed having any
objections to the proposed refunding or reassessment may appear and show
cause why said. refunding or reassessment should not be done or carried
out in accordance with the Resolution of Intention and the Engineer's
Report. Protests must be in writing and must be delivered to the City at
or prior to the date and time set for the public hearing, being
December 8, 1986, at the hour of 9:00 a.m. Failure to file a written
protest prior to or at the date and time fixed for the public hearing as
set fo.rth above shall be a waiver of any right which any such interested
persons may have or claim.
Copies of the Resolution of Intention and the Engineer's Report
are on file with the City Clerk of the City for further particulars.
NOTICE GIVEN as of this ~ day of November 1986.
/1:
.-/k/l/'~A/&/;f!
Shauna Clark,
City Clerk of the
City of San Bernardino, California
To be published in The Sun 11/26/86 and 12/3/86.
/1810S
- 2 -
CITe. OF SAN BERNARDU ) - REQUEr,. FOR COUNCIL ACT))N
From:
CRAIG A. GRAVES, City Treasurer
ROGER HARDGRAVE, City Engineer
City Treasurer's Office
Public Works
November 24, 1986
Subject: REFUNDING OF ASSESSMENT DISTRICT
#961 1915 Act Bonds - Tri-City
Oept:
Date:
Synopsis of Previous Council action:
October I, 1984 - Mayor and Common Council adopt Resolution of Intention
for Assessment District #961
March 19, 1986 - Mayor and Common Council authorizes the Issuance and Sale
of Bonds, approves Bond Purchase Contract and awards Bonds
July 20, 1986 - Authorizes execution of Regional Facilities Agreement with
Rancon and Redevelopment Agency for Tri-City Project
October 6, 1986 -Authorizes execution of agreement as Agency to accept land
for Fire Station
October 20, 1986-Adopted Resolution of Intention to Refund Assessment
Recommended motion:
District #961, Set Public Hearing for December 8, 1986
and approved agreements for Bond Counsel, Financ).al
Consultant and Assessment District Engineer
After Public Hearing
ADOPT RESOLUTIONS
CC: Raymond Schweitzer
Acting City Administrator
Contact person: Craig A. Graves - Roqer Hardqrave Phone:
5221 and 5025
Supporting data attached:
Yes
Ward: Third
FUNDING REQUIREMENTS:
Amount: $12,450,000.00 Source: Bond Proceeds
Finance:
Council Notes:
75.0262
AQenda Item No.
NOVEMBER 24, 1986
Attached are the necessary resolutions that need to be
adopted to provide for the refunding of the Assessment
District Bonds for District .961 in the Tri-City Project.
The adoption of the various resolutions will provide for the
issuance. of Bonds in the aggregate principal amount equal to
$12,450,000.00 for the refunding.
There are six resolutions attached that need to be
adopted. They include the following:
1. Resolution of the Mayor and Cornman Council of the
City of San Bernardino, California, Authorizing the Issuance
of an Aggregate Principal Amount of $12,450,000 of Refunding
Bonds of Said City to Refund Previously Issued $13,400,000
City of San Bernardino, Improvement Bonds, Assessment Dis-
trict No. 961, Series 1985 (Park Centre)
2. Resolution of the Mayor and Cornman Council of the
City of San Bernardino, California, Making Certain Findings
and Determinations with Respect to a Certain Report Filed
with the City Clerk pursuant to the Refunding Act of 1984 for
1915 Improvement Act Bonds, and Making Final Confirmation of
Said Report.
3. Resolution of the Mayor and Cornmon Council of the
City of San Bernardino, California, Accepting a Bond Purchase
Agreement and Providing for the Establishment of a Redemption
Fund for the Payment of the Bonds to Be Purchased Pursuant to
Said Agreement.
4. Resolution of the Mayor and Cornmon Council of the
City of San Bernardino, California, appointing a Fiscal Agent
and Approving a Fiscal Agent Agreement for Purposes of
Serving Certain Assessment Bonqs.
5.
City of
Agreement
Resolution of the Mayor and Common Council
San Bernardino, California, approving an
with First Interstate Bank of California
of the
Escrow
6. Resolution of the Mayor and Common Council of the
City of San Bernardino, California, approving the preliminary
official statement and authorizing the preparation of ~ a
Final Official Statement in Connection with the Issuance of
certain Assessment Bonds
The approval of these resolutions will authorize the
issuance of the Refunding Bonds, make certain findings with
the assessments, approve the Engineer's Report and direct it
be recorded, approve a bond purchase agreement with Miller
and Schroeder, approve an agreement with First Interstate to
act as Fiscal Agent and Escrow Bank, and approve a preliminar
y Official Statement.
The Mayor and Cornman Council first established Assess-
ment District #961 in December, 1984. The sale of the bonds
was approved in March of 1985 and the City acquired the off-
site improvements to the Tri-City area. In the interim,
Rancon Realty Funds became the major owner of the properties
with in the district. On July 20, 1986, the City, the
Redevelopment Agency and Rancon all approved a Regional
Facilities Agreement to upgrade the area and deal with
certain changes to enhance the environment. One of the
provisions of this agreement was to assist in the refunding
of Assessment District #961. Rancon requested we proceed
with refunding.
The resolution of intention was passed two weeks ago, at
which time the Mayor and Common Council also set December 8,
1986 as the date for the public hearing.
This refunding will lower the debt to the parcel owners,
as we are in a more favorable market for rates. This
refunding is possible because of the structure of the
original bonds and the dramatic change of interest rates.
Once the issue is
called will be sent. It
March 1,1987 call date.
September 1987.
closed a notice of the bonds being
must be sent sixty days prior to the
All of the bonds will be called by
/}r/ft
SBE077-17/1546S/k1
11/24/86
RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE
ISSUANCE OF AN AGGREGATE PRINCIPAL AMOUNT OF
$12,450,000 OF REFUNDING BONDS OF SAID CITY TO REFUND
PREVIOUSLY ISSUED $13,400,000 CITY OF SAN BERNARDINO,
IMPROVEMENT BONDS, ASSESSMENT DISTRICT NO. 961, SERIES
1985 (PARK CENTRE)
A
Section 1.
Section 2.
Section 3.
Section 4.
Section 5.
Section 6.
Section 7.
Section 8.
Section 9.
Section 10.
Section 11.
Section 12.
Section 13.
Section 14.
Section 15.
Section 16.
Section 17.
Section 19.
Section 20.
Section 2l.
Section 22.
TABLE OF CONTENTS
Definitions.................................. .
Amount, Issuance and Purpose of Bonds.........
Nature of Bonds...............................
Description of Bonds..........................
Interest..................................... .
Place of Payment..............................
Temporary Bonds and Conversion.. ........... ...
Execut ion of Bonds............................
Form, Date and Exchange of Bonds........... ...
Bond Register.................................
Call and Redemption of Bonds Prior
to Maturity.................................
Page
2
5
11
12
13
14
14
14
15
16
16
A.
B.
C.
D.
E.
Terms of Redemption......................
Call and Redemption......................
Notice of Redemption.....................
Redemption Fund..... ...... ............ ...
Partial Redemption of Fully
Registered Bonds.......................
Effect of Redemption.....................
18
18
16
17
17
18
F.
Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Sale of Bonds; Disposition of Bond Proceeds;
Escrow Fund................................. 20
Revenues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Deposits of Revenues into Funds............... 22
Deposit and Investment of Moneys in Funds..... 24
Covenants of the City......................... 26
Covenant l.
Covenant 2 .
Covenant 3 .
Covenant 4.
Covenant 5.
Covenant 6.
Covenant 7.
Covenant 8.
To Carry Out Refunding......... 26
Use of Proceeds................ 26
No Priority.................... 26
Punctual Payment............... 27
Purchase of Parcels Sold at
Foreclosure Sale; Limited
Liability.................... 27
Books and Accounts; Financial
Statements. . . . . . . . . . . . . . . . . . . 27A
Reassessment of Property....... 27A
Protection of Security and
Rights of Bondholders; No
Arbitrage.................... 27A
Superior Court Foreclosure...... ...... ........
Fiscal Agent and Paying Agents................
Lost, Stolen, Destroyed or Mutilated Bonds....
Cancellation of Bonds.........................
28
29
31
31
-i-
Section 23.
Section 24.
Section 25.
Section 26.
Exhibit "A"
Amendments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A.
B.
C.
D.
E.
F.
Calling Bondholders' Meeting.............
Notice of Meet ing. . . . . . . . . . . . . . . . . . . . . . . .
Voting Qualifications....................
Issuer-Owned Bonds.......................
Quorum and Procedure.....................
Vote Requi red. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceedings Constitute Contract; Events of
Default and Remedies of Bondholders.. .......
A.
B.
C.
D.
Events of Default........................
Certain Remedies of Bondholders..........
Non-waiver.............................. .
Actions by Fiscal Agent as Attorney-
in-Fact. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General................................. .
E.
Severability................................. .
Effective Date................................
Form of Bond
-ii-
31
32
32
32
33
33
33
33
34
34
35
35
35
36
36
~ ~
,
RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING
THE ISSUANCE OF AN AGGREGATE PRINCIPAL AMOUNT OF
$12,450,000 OF REFUNDING BONDS OF SAID CITY TO
REFUND PREVIOUSLY ISSUED $13,400,000 CITY OF
SAN BERNARDINO, IMPROVEMENT BONDS, ASSESSMENT
DISTRICT NO. 961, SERIES 1985 (PARK CENTRE)
WHEREAS, the City of San Bernardino, California (the
"City"), is a municipal corporation and a charter city, duly
organized and existing, pursuant to the Constitution and the laws of
the State of California and under the charter of the City and the
powers of the City including the power to issue improvement bonds to
represent and be secured by the assessments which sha 11 be made to
pay the cost of any work or improvement which is charged or assessed
upon real property as provided in Part 3 of Division 10 (Improvement
Bond Act of 1915) of the California Streets and Highways Code (the
"1915 Act") and the power to issue improvement refunding bonds for
the purpose of paying or retiring improvement bonds previously
issued by it as provided in the Refunding Act of 1984 for 1915
Improvement Act Bonds (Streets and Highways Code Section 9500,
et seq.) (the "1984 Act"); and
WHEREAS, pursuant to the adoption of Resolution No. 84-551
(the "1985 Bonds Reso lut ion of Intention"), improvement proceedings
for Assessment District No. 961 (the "District") were initiated by
the Mayor and Common Council on December 17, 1984, and such
proceedings were conducted pursuant to the Ordinances hereinafter
referred to, Division 12 (Municipal Bond Improvement Act of 1913) of
the California Streets and Highways Code (the "1913 Act") and the
1915 Act; and
WHEREAS, the City has heretofore adopted Ordinance
No. 3902, as amended by Ordinance No. MC-426 on January 7, 1985; and
Ordinance No. MC-444 on March 19, 1985 (collectively, the
"Ordinance"), which Ordinance modified certain of the provisions and
procedures prescribed by the 1913 Act and the 1915 Act insofar as
they relate to assessment district formation, assessment proceedings
and the issuance of bonds by the City; and
WHEREAS, the City has heretofore adopted its Resolution
No. 85-116 (the "1985 Resolution"), providing for the issuance of
the "$13,400,000 City of San Bernardino, Improvement Bonds,
Assessment District No. 961, Series 1985 (Park Centre) (the "1985
Bonds"); and
- 1 -
WHEREAS, pursuant to the 1984 Act the City may, at any
time, determine by resolution that the public interest and necessity
requires the refunding of any outstanding 1985 Bonds issued pursuant
to the 1915 Act and may declare its intention to refund the 1985
Bonds and to levy reassessments as security for the refunding bonds;
and
WHEREAS, the City has approved Resolution No. 86-421,
adopted on October 20, 1986 (the "Resolution of Intention"),
pursuant to which the City declared its intention to refund all
outstanding 1985 Bonds and initiated certain proceedings in
connection with said refunding as provided by the 1984 Act; and
WHEREAS, the City deems it necessary to issue at this time
an aggregate principal amount not to exceed $12,450,000 of the
improvement refunding bonds and to use a portion of the proceeds of
such bonds to refund the outstanding 1985 Bonds; and
WHEREAS, the purposes stated above will be accomplished by
issuing at this time an aggregate principal amount not to exceed
$12,450,000 of improvement refunding bonds pursuant to thi s
ReSOlution., to be known as the "City of San Bernardino, California,
Improvement Refunding Bonds, Assessment District No. 961, Series
1986", a portion of the proceeds of which will be set apart and
irrevocably segregated in a special trust fund (to be invested in
Federal Securities, as defined in Section 13 hereof) in such
princi pa 1 amounts which, together wi th the interest earnings on,
will be sufficient to defease the liens and covenants created by
Resolution No. 85-116 by ensuring the payment of the principal of,
premium, if any, and interest on the 1985 Bonds as the same become
due or at certain designated dates (where the City has exercised a
redemption privilege as set forth in Resolution No. 85-116) prior to
the maturity dates of the 1985 Bonds, all as permitted by the 1984
Act.
NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO, CALIFORNIA, DO HEREBY FIND, RESOLVE, DETERMINE AND
ORDER AS FOLLOWS:
Sect ion 1. Def ini t ions. As' used
the following terms shall have the following
context otherwise reguires:
in this
meanings,
Resolution,
unless the
"Bond" or "Bonds" means the aggregate principal amount not
to exceed $12,450,000 of "City of San Bernardino, California,
Improvement Refunding Bonds, Assessment District No. 961, Series
1986", authorized by this Resolution.
"Bondholder" or "Holder of Bonds", or any similar term,
means any person who shall be (i) the holder of any outstanding Bond
payable to bearer, or (ii) the registered owner or his duly
authorized attorney, trustee, representative or assign of any
outstanding Bond which shall at the time be registered so as to be
- 2 -
payable other than to bearer.
voting rights or consents, Bonds
the City, directly or indirectly,
For the purpose of Bondholders'
owned by or held for the account of
shall not be counted.
"Charter" or "City Charter" means the City Charter of the
City of San Bernardino, California.
"City" means the City of San Bernardino, California.
"City Treasurer" or "Treasurer" or
means the officer who is then performing
Treasurer of the City.
"Treasurer of the City"
the functions of the
"Escrow Agreement" means that certain Escrow Agreement by
and between the City and the Fiscal Agent (as Escrow Bank),
appointed by the City pursuant to this Resolution, dated for
convenience as of December 1, 1986, to be approved by a supplemental
resolution.
"Fiscal Agent" or "Paying Agent" means the registrar,
transfer and paying agent appointed by the City pursuant to Section
20 hereof, its successors and assigns, and any other corporation or
association which may at any time be substituted in its place, as
provided in this Resolution.
"Fiscal Year" means the year period beginning on July lst
and ending on the next following June 30th.
"Independent Financial Consultant", "Independent Engineer"
or "Independent Certified Public Accountant" means any individual or
firm engaged in the profession involved, appointed by the City, and
who, or each of whom, has a favorable reputation in the field in
which his opinion or certificate will be given, and:
(I) is in fact independent and not under domination of the
City; and
(2) does not have any substantial interest, direct or
indirect, with the City; and
(3) is no t
employee of the City,
reports to the City.
connected with ,the Gity as an officer or
but who may be regularly retained to make
"Interest Payment Date" means March 2 and September 2 of
each year during which the Bonds are outstanding.
"Law" means the Refunding Act of 1984 for 1915 Improvement
Act Bonds, Streets and Highways Code of the State of California,
Section 9500, et seq., as cited in the recitals hereof.
- 3 -
obtained
totaling
Year.
"Maximum Annual Debt Service" means the largest of the sums
for any Fiscal Year after the computation is made, by
the following "Annual Debt Service" for each such Fiscal
(1) The principal amount of all serial Bonds payable
in such Fiscal Year; and
(2) The interest which would be due during such
Fiscal Year on the aggregate principal amount of Bonds which
would be outstanding in such Fiscal Year if the Bonds
outstanding on the date of such computation were to mature or be
redeemed in accordance with the maturity schedule or schedules
for the Bonds. At the time and for the purpose of making such
computation, the amount of Bonds already retired in advance of
the above-mentioned schedule or schedules shall be deducted pro
rata from the remaining amounts thereon.
"Mayor and Common Council" means the legislative body of
the City acting under and pursuant to the City Charter.
"Opinion of Counsel" means a written opinion of an attorney
or firm of attorneys of favorable reputation in the field of
municipal bond law. Any opinion of such counsel may be based upon,
insofar as it relates to factual matters, information which is in
the possession of the City as shown by a certificate or opinion of,
or representation by, an officer or officers of the City, unless
such counsel knows, or in the exercise of reasonable care should
have known, that the certificate or opinion or representation with
respect to the matters upon which his opinion may be based, as
aforesaid, is erroneous.
"Outstanding", as to the Bonds, means that they are unpaid
or that provision for the full payment and discharge thereof at
maturity or upon redemption thereof prior to maturity through the
setting apart in the Redemption Fund or in a special trust fund (as
the case may be) of money and/or securities, as provided in
Section 11 hereof, sufficient to insure the payment at maturity or
redemption thereof prior to maturity. For the purpose of
determining whether the required consent of Bondholders has been
obtained pursuant to Section 23 .hereof, Bonds owned directly or
indirectly by the City ("Issuer-Owned Bonds") shall not be counted.
"Prepaid Assessments" means those payments
property owner to the City Treasurer which payments
total of the unpaid assessment plus (i) interest on
assessment, (ii) a premium of three percent (3%) on
made by any
include the
the unpaid
the unpaid
- 4 -
assessment, (i i i) the
current tax roll and
calling Bonds, less
Reserve Fund.
unpaid principal and interest posted on the
any delinquent amounts and (iv) any costs of
the proportionate amount credited from the
"Project" means the acquisition of streets, sewers,
fencing, landscaping, water mains, curbs, gutters, paving,
sidewalks, electroliers, street lights, traffic signals, wastewater
treatment plant capacity rights and the construction of bridge
approaches, a bridge over San Timoteo Creek, an extension of
Hospitality Lane, traffic signal changes, electroliers and street
lights, together with appurtenances and appurtenant work related
thereto.
"Regular Record Date" means with
Payment Date the fifteenth (15th) day of
Interest Payment Date.
respect to an Interest
the month preceding such
"Reserve Requirement" means an amount equal to $1,272,215
initially funded from Bond proceeds, which amount shall equal ten
percent (10%) of the original proceeds of the Bonds, less any
reduction in the Reserve Fund as a result of the application of
Section 15(b)(ii) hereof.
"Revenues" means, collectively, that portion of unpaid
reassessments levied against the private property wi thin the
District pursuant to reassessment proceedings and received by the
City which are herein allocated and deposited into a special trust
fund created by this Resolution for the redemption and payment of
the principal of and interest on the Bonds pursuant to the 1984 Act,
which funds include any amounts from the payment of any delinquent
reassessment insta llment payments together wi th any penalt ies and
interest due thereon received by the City after the purchase of the
subject property at a foreclosure sale, from which the funds
necessary for the payment of the principal of and interest on the
Bonds are derived, all as more particularly set forth hereafter in
Section 14 of this Resolution.
"1984 Act" means the Refunding Act of 1984
Improvement Act Bonds, Streets and Highways Code of the
California, Section 9500, et ~., as cited in the recitals
for 1915
State of
hereof.
"1985 Bonds" means the $13,400,000 City of San Bernardino,
Improvement Bonds, Assessment District No. 961, Series 1985 (Park
Centre) authorized by Resolution No. 85-116 of the City.
Section 2.
Under and pursuant
Resolution, Bonds of
$12,450,000 shall be
Amount, Issuance and Purpose of Bonds.
to the Law and under and pursuant to this
the City in the principal amount not to exceed
issued by the City for the purpose of refunding
- 5 -
the 1985 Bonds and the payment of the costs of issuing the Bonds,
and such issue of Bonds is hereby created.
Without limiting the generality of the foregoing, the Bonds
are issued, in part, for the refunding of the 1985 Bonds by
providing funds for the payment of the interest on and principal of
the 1985 Bonds, as the same becomes due, on and before the
respective maturity dates and all expenses incident thereto and to
the issuance of the Bonds. The 1985 Bonds were issued in the years
and in the principal amounts as set forth below:
City of San Bernardino, Improvement
Bonds, Assessment District No. 961,
Series 1985 (Park Centre)
Name:
Principal Amount:
$13,500,000
Dated:
March 1, 1985
Maturing:
Serial Bonds maturing on September 1 on
the dates and in the amounts set forth
below
Issuing Resolution: No. 85-116
Interest Rate:
At the rate of interest per annum as
set forth below:
Maturity Date
(September 1)
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Principal Amount
$ 230,000
250,000
275,000
300,000
330,000
360,000
400,000
440,000
485,000
535,000
590,000
655,000
720,000
800,000
890,000
985,000
1,095,000
1,215,000
1,350,000
1,495,000
- 6 -
Interest Rate
8.50%
9.00%
9.50%
9.75%
10.00%
10.10%
10.20%
10.30%
10.40%
10.50%
10 60%
10.70%
10.80%
10.90%
11. 00%
11. 00%
11. 00%
11. 00%
11. 00%
11. 00%
-
So far as applicable here, Section 9 of said Resolution
No. 85-116 provides:
The City Treasurer, on behalf of the
City, shall receive the proceeds from the sale of
the Bonds, upon the delivery of the Bonds to the
initial purchaser therof (the "Underwriter"), and
shall dispose of such proceeds as follows:
(a) accrued
Underwriter, plus the
capitalized interest
Interest"), shall be
Redemption Fund;
interest paid by the
sum of $2,145,607.50 as
(the "Capitalized
deposited into the
(b) the sum of $1,663,620.00 shall be
deposited into the Special Reserve Fund;
(c) the costs of issuance of the Bonds
shall be paid in accordance with an Officer's
Certificate. As used in this Resolution, the
term "Officer's Certificate" means a certificate
of the City signed by an officer of the City
(including, without limitation, the Treasurer of
the City and the Director of Public Works/City
Engineer of the City), with the seal of the City
affixed, and filed with the City Treasurer. Any
such instrument and supporting opinions or
representations, if any, may, but need not, be
combined in a single instrument; with any other
instrument, opinion or representation, and the
two or more so combined shall be read and
construed as a single instrument;
(d) the "acquisition price" referred
to in paragraph 1 of that certa~n Agreement as to
Disbursement of Acquisition Price for
Improvements within Assessment District No. 961
of the City of San Bernaroino, dated as of
March 1, 1985, by and among Park Centre
Properties, a California general partnership,
Rancho Consultants Realty Fund IV, a California
limited partnership, and the Federal Savings and
Loan Insurance Corporation as Receiver for
San Marino Savings and Loan Association, shall be
disbursed in accordance wi th the terms of such
Agreement or as the parties may otherwise agree
in a written agreement delivered to the City
Treasurer;
- 7 -
(e) an
$134,000.00 shall
Industrial Revenue
Fund;
administrative
be deposited into
Bond Reserve and
fee of
the City's
Development
(f) the sum of $50,000.00
deposited into the Bond Registration
shall be used for the purposes set
Section 8682.1 of the Code; and
shall
Fund,
forth
be
and
in
(g) the balance of the proceeds from
the sale of the Bonds shall be deposited into the
Improvement Fund.
So far as applicable here, Section 10 of said Resolution
No. 85-116 provides:
(a) Deposits in Redemption Fund. All
sums received by the City from the collection of
the assessments for Assessment District No. 961
and of the interest and penalties thereon shall
be deposited into the Redemption Fund and all
sums to become due for the principal of, premium,
if any, and interest on the Bonds shall be paid
by the Paying Agent from said fund and shall not
be paid out of any other funds.
(b) Capitalized Interest. The
assessment payments for each assessed lot or
parcel of property within Assessment District
No. 961 due on December 10, 1985 shall be reduced
(pro rata, if necessary based upon the amount of
such payment due for each such lot or parcel) by
an agg regate amount equa 1 to the sum of (A) the
Capitalized Interest and (B) the total amount
earned on the Capitalized Interest by such date
and, to the extent such sum exceeds such
payments, the assessment payments for each such
assessed lot or parcel due on Apri 1 10, 1986
sha 11 be s imi 1 a r ly reduced by an amount equa 1 to
such excess and, to the extent such excess
exceeds such payments, the assessment payments
for each such assessed lot or parcel due on
December 10, 1986 shall be similarly reduced by
an amount equal to such excess. The Paying Agent
sha 11 use such sum, to the extent such sum is
sufficient. to pay the interest due on the Bonds
on September 1, 1985, on March 1, 1986 and on
September 1, 1986.
- 8 -
(c) Disbursements from Redemption
Fund. The City Treasurer shall disburse to the
Paying Agent, not less than three (3) days prior
to each interest and principal payment date,
sufficient moneys from the Redemption Fund to pay
the principal of, premium, if any, and interest
on the Bonds due on such date.
(d) Accounting Procedures. The City
Di rector of Finance is hereby di rected and
authorized, upon the written request of the City
Treasurer, to establish and thereafter maintain
and employ the payment and accounting procedures
to be used by the City in connection with
Assessment District No. 961, including, without
limitation, accounting for deposits and
withdrawals into and out of the Redemption Fund,
the Special Reserve Fund and the Improvement Fund.
So far as applicable here, Section 11 of said Resolution
No. 85-116 further provides:
(a) Transfer into Redemption Fund.
During the term of the Bonds, the money in the
Special Reserve Fund shall be available for
transfer into the Redemption fund pursuant to
Sections 8800 through 8809 of the Code. The
amounts so advanced shall be reimbursed to the
Special Reserve Fund from the proceeds of
redemption or sale of the lot or parcel for which
payment of delinquent assessment installments was
made from the Special Reserve Fund.
(b) Prepayment of Assessment. If any
assessment is prepaid prior to the final maturity
of the Bonds, the amount of principal which the
assessee is reguired to prepay shall be reduced
by an amount which shall be determined by
multiplying the then current balance of the
Special Reserve Fund by the percentage which the
original unpaid amount of the assessment to be
prepaid is of the total amount of the original
unpaid assessment on all land in Assessment
District No. 961. The reduction in the amount of
principal prepaid shall be compensated for by a
transfer from the Special Reserve Fund to the
Redemption Fund for the Bonds of a like amount.
(c) Investment Income. If at any
the amount of any income realized from
investment of money in the Special Reserve
time
the
Fund
- 9 -
~
plus the remaining principal amount thereof
exceeds an amount equa 1 to fifteen percent (15%)
of the original aggregate principal amount of the
Bonds, less any discount thereon, such excess
shall be transferred to the Redemption Fund and
expended for the advance retirement of Bonds
wi thin thi rteen (13) months of the date of
occurrence of such excess; otherwise, such
investment income shall be retained in the
Special Reserve Fund.
(d) Retirement of Unmatured Bonds.
When the amount in the Special Reserve Fund
equals or exceeds the amount required to retire
the remaining unmatured Bonds (whether by advance
retirement or otherwise), the amount of the
Special Reserve Fund shall be transferred to the
Redemption Fund, and the remaining installments
of principal and interest not yet due from
assessed property owners shall be cancelled
without payment.
So far as applicable here, Section 12 of said Resolution
No. 85-116 further provides:
All moneys in the Improvement Fund
shall be withdrawn only upon warrants, drafts, or
checks of the City, and in accordance with, to
the extent applicable, the terms and conditions
of the Agreement for Acquisition of Improvements
by and between Park Centre Properties, a
California general partnership, Rancho
Consultants Realty Fund IV, a California limited
partnership, and the City, and shall be applied
exclusively to the payment of the cost of the
construction, installation and acquisition of the
improvements referred to in the 'second Recital of
this Resolution, and all expenses incidental
thereto. Any surplus remaining in the
Improvement Fund after payment of all costs and
all legal charges, claims and expenses shall be
used as set forth in the Resolution of Intention.
So far as applicable here, Section 14 of said Resolution
No. 85-116 further provides:
The unpaid assessments shown on the
List of Unpaid Assessments determined by the
Mayor and Common Council to be correct, together
with the interest thereon, shall remain and
constitute a trust fund for the redemption and
- 10 -
-
payment of the Bonds and of the interest which
may be due thereon, and such assessments and each
installation 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 shall be paid.
Annual installments of each assessment
shall be payable in each year preceding the date
of maturity of each of the several series of
Bonds which have been issued, sufficient to pay
the Bonds when due.
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 Ci ty on rea 1 property are payable, and
such assessment installments and such annual
interest on the assessment shall be payable and
become delinquent on the same dat~s and in the
same proportionate amounts and bear the same
proportionate penalties and interest after
delinquency as do the general taxes on real
property in the City.
Section 3. Nature of Bonds. The Bonds shall be and are
obligations of the City and are secured by an irrevocable pledge of,
and a first lien upon, and are payable as to principal, interest and
premium, if any, from the Revenues and other funds as hereinafter
provided. The Bonds, interest thereon and premium, if any, are not
a debt of the City of San Bernardino, the State of California or any
of its political subdivisions, and neither said City, said State nor
any of its political subdivisions is liable on them, nor in any
event sha 11 the Bonds, interest thereon and premium, if any, be
payable out of any funds or properties other than the Revenues as
set forth in this Resolution. The Bonds do not constitute an
indebtedness within the meaning of any constitutional or statutory
debt limitation or restriction. Neither the Mayor and members of
the Common Councilor officers of the City nor any persons executing
the Bonds are liable personally on the Bonds by reason of their
issuance.
The validity of the Bonds is not and shall not be dependent
upon: (i) the completion of the Project or any part thereof, or
(ii) the performance by anyone of his obligation relative to the
Proj ect, or (i i i) the proper expenditures of the proceeds of the
Bonds.
- 11 -
Nothing in this Resolution shall preclude: (a) the payment
of the Bonds from the proceeds of refunding bonds issued pursuant to
the Law, or (b) the payment of the Bonds from any legally available
funds. Nothing in this Resolution shall prevent the City from
making advances of its own funds howsoever derived to any of the
uses and purposes mentioned in this Resolution.
I f the Ci ty sha 11 payor cause to be pa id, or sha 11 have
made provision to pay upon maturity or upon redemption prior to
maturity, to the Holders of the Bonds, the principal of, premium, if
any, and interest to become due thereon, through setting aside trust
funds or setting apart in a reserve fund or special trust account
created pursuant to this Resolution or otherwise, or through the
irrevocable segregation for that purpose in some sinking fund or
other fund or trust account with the City Treasurer or Fiscal Agent
or otherwise. moneys sufficient therefor, including, but not limited
to, interest earned or to be earned on Federal Securities, then the
lien of this Resolution, including, without limitation, the pledge
of the Revenues, and all other rights granted hereby, shall
thereupon cease, terminate and become void and be discharged and
satisfied, and the principal of, premium, if any, and interest on
the Bonds shall no longer be deemed to be outstanding and unpaid;
provided, however, that nothing in this Resolution shall require the
deposit of more than such Federal Securities as may be sufficient,
taking into account both the principal amount of such Federal
Securities and the interest to become due thereon, to implement any
refunding of the Bonds. In such event, the City Treasurer or Fiscal
Agent shall cause an accounting for such period or periods as shall
be requested by the City to be prepared and filed with the City, and
the City Treasurer or Fiscal Agent, upon the request of the City,
shall release the rights of the Bondholders under this Resolution
and execute and deliver to the City all such instruments as may be
desirable to evidence such release, discharge and satisfaction, and
the Fiscal Agent shall pay over or deliver to the City all moneys or
securi ties held by it pu rsuant to thi s Resolut ion which are not
required for the payment or redemption of Bonds not theretofore
surrendered for such payment or redemption. As used in this
paragraph, "Federal Securities" means those described in
Sections 1360 and 1360.1 of the California Financial Code and
includes United States Treasury notes, bonds, bills or certificates
of indebtedness, or obligations for which the faith and credit of
the United States are pledged for the payment of principal and
interest, including the guaranteed portions of small business
administration loans, so long as such loans are obligations for
which the faith and credit of the United States are pledged for the
payment of principal and interest.
Section 4. Description of Bonds. The Bonds shall be in
the principal amount not to exceed $12,450,000 and shall be
designated "CITY OF SAN BERNARDINO, CALIFORNIA, IMPROVEMENT
REFUNDING BONDS, ASSESSMENT DISTRICT NO. 961, SERIES 1986". The
- 12 -
-
Bonds shall be issued in the form of fully registered Bonds in
denominations of $5,000 each or any integral multiple thereof, but
in an amount not to exceed the aggregate principal amount of Bonds
maturing in the year of maturity of the Bond for which the
denomination is specified.
The Bonds shall be dated , 1986, which shall be the
date on or after the date of the recording of the reassessment in
accordance with Section 9604 of the 1984 Act (the "Date of the
Bonds"), and shall mature in the principal amounts and on the dates
as set forth below:
Maturity Date
(September 2)
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Principal Amount
$ 330,000
350,000
370,000
395,000
420,000
450,000
485,000
520,000
555,000
600,000
645,000
695.000
750,000
805,000
870,000
935,000
1,010,000
1,090,000
1,175,000
Interest Rate
6.00%
6.25%
6.50%
6.75%
7.00%
7.20\
7.30%
7.40%
7.50%
7.60%
7.70%
7.70%
7 75%
7.75%
7.80%
7.85%
7.90%
7.95%
8.00%
Section 5. Interest. Said Bonds shall bear interest at
the rates of interest as set forth in Section 4 above. All interest
shall be payable semiannually on March 2 and September 2 of each
year, commencing September 2, 1987. Each Bond shall bear interest
until the principal sum thereof has been paid; provided, however,
that if funds are available for the Payment thereof in full
accordance with the terms of this Resolution, said Bond shall then
cease to bear interest.
The fully registered Bonds shall be numbered in consecutive
numerical order commencing with one (1) upwards and shall be dated
as of the Date of the Bonds, and shall bear the date of
authentication thereon; provided, however, that no Bond shall be
authenticated during the period from the sixteenth (16th) day of the
month preceding any Interest Payment Date and such
- 13 -
-
. -
Interest Payment Date. Each Bond shall bear interest from the Date
of the Bonds as provided above or from the most recent Interest
Payment Date to which interest has been paid or duly provided for,
as the case may be. Interest on the Bonds sha 11 be paid by the
Fiscal Agent (out of the appropriate funds) by check or draft mailed
on the Interest Payment Date to the registered owner as his name and
address appear on the register kept by the Fiscal Agent at the close
of business on the Regular Record Date.
Section 6. Place of Payment. The Bonds and any
premiums upon the redemption thereof prior to maturity shall be
payable in lawful money of the united States of America and (except
for interest on the Bonds which is payable by check or draft as
stated above) shall be payable at the corporate trust office of the
Fiscal Agent in Los Angeles, California (the "Principal Office").
Section 7. Temporary Bonds and Conversion. Any Bonds
issued pursuant to this Resolution may be initially issued in
temporary form exchangeable for definitive Bonds when the same are
ready for delivery. The temporary Bonds may be printed,
lithographed or typewritten, shall be of such denominations as may
be determined by the City, shall be without coupons and may contain
such reference to any of the provisions of this Resolution as may be
appropriate. Every temporary Bond shall be executed by the City and
be issued by the Fiscal Agent upon the same conditions and in
substantially the same form and manner as the definitive fully
registered Bonds. If the City issues temporary Bonds, it wi 11
execute and furnish definitive Bonds without delay, and, thereupon,
the temporary Bonds shall be surrendered for cancellation at the
Principal Office of the Fiscal Agent in Los Angeles, California.
The Fiscal Agent shall deliver in exchange for such temporary Bonds
an equal aggregate principal amount of definitive Bonds of
authorized denominations of this same issue. Until so exchanged,
the temporary Bonds shall be entitled to the same benefits under
this Resolution as definitive Bonds of this same issue delivered
hereunder, except any interest which has accrued thereon shall not
be paid until the exchange has been accomplished.
Section 8. Execution of Bonds. The Bonds shall be
executed on beha If of the City by its Treasurer by his manua 1 or
facsimile signature and shall be attested by its City Clerk by her
manual or facsimile signature, and the seal of the City shall be
impressed, imprinted or reproduced thereon. The foregoing officers
are hereby authorized and directed to sign the Bonds in accordance
with this Section. If any City official or officer whose manual or
facsimile signature appears on the Bonds ceases to be such official
or officer before delivery of the Bonds, his or her signature is as
effective as if he or she had remained in office.
- 14 -
-
The Fiscal Agent shall authenticate the Bonds on
registration and/or exchange to effectuate the registration and
exchange provisions set forth in Section 9, and only such of the
Bonds as shall have endorsed thereon a certificate of
authentication, substantially in the form set forth in the Bond form
as attached hereto as Exhibit A, duly executed by the Fiscal Agent,
shall be entitled to any rights, benefits or security under this
Resolution. No Bond shall be valid or obligatory for any purpose
unless and until such certificate of authentication shall have been
duly executed by the Fiscal Agent, and such certificate of the
Fiscal Agent, upon any such Bond shall be conclusive and the only
evidence that such Bond has been duly authenticated and delivered
under this Resolution. The Fiscal Agent's certificate of
authentication on any Bond shall be deemed to have been duly
executed if signed by an authorized officer of the Fiscal Agent, but
it shall not be necessary that the same officer sign the certificate
of authentication on all of the fully registered Bonds that may be
issued hereunder at anyone time.
Section 9.
shall be issued in
hereto as Exhibit A.
Form, Date and Exchanqe of Bonds. The Bonds
the form of fully registered Bonds as attached
The person in whose name any Bond is registered at the
Regular Record Date with respect to an Interest Payment Date shall
be entitled to receive the interest payable on such Interest Payment
Date (unless such Bond has been called for redemption on a
redemption date which is prior to such Interest Payment Date)
notwithstanding the cancellation of such Bond upon any registration
of transfer or exchange thereof subsequent to such Regular Record
Date and prior to such Interest Payment Date.
A fully registered Bond or fully registered Bonds may be
exchanged for a fully registered Bond or fully registered Bonds. A
fully registered Bond may be exchanged in whole or in part for fully
registered Bonds. Transfer of ownership of a fully registered Bond
or fUlly registered Bonds shall be made by exchanging the same for a
new fully registered Bond or fully registered Bonds. All of such
exchanges sha 11 be made in such manner and upon such reasonable
terms and conditions as may from time to time be determined and
prescribed by the City; provided, however, no such exchange shall be
made between the sixteenth (16th) day preceding any Interest Payment
Date and such Interest Payment Date. Such exchanges shall be free
of any costs or charges to the person, firm or corporation
requesting such exchange, except for any tax or governmental charge
that may be imposed in connection with such exchange. Each Bond
issued pursuant to this Resolution shall be of a denomination which
is $5,000 or a whole multiple thereof and shall be of the same issue.
- 15 -
Section 10. Bond Register. The Fiscal Agent will
or cause to be kept at its Principal Office in the City of
Angeles, California, sufficient books for the registration
transfer of the Bonds, which shall at all times be open
inspection by the City; and, upon presentation for such purpose,
Fisca 1 Agent sha 11, under such reasonable regu lat ions as it
prescribe, register or transfer, or cause to be registered
transferred, on said register, the Bonds as hereinbefore provided.
keep
Los
and
to
the
may
or
Section 11.
Maturity.
Call and. Redemption of Bonds Prior to
A. Terms of Redemption. The outstanding Bonds may be
called before maturity and redeemed as follows:
(a) Redemption. The Bonds shall be subject to
mandatory redemption prior to their respective maturity dates and
redeemed in advance of maturity, in whole or in part, from any
Prepaid Assessments deposited with the City Treasurer for deposit
into the Redemption Fund by any property owner or as a result of the
development and sale of parcels within the District which result in
the Prepaid Assessments, on any March 2 or September 2 after the
date of issuance of the Bonds. Bonds so called for redemption shall
be redeemed at a redemption price for each redeemed Bond equal to
the principal amount thereof plus accrued interest thereon to the
redemption date, together with a premium of three percent (3%).
The
presented for
date."
Interest Payment Date on which Bonds
redemption is herein sometimes called the
are to be
"redemption
(b) Fully registered Bonds ~ssued in denominations
greater than $5,000 will be subject to redemption and payment in
advance of maturity in increments of $5,000 as provided in the
Ordinance and the 1984 Act and the 1915 ~ct. on the second (2nd) day
of March or September. If less than the entire amount of a Bond is
redeemed, a Bond representing the unredeemed portion shall be
reissued to the registered owner thereof.
(c) Determination of which Bond or Bonds are to be
redeemed will be made by the City Treasurer in accordance with the
1984 Act and the 1915 Act. In selecting a Bond for retirement, the
lowest Bond number of the annual series midway to the end of the
Bond term will be chosen. Successive Bonds will be chosen from the
lowest number of each annua 1 series, before and after the ser ies
from which the first Bond number is selected,. so that Bond called
will be a pro rata portion of each annual series. It is intended
that the relationship of unpaid assessmen.ts ,to Bonds outstanding be
altered in as minimal amount as practicable by such call and
redemption of Bonds.
- 16 -
B. Call and Redemption. The City may (and, if required
by Section 15 hereof, shall) by resolution direct the call and
redemption prior to maturity of Bonds by the Fiscal Agent in such
amounts required as are available therefor and shall give notice to
the Fiscal Agent of such redemption at least ten (10) days prior to
the date that the Fiscal Agent shall give notice of redemption to
the Bondholders as set forth below.
The Fiscal Agent, at the direction of the City, may
purchase bonds on the open market, on beha If of the Ci ty, at any
time at a price not to exceed the principal amount of the Bonds plus
the applicable premium and accrued interest, if any, to the date of
purchase plus brokerage fees, if any.
The City Treasurer shall disburse to the Fiscal Agent, not
less than three (3) days prior to each interest and principal
payment date, sufficient moneys from the Redemption Fund to pay the
principal of, premium, if any, and interest on the Bonds due and
payable on such date.
C. Notice of Redemption. In the case of refunding,
notice shall also be given as provided in Section 3 hereof. Notice
of redemption prior to maturity shall be mailed, at least sixty (60)
days prior to the redemption date, to the original purchaser(s) of
the Bonds (or in the case of a syndicate, to the manager thereof)
and to all Bondholders as set forth on the registration books of the
Fiscal Agent; but neither failure to mail such notice nor any defect
in any notice so mailed shall affect the sufficiency of the
providing as for the redemption of any of the Bonds. The notice of
redemption shall (a) state the redemption date; (b) state the
redemption price; (c) state the numbers of the Bonds to be redeemed;
provided, however, that whenever any call includes all of the
outstanding Bonds, the numbers of the Bonds need not be stated;
(d) require that Bonds be surrendered on the redemption date at the
place or places of redemption; (e) state, as to any fully registered
Bonds redeemed in part only, the registered bond numbers and the
principal portion thereof to be redeemed; and (f) state that
interest on the principal portion of the Bonds so designated for
redemption shall cease to accrue from and after such redemption date
and that on said date there shall become due and payable on each of
such Bonds the redemption price thereof. Such notice shall be
deemed to 'have been waived if such notice shall have been mailed by
registered or certified mail to each registered owner of such Bonds
at his address as it appears on the register or at such address as
he may have filed with the Fiscal Agent for that purpose.
The actual receipt by the Holder of any Bond of notice of
such redemption shall not be a condition precedent to redemption,
and failure to receive such notice shall not affect the validity of
the proceedings for the redemption of the Bonds or the cessation of
interest on the redemption date. Notice of redemption of Bonds
shall be given by the Fiscal Agent for and on behalf of the City at
th~ expense of the City.
has been
parties,
A certificate by the Fiscal Agent that notice of redemption
given as herein provided shall be conclusive as against all
and no Bondholder whose Bond is called for redemption may
- 17 -
object thereto
redemption date
actually receive
or object to the cessation of interest on
fixed by any claim or showing that he failed
such notice of call and redemption.
the
to
D. Redemption Fund. Prior to the notice of redemption
being given as above required, the City Treasurer shall establish,
maintain and hold in trust a separate fund which is hereby created
for the purpose of this Resolution entitled "City of San Bernardino,
California, Improvement Refunding Bonds, Assessment District
No. 961, Series 1986, Redemption Fund" (hereinafter referred to as
the "Redemption Fund"); and there shall be set aside in the
Redemption Fund moneys for the purpose and sufficient to pay the
principal of and interest on the Bonds and to redeem, at the
premiums, if any, payable as provided in this Resolution, the Bonds
designated in such notice of redemption. Said moneys must be set
aside in said fund solely for that purpose and shall be applied on
or after the Interest Payment Date or the redemption date, as
applicable, to the payment of principal of, premium, if any, and
interest on the Bonds to be paid or redeemed upon presentation and
surrender of the Bonds.
E. Partial Redemption of Fully Registered Bonds. Upon
surrender of any fully registered Bond redeemed in part only, the
City shall execute and the Fiscal Agent shall authenticate and
deliver to the registered owner thereof, at the expense of the City,
a new Bond or Bonds of authorized denominations equal in aggregate
principal amount to the unredeemed portion of the fully registered
Bond surrendered and of the same interest rate or rates and same
maturity or maturities.
In the event
Bonds to be redeemed
multiples of $5,000.
multiple remaining after
Redemption Fund.
the Bonds are to be redeemed in part, the
shall be selected and redeemed only in
Any amount in excess of the applicable
such selection shall be retained in the
F. Effect of Redemption. Notice of redemption having
been duly given as aforesaid, and moneys for payment of the
principal of, premium, if any, and interest payable upon redemption
of the Bonds being set aside as aforesaid, the Bonds, or parts
thereof, as the case may be, so ca lIed for redemption sha 11, on the
redemption date, become due and payable at the redemption price
specified in such notice, interest on the Bonds, or parts thereof,
as the case may be, so called for redemption shall cease to accrue
and said Bonds, or parts thereof, 'as the case may be, shall cease to
be entitled to any lien, benefit or security under this ReSOlution,
and the Holders of said Bonds shall have no rights in respect
thereof except to receive payment of the redemption price thereof,
and, in the case of partial redemption of fully registered Bonds, to
also receive a new Bond or Bonds for the unredeemed balance as
aforesaid.
- 18 -
All unpaid interest installments which
due and payable on or prior to the redemption
such notice shall continue to be payable to the
of the Bonds but without interest thereon.
shall have become
date designated in
respective Holders
All Bonds, or parts thereof, as the case may be, redeemed
pursuant to the provisions of this Section shall be cancelled upon
surrender of the Bonds and delivered to, or, upon the order of the
City, destroyed as hereinafter provided.
Section 12. Funds. There is hereby created with the
City Treasurer a special trust fund called the "City of
San Bernardino, California, Improvement Refunding Bonds, Assessment
District No. 961, Series 1986, Reserve Fund" (hereinafter sometimes
called the "Reserve Fund"). Such Reserve Fund shall be held and
maintained by the City Treasurer in an amount equal to the Reserve
Requirement. So long as any of the Bonds herein authorized, or any
interest thereon, remain unpaid, the moneys in the Reserve Fund
shall be used for no purposes other than those reguired or permitted
by this Resolution and any resolution providing for the issuance of
refunding bonds pursuant to the 1984 Act.' .
There is hereby created with the City Treasurer a special
temporary trust fund called the "City of San Bernardino, California,
Improvement Refunding Bonds, Assessment District No. 961, Series
1986, Issuance Expense Fund" (herein sometimes called the "Issuance
Expense Fund"). Such Issuance Expense Fund shalJ be held and
maintained by the City Treasurer and shall be used to pay the
necessary expenses in connection with the issuance, sale and
delivery of the Bonds including, but not limited to, all expenses
incident to the calling, retiring or paying of the 1985 Bonds,
including any bond counsel, financial consultants, underwriters,
certified public accountants, rating agency fees, printing and
advertising costs, city administrative expenses and expenses and
fees of the Fiscal Agent and the Escrow Bank, for payment of
interest on the Bonds from the Date of the Bonds to no later than
September 2, 1988, any accrued and unpaid interest on the 1985 Bonds
together with any premium necessary in the calling or retiring of
the 1985 Bonds and any amount that the City pays or transfers, or
has previously paid or transferred, eit)1er from a special reserve
fund or from surplus funds, into the redemption fund for the 1985
Bonds and the penalties and interest thereon, if the amounts and the
penalties and interest thereon are included in and limited to the
particular reassessments levied upon those subdivisions of property
securing the original reassessment installments which are delinquent
and for which the payments or transfers are made. Any amounts
remaining therein after the payment of the costs of issuance shall
be transferred to the Redemption Fund.
Bank,
a
There is
special
hereby created with the Fiscal Agent, as Escrow
tru~t fund called the "City of San Bernardino,
- 19 -
California, Improvement Refunding Bonds,
No. 961, Series 1986, Escrow Fund" (herein
"Escrow Fund"). Such Escrow Fund shall be
other than those required or permitted by
Escrow Agreement.
Assessment District
sometimes called the
used for no purposes
this Resolution or the
Section 13. Sale of Bonds; Disposition of Bond Proceeds;
Escrow Fund. The City may provide by resolution for the sale of the
Bonds in the manner provided by the Law.
A. Prior to or simultaneously with the delivery of the
Bonds, the City Treasurer or fiscal agent or agents for the 1985
Bonds shall sell all securities then held by the City Treasurer or
such fiscal agent or agents pursuant to the 1985 Resolution at the
best price obtainable and shall pay over and deliver to the City
Treasurer or the Fiscal Agent hereunder, as appropriate, all moneys
(including the proceeds of the sale of such securities as aforesaid)
held by it in the 1985 Reserve Fund or 1985 Improvement Fund (after
the completion of all improvements and the payment of all claims)
pursuant to sa id resolution. Such moneys sha 11 be used, to the
extent practicable as hereinafter determined in subsection B(2), for
the refunding of the 1985 Bonds and, for such purpose, shall be
deposited into the Escrow Fund; provided, however, that any surplus
remaining in the 1985 Improvement Fund, after the completion of all
improvements and the payment of all claims, may, at the direction of
the City, be used as a credit upon the reassessments in the manner
provided in Section 10427.1 of the Streets and Highways Code of the
State of California or as otherwise provided in Section 10427 of the
Streets and Highways Code of the State of California.
B. The City Treasurer or the Fiscal Agent, acting on
behalf of the City, as appropriate, shall receive (i) the proceeds
from the sale of the Bonds, upon the deli very of the Bonds to the
purchasers thereof, and (ii) all moneys from the City Treasurer or
fiscal agent or agents for the 1985 Bonds as provided in
subsection A above, and shall dispose of such proceeds and moneys as
follows:
(1) Accrued interest and premium, if any, paid by the
purchasers of the Bonds shall be deposited by the City Treasurer in
the Redemption Fund.
(2) Bond proceeds in an amount which, when added to the
deposits made as set forth above, will be sufficient, taking into
account the interest to be earne-d on any investments in Federal
Securities as allowed by the applicable Treasury Regulations, to
implement the refunding of the 1985 Bonds shall be deposited by the
Fiscal Agent, as Escrow Bank, in the Escrow Fund for the purchase of
the Federal Securities described in the Escrow Agreement and to
provide any required initial cash balances.
(a) The City shall cause calculations to be
diligently made and verified prior to the delivery of the Bonds
as to the amount of Federal Securities necessary to .implement
the refunding of the 1985 Bonds and so defease the liens
established by the aforementioned 1985 Resolution providing for
- 20 -
the issuance of the 1985 Bonds (including payment of the
interest on such 1985 Bonds, as the same becomes due on March 1,
1987, and provide for the call and redemption, together with the
applicable premium, if any, on or before the respective maturity
dates of the 1985 Bonds, and all expenses incident thereto and
to the issuance of the Bonds), taking into account both the
principal amount of such Federal Securities and the interest to
become due thereon. Using such calculations, an amount in the
Escrow Fund equal to the amount of such Federal Securities
which, together with cash, if any, is necessary to implement the
refunding, shall be used by the City for the acquisition of such
Federal Securities. To the extent required by law (as
determined by an Opinion of Counsel based upon the certificate
or opinion of an Independent Financial Consultant or tax counsel
appointed by the City and verified by a certificate or opinion
of an Independent Certified Public Accountant), such Federal
Securities shall be purchased from the issuer thereof or from
any governmental fiscal agent therefor. Any moneys remaining in
the Escrow Fund after the purchase of such Federal Securities
and deposit thereof under the Escrow Agreement and not necessary
to implement the refunding shall be transferred to the Issuance
Expense Fund and used for the purpose of paying all expenses
incident to the refunding of the 1985 Bonds and the issuance of
the Bonds, including, without limiting the generality of the
foregoing, charges of the Fiscal Agent in connection with this
Resolution and charges of the Fiscal Agent and Escrow Bank in
connection with the Escrow Agreement, for the payment of
interest on the Bonds from the date of the Bonds to no later
than September 2, 1988, and for any other payments designated as
costs of issuing the Bonds by the City as further provided in
Section 11 hereof. The Escrow Bank shall withdraw moneys from
the Escrow Fund in sufficient amount and time to permit the
payment by the Fiscal Agent without default of the amount
described above for which the Escrow Fund was established. If
for any reason the amount in the Escrow. Fund shall at any time
be insufficient to carry out the purposes of its establishment,
the City Treasurer shall forthwith transfer the appropriate
amount from the Reserve Fund to the Escrow Bank, who shall
deposit the same into the Escrow Fund. If, for any reason, the
calculations above required are delayed or some amounts have
been inadvertently used incorrectly, the City shall cause
calculations to be diligently made or remade, as the case may
be, as soon as possible after issuance and delivery of the Bonds
and the appropriate adjustments. transfers or additions shall be
made. The Fiscal Agent shall have no responsibility for the
correctness of the calculations.
(b) For the purposes of
Securities" shall mean only direct
States of America or bonds or other
full faith and credit of the United
payment of principal and interest.
the Escrow Fund, "Federal
obligations of the United
obligations for which the
States is pledged for the
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(3) Bond
Requirement shall
Reserve Fund.
proceeds in
be deposited
an
by
amount equal to the
the City Treasurer
Reserve
into the
(4) Bond proceeds in the amount of $ shall be
deposited by the City Treasurer into the Issuance Expense Fund to be
used to pay the necessary expenses in connection with the issuance
and sale of the Bonds and the fees of the Fiscal Agent and the
Escrow Bank.
Sect ion 14. Revenues. The Revenues sha 11 be those
amounts received by the City as payments of the reassessments levied
as to the real property located within the District in accordance
with the 1984 Act, and shall be the sole source of funds pledged by
the City for the payment of the principal of, premium, if any, and
interest on the Bonds.
The Revenues are hereby irrevocably pledged for the payment
of the principal of, premium, if any, and interest on the Bonds, as
in this Resolution provided, and until all of the Bonds, and all
interest thereon, have been paid (or until moneys for that purpose
have been irrevocably set aside) the Revenues shall be applied
solely to the payment of the Bonds and the interest thereon as in
this Resolution provided. Such pledge is for the exclusive benefit
of the Holders of the Bonds and shall be irrevocable.
The Bonds as issued hereunder and the payment of the
reassessments for the debt service obligations on the Bonds, which
reassessments are fi led with respect to the District, together wi th
interest on the Bonds, shall remain and conptitute a trust fund for
the redemption and payment of the Bonds and the interest thereon.
Section 15.
Deposits of Revenues into Funds.
(a) Redemption Fund. All Revenues shall be deposited by
the City Treasurer in the Redemption Fund. The interest on the
Bonds until maturity shall be paid by the Fiscal Agent from the
Redemption Fund. At the maturity of the Bonds, and, after all
interest then due on the Bonds then outstanding has been paid or
provided for, moneys in the Redemption Fund shall be applied to the
payment of the principal of any of such BOnds.
Without limiting the generality of the foregoing and for
the purpose of assuring that the payments referred to above will be
made as scheduled, the Revenues accumulated in the Redemption Fund
shall be used in the following priority:
(i) for the payment of interes t on the Bonds as the
same become due; and
(ii) for the payment of principal on the Bonds as the
same become due; and
- 22 -
'"
(iii) in the event of any advanced maturity and in the
event that the City Treasurer has sufficient surplus moneys in
other funds of the City or there are surplus moneys on deposit
in the Redemption Fund for such retirement, for the payment of
any redemption premium, if any, for the Bonds; provided,
however, that the City shall not be obligated to advance
available funds from the City treasury to cure any deficiency
that may occur in the Redemption Fund but that the City may, in
its sole discretion, so advance such funds to cure any such
deficiency.
(iv) The Fiscal Agent, at the direction of the City,
may purchase bonds on the open market, on behalf of the City, at
any time at a price not to exceed the principal amount of the
Bonds plus the applicable premium and accrued interest, if any,
to the date of purchase plus brokerage fees, if any.
(v) The City Director of Finance or other such
authorized officer of the City is hereby directed and
authorized, upon the written request of City Treasurer to
establish and thereafter maintain and employ the payment and
accounting procedures to be used by the City in connection with
the District, including, without limitation, accounting for
deposits and withdrawals into and out of the redemption fund,
the Reserve Fund and the Issuance Expense Fund as is City
Director of Finance.
(b) Reserve Fund. Pursuant to the 1984 Act, the 1915 Act
and the Resolution of Intention, as subject to the arbitrage
provisions of Section 148(d) of the Internal Revenue Code of 1986,
the Reserve Fund in the amount equal to the Reserve Requirement will
be established from the proceeds of the sale of the Bonds. The
Reserve Fund will constitute a trust fund for the benefit of the
Holders of the Bonds. The Reserve Fund will be maintained, used,
transferred, reimbursed and liquidated as follows:
(i) Whenever there are insufficient funds in the
Redemption Fund to pay the next maturing installment of principal of
or interest on the Bonds, an amount necessary to make up such
deficiency will be transferred by the City Treasurer from the
Reserve Fund, to the extent of available funds, to the Redemption
Fund. The amounts so advanced will be reimbursed from the proceeds
of redemption or sale of the parcels for which payment of delinquent
installments of reassessments and interest thereon or real property
taxes has been made from the Reserve Fund. In the event that there
is a deficiency in the Redemption Fund to pay the principal of and
interest on the outstanding Bonds, the Fiscal Agent, on behalf of
the City, shall pay to the Holders of such outstanding and unpaid
Bonds a proportionate share of the Bonds as the amount of money on
deposit in the Redemption Fund bears to the total amount of the
unpaid principal of the Bonds and the interest which has accrued or
will accrue thereon. Thereafter, as moneys representing payments of
- 23 -
reassessments are periodically deposited by the City Treasurer into
the Redemption Fund, similar proportionate payments shall be made by
the Fisca 1 Agent, on beha If of the Ci ty, to the Ho lders of the
Bonds. In the event that the Reserve Fund is completely depleted
from such advances and prior to reimbursement from resales of
property or delinquency redemptions, payments to the Holders of the
Bonds will be dependent upon reimbursement of the Reserve Fund.
(ii) If any reassessment is prepaid prior to the final
maturity of the Bonds, the amount of principal of the reassessment
to be prepaid will be reduced by an amount which will be determined
by multiplying the then current balance of the Reserve Fund by the
percentage which the original unpaid amount of the Prepaid
Assessment is to the total amount of the original unpaid
reassessment on all land in the District. The reduction in the
amount of principal prepaid shall be compensated for by a transfer
of a like amount from the Reserve Fund to the Redemption Fund.
(iii) Investment income from the Reserve Fund will
remain in the Reserve Fund to the extent necessary to restore the
balance therein to the Reserve Requirement which is an amount equal
to ten percent (10%) of the 0 rig ina 1 proceeds of the Bonds, less any
reduction in the Reserve Fund as a result of the application of
subparagraph (ii) hereof. 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 the Reserve
Requi rement, such excess sha 11 be apport ioned to each parcel upon
which a reassessment remains unpaid and credited against the next
installment or installments due thereon.
(iv) When the balance in the Reserve Fund is
sufficient to retire all Outstanding Bonds (whether by advance
retirement or otherwise), the amount of the Reserve Fund will be
transferred to the Redemption Fund, the remaining installments of
principal and interest not yet due from reassessed property owners
will be cancelled without payment and the Reserve Fund shall be
liquidated upon the retirement of the Bonds.
(v) In the event that the balance in the Reserve Fund
at the time of liquidation exceeds the amount necessary to retire
all Outstanding Bonds, the excess shall be apportioned to each
parcel upon which the individual reassessment remained unpaid at the
time the balance in the Reserve Fund was equal to the amount
necessary to retire all of the Outstanding Bonds. The payments
shall be made in cash to the respective owners of the parcels;
provided, however, that if the excess is less than one thousand
dollars ($1,000) such excess may be transferred by the City
Treasurer for deposit in the General Fund of the City.
Section 16. Deposi t and Investment of Moneys in Funds.
Subj ect to the provis ions of Covenant 9 of Sect ion 17 hereof, all
moneys held by the Ci ty in the Redemption Fund and in the Reserve
- 24 -
Fund, except such moneys which are at the time invested, shall, if
the same are held in time or demand deposits in any bank or trust
company authorized to accept deposits of public funds (including the
banking department of the Fiscal Agent), be secured at all times by
bonds or other obligations which are authorized by law as security
for pUblic deposits, of a market value at least equal to the amount
required by law. Moneys in the Redemption Fund and in the Reserve
Fund shall be invested by the City Treasurer as provided by law and
sUbject to the following restrictions:
(a) Moneys in the Redemption Fund shall be invested only
in obligations of the type or types and which will by their terms
mature on such dates as to ensure that before each Interest Payment
Date there will be in such Fund, from matured obligations and other
moneys already in such Fund, cash equal to the principal and
interest payable on such date, all as may be recommended from time
to time by the opinion of an Independent Financial Consultant
appointed by the City.
(b) Moneys in the Reserve Fund may be temporarily invested
in any authorized investments pursuant to Article I (commencing with
Section 53600) of Chapter 4 of Part 1 of Title 5 of the Government
Code, or in any authorized investments pursuant to law in the case
of money resulting from reassessments levied for the Bonds,
provided, however, that such investments shall be of the type or
types and which will by their terms mature on such date or dates
which shall not be later than the date on which the money may be
requi red fa r the Redemption Fund pursuant to the 1915 Act, a 11 as
may be recommended from time to tim~ bY the opinion of an
Independent Financial Consultant appointed by the City.
Obligations purchased as an investment of moneys in any of
said Funds shall be deemed at all times to be a part of such Fund
and the interest accruing thereon and any gain realized from such
investment shall be credited to such Fund and any loss resulting
from any such authorized investment shall be charged to such Fund
without liability to the City or the members and officers thereof or
to the Fiscal Agent; provided, however, that interest earnings on
investments of moneys in the Reserve Fund shall remain in the
Reserve Fund unless and until the time that any amount of investment
income plus the remaining principal amount thereof exceeds ten
percent (10%) of the Reserve Requi rement and such excess sha 11 be
apportioned to each parcel upon which a reassessment remains unpaid
and credited against the next installment or installments due
thereon. The City Treasurer or the Fiscal Agent, as the case may
be, shall sell at the best price obtainable or present for
redemption any obligation so purchased whenever it shall be
necessary to do so in order to provide moneys to meet any payment or
transfer from such Fund as reguired. by this Resolution. For the
purpose of determining at any given time the balance in any such
Fund, any such investment constituting a part df such Fund shall be
valued at the lesser of either the then estimated or appraised
- 25 -
market value of
provided, however,
valued at the face
such investment
that investments
amount thereof.
or the face amount thereof;
in the Redemption Fund shall be
Notwithstanding the foregoing,
Escrow Fund in Federal Securities and the
set forth in the Escrow Agreement.
the
uses
investments of the
thereof shall be as
In making investment recommendations the
Financial Consultant shall, to the extent reasonably
attempt to maximize interest returns.
Independent
practicable,
Section 17. Covenants of the City. As long as the Bonds
are outstanding and unpaid, the City shall (through its proper
members, officers, agents or employees) faithfully perform and abide
by all of the covenants, undertakings and provisions contained in
this Resolution or in any Bond issued hereunder. including the
following Covenants and agreements for the benefit of the
Bondholders which are necessary, convenient and desirable to secure
the Bonds and wi 11 tend to make them more ma rketable; provided,
however, tha t sa id Covenants do not requi re the Ci ty to expend any
funds other than the Revenues pledged to the payment of the
principal of, premium, if any. and interest on the Bonds:
Covenant 1. To Carry Out Refunding. The City covenants
and agrees that it will diligently carry out and perform all acts,
take all steps and proceedings, provide all notices, and do all acts
and things necessary or convenient for the refunding of the 1985
Bonds that are not prohibited by the united States Constitution or
the California Constitution and in accordance with its duty so to do
under and in accordance with the 1984 Act.
Covenant 2. Use of Proceeds. The City covenants and
agrees that the proceeds of the sale of the Bonds will be deposited
and used as provided in this Resolution and that it will as
permitted under federal and State law use its best efforts to
maintain in the Escrow Fund, Redemption Fund, Issuance Expense Fund
and the Reserve Fund reasonable balances as required hereunder in
connection with the issuance of the Bonds and the refunding of the
1985 Bonds.
Covenant 3. No Priority. The City covenants and agrees
that it will not issue any obligations payable, either as to
principal or interest, from the Revenues which have, or purport to
have, any lien upon the Revenues prior or superior to the lien of
the Bonds herein authorized. The City will not issue any
obligations, payable as to principal or interest, from the Revenues,
which have, or purport to have, any lien upon the Revenues on a
parity with the Bonds herein authorized. Notwithstanding the
foregoing, nothing in this Resolution shall prevent the City from
issuing and selling pursuant to law refunding obligations payable
from and having any lawful lien upon the Revenues, if such refunding
- 26 -
-----------
-
obligations are issued for the purpose of, and are sufficient for
the purpose of, refunding all of the Outstanding Bonds.
Covenant 4. Punctual Payment. The City covenants and
agrees that it will duly and punctually payor cause to be paid the
principal of and interest on each of the Bonds issued hereunder on
the date, at the place and in the manner provided in the Bonds.
without limiting the generality of the foregoing, the City covenants
and agrees that it will make the provisions necessary hereunder for
the payment of interest and the call and redemption and final
payment on maturity of the Bonds, and, in case of any default
therein, will notify the Fiscal Agent and the manager or managers of
the original syndicate that purchased the Bonds from the City.
Covenant 5. Purchase of Parcels Sold at Foreclosure
Sale; Limited Liability. The City covenants that if parcels of
property within the District are sold at foreclosure sale for
delinquent installments on reassessments and if there is no other
purchaser at such sale it will purchase such parcels by bidding in
the amount of its foreclosure judgment. The City shall not be
Obligated to use any available funds (including surplus funds),
other than the Reserve Fund, to pay the delinquent installments and
future installments on the reassessments on such delinquent
parcels. The City may, at its option and in its sole discretion,
use any available surplus funds including those funds on deposit in
the Reserve Fund, to purchase such delinquent parcels or pay the
delinquent installment and future installments on the reassessments
on such parcels. The City may not, however, make a direct transfer
of such available surplus funds to the Redemption Fund following a
reassessment installment delinquency prior to its purchase of the
subject property at a foreclosure sale.
Notwithstanding anything in this Resolution, the Bonds,
Sections 8800 through 8809 of the 1915 Act, the 1984 Act, any other
provision of law, or in any of the Resolutions adopted in connection
with the proceedings for the District to the contrary, the Bonds
shall be a special Obligation of the City, and the City shall not
under any circumstances (including, without limitation, after any
installment of principal or interest of any assessment levied on any
lot or parcel in the District becomes delinquent or after the City
acquires title to any such lot or parcel whether through foreclosure
or otherwise) be Obligated to pay principal, premium, if any, or
interest on the Bonds from any source whatsoever other than the
Redemption Fund (including any transfers thereto from the Reserve
Fund). In addition, in the event the City files an action and
forecloses the lien of any delinquent assessment levied in the
District, the City shall not, except as provided in this sentence,
be liable or otherwise obligated in any way whatsoever to purchase
or otherwise acquire any lot or parcel of property sold at the
execution sale pursuant to the judgment in any such action
foreclosing such lien; provided, however, if there is no other
purchaser at such sale, the City shall purchase such lot or parcel
at such sale, provided that the obligation of the City to so
- 27 -
.
executing the Bonds, shall be liable personally on the Bonds or be
subject to any personal liability for the Bonds or any personal
liability or accountability whatsoever by reason of or in connection
wi th the issuance of the Bonds or by reason of any act or acts or
the failure or omission to take any act or acts (including, without
limitation, a negligent act or omission) in connection with or
related to the operation of the District.
Covenant 6. Books and Accounts; Financial Statements.
The City covenants and agrees that it will at all times keep, or
cause to be kept, proper and current books and accounts (separate
from all other records and accounts) in which complete and accurate
entries shall be made of all transactions relating to the Revenues
and other funds relating to said Project, and will prepare within
one hundred twenty (120) days after the close of each of its Fiscal
Years a complete financial statement or statements for such year in
reasonable detail covering such Revenues and other funds,
accompanied by a certificate or opinion of an Independent Certified
Public Accountant appointed by the City, and will furnish a copy of
such statement or statements to the original purchaser(s) of the
Bonds (in the case of a syndicate, the manager thereof) and any
rating agency which maintains a rating on the Bonds, and upon
written request to any Bondholder.
Covenant 7. Reassessment of Property. The City
covenants that the reassessments and interest thereon shall be
collected on the assessment roll and are subject to reassessment,
amendment and prepayment, and are otherwise subject to all of the
provisions of the 1915 Act in the same manner and subject to the
same remedies on default and to the payment of interest and
penalties on the enforcement thereof as were the original
assessments which were superseded and replaced by the
reassessments. For these purposes, the applicable provisions of
Parts 8, 9, 10, 10.5, 11, 11.1, 13, 14 and is of Division 10 of the
California Streets and Highways Code are hereby referred to and
incorporated herein by reference. The reassessments and any
reassessments which may be issued thereon or in lieu thereof,
together with interest thereon, shall be deposited into the
Redemption Fund for the redemption and payment of the Bonds and the
interest thereon.
Covenant 8. Protection of Security and Rights of
Bondholders; No Arbitrage. The City covenants and agrees to
preserve and protect the security of the Bonds and the rights of the
Bondholders and to defend their rights under all claims and demands
- 27A -
-
,
purchase shall be limited solely to bidding in the amount of such
judgment (and any other amount permitted or required by law) at such
sale and the City shall not be liable or otherwise obligated in
anyway whatsoever to furnish any funds (cash or otherwise) in
connection with such purchase. In the event that the City so
purchases any such lot of parcel, it shall not thereafter be liable
or otherwise obligated in any way whatsoever to pay any delinquent
or future assessments or taxes on such lot or parcel. Neither the
City (except as provided in the first two sentences of this
paragraph), the Mayor, the Common Council, the officers or employees
of the City, any person or entity acting for or on behalf of the
City in connection with the issuance of the Bonds or in connection
with the formation or operation of the District, nor any persons of
all persons and the other covenants and agreements of this
Resolution shall not be deemed or be held to limit the generality of
the foregoing provision of this sentence. The City covenants and
agrees to di rect the Fisca 1 Agent, upon del i very of the Bonds, to
transfer the necessary funds or otherwise effectuate the investment
of such funds as hereinbefore provided. The City covenants and
agrees to contest by court action or otherwise: (a) the assertion by
any officer of any government unit or any other person whatsoever
against the City that (i) the Law is unconstitutional, or (ii) the
Revenues pledged hereunder cannot be paid to the City for the debt
service on the Bonds; or (b) any other action affecting the validity
of the Bonds or diluting the security therefor; or (c) any assertion
by the United States of America or any department or agency thereof
or any other person that the interest received by the Bondholders is
taxable under federal income tax laws. The City covenants and
agrees to take no action which, in the Opinion of Counsel, would
result in (a) the Revenues being withheld unless the withholding
thereof is being contested in good faith, or (b) the interest
received by the Bondholders becoming taxable under federal income
tax laws. The City hereby covenants and agrees that the proceeds of
the Bonds will not be used at any time during the term of the Bonds
which, if such use had been reasonably expected at the date the
Bonds were issued, would have caused such Bonds to be "arbitrage
bonds" within the meaning of Section 148 of the United States
Internal Revenue Code of 1986 and applicable regulations adopted
thereunder by the Internal Revenue Service, and the City hereby
assumes the obligation to comply with such Section 148 and such
regulations throughout the term of the Bonds.
The City further covenants that the amount of money on
deposit in the Reserve Fund shall be reduced proportionately upon
any payment, in whole or in part, of any reassessment and the City
Treasurer shall transfer from the Reserve Fund to the Redemption
Fund an amount equal to the reduction in the reassessment, which
amount shall be used for the redemption of the Bonds.
Section 19. Superior Court Foreclosure. In the event of
delinquency in the payment of any installment of an unpaid
reassessment, the Ci ty may order insti tution of an action in the
St2te Superior Court of the County of San Bernardino to foreclose
- 28 -
the lien of such delinquent reassessment, as authorized in the 1915
Act and the 1984 Act. In such an action the real property SUbject
to the delinquent unpaid reassessment may be sold at judicial
foreclosure sale.
The City covenants with the registered owners of the Bonds
that the City Treasurer and the City Attorney wi 11 cause to be
commenced, and thereafter diligently prosecuted, court foreclosure
proceedings upon any parcel against which there are delinquent
unpaid reassessments as authorized by law.. Unless the City shall,
at its option, have deposited sufficient funds into the Reserve Fund
to maintain therein .an amount equal to the Reserve Requirement after
the application thereof for the payment of any delinquent unpaid
reassessment such foreclosure proceedings shall be commenced within
one hundred twenty (120) days fOllowing the date of such a
delinquency.
Section 20. Fiscal Agent and Paying Agents. The City
hereby appoints First Interstate Bank of California, Los Angeles,
California, as Fiscal Agent to act as the transfer agent, registrar
and paying agent of the City for the purpose of paying principal of,
premium, if any, and interest on the Bonds as provided in this
Resolution, and to perform such other duties and powers of the
Fiscal Agent as are prescribed in this Resolution. As used in this
Resolution, "Fiscal Agent" means First Interstate Bank of California
and its successors and any corporation resulting from or surviving
any consolidation or merger to which it or its successors may be a
party and any successor Fiscal Agent at the time serving as
successor Fiscal Agent under this Resolution.
The City Treasurer is hererby authorized and directed to
enter into, in the name of the City, such agreements and credit
arrangements with the Fiscal Agent as shall be necessary and
desirable in order to enable the Fiscal Agent to carry out the
duties of its office. The Fiscal Agent is hereby authorized to
redeem the Bonds and corresponding interest on the Bonds when duly
presented for payment at maturity, and on redemption prior to
maturity, and to cancel all Bonds and corresponding interest on the
Bonds upon payment thereof, and to return the same cancelled to the
City Treasurer. The Fiscal Agent shall keep accurate records of all
Bonds and interest paid and discharged.
The City may remove the Fiscal Agent initially appointed or
any successor thereto and in such case shpll forthwith appoint a
successor thereto but any successor shall be a bank or trust company
doing business and having an office in the City of Los Angeles,
having a combined capital and surplus of at least $50,000,000. The
Fiscal Agent herein appointed or any substituted Fiscal Agentmay at
any time resign as such by writing filed with the City in which
event the City shall forthwith appoint a substitute Fiscal Agent or
Paying Agent and the resignation shall become effective upon such
appointment. In the event that the Fiscal Agent or any successor
becomes incapable of acting as such, the City shall forthwith
- 29 -
appoint a substitute Fiscal Agent or Paying Agent. Any bank or
trust company into which the Fiscal Agent may be merged or with
which it may be consolidated shall become the Fiscal Agent without
action of the City. The Fiscal Agent may become the owner of any of
the Bonds authorized by this Resolution with the same rights it
would have had if it were not the Fiscal Agent.
The recitals of the facts, covenants and agreements herein
and in the Bonds shall be taken as statements, covenants and
agreements of the City, and the Fiscal Agent assumes no
responsibility for the correctness of the same, makes any
representations as to the validity or sUfficiency of this Resolution
or of the Bonds or interest payments, or sha 11 incur any
responsibility in respect thereto, other than in connection with the
duties or obligations herein or in the Bonds assigned to or imposed
upon it. As to any actions taken or performed at the wr it ten
direction of the City, or, upon the recommendation of an Independent
Financial Consultant appointed by the City, the Fiscal Agent shall
not be liable in connection therewith, except for its own negligence
or default.
The recitals of fact and all promises, covenants and
agreements herein and in the Bonds shall be taken as statements,
promises, covenants and agreements of the City, and the Fiscal Agent
shall have no responsibility for the correctness of the same, and
makes no representations as to the validity or sufficiency of this
Resolution or of the Bonds, and shall incur no responsibility in
respect thereof, other than in connection with the duties or
obligations herein or in the Bonds assigned to or imposed upon the
Fiscal Agent. The Fiscal Agent shall not be liable in connection
wi th the performance of its dut ies hereunder, except for its own
negligence or default.
At the option of the City it may provide for Paying Agents
in other cities for the convenience of the Bondholders. All Paying
Agents shall serve at the sole discretion of the City.
The Fiscal Agent shall be protected in acting upon any
notice, resolution, request, consent, order, certificate, report,
bond or other paper or document believed by it to be geniune and to
have been signed or presented by the proper party or parties. The
Fisca I Agent may consult wi th counsel, who may be counse I to the
City, with regard to legal questions, and the opinion of such
counsel shall be full and complete authorization and protection and
respect to any action taken or suffered hereunder in good faith and
in accordance therewi th. The Fiscal Agent sha 11 not be bound to
recognize any person as the holder of a Bond unless and until such
Bond is submitted for inspection, if reguired by the Fiscal Agent,
his title thereto satisfactorily established, if disputed. Whenever
in the administration of its duties under this Resolution, the
Fiscal Agent shall deem it nece!5sary or desirable that a matter be
proved or established prior to taking or suffering any action
hereunder, such matter (unless other evidence in respect thereof is
- 30 -
specifically prescribed herein) may, in the absence of bad faith on
the part of the Fiscal Agent, be deemed to be conclusively proved
and established by a certificate of the City, and such certificate
shall be full warrant to the Fiscal Agent for any action taken or
suffered under the provisions of this Resolution or any supplemental
Resolution; provided, however, that in its discretion the Fiscal
Agent may, in lieu thereof, accept other evidence of such matter and
may require such additional evidence as it may seem reasonable.
Section 21. Lost, Stolen, Destroyed or Mutilated Bonds.
In the event that any Bond is lost, stolen, destroyed or mutilated,
the City will cause to be issued a new Bond similar to the original
to replace the same in such manner and upon such reasonable terms
and conditions, including the payment of costs and the posting of a
surety bond if the City deems such surety bond necessary, as may
from time to time be determined and prescribed by resolution. The
City may authorize such new Bond to be signed and authenticated in
such manner as it determines in said resolution.
Section 22. Cancellation of Bonds. All Bonds
surrendered to the Fiscal Agent or any Paying Agent for payment at
the maturity thereof, or, in the case of call and redemption prior
to maturity, at the redemption date, shall upon payment therefor be
cancelled immediately and forthwith transmitted to the Treasurer or
destroyed by the Fiscal Agent at the direction of the City, in which
latter event a certificate of destruction shall forthwith be
transmitted to the City Treasurer. Any Bonds purchased by the
Fiscal Agent as aforesaid shall be cancelled immediately and
forthwith transmitted to the City Treasurer or destroyed as
aforesaid. All of the cancelled Bonds not theretofore destroyed
shall remain in the custody of the City Treasurer until destroyed
pursuant to due authorization.
Section 23. Amendments. This Resolution, and the rights
and obligations of the City and of the Holders of the Bonds issued
hereunder, may be modified or amended at any time by supplemental
resolution adopted by the City: (a) without the consent of
Bondholders, if such modification or amendment is for the purpose of
curing any ambiguities, defects or inconsistent provisions in this
Resolution or to insert such provisions clarifying matters or
questions arising under this Resolution as are necessary and
desirable to accomplish the same, provided that such modifications
or amendments do not adversely affect the rights of the Bondholders,
as shown by an Opinion of Counsel, and/or (b) with the consent of
Bondholders holding sixty percent (60%) in aggregate principal
amount of the outstanding Bonds, exclusive of Bonds, if any, owned
by the City, and obtained as hereinafter set forth; provided,
however, that no such modification or amendment shall, without the
express consent of the Holder or registered owner of the Bond
affected, reduce the principal amount of any Bond, reduce the
interest rate payable thereon, extend its maturity or the times for
paying interest thereon or change the monetary medium in which
- 31 -
principal and interest is payable, or reduce the percentage of
consent required for amendment or modification.
Any act done pursuant to a modification or amendment so
consented to shall be binding upon the Holders of all of the Bonds,
and shall not be deemed an infringement of any of the provisions of
this Resolution or of the 1984 Act, whatever the character of such
act may be, and may be done and performed as fully and freely as if
expressly permitted by the terms of this Resolution, and after such
consent relating to such specified matters has been given, no
Bondholder shall have any right or interest to object to such action
or in any manner to question the propriety thereof or to enjoin or
restrain the City or any officer thereof from taking any action
pursuant thereto.
A. Callinq Bondholders' Meetinq. If the City shall
desire to obtain any such consent it shall duly adopt a resolution
calling a meeting of Bondholders for the purpose of considering the
action the consent to which is desired.
B. Notice of Meetinq. Notice specifying the purpose,
place, date and hour of such meeting shall be published once in a
financial newspaper or journal of national circulation published in
the City of New York, New York, such publication to be not less than
sixty (60) days nor more than ninety (90) days prior to the date
fixed for the meeting. Such notice shall set forth the nature of
the proposed action consent to which is desired. The City shall, on
or before the publication of such notice, cause to be mailed a
similar notice, postage prepaid, to the respective registered owners
thereof at their addresses appearing on the bond register in the
hands of the Fiscal Agent. The place, date and hour of holding such
meeting and the date or dates of publishing and mailing such notice
shall be determined by the City in its discretion.
The actual receipt by any Bondholder of notice of any such
meeting shall not be a condition precedent to the holding of such
meeting, and failure to receive such notice shall not affect the
validity of the proceedings thereat. A certificate by the City
Clerk approved by resolution of the City, that the meeting has been
called and that notice thereof has been given as herein provided,
shall be conclusive as against all parties and it shall not be open
to any Bondholder to show that he failed to receive actual notice of
such meeting.
C. Voting Qualifications. The Fiscal Agent shall prepare
and deliver to the chairman of the meeting a statement of the names
and addresses shown on the registration books of the Fiscal Agent of
the registered owners of fully registered Bonds, such statement to
show maturities, serial numbers and the principal amounts so that
voting qualifications can be determined. No Bondholders shall be
entitled to vote at such meeting unless their names appear upon such
statement. No Bondholders shall be permitted to vote with respect
- 32 -
to a larger aggregate principal amount of Bonds than is set against
their names on such statement.
D. Issuer-Owned Bonds. The City covenants that it will
present at the meeting a certificate, signed and verified by one
member thereof' and by the City Treasurer, stating the serial
numbers, maturities and principal amounts of all Bonds owned by, or
held for account of, the City, directly or indirectly. No person
shall be permitted at the meeting to vote or consent with respect to
any Bond appearing upon such certificate, or any Bond which it shall
be established at or prior to the meeting is owned by the City,
directly or indirectly, and no such Bond (in this Resolution
referred to as "issuer-owned Bond") shall be counted in determining
whether a quorum is present at the meeting.
E. Quorum and Procedure. A representation of at least
sixty percent (60%) in aggregate principal amount of the Bonds then
outstanding (exclusive of issuer-owned Bonds, if any) shall be
necessary to constitute a quorum at any meeting of Bondholders, but
less than a quorum may adjourn the meeting from time to time, and
the meeting may be held as so adjourned without further notice,
whether such adjournment shall have been had by a quorum or by less
than a quorum. The City shall, by an instrument in writing, appoint
a temporary chairman of the meeting, and the meeting shall be
organized by the election of a permanent chairman and secretary. At
any meeting each Bondholder shall be entitled to one vote for every
$5.000 principal amount of Bonds with respect to which he shall be
qualified to vote as aforesaid, and such vote may be given in person
or by proxy duly appointed by an instrum~nt in writing presented at
the meeting. The City and/or the Fiscal Agent, by their duly
authorized representative and counsel, may attend any meeting of the
Bondholders, but shall not be required to do so.
F. Vote Required. At any such meeting held as aforesaid
there shall be submitted for the consideration and action of the
Bondholders a statement of the proposed action consent to which is
desired, and if such action shall be consented to and approved by
Bondholders holding at least sixty percent (60%) in aggregate
principal amount of the Bonds then Outstanding (exclusive of
issuer-owned Bonds) the chairman and secretary of the meeting shall
so certify in writing to the City, and such certificate shall
constitute complete evidence of consent of the Bondholders under the
provisions of this Resolution. A certificate signed and verified by
the chairman and the secretary of any such meeting shall be
conclusive evidence and the only competent evidence of matters
stated in such certificate relating to proceedings taken at such
meeting.
Section 24. Proceedings Constitute Contract; Events of
Default and Remedies of Bondholders. The provisions of this
Resolution, of the resolutions providing for the sale of the Bonds
and awarding the Bonds and fixing the interest rate thereon, and of
any other resolution supplementing or amending this Resolution,
- 33 -
shall constitute a contract between the City and the Bondholders and
the provisions thereof shall be enforceable by any Bondholder for
the equal benefit and protection of all Bondholders similarly
situated by mandamus, accounting, mandatory injunction or any other
suit, action or proceeding at law or in equity that is now or may
hereafter be authorized under the laws of the State of California or
the united States of America in any court of competent
jurisdiction. Said contract is made under and is to be construed in
accordance with the laws of the State of California, except as it is
subject to the exercise by the United States of America of powers
delegated to it by the Constitution of the United States. The
following provisions shall not limit the generality of the foregoing.
A. Events of Default. If one or more of the following
events ("events of default") shall happen, that is to say--
(1) if default shall be made in the due and punctual
payment of any installment of interest on any Bond when and as such
interest installment shall become due and payable, and such default
shall have continued for a period of thirty (30) days;
(2) if default shall be made in the due and punctual
payment of the principa 1 of any Bond when and as the same sha II
become due and payable, whether at maturity as therein expressed, by
declaration or otherwise;
(3) if default shall be made by the City in the observance
of any of the covenants, agreements or conditions contained in this
Resolution or in the Bonds, and such default shall have continued
for a period of thirty (30) days; or
(4) if the City sha II fi le a peti tion or answer seeking
reorganization or arrangement under the federal bankruptcy laws or
any other applicable law of the united States of America, or if a
court of competent jurisdiction shall approve a petition, filed with
or without the consent of the City, seeking reorganization under the
federal bankruptcy laws or any other applicable law of the United
States of America, or if, under the provisions of any other law for
the relief or aid of debtors, any court of competent jurisdiction
shall assume custody or control of the City or of the whole or any
substantial part of its property.
Then, and in each and every such case during the
continuance of such event of default, the Fiscal Agent or
Bondholder(s) may, but shall not be required to, exercise any and
all remedies deemed appropriate in the circumstances.
B. Certain Remedies of Bondholders. Any Bondholder shall
have the right, for the equal benefit and protection of all
Bondholders similarly situated--
(1) by mandamus, suit,
City and its members, officers,
action or proceeding, to compel the
agents or employees to perform each
- 34 -
-
and every term, provision
and in the Bonds, and to
covenants and ag reements
duties imposed upon it by
and covenant contained in this Resolution
require the carrying out of any or all such
of the City and the fulfillment of all
the 1984 Act;
(2) by suit, action or proceeding in eguity, to enjoin any
acts or things which are unlawful, or the violation of any of the
Bondholders' rights; or
(3) upon the happening of
in this Section), by suit, action
competent jurisdiction, to require
employees to account as if it and
express trust.
any event of default (as defined
or proceeding in any court of
the City and its members and
they were the trustees of an
C. Non-waiver. The provisions of this Resolution and of
any other resolution supplementing or amending this Resolution,
shall constitute a contract between the City and the Bondholders and
the provisions thereof shall be enforceable by any Bondholder for
the equal benefit and protection of all Bondholders similarly
situated, by mandamus, accounting, mandatory injunction or any other
suit, action or proceeding at law or in equity that is now or may
hereafter be authorized under the laws of the State of California in
any court of competent jurisdiction. Such contract is made under
and is to be construed in accordance with the laws of the State of
California.
No remedy conferred hereby upon any Bondholder is intended
to be exclusive of any other remedy, but each such remedy is
cumulative and in addition to every other remedy and may be
exercised without exhausting and without regard to any other remedy
conferred by the 1984 Act or any other law of the State of
California or the United States of America. No waiver of any
default or breach of duty or contract by any Bondholder shall affect
any subsequent default or breach of duty or contract or shall impair
any rights or remedies on said subsequent default or breach. No
delay or omission of any Bondholder to exercise any right or power
accruing upon any default shall impair any such right or power or
shall be construed as a waiver of any such default or acquiescence
therein. Every substantive right and every remedy conferred upon
the Bondholders may be enforced and exercised as often as may be
deemed expedient. In case any suit, action or proceeding to enforce
any right or exercise any remedy shall be brought or taken and
should said suit, action or proceeding be abandoned, or be
determined adversely to the Bondholders, then, and in every such
case, the City and the Bondholders shall be restored to their former
positions, rights and remedies as if such suit, action or proceeding
had not been brought or taken.
D. Actions by Fiscal Agent as Attorney-in-Fact. Any
suit, action or proceeding which any Holder of Bonds shall have the
right to bring to enforce any right or remedy hereunder may be
brollght by the Fiscal Agent for the equal benefit and protection of
- 35 -
all Holders of Bonds similarly situated and the Fiscal Agent is
hereby appointed (and the successive respective Holders and
registered owners of the Bonds issued hereunder, by taking and
holding the same, shall be conclusively deemed so to have appointed
it) the- true and lawful attorney-in-fact of the respective Holders
and registered owners of the Bonds for the purpose of bringing any
such suit, action, or proceeding and to do and perform any and all
acts and things for and in behalf of the respective Holders and
registered owners of the Bonds as a class or classes, as may be
necessary or advisable in the opinion of the Fiscal Agent as such
attorney-in-fact.
E. General. After the
Bonds, this Resolution, and any
shall be irrepealable, but shall
amendment to the extent and in
Resolution, but to no greater extent
issuance and delivery of the
supplemental resolutions hereto,
be subject to modification or
the manner provided in this
and in no other manner.
CUSIP identification numbers will be imprinted on the
Bonds, but such numbers shall not constitute a part of the contract
evidenced by the Bonds and no liability shall hereafter attach to
the City or any of the officers or agents thereof because of or on
account of said numbers. Any error or omission with respect to said
numbers shall not constitute cause for refusal by the successful
bidder to accept delivery of and pay for the Bonds.
Section 25. Severability. If any covenant, agreement or
provision, or any portion thereof, contained in this Resolution, or
the application thereof to any person or circumstance, is held to be
unconstitutional, invalid or unenforceable, the remainder of this
Resolution and the application of any such covenant, agreement or
provisions, or portion thereof, to other persons or circumstances,
shall be deemed severable and shall not be affected, and this
Resolution and the Bonds issued pursuant hereto shall remain valid
and the Bondholders shall retain all valid rights and benefits
accorded to them under this Resolution and the Constitution and laws
of the State of California. If the provisions relating to the
appointment and duties of a Fiscal Agent (paying agent) are held to
be unconstitutional, invalid or unenforceable, said duties shall be
performed by the City Treasurer.
- 36 -
~-~_.~_."~--
------ -
Section 26.
effect upon adoption.
I HEREBY
adopted by the
San Bernardino at
held on the
the following vote,
CERTIFY
Mayor
a
---~.-
- -
"'.
Effective Date.
This Resolution shall take
that the foregoing
and Common Counci 1
resolution
of the
meeting
day of
to wit:
AYES:
Council Members
NAYS:
ABSENT:
was duly
City of
thereof,
19 8 6 , by
City Clerk
day of
The foregoing resolution is hereby approved this
, 1986.
Approved as to form:
Jt~o!~
- 37 -
Mayor of the City of
San Bernardino
EXHIBIT "A"
(FORM OF BOND)
FORM OF FULLY REGISTERED BOND
UNITED STATES OF AMERICA
STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO
Registered
Registered
No.
$
CITY OF SAN BERNARDINO, CALIFORNIA
IMPROVEMENT REFUNDING BOND
ASSESSMENT DISTRICT NO. 961
SERIES 1986
Interest Rate
Maturity Date
Date of the Bonds
Cusip Number
, 1986
Registered Owner:
Principal Amount:
Dollars
Under and by virtue of the Refunding Act of 1984 for 1915
Improvement Act Bonds (commencing with Section 9500 of the
California Streets and Highways Code) (the "Act"), the City of
San Bernardino, County of San Bernardino, State of California (the
"City") will out of the Redemption Fund established under the
Resolution of Issuance (as hereinafter defined) for the payment of
the Bonds issued upon the unpaid portion of reassessments made upon
the properties within Assessment District No. 961 (the "District")
more fully described in proceedings taken pursuant to Resolution of
Intention No. 86-421, adopted by the Mayor and Common Council of the
City on the 20th day of October, 1986 (the "Resolution of
Intention"), pay to the Registered Owner set forth above or
registered assigns (herein sometimes referred to as "registered
owner"), on the Maturity Date stated above, the Principal Amount
stated above, in lawful money of the United States of America and
will pay in a like manner interest from the Date of the Bonds as
provided above or from the most recent Interest Payment Date, to
which interest has been paid or duly provided for. This Bond shall
be dated December _, 1986 (the "Date of the Bonds") and shall bear
the date of authentication hereon; provided, however, that no Bond
shall be authenticated and registered during the period from the
sixteenth (16th) day of the month preceding any Interest Payment
Date and such Interest Payment Date. This Bond shall bear interest
until the payment of the Principal Amount stated above shall have
A-I
been discharged; provided, however, that if funds are available for
the payment hereof in full accordance with the terms of the
Resolution of Issuance, this Bond shall then cease to bear
interest. This Bond shall bear interest at the Interest Rate stated
above, payable semiannually on March 2 and September 2 in each year
(each an "Interest Payment Date") commencing on March 2,1987. Both
the principal hereof and redemption premium hereon are payable at
the corporate trust office of First Interstate Bank of California as
Transfer Agent, Registrar, and Paying Agent in Los Angeles,
California (the "Fiscal Agent"), and the interest hereon is payable
by check or draft mailed to the registered owner hereof at the
owner's address as it appears on the records of the Fiscal Agent or
at such address as may have been filed with the Fiscal 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 thereof is refused upon the sole ground that there are not
sufficient moneys in said Redemption Fund with which to pay same.
If it is not presented at maturity any interest thereon will run
until maturity.
The Bonds shall be and are obligations of the City and are
secured by an irrevocable pledge of, and a first lien upon, and are
payable as to principal, interest and premium, if any, from the
Revenues (as defined in the Resolution of Issuance) and which
constitute the reassessment lien, and other funds as provided in the
Resolution of Issuance. The Bonds, interest thereon and premium, if
any, a re not a debt of the Ci ty of San Bernardi no, the Sta te of
California or any of its political subdivisions, and neither said
City, said State nor any of its political subdivisions is liable on
them, nor in any event shall the Bonds, interest thereon and
premium, if any, be payable out of any funds or properties other
than the Revenues as set forth in the Resolution. The Bonds do not
constitute an indebtedness within the meaning of any constitutional
or statutory debt limitation or restriction. Neither the Mayor nor
the members of the Common Councilor officers of the City nor any
persons executing the Bonds are liable personally on the Bonds by
reason of their issuance.
REFERENCE IS HEREBY MADE TO THE PROVISIONS OF THIS BOND SET
FORTH ON THE REVERSE SIDE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR
ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH IN THIS PLACE.
This Bond shall not be entitled to any benefit under the
Act or the resolution of the Mayor and Common Council authorizing
the issuance of the 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
dated and signed by the Fiscal Agent.
A-2
It is hereby recited, certified and declared that any and
all acts, conditions and things required to exist, to happen and to
be performed precedent to and in the issuance of this Bond exist,
have happened and have been performed in due time, form and manner
as reguired by the Constitution and the laws of the State of
California.
A-3
~_.--- ---
-
~- -
IN WITNESS WHEREOF, the City of San Bernardino, California,
has caused this Bond to be signed in facsimile by the Treasurer of
said City and attested by the City Clerk and has caused its
corporate seal to be reproduced in facsimile hereon all as of the
day of December, 1986.
CITY OF SAN BERNARDINO
City Clerk of the City of
San Bernardino, California
Treasurer of the City of
San Bernardino, California
[SEAL]
A-4
CERTIFICATE OF AUTHENTICATION AND REGISTRATION
FIRST INTERSTATE BANK OF
CALIFORNIA
Fiscal Agent
Date of Authentication:
By:
Authorized Signatory
A-S
REVERSE SIDE OF BOND
This Bond is one of several serial maturities of Bonds of
like date, tenor, and effect, but differing in registered amounts,
maturities, and interest rates, issued by the City under the Act and
the Resolution of Issuance, for the purpose of redeeming the
$13,400,000 City of San Bernardino, Improvement Bonds, Assessment
District No. 961, Series 1985 (Park Centre) (the "1985 Bonds") as
described in the proceedings, and is secured by the moneys in the
Redemption Fund established under the Resolution of Issuance and by
the unpaid portion of the reassessments which shall be levied or
issued upon the properties within the District, and, including
principal and interest, is payable exclusively out of said
Redemption Fund.
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 Fiscal 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 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 therefor.
The Bonds shall be registered only in the name of an
individual (including joint owners), a corporation, a partnership,
or a trust.
Nei ther the Fisca 1 Agent or any successor issuing agency
nor any registration agent shall be required to make such exchange
or registration of transfer of Bonds from the sixteenth (16th) day
of the month preceding any Interest Payment Date and such Interest
Payment Date.
The Fiscal Agent or any successor issuing
registration agent may treat the registered owner
absolute owner for all purposes, and the Fiscal
successor issuing agency and any registration agent
affected by any notice to the contrary.
agency
hereof
Agent
sha 11
and
as
or
not
any
the
any
be
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 lliaturity upon the second (2nd) day
of March or September in any year by giving at least sixty (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
Fiscal Agent by paying the principal of and accrued interest hereon
to the redemption date, together with a premium equal to three
percent (3%) of the principal amount.
A-6
---'~'~~-""---'-
-
The
presented for
date."
Interest Payment Date on which Bonds are to be
redemption is herein sometimes called the "redemption
If less than the entire amount of a Bond is redeemed, a
Bond representing the unredeemed portion shall be reissued to the
registered owner thereof. Determination of which Bond or Bonds are
to be redeemed will be made by the City Treasurer in accordance with
the Act. In selecting a Bond for retirement, the lowest Bond number
of the annual series midway to the end of the Bond term wi II be
chosen. Successive Bonds will be chosen from the lowest number of
each annual series, before and after the series from which the first
Bond number is selected, so that Bonds called will be a pro rata
portion of each annual series. It is intended that the relationship
of unpaid reassessments to Bonds outstanding be altered in as
minimal amount as practicable by such call and redemption of Bonds.
The actual receipt by the Holder of any Bond (as defined in
the Resolution of Issuance) of notice of such redemption shall not
be a condition precedent to redemption, and failure to receive such
notice shall not affect the validity of the proceedings for the
redemption of the Bonds or the cessation of interest on the
redemption date. Notice of redemption of Bonds shall be given by
the Fiscal Agent for and on behalf of the City at the expense of the
City.
The Revenues shall be those amounts received by the City as
payment of the reassessment levied as to the real property located
within the District in accordance with the Act, and shall be the
sole source of funds pledged by the City for the payment of the
principal of, premium, if any, and interest on the Bonds.
The Resolution of Issuance, and the rights and obligations
of the City and of the Holders of the Bonds issued thereunder, may
be modified or amended at any time by supplemental resolution
adopted by the City: (a) without the consent of Bondholders (as
defined in the Resolution of Issuance), if such modification or
amendment is for the purpose of curing any ambiguities, defects or
inconsistent provisions in the Resolution of Issuance or to insert
such provisions clarifying matters or questions arising under the
Resolution of Issuance as are necessary and desirable to accomplish
the same, provided that such modifications or amendments do not
adversely affect the rights of the Bondholders, as shown by an
Opinion of Counsel (as defined in the Resolution of Issuance),
and/or (b) with the consent of S"ondholders holding sixty percent
(60%) in aggregate principal amount of the outstanding Bonds,
exclusive of Bonds, if any, owned by the City, and obtained as set
forth in the Resolution of Issuance; provided, however, that no such
modification or amendment shall, without the express consent of the
Holder or registered owner of the Bond affected, reduce the
principal amount of any Bond, reduce the interest rate payable
thereon, extend its maturity or the times for paying interest
thoreon or change the monetary medium in which principal and
A-7
interest is payable, or reduce the percentage of consent required
for amendment or modification.
The following events are "events of default" under the
terms of the Resolution of Issuance:
(1) if default shall be made in the due and punctual
payment of any installment of interest on any Bond when and as such
interest installment shall become due and payable, and such default
shall have continued for a period of thirty (30) days;
(2) if default shall be made in the due and punctual
payment of the principal of any Bond when and as the same shall
become due and payable, whether at maturity as therein expressed, by
declaration or otherwise;
(3) if default shall be made by the City in the observance
of any of the covenants, agreements or conditions contained in this
Resolution or in the Bonds, and such default shall have continued
for a period of thirty (30) days; or
(4) if the City shall file a petition or answer seeking
reorganization or arrangement under the federal bankruptcy laws or
any other applicable law of the United States of America, or if a
court of competent jurisdiction shall approve a petition, filed with
or without the consent of the City, seeking reorganization under the
federal bankruptcy laws or any other applicable law of the United
States of America, or if, under the provisions of any other law for
the relief or aid of debtors, any court of competent jurisdiction
shall assume custody or control of the City or of the whole or any
substantial part of its property.
Then, and in each and every such case during the
continuance of such event of default, the Fiscal Agent or
Bondholder(s) may, but shall not be required to, exercise any and
all remedies deemed appropriate in the circumstances all as further
set forth in the Resolution of Issuance.
A-8
(FORM OF ENDORSEMENT ON FULLY REGISTERED BONDS)
This Fully Registered Bond (issued in fully registered form
wi thout coupons) is issued in the denomination of $5,000, or any
whole multiple thereof, aggregating the face value hereof; and Fully
Registered Bonds of this same issue and of the denomination of
$5,000 will be issued in exchange for this Bond in the manner, with
the effect and under the terms and conditions stated on the face of
the Bond and in the Resolution referred to therein.
(FORM OF ASSIGNMENT OF FULLY REGISTERED BONDS)
For value received
assigns and transfers unto
hereby sells,
Dated:
NOTE:
The signature to this assignment must correspond with the
name as written on the face of the within Bond in every
particular, without alteration or enlargeMent or any change
whatsoever.
A-9
-...,
SBE077-3/1529S/de
11/24/86
RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO, CALIFORNIA, MAKING
CERTAIN FINDINGS AND DETERMINATIONS WITH RESPECT
TO A CERTAIN REPORT FILED WITH THE CITY CLERK
PURSUANT TO THE REFUNDING ACT OF - 1984 FOR 1915
IMPROVEMENT ACT BONDS, AND MAKING FINAL
CONFIRMATION OF SAID REPORT
WHEREAS, on October 23, 1986, the Mayor and Common Council
of the City of San Bernardino, - California (the "Mayor and Common
Council"), approved Resolution No. 86-421 (the "Resolution of
Intention") in connection with the refunding of the $13,400,000 City
of San Bernardino, Improvement Bonds, Assessment District No. 961,
Series 1985 (Park Centre) (the "1985 Bonds"); and
WHEREAS, the Mayor and Common Council by the adoption of
said Resolution of Intention has deemed it to be in the public
interest, convenience and necessity to initiate proceedings pursuant
to the Refunding Act of 1984 for 1915 Improvement Act Bonds (Streets
and Highways Code Section 9500, et ~.) (the "1984 Act"), for the
refunding of the 1985 Bonds together with the levy of a reassessment
on the property included within Assessment District No. 961 (the
"District") for the purpose of refunding the indebtedness of the
1985 Bonds and the issuance of refunding bonds pursuant to Chapter 3
(commencing with Section 9600) of the 1984 Act; and
K
,-
WHEREAS, pursuant to the Resolution of Intention, the Mayor
and Common Council have declared that the public interest and
necessity requires the refunding of the 1985 Bonds and has declared
its intention to refund the 1985 Bonds by issuing certain refunding
bonds and to levy reassessments on the property included within the
District as security for the refunding bonds entitled "City of San
Bernardino,
California,
Improvement Refunding Bonds, Assessment
District No. 961, Series 1986 (the "Bonds"); and
WHEREAS, pursuant to the Resolution of Intention the Mayor
and Common Council have directed the preparation and filing with the
City Clerk of a certain report by the City Engineer, which report
shall contain the information as set forth in Section 9523 of the
1984 Act (the "Report"); and
WHEREAS, the City Engineer has caused to be filed with the
City Clerk the Report prepared pursuant to Section 9523 of the 1984
Act containing (a) a schedule of the outstanding principal of and
interest on the 1985 Bonds, (b) the estimated total principal amount
of the reassessment and the aggregate principal amount of the Bonds
including interest payable thereon at the maximum interest rate,
together with an estimate of all costs and expenses of said
reassessment and of issuing the BOnds, (c) a certain report of the
Auditor (as defined in Streets and Highways Code Section 8509) kept
pursuant to Streets and Highways Code Section 8682,
(d) the
estimated amount of each reassessment, and (e) a reassessment
dia;ram showing the property within the District and the boundaries
- 2 -
"",,
and dimensions of the subdivisions of land within the District in
connection with the proposed refunding of the 1985 Bonds; and
WHEREAS, the City Clerk has presented the Report to the
Mayor and Common Council for consideration, modification or
correction as provided in Section 9524 of the 1984 Act; and
WHEREAS, the Mayor and Common Council intend to proceed
wi th the refunding and reassessment and have preliminar i ly approved
the Report and pursuant to certain notices as prepared in accordance
with Section 9527 of the 1984 Act have set a public hearing on the
Report and on the proposed refunding and reassessment for
December 8, 1986, at 9:00 a.m. in the Council Chambers, City Hall,
300 North "D" Street, San Bernardino, California 92418, all as
further provided in said notices; and
WHEREAS, the City has, in accordance with Section 9527 of
the Act, published in The Sun a notice of public hearing and has
mailed to the affected owners of the properties within the District
notice of such public hearing; and
WHEREAS, the Mayor and Common Council shall, at this time,
hold a public hearing on the Report and on the proposed refunding
and reassessment and shall hear any complaints or objections as may
be made by any of the affected owners of the properties within the
District concerning the proposed refunding, the amount of unpaid
- 3 -
,
assessments or the amounts of proposed reassessments with respect to
any of the parcels of land to be reassessed; and
WHEREAS, in the absence of a majority protest pursuant to
Section 9534.5 of the Act, the Mayor and Common Council deem it
desirable to approve and confirm the Report and to approve the
reassessment in accordance with Chapter 2 of the 1984 Act and to
proceed to authorize the issuance of the Bonds pursuant to Chapter 3
of the 1984 Act; and
WHEREAS, the Mayor and Common Council must also authorize
the execution and delivery of certain related legal documents in
connection with the issuance of the Bonds and approve same as to
form; and
WHEREAS, the City has duly and regularly adopted its
Resolution entitled:
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING
THE ISSUANCE OF AN AGGREGATE PRINCIPAL AMOUNT OF
$12,450,000 OF REFUNDING BONDS OF SAID CITY TO
REFUND PREVIOUSLY ISSUED $13,400,000 CITY OF
SAN BERNARDINO, IMPROVEMENT BONDS, ASSESSMENT
DISTRICT NO. 961, SERIES 1985 (PARK CENTRE)
hereinafter referred to as the "Resolution of Issuance"; and
- 4 -
WHEREAS, First Interstate Bank of California, as the Fiscal
Agent and as the Escrow Bank, and the Underwriter may require
certain changes, modifications and amendments to the Resolution of
Issuance to clarify matters or questions arising under, or to cure
any ambiguity or defect or inconsistent provisions within the
Resolution of Issuance and to incorporate the specific financial
terms and provisions of the sale of the Bonds by the City to the
purchaser thereof when the final terms have been ascertained on or
prior to the date of the actual issuance and delivery of the Bonds;
and
WHEREAS, it is necessary for the Mayor and Common Council
by this Resolution to consider the authorization and approval of
certain amendments to the Resolution of Issuance as such Resolution
of Issuance may be amended, modified and changed subsequent to the
approval of the Resolution of Issuance through and including the
date of issuance and delivery of the Bonds.
NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO, CALIFORNIA, DO HEREBY FIND, RESOLVE, DETERMINE AND
ORDER AS FOLLOWS:
Section 1. The Mayor and Common Council hereby accept
for consideration the Report as presented at this meeting by the
City Clerk pursuant to Section 9524 of the 1984 Act.
- 5 -
,
Section 2. Pursuant to Section 9527 of the 1984 Act,
the City Clerk has caused the Notice of Public Hearing to be
published in The Sun, a newspaper of general circulation published
in the City by at least two (2) publications with the first
publication at least ten (10) days prior to the date set for the
pUblic hearing, being December 8, 1986. The Mayor and Common
Council hereby ratify such publication of the Notice of Public
Hearing, attached hereto as Exhibit "A" and by this reference
incorporated herein, as has been published in The Sun, on
November 26, 1986, and on December 3, 1986. Pursuant to
Section 9527 of the 1984 Act, the Director of Public Works/City
Engineer and City Clerk have caused certain Notices to Property
Owners re Proposed Reassessment and Refunding (the "Notice to
Property Owners") to be mailed to the various affected owners of the
property within the District to be reassessed at least twenty (20)
days prior to the date set for the public hearing, being December 8,
1986. The Mayor and Common Council hereby ratifies the mailing of
the Notices to Property Owners, attached hereto as Exhibi t "B" and
by this reference incorporated herein, as has been mailed to each
affected property owner on or before November 14, 1986.
Section 3. Pursuant ,to Section 9535 of the 1984 Act, in
the absence of a majority protestCpursuant to Section 9534.5 of the
1984 Act, the Mayor and Common Council hereby approve and confirm
the Report and the reassessment as originally made, or as reviewed
and corrected, as such Report is on file with the City Clerk, and
aut~orize the issuance and sale of the Bonds in accordance with the
- 6 -
provisions of Chapter 3 of the 1984 Act, and the precise terms and
provisions of the Bonds shall be as provided by separate resolution
of the Mayor and Common Council. The City Clerk is hereby directed
to attach a certified copy of this Resolution to the Report.
Section 4. The Mayor and Common Counci 1 hereby di rect
the reassessment, as herein confirmed for the District and as
included within the Report as on file with the City Clerk pursuant
to Section 9523 of the 1984 Act, to be recorded with the City
Superintendent of Streets in the manner as provided by Section 9536
of the 1984 Act and with the Office of the County Recorder for the
County of San Bernardino as provided by said Section 9536 and
pursuant to the provisions of Division 4.5 (commencing with
Section 3100) of the Streets and Highways Code with a copy of this
Resolution of the Mayor and Common Council confirming said
reassessment to be filed in the office of the Auditor as soon as
practicable after the date of adoption of this Resolution.
Section 5. Upon the recordation of said reassessment as
provided in Section 4 of this Resolution, the reassessment shall
become a lien upon the lands reassessed within the District.
Section 6. The Mayor and Common Council hereby levy
upon the lands in the District, and each subdivision thereof, the
reassessments as described in the Report as on file with the City
Clerk. The reassessments shall become a lien upon the lands in the
- 7 -
District, and the reassessments shall be deemed to supersede and
supplant both the assessments originally levied upon the lands in
the District and any and all penalties and interest accrued on such
assessments as originally levied. The lien of the reassessment
shall be superior and prior to all other liens on assessments within
the District, and such superiority and priority shall be given to
the reassessment as of the date that the original assessments became
a lien upon the lands within the District as reassessed pursuant to
these proceedings. The City Treasurer is hereby directed to
initiate the necessary action with the County of San Bernardino to
prepare the release of the assessment lien of the District upon the
lands of the District and take the necessary or appropriate actions
for the County of San Bernardino to collect the reassessment for the
District on behalf of the City of San Bernardino in the same manner
as ad valorem property taxes are collected by said County.
Section 7. On the date of issuance of the Bonds, the
reassessments and any and all reassessments which may be issued in
lieu thereof together with any interest thereon shall be deposited
into an irrevocable trust fund established pursuant to the
Resolution of Issuance of the Bonds and shall be used for the
redemption and payment of the principal of and interest on the Bonds.
".
Section 8. The Bonds for the District shall be issued
pursuant to Section 9602 of the 1984 Act in an aggregate principal
amount equal to $12,450,000. The maximum terms and rate or rates of
- 8 -
interest on the Bonds shall not exceed the term and rate or rates of
interest permitted by the 1984 Act and other applicable laws and as
set forth in the Resolution of Issuance and the Bond Purchase
Agreement between the City and the Underwriter for the Bonds. The
interest on the 1985 Bonds shall be paid as the same becomes due on
March 1, 1987. The principal of and premium, if any, on the 1985
Bonds shall be paid as the same become due on September 1, 1987, or
at certain designated dates prior to their maturity dates (where the
City has exercised a redemption privilege as set forth in the
resolution authorizing the issuance of the 1985 Bonds). Any
outstanding 1985 Bonds which shall be exchanged for the Bonds issued
pursuant to the 1984 Act shall be cancelled by the City Treasurer.
Section 9. On or prior to the expiration of thirty (30)
days from the date of the adoption of this Resolution confirming the
Report and approving the reassessment and the Resolution of Issuance
of the Bonds, and in accordance with certain waivers of Period to
Contest Validity and Consent to Issuance of Bonds a form of which is
attached hereto as Exhibit "C" and incorporated herein by reference,
the City may thereafter issue and deliver the Bonds pursuant to the
1984 Act and shall provide for the establishment of an irrevocable
escrow fund (the "Escrow Fund") with all or a portion of the
proceeds of the Bonds in an amount which is certified by an
independent certified public accountant licensed to practice within
the State of California to be sufficient, together with any interest
or any investment proceeds thereon, to pay the principal of,
- 9 -
redemption premium, if any, and interest on the 1985 Bonds as they
become due and payable on the maturity date of September 1, 1987,
for the 1985 Bonds maturing on said date and prior to their maturity
on March 1, 1987, as the date designated for the payment of interest
due on the 1985 Bonds and for the redemption prior to maturity for
all 1985 Bonds maturing after September 1, 1987, pursuant to the
Resolution of Issuance, and, upon receipt of the proceeds of the
Bonds and the establishment of the Escrow Fund, to defease the 1985
Bonds and the lien and covenants and warranties by the City with the
holders of the 1985 Bonds as created pursuant to the resolutions and
proceedings with respect to the authorization and issuance of the
1985 Bonds.
Sect ion 10. The Ci ty hereby approves such changes,
modifications and amendments to the Resolution of Issuance as may be
approved by the City Treasurer and the City Attorney upon the
recommendation of Bond CounseL All terms not otherwise specified
in the Resolution of Issuance shall be those terms and provisions as
may be set forth in the Bond Purchase Agreement as shall be
submitted in final form by the Underwriter prior to the time of the
issuance and delivery of the Bonds and as shall be set forth in
those certain amendments to the Resolution of Issuance approved by
this Resolution.
The Mayor and City Clerk are hereby authorized and directed
to execute the final form of the Resolution of Issuance which shall
- 10 -
set forth the final terms and provisions of the sale of the Bonds
when the final terms have been ascertained by the Underwriter based
upon the most favorable market conditions then available in the
municipal bond market, together with such amendments, modifications
and changes as may be required by the Fiscal Agent, the Escrow Bank
and the Underwriter and as such amendments, modifications and
changes may be approved by the City Treasurer and the City Attorney
upon the recommendation of Bond Counsel.
Section 11.
This
resolution shall take effect
upon
adoption.
I HEREBY
adopted by the
San Bernardino at
held on the
the following vote,
CERTIFY
Mayor
a
that the foregoing
and Common Council
resolution
of the
meeting
was duly
Ci ty of
thereof,
1986 , by
day of
to wit:
AYES:
Council Members
NAYS:
ABSENT:
City Clerk
- 11 -
day of
The foregoing resolution is hereby approved this
, 1986.
Mayor of the City of
San Bernardino
Approved as to form:
~{~
- l2 -
'~L
EXHIBIT "A"
NOTICE OF PUBLIC HEARING BY THE MAYOR AND COMMON COUNCIL
OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ON A
CERTAIN RESOLUTION OF INTENTION AND ENGINEER'S REPORT
NOTICE IS HEREBY GIVEN of the passage of Resolution No.
86-421, adopted on October 20, 1986, by the Mayor and Common Council
of the City of San Bernardino entitled, "Resolution of the Mayor and
Common Council of the City of San Bernardino, California, Declaring
Its Intention to Refund All Outstanding Bonds of the $13,400,000
City of San Bernardino, Improvement Bonds, Assessment District
No. 961, Series 1985 (Park Centre), Pursuant to the Refunding Act of
1984 For 1915 Improvement Act Bonds" (the "Resolution of Intention")
and of the filing with the City Clerk of a certain Engineer's Report
(as hereinafter defined).
A public hearing on the Resolution of Intention and the
Engineer's Report has been scheduled at the date, time and place
designated as follows:
Monday, December 8, 1986
9:00 a.m.
Council Chambers
City Hall
300 North "D" Street
San Bernardino, California 92418
The Resolution of Intention initiates certain proceedings
pursuant to the Refunding Act of 1984 for 1915 Improvement Act Bonds
(Streets and Highway Code Section 9500, et ~.) (the "Refunding Act of
1984") for the refunding of all outstanding $13,400,000 City of
San Bernardino, Improvement Bonds, Assessment District No. 961, Series
1985 (Park Centre), previously issued by the City of San Bernardino,
California (the "City") on or prior to their maturity dates, in
connection with the formation of Assessment District No. 961 within the
City. The Resolution of Intention states that the property to be
reassessed is the property or ig ina lly assessed in connection wi th the
creation of Assessment District No. 961 within the City and also
authorizes the levy of a reassessment on the property included in
Assessment District No. 961 for the purpose of issuing new bonds for said
refunding.
The total estimated cost of the proposed reassessment and
refunding as contained in that certain report of the engineer appointed
by the City prepared pursuant to Section 9523 of the Refunding Act of
1984 and on file with the City Clerk (the "Engineer's Report">' and the
Resolution of Intention is $l2,450,000. The total amount to be
reassessed against all of the properties within Assessment District
No. 961 is $12,450,000 and the amounts of each proposed reassessment upon
the various parcels of land in said Assessment District No. 961 are as
contained in the Engineer's Report.
A-l
.
Section 9528 of the Refunding Act of 1984 provides that any
persons interested in any of the property to be reassessed having any
objections to the proposed refunding or reassessment may appear and show
cause why said refunding or reassessment should not be done or carried
out in accordance with the Resolution of Intention and the Engineer's
Report. Protests must be in writing and must be delivered to the City at
or prior to the date and time set for the public hearing, being
December 8, 1986, at the hour of 9:00 a.m. Failure to file a written
protest prior to or at the date and time fixed for the public hearing as
set forth above shall be a waiver of any ri~ht which any such interested
persons may have or claim.
Copies of the Resolution of Intention and the Engineer's Report
are on file with the City Clerk of the City for further particulars.
NOTICE GIVEN as of this ____ day of November 1986.
Shauna Clark,
City Clerk of the
City of San Bernardino, California
To be published in The Sun ll/26/86 and 12/3/86.
A-2
-;-
EXHIBIT "B"
NOTICE TO PROPERTY OWNER OF ASSESSER'S PARCEL NO.
OF PROPOSED REASSESSMENT AND BOND REFUNDING
TO THE PROPERTY OWNER OF ASSESSOR'S PARCEL NO.
Within The San Bernardino Assessment District No. 961:
Included
Please take notice of the passage of Resolution No. 86-421,
adopted on October 20, 1986, by the Mayor and Common Council of the City
of San Bernardino entitled, "Resolution of the Mayor and Common Council
of the City of San Bernardino, California, Declaring Its Intention to
Refund All Outstanding Bonds of the $13,400,000 City of San Bernardino,
Improvement Bonds, Assessment District No. 961, Series 1985 (Park
Centre), Pursuant to the Refunding Act of 1984 For 1915 Improvement Act
Bonds" (the "Resolution of Intention") and of the filing with the City
Clerk of a certain Engineer's Report (as hereinafter defined).
A
Engineer's
designated
public hearing
Report has been
as follows:
on the Resolution
scheduled at the
of Intention and
date, time and
the
place
Monday, December 8, 1986
9:00 a.m.
Council Chambers
City Ha 11
300 North "D" Street
San Bernardino, California 92418
The Resolution of Intention initiates certain proceedings
pursuant to the Refunding Act of 1984 for 1915 Improvement Act Bonds
(Streets and Highway Code Section 9500, et~.) (the "Refunding Act of
1984") for the refunding of all outstanding $l3,400,000 City of
San Bernardino, Improvement Bonds, Assessment District No. 961, Series
1985 (Park Centre), previously issued by the City of San Bernardino,
California (the "City") on or prior to their maturity dates, in
connection with the formation of Assessment District No. 961 within the
City. The Resolution of Intention states that the property to be
reassessed is the property originally assessed in connection with the
creation of Assessment District No. 961 within the City and also
authorizes the levy of a reassessment on the property included in
Assessment District No. 961 for the purpose of issuing new bonds for said
refunding.
The total estimated cost of the proposed reassessment and
refunding, as contained in that certain report of the engineer appointed
by the Mayor and Common Council prepared pursuant to Section 9523 of the
Refunding Act of 1984 and on file with the City Clerk (the "Engineer's
Report"), and the Resolution of Intention is $12,450,000. The total
amount to be reassessed against all of the properties within Assessment
District No. 961 is $12,450,000. The amount of the proposed reassessment
B-l
'"""
against Assessor's Parcel No. ,being also known as Assessment
No. included within San Bernardino Assessment District No. 961-R,
in said Assessment District No. 961 is $ , all as contained in
the Engineer's Report.
Section 9528 of the Refunding Act of 1984 provides that you, as
the owner of certain property to be reassessed, may object to or protest
the proposed refunding or reassessment by appearing and showing cause why
said refunding or reassessment should not be done in accordance with the
Resolution of Intention and the Engineer's 'Report. Protests must be in
writing and must be delivered to the City at or prior to the date and
time set for the public hearing, being December 8, 1986, at the hour of
9:00 a.m. Failure to file a written protest prior to or at the date and
time fixed for the public hearing as set forth above shall be a waiver of
any right which you may have or claim.
Copies of the Resolution of Intention and the Engineer's Report
are on file with the City Clerk for further particulars. A copy of the
Resolution of Intention is enclosed for your reference. For further
information, please contact the City Official designated in the
Resolution of Intention.
NOTICE GIVEN as of this
day of November 1986.
Shauna Clark,
City Clerk of the City of
San Bernardino, California
B-2
EXHIBIT "C"
$12,450,000
CITY OF SAN BERNARDINO, CALIFORNIA
IMPROVEMENT REFUNDING BONDS
ASSESSMENT DISTRICT NO. 961
SERIES 1986'
[owner's name]
WAIVER OF PERIOD TO CONTEST VALIDITY
AND CONSENT TO ISSUANCE OF BONDS
FOR ASSESSMENT DISTRICT NO. 961
PURSUANT TO SECTIONS 9700 AND 9707
OF THE 1984 ACT
The undersigned, [owner's name(s) and legal status], owning
certain property within Assessment District No. 961 as [ownership
status] hereby agree[s] with the City of San Bernardino, California
(the "City"), and with the Mayor and Common Council of the City as
follows:
1. The undersigned
that they are the owners
included within Assessment
the City.
hereby represent[s] and warrant[s]
of a portion of the real property
District No. 961 (the "District") in
2. The undersigned hereby request[s]
Reassessment, as set forth in Exhibit "A" attached
incorporated herein by reference, be confi rmed
undersigned hereby consent[s] to such Reassessment.
that
hereto
and
the
and
the
3. As used in this Waiver of Period to Contest Validity
and Consent to Issuance of Bonds for Assessment District No. 961
Pursuant to Sections 9700 and 9707 of the 1984 Act (the
"Waiver"), the term "Assessment Laws" means collectively
Ordinance No. 3902 of the City, as amended, the Improvement Bond
Act of 1915, Division 10 of the Streets and Highways Code of the
State of California, the Municipal Improvement Act of 1913,
Division 12 of said Code, and the Refunding Act of 1984 for 1915
Improvement Act Bonds, Division 11.5 of said Code (the "1984
Act"). The undersigned hereby acknowledge[s] and agree[s] that
each understand their respective rights and obligations under
the Assessment Laws, including, without limitation, their right
to contest the validity of the $12,450,000 City of
San Bernardino, California, Improvement Refunding Bonds,
Assessment District No. 961, Series 1986 (the "Refunding
Bonds"), to be issued pursuant to the 1984 Act within thirty
C-l
~.-
(30) days after the adoption of the resolution of the City
providing for the issuance of the Refunding Bonds (the
"Resolution of Issuance"), their right to bring an action or
proceeding to set aside, cancel, avoid, annul or correct the
Reassessment levied or to be levied under the 1984 Act, or to
review any of the proceedings, acts or determinations made in
the proceedings for the Reassessment and the issuance of the
Refunding Bonds, or to quest ion the va lidi ty of or enj oin the
Reassessment or any of the reassessments therein, or to enjoin
the issuance of the Refunding Bonds representing the
Reassessment, or to urge, plead or prove, the invalidity of the
Reassessment or any of the reassessments therein or any
Refunding Bond in any action within thirty (30) days from the
date of adoption of the Resolution of Issuance for the Refunding
Bonds. Each of the undersigned hereby expressly waives (i)
their right to contest the validity of the Refunding Bonds and
(ii) their right to contest the validity or to enjoin the
collection of the reassessments within such thirty (30) day
period or at all. Each of the undersigned hereby request that
the amount of the Reassessment, which is Twelve Million Four
Hundred Fifty Thousand Dollars ($12,450,000), be represented by
and be security for the Refunding Bonds and that such Refunding
Bonds for the District be issued, and each of the undersigned
hereby consents to such issuance.
4. Each of the undersigned hereby waives all right to
challenge, appeal, protest or otherwise contest in any way
whatsoever the proceedings taken in connection with the District
on any grounds whatsoever, including, without limitation,
Section 9700, et ~., of the 1984 Act, or any provisions of the
Assessment Laws, and in addition, each of the undersigned hereby
consents to and approves of all actions that have been taken or
that may be taken relating to or in connection with the
reassessment proceedings and the issuance of the Refunding
Bonds. The undersigned hereby waivers] any defects or
irregularities in any of the reassessment proceedings,
including, without limitation, any defect or irregularities with
regard to the giving of written notice and the publication and
posting of notice of public hearing held, pursuant to Resolution
No. 86-421 of the Mayor and Common Council of the City, at 9:00
A.M., on December 8, 1986, in the Council Chambers, City Hall,
300 North "D" Street, San Bernardino, California 92418.
5 [name of owner(s)] ftereby represent[s] and warrant[s]
as follows: (i) the [legal status of owner] executing this
waiver has/have the right, power, legal capacity and authority
to execute this Waiver in their [legal status of owner] capacity
and (ii) [name of owner(s)] has/have the full legal right,
power and authority to execute and deliver this Waiver and the
execution and delivery of this Waiver is not contrary to any
other agreement, indenture or other document expected or entered
into by said [legal capacity of owner].
C-2
6. Each of the undersigned hereby agrees that this Waiver
shall be binding upon each of them and their representatives,
successors and assigns and their successors in title to each
portion of the real property included within the District.
7. This Waiver may be executed in counterparts, each of
which shall be deemed an original, but all of which, together,
shall constitute one and the same instrument.
OWNER[S] ,
[legal capacity]
By:
[name of signatory]
By:
[name of signatory]
C-3
,
SBE077-22/2053S/de
11/24/86
RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO, CALIFORNIA, ACCEPTING A
BOND PURCHASE AGREEMENT AND PROVIDING FOR THE
ESTABLISHMENT OF A REDEMPTION FUND FOR THE
PAYMENT OF THE BONDS TO BE PURCHASED PURSUANT TO
SAID AGREEMENT
WHEREAS, the Mayor and Common Council of the City of
San Bernardino, California (the "Mayor and Common Council"), have
heretofore instituted and conducted proceedings under the terms and
provisions of the Refunding Act of 1984 for 1915 Improvement Act
Bonds, being Streets and Highways Code of the State of California,
Section 9500, et~. (the "l984 Act"), for the refunding of the
$13,400,000 Ci ty of San Bernardino, Improvement Bonds, Assessment
District No. 96l, Series 1985 (Park Centre) (the "l985 Bonds"),
together wi th a levy of a reassessment on the property inc luded
within Assessment District No. 96l (the "Assessment District"); and
WHEREAS, the Mayor and Common Council have approved
Resolution No. 86-421, adopted on October 23, 1986 (the "Resolution
of Intention"), pursuant to which the City determined and declared
,
that it is in the public interest, convenience and necessi ty to
initiate proceedings pursuant to the 1984 Act for the refunding of
the 1985 Bonds together with the levy of a reassessment on the
property included within the Assessment District for the purpose of
paying the debt service on the refunding bonds and refinancing the
- 1 -
c..
indebtedness of the 1985 Bonds by the issuance of such refunding
bonds (the "Bonds") pursuant to the 1984 Act; and
WHEREAS, the Mayor and Common Council have now received, in
proper form, a Bond Purchase Agreement for ,the purchase of the Bonds
to be issued pursuant to the 1984 Act and under said proceedings,
and said Bond Purchase Agreement is determined to be in the best
interests of owners of land included within the Assessment District
and should be formally accepted by this Mayor and Common Council.
NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO, CALIFORNIA, DO HEREBY FIND, RESOLVE, DETERMINE AND
ORDER AS FOLLOWS:
Section l.
That the above recitals are all true and
correct.
Section 2. That the Bond Purchase Agreement
sUbstantially in the form as attached hereto as Exhibit "A" and
incorporated herein by reference, together with such changes,
modifications and amendments as may be approved by the City
Treasurer and the City Attorney upon the recommendation of Bond
Counsel, received from Miller & Schroeder Financial, Inc. (the
"Underwri ter"), for the purchase of the Bonds representing unpaid
reassessments in the Assessment District is hereby accepted and
approved.
- 2 -
Section 3. That the sale of the Bonds is subject to all
the terms and conditions as set forth in the Bond Purchase Agreement
as approved pursuant to Section 2 hereof.
Section 4. That the Mayor, the, City Treasurer, the City
Clerk or any other authorized officer of the City is hereby
authorized and directed to execute and deliver the Bond Purchase
Agreement which shall set forth the terms and provisions of the sale
of the Bonds by the City to the Underwriter as such terms have been
ascertained by the Underwriter based upon the most favorable market
conditions available in the municipal bond market and when delivered
shall be considered to be approved by the City pursuant to this
Resolution.
Section 5. That the City Treasurer be, and hereby is,
directed to have the Bonds printed, executed and delivered to the
purchaser thereof upon receipt of the amount of moneys due pursuant
to the bid of the purchaser and upon the performance of all the
conditions as set forth in the Bond Purchase Agreement.
Section 6. That the interest rate or rates on the Bonds
and the applicable discount of the Underwriter be, and the same
hereby are fixed at the rate or rates and the discount amount as set
forth in the accepted Bond Purchase Agreement.
- 3 -
Section 7. That the City Treasurer is hereby authorized
and directed to keep, or to cause First Interstate Bank of
California, as Fiscal Agent for the City, to establish and maintain,
a redemption fund designated by the name of the proceedings, into
which the City Treasurer or the Fiscal Agent, as appropriate, shall
deposit all sums received for the collection of the reassessments
and the interest thereon, together with all penalties, if
applicable, thereon and from which shall be disbursed such funds
required for the payment of the principal of, premium, if any, and
interest on the Bonds as the same become due. Under no
circumstances shall the Bonds or interest thereon be paid out of any
other fund except as provided by law.
Section 8.
of San Bernardino,
Assessment District
"Redemption Fund").
That said fund shall be known as the "City
California, Improvement Refunding Bonds,
No. 96l, Series 1986, Redemption Fund" (the
Section 9. That the City Treasurer or the Fiscal Agent,
as appropriate, shall transfer moneys as necessary from the Reserve
Fund established under the resolution providing for the issuance of
the Bonds for deposit to the Redemption Fund in the manner and form
as authorized by law.
Section lO. The City
modifications and amendments to
hereby approves
the resolution
such changes,
authorizing the
- 4 -
issuance of the Bonds entitled "Resolution of the Mayor and Common
Council of the City of San Bernardino, California, Authorizing the
Issuance of an Aggregate Principal Amount of $l2,450,000 of
Refunding Bonds of Said City to Refund Previously Issued $l3,400,000
City of San Bernardino, Improvement Bonds, Assessment District
No. 96l, Series 1985 (Park Centre)" (the "Resolution of Issuance")
as may be approved by the City Treasurer and the City Attorney upon
the recommendation of Bond Counsel. All terms not otherwise
specified in the Resolution of Issuance shall be those terms and
provisions as may be set forth in the Bond Purchase Agreement as
shall be submitted in final form by the Underwriter prior to the
time of the issuance and delivery of the Bonds and as shall be set
forth in those certain amendments to the Resolution of Issuance
approved by this Resolution.
The Mayor and City Clerk are hereby authorized and directed
to execute the final form of the Resolution of Issuance which shall
set forth the final terms and provisions of the sale of the Bonds
when the final terms have been ascertained by the Underwriter based
upon the most favorable market conditions then available in the
municipal bond market, together with such amendments, modifications
and changes as may be required by the Fiscal Agent, the Escrow Bank
and the Underwriter and as such amendments, modifications and
changes may be approved by the City Treasurer and the City Attorney
upon the recommendation of Bond Counsel.
- 5 -
,
Section 11.
adoption.
This Resolution shall take effect
upon
I HEREBY
adopted by the
San Bernardino at
held on the
the following vote,
CERTIFY
Mayor
a
that the foregoing
and Common Counci 1
resolution
of the
meeting
was duly
City of
thereof,
1986 , by
day of
to wit:
AYES:
Council Members
NAYS:
ABSENT:
City Clerk
day of
The foregoing resolution is hereby approved this
, 1986.
Mayor of the City Of
San Bernardino
Approved as to form:
~~
/Jf. ity Attorney
- 6 -
SBE077-24/2054S/de
ll/24/86
RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO, CALIFORNIA, APPOINTING A
FISCAL AGENT AND APPROVING A FISCAL AGENT
AGREEMENT FOR PURPOSES OF SERVICING CERTAIN
ASSESSMENT BONDS
WHEREAS, the Mayor and Common Council of the City of
San Bernardino, Ca lifornia (the "Mayor and Common Counci 1"), intend
to refund the $l3,400,000 City of San Bernardino, Improvement Bonds,
Assessment District No. 96l, Series 1985 (Park Centre) (the "l985
Bonds"), by issuing its City of San Bernardino,
California,
Improvement Refunding Bonds, Assessment District No. 961, Series
1986, in an aggregate principal amount equal to $12,450,000 (the
"Bonds") pursuant to the terms and provisions of the Refunding Act
of 1984 for 19l5 Improvement Act Bonds, being Streets and Highways
Code of the State of California, Section 9500, et seq. (the "l984
Act" ); and
WHEREAS,
at this time the Ci ty of
San Bernardino,
California (the "City"), desires to appoint a qualified fiscal agent
for purposes of servicing the Bonds it proposes to issue for
Assessment District No. 96l (the "Assessment District"); and
WHEREAS, First Interstate Bank of California has submitted
a proposal for furnishing such services.
- 1 -
D,
NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO, CALIFORNIA, DO HEREBY FIND, RESOLVE, DETERMINE AND
ORDER AS FOLLOWS:
Section l.
That the above recitals are all true and
correct.
Section 2. That First Interstate Bank of California is
hereby appointed to act as Fiscal Agent for the purposes of
servicing the Bonds issued under the provisions of the 1984 Act for
the Assessment District.
Section 3. The City hereby agrees to employ First
Interstate Bank of California as Fiscal Agent for the City in
accordance with the terms of the Fiscal Agent Agreement attached to
this Resolution as Exhibit "A" and incorporated herein by reference
and all of the terms and conditions contained therein are hereby
approved and accepted, and the City hereby authorizes and directs
the Mayor, the City Treasurer, the City Clerk or any other
authorized officer of the City to execute the Fiscal Agent Agreement
on behalf of the City.
Section 4.
adoption.
This
Resolution
shall take effect upon
- 2 -
I HEREBY CERTIFY that the foregoing
adopted by the Mayo r and Common Counc i 1
San Bernardino at a
held on the day of
the following vote, to wit:
resolution
of the
meeting
AYES:
Council Members
was duly
Ci ty of
thereof,
19 8 6 , by
NAYS:
ABSENT:
City Clerk
day of
The foregoing resolution is hereby approved this
, 1986.
Mayor of the City of
San Bernardino
Approved as to form:
11112&1f.~
(/f~ City Attorney
- 3 -
SAMPLE FISCAL AGREEMENT
==========--------====-
THE CITY OF SAN BERNARDINO
FISCAL AGENCY AGREEMENT
(Assessment District No. 961, Series 1986)
THIS AGREEMENT is dated for convenience as of the (date) day of
(month), 1985 between THE CITY OF SAN BERNARDINO herein called
"The City" and FIRST INTERSTATE BANK OF CALIFORNIA, herein
called "The Bank".
WITNESSETH:
WHEREAS, The City has authorized and provided for the issuance
of $ (amount) principal value of its (tvpe of securities)
, herein called" ", and wishes The Bank to act as Fiscal
Agent with respect to the issue.
NOW, THEREFORE, in consideration of the premises, the parties
hereto agree as follows:
1. The Bank has reviewed and is familiar with Resolution
No. __ of The City authorizing the issuance of
$ (amount) aggregate principal amount of (tvpe of
securities) , which Resolution No. ___ names The Bank
as Fiscal Agent thereunder. The Bank agrees to
perform the duties of Fiscal Agent as provided for in
this Resolution.
2. Investment of funds shall be made in accordance with
the provisions of the Resolution.
3. The city will deliver to The Bank, not later than date
of closing, the following documents:
a) Two signed copies of the Fiscal Agency Agreement;
b) One Specimen certificate of each series;
c) One copy of Resolution No. ___;
d) One copy of Bond Counsels legal opinion;
e) One copy of the Official Statement; and
f) Such other documents as The Bank may request.
4. All notices, documents and other correspondence will
be mailed or delivered to First Interstate Bank of
California, Corporate Trust Department, 707 Wilshire
Blvd. (WI0-2), Los Angeles, CA 90017 and
to
or to such other address as either party shall from
time to time indicate in writing to the other.
" -
5) This aqreement shall remain in effect until the
(tvce of securities) mature and all funds are
disbursed or until this aqreement is amended or
terminated. This aqreement may be terminated by
written notice of either party to the other.
6) The City will compensate First Interstate Bank for its
services as Fiscal Aqent in accordance with the terms
and conditions of the fee proposal attached hereto.
The terms and conditions of this Aqreement are intended for the
mutual benefit of The city and The Bank exclusively, and are
not intended to qive any third party any riqht of claim,
contractual or otherwise, hereunder.
IN WITNESS WHEREOF, the parties have caused these presents to
be duly executed, as of the day and year first above written.
THE CITY OF SAN BERNARDINO
By:
Title:
Date:
FIRST INTERSTATE BANK OF CALIFORNIA
By:
Title:
Date:
By:
Title:
Date:
Paqe 2 of 2
~
a,=.,.,.
Bank
~ / Flratlntar_a Bank
01 California
Corpora" Trust Dapartmant
707 W1lshlra Blvd,
Los Angelas, CA 90017
213614-2946
Peggy Eckroth
Assistant Vice Presldant
November 24, 1986
Mr. Allen Briggs
Senior Assistant City Attorney
City of San Bernardino
300 North "0" Street, Room 668
San Bernardino, CA 92418
Re: THE CITY OF SAN BERNARDINO, CALIFORNIA
Improvement Refunding Bonds
Assessment District No. 961, Series 1986
$12.450.000
Dear Mr. Briggs:
Thank you for appointing First Interstate Bank as Fiscal Agent,
Registrar and Paying Agent on the above referenced issue. Our
fees for these services are as follows:
Accetltance Fee
$5,000
This one-time charge includes acceptance of the account,
review of the Trust Agreement and supporting documents,
liaison with agency officials, counsel and underwriters and
attendance at the closing by your First Interstate Account
Administrator. First Interstate Bank will bill separately,
at cost, for legal fees incurred in this transaction.
Should documents be clearly drafted to the standards of
First Interstate's counsel, our legal fee billing will not
exceed $4,500.
Annual Administration Fee
Escrow Aaent Fee
$5,000
$3,500
the life of the
outlined below in
This fee will be charged annually during
escrow as well as transaction charges as
the Security Transactions paragraph.
At the closing, fees for the following services are due and
payable:
a) Acceptance Fee,
b) Annual Administration Fee for the first year,
c) Charge for the original certificate issuance, and
d) First Year Escrow Fee.
Allen Briggs
November 24, 1986
Page Two
Thereafter, our Annual Administration Fee will be payable in
advance at the beginning of each annual period commencing with
the first anniversary of this Agreement.
Reaistration Services
Per certificate issued
Each bondholder account maintained,
per annum
Each interest check issued
Per certificate paid at maturity
Per certificate paid prior to maturity
$ 2.00
$ 3.00
$ 0.50
$ 2.75
$ 3.75
Securitv Transactions
A charge will be made for such transactions as the
purchase, sale, redemption, tender, maturity, delivery
or receipt of bonds or stocks and for transactions with
financial institutions to include savings
deposits/withdrawals, certificates of deposit,
Eurodollar Certificates and Repurchase Agreements.
Security Transaction rates are subject to periodic
review and change but are presently quoted as follows:
Bonds, stock, other personal
property
Eurodollar Certificate
Repurchase Agreement
Payment of a Construction
Fund Requisition
$ 25.00/transaction
$125.00/transaction
$ 50.00/transaction
$ 50.00/transaction
Out-of-Pocket EXDenses
As Billed
These expenses are those incurred by us on your behalf
to effectively service your account on a day-to-day
basis. They include but are not limited to the
following items:
Postage, wire transfers, insurance, stationery,
express mail charges, and telephone and
telegraph.
A charge, at our cost, will be made to cover
expenses incurred for travel, lodging and meals
to attend the closing for this issue and or any
other special meetings required.
Allen Briqq.
November 24, 1986
paqe Three
These fees are based on the standard responsibilities for
this type of issue. with further review of preliminary and
final documents, we reserve the riqht to amend our fee
pricinq.
The information contained in this proposal is confidential
and proprietary in nature. By receivinq this proposal, the
City of San Bernardino aqrees that none of its employees or
aqents without the prior written consent of First Interstate
Bank will make accessible to any third party other than
parties to this issue, any part of this proposal or
information in connection with it. Our quoted proposal
pricinq will remain in effect for 60 days from the date of
this letter and extended thereafter at the option of
First Interstate Bank.
Our acceptance as Fiscal Aqent, Reqistrar and payinq Aqent is
conditional upon our approval of the appointinq documents.
If you have any questions, please call either me at
213/614-2946 or Donald C. Kuby the Manaqer, Corporate Trust
Marketinq at 213/614-4926.
Sincerely, 1_:
!~~I
Assistant Vice President
Corporate Trust Marketinq
PJE:vv
cc: Donald C. Kuby
Vice President and Manaqer
Corporate Trust Marketinq
SBE077-l3/l813S/nb
11/20/86
RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING AN
ESCROW AGREEMENT WITH FIRST INTERSTATE BANK OF
CALIFORNIA
WHEREAS,
the City of San Bernardino,
California
(the
"City"), is a municipal corporation and a charter city, duly
organized and existing pursuant to the Constitution and the laws of
the State of California, and the powers of the City include the
power to issue improvement bonds to represent and be secured by the
assessments which shall be made to pay the cost of any work or
improvement which is charged or assessed upon real property as
provided in Part 3 of Division lO (Improvement Bond Act of 19l5) of
the California Streets and Highways Code (the "1915 Act") and the
power to issue improvement refunding bonds for the purpose of paying
or retiring improvement bonds previously issued by it as provided in
the Refunding Act of 1984 for 19l5 Improvement Act Bonds (California
Streets and Highways Code Section 9500, et ~.) (the "1984 Act");
and
WHEREAS, pursuant to the adoption of Resolution No. 84-551
(the "l985 Bonds Resolution of Intention"), improvement proceedings
for Assessment District No. 96l (the "District") were initiated by
the Mayor and Common Council of the City of San Bernardino,
California (the "Mayor and Common Council"), on December l7, 1984,
- 1 -
t
and such proceedings were conducted pursuant to Division l2
(Municipal Bond Improvement Act of 19l3) of the California Streets
and Highways Code (the "l9l3 Act") and the 19l5 Act; and
WHEREAS, the Mayor and Common Council have adopted
Ordinance No. 3902 on January 2l, 1980, as amended by Ordinance
No. MC-426, adopted on January 7, 1985, and Ordinance No. MC-442,
adopted on March 19, 1985 (collectively, the "Ordinance"), which
Ordinance modified certain provisions of and procedures prescribed
by the 1913 Act and the 19l5 Act as applicable to the City insofar
as such provisions and procedures relate to assessment district
formation, assessment proceedings and the issuance of improvement
bonds by the City; and
WHEREAS, the Mayor and Common Council have heretofore
adopted Resolution No. 85-116, on March 19, 1985, providing for the
issuance of the "$13,400,000 City of San Bernardino, Improvement
Bonds, Assessment District No. 961, Series 1985 (Park Centre)" (the
"1985 Bonds"); and
- 2 -
WHEREAS, the Mayor and Common Council have approved
Resolution No. 86-42l, adopted on October 23, 1986 (the "Resolution
of Intention"), pursuant to which the City declared its intention to
refund all outstanding 1985 Bonds and initiated certain proceedings
in connection with said refunding as provided by the 1984 Act; and
WHEREAS, the Mayor and Common Council deem it necessary to
issue at this time an aggregate principal amount equal to
$l2,450,000 of the improvement refunding bonds and to use a portion
of the proceeds of such bonds to refund the outstanding balance of
the 1985 Bonds; and
WHEREAS, the purposes stated above will be accomplished by
issuing an aggregate principal amount equal to $12,450,000 of
improvement refunding bonds pursuant to the Resolution of Issuance,
to be known as the "City of San Bernardino, California, Improvement
Refunding Bonds, Assessment District No. 96l, Series 1986" (the
"Bonds"), a portion of the proceeds of which will be set apart and
irrevocably segregated in a special trust fund (to be invested in
Federal Securities, as defined in Section l3 thereof) in such
principal amounts which, together with the interest earnings
thereon, will be sufficient to defease the liens and covenants
created by Resolution No. 85-ll6 by ensuring the payment of the
principal of and interest and redemption premiums, if any, on the
1985 Bonds as they become due or at designated dates prior to
maturity (in connection with which the Mayor and Common Council have
- 3 -
exercised or obligated itself to exercise a redemption privilege on
behalf of the City), all as permitted by the 1984 Act; and
WHEREAS, it is deemed desirable to enter into an escrow
agreement with First Interstate Bank of California for the purpose
of paying the principal of and interest and redemption premiums, if
any, on and otherwise provide for the refunding of the 1985 Bonds
from certain funds of the City to be received from the proceeds of
the sale of the Bonds.
NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO, CALIFORNIA, DO HEREBY FIND, RESOLVE, DETERMINE AND
ORDER AS FOLLOWS:
Section l.
The above recitals are all true and correct.
Section 2.
The Mayor and Common Council hereby approve
the form of the Escrow Agreement by and between the City and First
Interstate Bank of California,
as Escrow Bank
(the
"Escrow
Agreement"), as attached hereto as Exhibit "A" and incorporated
herein by this reference.
Section 3.
The Mayor and Ci ty Clerk of the Ci ty are
hereby authorized and di rected to execute the Escrow Agreement on
behalf of the City with such changes, additions, modifications or
deletions as requested and approved by the City Attorney and Bond
cou'1se1; 1ft.t lA/.d
- 4 -
Section 4. The Mayor and Common Council further
authorize the Treasurer of the City or the Escrow Bank, as
applicable, to transfer funds as necessary and in the amounts as
required to pay the principal of and interest and redemption
premiums, if any, on the 1985 Bonds as they become due or at
designated dates prior to maturity (in connection wi th which the
Mayor and Common Council has exercised or obligated itself to
exercise a redemption privilege on behalf of the City), and the
designated costs of issuance of the Bonds, in the amounts as
provided in the Escrow Agreement.
- 5 -
Section 5.
adoption.
I HEREBY
adopted by the
San Bernardino at
held on the
the following vote,
AYES:
NAYS:
ABSENT:
This
CERTIFY
Mayor
a
that
and
Resolution
shall take effect upon
the foregoing
Common Counc i 1
resolution
of the
meeting
day of
to wit:
Council Members
was duly
City of
thereof,
1986, by
City Clerk
day of
The foregoing resolution is hereby approved this
, 1986.
Approved as to form:
A I~I{!~
~~City Attorney
Mayor of the City of
San Bernardino
- 6 -
SBE077-l9/2029S/nb
11/20/86
ESCROW AGREEMENT
This Escrow Agreement, dated for convenience as of
December 1, 1986, by and between the City of San Bernardino,
California (the "City"), a municipal corporation and a charter city
(a public body, corporate and politic), duly organized and existing
under and pursuant to the Constitution and the laws of the State of
California, and First Interstate Bank of California, in the City of
Los Angeles, California (which, both in its capacity as Fiscal Agent
under the Resolution (hereinafter defined) and as Escrow Bank
pursuant to this Agreement, shall be hereinafter referred to as
"Escrow Bank"), a bank having and exercising full and complete trust
powers, duly organized and existing under the laws of the United
States of America, being a member of the Federal Deposit Insurance
Corporation, and having an office and a principal place of business
in the City of Los Angeles, California.
WIT N E SSE T H:
WHEREAS, the City of San Bernardino, California (the
"City"), is a municipal corporation and a charter city, duly
organized and existing pursuant to the Constitution and the laws of
the State of California, and the powers of the City include the
power to issue improvement bonds to represent and be secured by the
assessments which shall be made to pay the cost of any work or
improvement which is charged or assessed upon real property as
provided in Part 3 of Division lO (Improvement Bond Act of 19l5) of
the California Streets and Highways Codf' (the "1915 Act") and the
power to issue improvement refunding bonds for the purpose of paying
or retiring improvement bonds previously issued by it as provided in
the Refunding Act of 1984 for 19l5 Improvement Act Bonds (California
Streets and Highways Code Section 9500, et seq.) (the "l984 Act");
and
WHEREAS, pursuant to the adoption of Resolution No. 84-551
(the "l985 Bonds Resolution of Intention"), improvement proceedings
for Assessment District No. 96l (the "District") were initiated by
the Mayor and Common Council of the City of San Bernardino,
California (the "Mayor and Common Council"), on December l7, 1984,
and such proceedings were conducted pursuant to Division l2
(Municipal Bond Improvement Act of 1913) of the California Streets
and Highways Code (the "l913 Act") and the 19l5 Act; and
WHEREAS, the Mayor and Common Council have adopted
Ordinance No. 3902 on January 2l, 1980, as amended by Ordinance
No. MC-426, adopted on January 7, 1985, and Ordinance No. MC-442,
adopted on March 19, 1985 (collectively, the "Ordinance"), which
- I -
EXHIBIT A
Ordinance modified certain provisions of and procedures prescribed
by the 19l3 Act and the 1915 Act as applicable to the City insofar
as such provisions and procedures relate to assessment district
formation, assessment proceedings and the issuance of improvement
bonds by the City; and
WHEREAS, the Mayor and Common Council have heretofore
adopted Resolution No. 85-ll6, on March 19, 1985, providing for the
issuance of the "$l3, 400,000 Ci ty of San Bernardino, Improvement
Bonds, Assessment District No. 96l, Series 1985 (Park Centre)" (the
"l985 Bonds"); and
WHEREAS, pursuant to the 1984 Act, the Ci ty may, at any
time, determine by resolution that the public interest and necessity
requires the refunding of any outstanding 1985 Bonds issued pursuant
to the 1915 Act and the Ordinance and may declare its intention to
refund the 1985 Bonds and to levy reassessments as security for the
refunding bonds; and
WHEREAS, the Mayor and Common Council have approved
Resolution No. 86-42l, adopted on October 23, 1986 (the "Resolution
of Intention"), pursuant to which the City declared its intention to
refund all outstanding 1985 Bonds and initiated certain proceedings
in connection with said refunding as provided by the 1984 Act; and
WHEREAS, the Mayor and Common Counci I deem it necessary to
issue at this time an aggregate principal amount equal to
$l2,450,000 of the improvement refunding bonds and to use a portion
of the proceeds of such bonds to refund the outslanding balance of
the 1985 Bonds; and
WHEREAS, the purposes stated above will be accomplished by
issuing at this time an aggregate principal amount equal to
$l2,450,000 of improvement refunding bonds pursuant to the
Resolution of Issuance (as hereinafter defined), to be known as the
"City of San Bernardino, California, Improvement Refunding Bonds,
Assessment District No. 96l, Series 1986" (the "Bonds"), a portion
of the proceeds of which will be set apart and irrevocably
segregated in a special trust fund to be held by the Escrow Bank
called the "City of San Bernardino, California, Improvement
Refunding Bonds, Assessment District No. 96l, Series 1986, Escrow
Fund" (the "Escrow Fund") (to be invested in Federal Securities, as
defined in Section 13 of the Resolution of Issuance) in such
principal amounts which, together with the interest earnings
thereon, will be sufficient (as determined by an Opinion of Counsel
based upon a certificate or opinion of an Independent Financial
Consultant) to defease the liens and covenants created by Resolution
No. 85-116 (the "1985 Resolution") by ensuring the payment of the
principal of and interest and redemption premiums, if any, on the
1985 Bonds as they become due or at designated dates prior to
maturity (in connection with which the Mayor and Common Council has
exercised or obligated itself to exercise a redemption privilege on
beh21f of the City) all as permitted by the 1984 Act; and
- 2 -
WHEREAS, the City has
diligently made and verified prior
that the proper amounts sha 11 be
immediately following the delivery
shall have no responsibility
calculations; and
caused such calculations to be
to the delivery of the Bonds so
placed in the Escrow Fund on or
of the Bonds and the Escrow Bank
for the correctness of the
WHEREAS, the maturity schedule of the 1985 Bonds is as set
forth below and said 1985 Bonds shall be redeemed and paid (i) for
those 1985 Bonds maturing after September l, 1987, in advance of
their maturities on the first available call date being March l,
1987, which is the date on which such 1985 Bonds are to be paid in
full, by payment of the principal amount thereof together with
accrued interest and a redemption premium equal to five percent (5%)
of the principal and (ii) for those 1985 Bonds maturing on
September l, 1987, on their maturity date of September l, 1987, by
payment of the principal amount thereof together with accrued
interest thereon, without premium:
Maturity Principal Interest Interest Total Debt
Date Amount Rate Amount Service
9/1/87 $ 230,000 8.50% $ 1,430,405 $l,660,405
9/1/88 250,000 9.00% l,4l0,85S l,660,855
9/1/89 275,000 9.50% l,388,355 1,663,355
9/1/90 300,000 9.75% 1,362,230 l,662,230
9/1/9l 330,000 lO.OO% l,332,980 l,662,980
9/1/92 360,000 lO.lO% l,299,980 l,659,980
9/1/93 400,000 lO.20% l,263,620 l,663,620
9/1/94 440,000 lO.30% l,222,820 l,662,820
9/1/95 485,000 10.40% l,177,500 l,662,500
9/1/96 535,000 10.50% l,l27,060 l,662,060
9/1/97 590,000 10.60% l,070,885 l,660,885
9/1/98 655,000 10.70% l,008,345 l,663,345
9/1/99 720,000 lO.80% 938,260 1,658,260
9/1/2000 800,000 lO.90% 860,500 l,660,500
9/1/01 890,000 l1. 00% 773,300 1,663,300
9/1/02 985,000 11. 00% 675,400 1,660,400
9/1/03 1,095,000 11.00% 567,050 l,662,050
9/1/04 l,215,000 11.00% 446,600 l,661,600
9/1/05 l,350,000 11.00% 3l2,950 l,662,950
9/1/06 l,495,000 11.00% l64,450 l,659,450
Total: $13.400.000
- 3 -
,
WHEREAS, the defeasance requirements for those 1985 Bonds
maturing after September l, 1987, for the call and redemption of
said 1985 Bonds on March 1, 1987, is as set forth below:
Principal
Amount
Premium
5%
Interest
Total
Due on
3/1/87
$13, l70, 000
$658,500
$.00
$l3,828,500
WHEREAS, the defeasance requirements for those 1985 Bonds
maturing on September l, 1987, for the payment of said 1985 Bonds on
their maturity date of September l, 1987, is as set forth below:
Principal Amount
Interest Amount
Total Due on 9/l/87
$230,000
$l,430,40S
$l,660,405
WHEREAS,
deposit of $
the Escrow Fund will be initially funded with a
from the proceeds of the Bonds; and
WHEREAS, the Escrow Bank has used
initial deposit to the Escrow Fund to purchase
the following described Federal Securities as
Exhibit "A" attached hereto:
$ of the
on behalf of the City
further described in
Description
Principa 1
Amount
Interest
Rate
Maturi ty
Date
$
%
3/0l/87
WHEREAS, the remaining $ of the initial deposit to
the Escrow Fund will remain as cash on deposit in the Escrow Fund.
NOW, THEREFORE, in consideration of the foregoing and the
mutual covenants hereinafter set forth, the parties hereto agree as
follows:
Section l. Receipt of copies of the 1985 Resolution and
"Resolution of the Mayor and Common Council of the City of
San Bernardino, California, Authorizing the Issuance of an Aggregate
Principa 1 Amount of $l2, 4 50,000 of Refunding Bonds of Said City to
Refund Previous ly Issued $l3, 400,000 Ci ty of San Bernardino,
Improvement Bonds, Assessment District No. 961, Series 1985 (Park
Centre) (the "Bond Resolution"), certified to be true and correct by
the City Clerk, is hereby acknowledged by the Escrow Bank and said
documents shall be deemed to be incorporated as part hereof in the
same manner and with the same effect as if it were fully set forth
herein.
- 4 -
..
Section 2. The Escrow Bank hereby agrees to hold in
escrow the Escrow Fund (created pursuant to the Bond Resolution) as
a special trust fund separate and apart from any other funds of the
Ci ty or the Escrow Bank and to use the moneys and investments
deposited therein solely for those purposes required or permitted by
the Bond Resolution and recited therein. The Escrow Fund will be
established by the deposit with the Escrow Bank of certain funds of
the City to be received from the proceeds of the sale of the Bonds.
The Escrow Bank shall be under no obligation or responsibility to
utilize any other moneys held in any of its other funds and accounts
except for those moneys and investments on deposit in the Escrow
Fund.
Section 3. The Escrow Bank sha 11 wi thdraw moneys from
the Escrow Fund in sufficient amounts and at the times to make the
payment without default of the principal of the 1985 Bonds (i) upon
call for redemption on March l, 1987, prior to maturity of the 1985
Bonds maturing after September l, 1986, together with accrued
interest to such date for redemption and premium thereon and
(ii) upon maturity on September l, 1987, for the 1985 Bonds maturing
on September l, 1987, together with accrued interest thereon. On or
before such redemption date and maturity date, as applicable, the
Escrow Bank shall transmit such sums to the fiscal agent for the
1985 Bonds appointed under the 1985 Resolution.
Section 4. The Escrow Bank hereby establishes the
Escrow Fund and accepts the deposits made pursuant to this
Agreement. The Escrow Bank shall invest the sums in the Escrow Fund
in United States Treasury Obligations, State and Local Government
Series, or in such manner as shall be in accordance with Section l03
of the Internal Revenue Code of 1954, as amended, and the
regulations promulgated thereunder.
Section 5. The Escrow Bank
with the fiscal agent for the 1985
desirable for carrying out this Escrow
shall make
Bonds as
Agreement.
such arrangements
are necessary or
Section 6. The escrow created
irrevocable and the holders of the 1985 Bonds
lien on all moneys in trust in the Escrow Fund
or applied in accordance with this Agreement.
hereby shall be
shall have an express
until paid out, used
Section 7. The Escrow Bank's fees and costs in
consideration of the services rendered and to be rendered by the
Escrow Bank in carrying out the provisions of this Agreement shall
be an amount which is to be paid to the Escrow Bank by the City at
the time of delivery of the funds to the Escrow Bank for purposes of
establishing the Escrow Fund, and the Escrow Bank will be
compensated separately and in accordance with the Fiscal Agent
Agreement dated December _, 1986, by and between the City and the
Fiscal Agent (the "Fiscal Agent Agreement") for services rendered as
the Fiscal Agent under the Bond Resolution. The Escrow Bank shall
hav~ no lien whatsoever upon any of the moneys, securities or
- 5 -
obligations in said Escrow Fund for the payment of such fees and
expenses. The Ci ty hereby assumes 1 i abi li ty for, and hereby agrees
(whether or not any of the transactions contemplated hereby are
consummated) to indemnify, protect, save and keep' harmless the
Escrow Bank and its respective successors, assigns, agents and
servants from and against, any and all liabilities, obligations,
losses, damages, penalties, claims, actions, suits, costs, expenses
and disbursements (including legal fees and disbursements) of
whatsoever kind and nature which may be imposed on, incurred by, or
asserted against, at any time, the Escrow Bank (whether or not also
indemnified against by the City or any other person under any other
agreement or instrument) and in any way relating to or arising out
of the execution and delivery of this Agreement, the establishment
of the Escrow Fund, the retention of the moneys therein and any
payment, transfer or other application of moneys or securities by
the Escrow Bank in accordance with the provisions of this Escrow
Agreement, or as may arise by reason of any act, omission or error
of the Escrow Bank made in good faith in the conduct of its duties;
provided, however, that the City shall not be required to indemnify
the Escrow Bank against its own negligence, active or passive, or
misconduct. In no event shall the City be liable to any person by
reason of the transactions contemplated hereby other than to the
Escrow Bank as set forth in this Section 7. The indemnities
contained in this Section shall survive the termination of this
Agreement. All moneys remaining in the Escrow Fund pursuant to this
Agreement upon payment in full of the 1985 Bonds and interest
thereon and after payment of any and all fees and expenses of the
Escrow Bank due hereunder shall be remitted to the City and used and
applied by the City in accordance with the laws of the State of
California.
Section 8. If anyone or more of the covenants or
agreements provided in this Agreement on the part of the parties to
be performed should be determined by a court of competent
juriSdiction to be contrary to law, such covenant or agreement shall
be deemed and construed to be severable from the remaining covenants
and agreements herein contained and shall in no way affect the
validity of the remaining provisions of this Agreement.
Section 9. Whenever herein the City or the Escrow Bank
are named or are referred to, such provisions shall be deemed to
include any successor of the City or the Escrow Bank, respectively,
immediate or intermediate, whether so expressed or not. All of the
stipulations, obligations and agreements by or on behalf of, and
other provisions for the benefit of, the City or the Escrow Bank
contained herein:
(1) Shall bind and inure to the benefit for any such
successor, and
(2) Shall bind and inure to the benefit of any officer,
board, authority, agent or instrumentality to whom or to which there
shacl be transferred by or in accordance with law any right, power
- 6 -
or duty of the City or the Escrow Bank, respectively, or of its
successor, the possession of which is necessary or appropriate to
comply with any such stipulations, obligations, agreements or other
provisions hereof.
Section lO.
counterparts, all or
as an original and
instrument.
This Agreement may be executed in several
any of which shall be regarded for all purposes
shall constitute and be but one and the same
- 7 -
IN WITNESS WHEREOF, the parties hereto have each caused
this Agreement to be executed by their duly authorized officers and
their corporate seals to be hereunto affixed and attested as of this
first (lst) day of December, 1986.
CITY OF SAN BERNARDINO, CALIFORNIA
By:
Mayor
(SEAL)
Attest:
By:
City Clerk
FIRST INTERSTATE BANK OF CALIFORNIA
"ESCROW BANK"
By:
Authorized Officer
(BANK SEAL)
SBE077-14/18l4S/kl
11/24/86
RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE
PRELIMINARY OFFICIAL STATEMENT AND AUTHORIZING
THE PREPARATION OF A FINAL OFFICIAL STATEMENT IN
CONNECTION WITH THE ISSUANCE OF CERTAIN
ASSESSMENT BONDS
WHEREAS, the Mayor and Common Council of the City of
San Bernardino, California (the "Mayor and Common Council"), intend
to refund the $l3,400,000 City of San Bernardino, Improvement Bonds,
Assessment District No. 96l, Series 1985 (Park Centre) (the "1985
Bonds" )
by issuing its City of
San Bernardino,
California,
Improvement Refunding Bonds, Assessment District No. 96l, Series
1986, in an aggregate principal amount equal to $12,450,000 (the
"Bonds") pursuant to the terms and provisions of the Refunding Act
of 1984 for 19l5 Improvement Act Bonds, being Streets and Highways
Code of the State of Ca liforni a, Sect ion 9500, et seq. (the "l984
Act"); and
WHEREAS, it is necessary for the City of San Bernardino,
California (the "City"), to approve the Preliminary Official
Statement with respect to the Bonds as distributed by Miller &
Schroeder Financial,
Inc.
(the "Underwriter"), to prospective
purchasers and as presented to the Mayor and Common Council and to
authorize the preparation of a final Official Statement in
connection with the issuance, sale and delivery of the Bonds.
- 1 -
F
NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO, CALIFORNIA, DO HEREBY FIND, RESOLVE, DETERMINE AND
ORDER AS FOLLOWS:
Section 1.
That the above recitals are all true and
correct.
Section 2. That the Preliminary Official Statement with
respect to the Bonds as distributed by the Underwriter to
prospective purchasers and as presented to the Mayor and Common
Council is hereby approved. The City hereby authorizes the
preparation of a final Official Statement in connection with the
issuance, sale and delivery of the Bonds and hereby authorizes the
Mayor, the City Treasurer or such other City officer or official as
is appropriate under the circumstances, to execute the Official
Statement where and as indicated. The City Clerk is hereby
authorized and directed to deliver copies of the Official Statement
to the purchasers of the Bonds and such reasonable quantities as
requested by the purchasers.
Section 3. That the Mayor, the City Treasurer or such
other City official or officer as is appropriate under the
. circumstances, is hereby directed to deliver the Bonds to the
purchasers thereof upon the payment therefor together with accrued
interest to the date of delivery.
- 2 -
Section 4.
The Mayor, the City Treasurer the City
Clerk, or such other authorized officer of the City who may act in
their place, are hereby authorized and directed to execute and
deliver any and all of the necessary closing documents and
certificates in connection with the issuance, sale and delivery of
the Bonds.
The City Treasurer, or First Interstate Bank of
California, as Fiscal Agent acting on behalf of the City, shall pay
the costs of issuance with the proceeds of the Bonds as invoices
representing such costs of issuance are presented to the City Staff
for payment, and such costs of issuance are hereby approved for
payment by the City in accordance with bills or invoices presented
to and approved by the City Treasurer.
Section 5.
This
Resolution
sha 11 take ef f ect upon
adoption.
I HEREBY
adopted by the
San Bernardino at
held on the
the following vote,
CERTIFY
Mayor
a
that
and
the foregoing
Common Counc i 1
resolution
of the
meeting
was duly
Ci ty of
thereof,
1986, by
day of
to wit:
AYES:
Council Members
NAYS:
ABSENT:
City Clerk
- 3 -
day of
The foregoing resolution is hereby approved this
, 1986.
Approved as to form:
A ~<<.~~
~~1tY Attorney
- 4 -
Mayor of the City of
San Bernardino