HomeMy WebLinkAboutReso 77-1989RESOLUTION NO. 77-89
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION AUTHORIZING ISSUANCE
OF THE SERIES 1989-A IMPROVEMENT BONDS
FOR THE EL CAMINO PLAZA ASSESSMENT DISTRICT
WHEREAS, on December 14, 1988, this Council adopted
ResolutiOn No. 145-88, Resolution of Intention, relating to the
acquisition and/or construction of public improvements under and
pursuant !to the provisions of the Municipal Improvement Act of
1913. BY the Resolution of Intention, this Council provided that
serial bonds would be issued thereunder pursuant to the
provisions of the Improvement Bond Act of 1915, Division 10 of
the Streets and Highways Code of California and reference to the
ResolutiOn of Intention is hereby expressly made for further
particulars; and
WHEREAS, notice of the recordation of the assessment and of
the time !within which assessments were to be paid in cash was
duly published and mailed in the manner provided by law, and the
time so provided for receiving payment of-assessments in cash
expired, iand the official who has been designated as Collection
Officer for cash payments of the assessments has filed with the
City, a list of all assessments which remained unpaid; and
WHEREAS, notice of the recordation of the assessment and of
the time Within which assessments were to be paid in cash have
been waived in writing by the owners of all of the property to be
assessed,! which written waivers are on file with the City Clerk
of the City, and a list of the assessments remaining unpaid has
been filed with the City; and
WHEREAS, the Council duly considered the list and determined
that the same was an accurate statement thereof; and
NOW,i THEREFORE, BE IT RESOLVED by the City Council' of the
City of South San Francisco as follows:
SECTION 1. DEFINITIONS. Unless the context otherwise
requires,! the terms defined in this Section 1 shall, for all
purposes!of this Resolution of Issuance , have the meanings
herein specified and shall be equally applicable to both the
singular~and plural forms of any of the terms herein defined.
"Act" means the Improvement Bond Act of 1915, Division 10 of
the St~eets and Highways Code of the State of California.
"Agent" means Bankers Trust Company of California, National
Association, which is designated under Section 6 hereof to
perform ~he duties required under this Resolution for the
authentiCation, transfer, registration, and payment of the Bonds.
"Bond" or "Bonds" means the Limited Obligation Improvement
Bonds, City of South San Francisco, E1 Camino Plaza Assessment
District,! Series 1989-A, issued pursuant to the Act and this
Resolution of Issuance.
"Bond Date" means the date upon which the Bonds are issued,
which is las specified in the Bond Purchase Offer.
"Bond Denomination" means the amount of $5,000.00, which is
the minimum amount in which the Bonds may be issued, except that
one Bondlmay contain any odd amount.
"Bond Purchase Offer" means the offer of the Original
Purchaser to purchase the Bonds as accepted by the City.
"Bond Year" means the one year period beginning on the
anniversary date of the Closing Date in each year and ending on
the day prior to the anniversary date of the Closing Date in the
following year, except that the first Bond Year shall begin on
the Closing Date.
"ClOsing Date" means the date upon which there is a physical
delivery!of the Bonds in exchange for the amount representing the
purchase!of the Bonds by the Original Purchaser.
"Code" means the Internal Revenue Code of 1986.
"Debt Service" means the scheduled amount of interest and
amortization of principal payable on the Bonds during the period
of computation, excluding amounts scheduled during such period
which relate to principal which has been retired before the
beginning of such period.
"Gross Proceeds" means the sum of the following amounts:
(1) i original proceeds, namely, net amounts received by or
for the City as a result of the sale of the Bonds, excluding
originaliproceeds which become transferred proceeds (determined
in accordance with applicable Regulations) of obligations issued
to refund in whole or in part the Bonds;
(2) investment proceeds, namely, amounts received at any
time by Or for the City, such as interest and dividends,
resulting from the investment of any original proceeds (as
referenced in clause (1) above) or investment proceeds (as
referenced in this clause (2)) in Nonpurpose Investments,
increased by any profits and decreased (if necessary, below zero)
by any losses on such investments, excluding investment proceeds
which become transferred proceeds (determined in accordance with
applicable Regulations) of obligations issued to refund in whole
or in part the Bonds;
(3) sinking fund proceeds, namely, amounts, other than
original proceeds or investment proceeds (as referenced in
clauses (!1) and (2) above) of the Bonds, which are held in the
Redemption Fund and any other fund to the extent that the City
reasonably expects to use such other fund to pay Debt Service on
the Bondsi;
(4) i amounts in the Reserve Fund or in any fund established
as a reasonably required reserve for the payment of Debt Service;
(5) ! Investment Property pledged as security for payment of
Debt Serviice by the City;
(6) amounts, other than as specified in this definition,
used to p!ay Debt Service; and
(7) ~ amounts received as a result of investing amounts
describe~ in this definition.
"Impirovement Fund" means the fund established by the
Treasureri pursuant to Section 18 hereof.
"Intierest Payment Date" means each date upon which interest
on the Bo~ds is payable, beginning March 2, 1990, and
semiannuailly on each September 2 and March 2 thereafter until
maturity.
"InVestment Property" means any security (as the term is
defined in section 165(g)(2)(A) or (B) of the Code), obligation,
annuity or investment-type property, excluding, however,
obligations (other than specified private activity bonds as
defined in section 57(e)(5) and (6) of the Code) the interest on
which is iexcluded from gross income under section 103 of the Code
for federal income tax purposes.
"IsSuance Costs" means all costs and expenses of issuance of
the Bonds, including, but not limited to:
(1)~ underwriters' fees other than those taken in the form
of a discount on the Closing Date;
(2) i counsel fees, including bond counsel, underwriters'
counsel, !Issuer's counsel and special tax counsel fees, as well
as any other specialized counsel fees incurred in connection with
the borrowing;
(3)
issuance
(4)
(5)
(6)
financial advisor fees incurred in connection with the
iof the Bonds;
fees of the Agent related to issuance of the Bonds;
appraisal fees related to issuance of the Bonds;
printing costs of the Bonds;
-3-
(7) !publication costs associated with the financing
proceedings; and
(8) i costs of engineering and feasibility studies necessary
to the islsuance of the Bonds.
"Non~urpose Investment" means any Investment Property which
is acquired with the Gross Proceeds of the Bonds and is not
acquired iin order to carry out the governmental purpose of the
Bonds.
"Original Purchaser" means the first purchaser of the Bonds
from the !City.
"Principal Amount" means the aggregate amount of not to
exceed $5!97,504 of the Bonds authorized to be issued under this
Resolutio
"Pti
trade or
activity
excluding
member of
no
rate Business Use" means use directly or indirectly in a
business carried on by a natural person or in any
carried on by a person other than a natural person,
· however, use by a governmental unit and use as a
the general public.
"PrOceeds" means the face amount of the Bonds, plus accrued
interest iand premium less original issue discount, if any.
"prOject" means the sewer and storm drainage acquisitions
and improvements described in the Resolution of Intention.
"Purchase Price" for the purpose of computation of the Yield
of the BOnds, has the same meaning as the term "issue price" in
sectionsi1273(b) and 1274 of the Code, and, in general, means the
initial Offering price to the public (not including bond houses
and brokers, or similar persons or organizations acting in the
capacityiof underwriters or wholesalers) at which price a
substantial amount of the Bonds are sold or, if the Bonds are
privately placed, the price paid by the first buyer of the Bonds
or the acquisition cost of the first buyer. The term "Purchase
Price", for the purpose of computation of the Yield of Nonpurpose
Investments, means the fair market value of the Nonpurpose
Investments on the date of use of Gross Proceeds of the Bonds for
acquisition thereof· or if later· on the date that Investment
Propertylconstituting a Nonpurpose Investment becomes a
NonpurpoSe Investment of the Bonds.
"Redemption Fund" means the fund established by the
Treasurer pursuant to Section 19 hereof
°'Redemption Premium" means the percentage premium of the
principal amount of the Bonds which is three percent (3%).
"Re istered~ Owner" means the person in whose name any Bond
is registered by the Agent pursuant to Section 12 hereof.
-4-
"RegUlations" means temporary and permanent regulations
promulgated under the Code.
"Resierve Fund" means the fund established by the Treasurer
from the Proceeds of the sale of the Bonds all as provided in
Section 210 hereof, in the initial amount as set forth in the Bond
Purchase Offer.
"Resierve Requirement" means the lesser of 10% of the initial
offering ~rice of the Bonds to the public or the maximum annual
debt servlice on the Bonds. For purposes of Reserve Requirement,
"initial !offering price to the public" means the principal amount
of the Bonds plus any accrued interest and any original issue
premium a~d less any original issue discounts.
"Resiolution" or "Resolution of Issuance" means this
Resolutio~ as adopted or hereafter amended.
"Treasurer" means, for all purposes hereof, excepting the
execution of the Bonds pursuant to Section 7 hereof, the Finance
Director !of the City.
"yield'' means that yield which, when used in computing the
presen~ ~th of all payments of principal and interest (or other
payments iin the case of Nonpurpose Investments which require
payments iin a form not characterized as principal and interest)
on a Nonpurpose Investment or on the Bonds produces an amount
equal to !the Purchase Price of such Nonpurpose Investment or the
Bonds, all computed as prescribed in applicable Regulations.
SECTION 2. UNPAID ASSESSMENTS. The assessments now
remaining unpaid with respect to the Bonds are as shown on
Exhibit "~" attached hereto and by this reference made a part
hereof; the aggregate amount thereof is $597,504; and for a
particular description of the lots or parcels of land bearing the
respective assessment numbers set forth in the list, reference is
hereby made to the assessment and to the diagram, and any
amendments thereto, recorded in the office of the Director of
Public WOrks as the Superintendent of Streets of the City after
confirmation thereof by the Council.
SECTION 3. ISSUANCE OF BONDS. The Bonds, in the aggregate
principal amount of $597,504, shall be issued as hereinafter
provided iupon the security of the unpaid assessments in
accordance with, under and pursuant to the provisions of the
Resolution of Intention and the proceedings thereunder duly had
and taken. The Bonds shall be issued only in fully registered
form in the amount of the Bond Denomination or any integral
multiple !thereof, and shall mature in the amounts and on the
dates and at the rates of interest set forth in the Bond Purchase
Offer which are hereby made a part hereof. The Bonds shall be
numbered ~or otherwise identified as determined by the Agent
specified in Section 6 hereof.
-5-
SECTION 4. FORM OF BONDS. The Bonds shall be
substantiially in the form set forth in Exhibit "B" hereto and
hereby made a part hereof.
SECTION 5. PAYMENT OF BONDS. The Bonds shall bear
interest fat the rate or rates determined by the City at the time
of sale oif the Bonds, which rates are as set forth in the Bond
Purchase iOffer, payable on each Interest Payment Date.
Eac~ Bond shall bear interest from the interest payment date
next preceding the date on which it is authenticated and
registered, unless authenticated and registered (i) prior to an
interest ~ayment date and after the close of business of the
fifteentk day preceding such interest payment date, in which
event it !shall bear interest from such interest payment date, or
(ii) prior to the close of business on the fifteenth day
preceding the first Interest Payment Date, in which event it
shall.bear interest from the Bond Date; provided, however, that
if at the time of authentication interest is in default, each
Bond shall bear interest from the date to which interest has been
paid. Each Bond will continue to bear interest after maturity at
the rate Stated therein, provided it is presented at maturity and
payment thereof is refused on the sole ground that there is not
sufficient money in the redemption fund with which to pay same;
if it is!not presented at maturity, interest thereon will run
only until maturity.
Interest on the Bonds shall be paid to the Registered Owner
of each Bond by check or draft mailed to such Registered Owner's
address entered in the registry book provided for herein as of
the fifteenth (15th) day immediately preceding each Interest
Payment Date. Principal and any applicable Redemption Premium of
the Bonds shall be payable in lawful money of the United States
of America at the office of the Agent in San Francisco,
California, upon presentation and surrender of the Bonds as the
same becomes due and payable.
SECTION 6. DESIGNATION OF AGENT. The Agent is hereby
designated to perform the actions and duties required under this
Resolution for the authentication, transfer, registration, and
payment of the Bonds. The Treasurer is hereby authorized and
directedlto enter into agreements with the Agent in furtherance
of the actions and duties of the Agent under this Resolution.
SECTION 7. EXECUTION. The Bonds shall be executed on
behalf of the City and under its official seal by its Treasurer
and by its City Clerk, whose signatures shall be reproduced on
the Bonds by engraved, printed or lithographed facsimile thereof,
and the official seal may be placed on the Bonds in like manner;
such signing and sealing shall constitute and be a sufficient and
binding execution of each and every one of the Bonds. The Bonds
shall then be delivered to the Agent for'authentication by it.
If any officer whose signature appears on the Bonds ceases
to be such officer before the authentication and delivery of the
6
Bonds to the purchaser thereof, such signature shall be as valid
as if such officer had remained in office until the
authentication and delivery of the Bonds.
SECTION 8. AUTHENTICATION. Only such of the Bonds as
shall beair thereon a certificate of authentication substantially
in the foirm below, manually executed by the Agent, shall be valid
or obligatory for any purpose or entitled to the benefits of this
Resolution, and such certificate of the Agent shall be conclusive
evidence that the Bonds so authenticated have been duly executed,
authenticiated and delivered hereunder and are' entitled to the
benefits iof this Resolution. The Agent's certificate of
authentication on any Bond shall be deemed to be executed by it
if signed by an authorized officer or signatory of the Agent, but
it shall not be necessary that the same officer or signatory sign
the certificate of authentication on all of the Bonds issued
hereunder.
[FORM OF CERTIFICATE OF AUTHENTICATION AND REGISTRATION]
This is one of the Bonds described in the within mentioned
ResolutiOn of Issuance, which has been authenticated and
registered on ,
Agent
By
Authorized Officer
SECTION 9. PREPARATION AND DELIVERY OF BONDS. The
Treasure~ is hereby directed to cause the Bonds to be prepared in
accordanCe with this Resolution and to deliver same upon their
completion and execution to the Agent who shall authenticate and
deliver the Bonds to the purchaser thereof, upon receipt of the
purchase Price therefor, and upon receipt of the request of the
City.
SECTION 10. EXCHANGE OF BONDS. Any Bond, upon surrender
thereof at the office of the Agent, together with an assignment
duly exeCuted by the Registered Owner thereof or such Registered
Owner's attorney or legal representative in such form as shall be
satisfactory to the Agent, may, at the option of Registered
Owner, be exchanged for an aggregate principal amount of Bonds
equal to!the principal amount of the Bond so surrendered, and of
any authOrized denomination or denominations. The City shall
make provision for the exchange of Bonds at the office of the
Agent.
-7-
SECTION 11. NEGOTIABILITY, REGISTRATION, AND TRANSFER OF
BONDS. The Agent shall keep books for the registration, and for
the registration of transfers, of the Bonds as provided in this
Resolution which shall at all times be open to inspection by the
City. Th~ transfer of any Bond may be registered only upon such
books upon surrender thereof to the Agent together with an
assignment duly executed by the Registered Owner or such
Registered Owner's attorney or legal representative in such form
as shall be satisfactory to the Agent. Upon any such
registration of transfer, the City shall execute and the Agent
shall authenticate and deliver in exchange for such Bond a new
Bond or Bonds registered in the name of the transferee, of any
denomination or denominations authorized by this resolution, and
in an aggregate principal amount equal to the principal amount of
such Bond!or Bonds so surrendered.
In all cases in which Bonds shall be exchanged, the City
shall execute and the Agent shall authenticate and deliver at the
earliest practicable time Bonds in accordance with the provisions
of this Resolution. All Bonds surrendered in any such exchange
or registration of transfer shall forthwith be cancelled by the
Agent. The City or the Agent may make a charge for every such
exchange or registration of transfer of Bonds sufficient to
reimbursei it for any tax or other governmental charge required to
be paid with respect to such exchange or registration of
transfer,I but no other charge shall be made to any owner for the
privilege of exchanging or registering the transfer of Bonds
under the provisions of this Resolution. Neither the City nor
the Agent! shall be required to make such exchange or registration
of transfer of Bonds during the fifteen (15) days immediately
preceding any Interest Payment Date.
SECTION 12. OWNERSHIP OF BONDS. The Registered Owner
shall be deemed and regarded as the absolute owner thereof for
all purpoises and payment of or on account of the principal, and
redemption premium, if any, of any such Bond, and the interest on
any such !Bond, shall be made only to or upon the order of the
Registere~ Owner thereof or such Registered Owner's legal
representiative. All such payments shall be valid and effectual
{o satisfy and discharge the liability upon such Bond, including
the RedemPtion Premium, if any, and interest thereon to the
extent of the sum or sums so paid.
SECTION 13. COLLECTION OF UNPAID ASSESSMENTS. The unpaid
assessments shown on Exhibit "A" hereto, together with the
interest Ithereon, shall be payable in annual series corresponding
in numbe~ to the number of serial maturities of the Bonds issued.
An a-nua~ proportion of each unpaid assessment shall be payable
in each Year preceding the date of maturity of each of the
several sleries of Bonds issued, sufficient to pay the Bonds when
due, and !such proportion of each unpaid assessment coming due in
any year,i together with the annual interest thereon, shall be
payable in the same manner and at the same time and in the same
installments as the general taxes on real property are payable,
and become delinquent at the same times and in the same
proportionate amounts and bear the same proportionate penalties
and interest after delinquency as do the general taxes on real
property~ Ail sums received from the collection of the unpaid
assessments and of the interest and penalties thereon shall be
placed in the Redemption Fund.
SECTION 14. COVENANT TO FORECLOSE. The City hereby
covenants with and for the benefit of the Registered Owners of
the Bonds that it will order, and cause to be commenced within
150 days!following the date of delinquency, and thereafter
diligent!y prosecuted, an action in the superior court to
foreclose the lien of any assessment or installment thereof not
paid when due, pursuant to and as provided in sections 8830
through 8835, inclusive, of the Act.
SECTION 15. NO ADVANCES FROM AVAILABLE SURPLUS FUNDS. The
City shall not be obligated to advance available surplus funds of
the Citylto cure any deficiency which may occur in the Redemption
Fund; provided, however, that the determination shall not prevent
the City~ in its sole discretion, from so advancing funds.
SECTION 16. REDEMPTION PRIOR TO MATURITY. Each Bond, or
any portion thereof in the amount of the Bond Denomination or any
integrallmultiple thereof, outstanding may be redeemed and paid
in advance of maturity upon any Interest Payment Date in any year
by giving 30-day's notice by registered or certified mail or
personal service to the Registered Owner as required by
applicable provisions of the Act and by paying the principal
amount thereof together with the Redemption Premium plus interest
to the date of advanced maturity, unless sooner surrendered, in
which event the interest will be paid to the date of payment, all
in the manner and as provided in the Act.
The!Treasurer shall cause to be called for redemption and
retire BOnds upon prepayment of assessments in amounts sufficient
therefor, or whenever sufficient surplus funds are available
therefor in the Redemption Fund.
The provisions of Part 11.1 of the Act are applicable to the
advance payment of assessments and to the calling of the Bonds.
SECTION 17. REFUNDING OF BONDS. The Bonds may be refunded
by the City pursuant to Divisions 11 or 11.5 of the Streets and
HighwaysiCode of the State of California upon the conditions as
set forth in appropriate proceedings therefor.
SECTION 18. IMPROVEMENT FUND. The Treasurer shall
establish the Improvement Fund designated by the name and/or
number of the assessment district and the series numbers of the
Bonds into which shall be placed the proceeds of the Bonds,
including any premium (except that any interest accrued from the
Bond Date to the Closing Date shall be placed in the Redemption
Fund provided for herein). All moneys in the Improvement Fund
shall be withdrawn only upon checks or warrants of the City and
shall be applied exclusively to the payment of the Issuance Costs
-9-
and the cOsts and expenses of the Project. Disbursements from
the ImproVement Fund shall be subject to the provisions of
Sections 25 and 26 hereof. Any surplus remaining after payment
of all the costs and expenses shall be used as set forth in the
proceedings and applicable provisions of the Municipal
Improvement Act of 1913, Division 12 of the Streets and Highways
Code of the State of California and the Improvement Fund shall be
closed. :
SECTION 19. REDEMPTION FUND. The Treasurer shall
establishlthe Redemption Fund designated by the name of the
Bonds, into which shall be placed any accrued interest for the
period from the date of the Bonds to the Closing Date and all
sums received from the collection of unpaid assessments provided
for in SeCtion 13 hereof, and of the interest and penalties
thereon. From the Redemption Fund disbursements shall be made to
pay the principal or advance redemption price of the Bonds and
the interest due thereon.
SECTION 20. RESERVE FUND. Upon receipt of the proceeds
from the Sale of the Bonds, the Treasurer shall forthwith
establish!the Reserve Fund, which shall be designated by the name
and/or number of the assessment district proceedings. The amount
of the ReServe Fund shall not exceed the Reserve Requirement.
The moneys in the Reserve Fund shall constitute a trust fund for
the benefit of the Registered Owners of the Bonds and shall be
administered by the City in accordance with and pursuant to the
provisions of Part 16 of the Act; provided that proceeds from
redemption or sale of the properties with respect to which
payment of delinquent assessments and interest thereon was paid
from the Reserve Fund, shall be credited to the Reserve Fund; and
provided further that for the purposes of maintaining the Reserve
Requirement and providing for any required reduction of the
amount of! money in the Reserve Fund during the term of the Bonds
pursuant to Section 8887 of the Act, and applicable provisions of
the Code, all proceeds from investment of moneys in the Reserve
Fund shall accrue to the Reserve Fund or be credited upon the
assessments.
SECTION 21. INVESTMENT OF FUNDS. Moneys in the
Improvement Fund, Redemption Fund, and the Reserve Fund shall,
whenever practicable, be invested in legal investments for the
City undeX applicable law for the moneys held pursuant to this
Resolution at the time when any of such moneys are to be invested
therein. Any income therefrom or interest thereon shall accrue
to and bei deposited in the fund from which the moneys were
invested.
SECTION 22. NO ARBITRAGE. The City shall not take, nor
permit nor suffer to be taken by the Treasurer or otherwise, any
action wi~h respect to the Gross Proceeds of the Bonds which if
such actiion had been reasonably expected to have been taken, or
had been ~eliberately and intentionally taken, on the Closing
Date woul~ have caused the Bonds to be "arbitrage bonds" within
the meaning of section 148(a) of the Code and Regulations.
-10-
SECTION 23. CERTIFICATE AS TO NON-ARBITRAGE. On the basis
of the facts, estimates and circumstances now in existence and in
existence on the date of issue of the Bonds, as determined by the
Treasurer, the Treasurer is authorized and directed to certify
that it is not expected that the proceeds of the issue will be
used in a manner that would cause such obligations to be
arbitrage bonds. Such certification shall be delivered to the
Original!Purchaser on the Closing Date.
SECTION 24. FEDERAL GUARANTEE LIMITATIONS. The City shall
not take,i nor permit nor suffer to be taken, any action if the
result of the same would be to cause the Bonds to be "federally
guaranteed" within the meaning of section 149(b) of the Code and
RegulatiOns.
SECTION 25. PRIVATE BUSINESS USE LIMITATION.
shall assure that:
The City
(A) i not in excess of ten percent (10%) of the Proceeds of
the Bonds is used for Private Business Use if, in addition, the
payment of the principal of, or the interest on more than ten
percent {10%) of the Proceeds of the Bonds is (under the terms of
the Bonds or any underlying arrangement) directly or indirectly,
(i) secured by any interest in property, or payments in respect
of property, used or to be used for a Private Business Use, or
(ii) to be derived from payments (whether or not to the City) in
respect Of property, or borrowed money, used or to be used for a
Private Business Use; and
(B) i in the event that in excess of five percent (5%) of the
Proceedslof the Bonds is used for a Private Business Use, and, in
addition, the payment of the principal of, or the interest on,
more than five percent (5%) of the Proceeds of the Bonds is,
(under t~e terms of the Bonds or any underlying arrangement)
directly~or indirectly, secured by any interest in property, or
paymentslin respect of property, used or to be used for the
Private Business use or is to be derived from payments (whether
or not tO the City) in respect of property, or borrowed money,
used or to be used for a Private Business Use, then, (i) the
excess over the five percent (5%) of the Proceeds of the Bonds
which islused for a Private Business Use shall be used for a
Private Business Use related to a government use of such Proceeds
and (ii)leach such Private Business use over five percent (5%) of
the Proceeds of the Bonds which is related to a government use of
such ProCeeds shall not exceed the amount of such Proceeds which
is used for the government use of Proceeds to which such Private
Business!Use is related.
SECTION 26. PRIVATE LOAN LIMITATION. The City shall
assure that not in excess of five percent (5%) of the Proceeds of
the Bonds is to be used, directly or indirectly, to make or
finance loans (other than loans constituting Nonpurpose
Investments and other than loans which enable the borrower to
finance any governmental tax or assessment of general application
-11-
for a specific essential governmental function) to persons other
than state or local government units.
SECTION 27. SMALL ISSUER EXEMPTION FROM REBATE
REQUIREMENTS. In accordance with section 148(f)(4)(C) of the
Code, thelCity covenants that it is a governmental unit with
general taxing powers; that the Bonds are not private activity
bonds as defined in section 141 of the Code; that ninety-five
percent (95%) or more of the Net Proceeds of the Bonds are to be
used for local governmental activities of the City (or a
governmental unit the jurisdiction of which is entirely within
the jurisdiction of the City), and that the aggregate face amount
of the all tax-exempt obligations (other than private activity
bonds as defined in section 141 of the code) issued by the City
(including all subordinate entities of the City and all entities
which may~issue obligations on behalf of the City) during the
calendar year 1989 will not exceed $5,000,000, excluding,
however, private activity bonds, as defined in section 141 of the
Code and current refunding obligations having a principal amount
not in exCess of the refunded obligation.
SECTION 28. SMALL ISSUER EXEMPTION FROM BANK
NONDEDUCTIBILITY RESTRICTION. The City hereby designates the
Bonds forlpurposes of paragraph (3) of section 265(b) of the Code
and covenants that the Bonds do not constitute private activity
bonds as defined in section 141 of the Code and that the
aggregatel face amount of all tax-exempt obligations issued by the
City (incLuding all subordinate entities of the City and all
entities which may issue obligations on behalf of the City)
during the calendar year 1989 will not exceed $10,000,000,
excluding~ however, private activity bonds, as defined in section
141 of the Code (other than qualified 501(c)(3) bonds as defined
in section 145 of the Code) and current refunding obligations
having a principal amount not in excess of the refunded
obligation.
SECTION 29. AMENDMENT. Without the consent of the
Registered Owners of the Bonds, the City hereafter may amend this
Resolution to add, modify or delete provisions if the same is
necessary or desirable to assure compliance with section 148(f)
of the Cotte relating to rebate of Excess Investment Earnings or
as otherwlse required, to assure the exemption from federal
income ta~'[ation of interest on the Bonds.
SEC'~ION 30. AUTHORITY OF TREASURER. All actions mandated
by this R.'~solution to be performed by the Treasurer may be
performed by the designee of thereof or such other official of
the City )r independent contractor, consultant or trustee duly
authorized by the City to perform such action or actions in
furtherance of all or a specific portion of the requirements
hereof.
-12-
SECTION 31. CERTIFIED COPIES. The City Clerk shall
furnish al certified copy of this resolution to the Treasurer, to
the Agent! and to the Auditor of the County of San Mateo.
I heireby certify that the foregoing Resolution was regularly
introduceid and adopted by the City Council of the City of South
San FranCisco at a
14th day of
the follOWing vote:
AYES:
NOES:
ABSTAIN:
regul ar
June
meeting held on the
· 1989 by
Councilmembers Mark N. Addiego, Richard A. Haffey, Gus
Nicolopulos, and Mayor Roberta Cerri Teglia
None
None
ABSENT: C0uncilmember Jack Drag0
-13-
Limited Obligation Improvement Bonds
CITY OF SOUTH SAN FRANCISCO
E1 Camino Plaza Assessment District
List of Unpaid Assessments
Assessment/
Diagram No.
1
2
3
4
5
6
7
8
Totals
Assessor's
Parcel No.
010-212-070
010-292-110
135-41-10B Parc.2
010-292-020
010-292-030
010-292-040
010-292-200
010-292-130
TOTAL
$ 248,674
152,595
81,086
62,265
156,232
165,223
35,400
37,580
$939,055
Assessment Amount
Series 1989-A Series 1989-B
$ 151,185 $ 97,489
106,062 46,533
56,000 25,086
41,905 20,360
103,879 52,353
108,891 56,332
14,732 20,668
14,850 22,730
$ 597,504 $ 341,551
EXHIBIT A RESOLUTION NO. 77-89
United States of America
State of California
County of San Mateo
Registered
Number A-I
Registered
Limited Obligation Improvement Bond
CITY OF SOUTH SAN FRANCISCO
E1 Camino Plaza Assessment District
Series 1989-A
INTEREST
RATE
MATURITY BOND CUSIP
DATE DATE NUMBER
June 27, 1989
REGISTERED OWNER:
PRINCIPAL AMOUNT:
DOLLARS
under and by virtue of the Improvement Bond Act of 1915,
Division il0 (commencing with Section 8500) of the Streets and
Highways iCode (the "Act"), the City of South San Francisco (the
"City"), iCounty of San Mateo, State of California, will, out of
the redemption fund for the payment of the bonds issued upon the
unpaid portion of assessments made for the acquisition, work and
improvements more fully described in proceedings taken pursuant
to ResolUtion of Intention No. 145-88 adopted by the City Council
of the City on December 14, 1988, pay to the registered owner
named abOve or registered assigns, on the maturity date stated
above, the principal amount stated above, in lawful money of the
United States of America and in like manner will pay interest
from the!interest payment date next preceding the date on which
this bond is authenticated, unless this bond is authenticated and
registered as of an interest payment date, in which event it
shall bear interest from such interest payment date, or unless
this bond is authenticated and registered prior to March 2, 1990,
in whichlevent it shall bear interest from its date until payment
of the principal amount shall have been discharged, at the rate
per a--um stated above, payable semiannually on March 2 and
September 2 in each year commencing on March 2, 1990. Both the
principal hereof and redemption premium hereon are payable at the
Corporate Trust and Agency Group of Bankers Trust Company of
EXHIBIT B RESOLUTION NO. 77-89
B-1
California, National Association, as Authentication Agent,
Transfer Agent, Registrar and Paying Agent (the "Agent"), in San
Francisco, California, and the interest hereon is payable by
check or idraft mailed to the registered owner hereof at the
owner's address as it appears on the records of the Agent, or at
such address as may'have been filed with the Agent, for that
purpose, las of the 15th day immediately preceding each interest
payment date.
This bond will continue to bear interest after maturity at
the rate!above stated; provided, it is presented at maturity and
payment thereof is refused upon the sole ground that there are
not sufficient moneys in the redemption fund with which to pay
same. If it is not presented at maturity, interest thereon will
run until maturity.
This bond shall not be entitled to any benefit under the Act
or the Resolution Authorizing Issuance Of Bonds (the "Resolution
of Issuance"), or become valid or obligatory for any purpose,
until the certificate of authentication and registration hereon
endorsedlshall have been dated and signed by the Agent.
THEiBONDS ARE QUALIFIED TAX-EXEMPT OBLIGATIONS DESIGNATED BY
THE CITY iFOR PURPOSES OF SECTION 265(B) OF THE INTERNAL REVENUE
CODE OF t986.
IN WITNESS WHEREOF, the City of South San Francisco has
caused this bond to be signed in facsimile by the Treasurer of
the Cityland by its Clerk, and has caused its corporate seal to
be reproduced in facsimile hereon all as of the 27th day of June,
1989.
CITY OF SOUTH SAN FRANCISCO
City Clerk
Treasurer
[SEAL]
EXHIBIT B RESOLUTION NO. 77-89
B-2
iCertificate of Authentication and Registration
This is one of the bonds described in the within mentioned
Resolution of Issuance, which has been authenticated and
registered on
Bankers Trust Company of
California, National
Association, Agent
By
Authorized Officer
EXHIBIT B
B-3
RESOLUTION NO. 77-89
This bond is one of several annual series of bonds of like
date, tenor, and effect, but differing in amounts, maturities and
interest irates, issued by the City of South San Francisco under
the Act !and the Resolution of Issuance, for the purpose of
providing means for paying for the improvements described in the
proceedings, and is secured by the moneys in the redemption fund
and by the unpaid portion of the assessments made for the payment
of the improvements, and, including principal and interest, is
payable exclusively out of the fund.
This bond is transferable by the registered owner hereof, in
person o~ by the owner's attorney duly authorized in writing, at
the office of the Agent, subject to the terms and conditions
providediin the Resolution of Issuance, including the payment of
certain Charges, if any, upon surrender and cancellation of this
bond. UPon such transfer, a new registered bond or bonds, of any
authorized denomination or denominations, of the same maturity,
and for %he same aggregate principal amount, will be issued to
the transferee in exchange therefor.
Bonds shall be registered only in the name of an individual
(includimg joint owners), a corporation, a partnership, or a
trust.
Neither the City nor the Agent shall be required to make
such exchange or registration of transfer of bonds during the 15
days immediately preceding any interest payment date.
The City and the Agent may treat the registered owner hereof
as the absolute owner for all purposes, and the City and the
Agent shall not be affected by any notice to the contrary.
ThiS bond or any portion of it in the amount of five
thousandidollars ($5,000), or any integral multiple thereof, may
be redeemed and paid in advance of maturity upon the second day
of March! or September in any year by giving at least 30 days'
notice by registered or certified mail or by personal service to
the registered owner hereof at the registered owner's address as
it appears on the registration books of the Agent and by paying
principaI and accrued interest together with a premium equal to 3
percentum of the principal.
This bond is a limited obligation improvement bond because,
under the Resolution of Issuance, the City is not obligated to
advance ifunds from the City treasury to cover any deficiency
which may occur in the Redemption Fund for the Bonds; however,
the City is not prevented, in its sole discretion, from so
advancing funds.
EX]~IBIT B RESOLUTION NO. 77-89
B-4
Abbreviations
The following abbreviations, when used in the inscription on
the face iof this Bond, shall be construed as though they were
written out in full according to applicable laws or regulations:
iTEN COM
!TEN ENT
iJT TEN
- as tenants in common
- as tenants by the entireties
- as joint tenants with right of
survivorship and not as tenants in common
UNIF GIFT MIN ACT -
Custodian
(Cust) (Minor)
under Uniform Gifts to Minors Act
(State)
Addii
above Iisi
~ional abbreviations may also be used though not in the
EXHIBIT B RESOLUTION NO. 77-89
B-5
Assignment
For, value received the undersigned do(es) hereby sell,
assign and transfer unto
the within Bond and hereby irrevocably constitute(s) and
appoint(s)
~ , attorney,
to transfer the same on the books of the Agent, with full power
of substitution in the premises.
Dated:
Notice: Signature to this
assignment must correspond with
the name as it appears upon the
face of the within Bond in every
particular, without alteration
or enlargement or any change
whatsoever.
Signature Guaranteed
Notice: Signature(s) must be
guaranteed by a member firm of
the New York Stock Exchange or a
commercial bank or trust
company.
EXHIBIT B RESOLUTION NO. 77-89
B-6