Resolution Number 80-1-23-11s 217 --
RESOLUTION NO-.
80-1-23-11
BOND SALE AUTHORIZATION - ASSESSMENT DISTRICT NO. 78-1
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO, CALIFORNIA, AUTHORIZING THE SALE OF SPECIAL
ASSESSMENT BONDS TO FINANCE IMPROVEMENTS IN A SPECIAL
ASSESSMENT DISTRICT.
WHEREAS, in accordance with the terms and provisions of the "Mun-
icipal Improvement Act of 1913," being Division 12 of the Streets
and Highways Code of the State of California, this City Council
has initiated proceedings for the construction of certain public
works of improvement, together with appurtenances and acquisition,
where necessary, in a special assessment district; said special
assessment district known .and designated as
ASSESSMENT DISTRICT NO. 78-1
[CAMINO CAPISTRANO:SCUTH)
(hereinafter referred to as the "Assessment District"); and
WHEREAS, this City Council has further determined that serial
bonds shall be issued to finance the costs and expenses of said
improvements and proceedings, and said bonds shall be issued pur-
suant to the terms and provisions of the "Improvement Act of
1911," being Division 7 of the Streets and Highways Code of the
State of California; and
WHEREAS, at this time, this City Council is desirous of authoriz-
ing the sale of bonds to finance the works of improvement as
proposed for this Assessment District.
NOW, THEREFORE, IT IS HEREBY RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SAN JUAN CAPISTRANO
CALIFORNIA, AS FOLLOWS:
SECTION 1. That the above recitals are all true and correct_
SECTION 2. That F. MACKENZIE BROWN, BOND COUNSEL
is hereby authorized to solicit proposals for the
sale of bonds for the Assessment District, and said
bonds shall not exceed the maximum legal interest
rate of Eight Percent (8%) per annum, and said bonds
shall be issued upon the terms and provisions of the.
"Improvement Act of 1911," being Division 7 of the
Streets and Highways Code of the State of California,
and pursuant to the terms and conditions as set forth
in the Resolution of Intention as previously adopted
for these proceedings.
SECTION 3. That this Resolution is adopted pursuant to the pro-
visions of Section 10602 of the Streets and Highways
Code of the State of California, and it is further
directed that all recommendations relating to the
sale of bonds be presented to this City Council no
later than the time set for the Public Hearing on the
"Report" and related matters for this Assessment
District.
219
SECTION A. The City will provide, at no expense to the bidder,
the unqualified opinion of F. MACKENZIE BROWN,
Attorney at Law, attesting to the validity of the
proceedings and the enforceability of the bonds.
SECTION 5. That pursuant to the provisions'of Section 10600.5,
this City Council hereby determines that the bonds
shall bear interest from their date, and the date of
said bonds shall be as follows:
35th day after the recordation of the
assessment in the Office of the Superintendent
of Streets.
SECTION 6. That the BID SPECIFICATIONS relating to the sale of
the assessment bonds for the Assessment District
are hereby approved and a copy for further particulars
is referenced and attached hereto.
APPROVED and ADOPTED this 23rdday of January, 1980
ATTEST:
CITY CLE
CITY OF AN JUAN CAPISTRANO
STATE OF CALIFORNIA
XFNNETH E. FRIESS, MAYOR
CITY OF SAN JUAN CAPISTRANO
STATE OF CALIFORNIA
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221
BOND SALE INFORMATION
NOTICE OF SALE
PROJECT: ASSESSMENT DISTRICT NO. 78-1
[CAMINO CAPISTRANO SOUTH]-
AGENCY:
OUTH]-AGENCY: CITY OF SAN JUAN CAPISTRANO, CALIFORNIA
IMPROVEMENTS: Construction of certain street and utility
improvements.
PROCEEDINGS: "Municipal Improvement Act of 1913" [Division
12 of the Streets and Highways Code of the
State of California]
BONDS: "Improvement Act of 1911" [Division 7 of the
Streets and Highways Code of the State of
California]
AMOUNT_: The estimated amount of assessments shall not exceed
$313,737.37 This amount will be adjusted and is
subject to the construction bids received and any possible modifi-
cations to be made at the assessment hearing as well as contingent
upon any payments made during the 30 day cash collection period.
It is estimated that the actual amount of the bond issue will be
known approximately 35 days after the conclusion of the public
hearing. The public hearing is scheduled for the 5TH day
of MARCH, 1980
BOND TERM: The bonds shall be payable in TEN (10) annual
installments extending over a period ending NINE (9 )
years from the 2nd day of January next succeeding the next September
1st following their date. Principal payments will -be made in even
annual amounts.
BID: Bonds will be sold for cash to the bidder whose bid, in the
opinion of the City Council, best serves the interest of the owners
in the land and bids will be accepted on a flat basis with no re-
quirement of accrued interest. Each bid shall be for the entire
amount of the bonds with a single rate of interest. No bid will
be considered for less than NINETY-FIVE (95 ) percent of par.
SECURITY DEPOSIT: A certified or cashiers check will be required
to accompany the bid in the amount of $ 6,500.00
TAX EXEMPT STATUS: The successful bidder may withdraw his proposal
if at any time prior to bond delivery the interest on said bonds
shall be declared to be taxable under Federal Income Tax Laws either
by a ruling of the Internal Revenue Service or a decision of a court
of competent jurisdiction.
__... -3-
AWARD RECISION: If the
within forty five days
successful bidder may,
award.
223
bonds are not available for delivery
(45) after their date, the City or the
upon written notice, rescind any previous
MAILED BIDS: Mailed bids should be addressed to the same.
REDEMPTION: The bonds shall provide a five percent (5%) redemption
prem—ium if the assessment obligation is discharged prior to
maturity.
LEGAL OPINION: The proceedings are being conducted by F. MACKENZIE
BROWN, Attorney at Law, who will issue an opinion on the validity
of the proceedings and the enforceability of bonds. Said opinion
will be delivered to purchaser at the time of delivery of bonds
at no expense to bidder and the costs will be the obligation of
the agency.
INTEREST RATE: Bonds shall bear interest from their date at a
rate not to exceed EIGHT ( 8 0) percent. The
actual interest rate will be determined based on the bids
received.
COLLECTION -OF ASSESSMENTS: The unpaid assessments will be
collected at the Office of the City Treasurer.
INVESTMENT SUITABILITY: These assessment bonds are secured by
in ivl ua proper ies within the boundaries of the Assessment
District and neither the City nor any officer thereof is liable
for the payment of the bonds.. The bonds are not an obligation
of the State of California or any political subdivision thereof
and there is no pledge of the full faith in credit of said City.
The limited nature of the obligation for payment could result in
delays in said payment.
PROPERTY TAXES: The City has no direct responsibility for the
collection of taxes and thus any information relating to tax
delinquencies should be obtained from the appropriate county
officials.
DATE. OF BONDS: Said bonds shall be dated as follows:
The 35th day after recordation of the assessment
in the Office of the Street Superintendent.
225
PRIOR LIENS:. There are no prior existing fixed lien special
benefit assessments.
RATING: The City has not made and does not contemplate making any
application to any Rating Agency for a rating on these bonds.
DELIVERY: The delivery of bonds shall be made at the office of the
City Treasurer. A staggered delivery of bonds, mutually acceptable
to the City and purchaser, will be allowed if desired.
ASSESSMENT DESCRIPTIONS AND AMOUNTS: For a description of the
respective parcels of land upon which the assessment and bonds are
to be issued, and for related information reference is made to the
assessment presently on file in the office of the City Clerk, and
upon confirmation to be recorded in the office of the Superintendent
,,of Streets.
-.`AWARD: The Council reserves the right to reject any bid and to
accept the bid that in their opinion, -,best serves the'.interests of
the owners of land within the boundaries of the Assessment District.
All bids shall be for the entire amount of the bonds to issue. A
premium will only be considered for breaking a tie between two bids.
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BONDS AND SECURITY FOR BONDS
AUTHORITY:
227
The proceedings for the works of improvement and the levy of the
special assessment are pursuant to the terms and provisions of
the "Municipal Improvement Act of 1913", being Division 12 of the
Streets and Highways Code of the State of California. There has
been substantial compliance with the proceedings of Division 4
of the Streets and Highways Code, the "Special Assessment Investi-
gation, Limitation and Majority Protest Act of 1931." The bonds
to issue to finance the works of improvements are issued pursuant
to the terms and provisions of the "Improvement Act of 1911", be-
ing Division 7 of the Streets and Highways Code, and specifically
pursuant to Chapter 4 of Part 5 of said Division 7.
SECURITY:
An individual assessment bond will be issued to represent each
individual unpaid assessment within the boundaries of the assess-
ment district and said assessment and bond constitute a direct
lien and obligation against the particular parcel of benefited
property described therein. Should default be made in any pay-
ment upon principal or interest thereon, the owner of said bond
is entitled to initiate foreclosure proceedings in the manner
and form as authorized by law. Neither the public agency issuing
the bonds or any officer thereof is in any way liable for the
payment of the principal or interest on the bonds and the payment
of said bonds is solely payable from the redemption fund created
under the proceedings.
PRIORITIES:
The assessment bonds will have priority over any private debt
such as a judgment, deed of trust or mortgage, regardless of
the time imposed. The assessment lien and obligation is on a
parity with general property taxes and also will have priority
over any subsequently issued special assessment fixed lien
obligations but will be subordinate and inferior to any previous-
ly imposed special assessment debt levied on the particular par-
cel of property.
AMOUNT:
The bonds can issue in any amount in excess of $150.00 and will
issue in the exact amount of the assessment remaining unpaid on
the particular parcel of property. An assessment bond will issue
for each parcel of property and the bond represents the direct
amount of the lien obligation on said particular parcel of proper-
ty.
INTEREST RATE:
The maximum interest rate allowable by law for this type of secur-
ity is eight percent (9%) per annum. Assessment bonds may also
be sold at a discount or at a premium.
DELINQUENCIES:
In the event that there is a default or a delinquency in the pay-
ment of any principal or interest coupon by the property owner
on said bonds, the bond holder is entitled, as of January 2 or
July 2, as the case may be, to immediately declare the entire
229
amount of the unpaid assessment to be due and payable or to direct
or have the lot or parcel advertised in the manner and form as
provided by the "Improvement Act of 1911". The foreclosure pro-
ceedings can be either pursuant to a sale procedure through the
Office of the agency's Treasurer or through a judicial foreclosure
through the Superior Court. The bonds and the assessments are
payable to the Treasurer on each October 15, and April 15, as the
case may be and, on the next June 1 or December 1, if the assess-
ment coupon remains unpaid, a penalty is immediately added in the
amount of one percent (1%) of the delinquent amount. A similar
penalty of one percent (1%) is then added for each succeeding
month as long as the assessments remain unpaid.
FORECLOSURE:
The holder of the bond has a sole remedy in case of default or
delinquency, which is through a foreclosure action initiated
either by the Treasurer of the local agency or by a Court action
through the local Superior Court. Under both foreclosure proceed-
ings, the property owner upon the issuance of the Certificate of
Sale, has a one year period of redemption. The property owner
also, up to the time of the sale of said property, has the right
of either reinstatement of the delinquent bond or, of course,
redemption. Upon the end of the one year period of redemption,
the Certificate of Sale holder has right to make application to
the Treasurer for a deed to the property. The Certificate of
Sale will bear interest at the rate of one percent (1%) per
month on the amounts included in the Certificate of Sale up to
the time that the deed is to be issued.
DISCHARGE OF OBLIGATION:
The property owner, at any time during the life of the bond,
has the right to pay off the unpaid assessment by generally
paying the unpaid principal amount, together with interest to
the next coupon period (January 2 or July 2, as the case may
be). The City Council also has the discretion as to whether or
not to include in the Resolution of Intention the provision for
a five percent (5%) redemption premium and if the Resolution of
Intention did so provide, then the property owner must also pay
five percent (50) redemption on the unpaid principal at the time
of the discharge of the obligation. If the payments are not made
in the time as allowed by law, then penalties are applicable to
said proceedings at the rate of one percent (1%) per month on the
unpaid amount.
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231
STATE OF CALIFORNIA )
COUNTY OF ORANGE
CITY OF SAN JUAN CAPISTRANO )
I, 14ARY ANN HANOVER, City Clerk of the CITY OF SAN JUAN
CAPISTRANO, CALIFORNIA, DO HEREBY CERTIFY that the fore-
going Resolution, being Resolution No. 80-1-23-11was duly
passed, approved and adopted by said City Council, approved
and signed by the Mayor, and attested by the City Clerk,
all at a adjourned regular meeting of said City Council held
on the 23rd day of January, 1980 and that the
same was passed and adopted by the following vote, to -wit:
AYES: COUNCIL MEMBERS. Hausdorfer, Schwartze,
Thorpe, Buchheim and Mayor Friess
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS- None
Executed this 23rd day of January, 1980 , at SAN
JUAN CAPISTRANO,,California.
(SEAL) CITY CLE %a
CITY OF 62KN JUAN CAPISTRANO
STATE OF CALIFORNIA
232
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss. AFFIDAVIT OF POSTING
CITY OF SAN JUAN CAPISTRANO )
MARY ANN HANOVER, being first duly sworn, deposes
and says:
That she is the duly appointed and qualified City
Clerk of the City of San Juan Capistrano;
That in compliance with State laws of the State of
California and in further compliance with City Resolution
No. 79-2-21-7 and on the 25th day of January 1980 ,
she caused to be posted:
being:
RESOLUTION NO. 80-1-23-11
BOND SALE AUTHORIZATION - ASSESSMENT DISTRICT NO. 78-1
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO, CALIFORNIA, AUTHORIZING THE SALE OF
SPECIAL ASSESSMENT BONDS TO FINANCE IMPROVEMENTS
IN A SPECIAL ASSESSMENT DISTRICT
in three (3) public places in the City of San Juan Capistrano,
to wit:
The Administration Building;
The San Juan Hot Springs Dance Hall;
The Orange County Public Library.
MARY ANN(YANtWER, City Cler O
San Juan Capistrano, California
CHECK LIST &D-/- 2 3- l/
ORD. NO ..... _.... RES. NO.._.__...
.. - ------ Mayor has signed
../......... Clerk has signed
.._/_..... City Seal stamped
All blanks typed in
"Absent" ----:�: ._-._..........................
"Noes" .........:E)-=---------------------------------------
------------ - Typed in Official Record Book
.............. Posted to Classifi ,Spr s� /
............. Copies sent to... ,¢ �1� �.`1...7.) . y
.....caxtx T..� ------------------
--------- Legal Publication ordered to be published
(date) ._........................ ...... _ -----
No. Affidavits ....... .... .............-_.............---...--
No. Printed copies required _....:1 --- ._........
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Remarks