RES-8957 Approving Report Regarding Refunding of Outstanding Bonds Assessment District No. 86-1RESOLUTION NO. 8957
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ORANGE APPROVING AND CONFIRMING REPORT
AND REASSESSMENT FOR THE REFUNDING OF THE
OUTSTANDING BONDS FOR ASSESSMENT DISTRICT
NO, 86-1 (EAST
ORANGE)WHEREAS, on May 12, 1998, the City Council (the "City Council") of the
City of Orange (the "City") adopted Resolution No. 8930 (the "Resolution ofIntention")
determining that the public interest requires the refunding of the outstanding bonds issued for
Assessment District No. 86-1 (East Orange) (the "Assessment District"), and declaring its
intention to refund such bonds (the "Outstanding Bonds") and to levy reassessments as security
for the refunding bonds, all pursuant to Division 11.5 (commencing with Section 9500) of
the Streets and Highway Code of the State of California, the "Refunding Act of 1984
for 1915 Improvement Act
Bonds;" and WHEREAS, pursuant to the Resolution of Intention and Section 9523
of the Streets and Highways Code of the State of California (the "Code"), the
Reassessment Consultant appointed by the Resolution of Intention has prepared and filed with the City Clerk
a report ontaining the matters required by said Section 9523, and such report (the "Report")
has been presented to the City Council for
consideration; and WHEREAS, the City Council has considered the Report and has
determined that the Report contains all of the matters required to be included therein by Section 9523
of the Code and that the Report demonstrates that all of the conditions specified in Section 9525
of the Code will be satisfied, and the City Council may therefore proceed to approve the
Report and onfirm the Reassessment contained
therein; and WHEREAS, by the Resolution ofIntention the City Council determined
that the assessments which are security for the payment of the principal of and interest
on the Outstanding Bonds shall continue as security for the collection of the unpaid
installments of such assessments which have been posted to and are to be collected on the tax
assessment roll for the 1997-98 fiscal year and all unpaid and delinquent installments of
such assessments which were posted to the tax assessment roll for
prior fiscal years;NOW, THEREFORE, BE IT
RESOLVED, DETERMINED AND ORDERED by the City Council of the City of
Orange as follows:Section 1. Findings. The City Council finds that: a) the
Report contains all matters required to be included therein by Section 9523 of the Code; b)
each estimated armual installment of principal and interest on the Reassessment, as contained in the Report,
is less than the corresponding armual installment of principal and interest on
the assessment being superseded and supplanted by the same percentage for all subdivisions of
land within the Assessment District; c) the number of years to maturity for the refunding bonds which
issued upon and secured as to payment by the Reassessment is not more than the number of
years to the last maturity to the Outstanding Bonds being refunded; d) the principal amount of
the Reassessment on each subdivision of land within the Assessment District is less than the
unpaid principal amount of the assessment being superseded and supplanted by the same
percentage for each subdivision of land within the Assessment District; e) the Report assumes a
maximum interest rate on the refunding bonds to be issued to represent the Reassessment which
will not exceed six and nine-tenths percent (6.90%) per armum; f) the Reassessments
contained in the Report do not include the armual installments of the assessments for the 1997-
98 fiscal year which have been posted to and will be collected on the tax assessment roll for
said fiscal year, or unpaid and delinquent installments of the assessments which were posted to
the tax assessment roll for prior fiscal years; and ( it is in the best interests of the owners
of property within the Assessment District that the Report and the Reassessment contained
therein be approved and confirmed and that the City Council proceed to authorize, issue, and
sell refunding bonds pursuant to Chapter 3 (commencing with Section 9600) of Division 11.5 of
the Code.Section 2. Confirmation of Report and Reassessment. The Report
and the Reassessment contained therein are approved and confirmed. Upon the preparation
and approval of the Final Report containing the final Reassessment as provided in Section 3
hereof, the Reassessment and the reassessment diagram contained in the Final Report shall be
recorded in the office of the Superintendent of the Streets of the City, and the City Clerk shall
record such reassessment diagram and a Notice of Reassessment with the County Recorder of the
County of Orange pursuant to Sections 9536, 9537 and 3114 of
the Code.Section 3. Final Report. The City Manager and the Public
Works Director are authorized to approve the Final Report containing the final Reassessment after the
terms of the sale of the refunding bonds are determined and the Reassessment Consultant
has prepared the final Reassessment without presenting the Final Report to the City Council;
provided that the final Reassessment amounts contained in the Final Report shall not be greater
than the Reassessment amounts contained in the Report presented to and confirmed by the
City Council at the meeting at which this resolution is adopted and such Reassessment amounts for
all parcels of property within the Assessment District shall continue to satisfY the requirements
of Section 9525 of the Code. Upon approving the Final Report, the City Manager and the
Public Works Director are authorized and directed to record the reassessment diagram contained in
the Final Report with the Superintendent of Streets of the City and to authorize the City Clerk
to record the reassessment diagram and a Notice of Reassessment as provided in Section
2 above.Section 4. Continuation of Lien of Assessments as Securitv
for Unpaid Installments Thereof. It is further ordered that the lien of the assessments on parcels
of property within the Assessment District shall continue as security for the payment of
the unpaid installments of the assessments and the penalties and interest thereon, including
the installments which have been posted to and are to be collected on the tax assessment roll for
the 1997-98 fiscal year and all unpaid and delinquent installments of such assessments which
were posted to the tax assessment roll for prior fiscal years. Pursuant to Section 9539 of the Code,
the lien of such assessments with respect to such unpaid installments shall be equal in priority to
the lien of the Reassessments. The Notice of Reassessment to be recorded by the City
Clerk pursuant to Reso
Section 2 hereof shall provide notice that the lien of such assessments shall continue as security
for such installments thereof.
Section 5. Refunding Bonds. Refunding bonds shall be issued for the
Assessment District in an aggregate principal amount which shall be equal to and shall not
exceed the total amount of the Reassessment. The number of years to maturity of all such
refunding bonds shall not be more than the number of years to the last maturity of the
Outstanding Bonds for the Assessment District which are to be refunded. The maximum
interest rate on such refunding bonds shall not exceed six and nine-tenths percent (6.90%)
per
annum.Section 6. Special Reserve Fund. Pursuant to the declaration of the intent
of the City Council contained in Section 3 of the Resolution of Intention, provision shall be
made in the resolution authorizing the issuance of the refunding bonds to be issued to refund
the Outstanding Bonds for the establishment from the proceeds of the sale of the refunding bonds
of a special reserve fund for the refunding bonds pursuant to Part 16 (commencing with
Section 8880) of Division 10 of the
Code.Section 7. No City Obligation. As provided in Section 6 of the Resolution
of Intention, the City Council has determined, pursuant to Section 8769 of the Streets
and Highways Code of the State of California, that the City will not obligate itself to
advance available funds form the City Treasury to cure any deficiency which may occur in the
bond redemption fund for the refunding
bonds.ADOPTED this 14th day ofJuly,
1998.
Z A
eCoontz ayor of the City of
Orange
ATTEST:l1t4Af~~,utl- ~/
Ad Cassandra J.
Cathc City Clerk ofthe City of
Orange Reso No. 8957
I, Cassandra J. Cathcart, City Clerk of the City of Orange, do hereby certifY that
the foregoing resolution was adopted by the City Council of the City of Orange at a regular
meeting thereof held on the 14th day of July, 1998 by the following vote of the Council:
AYES:
NOES:
ABSENT:
ABSTAINED:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
MURPHY, SLATER, COONTZ
SPURGEON, ALVAREZ
NONE
NONE
NONE
G~4~I!1Tk..u;(
Cassandra J. Cath
City Clerk of the City of Orange
TJR:dg
Reso No. 8957 4