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Resolution 923 . ~,;Jr\IL~L/~l,]: j'Vl 13c l '" RESOLUTION NO. 923 A RESOLUTION PROVIDING FOR THE ISSUANCE OF BONDS AND DIRECTING LEVY OF AD VALOREM ASSESSMENTS TO PAY THE PRINCIPAL AND INTEREST THEREOF PARKING DISTRICT NO. 1 $110,000 - FIRST DIVISION RESOLVED, by the City Council of the City of Gilroy, Santa Clara County, California, that WHEREAS, the City of Gilroy, in the County of Santa Clara, State of California, herein called "City," is a charter city, duly organized and existing under and pursuant to the provisions of the Constitution of the State of California; WHEREAS, by the terms of said Charter, the City is empower- ed to make and enforce all laws and regulations in respect to munici- pal affairs, subject only to such restrictions and limitations as may be provided in said Charter and said Constitution, and to exercise any and all rights, powers and privileges heretofore or hereafter established, granted and prescribed by any law of the State, said Charter, or by any other lawful authority, of which a municipal corpo- ration might or could exercise under said Constitution, including all powers not in conflict with the provisions of said Charter now or hereafter granted to General Law Cities and wherein it is provided that the enumeration in said Charter of any particular power shall not be held -to be exclusive of or any limitation upon said general grant of powers; WHEREAS, the acquisition, construction, ownership, manage- ment, maintenance, operation, repair, addition, extension and improve- ment of offstreet parking facilities for public and private purposes is a municipal affair; WHEREAS, Ordinance No. 645 entitled "Gilroy Improvement Procedure Code," adopted by this Council on March 6, 1961, as amended, was adopted pursuant to the power and authority vested in said Council by and under the terms and provisions of said Charter, and there are no limitations in regard thereto expressly or otherwise provided in said Charter or in the Constitution of the State of California, other than Section 17 of Article XIII as to which full compliance has been had by the City Council in the proceedings leading up to the adoption of this Resolution; and WHEREAS, all acts, conditions and things required by the Constitution and laws of the State of California and the Charter of said City and of said Gilroy Improvement Procedure Code to be done, to happen and to be performed precedent to and in the issuance of said bonds, have been done, have happened and have been performed in regu- lar and due form, time and manner as required by law, and the City Council is now authorized to issue and sell said bonds and to levy special ad valorem assessments upon the land within the - district determined to be the district benefited thereby, all as more particularly finally provided in Resolution No. 856, A Resolution Determining Convenience and Necessity, Ordering Acquisitions and Improvements and Declaring Formation of Parking District No.1, adopt- ed by this Council on August 31, 1964; 1. 9~3 .' ~, .. ,"".' "'" NOW, THEREFORE, IT IS HEREBY DETERMINED and ORDERED, as follows: 1. Bond Law. Except as herein otherwise provided, the bonds herein provided to be issued shall be issued pursuant to the provisions of Ordinance No. 645 entitled "Gilroy Improvement Proce- dure Code," adopted March 6, 1961, by this Council and particularly Articles 1 and 5 of Chapter 6 thereof, as amended. 2. Definitions. As used herein the following terms have the following meaning: (a) Annual means the fiscal year of the City, which is from July 1 to June 30, both inclusive; (b) Assessment District or District, means the district benefited by the Project, comprising the terri- tory in the City of Gilroy described in the proceedings; (c) Bonds mean the bonds herein authorized to be issued; (d) Bondholder means the holder of a bearer bond, or the registered owner of a registered bond; (e) Clerk or City Clerk means the person elect- ed or appointed as the City Clerk; (f) Council means the legislative body of the City so created and designated in its Charter; (g) (h) performs City means the City of Gilroy; Director of Finance means the person who the duties of Treasurer of the City; (i) Engineer means the City Engineer; (j) Mayor means the Mayor of the City; (k) Project means the acquisition, construc- tion and financing of the offstreet motor vehicle parking places described in the proceedings had pur- suant to Resolution No. 837, A Resolution of Preli- minary Determination and of Intention to Acquire and Improve Offstreet Parking Places and to Form Parking District No.1, adopted by the Council on June 15, 1964, as modified. 3. Project Cost. The total estimated cost of the project, including engineering and other fees, acquisition of property, lands and easements, construction of improvements, and all other expenses incidental thereto, is the sum of $150,000. 4. Public Interest. The public interest, convenience and necessity require and the public economy and general welfare will be served by the acquisition and construction of the Project, all as more particularly described in Resolution No. 837 of Intention, which acquisitions and improvements were ordered by this Council by Resolu- tion No. 856 referred to above. 5. Bond Issue. The total amount of the bonds of this Division shall be One Hundred Ten Thousand Dollars ($110,000.00), 2. fi\ i , "'\ '-'" " .......... the principal and interest of which are to be serviced by special annual ad valorem special assessment levies on the lands within the area described in said Resolution No. 837 of Intention, as modified, excepting therefrom all publicly owned property, which levies are hereby determined and declared to be unlimited either as to rate or amount. Said bonds shall be designated "Parking Bonds of 1965, First Division," and shall be of the denomination of One Thousand Dollars ($1,000) each. They shall be dated July 2, 1965; shall be 110 in number, and numbered 1 to 110, inclusive; and shall mature serially, in the amounts, in the order of serial number, on the 2nd day of July in each of the years, as follows: $1,000 in each of the years 1966 through 1975; 2,000 in each of the years 1976 through 1985; 3,000 in each of the years 1986 through 1992; 4,000 in each of the years 1993 through 2000; 5,000 in each of the years 2001 through 2003; and 6,000 in each of the years 2004 and 2005. 6. Callable. Bonds numbered 1 through 10, inclusive, being all of the bonds maturing on or before July 2, 1975, are not redeem- able prior to their fixed maturity dates. Bonds numbered 11 through 110, inclusive, being all of the bonds maturing after July 2, 1975, are subject to call and redemption at the option of the City, as a whole or in part, in inverse numeri- cal order, on July 2, 1975 (but not prior thereto) or on any interest date prior to their maturity date or dates at the principal amount and accrued interest thereof to the date of redemption, plus a redemption premium equal to one-quarter of one per cent (1/4 of 1%) of such principal amount for each whole twelve (12) months and for any remain- ing fraction of a twelve (12) months' period from the date fixed for redemption to the maturity date or such bonds but not exceeding the interest rate stated in each bond called. 7. Notice of Redemption. The Director of Finance shall cause a notice of redemption to be published once at least thirty (30) days prior to the date of call in a financial paper published in New York or Chicago, or in lieu thereof, may mail such notice by register- ed mail thirty (30) days prior thereto to the last known holder or holders of any bearer bond so called, as shown by the records in his office. Notice of redemption of any registered bond shall be given to the registered owner by registered mail at least thirty (30) days prior to the date of call. 8. Purchase of Bonds. The City may, from time to time purchase any or all of said outstanding bonds at prices offered. All bonds purchased shall be cancelled and shall not again be reissued. 9. Interest Coupons. The bonds shall bear interest at the rate of not to exceed six per cent (6%) per annum from their date until paid. Said interest shall be payable semiannually on January 2 and July 2 in each year. Attached to each bond shall be interest coupons payable at the time the respective payments thereon become due and for the amount thereof, as determined from the accepted bid for the purchase of the bonds. The original purchaser may request a split interest rate represented by two coupons in any year for any bond, in which event he shall specify the period and the interest rates therefor. 10. Interest After Maturity. If, upon presentation at maturity, payment of said bonds or of any interest coupons thereon is not made, said bonds or coupons, or both, shall continue to bear 3. ,.pc " "'./ interest at the same rate until they are respectively paid in fu 11. 11. ~fuere Bonds Payable. Principal and interest are payable at the office of the Director of Finance of said City, City Hall, Gilroy, California, in lawful money of the United States of America. 12. Negotiable Instruments. The bonds of this issue are negotiable instruments and title thereto, unless registered, shall pass by physical delivery thereof. The holders of unregistered bonds shall have all of the rights possessed by holders of negotiable instru- ments payable to bearer. 13. Execution of Bonds. When the bonds of this issue have been prepared in accordance with this Resolution, they shall be executed on behalf of the City by the signature of the Mayor and by the Director of Finance, by their printed, engraved or lithographed signatures, and countersigned by the City Clerk, who shall thereto affix the corporate seal of the City, and the interest coupons shall be executed and authenticated by the printed, engraved or lithographed facsimile signature of the Director of Finance, who by such signatures shall ratify the execution of the same. 14. Purchasers Record. The Director of Finance shall keep a record of the names of the purchasers of the bonds and of all succes- sive holders of bearer bonds issued hereunder so far as such informa- tion is furnished to him for the purpose of giving notice of any call for redemption of said bonds. 15. Registration. Any bond is subject to registration either as to principal and interest or as to principal only upon written request of the bondholder and presentation of the bonds to the Director of Finance for registration. (a) Principal and Interest. Upon presentation and request for registration as to principal and interest, the Director of Finance shall cut off the coupons and destroy them. He shall maintain a book in which he shall enter the numbers of all registered bonds and the names and addresses of the owners of registered bonds. Until such registration is cancelled as herein provided, the interest and principal thereof shall be payable only to the registered owner. There shall be provided on the back of each bond a suitable blank showing the name and address of the registered owner, the date of registration or transfer, the type of registration and the signature of the Director of Finance. (b) Principal Only. Upon such presentation and re- quest for registration as to principal only, a notation shall be made to that effect in the registration book and on the bond. The coupons shall not be detached and the interest on such bonds shall be paid upon presentation of such coupons in the same manner as unregistered bonds. Principal, however, shall be paid only to the registered owner upon presentation of such bond. (c) De-registration. The registration of any unmatured bond may be cancelled upon written request of the registered owner. Upon receipt of such request, the Director of Finance shall cancel the registration in the bond register and on the back of the bond, print and attach all unmatured coupons to the bond, and deliver the bond and attached new coupons to the owner. The cost of reprinting the coupons shall be paid by the person requesting the de-registration. Until such bond is re-registered, the principal thereof shall be payable to bearer and the interest shall again by paid upon surrender of proper coupons. 4. J (d) Re-registration. De-registered bonds are subject to re-registration in the same manner as previously unregistered bonds. 16. Bonds Not a Debt. The bonds and interest thereon shall not be a debt of said City~ nor a charge~ lien or encumbrance~ legal or equitable~ upon any property of the City or upon any income or receipts or revenues of the City other than the levies for the pay- ment thereof as in this resolution provided. 17. City Credit Not Encumbered. No recourse shall be had for the payment of the bonds~ or interest thereon~ or any part thereof~ against the General Fund of the City~ nor shall the credit or taxing power of the City be deemed to be pledged thereto, and the holders of the bonds~ or the coupons thereto appertaining~ shall never have the right to compel the exercise of the taxing power of the City or the forfeiture of any property of the City for the pay- ment of the bonds or the interest thereon, other than as herein provided. 18. Bonds a Special Obligation. The bonds hereby authoriz- ed to be issued and all additional bonds which may be issued in accordance with the terms and conditions hereof shall be special obligations of the City and shall be payable from and secured by ad valorem assessments as herein provided. 19. Parking District. Said contemplated improvements~ in the opinion of the City Council of said City~ are of more than local or ordinary public benefit, and said Council does hereby make the costs and expenses thereof chargeable upon an assessment district~ which district said Council declares to be the district benefited by said improvements and to be assessed to pay the costs and expenses thereof, the exterior boundaries of which are described as follows: Commencing at the point of intersection of the south line of Lewis Street with the west line of the alley along the S. P. Railway right-of-way, thence south along the west line of said alley to its intersection with the north line of Sixth Street; thence westerly along the north line of Sixth Street to the rear lot line of the lots abutting on the west side of Eigleberry Street; thence north along the rear line of said lots on the west line of Eigleberry Street to the south line of Fourth Street; thence north along the south side of Fourth Street to the west side of Monterey Street; thence south along the west line of Monterey Street to the westerly projection of the south line of Lewis Street; thence north along said line of Lewis Street and its said projection to the point of commencement. The properties so benefited and the boundaries thereof are more particularly shown on the map of said assessment district on file in the office of the City Clerk of said City to which reference is hereby made for a more detailed description thereof. 20. Public Property. Said City Council further declares that all public streets, highways and other public property within said assessment district, in use in the performance of a public function as such, shall be omitted from the assessment hereafter to be made to cover the costs and expenses of said improvements. 21. Maintenance District. By said last named resolution a parking improvement and maintenance district was formed for the pur- 5. '" .:", \.- " pose of paying the costs and expenses of acqulrlng~ constructing, reconstructing, installing, extending, enlarging~ repairing, improv- ing, maintaining, and operating public automobile parking places therein by the City, the exterior boundaries of which shall be coterminous with the exterior boundaries of the assessment district above described, to be known as Parking District No. l~ pursuant to Article 5~ Chapter 5~ of the Gilroy Improvement Procedure Code. 22. Rules and Rates. The Council shall operate, manage and control the parking places and make and enforce all necessary rules for their use. 23. Contributions. The City Council may make annual or other periodic contributions~ payments or transfers of funds to the Bond Fund of this issue, from the general fund or any other funds available therefor, or from the proceeds of any general obligation bonds~ special assessments and assessment bonds or other legal charges imposed~ levied or issued therefor. 24. Budgets. Annually, at the time of preparing the City budget, the Director of Finance shall certify to the City Council the total amount required to pay the principal of and interest on said bonds before the proceeds of a tax other than the one for the forth- coming year shall be available therefor, and the amount necessary to be raised by assessment for said forthcoming year after having credited any moneys that shall remain in said Bond Fund and be available therefor, and after having made adequate allowance for estimated delinquencies. 25. Ad Valorem Tax. The City Council of said City shall annually, until all of the bonds and interest thereon have been paid~ levy an ad valorem assessment upon all lands within said dis- trict, except publicly owned property, which levy shall be in an amount clearly sufficient, together with any moneys which are or may be in the bond fund and after making adequate allowance for estimated delinquencies~ to pay all of the principal of and interest on said bonds which shall become payable before the proceeds of another such levy shall be available therefor. 26. Method of Collection. Said special assessment levy shall be levied and collected upon the last equalized secured and utility tax rolls upon which general City taxes are collected. It shall be in addition to all other taxes levied for general City pur- poses~ and shall be levied, computed~ entered~ collected and enforced in the same manner and by the same persons and at the same time, and with the same penalties and interest, as are other taxes for City pur- poses~ and all laws applicable to the levy, collection and enforcement of taxes for City purposes are hereby made applicable to said special assessment levy, and be subject to redemption within one year from the date of sale in the same manner as such real property is redeemed from the sale for general City taxes, and if not redeemed shall in like manner pass to the purchaser. 27. Supplemental Bond Remedy. In the event of a delinquency in the payment of any installment of the assessment levied upon any benefited properties for the payment of the principal and interest of said bonds, there is a mandatory duty on the part of the City to transfer an amount equal to the amount of such delinquency, with penalties and costs, from available funds of the City, to the Bond Fund of said bonds, and in the event such funds are not available, to levy annually a special tax therefor up to Ten Cents (10~) on the One Hundred Dollars ($100) of all taxable property in the City, which duty is a continuing mandatory duty on the part of the City Council during the entire life of the bond issue~ if assessments against the 6. ~,~J J benefited real properties in the assessment district continue to be in default, and cumulative up to said Ten Cents (10~). 28. Equal Parity. All of the bonds of this issue hereby authorized to be issued shall be equally and ratably secured without preference or priority by reason of number, date of bonds, divisions, date of sale, or of execution or delivery, other than as herein pro- vided for default, by such lien upon the revenues herein pledged and on the proceeds of said special assessment levies, in accordance with the provisions of this resolution. 29. Bond Fund. During the period that any of the bonds of this issue, or any interest accrued or to accrue thereon, are out- standing and unpaid, there shall be created and maintained in the books of account of the City a fund to be known as Parking District No. 1 Bond Fund, into which shall be deposited any accrued interest received upon the sale and delivery of any of the bonds of this issue and assessment levy proceeds as herein provided. All sums required for the maturity of principal of or installment of interest on the bonds shall be transferred and deposited in the Bond Fund at least thirty (30) days prior to the date thereof. All moneys in this fund shall be used and withdrawn solely for the purpose of the payment of the principal of and interest on the bonds of this issue as the same shall become due and payable. After the full payment thereof, any balance in the fund shall be used for maintenance of the Project. 30. Sale of Property. In the event that any parcel of property acquired from the proceeds of these bonds, or any improve- ments, extensions or replacements thereof or additions thereto shall hereafter be sold and disposed of, either during or after the term of the bonds, the proceeds of the sale shall be used for the follow- ing purposes and in the following order of priority: (a) For the purchase of other off-street parking facilities for the parking district, or for improvements, additions and extensions to the existing facilities therein. (b) To pay the principal of and interest on the park- ing bonds of this issue or any additional parking bonds of the district then outstanding. (c) To repay to the then owners of the fee title of the then several parcels of real property within the parking district, in the ratio of the assessed value of each parcel of land as to which the last ad valorem levy was made. Values shall be as shown on the last equalized assessment roll, on the roll on which City taxes are then collected. Owners shall be as shown on said roll, or as known to the officer who col- lects taxes for the City. Lands shall be taxable lands. 31. Modifications. All of the provisions of this Indenture shall constitute a contract between the City and the holder or holders of the bonds hereby authorized, and from and after the sale and delivery of any of the bonds, no amendment, alteration or modification of the bonds or of the coupons appertaining thereto or of this Indenture which shall impair, impede or lessen the rights of the holders of the bonds or coupons appertaining thereto then outstanding shall be made without the prior written consent of the holders of at least seventy- five per cent (75%) of the aggregate principal amount of bonds then outstanding. Any such amendment, alteration or modification which 7. i ~ -~ shall have received the written consent of the holders of said per- centage of said outstanding bonds as provided in this Section shall be binding on the holders of all of the bonds and coupons appertaining thereto, either attached to or detached from said bonds. 32. Default, Order of Payment. In the event that the amount in the bond fund shall be insufficient at any time to pay the princi- pal of and interest on all bonds of this issue then due, said bonds and coupons shall be so endorsed and numbered consecutively in the order of presentation and shall thereafter be paid from available funds in the order of said numbers, as provided by law. In the event there shall be insufficient funds to pay the principal of any bond then due, the City may, with the consent of the holder thereof, refund such bond by the issuance of a new bond matur- ing after the maturity to the last bond issued hereunder, but other- wise on a parity as to payment of principal of and interest with the bonds issued hereunder, and exchange such bond for such matured bond and in such event such action shall not be deemed a default hereunder. 33. Bondholder Remedies. Subject to any contractual limita- tions binding upon the holders of any of the bonds (including, but not limited to, any limitations upon the exercise of any remedy to the bondholders holding a specific proportion or percentage of such bonds), any holder of bonds shall have the right, for the equal bene- fit and protection of all holders of bonds of said authorized issue similarly situated: (a) Accounting. By action or suit in equity to require said City and said Council to appoint as if they were the trustees of an express trust; (b) Injunction. By action or suit in equity to enjoin any acts or things which may be unlawful or in viola- tion of the rights of the bondholders; or (c) Mandamus. By mandamus or other suit, action or pro- ceeding at law or in equity to enforce his rights against said City and said City Council and any of its officers, agents or employees, and to require and compel said City or said Councilor any such officers, agents or employees, to perform and carry out its and their duties and obligations under the law and its and their covenants and agreements with bondholders as provided in this resolution. 34. Nature of Remedies. As to remedies of the bondholders: (a) Cumulative. No remedy conferred hereby or by the law upon any holder of bonds is intended to be exclu- sive of any other remedy, but each such remedy is cumulative and in addition to every other remedy and may be exercised without exhausting and without regard to any other remedy conferred hereby or by the law or by any other law. (b) Waiver. No waiver of any default or breach of duty or contract by any bondholder shall extend to or shall affect any subsequent default or breach of duty or contract or shall impair any rights or remedy therein. 8. ;,,; -.J ......... (c) Delays. No delay or omission of any bondholder to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or acquiescence thereof. (d) Enforcement. Every substantive right and every remedy conferred upon the bondholders may be enforced and exercised from time to time and as often as may be deemed expedient. 35. Inspection. The original purchasers and the subsequent holders of any of the bonds of this issue shall have at all times the right to inspect the records, accounts and data of the City, make copies thereof and may inspect their properties at all reasonable times upon request, relating to said facilities. 36. Transcript. The Clerk and Director of Finance are hereby authorized and directed to prepare and furnish to the purchas- ers of the bonds issued hereunder certified copies of all ordinances and resolutions of the Council relating to the Project and to the issuance of bonds and all other proceedings and records of the City showing the right, power and authority to issue said bonds and provide the security therefor and such certified copies and certificates shall be deemed representatives of the City as to all facts stated therein. 37. Sale of Bonds. Said bonds shall be sold in such manner as the Council shall determine. 38. Delivery of Bonds. The Director of Finance shall de- liver the bonds upon receipt of the purchase price and shall credit the proceeds to the special fund and account for payment of the cost of acquisition and construction of the Project, but the purchasers shall not be required to see the proper application thereof. 39. Bond Form. Said bonds shall be substantially in the following form: No. $1,000 STATE OF CALIFORNIA COUNTY OF SANTA CLARA CITY OF GILROY PARKING BOND OF 1965 FIRST DIVISION UNDER AND BY VIRTUE of Bond Plan D, Article 5, Chapter 6 of the Gilroy Improvement Procedure Code, the City of Gilroy (a municipal corporation operating under a Freeholders' Charter and the Constitu- tion of the State of California), for value received, will pay to bearer, at the office of the Director of Finance, City Hall, Gilroy, California, in lawful money of the United States, out of the fund hereinafter designated, on the 2nd day of July, 19 , the sum of ONE THOUSAND DOLLARS ($1,000), together with interest thereon at the rate of per cent (~) per annum as evidenced by coupons attach- ed hereto at the time of issuance (plus additional interest represented by separate detachable coupons at the rate of ~ per annum from , 19__, to and including , 19__),* for semiannual * To be inserted when split interest rates represented by split coupons are bid. In such event, additional coupons designated IIA" shall be attached. 9. ,,.' ,~ .. "~. 1 ....,., interest payable on January 2 and July 2 of each year to the maturity date hereof3 in lawful money of the United States. Unless this bond is registered, such interest3 prior to maturity, shall be payable only on presentation and surrender of the proper interest coupons hereto attached as they respectively become due. Bonds maturing by their terms on or before July 2, 19753 shall not be subject to call prior to their fixed maturity date. Bonds maturing on or after July 23 19763 shall, by their terms be subject to call and redemption" at the option of the CitY3 as a whole or in part3 in inverse numerical order" on July 23 1975 (but not prior thereto) or on any interest date prior to their maturity date or dates at the principal amount thereof and accrued interest thereon to the date of redemption3 plus a redemption premium equal to one quarter of one per cent (1/4 of 1%) of such principal amount for each whole twelve (12) months and for any remaining fraction of a twelve (12) months' period from the date fixed for redemption to the maturity date of such bond3 but not exceeding the interest rate stated in each bond called. The City may als03 from time to time3 purchase any or all of said outstanding bonds at prices offered. All bonds purchased or called shall be cancelled and shall not again be reissued. The Director of Finance shall cause a notice of redemption to be published once at least thirty (30) days prior to the date of call in a financial paper published in New York or Chicag03 or in lieu thereof, may mail such notice by registered mail thirty (30) days prior thereto to the last known holder or holders of any bearer bonds so called, as shown by the records in his office. Notice of redemption of any registered bond shall be given to the registered owner by registered mail at least thirty (30) days prior to the date of call. If, upon presentation at maturity, payment of this bond is not made as herein provided, interest hereon shall continue at the same rate until the principal hereof is paid in full. The holder of this bond has all the rights of a holder of a negotiable instrument payable to bearer. This bond is one of the First Division in the total amount of One Hundred Ten Thousand Dollars ($110,000), of an issue of bonds in the total estimated amount of One Hundred Fifty Thousand Dollars ($150,000). All of the bonds of said issue are of like tenor (except for such variations as may be required to designate varying dates, divisions, numbers, maturities, call provisions and interest rates" if any). Said bonds are issued for the purpose of providing moneys to finance the costs of acquiring" constructing, improving and extend- ing automobile parking places and structures in or for Parking District No.1, all as set forth and described in the resolution entitled IIA Resolution of Preliminary Determination and of Intention to Acquire and Improve Off-Street Parking Places and to Form Parking District No. 1,11 adopted on June 15, 1964, and proceedings had pursuant thereto, and in accordance with a resolution entitled IIA Resolution Determining Convenience and Necessity, Ordering Acquisitions and Improvements and DeclG.ring Formation of Parking District No.1," adopted on August 31, 1964, and a resolution entitled IIA Resolution Providing for the Issu- ance of Bonds and Directing Levy of Ad Valorem Assessments to Pay the Principal and Interest Thereof, Parking District No. 1,11 adopted on May 17, 1965, by the Council of the City of Gilroy, California, after due notices and public hearings having been held therein, as authoriz- ed by the Constitution of the State of California, the Freeholders' Charter of said CitY3 and Articles 4 and 5 of Chapter 5, and Articles 1 and 5 of Chapter 6 of the Gilroy Improvement Procedure Code, to all of which reference is, hereby made for the obligations, duties, rights, and privileges hereby created. 10. . ' '-/ I "..... This bond is payable exclusively out of Parking District No. 1 Bond Fund~ as said fund appears upon the books of the Director of Finance of said City, but, in accordance with the provisions of said Code~ a special annual ad valorem assessment will be levied and collected upon all the lands, excepting public property, within the assessment district created in said proceedings therefor, in accord- ance with the assessed valuations of said lands, in an amount clearly sufficient to pay the principal of and interest on said bonds as the same shall become payable, until all of said bonds and the interest thereon are paid in full. In the event of a delinquency in the payment of any install- ment of the assessment levied upon any benefited properties for the payment of the principal and interest of said bonds, there is a manda- tory duty on the part of the City to transfer an amount equal to the amount of such delinquency, with penalties and costs, from available funds of the City, to the Bond Fund of said bonds~ and in the event such funds are not available, to levy annually a special tax therefor up to Ten Cents (10~) on the One Hundred Dollars ($100) of all taxable property in the City, which duty is a continuing mandatory duty on the part of the City Council during the entire life of the bond issue, if assessments against the benefited real properties in the assessment district continue to be in default~ and cumulative up to said Ten Cents (10~). Annually, at any time prior to the time the levy is made, or at such other time as it shall determine, the City Council is authorized to transfer to the bond fund of said bonds, from available funds, such amount or amounts as it shall determine. Each of the bonds of this issue is equally and ratably secured without preference or priority by reason of number, division, date, date of sale or of execution and delivery of the bonds, other than as provided for default in the bond resolution. This bond shall be subject to registration as to principal and interest upon written request of the o\vner and presentation of the bond to the Director of Finance for registration. Thereafter, the principal hereof and interest hereon shall be payable only to such registered owner. Bonds may also be registered as to principal only, in which event the coupons shall not be removed. Registered bonds may be de-registered and again become payable to bearer. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and the laws of the State of California and the Charter and ordinances of said City, to happen and to be performed, precedent to and in the issuance of this bond~ have been done, have happened and have been performed in regular and due form time and manner as required by law, and this bond is made conclu- sive evidence thereof. IN WITNESS WHEREOF, the City Council of the City of Gilroy has caused this bond to be signed by the Mayor and Director of Finance of said City~ and countersigned by its City Clerk and has caused its Clerk to affix thereto its corporate seal~ all on the 2nd day of July~ 1965. Countersigned: Mayor Director of Finance City Clerk ( SEA L) 11. ........., \ l .. 40. Interest Coupons. The interest coupons attached to each of said bonds and evidencing the interest to accrue thereon, shall be numbered consecutively and be substantially in the following form, to wi t: CITY OF GILROY, CALIFORNIA PARKING BOND OF 1965, FIRST DIVISION Dated: July 2, 1965 The sum shown hereon is payable to bearer (unless $ the bond is registered as to principal and interest) in lawful money as interest at the office of the Director of Finance, City Hall, Gilroy, California Coupon No. (subject to any right of prior redemption reserved in the bond herein designated).* On 2, 19_ BOND NO. Director of Finance * To be inserted in all coupons on bonds maturing on or after July 2, 1976. 41. Registration Form. The form of the endorsement on said bonds for registration shall be as follows: This bond is registered in the name of the registered owner whose name and address appear last in the space below and both the principal of and interest on this bond are payable to such registered owner, unless it is registered as to principal only, in which case only the principal is so payable. Note: There must be no writing in the space below except by the Director of Finance. Date of Type of Name of Address of Signature of Registry Registration* Registered Owner Registered Owner Dir.of Finance Principal Only and Interest Principal Only and Interest Principal Only and Interest * In the event registration is as to principal only, strike the words "and interest;lI if as to principal and interest strike the word lIOnly." 42. Bonds Incontestable. After the sale and delivery of the bonds by the City, the bonds and coupons appertaining thereto shall be incontestable by the City. 43. Unconditional Obligation. Except only as provided herein for alteration of the bonds or this Indenture, nothing in this Indenture or in the bonds or in the coupons contained shall affect or impair the obligation of the City, which is absolute and uncondi- tional, to pay the principal of and interest on the bonds to the respective holders of the bonds and coupons at the respective dates of maturity, or upon prior redemption, as herein provided, and out of the assessments herein pledged for such payment, or affect or impair the right of action, which is also absolute and unconditional, of such holders to institute suit to enforce such payment by virtue of the contract embodied in the bonds and coupons. 44. Performance of Essence. The performance of the duties prescribed in this Indenture and in the law pursuant to which it was adopted, by the City or its proper officers, agents or employees, is of the essence of City's contract with the bondholders. 12. -- ,... 45. Recourse to Bond Law. Each taker and subsequent holder of the bonds and attached or detached coupons has recourse to all of the provisions of this Indenture and of Bond Plan D in the Gilroy Improvement Procedure Code, and is bound by their terms. 46. Indenture is Covenant. Each and all of the terms of this Indenture shall be and constitute a covenant on the part of the City to and with each and every bondholder from the time the bonds are issued hereunder. 47. Period of Agreement. Whenever all of the bonds and all interest then accrued thereon shall have been fully paid and discharg- ed, the agreements of this Indenture contained shall cease and termi- nate, and the City shall be under no further obligation as herein required, or otherwise to do or perform any of the covenants, condi- tions or agreements in this Indenture contained. 48. Construction. This Resolution shall be liberally con- strued to the end that its purpose may be effected. No error, irregu- larity, informality, and no neglect or omission herein or in any pro- ceeding had pursuant hereto which does not directly affect the juris- diction of the City Council shall void or invalidate this Resolution or such proceeding or any part thereof, or any act or determination made pursuant thereto. 49. Legality. If any section, subsection, sentence, clause or phrase of this Resolution be for any reason held to be unconstitu- tional such decision shall not affect the validity of the remaining portions of this Resolution. The City Council hereby declares that it would have passed this Resolution and each section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared to be unconstitutional. /s/ Kenneth L. Peterson Mayor ATTEST: /s/ Susanne E. Payne City Clerk * * * * * * * * 13. -. ... i ;..., '., '4f.............~~......',I'.M '" t...'. '. .~........',.~.. . '~.r~'.' '; I hereby certify that the foregoing resolution was duly and regularly ad~pted and passed by the City Council of the City of Gilroy, Californi2, at a regular meeting thereof held on the 17th day of May, 1965J by the following vote of the members thereof: AYES, and in fav'Jr thereof, Council Members: Allemand,Duffin, Goodrich,Quartiroli, and Petersen. NOES, Council Members: ABSENT, Council Members: None Eckard and Wentworth City Clerk of the City of i ray / APPROVED: ~ __",.c~ ,.~~~~-~ Mayor