Resolution 1999-06
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RESOLUTION NO. 99-6
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GILROY APPROVING AND CONFIRMING THE REPORT ON
THE LEVY OF REASSESSMENTS AND THE REFUNDING
OF ITS 1915 ACT IMPROVEMENT BONDS
(North Forest Street Reassessment District)
WHEREAS, the City Council of the City of Gilroy (the "City"), by proceedings
duly had and taken, duly provided for the issuance of Limited Obligation Improvement Bonds
(the "Original Bonds") of its North Forest Street Assessment District (the "Prior Assessment
District"), under and pursuant to the conditions and terms of the Improvement Bond Act of 1915,
being Division 10 of the California Streets and Highways Code (the "1915 Act"), the unmatured
portion of which is now outstanding; and
WHEREAS, this City Council has determined to establish a reassessment district
to be known as the "North Forest Street Reassessment District" and to issue refunding bonds (the
"Local Obligations") upon the security of the unpaid reassessments for the purpose of refunding
the remaining outstanding Original Bonds, all as provided by and pursuant to the conditions and
terms of the Refunding Act of 1984 for 1915 Improvement Act Bonds, being Division 11.5 of
the California Streets and Highways Code (the "1984 Act"), and to provide for the levy and
collection of reassessments in said reassessment district as security for the Local Obligations;
and
WHEREAS, the City Council referred the matter of the refunding of the Original
Bonds, the establishment of the proposed reassessment district, and the levy and collection of
reassessments as security for the Local Obligations to NBS Government Finance Group as the
qualified firm to prepare and file with the City Clerk a report in writing containing the matters
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specified in Section 9523 of the 1984 Act, and directed NBS Government Finance Group to
prepare and file said report; and
WHEREAS, NBS Government Finance Group has prepared and filed with the
City Clerk a report in writing, entitled "Reassessment Report, North Forest Street Reassessment
District" (the "Reassessment Report"), containing the matters required by Section 9523 of the
1984 Act, which said Reassessment Report has been presented by the City Clerk to this City
Council for consideration; and
WHEREAS, the Reassessment Report is accompanied by a certificate of Orrick,
Herrington & Sutcliffe LLP, the City's bond counsel for the proposed refunding, and Fieldman,
Rolapp & Associates, the City's financial advisor for the proposed refunding, certifying to this
City Council that the Reassessment Report demonstrates satisfaction of the conditions prescribed
by Section 9525 of the 1984 Act to authorize this City Council to act upon said Reassessment
Report without notice and hearing as otherwise required by the 1984 Act;
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 finds and determines that, as set forth in said report,
(a) each estimated annual installment of principal and interest on each unpaid reassessment is
less than the corresponding annual installment of principal and interest on the portion of the
original assessment being superseded and supplanted by the same percentage for all subdivisions
of land within the Reassessment District, except as permitted by the 1984 Act with respect to
delinquent installments on any parcel; (b) the number of years to maturity of the Local
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Obligations is not more than the number of years to the last maturity of the Original Bonds; and
(c) the principal amount ofthe reassessment on each subdivision ofland within the Reassessment
District is less than the unpaid principal amount of the portion of the original assessment being
superseded and supplanted, and said reduction is by the same percentage for each subdivision of
land within such Reassessment District, except as otherwise permitted by the 1984 Act
respecting delinquent installments on any parcel. Accordingly, this City Council finds and
determines that, when the limitations upon the terms of the Local Obligations are observed as
required by Section 5 of this resolution, all of the conditions specified in Section 9525 of the
1984 Act are and have been duly satisfied, and that this City Council may therefore take action
upon the Reassessment Report without notice to the property owners and hearing.
Section 3. The Reassessment Report is hereby approved and confirmed, and the
reassessments contained therein are hereby confirmed and levied, and upon making the
necessary recordings and filings as required by the 1984 Act, the reassessments shall become a
lien upon the various parcels ofland reassessed in the Reassessment District.
Section 4. The City Clerk is hereby directed to (1) record or cause to be recorded
a notice ofthe reassessments referred to in Section 3 hereof and the related reassessment diagram
in the office of the Director of Public Works of the City of Gilroy, (2) to record or cause to be
recorded the reassessment diagram and notice thereof as required by Division 4.5 of the
California Streets and Highways Code, and (3) to file or cause to be filed a certified copy of this
resolution with the County Auditor of the County of Santa Clara to facilitate collection of
installments on account of unpaid reassessments on the secured property tax roll of the County.
Section 5. The Local Obligations, to be issued upon the security of the
reassessments hereby levied and hereafter to be recorded, shall (a) be structured to assure
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compliance with the requirement that annual debt service on the Local Obligations shall be less than
the annual debt service on the remaining outstanding Original Bonds, (b) have a final maturity not
later than the final maturity on the remaining outstanding Original Bonds, and ( c) be issued in an
aggregate principal amount less than the aggregate principal amount ofthe remaining outstanding
Original Bonds.
Section 6.
This resolution shall take effect immediately,
PASSED AND ADOPTED this 4th day ofJanuary, 1999 by the following vote:
AYES: COUNCILMEMBERS ARELLANO, GIFFORD, MORALES,
ROWLISON, SPRINGER, and GILROY
NOES: COUNCILMEMBERS NONE
ABSENT: COUNCILMEMBERS: SUDOL
APPROVED:
ATTEST:
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Rhonda Pellin, City Clerk
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RESOLUTION NO. 99-6
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I, RHONDA PELLIN, City Clerk of the City of Gilroy, do hereby certifY that the attached
Resolution No. 99-6 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)