HomeMy WebLinkAboutReso 104-1977WJML:JLC:bs I-1'~-71
RESOLUTION NO.''" '~ lO4 -77
A RESOLUTION AMENDING RESOLUTION NO. 84-77,
"A RESOLUTION PROVIDING PROCEDURES FOR THE
ISSUANCE OF 'SEWER REVENUE BONDS AUTHORIZED
BY ORDINANCE, FIXING THE FORM OF THE BONDS
AND PROVIDING COVENANTS FOR THEIR PROTECTION"
CITY OF SOUTH SAN FRANCISCO
$1,100,000 SEWER REVENUE BONDS OF 1977
RESOLVED, by the City Council of the City of South San
Francisco, California, that
WHEREAS, this Council did, on June 15, 1977, adopt its
Resolution No. 84-77, ,,A Resolution'Providing Procedures for
the Issuance of Sewer Revenue Bonds Authorized by Ordinance,
Fixing the Form of the Bonds and Providing Covenants for Their
Protection";
NOW, THEREFORE, IT IS DETERMINED and ORDERED as follows:
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1. That Section 1,16 of Resolution No. 84-77 be amended
to read as follows:
"1.16 Indenture. 'Indenture' means Ordinance No. 736-77,
An Ordinance Authorizing the Issuance of Sewer Revenue Bonds,
adopted June 15, 1977, and any amendments .or supplements
thereto, incorporating the provisions of this Resolution,'and
any amendments or supplements thereto."
2. That Section 1.19 of Resolution No. 84-77 be amended
to read as follows:
"1.19 Revenues;'ReveuUe's''of the'Facilities. "Revenues"
or "Revenues of the Facilities" means all Charges, and all
other income and receipts derived from the operation of
the Facilities, or arising from the Facilities, or' any
improvements, additions, or extensions thereto, including
revenues for deposit in any funds to secure or to provide
fOr the payment of the Bonds, and interest reCeived on the
Revenues or received on any other invested moneys (other than
moneys on deposit in any of the funds established hereby
until transfer to the Revenue Fund) of the Facilities;
provided, however, that while the Bonds of Prior Issue are
outstanding and unpaid, any and all revenues theretofore
pledged pursuant to the indenture therefor, are not Revenues
as herein defined; and further provided, however, that the
portion of the proceeds of any rates and charges required
by the State of California or the United States. Government
to be levied and collected frOm users for the purpose of
repaying all or part of any grants received in connection
with the Works, or any special charges levied for the ex-
press purpose of reimbursing others for all or a portion
of the cost of acquisition or construction of specific
facilities, are not Revenues subject to the lien of the
Bonds "
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3. That Section 3.03 of Resolution No. 84-77 be amended
to read as follows:
"3.03 Callable Bonds; Prior Redemption° Bonds maturing
by their terms on or before July 1, 1988 shall not be subject
to call prior to their fixed maturity date.
"Bonds maturing 'on or after July 1, 1989, shall,
by their terms, be subject to call and redemption, at the
option of the City, in inverse numerical order, on July 1,
1982, or on any interest date thereafter and prior to their
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maturity date or dates, at the principal amount thereof
and accrued interest thereon to the date of redemption,
plus a redemption premium equal to one quarter of one
percent (1/4 of 1%) of such principal amount for each
whole twelve (12) month period, and for any remaining
fraction of a twelve (12) month period, from the date
fixed for redemption to the maturity date of the bonds
so redeemed, provided, however, that in no event shall
the premium paid on prior redemption by call on any bond
exceed three percent (3%)."
4. That Section 6.02 of Resolution No. 84-77 be amended
to read as follows:
"6.02 First 'Lien on ReVenues. The sums required to
meet the payment of interest on and principal of the Bonds
shall be secured by a first and prior lien upon and pledge
of all of the.Gross Revenues and the amounts on deposit in
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any of the funds established hereby for that purpose."
5. That Section 6.03 of Resolution No. 84-77 be amended
to read as follows:
"6.03 Revenues a TrUst Fund. The Revenues and amounts
on deposit in any of the funds established hereby Shall con-
stitute a trust fund for the security and payment of the
Bonds. After the payment of the principal of'and interest
on the Bonds, there shall be paid from the RevenUes such
sums as may be required to pay the costs of necessary and
reasonable maintenance and operation of the Facilities, which
costs shall include the reasonable expenses of administration,
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management, operation, repair and other expenses neces-
sary to maintain and preserve said FaCilities in good
repair and working order; provided, however, that such
costs and expenses may be paid from such sources of funds
other than the Revenues as may be legally available for
such purposes."
6. That Section 6.04 of Resolution No. 84-77 be amended
to read as follows:
"6.04 Equal Parity. All of the Bonds shall be equally
and ratably secured without preference or priority by rea-
son of number, date, date of sale, or of execution or of
delivery of the Bonds, by said lien upon the Revenues and
other amounts in accordance with the Bond Law and this
Indenture. Said lien shall be prior and paramount to any
and all other claims and obligations that have arisen or
may arise or be incurred against the Revenues and said
other amounts, except as otherwise herein provided."
7. That the last paragraph of SectiOn 6,06 of Resolution
No. 84-77 be amended to read as follows:
"Any remaining.balance in the Construction Fund upon
completion of the purpose of the Bonds Shall be transferred
to the Bond Fund."
8. That Section 6.08(b) of Resolution No. 84-77 be amended
to read as follows:
"(b) On the first day of each calendar month, as
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long as any Bonds remain outstanding, beginning six
months prior to the first interest payment date for
which funds have not theretofore been set aside, the
Treasurer shall transfer from the Revenue Fund to the
Bond Fund an equal aliquot part of the amount necessary
(taking into account the amounts then on deposit in the
Bond. Fund) to pay the next maturing installment of in-
terest on the Bonds."
9. That Section 6.08(c) of Resolution No. 84-77 be amended
to read as follows:
"(c) On the first day of each calendar month, as
long as any Bonds remain outstanding, beginning twelve (12)
months prior to the first maturity of the Bond~, the
Treasurer shall transfer from the Revenue Fund to the
Bond Fund an equal aliquot part. of the amount necessary
(taking into account the amounts then on deposit in the
Bond Fund) to pay the next maturing installment of princiPal
of the Bonds."
10. That the first paragraph of Section 6.08(d) of Resolution
No. 84-77 be amended to read as follows:
"(d) In the event that rates and charges are c01-
lected with, and not separately from, taXes, the Treasurer
shall transfer to the Bond Fund the amounts necesSary
(taking into account the amounts then on deposit in the
Bond Fund) to pay the next maturing installments of interest
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and principal forthwith as they become available in the
same proportion as they are collected with the install-
ments of taxes"
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11. That the second paragraph of Section 6.09(b) of
Resolution No. 84-77 be amended to read as follows:
"Moneys in the Reserve Fund shall be used ~solely
for the purpose of paying the principal of and interest on
the Bonds in the event that the moneys in the Bond Fund
are insufficient therefor and shall be withdrawn and trans-
ferred to the Bond Fund; provided, however, that moneys
resulting from investment of the Reserve Fund ~shall be
withdrawn within one year of receipt and transferred to
the Revenue Fund. After reaching the year of maximum debt
service on the Bonds, moneys in said Fund in excess of an
amount equal to the maximum annual principal and interest
requirements to accrue during the remaining period of the
Bonds shall be transferred from the Reserve Fund to the Bond
'Fund. Similar transfers shall be made upon reaching each
successive year of maximum debt service to the end that the
balance in said Fund is always equal to the maximum annual
principal and interest reqUirement for the remaining period
of the Bonds."
12. That Section 11.01 of Resolution No. 84-77 be amended
to read as follows:
"11.01 Certification. On the basis of the facts,
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estimates, and circumstances now in existence and in
existence on the date of issue of the Bonds, as de-
termined by the Treasurer, the Treasurer is authorized
to certify that it is not expected that the proceeds of
the Bonds will be used in a manner that would cause such
obligations to be arbitrage bonds."
13. That ~Section 11.02 of Resolution No. 84-77 is hereby
deleted.
14. 'That Exhibit "A" to Resolution No. 84-77 be amended to
read as Exhibit ,,A,, hereto attached and made a part hereof by
reference.
I hereby certify that the foregoing resolution was
regularly introduced and adopted by the City Council of the
City of SoUth San Francisco at a regular meeting held this
20th day of July , 1977, by the following vote:
AYES,
NOES,
ABSENT,
COUNCILMEMBERS RiChard A.' Battaglia, 'William Ai Borba,
Emanuele N. Damonte , 'Terry 'J. Mirri' and 'Leo
Padreddii
COUNCILMEMBERS None
coUNcILMEMBERS None
ATTE ST:
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form:
EXHIBIT "A"
T° Resolution No. 104-77 - Adopted July 20, 1977
Bond Form: 'i'he Bonds shall be substantially in the following
UNITED STATES OF AMERICA
STATE OF CALIFORNIA
COUNTY OF SA/q MATEO
CITY OF SOUTH SAN FRANCISCO
SEWER REVENUE BOND OF 1977
No. $5,000
CITY OF SOUTH SAN FRANCISCO, a municiPal corporation, in
the County of San Mateo, State of California, hereby acknowledges
itself indebted and for value received promises to pay to the bearer
hereof (unless this bond be registered as hereinafter provided) on
the 1st day of July,
FIVE THOUSAND DOLLARS ($5,000)
together with interest thereon from date to the maturity date
hereof at the rate of percent ( %) per annum,
said interest to be payable on July 1, 1978, and thereafter semi-
annually on January 1 and July 1 in each year, upon presentation
and surrender of the interest coupons hereto attached as they
respectively become due.
Both the principal of and interest on this bond are payable
in lawful money of the United States of America at the office of
the City Treasurer, City Hall, South San Francisco, California.
If payment of this bond or of any interest coupon thereon is
not made in full accordance with the terms of the Indenture provid-
ing for their issuance, such bond or coupon, or both, shall continue
to bear interest at the rate stated herein until paid in full.
This bond is one of an issue of bonds of said City designated
City of South San Francisco Sewer Revenue Bonds of 1977 (the "Bonds"),
aggregating One Million One Hundred Thousand Dollars ($1,100,000)
in principal amount, all of like tenor (except for such variation
as may be required to designate number, maturity, redemption pro-
visions, or interest rate), and all issued by the City for the
purpose of providing money to pay the cost of acquiring, constructing,
and financing certain sewage facilities (the "Works") to serve an
area (the. "Area"), both more fully described in Resolution No. 33-77,
A Resolution of Intention to Issue Sewer Revenue Bonds, adopted by the
City Council on April 6, 1977. The Bonds are authorized by Ordinance
No. 736-77, An Ordinance Authorizin§ the Issuance of Sewer Revenue
Bonds, adopt~ed by the City Council on June 15, 1977, as amended, in-
corporating by reference Resolution No. 84-77, A Resolution Providing
Procedures for the Issuance of Sewer Revenue Bonds Authorized by
Ordinance, Fixing the Form of the Bonds and Providing Covenants for
Their Protection, adopted by the City Council on June 15, 1977, as
amended (said Ordinance, as amended, and said Resolution, as amended,
herein together referred to as the "Indenture"). Reference is hereby
made to the Indenture for the obligations, duties, rights, and privi-
leges hereby created, and in strict accordance with law and Chapter 5
(commencing with Section 4950), Part 3, Division 5 of the Health
and Safety Code of the State of California, commonly referred
to as the Sewer Revenue Bond Act of 1933.
Bonds maturing on or prior to July 1, 1988, are not subject
to redemption by call. Bonds maturing on or after July 1, 1989,
are subject to call and redemption, at the option of the City
Council of said City, in inverse numerical order, on 3uly 1, 1982,
or on any interest payment date thereafter prior to their maturity
date or dates at the principal amount thereof and accrued interest
thereon to the date of redemption, plus a redemption premium equal
to one-quarter of one percent (1/4 of 1%) of such principal amount
for each whole twelve (12) month period, and for any remaining
fraction of a twelve (12) month period, from the date fixed for
redemption to the maturity date of the bond so redeemed, provided,
however, that in no event shall the premium paid on prior redemption
by call on any bond exceed three percent (3%).
At least thirty (30) days prior to the date of call of any
Bonds, notice of redemption shall be published once in a financial
paper published in San Francisco or New York City, and such notice
shall be mailed by registered or certified mail to the last known
holder or holders of any bearer Bonds so called, and to the regis-
tered owner or owners of any registered Bonds so called. No inter-
est shall accrue on said Bonds called for redemption or anY interest
coupons thereon after the redemption date specified in said notice.
The City may also, from time to time, purchase any or all
of the Bonds at prices offered. All Bonds purchased will be
canceled and will not again be reissued.
This bond may be registered as to principal and interest
or as to principal alone; if registered, it may be deregistered,
reregistered or the ownership thereof transferred, upon written
request of the owner and presentation of. the bond to the Treasurer
and payment of any charges therefor, including any cost of
reprinting the coupons, all as set forth in the Indenture'.
The Bonds and coupons appertaining thereto and the Indenture
may be amended, altered or modified, with the consent of the holders
of sixty-six and two,thirds percent (66-2/3%) of the aggregate
principal amount of Bonds then outstanding, in the manner, to the
extent and upon the terms provided in the Indenture.
Both principal and interest are payable solely from the
Revenues and other amounts as defined in the Indenture and Said
City is not obligated to pay the principal hereof or interest
hereon except from the Revenues and said other amounts. The Bonds
constitute ~ first and prior lien upon the said Revenues and said
other amounts except that additional bonds may be issued on a parity
of lien in accordance with the Indenture, or subordinate as to the
lien thereof.
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All of the Revenues and said other amounts are pledged to
pay the principal of and interest on the Bonds, and to provide (1)
a bond fund, (2) a reserve fund, (3) operating, maintenance and
replacement funds, and (4) surplus funds as provided in the Indenture.
The City has created a special 1977 Sewer Revenue Bond Fund
for the payment of said principal and interest and has agreed to
set aside in said fund at the times provided in the Indenture, an
equal aliquot part of the amount necessary to pay interest and
principal which shall fall due at the next ensuing interest and
principal payment dates.
It is hereby certified, recited and declared that all acts,
conditions and things required by law to exist, happen and be per-
formed precedent to and in the issuance of this bond have existed,
happened and been performed in due time, form and manner as re-
quired by law; and that the City Council has established and has
covenanted to maintain rates and charges sufficient, with other
revenues received, to provide net revenues equal to not less than
1.30 times the aggregate amount of principal and interest which
shall become due and payable within the next succeeding %welve (12)
months on all of the Bonds then outstanding.
IN WITNESS WHEREOF, the City Council of the City of South
San Francisco has caused this bond to be signed by its Mayor,
countersigned by its Clerk, the seal of said City to be hereto
affixed, the coupons attached hereto to be signed by its Treasurer,
and this bond to be dated the is% day of September, 1977.
COUNTERSIGNED:
Mayor, City of South San Francisco
Clerk, City of South San Francisco
(SEAL)
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Interest Coupon Form. The coupons shall be substantially
in the following form:
The CITY OF SOUTH S~N FRANCISCO,
San Mateo County, California, will
0n the due date hereof, unless the
bond designated herein is redeemed
prior thereto, pay to the bearer
hereof the sum hereon at the office
of the City Treasurer, City Hall,
South San Francisco, California,
as interest on its SEWER REVENUE
BOND OF 1977, dated September 1,
1977, bearing No. .
Due
$
Coupon No.
ii
Treasurer, City of South San Francisco
Registration Form. The form of endorsement for registration
on said bonds shall be substantially as follows:
This bond is registered in the name of the registered owner
last entered below, and both the principal of and interest on-this
bond are payable only to such owner, unless registered as to prin-
cipal alone, in which event only the principal is so payable; pro-
vided that this bond may be registered to bearer and thereby
discharged from registration and the negotiability hereof restored.
NOTE: There must be no writing below except by the Treasurer.
Date of Type of Name and Address of Signature of
Registry Registration* Registered Owner Treasurer
Principal only
and interest
Principal only
and interest
Principal only
and interest
Principal only
and interest
*If.registration is as to principal only, strike the words "and
interest"; if as to principal and interest, strike the word "only".
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