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Home My WebLink AboutRESO7074• • SWm' ........ lMS*!'nk RllllIIIIdi .. 1·1.-90 br1lMmtb: Stoml DrIiDap Pee per Bquivllent tUsideatial Unit (BRU) $3.2S Special Noaea: 1. An Equi"aleaI Reaideorial Unit (ERU) is the basic unit for computation of stoon drIiMp _ (or JUidaItiaI mel non-ruidential customers. AU !Jiqle-family and duplex units lie CGGIidInd 1 BRU baed on daIa for Palo Alto and are ccn:1lIidenld to have an average impervious lS'e.of 2,500 ~ feet. All other properties will have BRU's computed to dte nearest 1(10 BRU asm, the following formula: No. of ERU • ~ryioua Area (Sq. Ft,) 2,500 Sq. Ft, -48- ·~-:-------_I_ •• _". a j ) API!aOVALOPI"'~Il,~''''' 'rhea! ~~1 . ~~ sale. aecatioJUnddI"way oltbc: 1992 s.a.ABeadI •• ; !INt.-apprciV VA· ODeS D1IU Hin IIIdWhhD Sill Prmcuco. CaUfOmfa, ... u8oldC-.... BoIIIIl ColU!~ ~a:~ not undertaken Ill)' RI!IpOnSibility fnrdJellCCliltK'.~ ... _fUr _ofdlil OffiCII' Ste~, A copy of lIIeIl legal opioiOl wiill be 'piimecl on eacb ....... ., ...... hert'10 AS .\ppendix B. ~o:p~mGJ~l'I.lN At ~~ time ~ deliv~ry of and payment fOI the 1992 Series A Bondi. die Clay,., n certifY that there JS no aetJon, 1lUit. proc:ee~, inquiry or jmestiti~, at law or in equity. Jefcft or by any court" mSIl:1atory asr:ncY.pub~ board ~r b)(ly, pend.i:08 or. to dlelalO'lriedp of_ City. thuate~, agaUlStthe City affecting the CXlstence Mthe City or die titles of its ofi en to thr.ir teS]JectlYe offi~ o~ seeking to restrain or to eJ\j<)in the llide or deIi'ftiy of die 1992 ~)eriea A B(ll~ds, tho~ appliclIDon of the pl'<'Ceeds thereofill.l:conlancc: with the Indcn-me, or' be collection or I1pplication of any Net Revenues provided fl)f de payment of tbe 11m Stmea A J 'ondi. or in an)' way c:ontesting or affecting the validity or C1U3tccabliity of cbe 1~92 Series A J ODds. abe lnccnture, any action of the City contemplated by any Qf tbC said cIocummIa, or .. c:oIlec:tiOD or IPplication of any revenues provided for tile pl)'nent of lilt 1992 Series A Bonds.· r in 111)' WI)' colltestin.g the completeness or accuracy of thi s OlflCiIoJ. ,'Statement or IDy 1mCOdmr:·1II or supplemc:nt thereto, or contesting the powers Ilf til e CD:f or its llUIbority wiIb. n.peot to die 1992 Series A Bonds or any action of the City conbllnpilled by IIRy ofuid documeota. J IJI'to1he knowledge of the City. is tbe~ any basis then flU. TAX .U.TIlilRS In tllte opinioo of Jones Hall Hill &. "'bil'e, A Prof~ssi\Jnel Law IApcrItion. ~_ Pnaciaco, Cillifomla. Bond Counsel, subject, howew:r. 1.0 the qua.JifiC:ltions set forth below, l·ndereltiltina la'N. tm interest on the 1992 Series A DondlI is eltclud4:cl nom JI"O'l ioctme for fe, IenI iIIcame In pWpDSeS and such interest is not an item of UJt proli~ furpurpooes oftbo .edenl aJ temali ve m!nimum to. imposed on individulls and corporations. provided. howl ¥v, -. for tile pwpose of computing the alternative minil1lum tax. imposed 011 sllCb ~ .. (a cWiDcd f(oJ' federal income tax purposes), sucb intereHt is tlken Into acCOUDl in ddeamiDiD I cerWD irearne and eammgs. Th~ opinions set forth in the preceding l.ent·:nce w~ subjeu to lbe ~~ I Ut !be Oty o)mply with all requ~ lCIltS of the Internal Re'lenue Code of 1~86 (the Code ) ~JDU8l be s:ltisfle<1 subscqueJtt to the issuance ~fthe lS9Z :~$ .~lJonds m order Ibat sucb iIIIIaeIl be. or continll<e to be excluded from gross mcomt :or federal Jl1I:ome tax )lWptMeS, 1'hr Clay bu c I)ven:mted to 'comply with each such requw':r~!lt. f:~ilw'e to ~oatEly with cenai: I of SDCb II ~ll1irelllents may cause the inclusion o~ sudt mtere81 III l:ross lDCOIDe for fIIdeml iaooaIe tu F urpo.geIS to be I\'!trOll'tive to the date of ISSU:IrICC: of th~ 1 ~"92 Se~ A BODdI. Ik lid CoabId cxpre.';ses no opinion regarding other federal till COIlSe'11K'.nces InIlIIg wiJb rape-:t to the 1992 ~,erie8 A Bonds. I'rospecti.ve purchasers of the 1992 Series A Botlds ,.hoaId be:nrate tbIt (i) 'iecdon265 of the C<a<1e denies a deduction fOl interest '.)ft indebiedn"l1 ~nc:umd or coldilJaod til pascbue or (11llT)' the 1m Series A Bonds or, in the ca~e of a finaltcial institullion, duIt podiUl of die 1992 :1erie:i A Bond owner's inte1eSt eltpMSC aIIu:"'''' to iintelest paylli:e on the l~ s.it1 A Bond$, (ii) with respect to insurance cor.lpalies subjc"~t to the IS hupolOCl by .. DOlI 831 of Ibe l:ockI. ~MlCti0ll832(b)(S)(B)(i) m1uces tile dI:liDc:tion fbrl<_ ft'aIV=t by lSpcl'CI'" oltbe laID of ':enailD items, in<:ludins interest on the 1 ~', Series A. "BOlW. (iii) hr taxlble )'CI! II be .... ·DC:fore January 1, 1992. inICre&ton the 1m·, !ie;des A h:wJa eamecl by tome coc.1OI'IIiGut could -49- t r f:, ,. t: r·: t· , " ~' I·, ~: ~t~··· " : , , 'n _ .,' r , ..... __ 1: •• _ •• s ••• II· •••••••••••• It ..... ., . ) be abject eo till oavinM ...... _ ~ by _011 fJ9A of .... Code, (iv) InteJeat OIl the 1992. s. ... A Bondi earned by cestaiD £oleiID ccnporatiou doinI bu'" in the United StaleS ~_lUbjectto. bfIIldI p.rofUa 11K i&rIpOItd by.ectiDn 8840ltbe Code, (v)p.llive .......... /noaiSIe,.indudinJ ~st 011 the 1992 Series A Bonds, may be aubject to fedml iacoIne tllllIlioa .... 1eCIion 1375 of !be Code for IUbc:bIpt8r S CorporationS thai hav. I8bcbIpIer C eaiap aad profits • the close of the taXable year if greater tban 259JJ of the' gross receipts of sum IUbchIf*1 S Corpot Won is paive inveStment income, and (vi) soction 86 of die Code .requiA::a tee:ipJellts of c:ertain Social Security and certain Railroad Retirement beneflts to take into account, in determini08 gross income, receipts or accruals of incaat on the 1992 Serie. A Bondi. . In the fuJther opinion of Bond Counsel, such interest is exempt from Califomia personal mcometuea. :RA11NO Moody's Investors Service, Inc. ("Moody's") and Standard &; Poor'. Corporation ("S&P") have given the 1992 Series A Bonds the rating of" Aa" and "AA+" respectively. The raUnp reflect only the view of such org;m-rlzations and an explanation of the sipifJCmce of such ratings may be obtained from them as follows: Moody's Investors Service, Inc., 99 Cburdt Street, New Yode, New Yark 10007, or Standard &; Poor's Corporation, 2S Broadway, New York. New YOlk l00G4. There is nl) assurance that the ratings will continue for Illy given period of time or that they will not be revised downword or withdrawn entirely by the 1'lItm, agencies. if in the Judgment of ~uch rating agencies, circumstances 50 wammt. Any such downward revision or withdrawal of such ratings may have an adverse effect on the market price of dte 1992 Serits A Bonda. lEGAL OPINION lonea Hall Hill &; White, A Professional Law Corporation, San Francisco, California, will render III opinion with restlect to the validity of the Bonds in substantially the fonn lei forth in AJJpendix D hereto. Copies of such approving opinion will be available at the time oi delivery of the Bonds. Cl.OSINO DOCUMP.NTS In Idditioo to thz opi:.lion of Bond Counsel, tbe City will, at the time of dcllv~ry of the Bondi. ftllDilb die purchaser with the following docwnelltt, signed by a ~spor!lible officeI' of th: City,lmd da1ed as oftbe date ofdelivery: 1. 2. AdJiInIc Calificlle --A certificate of an appropriate officer of the City certifying that. on the basis of facts, estimates and circtunstanc:es in effect at the time of delively of the Bonds, it is not expected that tM proceeds of the Bonda will be used in a manner that will cause the Bonds to be arbitnae boocIs. No lidpli-c. ...... A certificate of an appropriate officer of the City CMtifyq that there is no litigation pnding or, t) the beat of BUch officer's knowledae. threItened against the City affecting the validity of the BODds. -50· I,.............-~-----------~., .. --~ . .) ~ 3. SipIhn~ -A cenifiCite of lJ?PIopriate Qfbn of die C ty irIdJc. ... that they have signed the BondI by mann,! or facsimil" sipIbn .. ' dill dIey ..... duly autborh:ed to execute the I alD~ . ·t T .... •• -~of"'l£e'J~I--n. re:eipls oftbe,. __ ... tt. City's Director of Finance of tile City llbowilllg ~ the: purd1aIe prir ~ of*. Baods, including accrued interest to the dI~ of deli",CIY, if m" bu beal.1eI eived by the City and the Trustee, rcspectiv'I,ly. ;). Cal:ificlle Ownming Oflicill1 :SI-.anl-A certific:ate of an IPP 'Pri* ofIicer of the City. actin! in such person's official. _I not perKaal capacity,l) the effect that at the time of the sale of the Bo)Jidl and It all times .. '~ theft :0 up to IDd including the time of delivery of the Boads, the Offic.al SUIaDalt t·=lasin& to the Bonds did not COOJain any untl'1lC Stat.cmllll of allUllerial fact 01 omit to stAD. material fact necessary to maII.e die statements 1haeill, in liJht of tJ:, : ciJeumatlOCCS under which they were made, nl)t mislca:lillg. M~Cm.u~'lBOUS Einancina Co1Wi1tml The material contained in this Official Statentt:nl was pl'Cp!1f'ed by Stone ~ Younaberz. fmancing consultant to and under contra,;:t with the City. The fiuncing COlJlRl tant will receive com!'Cnsation from the City contingent 'lpon the sale ,JDd delivery of the Bone s. Stone cI: Youngberg may submit a bid for the Bonds :md, if it is !be suco:uful bidder, : nay purchase the Bonds and resell all or a portion of the Eones to thr: pablic. llruk:rwritinl The Bonds are being offen'.d at put,lic Hale by the City and wUl be sold te abe hiJhest responsible t hldcr as detennine.! by proYi.sj-:Jns set f\Uth in the Official NotiCl of Sale of the BOllds. 111e sur.cessful bidder :lIay reoffer the Bonds to the public :al any pric'~ or yield ~t dc:~4!)nnines. All lnfonnatioll contained in this Offlcial Statanent pertaining to the Ci y, abe Ci!r and the Utility EntcJPtise has been fi.unished by tltt City N: the Crty, IIld the aec:uU< Il and delivay of thtl Official Statement have been duly Iwthorized by the City. AdditionallnforrnaljOD All quotations from and summarie:s lid expllMtions of dae Indenlwe .' d odtet ItatU1eI aDd documents contained herein do not purport to be c:OMple1e, 1Ilt!.refeteace ill'lIIIIe to such do~:uments. Indenture and statutes for fuJI ;uad complere stalellleDb of their I coviaiom. This Official Statement is submitte41 only in C(J!:mection "rith the sale oj the DODds by the City. All estimates. I!,umptions. Stali;nicld informacion aod ctber staIeIDeIl' , c:ontained herein, while taken from s~ cORllidcred reliable. lIe not guIl1IIllI:ecI by !be Cia). 'I1Ie iDfonnadoa contained hemin should not be consuued 1:3 representing all oxtditions If[et:q the City oc the Bonds. erry Of PALO ALTO J~y: .bL---~.,..-Mayor ··!:1· ~~. I~, " " :' p', I, ~, ' . ~~, i:[ i, , tt cd'" · ... I~ .... II .. II .. II ........ II.