1979 REG MTG MIN DEC 18 - Laserfiche WebLink

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350 words "Assessment Engineer" after the name of Daniel H. Burnett. Mr. Brown also advised that the issuance of bonds will be handled under the Improvement Bond Act of 1915, rather than the Improvement Bond Act of 1911 as previously done. Mr. Brown said it is felt this change is necessary to accomplish the successful sale of these bonds. Councilman Rehrer asked the technical difference between the Improvement Act of 1911 and the Improvement Bond Act of 1915. Mr. Brown explained that, a 1911 Act bond is basicallyno more than a tax exempt trust deed. An individual bond would be issued to represent each assessment parcel in the boundaries of the assessment district. Thus, if you have very large parcels, you would have large assessments, and thus, large bonds - an in- dividual bond for each assessment per parcel. In cases of default or delinquency, there would be direct foreclosure against the parcel. Mr. Brown continued that the 1915 Act bond is issued in a serial manner, $5,000 denomination bonds. They are not secured through any individual parcel, they are secured through a redemption fund, and the redemption fund is secured by the assessment. The assessment is collected on the tax rolls, the money then comes into the City, into the redemption fund, then the bonds are paid out of the redemption fund. They are easier to market inasmuch as they are in lower denominations and you avoid the situation of having to market a very large bond. In cases of delinquency, it is proposed that the City shall ad- vance available funds to the redemption fund; there is the obligation for the City to advance the loan to the redemption fund, the available funds, to pay for the delinquency. Mr. Brown then explained that in this particular assessment district, they have established a special reserve fund, of seven percent of the bond issue, in case of delinquencies or foreclosures. Mr. Brown stated this reserve fund should never be depleted. Mr. Brown said approximately $427,000 has been set aside to cover any reserves for that purpose. Mr. Brown then continued that the other change in Resolution No. 3954 concerns changes in the works of improvements which are now reflected on the boundary map, and those changes have also been incorporated into this resolution. Moved by Mayor Gonzales, seconded by Councilwoman Cisneros, to approve Resolution No. 3954, with changes as noted. Vote was unanimous. RESOLUTION NO. 3954 - RESOLUTION OF THE CITY COUNCIL DECLARING INTENTION TO ORDER THE CONSTRUCTION OF CERTAIN IMPROVEMENTS TOGETHER WITH AP- PURTENANCES AND APPURTENANT WORK IN CONNECTION THEREWITH IN A PROPOSED ASSESSMENT DISTRICT PURSUANT TO THE TERMS AND PRO- VISIONS OF THE "MUNICIPAL IMPROVEMENT ACT OF 191311; DECLARING THE WORK TO BE OF MORE THAN LOCAL OR ORDINARY BENEFIT AND DESCRIBING THE DISTRICT TO BE ASSESSED TO PAY THE COSTS AND EXPENSES THEREOF; AND PROVIDING FOR THE ISSUANCE OF BONDS. Mr. Charles Cole then gave the Engineer's Report, presenting to the City Council copies of the plans and specifications for Assessment District No. 78-2. Mr. Cole advised that the cost estimate for the project is $6,064,851.85. Mr. Cole stated there is an assessment roll contained in the Engineer's Report, together with an assessment diagram, of the properties to be assessed for payment of the bonds. Mr. Brown said the next resolution for consideration would then be Resolution No. 3955, passing on report and setting the public hearing, which is recommended to be set for Tuesday, February 5, 1980. Moved by Councilwoman Cisneros, seconded by Councilman Temby, approving Resolution No. 3955. Vote was unanimous. RESOLUTION NO. 3955 - RESOLUTION OF THE CITY COUNCIL PASSING ON THE REPORT PRESENTED PURSUANT TO THE "MUNICIPAL IMPROVEMENT ACT OF 1913115 GIVING PRELIMINARY APPROVAL AND SETTING TIME AND PLACE OF PUBLIC HEAR- ING. Mr. Brown continued that before the public hearing is held, the City should give notice and call for construction bids, on Contracts A and B'to be held on Thursday, January 24, 1980, at 10:00 a. m. Mr. Brown stated it would now be in to ap- prove Resolution No. 3956. Moved by Councilwoman Cisneros, seconded by Councilman Temby, to approve Resolution No. 3956. Unanimous vote. DEC 18 1979