Resolution 1999-05
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RESOLUTION NO, 99-5
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GILROY DECLARING INTENTION TO UNDERTAKE
REASSESSMENT PROCEEDINGS AND TO ISSUE LIMITED
OBLIGATION REFUNDING BONDS BY SUMMARY
PROCEEDINGS WITHOUT NOTICE AND HEARING
(North Forest Street Reassessment District)
WHEREAS, progress of development of the land within the City of Gilroy North
Forest Street Assessment District (the "Prior Assessment District") and a reduction in the interest
rates in the tax-exempt municipal bond market makes advantageous the refunding of the
remaining outstanding limited obligation improvement bonds of said Prior Assessment District
(the "Original Bonds"), issued by the City of Gilroy (the "City"), said refunding to be based
upon reassessment proceedings taken pursuant to the Refunding Bond Act of 1984 for 1915
Improvement Act Bonds (Sections 9500 and following, California Streets and Highways Code)
(the "1984 Act"); and
WHEREAS, Section 9525 of the 1984 Act authorizes this City Council, as the
legislative body of the City of Gilroy, to undertake proceedings for the levy of reassessments and
for the issuance, sale and delivery of limited obligation refunding bonds (the "Local
Obligations") upon the security of the unpaid reassessments, without notice to or public hearing
for the affected property owners of the property encumbered by the reassessments, upon
satisfaction of three conditions specified by said Section 9525; and
WHEREAS, this City Council is advised by Orrick, Herrington & Sutcliffe LLP,
its bond counsel for this proposed refunding, and by Fieldman, Rolapp & Associates, its
financial advisor, that the conditions prescribed by Section 9525 can be satisfied and that the
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proposed Local Obligations can be issued and sold, based upon the present bond market
conditions, on terms and conditions which assure compliance with said Section 9525; and
WHEREAS, in order to provide the benefits of such refunding to the affected
property owners in the Prior Assessment District, this City Council has determined that it is in
the public interest generally and in the economic interest of the Prior Assessment District
property owners specifically to provide for the refunding at reduced interest rates of the
remaining outstanding Original Bonds under and pursuant to and subject to satisfaction of the
conditions prescribed by the 1984 Act in general and Section 9525 in particular;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Gilroy, as follows:
Section 1.
The foregoing recitals are true and correct, and this City Council so
finds and determines.
Section 2.
This City Council hereby preliminarily determines that the public
interest and necessity justify the refunding of the Original Bonds under and pursuant to the 1984
Act, subject to further proceedings under the 1984 Act for the establishment of a reassessment
district to be known as the "North Forest Street Reassessment District."
Section 3.
This City Council hereby preliminarily declares that it intends to
issue the Local Obligations to refund the Original Bonds and to levy and collect reassessments as
security for the Local Obligations under and pursuant to the 1984 Act.
Section 4.
This City Council hereby refers the matter of the proposed
refunding of the Original Bonds and the levy and collection of reassessments as security for the
Local Obligations to NBS Government Finance Group, as the person qualified to prepare and file
with the City Clerk a report in writing containing the matters specified in Section 9523 of the
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California Streets and Highways Code, and directs NBS Government Finance Group to prepare
such report, and upon completion, to file it with the City Clerk.
Section 5.
When the report provided for in Section 4 hereof is filed with the City
Clerk, the City Clerk is directed to present said report to this City Council for consideration pursuant
to Sections 9524 and 9525 of the 1984 Act.
Section 6
This resolution shall take effect immediately.
PASSED AND ADOPTED this 4th day of January, 1999 by the following vote:
AYES:
COUNCILMEMBERS: ARELLANO, GIFFORD, MORALES,
ROWLISON, SPRINGER, and GILROY
NOES:
COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: SUDOL
APPROVED:
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K. A Mike Gilroy, Mayor \
ATTEST:
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Rhonda Pellin, City Clerk
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RESOLUTION NO. 99-5
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I, RHONDA PELLIN, City Clerk ofthe City of Gilroy, do hereby certifY that the attached
Resolution No. 99-5 is an original resolution, duly adopted by the Council of the City of Gilroy at
a regular meeting of said Council held on the 4th day of January, 1999, at which meeting a
quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City of Gilroy this 5th day ofJanuary, 1999.
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City Clerk of the City of Gilroy
(Seal)