Resolution 1988-33
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RESOLUTION NO.
88 - 33
RESOLUTION ORDERING SALE OF REFUNDING BONDS
Las Animas Technology Park Refunding District No. 2
The City Council of the City nf Gilroy resolves:
The City Council accepts the offer of Wulff, Hansen & Co.,
Inc. (attached to this resolution and by reference incorporated in
it) to purchase all of the refunding bonds to be issued in Las
Animas Technology Park Refunding District No.2.
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 2nd day
of May, 1988, by the following vote of the members thereof:
AYES, and in favor, thereof, Councilmembers: GAGE, HALE,
KLOECKER, MUSSALLEH, PALMERLEE, VALDEZ and HUGHAN.
NOES, Councilmembers: None
ABSENT Councilmembers:
None
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WULFF, HANSEN & CO.
ESTABLISHED 1931
INVESTMENT BANKERS
201 SANSOME STREET, 7TH FLOOR
SAN FRANCISCO 94104
[415] 421-8900
CITY OF GILROY
LAS ANIMAS TECHNOLOGY PARK REFUNDING DISTRICT NO. 2
SERIES 88-1
(Santa Clara, County, California)
Remaining Balance
Bonds Maturing 9/2/88
Balance of Bonds to be Called
$4,675,000.00
60,000.00
$4,615,000.00
Cost of Calling Existing Bonds:
Cost of Redeeming Old Bonds @ 5%
Bank Cost For Redemption
Subtotal
Adjusted Balance For Refunding
$ 230,750.00
3,500.00
$ 234,250.00
$4,849,250.00
Available Funds:
Current Reserve Fund Balance
Redemption Fund Balance
Improvement Fund
Interest Earned on New Bonds
(5/16/88 - 9/1/88 @ 5.5%)
Subtotal
Adjusted Balance For Refunding
$ 454,482.71
143,565.31
57,396.23
83,842.77
$ 739,287.02
$4,109,962.98
Reserve Fund @ 7%
$ 287,697.41
Cost of Issuance:
Bank Management Fee
Engineering Fees
City Administration Fee
Bond Printing
Miscellaneous
Legal Fee @ 1%
Bond Discount @ 3%
Subtotal
$ 5,000.00
1,200. 00
5,000.00
4,000.00
6,300.00
46,032.91
138,098.70
$ 205,631.61
Total Amount of Refunding Bond Issue
$4,603,292.00
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Total Interest Savings Over Life of Bonds
(31.71%)
$1,463,789.80
Average Annual Debt Service Savings
$
63,643.03
4/26/88
EXHIBIT C
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WULFF, HANSEN & CO.
ESTABLISHED 1931
INVESTMENT BANKERS
201 SANSOME STREET, 7TH FLOOR
SAN FRANCISCO 94104
[415] 421-8900
May 2, 1988
The Honorable City Council
City of Gilroy
7351 Rosanna Street
Gilroy, California 95020
Re: City of Gilroy
Las Animas Technology Park Refunding District No. 2
Series 88-1
Dear Council Members:
Wulff, Hansen & Co., as managing underwriter (the
"Underwr iter"), hereby offers to purchase all, but not less
than all, Refunding Bonds to be of fered by the Ci ty of
Gilroy (the "City") pursuant to the provisions of the
Refunding Act of 1984 for Improvement Act Bonds, Division
11.5 of the California Streets and Highways Code to represent
the cost of Refunding Bonds in the Las Animas Technology Park
Assessment District Reassessment and Refunding.
We make this offer under the following terms and conditions:
Amount of Bonds:
Approximately $4,603,292.00.
Form of Bonds:
Registered bonds to be issued
serially. Bond denominations of
$5,000 to $100,000, with the odd lot
bond in the first maturity.
Interest Rates: 1989 5.75 2001 8.15
1990 6.25 2002 8.20
1991 6.50 2003 8.25
1992 6.75 2004 8.30
1993 7.00 2005 8.35
1994 7.20 2006 8.40
1995 7.40 2007 8.40
1996 7.60 2008 8.45
1997 7.80 2009 8.45
1998 7.90 2010 8.50
1999 8.00 2011 8.50
2000 8.10
Price: 97.000% of par value plus accrued
interest.
Term: 23 years.
Average Interest Cost: 8.283%
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The Honorable City Council
City of Gilroy
May 2, 1988
Page Two
Net Interest Cost: 8.4757402%
First Interest Payment
and Approximate
Maturity Schedule:
The first interes~ payment on the Bonds
shall be March 2, 1989, with principal
payments commencing September 2, 1989,
and annually thereafter as specified
below:
Date of Bonds and
Delivery Date:
1989 $ 13,292.00 2001 195,000.00
1990 95,000.00 2002 205,000.00
1991 100,000,00 2003 220,000.00
1992 105,000,00 2004 240,000.00
1993 110,000.00 2005 260,000.00
1994 120,000.00 2006 275,000.00
1995 125,000.00 2007 300,000.00
1996 135,000.00 2008 325,000.00
1997 145,000.00 2009 350,000.00
1998 155,000.00 2010 380,000.00
1999 170,000.00 2011 400,000.00
2000 180,000.00
Approximately May 16, 1988.
Foreclosure Clause:
The City shall covenant to commence
judicial foreclosure of delinquent
assessments within 150 days of any
delinquency.
Reserve Fund:
The Ci ty shall establ ish a reserve fund
in the amount of seven percent (7%) less
costs of issuance, of the bond par value.
In our view, it is reasonably requi red
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 insofar as may be necessary to
maintain the reserve fund at said amount.
Redemption Premium:
3% of unmatured principal.
Paying Agent/Registrar: Bank of America National
Savings Association, San
California.
Trust and
Francisco,
The Honorable City
City of Gilroy
May 2, 1988
Page Three
No Litigation:
Legal Opinion:
Conditions Precedent:
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Council
A no litigation certificate of the City
shall accompany the Bonds at delivery.
The opinion of Sturgis, Ness, Brunsell &
Sperry, Emeryville, California, without
qualification and without expense to us
to be printed on the Bonds.
The obligations of the Underwriter to
accept delivery of and pay for the Bonds
on the Closing Date shall be subject, at
the opt ion of the Un de rwr i te r , to the
following additional conditions:
(a) The Resolution providing for the
issuance of the Bonds and all other
resolutions and applicable
agreements shall be in full force
and effect, and shall not have been
amended, mod i f ied or s uppl emen ted
except as may have been agreed in
writing by the Underwriter, and
there shall have been taken in
connection therewith, with the
issuance of the Bonds and wi th 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
clos ing date, the market pr ice or
marketability of the Bonds at the
initial offering prices set forth in
the Offering Statement shall not
have been materially adversely
affected, in the judgment of the
Underwriter (evidenced by a written
not ice to the Ci ty terminating the
obligation of the Underwriter to
accept delivery of and pay for the
Bonds) by reason of any of the
following:
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The Honorable City Council
City of Gilroy
May 2, 1988
Page Four
(1) Legislation enacted (or
resolution passed) by the
Congress of the Uni ted 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 Uni ted States of
Amer ica, or an order, rul i ng,
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 Uni ted States of AIDer ica,
wi th 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 Uni ted 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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The Honorable City Council
City of Gilroy
May 2, 1988
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
Offering 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, regula tory body or other
author i ty mater ially 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 Offering Statement; or
(4) Any event occurring, or
information becoming known
which, in the judgment of the
Underwriter makes untrue or
misleading in any material
respect any statement or
information contained in the
Offering Statement concerning
the City, the improvement
project, the landowners, or the
property assessed.
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The Honorable City
City of Gilroy
Ma y 2, 1 9 8 8
Page Six
Council
City Covenant:
The City shall covenant to take any
action within its powers to maintain the
tax-exempt status of the Bonds.
Place of Delivery:
To be mutually determined.
Time of Delivery:
Not later than 48 hours after the City
notifies the undersigned that the Bonds
are ready for del i very. I f the subject
Bonds are not delivered by 5:00 p.m. on
the thi rd day after the aforementioned
delivery date, Wulff, Hansen & Co.
reserves the right to renegotiate the
price and/or the rate of interest.
Expiration:
This offer expires midnight, May 2,
1988.
Very truly yours,
WULFF, HANSEN & CO.
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,/'~l~'0:' /1 :/' :2_i' . .c'
J-Paul Dumont
Senior Vice President
JPD/bjg
Enclosure: Debt Service Schedule
cc: Philip D. Assaf~-
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LAS ANIMAS TECHNOLOGY PARK ~.D.85-1
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8 . ~~Ionono
ACCRUED
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5~915~498.44 10~518~790.44
4 ~ 6():~ ,. ~~:~(;':.~ II ()()
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DATED ~/ 1 c1/8f.:l
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