HomeMy WebLinkAbout09 - Assessment District 75 - Balboa Business DistrictCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 9
June 22, 2004
TO: Mayor and Members of The City Council
FROM: Public Works Department
Patrick Arciniega, Associate Engineer
949 - 644 -3311
parciniega @city.newport- beach.ca.us
SUBJECT: SALE OF BONDS FOR UNDERGROUND ASSESSMENT DISTRICT NO.
75 BALBOA BUSINESS DISTRICT
RECOMMENDATIONS:
Adopt Resolution No. 2004- which sets forth the terms and conditions for the sale of
bonds and approves the Purchase Agreement submitted by the designated underwriter for
Assessment District No. 75.
DISCUSSION:
On April 27, 2004, Assessment District No. 75 was formed and Bond Counsel, Robert
Hessell, recommended the final proposal for the sale of bonds be addressed at the June
22, 2004, Council Meeting. The confirmed assessments were based on the first
installments being collected by the 2004 -2005 tax bill — with provision made for capitalized
interest. All transmittals must be in the hands of the Tax Collector by August 10, 2004.
To date the City has received $283,263.10 in prepaid contributions from property owners,
which includes the $46,885.36 payment for the five City -owned parcels in the district. The
total amount of unpaid assessments remains $821,203.67, which will be financed by the
sale of bonds.
Interest rates and bond discounts have not been established yet. The resolution, in the form
presented, approves all formal terms and conditions related to the sale of bonds through
approval of the Bond Indenture, and approves the Bond Purchase Contract submitted by
M.L. Stern & Company, subject to modifications as necessary and to approval by the City
Manager. The final pricing of bonds will be delegated to the Finance Director (Administrative
Services Director).
Environmental Review:
This project qualifies for a Class 2 California Environmental Quality Act (CEQA) exemption
under Section 15302, item "d" of the Implementing Guidelines as follows:
SUBJECT: SALE OF BONDS FOR UNDERGROUND ASSESSMENT DISTRICT NO. 75 BALBOA BUSINESS DISTRICT
JUNE 22, 2004
Page 2
"Conversion of overhead electric utility distribution system facilities to underground
including connection to existing overhead electric utility distribution lines where the surface
is restored to the condition existing prior to the undergrounding."
Public Notice:
None required.
Assessment District 75 was formed by Public Hearing vote on April 27, 2004. Statement
of Assessment and Notice of Recordation of Assessment and Diagram was published in
the Daily Pilot on May 6 & 12, 2004. Letters were mailed May 3, 2004 to residents of
Assessment District No. 75 with instructions for assessment payment and the cash -
payment deadline of May 27, 2004.
Funding Availability:
Funds will be available subject to the sale of bonds for this Assessment District.
Prepared by:
Patrick Arciniega
Associate Engine
Attachments: Exhibit showing District Boundary
Resolution — Sale of Bonds
Submitted by:
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RESOLUTION NO. 2004
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH AUTHORIZING ISSUANCE OF BONDS AND
APPROVING THE FORM OF CERTAIN BOND DOCUMENTS FOR
ASSESSMENT DISTRICT NO. 75 (BALBOA BUSINESS DISTRICT)
WHEREAS, this City Council has previously adopted its Resolution of
Intention and initiated proceedings for the acquisition of certain public works of
improvement, together with appurtenances and appurtenant work, in a special
assessment district designated as Assessment District No. 75 (Balboa Business
District) (hereinafter referred to as the "Assessment District') 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 (the
"Improvement Act'); and
WHEREAS, this legislative body, to finance the acquisition and
construction of such improvements, declared in its Resolution of Intention to
issue bonds against any unpaid assessments as certified by the Treasurer, such
bonds to issue pursuant to the terms and provisions of the "Improvement Bond
Act of 1915 ", being Division 10 of such Code (the 'Bond Act'); and
WHEREAS, at this time this legislative body desires to set forth the
general terms and conditions relating to the authorization, issuance and
administration of such bonds; and
WHEREAS, the form of a bond indenture (the 'Bond Indenture "), a
preliminary official statement (the 'Preliminary Official Statement'), and a bond
purchase agreement (the 'Bond Purchase Agreement') authorizing the sale of
bonds to M. L. Stern & Co., LLC, as underwriter, which documents contain
information including but not limited to the Assessment District and the terms and
conditions of the bonds, are on file with the City Clerk and are ready for approval.
NOW, THEREFORE, it is hereby Resolved, Determined, and Ordered as
follows:
SECTION 1. Recitals. The above recitals are true and correct.
SECTION 2. Bonds Authorized. Pursuant to the Bond Act, this Resolution
and the Bond Indenture (hereafter defined), the issuance, sale, and delivery of
limited obligation improvement bonds of the City for the Assessment District, to
be designated as City of Newport Beach Assessment District No. 75 (Balboa
Business District) Limited Obligation Improvement Bonds (the 'Bonds "), is hereby
authorized in an aggregate principal amount not to exceed the unpaid
assessments. The date, manner of payment, interest rate or rates, interest
payment dates, denominations, form, registration privileges, manner of
execution, place of payment, terms of redemption and other terms, covenants
and conditions of the Bonds shall be as provided in the Bond Indenture as
executed.
SECTION 3. Authorization and Conditions. The City Manager, the
Director of Administrative Services, and such other official of the City as may be
designated by the City Council, or any of them (each an "Authorized Officer'), are
hereby authorized and directed to execute and deliver the various documents
and instruments described in this Resolution with such additions and changes as
the Authorized Officer deems advisable, provided that no additions or changes
shall authorize an aggregate principal amount of Bonds in excess of the unpaid
assessments. The approval of such additions or changes shall be conclusively
evidenced by the execution and delivery of such documents or instruments by an
Authorized Officer, upon consultation with and review by the City Attorney and
bond counsel.
SECTION 4. Bond Indenture. The form of Bond Indenture is hereby
approved. The Authorized Officer is hereby authorized and directed to cause the
same to be completed and executed on behalf of the City.
SECTION 5. Official Statement and Continuing Disclosure Agreement.
The City Council hereby approves the form of the Preliminary Official Statement
describing the financing described therein, together with any changes therein or
additions thereto deemed advisable by the Authorized Officer. Pursuant to Rule
15c2 -12 under the Securities Exchange Act of 1934 (the "Rule ") the Authorized
Officer is authorized to determine when the Preliminary Official Statement is
deemed final, and the Authorized Official is hereby authorized and directed to
provide written certification thereof. The execution of the final Official Statement,
which shall include such changes and additions thereto deemed advisable by the
Authorized Officer pursuant to the Rule, shall be conclusive evidence of the
approval of the final Official Statement by the City. The Council hereby
authorizes the distribution of the final Official Statement by the purchaser of the
Bonds.
SECTION 6. Sale of Bonds. This City Council hereby authorizes and
approves the sale of the Bonds by negotiation to M. L. Stern & Co., LLC (the
"Underwriter "). The form of the Bond Purchase Agreement is hereby approved
and the Authorized Officer is hereby authorized and directed to execute the Bond
Purchase Agreement on behalf of the City upon the execution thereof by the
Underwriter, subject to Section 3 and further subject to the following conditions:
the aggregate principal amount of the bonds is equal to the unpaid assessments
within the Assessment District (without regard to the portion of the assessment
related to a federal tax on contributions to capital), the underwriter's discount
2
does not exceed two percent (2 %) and the net interest rate on the bonds shall
not exceed seven percent (7 %) per annum.
SECTION 7. Bonds Prepared and Delivered. Upon the execution of the
Bond Purchase Agreement, the Bonds shall be prepared, authenticated and
delivered, all in accordance with the applicable terms of the Bond Act and the
Bond Indenture, and the Authorized Officer and other responsible City officials
are hereby authorized and directed to take such actions as are required under
the Bond Purchase Agreement and the Bond Indenture to complete all actions
required to evidence the delivery of the Bonds upon the receipt of the purchase
price thereof from the Underwriter.
SECTION 8. Annual Assessment Installments. A copy of the resolution
confirming the assessments, which assessments shall constitute the security for
the Bonds, shall be delivered to the City Treasurer, and the City Treasurer shall
keep or cause to be kept the record showing the several installments of principal
and interest on the assessments by assessor's parcel number that are to be
collected each year during the term of the bonds. The City Treasurer shall
establish procedures to promptly respond to inquiries concerning installments on
current tax roles as prescribed by section 53754 of the Government Code of the
State of California. An annual portion of each assessment, together with annual
interest on said assessment, shall be payable in the same manner and at the
same time and in the same installment as the general property taxes of the
County of Orange and shall be payable and become delinquent at the same time
and in the same proportionate amount. Each year the annual installments shall
be submitted to the County Auditor for purposes of collection.
SECTION 9. Covenant to Initiate Foreclosure Proceedings. This
legislative body does further specifically covenant for the benefit of the
bondholders to commence and prosecute to completion foreclosure actions
regarding delinquent installments of the assessments in the manner, within the
time limits and pursuant to the terms and conditions as set forth in the Bond
Indenture as submitted and approved through the adoption of this Resolution.
SECTION 10. Actions. All actions heretofore taken by the officers and
agents of the City with respect to the establishment of the Assessment District
and the sale and issuance of the bonds are hereby approved, confirmed and
ratified, and the proper officers of the City are hereby authorized and directed to
do any and all things and take any and all actions and execute any and all
certificates, agreements, contracts, and other documents, which they, or any of
them, may deem necessary or advisable in order to consummate the lawful
issuance and delivery of the Bonds in accordance with Bond Act, this Resolution,
the Bond Indenture, the Bond Purchase Agreement, and any certificate,
agreement, contract, and other document described in the documents herein
approved.
9
SECTION 11. Effective Date. This resolution shall take effect from and
after its adoption.
PASSED, APPROVED and ADOPTED this 22nd day of June, 2004.
AYES:
NOES:
ABSENT:
ATTEST:
City Clerk
Mayor
CERTIFICATE OF PAID AND UNPAID ASSESSMENTS
ASSESSMENT DISTRICT NO. 75 (BALBOA BUSINESS DISTRICT)
WHEREAS, an assessment and diagram was recorded in the Office of the appointed Superintendent of
Streets of the CITY OF NEWPORT BEACH, CALIFORNIA, in accordance with law, for the acquisition
of improvements in a special assessment district known and designated as Assessment District No. 75
(Balboa Business District), and,
WHEREAS, notice of the recordation of such assessment and of the time and place where and within
which such assessments were to be paid has been duly given in the time and form provided by law, and
certain of such assessments have been paid in whole or in part.
NOW, THEREFORE, I, the undersigned Treasurer, as collection officer, do hereby CERTIFY that the
lists hereinafter set forth are true, correct and complete lists of all assessments paid and unpaid upon such
assessment, and are hereby made and filed by me according to law, and such lists, with respective
assessment and diagram numbers of the lots or parcels of land assessed, and the amounts paid or unpaid
thereon, are as set forth on the attached list, marked Exhibit "A" and by reference incorporated herein.
The total or aggregate amount of UNPAID ASSESSMENTS is the sum of
Spa, 80T.9b
I, the undersigned, hereby certify that the list of paid and unpaid assessments, attached hereto. marked
Exhibit "A ", and by reference incorporated herein, was filed in my office on the Cj1-1� day of
.% —z _, 2004.
DATED: 6 – e% 2004.
TREASURER
CITY OF NEWPORT BEACH
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CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT
3300 Newport Boulevard
P.O. Box 1768
Newport Beach, CA. 92659 -1768
June 21, 2004
TO: LaVonne Harkless
City Clerk
City of Newport Beach
SUBJECT: Assessment Districts 75 Balboa Business District
We are transmitting the following:
No. Copies Description
Request for Advertising
Declaration of Service by Mail
Proof of Publication
Remarks:
For your records.
Iris Lee
Project Engineer
F USERSIPB \V.PAminiegi AD'AD751,Tmns- CClerk- DOGS -AD -75 doc
7
0
CITY OF NEWPORT BEACH
PUBLIC WORKS DEPARTMENT
REQUEST FOR ADVERTISING
TO: DAILY PILOT
/ Attention: Mike Sletten
949 - 646 -5008 — Fax
(Phone 949 - 574 -4251)
TYPE OF AD: LEGALS
TITLE: STATEMENT OF ASSESSMENT
DATESITEM
IS TO RUN: THURSDAY, MAY 6, 2004 AND
WEDNESDAY, MAY 12, 2004
SPECIAL
INSTRUCTIONS: Publish twice
L
Send Proof of Publication to the attention of
Shauna Oyler, Public Works Department
Mail Invoice for Payment to:
P/NAME OF PERSON PLACING AC
CC: City Clerk
Shauna Oyler
Public Works Department
City of Newport Beach
3300 Newport Boulevard
Newport Beach, CA 92663
April 20, 2004
APR v C 104
Mary Locey Phone No. 949 - 644 -3311
f:\ userslpbw \parciniega \2d \ad75�publisn- pilot- statement of assessment.doc
0 6
GFB- FRIEDRICH & ASSOC., INC.
DECLARATION OF SERVICE BY MAIL
I hereby declare that I am a citizen of the United States of America, over the age of 18
years, and a resident of the County of Riverside, State of California. On the date shown below,
under my direction, was deposited in the United States Mail at the City of Newport Beach City
Hall, California, at the request of the City Council of the City of Newport Beach, sealed envelopes
(postage prepaid) each of which contained a true copy of each document, as follows:
Date of Mailing: Delivered to the Newport Beach City Hall on
May 3, 2004 for postmark no later than
May 4, 2004.
Document(s) Mailed: Statement of Assessment for Assessment
District No. 75, including City of Newport
Beach Transmittal Letter, full and
discounted assessment amounts, and
Assessment Bond Financing Program
Property Owner Information (refer to
attached samples).
Name(s) and Address(es): All Assessed Property Owners (111 parcels)
within the boundary of Assessment District
No. 75, whose properties are listed on the
"Assessment Roll" in the Confirmed
Engineer's Report for Assessment District
No. 75, dated April 27, 2004.
At the time of said mailing, there was regular communication by mail between the place of
mailing and the places so addressed.
I declare under penalty of perjury that the foregoing is true and correct.
Executed on May 10 , 2004, at Riverside, California.
By
ohn A. Friedri h
Assessment Engineer
CITY OF NEWPORT BEACH
ASS r"" 9T DISTRICT NO. 75 (BALBOA BUSINESS
Authorized to publish Advertisements of ail koncluding public notices by DISTRICT
Decrea of tte Superior Coun of Orange Count, Cali,,ornia Number A- 5 214, STATEMENT OF
Scpte:nbe: 19, 196;, aad A -24531 11 11, 1953. ASSESSMENT
NOTICE OF RECORDATION OFASSESS ENT AND
PROOF OF PUBLICATION
STATE OF CALIFORNIA)
) ss.
COUNTY OF ORANGE )
I am a Citizen of the United States and a
resident of the County aforesaid; I am
over the age of eighteen years, and not a
party to or interested in the below entitled
matter. 1 am a principal clerk of the
NEWPORT BEACH - COSTA MESA
DAILY PILOT, a newspaper of general
circulation, printed and published in the
City of Costa Mesa, County of Orange,
State of California, and that attached
Notice is a true and complete copy as
was printed and published on the
following dates:
May 6, 2004
May 12, 2004
i declare, under penalty of perjury, that
the foregoing is true and correct.
Executed on M �y 1 9 , 2004
at Costa Mesa, California.
Signature-
M
DIAGRAM
NOTICE IS HEREBY GIVEN to all owners of real
property assessed to pay the costs and expenses
.. of the utility undergrounding improvements to be
acquired under proceedings conducted by the City
Council of the City of Newport Beach. California,
„J)wsuant to the terms and provisions of the
unicipal Improvement Act of 1913 ", being Division
12 of the Streets and Highways Code of the State
.- _....of California, Article XIIID of the Constitution of
the State of California, and the Proposition 218
Omnibus Implementation Act (Government Code
Section 53750 and following) for Assessment
District No. 75 (Balboa Business District) of the
City of Newport Beach.
You are hereby notified that on the April 28,
2004, the Assessment Roll and Diagram to pay
the costs and expenses of such acciisition were
recorded in my office.
The assessments are now due and payable'
immediately at the Office of the Treasurer, and
may be paid within the period expiring on May
27, 2004. The total assessment equals the cost
of the construction of the improvements and the
anticipated amount of the incidental federal tax
liability that may be imposed on the project. The
assessments may be paid in whole or in part
during such period.
In the event any property owner does not pay
any portion of the assessment for the construction
of the improvements before the expiration of such
period, a bond representing the unpaid amount of
the assessment on such parcel for the construction
of the improvements will be issued pursuant to
the 'Improvement Bond Act of 1915 ", being Division
10 of the Streets and Highways Code of the State
of California. Any property owner who has elected
not to pay his or her assessment for the
c anstruction of the improvements in full before
the expiration of such time period will be billed
annual assessment installments for the payment
of the principal of and interest then coming due .
on the bond issued to represent the unpaid
assessment for the construction of the
improvements. The annual assessment installments
will be payable over 15 years and will be collected
as part of the annual County property tax bill.
In the event any property owner does not pay
any portion of the assessment for the incidental
federal tax liability that may be imposed before
the expiration of such period, a bond representing
the unpaid amount of that portion of the
assessment on such parcel will be issued if the
tax is imposed. If, after approximately eight years,
the tax is not imposed, any amount paid on the
assessment for the incidental federal tax liability
will be refunded to the then current owner of the
property for which payment was made. In the
event bonds are issued for that portion of the
assessment imposed for the incidental federal tax
liability. the amount will be payable in annual
assessment installments for the payment of the
principal of and interest then coming due on the
bonds issued and will be collected aver 15 years
as part of the annual County property tax bill.
NOTICE: After bonds have been as that
portion of the assessments funded by the bonds
may be paid and properties cleared of the lien of
that portion of the assessments by the payment'
of the following sums: (a) any installment of
principal and interest which has been posted to
the tax roll for the current fiscal year, (b) the
unpaid balance of principal plus the applicable
redemption premium. (c) the amount of any
delinquencies, including penalties, interest and
casts, (d) the estimated cast of calling bands, (el
interest to the date of call, unless included in (a)
above and (f) a reasonable fee for the cost of
administering the prepayment and the associated
advance retirement of bonds.
Assessments for which bonds have not been
issued bonds may be paid and properties cleared
of the lien of that portion of the assessments by
the payment of the unpaid balance of the
assessments. If. after approximately eight years.
the tax is not imposed, any amount paid on the
assessments for the incidental federal tax liability
will be refunded to the then current owner of the
property for wha.h payment was made.
In addition to the assessment to pay the costs
and expenses of the improvements to be armored,
all owners of real property within the Assessment
District are subject to a separate and additional
assessment to be levied annually to pay for costs
not otherwise reimbursed which will result from
the administration and collection of assessments
or from the administration or registration of any
associated bands.
DATED: April 28, 2004
/s/ Stephen G, Barium
SUPERINTENDENT OF STREETS
Authorized to pablish Advertisements of all kionc!,ding public notices by
Decree of the Superior Court of oranP County. California, hNumbe: A- 6214.
September 29, tg61 and A -7483 f June 11, 1963.
PROOF OF PUBLICATION
STATE OF CALIFORNIA)
) ss.
COUNTY OF ORANGE )
I am a Citizen of the United States and a
resident of the County aforesaid; I am
over the age of eighteen years, and not a
party to or interested in the below entitled
matter. I am„ a principal clerk of the
NEWPORT BEACH - COSTA MESA
DAILY PILOT, a newspaper of general
circulation, printed and published in the
City of Costa Mesa, County of Orange,
State of California, and that attached
Notice is a true and complete copy as
was printed and published on the
following dates:
May 6, 2004
May 12, 2004
I declare, under penalty of perjury, that
the foregoing is true and correct.
Executed on M :„ , zn04
at Costa Mesa, California.
!9 r
Signature-
CITY OF NEWPORT BEACH
ASSENT DISTRICT NO. 75 (BAEBOA BUSINESS
DISTRICT)
STATEMENT OF
iASSESSMENT
NOTICE OF RECORDATION OF ASSESSMENT AND
DIAGRAM
NOTICE IS HEREBY GIVEN to all owners of real
property assessed to pay the costs and expenses
of the utility undergrounding improvements to be
acquired under proceedings conducted by the City
Council of the City of Newport Beach, California,
.,.PgLowant to the terms and provisions of the
u
J'M n icipal Improvement Act of 1913 ", being Division
_ 42 of the Streets and Highways Code of the State
•:of California, Article XIIID of the Constitution of
the State of California, and the Proposition 218
Omnibus Implementation Act (Government Code
Section 53750 and following) for Assessment
District No. 75 (Balboa Business District) of the
City of Newport Beach.
You are hereby notified that on the April 28,
2004, the Assessment Roil and Diagram to pay
the costs and expenses of such acquisition were
r a 0road in my office.
The assessments are now due and payable
immediately at the Office of the Treasurer, and
may be paid within the period expiring on May
27, 2004. The total assessment equals the cost
of the construction of the improvements and the
anticipated amount of the incidental federal tax
liability that may be imposed on the project. The
assessments may be paid in whole or in part
during such period.
In the event any property owner does not pay
any portion of the assessment for the construction
of the improvements before the expiration of such
period, a band representing the unpaid amount of
the assessment on such parcel for the construction
of the improvements will be issued pursuant to
the 'Improvement Bond Act of 1915', being Division
10 of the Streets and Highways Code of the State
of California. Any property owner who has elected
not to pay his or her assessment for the
construction of the improvements in full before
the expiration of such time period will be billed
annual assessment installments for the payment
of the principal of and interest then coming due.
on the bond issued to represent the unpaid I
assessment for the construction of the
improvements. The annual assessment installments
will be payable over 15 years and will he collected
as part of the annual County property tax bill.
In the event any property owner does not pay
any portion of the at for the incidental
federal tax liability that may be imposed before
the expiration of such period. a bond representing
the unpaid amount of that portion of the
assessment on such parcel will be issued if the
tax is imposed. If, after approximately eight years,
the tax is not imposed, any amount paid on the
assessment for the incidental federal tax liability
will be refunded to the then current owner of the
property for which payment was made. In the
event bonds are issued for that portion of the
as ble sessment imposed for the incidental federal tax
:liability, the amount will be paya or annual
assessment installments for the payment of the
Principal of and interest then coming due on the
bonds issued and will be collected over 15 years
as part of the annual County property tax bill,
NOTICE. After bonds have been issued, that
Portion of the assessments funded by the bonds
may be paid and properties cleared of the lien of
that portion of the assessments by the payment;
of the following sums: (a) any installment of
principal and interest which has been posted to
the tax roll for the current fiscal year, (b) the
unpaid balance of principal plus the applicable
redemption premium, (c) the amount of any
delinquencies, including penalties, interest and
costs. (d) the estimated cost of calling bonds, (e')
interest to the date of call, unless included in Call
above and (f) a reasonable fee for the Cost of
administering the prepayment and the associated
advance retirement of bonds.
Assessments for which bonds have not been
issued bonds may be paid and properties cleared I
of the lien of that portion of the assessments by
the payment of the unpaid balance of the
assessments. If, after approximately eight years.
the tax is not imposed. any amount paid on the
assessments for the incidental federal tax liability
will be refunded to the then current owner of the
property for which payment was made.
In addition to the assessment to pay the costs
and expenses of the improvements to be acquired,
all owners of real property within the Assessment
District are subject to a separate and additional
assessment to be levied annually to pay for costs
not otherwise reimbursed which will result from
the administration and c0llecho0 of assessments
or from the administration or registration of any
associated bands.
DATED: April 28, 2004
/s/ Stephen G. Beduin
SUPERINTENDENT OF STREETS
� r�
CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT
3300 Newport Boulevard
P.O. Box 1768
Newport Beach, CA 92659 -1768
June 22, 2004
TO: LaVonne Harkless
City Clerk
City of Newport Beach
SUBJECT: Assessment Districts 75 Balboa Business District
We are transmitting the following:
No. Copies Description
Certificate of Compliance II (original) — June 21, 2004
Remarks:
For your records.
Iris Lee
Project Engineer
F .USENS'3B \N.PArcinicga..ADAD75%1 an - CClerk-CmCon pL-AD -75 doc
CERTIFICATE OF COMPLIANCE
WITH NOTICE REQUIREMENTS
ASSESSMENT DISTRICT NO. 75 (BALBOA BUSINESS DISTRICT)
COUNTY OF ORANGE
CITY OF NEWPORT BEACH
LVOnn2. H. lgcf ku j) , under penalty of perjury, CERTIFIES as follows:
The undersigned is now, and at all times mentioned herein was, the duly qualified and acting CITY
CLERK of the CITY OF NEWPORT BEACH, CALIFORNIA, and as such, accomplished or caused the
accomplishment of the following notice requirements in connection with the referenced Assessment
District, as noted:
RECORDATION
The original of the ASSESSMENT ROLL AND DIAGRAM was recorded in the Office of the
Superintendent of Streets on the ae,i day of ftpf� j , 2004.
A copy of the ASSESSMENT DIAGRAM was filed in the Office of the County Recorder, in Book of
Assessment and Community Facilities District Maps, Book 83 Page(s) 3$- 4 a , on the 3001
day of ]%rt 2004, as Document No. aW40W 3i'4 I lO
A copy of the NOTICE OF ASSESSMENT was recorded in the Office of the County Recorder on the
JOT" day of Nnl 2004, as Document No. 2o04 0 002 1 4 1q}
PUBLICATION
The STATEMENT OF ASSESSMENT was published pursuant to Section 6066 of the Government Code
of the State of California, once a week for two successive weeks, with at least five days intervening
between publications, such publications being accomplished on the (,T* day of
2004, and on the _(a'H day of tla� , 2004.
MAILING
The STATEMENT OF ASSESSMENT was mailed, postage prepaid,, pursuant to the provisions of the
"Municipal Improvement Act of 1913 ",to each person owning property in the Assessment District at the
last known address as it appears on the tax rolls of the County, or on file in the Office of the undersigned,
which Notice designated the property belonging to each such owner and contained a statement of the
amount to be assessed, such mailing being accomplished on the 10" day of 7-1
2004.
EXECUTED this �� 1 day of Tc 2004, at Newport tBeach, California.
CITY CLERK
CITY OF NEWPORT BEACH
#I
RESOLUTION NO. 2004- 57
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH AUTHORIZING ISSUANCE OF BONDS AND
APPROVING THE FORM OF CERTAIN BOND DOCUMENTS FOR
ASSESSMENT DISTRICT NO. 75 (BALBOA BUSINESS DISTRICT)
WHEREAS, this City Council has previously adopted its Resolution of
Intention and initiated proceedings for the acquisition of certain public works of
improvement, together with appurtenances and appurtenant work, in a special
assessment district designated as Assessment District No. 75 (Balboa Business
District) (hereinafter referred to as the "Assessment District') 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 (the
"Improvement Act'); and
WHEREAS, this legislative body, to finance the acquisition and
construction of such improvements, declared in its Resolution of Intention to
issue bonds against any unpaid assessments as certified by the Treasurer, such
bonds to issue pursuant to the terms and provisions of the 'Improvement Bond
Act of 1915 ", being Division 10 of such Code (the 'Bond Act'); and
WHEREAS, at this time this legislative body desires to set forth the
general terms and conditions relating to the authorization, issuance and
administration of such bonds; and
WHEREAS, the form of a bond indenture (the 'Bond Indenture "), a
preliminary official statement (the 'Preliminary Official Statement'), and a bond
purchase agreement (the 'Bond Purchase Agreement') authorizing the sale of
bonds to M. L. Stern & Co., LLC, as underwriter, which documents contain
information including but not limited to the Assessment District and the terms and
conditions of the bonds, are on file with the City Clerk and are ready for approval.
NOW, THEREFORE, it is hereby Resolved, Determined, and Ordered as
follows:
SECTION 1. Recitals. The above recitals are true and correct.
SECTION 2. Bonds Authorized. Pursuant to the Bond Act, this Resolution
and the Bond Indenture (hereafter defined), the issuance, sale, and delivery of
limited obligation improvement bonds of the City for the Assessment District, to
be designated as City of Newport Beach Assessment District No. 75 (Balboa
Business District) Limited Obligation Improvement Bonds (the 'Bonds "), is hereby
authorized in an aggregate principal amount not to exceed the unpaid
assessments. The date, manner of payment, interest rate or rates, interest
payment dates, denominations, form, registration privileges, manner of
execution, place of payment, terms of redemption and other terms, covenants
and conditions of the Bonds shall be as provided in the Bond Indenture as
executed.
SECTION 3. Authorization and Conditions. The City Manager, the
Director of Administrative Services, and such other official of the City as may be
designated by the City Council, or any of them (each an "Authorized Officer "), are
hereby authorized and directed to execute and deliver the various documents
and instruments described in this Resolution with such additions and changes as
the Authorized Officer deems advisable, provided that no additions or changes
shall authorize an aggregate principal amount of Bonds in excess of the unpaid
assessments. The approval of such additions or changes shall be conclusively
evidenced by the execution and delivery of such documents or instruments by an
Authorized Officer, upon consultation with and review by the City Attorney and
bond counsel.
SECTION 4. Bond Indenture. The form of Bond Indenture is hereby
approved. The Authorized Officer is hereby authorized and directed to cause the
same to be completed and executed on behalf of the City.
SECTION 5. Official Statement and Continuinq Disclosure Agreement.
The City Council hereby approves the form of the Preliminary Official Statement
describing the financing described therein, together with any changes therein or
additions thereto deemed advisable by the Authorized Officer. Pursuant to Rule
15c2 -12 under the Securities Exchange Act of 1934 (the "Rule ") the Authorized
Officer is authorized to determine when the Preliminary Official Statement is
deemed final, and the Authorized Official is hereby authorized and directed to
provide written certification thereof. The execution of the final Official Statement,
which shall include such changes and additions thereto deemed advisable by the
Authorized Officer pursuant to the Rule, shall be conclusive evidence of the
approval of the final Official Statement by the City. The Council hereby
authorizes the distribution of the final Official Statement by the purchaser of the
Bonds.
SECTION 6. Sale of Bonds. This City Council hereby authorizes and
approves the sale of the Bonds by negotiation to M. L. Stern & Co., LLC (the
"Underwriter "). The form of the Bond Purchase Agreement is hereby approved
and the Authorized Officer is hereby authorized and directed to execute the Bond
Purchase Agreement on behalf of the City upon the execution thereof by the
Underwriter, subject to Section 3 and further subject to the following conditions:
the aggregate principal amount of the bonds is equal to the unpaid assessments
within the Assessment District (without regard to the portion of the assessment
related to a federal tax on contributions to capital), the underwriter's discount
2
does not exceed two percent (2 %) and the net interest rate on the bonds shall
not exceed seven percent (7 %) per annum.
SECTION 7. Bonds Prepared and Delivered. Upon the execution of the
Bond Purchase Agreement, the Bonds shall be prepared, authenticated and
delivered, all in accordance with the applicable terms of the Bond Act and the
Bond Indenture, and the Authorized Officer and other responsible City officials
are hereby authorized and directed to take such actions as are required under
the Bond Purchase Agreement and the Bond Indenture to complete all actions
required to evidence the delivery of the Bonds upon the receipt of the purchase
price thereof from the Underwriter.
SECTION 8. Annual Assessment Installments. A copy of the resolution
confirming the assessments, which assessments shall constitute the security for
the Bonds, shall be delivered to the City Treasurer, and the City Treasurer shall
keep or cause to be kept the record showing the several installments of principal
and interest on the assessments by assessor's parcel number that are to be
collected each year during the term of the bonds. The City Treasurer shall
establish procedures to promptly respond to inquiries concerning installments on
current tax roles as prescribed by section 53754 of the Government Code of the
State of California. An annual portion of each assessment, together with annual
interest on said assessment, shall be payable in the same manner and at the
same time and in the same installment as the general property taxes of the
County of Orange and shall be payable and become delinquent at the same time
and in the same proportionate amount. Each year the annual installments shall
be submitted to the County Auditor for purposes of collection.
SECTION 9. Covenant to Initiate Foreclosure Proceedings This
legislative body does further specifically covenant for the benefit of the
bondholders to commence and prosecute to completion foreclosure actions
regarding delinquent installments of the assessments in the manner, within the
time limits and pursuant to the terms and conditions as set forth in the Bond
Indenture as submitted and approved through the adoption of this Resolution.
SECTION 10. Actions. All actions heretofore taken by the officers and
agents of the City with respect to the establishment of the Assessment District
and the sale and issuance of the bonds are hereby approved, confirmed and
ratified, and the proper officers of the City are hereby authorized and directed to
do any and all things and take any and all actions and execute any and all
certificates, agreements, contracts, and other documents, which they, or any of
them, may deem necessary or advisable in order to consummate the lawful
issuance and delivery of the Bonds in accordance with Bond Act, this Resolution,
the Bond Indenture, the Bond Purchase Agreement, and any certificate,
agreement, contract, and other document described in the documents herein
approved.
3
SECTION 11. Effective Date. This resolution shall take effect from and
after its adoption.
PASSED, APPROVED and ADOPTED this 22nd day of June, 2004.
AYES: Heffernan, Rosansky, Adams, Bromberg, Webb
Nichols, Mayor Ridgeway
NOES:
ABSENT:
ATTEST:
City Clerk
4
5
/,�
Mayor
STATE OF CALIFORNIA ;
COUNTS" OF ORANGE } ss.
CITY OF NEWPORT BEACH
I, LaVonne Al. Harkless, City Clerk of the City of Newport Beach. California, do
hereby certify that the whole number of members of the City Council is seven; that the foregoing
resolution. being Resolution No. 2004 -57 was duly and regularly introduced before and adopted by
the City Council of said City at a regular meeting of said Council, duly and regularly held on the
22nd day of June, 2004, and that the same was so passed and adopted by the following vote, to wit:
Ayes: Heffernan, Rosansky. Adams, Bromberg, Webb. Nichols, Mayor Ridgeway
Noes: None
Absent: None
Abstain: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the
official seal of said City this 23rd day of June, 2004.
(Seal)
City Clerk
Newport Beach, California