Resolution 1987-29
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RESOLUTION NO.
87 - 29
RESOLUTION ORDERING SALE OF BONDS
EAST NINTH ST. ET AL REFUNDING ASSESSMENT DISTRICT, SERIES 87-1
The City Council of the City of Gilroy resolves:
The City Council accepts the offer of Wulff, Hansen & Co.
(attached to this resolution and by reference incorporated in it),
to purchase all of the refunding bonds to be issued in East Ninth
St. Et Al Refunding Assessment District, Series 87-1.
The City Council directs the sale and delivery of the
bonds to the offeror in accordance with the terms and conditions
stated in the offer.
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I HEREBY CERTIFY that the foregoing resolution was duly
and regularly adopted and passed by the City Council of the City of
Gilroy, California, at a regular meeting thereof, held on the 20th
day of April, 1987.
AYES: Councilmembers ALBERT, GAGE, KLOECKER, MUSSALLEM, PALMERLEE,
VALDEZ and HUGHAN.
NOES: Councilmembers None
ABSENT: Counc i lmembe r s None
If~
ORIGINAL
RESOLUTION NO. 87 - 29
Municipal Financing
Special Assessment,
Mello. Roos,
and Revenue Bonds
County
City
Special district
Commercial
Industrial
Residential
Hospital
Public
Schools
Street opening
Sewer
Water
landscaping
Sidewalks
Curbs
Gutters
Ughting
Drainage
Traffic control
Parking
Meters
Pedestrian malls
Parks
Public Safety
Playground
Recreation
Refinancing
Renovation
Dredging
Reclamation
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WULFF. HANSEN & ~.
ESTABLISHED 1931
INVESTMENT BANKERS
201 SANSOME STREET. 7TH FLOOR
SAN FRANCISCO 94104
[415J 421-8900
April 14, 1987
City Council
City of Gilroy
City Hall
7351 Rosanna Street
Gilroy, California 95020
City of Gilroy
Santa Clara County, California
East Ninth Street Et Al
Assessment District 83-1
Reassessment and Refunding
Dear Council Members:
Wulff, Hansen & Co. (the "UnderwriterW) hereby offers
to purchase all, but not less than all, Refunding
Bonds to be offered by the City of Gilroy (the "City")
according to the Refunding Act of 1984 for 1915
Improvement Act Bonds, Division 11.5 of the Streets
and Highways Code, (the "Act"), to represent the cost
of refunding the East Ninth Street Et Al Assessment
District 83-1 (the "Bonds").
We make this offer under the following terms and
conditions:
Amount of Bonds:
Not to Exceed $757,648.00.
Form of Bonds:
Registered bonds to be issued
serially. Bond denominations of
$1,000 to $95,000, any odd lot
bond to be in the first maturity.
Interest Rates: 1988 5.25 1994 7.20
1989 5.75 1995 7.40
1990 6.25 1996 7.50
1991 6.50 1997 7.60
1992 6.75 1998 7.75
1993 7.00
Price:
97.00% of par value plus accrued
interest.
Term:
12 years.
ORIGINAL
OVER HALF A CENTURY HELPING CALIFORNIANS
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City Council
City of Gilroy
April 14, 1987
Page Two
Average Interest
Cost:
Net Interest Cost:
First Interest Payment
and Approximate
Maturity Schedule:
Date of Bonds and
Delivery Date:
Foreclosure Clause:
Reserve Fund:
Redemption Premium:
Paying Agent and
Registrar:
No Litigation:
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7.286%.
7.707905%.
The first interest payment on the Bonds
shall be March 2, 1988, with principal
payments commencing September 2, 1988,
and annually thereafter as specified
below:
1988
1989
1990
1991
1992
1993
32,648.00
55,000.00
55,000.00
60,000.00
65,000.00
70,000.00
1994
1995
1996
1997
1998
70,000.00
80,000.00
85,000.00
90,000.00
95,000.00
Approximately May 1, 1987.
City to covenant to commence judicial
foreclosure of delinquent assessments
within 150 days of any delinquency.
The City shall establish from the
proceeds of the bonds a reserve fund
equal to 7% of the principal amount of
the bonds. In our view, it is
reasonably required for this issue, and
vital to the marketing of the bonds,
that proceeds from the investment of
monies in said reserve fund should be
retained in said fund until the amount
in said fund equals the maximum annual
amount allowed by law.
3% of unmatured principal.
Bank of America National Trust &
Savings Association, Corporate Agency
Service Center, San Francisco,
California.
A no litigation certificate of the City
shall accompany the bonds at delivery.
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City Council
City of Gilroy
April 14, 1987
Page Three
Legal Opinion: The opinion of Sturgis, Ness, Brunsell
& Sperry, Emeryville, California,
without qualification and without
expense to us to be printed on the
bonds.
Conditions Precedent: The obligations of the Underwriters to
accept delivery of and pay for the
Bonds on the Closing Date shall be
subject, at the option of the
Underwriters, to the following
additional conditions:
(a) The Resolution and any other
applicable agreements shall be in
full force and effect, and shall
not have been amended, modified or
supplemented except as may have
been agreed in writing by the
Underwriters, and there shall have
been taken in connection therewith,
with the issuance of the Bonds and
with the transactions contemplated
thereby and by this Purchase
Contract, all such actions as, in
the opinion of Sturgis, Ness,
Brunsell & Sperry, Emeryville,
California, Bond Counsel for the
City, shall be necessary and
appropriate;
(b) Between the date hereof and the
closing date, the market price or
marketability of the Bonds at the
initial offering prices set forth
in the Final Statement shall not
have been materially adversely
affected, in the judgment of the
Underwriters (evidenced by a
written notice to the City
terminating the obligation of the
Underwriters to accept delivery of
and pay for the Bonds) by reason of
any of the following:
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City Council
City of Gilroy
April 14, 1987
Page Four
(1) Legislation enacted (or
resolution passed) by the
Congress of the United States
of America or a decision
rendered by a court established
under Article III of the
Constitution of the United
States of America or by the Tax
Court of the United States of
America, or an order, ruling,
regulation (final, temporary or
proposed), press release or
other form of notice issued or
made by or on behalf of the
Treasury Department or the
Internal Revenue Service of the
United States of America, with
the purpose or effect, directly
or indirectly, of imposing
federal income taxation upon
the interest as would be
received by the owners of the
Bonds;
(2) Legislation enacted (or
resolution passed) by the
Congress of the United States
of America, or an order, decree
or injunction issued by any
court of competent jurisdiction
or an order, ruling, regulation
(final, temporary or proposed),
press release or other form of
notice issued or made by or on
behalf of the Securities and
Exchange Commission, or any
other governmental agency
having jurisdiction of the
subject matter, to the effect
that obligations of the general
character of the Bonds, or the
Bonds, including any or all
underlying arrangements, are
not exempt from registration
under or other requirements of
the Securities Act of 1933, as
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City Council
City of Gilroy
April 14, 1987
Page Five
amended, or that the Resolution
is not exempt from
qualification under or other
requirements of the Trust
Indenture Act of 1939, as
amended, or that the issuance,
offering or sale of obligations
of the general character of the
Bonds, or of the Bonds,
including any or all
underwriting arrangements, as
contemplated hereby or by the
Final Statement or otherwise is
or would be in violation of the
federal securities laws as
amended and then in effect;
(3) Any amendment to the Federal or
California Constitution or
action by any Federal or
California court, legislative
body, regulatory body or other
authority materially adversely
affecting the tax status of the
City, its property, income,
securities (or interest
thereon), validity or
enforceability of the
assessments or the ability of
the City to construct or
acquire the improvements as
contemplated by the Resolution
and the Final Statement; or
(4) Any event occurring, or
information becoming known
which, in the judgment of the
Underwriters makes untrue or
misleading in any material
respect any statement or
information contained in the
Final Statement concerning the
City, the Improvement Project,
the landowner, or the property
assessed.
City Council .
City of Gilroy
April 14, 1987
Page Six
Place of Delivery:
Time of Delivery:
Expiration:
JPD/bjg
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Bank of America National Trust &
Savings Association, Corporate Agency
Service Center, San Francisco,
California.
Not later than 48 hours after the City
notifies the undersigned that the bonds
are ready for delivery. If the subject
bonds are not delivered by 5:00 p.m. on
the third day after the aforementioned
delivery date, Wulff, Hansen & Co.
reserves the right to renegotiate the
price and/or the rate of interest.
This offer expires Midnight on April
20, 1987.
Very truly yours,
WULFF, HANSEN & CO.
I~umont
Senior Vice President
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Enclosure: Debt Service Schedule
cc: Cecil A. Reinsch
Philip W. Assaf
Fred O. Wood
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YEAR RATE
1'388 t::" '-It="
..J.e..J
1'38'3 5.75
1'3'30 6.25
1'3'31 6.50
1'3'32 5.75
1'393 7.012.
:'3'34 7.20
19'35 7.40
1'3'35 7.50
19'37 7.50
1'3'38 7.75
TOTALS
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WULFF, HANSEN & CO.
ESTABLISHED IQ31
INVESTMENT BANKERS
201 SAN SOME STREET. 7TH FLOOR
SAN FRANCISCO 94104
[415J 421-8900
:;:L..R~I",,,,,
~ -, ,-. - -" : - "' 1-' .
=.~~~. i'.:.... "...J. 1-;
s: =:-:
~:-
D=2~ S~~V:CE SC~~DU~=
~'::;;C: OF BC:\iDS: >':a\1 i ~ 1. '387
:;\;~~RES7 PA:D: ~a~~cn 2 a~lc Se~tembEr c
BCI)'",Q Year's:
Averaoe CouDon:
Average Debt Service:
P;:;:INCIPAL
INTEREST
$32. fA8. 00
55.000.00
55 ~ 00iZl. 00
50.000.00
65. 000. 0el
70. 000. 0QI
70.000.0121
80. 001i). 0121
85, 000.lZ10
90~000.00
'35~000.00
$70,855.02*
51. 325. 00
48,162.50
44,725.00
40,825.00
36,437.50
3L 537. 5121
26~497.50
20,577.50
14,21212.50
7,362.50
$757.548.00
$392,518.52
5.387.302
7.28b
$i04.5S0.5S
* IY"lter'est cOrliouted fr'om May 1, 1'387 to Seotember''::'~ 1'388.
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TOTAL
$103.514.02
106,325.0121
103,152.50
104,725.121121
i iZ:5~ 825. 00
105,437.50
101. 537. 5 ill
106,497.5121
105~577.50
104,202.5121
102~362.50
$1. 150. i 65. 52