HomeMy WebLinkAboutReso 81-1986 · RESOLUTION NO. 8,1-86
A RESOLUTION DETERMINING UNPAID REASSESSMENTS
AND PROVIDING FOR ISSUANCE OF BONDS
THE GATEWAY ASSESSMENT DISTRICT NO. ST-82-2
REASSESSMENT OF SERIESi86-A BONDS
RESOLVED, by the City Council of the City of South San Francisco,
County of San Mateo, California, (herein the "City") that
WHEREAS, by its Resolution No. 156-821 (the "1982 Resolution"), adopted
December 1, 1982, this City Council authorized and issued its "Improvement
Bonds, City of South San Francisco, The Gateway Assessment District, No. ST-
82-2, Series 86-A" (the "1982 Bonds") in the aggregate principal amount of
$15,805,190 to finance the acquisition and construction of public
improvements more particularly described in special assessment proceedings
referenced in said resolution;
WHEREAS, on September 25, 1985 this Council passed and adopted its
Resolution No. 212-85, A Resolution of Intention to Issue Refunding Bonds
and Levy Reassessments for the Security Thereof, The Gateway Assessment
District No. ST-82-2 (Reassessment of Series 86-A Bonds), under the
provisions of the Refunding Act of 1984 for 1915 Improvement Act Bonds,
Division 11.5 of the California Streets and Highways Codes (the "Act"), and
therein provided that serial bonds would be issued thereunder pursuant to
the provisions of the Act, reference to said Resolution of Intention hereby
being expressly made for further particulars;
WHEREAS, this City Council has determined that it is in the best
interest of the City to advance the maturity of the $15,200,000 outstanding
principal amount of the 1982 bonds by providing for reassessments and the
issuance of refunding bonds to refund the ~presently outstanding 1982 Bonds
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pursuant to the Act and proceedings heretofore taken pursuant to said
Resolution of Intention.
WHEREAS, the right to contest the validity of any refunding bonds
issued under the act has been waived in wriiting 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 reassessments remaining unpaid has been
filed with the City Treasurer and Finance Director of the City, and
WHEREAS, this Council duly considered said list and determined that
the same was an accurate statement thereof;
NOW, THEREFORE, IT IS HEREBY DETERMINED AND ORDERED, as follows:
1. List of Unpaid Assessments. The reassessments now remaining
unpaid are as shown on said list and on Exhibit "A" attached hereto and by
this reference made a part hereof; the aggregate amount thereof is
$15,200,000; and for a particular descriptioin of the lots or parcels of land
bearing the respective reassessment numbers set forth in said list,
reference is hereby made to the reassessment and to the reassessment diagram
recorded in the office of the Superintendent of Streets of this City after
confirmation thereof by this Council.
2. Issuance of Bonds. Bonds in the aggregate principal amount of
$15,200,000 shall be issued as hereinafter provided upon the security of
said unpaid reassessments in accordance with the provisions of the Act and
under and pursuant to the provisions of said Resolution of Intention and the
proceedings thereunder duly had and taken. The bonds herein provided to be
issued shall be known as" Refunding Improvement Bonds, City of South San
Francisco, The Gateway Assessment District No. ST-82-2, Reassessment of
Series 86-A Bonds", (the "Bonds") and shall be dated April 30, 1986. The
Bonds shall be issued only in fully registered form in denominations of
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$5000 or any integral multiple thereof, and shall mature in the amounts and
on the dates and at the rates of interest set forth in Exhibit "B" attached'
hereto and by this reference made a part hereof.
3. Payment of Bonds. The Bonds shall bear interest (including
interest represented by the below - described Supplemental Interest
Certificates) at the rate or rates determined by this Council at the time of
sale of the Bonds (not to exceed twelve percent (12%) per annum, or such
higher rate of interest as may be authorized by applicable law at the time
of sale of the Bonds), payable commencing on March 2, 1987, and semiannually
thereafter on September 2 apd March 2 of each year to maturity ("interest
payment dates").
A portion of the interest payable with respect to each Bond shall
in part be represented by a series of detachable fully registered interest
certificates to be designated "Supplemental Interest Certificates". Any
such Supplemental Interest Certificates sihall represent a portion of the
interest on each Bond at the rates per annum to be determined by this
Council at the time of the sale of the Bonds. Such Supplemental Interest
Certificates shall be made redeemable upon the advanced maturity of the
Bonds only upon payment to the registered owner of such certificates, in
addition to accrued interest and all other amounts provided by applicable
law, of the amounts shown in Exhibit "C" attached hereto and hereby made a
part hereof, which amounts represent the then present value of the total
interest, from such date of advance retirement of the bonds, which would
become due in respect of such certificates if such Bonds were paid upon
their regular maturity dates.
Each Bond and Supplemental Interest Certificate shall bear interest
from the interest payment date next preceding the date on which it is
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authenticated and registered, unless authenticated and registered (i) prior
to an interest payment date and after the close of business of the fifteenth
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 of the month preceding March 2, 1987, in which
event it shall bear interest from its 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.
4. Designation of Agent. Bank of America National Trust and Savings
Association is hereby designated as the Transfer Agent, Registrar and Paying
Agent (hereinafter the "Agent") with respect to the Bonds and Supplemental
Interest Certificates. The principal and redemption premium of the Bonds
shall be payable in lawful money of the United States of America at the
office(s) of the Agent in San Francisco, California upon the presentation
and surrender of the Bonds as the same become due and payable. Interest on
the Bonds shall be paid to the registered owner by check or draft mailed to
the address entered in the registry book provided for herein as of the
fifteenth (15th) day immediately preceding each interest payment date.
5. Form. The Bonds and Supplemental Interest Certificates shall be
substantially in the forms set forth in Exhibits "D" and "E", respectively,
attached hereto and made a part hereof hereto.
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6. Execution. The Bonds and Supplemental Interest Certificates
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 sufficieint and binding execution of each
and every one of the Bonds. The Bonds and Supplemental Interest
Certification 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 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.
7. Authentication. Only such of the Bonds and Supplemental Interest
Certificates as shall bear thereon a certificate of authentication
substantially in the form 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 and Supplemental Interest Ciertificates so authenticated have
been duly executed, authenticated and deliivered hereunder and are entitled
to the benefits of this resolution. The Agent's certificate of
authentication on any Bond and Supplemental Interest Certificates shall be
deemed to be executed by it if signed by mn 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]
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This is one of the Bonds and Sup!plemental Interest Certificates
described in the Resolution Determining Unpaid Reassessments and Providing
for Issuance of Bonds. which has been registered on ,
By
Authorized Officer
8. Preparation and Delivery of BondS. The Treasurer of the City is
hereby directed to cause the Bonds and Supplemental Interest Certificates 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 and Supplemental Interest Certificates to the purchaser
thereof, upon receipt of the purchase price therefor, and upon the
performance of the conditions contained in the accepted bid for the Bonds
and Supplemental Interest Certificates.
9. Cost of Issuance Fund. The Treasurer shall establish a special
cost of issuance fund to be designated byl the name and/or number of these
reassessment proceedings (the "Cost of Issuance Fund") into which shall be
placed, as specified in Section 18(a) hereof, the sum of $256,000 which
represents the total of the sums identified in the Reassessment Report
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heretofore approved and adopted by the Cityi Council as the costs incurred in
the issuance of the Bonds. All monies in siaid fund shall be withdrawn only
upon checks or warrants of the City and shall be applied exclusively to the
payment of the costs of conducting said reassessment proceedings and the
issuance of the Bonds. Any sums remaining in the Cost of Issuance Fund
after payment of all costs and legal charges shall be transferred to the
Redemption Fund provided for herein.
10. 1982 Bonds Refunding Escrow Fund.i'The Treasurer shall establish a
special fund to be designated as the 1982 Bonds Refunding Escrow Fund (the
"Escrow Fund") to be held in trust by the 'Treasurer for the benefit of the
holders and owners of the 1982 Bonds and the coupons thereunto appertaining.
Said Escrow Fund shall be subject to and administered by the Treasurer
according to the following instructions:
(a) Deposits. The Treasurer Shall deposit or cause to be
deposited in the Escrow Fund (i) Federal Securities as defined below in the
principal amount of $14,985,000 as more particularly set forth on Exhibit
"F" attached hereto and hereby made a part hereof, which principal amount
shall be purchased or cause to be purchased by said Treasurer with proceeds
of the sale of the Bonds at the prices se!t forth on Exhibit "F", (ii) the
balance of monies from the special reserve fund for the 1982 Bonds as said
balance is specified in Section 18(a) hereof, (iii) the balance of the
proceeds of the sale of the bonds not otherwise used to purchase the Federal
Securities as said balance is specified in the certificate of Finance
Director filed with the Treasurer on the d~te of delivery of the Bonds, and
(iv) an opinion of a certified public accountant obtained pursuant to
Section 9616 of the Act to the effect that the proceeds and investments in
the Escrow Fund are in an amount sufficient, together with interest or other
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gain to be derived from such investment, to pay principal of and interest
and redemption premiums on the 1982 Bonds m~turin§ in the years 1987 through
2003 as of July 2, 1986, the earliest possible redemption date therefor.
"Federal Securities" means direct obligations of the United States of
America as set forth in Section 9600(c) of the Act.
(b) Disposition. All deposi%s referred to in Section lO(a)
above, together with any interest or §ann derived from the investment
thereof, shall be retained by the Treasure~ in the Escrow Fund and applied
solely to the payment of principal of and premium and interest on, the 1982
Bonds on July 2, 1986, that being the earli~est possible redemption date for
said bonds. All of said 1982 Bonds are s!ubject to call and redemption on
said date under the provisions of the i 1982 Resolution. Any balance
remaining in the Escrow Fund after all ofi the 1982 Bonds shall been paid
shall be paid to the City, free and clear of! the liens of the 1982 Bonds and
the Escrow Fund shall thereupon be terminated and closed.
(c) Notice of Redemption. Not liater than 60 days before July 2,
1986, the Treasurer shall give notice of advianced maturity of the 1982 Bonds
as set forth in Section 12 of the 1982 ResDlution, which provides that Part
11.1 of the Improvement Bond Act of 1915 shall apply to the calling of the
1982 Bonds. Said Treasurer shall not later than the time herein provided
supply a copy of said notice to Crocker National Bank, the Paying Agent of
the City with respect to said 1982 Bonds.
(d) Investment of Any Remainin~ Moneys. The Treasurer may
invest and reinvest in Federal Securities any money, if any, remaining from
time to time in the 1982 Bonds Escrow Fundl until needed for payment of the
1982 Bonds in accordance with Section lO(b) hereof, provided, however, that
such moneys shall be invested or reinvested in United States Treasury
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Securities - State and Local Government series, if available, maturing no
later than July 2, 1986, at an interest rate of 0%, or for such maturities
or at such interest rates as shall be apprloved in an opinion of nationally
recognized bond counsel stating that suchlinvestment will not affect, for
Federal income tax purposes, the exemptionlfrom Federal income taxes of the
interest on the 1982 Bonds or the Bonds. Any interest income resulting from
investment or reinvestment of moneys pursuant to this Section lO(d) shall be
paid to the City promptly after, and only upon, the payment and redemption
in full of the 1982 Bonds.
(e) Substitution of Federal Securities. The City may at any
time direct the Treasurer to substitute ~ederal Securities then issued by
the United States of America for any or alil of the Federal Securities then
deposited in the Escrow Fund, provided that any such direction and
substitution shall be accompanied with a certification of an independent
certified public account or firm of Certified public accountants of
favorable national reputation experienced in the refunding of obligations of
political subdivisions that the Federal Securities then to be so deposited
in the Escrow Fund, together with interest to be derived therefrom, shall be
in an amount at all times at least sufficient to make the payments specified
in Section lO(b) hereof and, further, to be accompanied with an opinion of
nationally recognized bond counsel that the substitution will not affect,
for Federal income tax purposes, the exemption from Federal income taxes of
the interest on the 1982 Bonds or the Bonds. In the event that , following
any such substitution of Federal Securitieis pursuant to this Section lO(e),
there is an amount of moneys or Federal Securities in excess of an amount
sufficient to make the payments required by Section lO(a) hereof, such
excess shall be paid to the City.
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(f) Application of Certain Termsl of the 1982 Resolution. All of
the terms of the 1982 Resolution relatin§i to the making of payments of
principal, premium and interest payments on! the 1982 Bonds are incorporated
herein as if set forth in full herein.
(g) Unclaimed Funds. NotwithStanding any other provision
hereof, any money held by the Treasurer .hereunder in trust for the payment
of the principal of, premium and interest On the 1982 Bonds and remaining
unclaimed for four (4) years after the principal of all of the 1982 Bonds
shall have been called for redemption and after the date of redemption shall
then be repaid to the City upon its written request, and the holders of the
1982 Bonds shall thereafter be entitled tol look only to the City for the
repayment thereof. In the event of the repayment of any such money to the
City as aforesaid, the holders or owners o~ the 1982 Bonds secured hereby
with respect to which such money was deposited shall thereafter be deemed to
be unsecured creditors of the City, without ~nterest.
11. Redemption Fund. Said Treasuree shall keep a redemption fund
designated by the name of the Bonds (the "Redemption Fund"), into which
shall be placed any accrued interest for the period from the date of the
Bonds to the date of delivery thereof, any funded or capitalized interest
from the proceeds of the sale of the Bonds and all sums received from the
collection of unpaid assessments and reassiessments provided for in Section
12 hereof, and of the interest and penaltiies thereon, and from which fund
disbursement shall be made to pay the principal or advance redemption price
of the Bonds and the interest due thereon.
12. Collection of Unpaid Reassessmen!ts. The unpaid reassessments
shown on said list, together with the interest thereon, shall be payable in
annual series Corresponding in number to thie number of serial maturities of
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the Bonds issued. An annual proportion of each unpaid reassessment shall be
payable in each year preceding the date of! maturity of each of the several
series of bonds issued, sufficient to pay the bonds when due, and such
proportion of each unpaid reassessment coming due in any year, together with
the annual interest thereon, shall be payable in the same manner and at the
same time and in the same installment 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. All sums
received from the collection of said unpaid reassessments and of the
interest and penalties thereon shall be~ placed in the Redemption Fund
provided for herein.
13. Redemption Prior to Maturity. Each Bond, or any portion thereof
in the amount of five thousand dollars ($)5000.00) of any integral multiple
thereof, outstanding may be redeemed and Paid in advance of maturity upon
the second day of March or September in any year by giving at least 60 days
notice and by paying the principal amounti thereof together with a premium
equal to 3% of the principal plus interes~ to the date of advanced maturity,
unless sooner surrendered, in which event said interest will be paid to the
date of payment, all in the manner and as provided in the Improvement Bond
Act of 1915.
The provisions of Part 11.1 of Division 1D of the Streets and Highways
Code, providing for an alternative proceidure for the advance payment of
assessments and the calling of Bonds, shall apply to Bonds issued pursuant
to the provisions hereof; provided, )however that, with respect to
Supplemental Interest Certificates, Part 8! and Part 11, and not Part 11.1,
of said Division 10, shall apply to the advance payment of reassessments and
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the payment of interest with respect to iany such Supplemental Interest
Certificates upon advanced retirement of iBonds and further reference is
hereby made to Exhibit "C" hereto for the amounts payable thereon.
The Treasurer shall call for redemption and retire Bonds upon
prepayment of reassessments in amounts sufficient therefor, or whenever
sufficient surplus funds are available therefor in the Redemption Fund. In
selecting Bonds for retirement, the lowest numbered bonds of the various
annual maturities shall be chosen pro rata ~in a manner intended to disturb
as little as possible the relationship of unpaid reassessments to Bonds
outstanding.
14. Exchange of Bonds. Any Bond or Supplemental Interest
Certificate, upon surrender thereof at the office of the Agent, together
with an assignment duly executed by the registered owner thereof or such
owner's attorney or legal representative in such form as shall be
satisfactory to the Agent, may, at the option of such owner be exchanged for
an aggregate principal amount of bonds equal to the principal amount of the
bond so surrendered, and of any authorized denominations.
The City shall make provision for the exchange of Bonds at the office
of the Agent.
15. Negotiability, Registration andlTransfer of Bonds and
Supplemental Interest Certificates. The Agent shall keep books for the
registration, and for the registration of transfers, of Bonds and
Supplemental Interest Certificates as provided in this resolution which
shall at all times be open to inspection bY the City. The transfer of any
Bond or Supplemental Certificate may be re§istered only upon such books upon
surrender thereof to the Agent together with an assignment duly executed by
the owner or his attorney or legal representative in such form as shall be
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satisfactory to the Agent. Upon any such registration of transfer the City
shall execute and the Agent shall authentiicate and deliver in exchange for
such Bond or Supplemental Interest Certificate a new Bond or Bonds or
Supplemental Interest Certificate registered in the name of the transfer, of
any denomination or denominations authorized by this resolution, and in an
aggregate principal amount equal to the plrincipal amount of such Bond or
Bonds or Supplemental Interest Cer%ificates so surrendered.
In all cases in which Bonds or SuPplemental Interest Certificates
shall be exchanged, the City shall execute and the Agent shall authenticate
and deliver at the earliest practicable time Bonds or Supplemental Interest
Certificates in accordance with the proviisions of this resolution. All
Bonds or Supplemental Interest Certificates: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 sufficient to reimburse it fOr any tax or other governmental
charge required to be paid with respect to such exchange or registration of
transfer, but no other charge shall be madie to any owner for the privilege
of such exchange or registration of transfer under the provisions of this
resolution. Neither the City nor the Agenlt shall be required to make such
exchange or registration of transfer of Bonds or Supplemental Interest
Certificates during the fifteen (15) days immediately preceding any March 2
or September 2.
16. Ownership of Bonds and Supplemental Interest Certificates. The
person in whose name any Bond or Supplemental Interest Certificate, shall be
registered shall be deemed and regarded as the absolute owner thereof for
all purposes 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 or
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Supplemental Interest Certificate, shall be made only to or upon the order
of the registered owner thereof or his legal representative. All such
payments shall be valid and effectual to satisfy and discharge the liability
upon such Bond or Supplemental IntereSt Certificate, including the
redemption premium, if any, and interest thereon to the extent of the sum or
sums so paid.
17. Advances from Available SurpluslFunds. The City shall be the
purchaser of property upon which paymen~ of an annual installment of
principal and interest due upon any of said unpaid reassessments is
delinquent, in like manner in which it beclomes or may become the purchaser
of property so for the nonpayment of generail taxes, and shall transfer from
available surplus funds into the redemption fund for the Bonds, as an
advance recoverable upon sale or redemption of the property, the amount of
the delinquent unpaid reassessment installmient upon which said sale is made.
The City shall also pay and transfer from available surplus funds into said
redemption fund, as an advance recoverable upon sale or redemption of the
property, the amount of an future delinquent unpaid reassessment
installments on such property pending redemption.
18. Reserve Fund.
(a) Upon placement of the proceeds from the sale of the Bonds in
the Escrow Fund, the Treasurer shall forthwith transfer the sum of
$1,200,000 from the special reserve fund heretofore created and maintained
with respect to the 1982 Bonds, into a new ~pecial reserve fund, which shall
be designated by the name and/or number of these reassessment proceedings
(the "Reserve Fund"). The sum of $256,000 shall be transferred from said
special reserve fund for said 1982 Bonds to the Cost of Issuance Fund
provided for in Section 9 hereof. The balance of funds remaining in said
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special reserve fund with respect to the 1982 Bonds (which balance shall be
certified by the Finance Director in writin§ to the Treasurer on the date of
delivery of the Bonds) shall be transferred to the Escrow Fund created
pursuant to Section 10 hereof. The money in the Reserve Fund shall be
administered by the City in accordance with and pursuant to the provisions
of Part 16 of the Improvement Bond Act of~1915; provided, that proceeds from
redemption or sale of the properties with respect to which payment of
delinquent reassessments and interest theireon was paid from the Reserve
Fund, shall be credited to the Reserve Fund; and provided, further, that for
the purposes of (1) assuring that the bonds to be issued will not become
arbitrage bonds as defined in the Internal! Revenue Code of 1954, as amended
(Title 26 of the United States Code) and regulations promulgated thereunder
by the Department of Treasury, and (2) providing for reduction of the amount
of money in the reserve fund during the term of the bonds pursuant to
Section 8887 of the California Streets and Highways Code, all proceeds from
investment of monies in the reserve fuind shall be credited upon the
assessments. Provided, however, that in each year hereafter, beginning in
1986, the~.City Council, no later than its final meeting in the month of
July, shall determine the amount reasonably required to be maintained in
said Reserve Fund. Such determination shalll take into account the amount of
outstanding indebtedness including unpaiid principal of reassesment and
interest thereon, the amount as shown on the San Mateo County tax roll
applicable to the next-ensuing fiscal year for lands and improvements
subject to the lien of the reasseissments herein described, and
delinquencies, if any, in the payment iof installments of reassesments.
Based upon the foregoing, the amount in said Reserve Fund shall be reduced
by an amount equal to fifty (50) percent of the increase in assessed
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valuation from the prior fiscal year, but such reduction shall not result in
the total amount in said Reserve Fund beingi less than 6% of the outstanding
principal amount of the Bonds. In the event that the crediting of any
portion of such proceeds upon reassessmentsinot theretofore paid in full in
cash would result in monies in the bond redemption fund remaining therein
for a period of more than twelve (12) months, then any portion of such
proceeds which would otherwise remain in the bond redemption fund for a
period of more than twelve (12) months shalil be used to call bonds prior to
their maturity date on the earliest call date next succeeding the deposit
thereof in the Redemption Fund.
19. Investment of Funds. Monies in the Redemption Fund and the
Reserve Fund shall, whenever practicable, be invested in legal investments
for the City of South San Francisco under aipplicable law for the monies held
pursuant to this resolution at the time when any of such monies are to be
invested therein. Any income therefrom or iinterest thereon shall accrue to
and be deposited in the fund from which said monies were invested, except as
provided in Section 18 hereof.
20. Covenant to Foreclose.
the benefit of the owners of
The City hereby covenants with and for
the Boinds and Supplemental Interest
Certificates that it will order, and causei to be commenced within 150 days
following the date of delinquency, and thereafter diligently prosecuted, an
action in the superior court to foreclosel the lien of any reassessment or
installment hereof not paid when due, pursuant to and as provided in
Sections 8830 through 8835, inclusive, of the Streets and Highways Code of
the State of California.
21. Non-Arbitrage Covenant. The City hereby covenants with the
owners of the 'Bonds that it will make no use of the proceeds of the Bonds at
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any time during the term thereof which, if such use had been reasonably
expected on the date said bonds were issued, would have caused the Bonds to
be arbitrage bonds within the meaning of Section 103(c) of the Internal
Revenue Code of 1954, as amended, and the: Treasury Regulations promulgated
thereunder.
22. Certificate as to Non-Arbitrage.i On the basis of the facts,
estimates and circumstances now in existence and in existence on the date of
issue of said bonds, as determined by the Treasurer, said Treasurer is
authorized and directed to certify that itlis not expected that the proceeds
of said issue will be used in a manner that would cause such obligations to
be arbitrage bonds. Such certification shall be delivered to the purchaser
of said bonds at the time of delivery of and payment for said bonds.
23. No Federal Guarantee. The Citylshall take no action nor permit
nor suffer any action to be taken if the result of the same would cause the
Bonds to be a federally guaranteed obligation within the meaning of section
103{h) of the Code. For purposes of this resolution, the term "Code" means
the Internal Revenue Code of 1954, as amended, or any internal revenue code
which is enacted in lieu of the Internal Revenue Code of 1954. Any section
reference herein to the Code shall be deemed to be and shall refer to any
section of similar import enacted in lieu )or in amendment of such section or
contained in any internal revenue code enacted in lieu of the Internal
Revenue Code of 1954.
24. Amendment. Without the consent of the Bondowners, the City
hereafter may amend this Resolution to add, modify or delete provisions if
the same is necessary or desirable, in ~the opinion of Bond Counsel, to
assure the exemption of interest on the BOnds from Federal income taxation,
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so long as such amendment will not adversely affect the rights of the owners
of the Bonds or Supplemental Interest Certificates.
25. Authority of Treasurer. All actiions mandated by this resolution
to be performed by the Treasurer may be pierformed by the designee thereof
including, but not limited to, a Corporate Escrow Agent or such other
official of the City duly authorized by the City Council of the City to
perform such action or actions in furtherance of the requirements hereof.
26. Certified Copies. The City Clerk shall furnish a certified copy
of this resolution to the Treasurer, to thie Finance Director, to the Agent
and to the Auditor of the County of San Matelo.
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 on this 23rd day o!f April , 1986, by the
following vote:
AYES: Councilmembers Mark N. Addiego, John i"Jack" Drago, Richard A. Haffe~.
Gus Nicolopulos and Roberta Cerri Teglia
NOES: None
ABSENT: None
City Clerk ~
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Assessment
Number
1
2
3
4
5
6
7
8-1
8-2
9
10-1
10-2
10-3
11
I2
13
14
THE
LIST OF UNPAID REASS!ESSMENTS
CITY OF SOUTH SAN FRANCISCO
GATEWAY ASSESSMENT DISTEICT NO. ST-82-2
REASSESSMENT OF SERIESi86-A BONDS
Assessor's
Parcel No.
Amount of
Reassessment Unpaid
015-025-020
015-023-030
015-024-050
015-024-04(
015-024-03[
015-024-02C
015-024-01£
015-024-066
015-024-07C
D15-D23-14C
015-023-19C
015-023-20[
015-023-26£
015-023-21C
015-023-25£
015-023-24C
D15-023-23(
$ 234,224.33
208,094.68
263,991.16
250,926.34
269,378.65
1,545,559.35
4,439,088.12
1,649,878.21
845,239.36
407,838.84
68,755.51
197,563.75
1,464,757.68
2,194,895.93
393,157.39
766,650.70
0.00
EXHIBIT A RESOLUTION NO. 81-86
$15,200,000 REFUNDING IMPROVEMENT BONDS
CITY OF SOUTH SAN FRANCISCO
THE GATEWAY ASSESSMENT DISTRICT NO. ST-82-2
REASSESSMENT OF SERIESi86-A BONDS
' Supplemental
Maturity Date Principal Irterest Interest Certificate
(September 2) Amount Rate (%) Rate (%)
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
5,000 !5.75
160,000 16.25
615,000 i6.50
665,000 6.75
715,000 7.00
765,000 i7.20
81o,ooo 7.4o
905,000 !7.60
1,000,000 7.80
1,090,000 8.00
1,175,000 8.00
1,260,000 8.00
1,335,000 8.00
1,455,000 8.00
1,570,000 8.00
1,675,000 O0
3.16
3.16
3.16
3 16
3 16
3 16
3 16
3 16
3 16
3 16
3.16
3.16
3.16
3.16
3.16
3.16
EXHIBIT B RESOLUTION NO. 81-86
SCHEDULE OF PREPAYMENTS REQUIRED FOR SUPPI
CITY OF SOUTH SAN FI
THE GATEWAY ASSESSMENT DISTI
REASSESSMENT OF SERIES
Maturity Date
{September 2}
Redemption
{Prepayment) Date
.EMENTAL INTEREST CERTIFICATES
IANCISCO
IICT NO. ST-82-2
86-A BONDS
Prepayment Amount
(Per $5,000)
1987 March 2, 1987 $ 75.50
1988 March 2, 1987 $216.59
Through September 2, 1987 $147.64
2002 March 2, 1988 $ 75.50
EXHIBIT C RESOLUTION NO. 81-86
UNITED STATES OF AMERICA
STATE OF CALIFORNIA
COUNTY OF SAN MATEO
NUMBER
A-
REFUNDING
IMPROVEMENT BIND
CITY OF SOUTH SAN FI~ANCISCO
THE GATEWAY ASSESSMENT DISTRICT NO. ST-82-2
REASSESSMENT OF SERIES 86-A BONDS
INTEREST RATE
MATURITY DATE
SEPTEMBER 2,
BOND DATE CUSIP
Under and by virtue of the Refunding Act of 1984 for 1915 Improvement
Act Bonds, of Division 11.5 of the Californ'a Streets and Highways Code (the
"Act"), the City of South San Francisco, California (the "City") 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 pursua3t to Resolution of Intention No.
212-85 adopted by the City Council of the 3ity on the 25th day of September,
1985 pay to
or registered assigns
on the maturity date stated above, the principal sum of
Dollars
in lawful money of the United States and in like manner pay interest at the
rate per annum stated above, payable semiannually on March 2 and September 2
in each year commencing March 2, 1987. T~is Bond bears interest from the
interest payment date next preceding its date of authentication and
registration unless it is authenticated and registered (i) prior to an
interest payment date and after the close of business of the fifteenth day
preceding such interest payment date, in w3ich event it shall bear interest
from such interest payment date, or (ii) prior to the close of business on
the fifteenth day of the month preceding March 2, 1987, in which event it
shall bear interest from its date, until payment of such principal sum shall
have been discharged. Both the principal hereof and redemption premium
hereon are payable upon presentation and isurrender hereof at the corporate
agency division of Bank of America National Savings and Trust Association as
EXHIBIT D
-1- RESOLUTION NO. ~1-86
Transfer Agent, Registrar and Paying Agent! (the "Agent") in San Francisco,
California, and the interest hereon is payable by check or draft mailed to
the owner hereof at such owner's address as it appears on the registration
books of the Agent, or at such address as may have been filed with the Agent
for that purpose, as of fifteenth day immediately preceding each interest
payment date.
EXHIBIT D
--2-
REFERENCE IS HEREBY MADE TO THE FURTFER PROVISIONS OF THIS BOND SET
FORTH ON THE REVERSE SIDE HEREOF WNICH SHALL FOR ALL PURPOSES HAVE THE SAME
EFFECT AS THOUGH FULLY SET FORTH HEREIN.
This Bond will continue to bear interest after maturity at the rate
above stated provided that it is presented at maturity and payment hereof is
refused upon the sole ground that there are not sufficient moneys in said
redemption fund with which to pay same. If it is not presented at maturity
interest hereon will run only until maturity.
This Bond shall not be entitled to aqy benefit under the Act or the
Resolution entitled, "A Resolution Determining Unpaid Reassessments and
Providing for the Issuance of Bonds," adopted by the City Council of the
City on April 23, 1986 (the "Resolution olf Issuance"), or become valid or
obligatory for any purpose, until the certificate of authentication and
registration hereon endorsed shall have bee~ dated and signed by the Agent.
IN WITNESS WHEREOF, the City of South San Francisco has caused the Bond
to be signed in facsimile by the Treasurer of said City and by its Clerk and
has caused its corporate seal to be reprodLced in facsimile hereon all as of
April 30, 1986.
City of South San Francisco
[SEAL]
City Clerk of the City of
South San Francisco
of
CERTIFICATE OF AUTHENTICATIOI
This is one of the Bonds described in
Issuance, which has been registered on
City Treasurer of the
City of South San Francisco
AND REGISTRATION
the within mentioned Resolution
Bank of'America National Savings and Trust Association
as Transfer Agent, Registrar and Paying Agent
By
Authorized Officer
EXHIBIT D
-3-
REFUNDING
IMPROVEMENT BO~D
CITY OF SOUTH SAN FRANCISCO
THE GATEWAY ASSESSMENT DISTRICT NO. ST-82-2
REASSESSMENT OF SERIES 86-A BONDS
This Bond is one of several annual series of bonds of like date, tenor
and effect, but differing in amounts, maturities and interest rates, issued
by said City under the Act and the Resolution of Issuance in the aggregate
principal amount of Fifteen Million Two Hundred Thousand Dollars
($15,200,000) for the purpose of provicing means for paying for the
refunding of bonds as more particularly described in said proceedings, and
is secured by the moneys in said redemption fund and by the unpaid portion
of said reassessments made for the payment of said refunding, and including
principal and interest, is payable exclusively out of said fund.
This Bond is transferable by the registered owner hereof, in person or
by the owner's attorney duly authorized in writing, at said office of the
Agent, subject to the terms and conditioFs provided in 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 the same aggregate principal amount, will be issued to the
transferee in exchange herefor.
Bonds shall be registered only ~n the name of an individual
(including 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 Boqds during the fifteen (15) days
immediately preceding any March 2 or September 2.
The City and the Agent may treat ~he 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 thousand
dollars ($5,000) or any integral multiple thereof, may be redeemed and paid
in advance of maturity upon the 2nd day of March or September in any year by
giving at least 60 days' notice by registered mail to the registered owner
hereof at such owner's address as it appears on the registration books of
the Agent and by paying principal and accrued interest together with a
premium equal to 3 percentum of the principal.
LEGAL OPINION
I hereby certify that the following is a correct copy of the signed
legal opinion of Jones Hall Hill & White, A Professional Law Corporation,
San Francisco, California, addressed to the City of South San Francisco and
on file in my office, dated the date of delivery of and payment for the
Bonds therein described.
i CITY CLERK
EXHIBIT D!
--4-
OPINION:
$15,200,000 Refunding Improvement Bonds, City of South San
Francisco, The Gateway Assessment District ST-82-2,
Reassessment of Series 86-A Bonds
Members of the City Council:
We have acted as bond counsel in connection with the issuance by the
City of South San Francisco (the "Isscer") of $15,200,000 Refunding
Improvement Bonds, The Gateway Assessment District No. ST-82-2, Reassessment
of Series 86-A Bonds, dated April 30, Z986 (the "Bonds") pursuant to
Division 11.5 of the California Streets ard Highways Code (the "Act") and
the Resolution entitled "A Resolution Dete-mining Unpaid Reassessments and
Providing for the Issuance of Bonds," (the "Resolution") of the Issuer
adopted April 23, 1986. We have examined the law and such certified
proceedings and other papers as we deem necessary to render this opinion
As to questions of fact material to our opinion, we have relied upon
representations of the Issuer contained in the Resolution and in the
certified proceedings and other certifications of public officials furnished
to us, without undertaking to verify such facts by independent
investigation.
Based upon our examination, we awe of the opinion, as of the
date hereof, that:
1. The Issuer is a municipal corporation, duly organized and validly
existing under the laws of the State of California.
2. The Bonds constitute valid and binding special obligations of the
Issuer enforceable in accordance with their terms.
3. The Bonds are secured by the unpaid portion of special
reassessments levied upon the lands benefited by the improvements acquired
and/or constructed with the proceeds of the bonds being refunded with the
proceeds of the Bonds and by the moneys ir the redemption fund established
pursuant to the Resolution.
4. Under existing laws, regulations, rulings and judicial decisions,
interest on the Bonds is exempt from income taxation by the United States of
America and from personal income taxation by the State of California,
provided, however, no opinion is herein expressed with respect to whether
interest on the Supplemental Interest Certificates is exempt from income
taxation by the United States of America or from personal income taxation by
the State of California. )
The rights of the owners of the Bonds and the enforceability thereof
may be subject to bankruptcy, insolvency, moratorium and other similar laws
affecting creditors' rights heretofore or hereafter enacted and their
enforcement may be subject to the exercise of judicial discretion in
accordance with general principles of equity.
Respectfully submitted,
A Professional Law Corporation
EXHIBIT D
-5-
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face
of this Bond, shall be construed as though they were written out in full
according to applicable laws or regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JF TEN - as joint tenants with right of
survivorship and not as tenants
in common
UNIF GIFT MIN ACT -
(Cust)
Custodian
(Minor)
under Uniform Gifts to Minors
Act
(State)
Additional abbreviations may also be usec though not in the above list.
EXHIBIT
-6-
ASSIGNMENT
For value received the undersigned do(es) hereby sell, assign and transfer
unto
the within-mentioned
appoint(s)
Bond and hereby I irrevocably constitute(s) and
attorney, to transfer the same on the books of the Bank of America National
Savings and Trust Association as Transfer Agent, Registrar and Paying Agent
with full power of substitution the premises.
Dated:
Signature(s) must correspond
exactly to name(s) on face
hereof
Signature Guaranteed
EXHIBIT D
-7--
UNITED STATES OF AMERICA
STATE OF CALIFORNIA
COUNTY OF SAN MATEO
CITY OF SOUTN SAN FRANCISCO
GATEWAY ASSESSMENT DISTRICT NO. ST-82-2
REASSESSMENT OF SERIES 86-A BONDS
REGISTERED
SUPPLEMENTAL INTEREST CERTIFICATE
REGISTERED SUPPLEMENTAL
INTEREST CERTIFICATE
RELATING TO BOND No.
Maturity Dat~
September 2,
Par Value: $
REGISTERED OWNER:
REGISTERED SUPPLEMENTAL INTEREST CERTIFICATE INTEREST RATE:
On the dates listed below, except ~o the extent the related bond
referred to above shall have been duly called for prior redemption and
payment of the redemption price made or duly provided for, the City of South
San Francisco, California, will pay to the registered owner identified
above, or registered assigns, but only out of the sources referred to in
said bond, in lawful money of the United States of America, the amount(s)
shown below, being partial semi-annual inte-est on the related bond referred
to above, at the Registered Supplemental Interest Certificate Interest Rate
per annum identified above, on its Refundiqg Improvement Bonds, The Gateway
Assessment District No. ST-82-2, Reassessment of Series 86-A Bonds (the
"Bonds") numbered as indicated above. Such payments (other than the final
payment hereon) will be made on or before each interest payment date to the
registered owner of this registered Supplemental Interest Certificate by
check or draft mailed to such registered owner at the address appearing on
the registration books kept for that purpose at the office of Bank of
America National Trust and Savings Association, San Francisco, California,
as Agent, at the close of business on ~he fifteenth day preceding the
interest payment date. The related bond referred to above, will continue to
bear interest after maturity at the rate above stated provided that it is
presented at maturity and payment hereof is refused upon the sole ground
that there are not sufficient moneys available to pay same. If this
Supplemental Interest Certificate is not presented at maturity interest
represented hereby will run only until naturity. Final payment on this
Supplemental Interest Certificate shall be made to the registered owner
hereof upon presentation and surrender at the office of the Agent. This
registered Supplemental Interest Certificate may be transferred and
reissued, all in accordance with the Resolution referred to in said bond,
and the provisions of said Resolution a-e hereby incorporated herein by
reference.
Pursuant to the provisions of the ResOlution Providing for the Issuance
of the Bonds, this supplemental Interest Certificate may be redeemed and
paid in advance of the above stated maturity date, in which case the
EXHIBIT E
-1- RESOLUTION NO. 81-86
papplicable portion of the then present value of future interest payments due
to be received hereunder shall be paid to the registered owner hereof, as
such present value is shown in said Resolution, a copy of which is on file
in the office of the Treasurer of the City of South San Francisco.
This Supplemental Interest Certificate shall not be valid or obligatory
for any purpose until the Agent shall have manually signed the certificate
of authentication hereon.
REGISTRATION DATE:
City of South San Francisco
[SEAL]
City Clerk of the Cit~ of
South San Francisco
City Treasurer of the
City of South San Francisco
CERTIFICATE OF AUTHEqTICATION
This is the registered Supplemental Interest Certificate described in
the within-mentioned bond, and this registered Supplemental Interest
Certificate has been duly registered on the registration books kept by the
undersigned as Agent for such bonds.
Bank of America National Savings and Trust Association
as Transfer Agent, Registrar and Paying Agent
By
Authorized Officer
Interest
Payable
Interest
Payment Date(s)
EXHIBIT E
--2-
ASSIGNMENT
For value received the undersigned do(es) hereby sell, assign and transfer
unto ~
the within-mentioned Supplemental Interest
irrevocably constitute(s) and appoint(s)
Certificate and hereby
attorney, to transfer the same on the books of the Bank of AJnerica National
Savings and Trust Association as Transfer Agent, Registrar and Paying Agent
with full power of substitution the premises.
Dated:
Signature(s) must correspond
exactly to name(s) on face
hereof
Signature Guaranteed
EXHIBIT E
-3--
RESOLUTION NO. 81-86
TABLE OF ESCROW FUND INVESTMENTS
UNITED STATES TREASURY NOTE
Maturity Date
June 30, 1986
Principal
$14,985,00[
Coupon
13%
EXHIBIT F
--1-
RESOLUTION NO. 81-86