HomeMy WebLinkAbout0549.093Octo~r 21, 1993
THE HONORABLE CITY COUNCIL
Palo Alto, California
.embers of the council:
Mp9tl ip Bri.f
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Tbe purpose of this report is to request Council approval of the
issuance Of bonds and the preliminary official st8tement for the
California Avenue parkinq structure. The bond prOCeeQ5 will be
usee! to finance the construction of the public parking structtlre~
lac,grOWl4
The City plans to construct a two-level public parkinq structure in
the California Avenue area on the site of city Parking Lot 3,
located on the south side of Cambridge Avenue. betwEen Birch Street
and New xayfield Lane.
staft held an informational meeting all septeaber 9, 1.993 with
property owners. in. the California Avenue area to describe the
proposed. parkinC)' structure to all property owners who would be
asked to pay for the structure througb tbeir property asses!SlIIents.
on S.epte.ber 27, ~993, the City Council held_ the first public
hearinq. Staff held a second property owners' inforaation meetinq
on October 6$ 1993. On october 12, 1993 the City Council held a
second public hearing and approved the Engineer's Report and the
levyinq of asse8s~ents. Throughout the entire process, property
CMR:549'93
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owners representing over half of the area being assessed have
indicated that they supported the project.
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The City intends to financ~ the project through t~e sale of limited
obligation ilIprovement bonds, The assessment bonds provide for the
property owners, who benefit f~om the pa~king structure, to pay for
the project through an annual assessment levied against their
properties end collected with the property taxes. The City of Palo
Alto has no obligation to pay the bonds in the event of a detault
by any or all of the property ownerEi. The a.ssessment district
process, including the procedure for levying annual assessments, is
detailed in the preliminary official statement.
n.liMiD" o;,ioi.l 81:at ... nt
The Prelhinary Official Statement is provicled to prospective
purchasers o.f the new bond issue. This document describ£s the
bonds and qives additional information about the City and the
California Avenue Assessment District to prospective purchasers of
bon4s.
On Movaaber 22, 1993 the City vill accept bids on the bonds. On
that date, staff will =equest the Council to approve the sale of
the bonds, and award the construction contract. Currently, it is
anticipated that the bonds will have an average intere&t rate of
under 6.5 percent.
haaw'p4atioD
Staff recommends that the Council:
1) Adopt the resolution authorizing the issuance of bonds tor the
california Avenue parking structure, and
2) Authorize the Mayor and Finance Director to sign the
Preli.inary Official statement.
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Respectfully submitted,
~~-,/~~, ;£ ~::'~c'£
GORDON B. FORD
Treasury Manager
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Acting Finance Director
~~~
A&slstant City Ha~ager
Attachments.:
A Pre~iainary Official Statement Dated OCtober 25, 1993 B Resolution
Related start Reports:
CMR:549:93
CMR:179:92
CMR: 10) 93
00l:4S0 93
CMR:504 93
CMR: 532 93
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p~""" OffICIAL STATEMENT DATED onB.ER2.!.1993
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UMrn:D ODUCATION BONDS
CALIFORNIA AVENUE PARKING ASSESSM£l<r DIS11tICT NO. tl·!J
ASSESSMENT BONDS OF 1993
(Sao .. a.... C ... .,. C.Utonda)
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~ oldie Stw; of CalitonUa, &cWI 5oc:tJoAI U tUl2a, 1l~'*'O, aDd U12.<:I$O of ~ 11.12 01 Title U 01 tiw Pa.ItI Alto NuakipIl ~ (tac
'CodIlj. ..tIorttin& ~ ~ tor ~ ~ &Dd ~ 0/ ~ ~ &Del olllUeo.tioa No.. 7llO, edopIot:d by _
c:o.aI 0/ dae Oty 0/ ,.., AlIa 011 /uIpiI: t. IP93. Tlte Bc:w» are tQc ~ ~ to Boed f'Iaa G Se.;:tio:(, 1116.15I:l 01 0Yptu 1116 ol1bie 13
of dMi: CodIC ad .. ~ ~ for tk ~ d &:.dI ud ~ LIM: 1..ct¥J.:i ~ ~II to...,. the: Pl:iaipI.! led i4lcft:ll
~ by __ at,. C'.oaociI olPtiD Ano oa Dauber 2:5,1993 (tk .~").
"Ilw: &oeD will lie iIIuciI iZII boot<In:ry lonrI, iIUtidy ~ ia l1li: SiIIM of .., Co\Sc ~ CD.. ~ Yod, New l'ext, • ~ ad
~ 0/ die I:Jrepo&iIoIy TNIII ~ ('"DT'Cj, ,.. Y<Jd:, New Yoct.. 1Il1QU1 CIII die BoDIIII.ru boc ~ 011 NadI 2 ad ~ 2 of cadi "'*' . , Mazdl2, 19N.. ~ of ~ ~ .. tbe ~ will be: ~ in I>oot-ay ccIy ~ IDdivichaJ ~ ... i!l be ia
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",........". ... bill!; olowae. ct aIf talri:fobIe rqJ JIftJIIM}' ia UIE-~4iIIb:icl. nc-__ ~ are to be :Paid a:. _ f-s~
bdle IkaodI <Ik "&cleO,...", Il:I be IIdd by dte Ciq ad will be..-d lO,.,.tK 6ctJt -..a a. tK ..... ~ M.
A ~ faD;I ill the 'UDCUfIl 01 s... r:t &.be ___ 01 ... ..., (. ~ r-t'}..-be ~ frouIlhe ~ 01 tIM &:.dI..
'Ik ~ Pwad' -'II be.bdd by the: City aad ...m be • tcMmC: 0{ PIiIIl* fwdI let ~ 10 111M &o.d ....,. .. t:lI!: ~ c( ~ --at
.bC t Tbe ClIy boll ~ by raoIllUOa tMI it..;:r ~ oI:Iiipe iiX1f U>~ ~ ..... trom .. Gry ~ to t1lft -:."4cticitaq
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~ CIliIonIia, Dc.4 C:-l .... .". otlIcr ~ Cc:tf:&ia ..... ~ will be,... UJIiO'I b .. City.", LIM: at,..ua-ty. Ie ill
......... 1M ao.ta. ... ~bw.,riI be: _~ ror~ia N-Y-cri, NfwYon c. ar-eo. ~P, 1991 -.. ~
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No dealer, broker) salesperson or other person ba.s been authorized by the City or
Palo AJto to give any jnIorma~jon or to make any representatIons other than those
rolltalned in this Preliminary Official Statement, and, if given or made; such other
information or representation must not be reUed upon as having been authorized by anr of
tlte fore$oing. This Preliminary Official Statement does not constitute an offer to ~el or
Ibe ""licitation of an oUer to buy. nor shall there be any sale of the Bond. by any person in
any jurisdiction in which it is lmJawful for such per50n to make stich offer, soilCl!ation or
sale.
The information set forth herein has been obtained from the City of Palo A1,0 and
other sources whicb are believed to be reliable, but, such information is not guaranteed as
&a:llI'IICy or completeness. The information and express; on of opinion herein are ,ubje ct to
c:lIange without notice, and neitber the delivery of this Preliminary OlTIcial Statement nor
any we made hereunder shall, under any circumstances, create any implicalion that there
haS been no change in the affairs of the City of Falo Alto or California Avenue Parking
Assessment District No. 92·13.
The summaries and references to Ihe Bond Law. the resolutions, and 10 other
statutes and documents l'f~:ferred to herein do not purport 10 be compreher..si'Ve or defiru'tive
and are qualified in tbeir entirety by referente 10 eacb such statute and dDCUmen~
The Preliminary Official Statement is not to be construed as a cuntract between the
Oty 3IId Ibe purchaser or owner of any of tbe Bonds. The City has certified that this
rrellminary Official Statement bas been "deemed Final" as of its date except for the
omission of certain (mal priclng and rel.ted inform.tion. as required by Rule 15cl·12 of
Ibe Seanities and Exchange Commission.
IN CONNECTION \\TfH TIiE OFFERING OF 1HE BONDS. TIiE
UNDERWRITER M ... V OVERALLOT OR EFfECT TRANSAGnONS WHICH
STABIUZE OR MAINTAIN 1HE MARKET PRICE OF TIiE BONDS AT A LEVEL
ABOVE THAT WHICH MIGHT OTIiERWISE PREVAIL IN TIlE OPEN MARrCET.
SUCH STABIUZlNG. IF COMMENCED, MA V BE DISCONTINUED AT ANYTIME.
CllY OF PALO ALTO
SANTA ClARA COllN'lY, CALIFORNIA
Ma,yor and City Council
JeaJI McCown. Ma}'G:
Liz Kniss, VIce Mayor
Ron Ander.ren, COWlcilm ember
Mike Cobb, Councilmembtr
Gary Fazzit,o, Councilmember
JosepTa Huber, COUllcilmember
Dick Rosenbaum, Cou~dlmember
Joe Simitian, CouncilmembeY
Lanie U'heeler, C-oun.cifmtmbu
City Starr
June Fleming, City Manager
Ariel ColOMe, City Allomer
Gloria Yaung City Cleric
Bill Vm.son. City Auditor
Finance Department
Emily Hamsan. Direclar
Gondon B. Ford, Tfl!1lSW)' Manager
PubUo Works Depal1ment
Glenn Roberts, Director
PROFESSIONAL SERVICES
BODd Counsel
JOIII!J Hall Hill do mlite, A Professional Law Corporruion.
San Francisco, California
Paying Agent
Bank of America, National Trust do
Savings AssociQlion
San Frunci.rco, California
Financial Adyisor
Miller 4< SdJrOeder Financial, Inc.
Plewanton. CA
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TABLE OF CONTENTS
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SUMMARY STATEMENT ................................................................................................................ i
INTRODUcnON ... _ .......................................................................................................................... I
THEBONDS_ .................. _ ......................................................... , ................................................... I
=~~o~~~~Bo~d~:::::::::::=:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: :
S<:bedule of Maturities ................................................................................................................... 2
=~~?~~~~:::::::==:::::=:::::::::~=::~:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::J
DisPo<;ilioD of Surplus Funds ........................................................................................................ 5
SEClJI{ITy FOR TIlE BONDS .................................................................................. " .................... 5
General __ .. _ ......... _ .......................................................................................................... 5
Reserve Fuod .............. __ ..................... _ ................................. _ ......... , ........................................ 6
Covenant to Commence Superior Cv-urt Foreclosu~ ............................. , ................................ 6
THE DISTRIct ................................ _ ..... _ .................... _ .................................................................. 7
Description of the Distriet ........................ _ ..................................................................... _ ....... ', 7
Property Own.rship Within tbe DislrieL.. ............................. , .................................................... 7
Assessed Valuations ... _ ........ _ ....................... __ ................................................................... 7
Tax DelinQuencies ........................ _ ............................................................................................ 7
Procedure lor u,?, of Annual Assessments ............................................................................... 7
~!1 ~:~ ·s .. ~;.:;;i~-:::::::~=::===::::::=:::::::=:::=:::::::::::::::::.~:::::::::::::::::::::::::::::::::::::::::::::: l~
THE PROJECI'_ ........ _ ....... _ ... _ ........ _ .................. _ ................................................... _ ..... II
TAX ~i~~r.~?~~:::~~:::::::=:::::::::::::=::=::::::=:::::::::~:::::::::~~=::::::::::::::::::::::::::=:::::::: l~
ABSENCE OF UTIGA TION ........................................................ " ............. _ ................................ 13
LEGAL OPINION .... __ ....... _ .......... _ .. _ ......................................................... _ ..... _ ............ 13
UNDBRWRlTING ___ . ___ ..... _ ......................... _ ................ _ ...................................... 14
NO RAnNG .. _ .......... _ ................ _ .................... ,_ .... , ................................................................ 14
ADDmONAL lNFORMA TION .. __ ............... _ ................................................................. " ....... ' 14
APPENDIX A • THE DISTRICf ........................................................................................... , .. _ ... A·I
Excerpts from the En~ine.r·s Report
. 'Ibe Assessment DlSlrict Dia~am aDd Map
-Description of Assessment DlStriel Boundary
.. Description of Proj .el
Fu;caI Year 1993/94 Assessed Valuation Tab!e
APPEfIr"OIX B -CITY FINANCIAL INFORMATION AND CITY AND COUNTY
GENERAL AND ECONOMiC DATA ............. _ ....................................................................... B-1
APPENDIX C -FORM OF OPINION OF BOND COUNSEL .................................. _" ......... C-I
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SUMMARY STATEMENT
nus SUMMARY STATEMENT IS SUBJECT IN ALL RESPECTS TO mE
MORE COMPLETE INFORMATION IN TIiIS PREUMINARY OFFICiAL
STATEMENT, INCLUDING THE COVER PAGE AND APPENDICES HERETO
AND TIiE OFFERING OF mE BONDS TO POTENTIAL INVESTORS 15 MADE
ONLY .BY MEANS OF THE ENTIRE PREUMINAR Y OFFICIAL STATEMENT.
Purpose:
Security for the Bonds:
Bond proceeds will be used to finance the acquisiti!>n nnd
construction of certain pubJic improvements included within
the d=lp~on of work for Ibe California Ayenue Parking
Assessment District 92-13 (lbe "District") ..., more fully
described in t..::&e section --me Projeci-, PubJk imyfovements
g~neraily include the cowtruction of a two-Jevel,tl86 vehicle
parking stalls) public parking structure, UPOD the site of City
Parking Lot 3 loca'ed on the south sjde of Cambridge Ayenue
and other conforming improvements as required to meet the
standards of the City of Palo Alto for public parking faciUties.
The Bonds are secured by tbe annual special assessments, tbe
proceed, of which constitute a trust fund for Ibe redemption
and payment of the principal of the Bonds and Ibe in,erest
thereolL All of the bonds are secured by the monies in Ih~
Bond Fund cr~al~d by the proceedings tor the Bonds and by
the annual sl'e<:laJ assessments leYied. Th~ Bonds, including
principal and inte,es~ are parable e.dusiyely out of the Bond
Fund. The assessments constJtute Uens on the lots an<! parcels,
and the assessments are on parity with the lien for general
taxes. They do not, however t constitute a personal
indebtedness of the respective owners of the lois and parceIs-
A Reserve Fund in tbe amount of 5% of the original principal
amount of Bonds issu ed will be established from Bond
proceeds. Th~ ReserYe Fund will be b~ld by the City and will
be a source of available funds to adyance 10 the Bond Fund in
the event of delinquent assessment installments. The City has
determined by resolution Ihat it will not obligate irself 10
advance available funds from .lbe City treasury to cure any
deficiency which may occur in the Bond Fund as a result of the
use of such fund to make payments of principal of and interest
on the Bands when due in the event of any delinquent
assessment installments. The City has covenanted 10
conunenoe court foreclosure proceediE,gs witbin ISO days
renowing notification to the Director of Finance by the County
Auditor of delinquency in the pa.yment of an assessmenl and to
prosecute diligenlly to completioD the foreclosure of eacb and
every delinquent assessment installment
For a more complete description see sections "Security for the
Bonds." "Reserve Fund" and "Covenant to Commence Superior
Court Foreclosures" herein.
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I'orm o£Bonds:
Redemption:
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Th Bonds will be issued in book-entry (orm, in denominalions
of $5.000 each or any integral multiple thereo!
Any Bond may be <alled for redemption prior to maturity on
any March 2 or September 2 upon payment 01 103 percent of
par vtlluc, plus accroerl interest to the date of redemption .
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INTRODUcnON
The City of Palo Alto is located in northern Santa Clara County, 00 the San
Frandsoc Peninsula about 35 miles south of San Francisco and 15 mil .. northwest of San
Jose. lo<:ated between the shore of the San Frandsoc Bay and the foothills of the Coast
RaDge MoUDtaln$, the City ccver> an area of approximately 26 square miles.
The California Avenue Parking District ("District") ronstitutes most of the area
commOluy referred to as the California Avenue area bliSiness district of the City of Palo
Alto. COmprised of some 10 city blocks, tho area is prinwily d'%~~r.d with commercial
finanQal~professional offices, Wlth & se8ttering of older, sin,ele· . y residences situated
along the perimeter of the District. Most of the retIDl ouU.ts consist of small specialty
shops
The District consists of 149 parcels, 111 of which will be assessed. The fiseal year
1993/94 asse..<Sed valuation of land for the parcels within the District which will be assessed
for the Project is $23.754.754 and the improvements are $41,231.632; for a total assessed
vaIuation of land and improvements of $64,986,386.
TIIEBONDS
Authority lor Issuance
The City of Palo Alto is a Olarte, Cily orpniud and existing PllISUaIlt to the laws
of the State of California The proceedings Tor the improvements and the le\oy of
u<ewnents are being conducted as provided in Section 19 of Article XVI of the
Constitution of the State of California, Sections 13.12.010. 13.12.040 and 13.12.050 of the
Palo Alto Municipal Code ("Code"). authorizing special provisions for parking districts, and
Resolution of Preliminary Determination and Of Intention to Make Acquisitions and
Improvements No_ 12-.'0, adopted by the Council of the City of Palo Alto 0. August 9, 1993;
the Bonds are being issued pursuant to .utio. 13_16.150 (Baed Plan G) of the Code, and
the Raoiutio. Providing for the Issuance of Ba.ds and DirectiDg the l.eYy of Arurual
A.sFe<'me.ts to Pay the J'rinciF,l and Inter .. t adopted by the City U.uncil of f>alo Alto 0.
October 25, 1993 ("Resolution ).
Description of the Bonds
The Ba.ds will be dated the date of d.Livery of the Bonds and will be issued in
book-entry form.
The Bonds will mature September 2 of each of the years 1995 through 2015.
indusive, in the amounts shown in the Sc. ... duI. of Maturities which follows. Interest on
the bonds will be payable semi-annually on March 2 and September 2 of each year,
amunenciDg 0. M",c:b 2, 1994, which WI'll represent inter .. t from the date of delivery of
the Bonds.
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Schedule of Maturities
1995
1996
1997
1998
1999
2000
1001
$ 5~,000
55,000
50,000
60,000
65,000
70,000
70,000
Redemption or Bonds
2002
2003
2004
2005
2006
2007
2008
$ 75,000
80,000
85,000
90,000
95,000
100,000
110,000
4._4. ' ;q;;
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2009
2010
2011
2012
2013
2014
2015
$ 115,000
120,000
130,000
140,000
150,000
160,000
170,000
Any Bond may be called for redemption prior 10 maturity on any March 2 or
September 2 upon payment of 103 percent of par value, plus accrued :nteresllo the dale of
surrender or the date of redemption. whichever is earlier. No interest will accrue on a
Bond be}'Und the March 2 or Soplember 2 on wbich Ibe Bond is called for redemption.
Notice of redemption must be given by persona! sen-icc or registered or certified mail ilt
least 30 days prior to Ille redemption date,
The Book-Ent!)' System
DTC will act as securities deposHory for tbe Bonds, The B<>nds will be issued in Ihe
form of one fully-registered Bond for each of the maturilies of the Bonds, registered in the
name of CWe & CO, (DTC's partnership nominee), The Bonds will be retained in the
custody of DTC.
DTC Is a limited'purpose trust company organized under the New York Banking
Law, a "banking organization" wilhin the meaning "f the New York Bankinj! Law, a
member of the Federal Reserve System, a -clearing corporation" within me mealllng oflhe
New York Uniform Couunercial Code, and a "clearing agency' regiSlered pursuant to the
provisions of Section 17A of the Securities Exchange Act of 1934, DTC holds securities
that its participants ("Particit".nIs") deposit with DTC, DTC also facilia.tes lhe settlemenl
amoaw ParticipanlS of seCUrIties transaclions, such as lrarufers and pledges, in deposited
seamties through electronic romputerized Book-Entry cbanges in Participants' accounts,
tirereby eliminating the need for physical movement of securilies certificates, Djrect
Participants include bond brokers and deal.", bnnks, !rust companies, dearing
co~rations, and certain other organi:~,.ations. DTC is owned by a number or its Direct
PanicipanlS and by the New York Stock Exchange, Inc., the American Slack Exchange,
Inc, and the National Associ.tion of Securities Dealers, Inc. Acress to the DTC syslem is
also available to others such as securilies brokers a~d dealers, banks, and trust companies
that clear through or maintain a cuslodial relalionship with a Direcl Participant, either
directly or indirectly ("Indirect Participants"), The Rules applicable to DTC and it,
PartiCipants are on file with the Securities a~d Exchange Comnussion.'
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Purchases of the Bonds under the DYC s),stem must be made by or through Direct
Partidpants.,. which will receive a ([edit of the Bonds on DTCs records. The owner5hip
interest of each actual purchaser of each Bond ("Benelid.1 Owner") is in turn to be
reeorded on the Direct and Indirect Participants' records. Beneficial Owners will nol
receive written confirmation from DTe of their purchase, but Bendkial Owners are
e;tp~cted to receive written confirmations providing details of the tran.saction. as we[J as
periodic statements of their holdings. from the Direcl or Indirect Participan! through which
the Beneficial Owner entfied into the traruaclion. Transfers of ownership interests in the
Bonds are to be accomplished by entries made on the books of Participants acting on
behalf of Beneficia! Owners. Beneficia] Owners will not receive certificates representing
their ownership interests in the Bonds except in the event that use of the Book-Entry
system for the Bonds is discontinued.
To facilitate subsequent transrers. all of the Bonds deposited by Participants with
DTC are registered in the name of DTC.s partnership nominee, Cede & Co, The deposit
ot the Bonds with DTC and their registration in the name of Cede & Co. effect no change
in beoeficial ownership. DTe has no knowledfe of the actual Beneficial Owners of the
Bonds; DTCs records reflect only the jdentity 0 tbe Direct Participants to whose accounts
such Bonds 2J"e credited. which mayor may not be the Beneficia! Owne!"s. 1he Participants
will remain responsible for keeping account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC 10 Direct Participants
and by Direct Participants to Indirect Participants and to Benelicial Owners will be
governed by arrangements among them. subject to statutory or regulatory. requirements as
may be in effeci from time to time.
Neither DTe nor Cede & Co .. wm consent or vote with respect to the Bonds.
Under its usual procedures, DTC mails an Omnibus Proxy to the City 'IS soon as possible
after th. record date. The Onuubus Proxy assigns Cede & Co:s coruenting or voting rights
to those Direct Participants to whose accounts the Bonds are credited on the record date
(identified in a listing aUacbed to tbe Omrubus Proxy).
Principal and interest payments on the Bonds will be made to DTe. DTCs practice
.is to credit Direct Participants' accounts on payable date in accordance with their
r .. pective boldings showu on DTC's record, unless DTC has reason to believe that it will
not receiye payment on the payable date. Payments by Participants to Beneficial Owners
will be governed by standing instructioru and Ctls10mary prIlC!lceS, as is the case wi[h
.s.ecurities held for the al:counts of customers in bearer form or rr:gistered In "sueel name",
and will be the responsibility of such Participant and not of DTC, the Age,,~ or the Citj,
subject to any statutory or regulatory requirements as may b. in effect from time to time.
Payment of principal and interest to DTC is the responsibility of Lh. City or the Agent,
disbursement of such pavrnents to Direct Participants shall be the responsibility of DTC,
and disbullement of such payments to the Beneficial Owners .h all be the responsibHity of
Direct and Indirect Participants.
DTC may discontinue ,Providing its services as securities depository with respect to
the Bonds al any time by givrng reasonable notice to the City or the Ager.t. Under such
circ-.. uDStances, in the event that a suc~ssor securities depository is not obtained, Bond
certificates are required to be printed and delivered.
The City may decide to discontinue use of the system of Book-Entry transfers
through DTC (or a successor securities depository). In that event.. Bond cenificates will bl!
printed and delivered.
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The information in this section concerning DTC and DTCs Book-Entry system has
been obtained from sources Ihat the City believes to be reliable, but Ihe Cit) takes no
responsibility Cor the accuracy thereoC.
The Oly, the Underwriters! the Financial Advisor BDd the PO),il1g Agent do not halve
HI responsibiUty or oblitoUon to uTC PartidpBnls, 10 Ihe persons for whom they ad as
nombt.ea, or to an,.. other person who 15 not shcmn on the registration books 85 boeing an
0WIla' of the BODds, with respett to (1) the acctlrBCJI or any reeords maJnl.Alned by OTC or
..". DTC Participant; (il) the payment by DTC or any DTC Partldpant of any amount In
raped of lhe principal or, redemption price DC or interest on the Bonds; (Ui) th~ delh'el)'
of ad)' DOUce whIch l.s permitted nr requJred to be given 10 registered owners under th e
Raollllloa; (tr) Ihe seletlion by DTC or any DTC Partidpsnt of aoy person to "",ehe
pa)'1DOllt ... tile evenl of. partial redemption of Ibe Bonds; (v) any consent given or otber
aotlo. laken by DTC as ""Islered owner, or (.i) any olher purpose. lbe City, the
U.adenni1ers, the nfiBnrial advIsor and Ihe Paying Agent cannot and do DOt livf!' any
""W1Inees tb.at DTC, DTC PartJcipanU or alhert ~'iIl distrlbule payments or principal of
or iate.reA 011 the Bonds paid 10 DTC or 115 nominee, .liS the regIs(ered Omler. or any
DOUces to tbe Beneliclai Ownecs or Ihal they 'Will do so on I timely bas:is or will sen'e and
ICI In • manlier described in this PcellmlnBl)' Omr1al Sfalemen.. The ClI" the
Uadenrrllers, tbe linancial ad.lsory and Ihe Paying Agent are Dol responsible or liable for
the [oil"", ot DTC or any DTC Partieipanl 10 !Oake any pa)m.,1 or gi>e Iny notice 10 •
BeDeIIclal Own", In re.specl 10 the Bond. or any error or delay relating Iherelo,
The foregoing description oC DTC, the pre«dures and record keeping with respect
to beneficial ownerShip interests in the Bonds) payment of principaJ, intereSI a.."ld other
paymenls on the Bonds to OTe to DTC Participants or Beneficial Owners, conlirmation
BruI transfer cf beneficial ownership interesl in such Bands and other rela!ed Iransactions
by and between DTe, the OTe Panicipants and the Benefidlt.! Owners i. based solely on
fuformation pnwided by OTe Accordingly, no representations can be made by the City.
the Underwnters, the financial advisor and the PayIQg Agenl concerning these maUers and
neither the DTC Participants nor the Beneficial Owners should rely on Ihe foregoing
In!ormation w,th respect to such malters, but should instead confmn the same wilh DTC or
the DTC Participants, as the case may be.
Dj5fflotinuancc of DTC Service.;:;
In 1he event th<tt (i) OTC determines not 10 continue 10 acl as securities depository
for the Bonds, or (ii) the Cily determines that DTC shall no longer ac~ Illen the Clty will
discontinue the Book-Enlry Syslem with OTC Cor the Bonds. If Ihe City deterrrJnes 10
Ieplace DTC with another qualmed securities depository, Ihe City will prepare or direcl the
preparation of a new single separate. rully registered Bond for each maturity of tbe bonds
regIstered in the name oC such successor or substitute securities deposltory. If the City does
not identify another qualified securilies depository to replace the incumbent securities
deposilOI}' for the Bon<1s then lhe Bonds shall no longer be restricled 10 being registered in
the bond regisuation books in the name of the incumbent securities deposilOry or its
nominee,. but shaU be registered in whatever name or names (he City shall designate.
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In the event that the Book-Entry System is discontinued, the following provisions
would also apply: <aJ the Bonds will be made available in ehysical form, (bJ pnncipal o~
redemption premiums, if any, and interest On the Bonds will be payable upon surrender
thereof at the principal cO'l1"tate trust office of the Paying Agent in $;>;.] Francisco,
Califomia (cJ interest on we Bonds will be payable by cbeck mailed by first class mail '"
the Paying Agent on the Interest Payment Date \0 the Owners of the Bonds at thelT
addtessco appearing on the registration books maintained by the Paying Agent as of the 1st
day of the month preceding such Intere,t Payment Date, (dJ !he DOnds may be excl!anged
or transferred for a new Bond or Bonds registered in the ..,une of the Owner (in the case of
~esl or in the came of the transferee or transferees (in the case of tramfers} of
authorU.ed denominations of the same matcrity in the aggregate principal amount which
the registered owner is el1titled to rcce:'., upon the presentation thereof at the J'rincipal
eotpOrate trust office of the Paying AIlent in San Francisco, California, to~ether WIth • duly
executed written instrument or transler or authorization for excbange, m form :md with
guaranty of signamre satisfactory not to the Paying Agent (eJ for evo!)· exchange or transfer
Of the Bond." the Paying Agent may require payment of • = sufficient to cover any tax or
other governmental charge that may be imposed in relation thereto; and (I) the Paying
A&eIlt will nor be required to exchan~e or register a transfer of (i) any Bonds during the IS
day period next precedin~ the selectIOn of Boads to be redeemed and thereafter until the
date 0( mailiDg of • notlce of redemption of Boads sel~ed for redemption or (iiJ any
BotIds ~Ie<:te<l; called or being caTJed for redemption in whole or in part oxcep~ in the case
claD)' Bond to be redeemed in part, the portion thereof not to be so redeemed.
Pwpose or Bonds
Ptoceeds from the sale of the Bonds w-Jl be used to finance tbe ""ns!ruction of
~~ents as described in 'The Project" section 0( this Preliminary Official
Disposition 0( Surplus Funds
If any surplus funds remain after campletion of the hnprovements, the surplus shaD
be applied to the payment of principal of any Outstanding Bonds (as defined in the
ResoIlltion) as the same becomes due and payable or to the redemption of any Outstanding
Bonds on any avail,ble redemption date.
SECURITY FOR THE BONDS
General
The Bonds are secured by annual special assessments, the proceeds of which
constitute • trust fund for the redemption ana payment of the principal 0( the Bonds and
intcreot thereon. All the hoads are secured by the monies in the Bond Fund aeated by the
proceedings for the Bonds and by the annual spe<ial assessments levied. The Bonds,
mducting principal and interes~ are payable exclusively out of the Bond Fund. The
assessments canslitute liens on the lots and parcels and the assessments are on parity with
the lien for general taxes.
Although the annual assessmen!S C()nstil"~te liens on the lots and parcels assessed,
they do not constitute a pe=nal indebtedness 0( the respective owners of the lots and
parcels. Th.re is no essnrance that the owners will be financially able to pay the
as<es<meut installments or that they will pay such installments even !hough financially able
to do SO-
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In the event of • delinquency in Ibe payment of .ny instaUment of an assessment,
the DiJectnr of Finance will transler from Ihe ReseNe Fund, to the e.lent of anil.bie
funds therein, 10 Ibe Bond Fund, the amounl necessary, in addition to the moneys on
deposil therein, to pay the next maturing installment or principal amI interesl on the Bond ..
1n the event a superior court foreclosllre action is instituted to enforce delinquent
assessm~Dt installment. and the City purchases su.ch property, Lhe Reserve Fund will be
used, to tho elItent of available funds in such fund, to make advances 10 the Bond Fund for
Ply=nl of the delinquent amount Qf Ibe assessment instaHment on \he property and
future assessment installments, including interest thereon, unlit such property is resotd by
tho City. There is no assurance tbat funds will be avaUable for tbis purpo~ and if, during
the period of delinquenc" there are insufficient available funds., a delay may occur in
payments 10 ~ owners of \he Bonds.
The ovmership of property in the District Is diversified. Howev"" Ihe failure of any
of the!c owners to pay ~helr respective. sssessment instaHments. in a dmely manner could
result in the rapid total depletion of the Reserve Fund prior to reimbursement from resales
of property or delinquency redemptions.
Pursuant to the provisions of 'he Code, the City has d'!tennined not to obligate ik<elf
\0 ad\'3Il<e any available funds from the City treasury 10 CQver any deficiency or
delinqueru:y which may oceur in I~e Bond Fund by reason of the failure of a property
owner to pay an annual asse'SSment l.nstaHP.lent,
The Bonds are not secured by the genera! twng power of the Ciry, the State of
California or any of its political .ubdIVisions, nor is the full faith and credit of the City. \he
Stale of CalIfornia or any of its political subdivis'ons pledged to the payment of the Bonds.
Reserve Fund
The Resolution provides for the creation of the Reserve fund to provide available
funds. to the extent of such. Reserve Fund. from which the City shall make payments of the
amount of any delinquent assessments levied in the proceedings and interest thereon, for
lranSfer Into the Bond Fund for the Bonds Issued in lhe proceedings. Payment from the
Reserve Fund shall h« deemed an advance to h« reimbursed and deposited in the Reserve
Fund from the pr~eds Qf redemption Qr sale of the properties with respect to which
paym~nt of delinquent assessments and imerest thereon was paid from the Reserve Fund.
The Reserve Fund shaH be held and maintained by the Director of Finance as a
separate trust account, disHnot from all other funds of the City. Upon receipt of the
proceeds of the sale of the Bonds, 311 amount equal to five porcent (5%) of tho original
"",,,gale principal amount of Bonds shall be dopesi,ed in the Reserve Fund.
Moners in the Reserve Fund may be invested as provided in the Resolution and any
~l'«t earrungs from such investment will be transferred to the Bond Fund to make the
annual payments on the Bonds. Whenever the amount in the Reserve Fund is sufficient to
re<!eem all of the outstanding Bonds it shall be used (or that purpose.
Covenant to Commence Superior Court Foreclosure
In the ellent any assessment instaUment is not paid when due,. the City Councii may
order the institution of a court action to foredose the lien of the unpaid assessment. In
such an action the [eal property subject to the unpaid assessment rna, be sold at a judicial
forecIosure sale.
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The foreclosure sale pnx:edurt is not mandatory under Bond Plan G; however, in
the ReJOlution, the City covenants witb tile owners of the Bonds tIlat in the event tbere is •
delinquency it will, within 150 ~ays following notWeation to the Director of FinlUlcc by the
County Auditor, commence courl foredosure proceedings upon any and all delinquent
assessments..
THE DISTRICT
Description of the District
The District consists of 149 parcels of land, Itl of which will be assessed. The
District Is a 10 block area located in aDe of Ibe two downtown CODtral business districts in
the City of Palo _.o\1to. The orber central business district In tile Ci'l' is the University
Avenue area. The District consists of appra><imat<ly 200 small busmesses, banks and
prof~ionaJ centers including some of the (Gliowing: Allstate, Kinko', Copies, Bank of the
West, Round Table Pizza, Sonia Clara County Courthouse, U.S. Post Office, H&R Block
and San Francisco Federal.
Property Ownership Within the District
'APPENDIX A -THE DISTRICT -Fiscal Year 1993/94 Assessed Valuation Table"
includes the assessment number, assessor's parcel number, property owner, 1993-94 ftSCal
)'et\t County <If Santa aarn As~SS<lr'. value of land and impro"ments, total assessed
valuation and eotimated annual assessm~nl lien for the 11 1 (a,-...e.ssed) parcels of land
within tile District Within lb. District there are 96 different property owners of the 111
(assesnd) parcels ofland.
Priority Lien
The ....... ment (and any reas .. ssm"nt) and each installment wereol and any
interest and penalties thereon constitute a lien against the lots and para:1s of land on which
they were imposed until the same is paid. Such lien is subordinate 10 all fIXed spedal
assessment liens previously imposed upon tbe same property. but has priority over all
existing and future private liens and over all fixed SpeCial assessment liens which may
thereafter be treated agair.st the property. Such "en is co-equal to and indepenrlent of the
lien for general property tax ...
There are !WO prior outstanding assessment bond issues ("Prior Bonds"), in the
8ggree.!\~~ principal amount of SI,36O,ooo, which remain outstanding and which pertain to
the . omi. Avenue Parkin~ District as the result of the development of parking
improvements. These liens (,Pnor I.Jens") are senior to the lien for the California Avenue
Parking Assessment District No. 92-13. The information regarding the bond issues are as
follows:
Bond Issue
1975 Parking
1986 Parking
Ikmd
Plan
G
G
Year of
Retirement
1976-2001
1988-2007
7
Rates of
lntere!:t
7.00-7.50%
9.25-7.50%
Amount of
Original
Issue
S 420,000
1,325 000
$1,745 000
Outstandi ng
Balance
June 30, 1993
5230.000
! !3QOOO
SI 360000
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Assessed Valuations
Acrording 10 the County o( Santa Clara Tax Asso,"or', Office tile fiscal year
1993/94 assessed valuation of land for parcels within the District wbich wiU be QS5essed
(for the Project) is 523,754,754. The ... essed valuation of improvements are $41,231,632.
Therefore, the total fiscal year 1993/94 assessed valuation of land and improvements for
P1IJUIs withlo the Disl!ict whkh will b. assessed is $64,9B6,386. Uens on lb. property
with!n Ill. Distric~ including the Pnor Uens, 10121 $3,415,000. Therefore, the value to lien
ratio (or all lb. properties assessed within tile District i3 19.m:!. For aduitiooal
information on the assessed valuation of parcels wi!hin the District sec APPENDIX A •
lHE DISTRICf.
Tax Delinquendes
A review of the County of Sanla Clara'. lax colieclion records on Oclober 15, 1993
revealod that of the 111 parcols wllicb will be assessed (or the Project, ",0 parceis have
oulSlanding tues and (Pnor Liens) assessments. The following tal>le presents the finding'
and the amount of the delinquent assessmenlS:
Assessor'5
Parcel No,
124-32-046
124-37·028
Delinquenl
Assessments
522,293.48
$148.83
Tax
ycarls) QclinQ'1ent
1988-89, 1989·90, 1991-92, 1992·93
1990-91,1991-92,1992-93
As. reqWred by rovenants for the Prior Bonds, the City has initialed actions leading
\0 [""eclosure against the delinquent properties. All olher prim year's taxes and _"Is {or all other parcels which will be .. 'sessed [or the Project have been paid
.current
Procedure lor Le.,. of Annual Assessments
The formula to be wed in determining the annual apportionmeni of benefits in tlIe
levy of annual assessments upon the real property within the District is the weighted
assessment formula developed as par! of tb. 1983·84 California Avenue Study by Ihe
<Ol1SUlting firm of An$US McDonald & Associates working with property owners in tlIe
Dislrict. The formula IS based upon three main points:
1. A pra!,erty's major benefit is Ihe value of Ihe number of parking space ..
whlcb 11 does nol have to provide on-5ito.
2. Not every parcel's parking demand conforms exactly lO the a\'Cra~e;
therefore. a moderating element which considers the total size of the parcel
i3 justified.
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3. Properties that have be,~n in the Dis.trict for a lo.nger time ha'Vt been paying
more for the benefit received, and such past payments should be tak.en into
consideration.
A I;'roperly's major benefit from th. District i, the value of the: Jmber of parking
spaces whJcb it does not have to provide on~site. Therefare~ the 3.S5essmenl is based on the
number of spaces. Since not every parcel's parking demand conforms exac~y to the
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average, a mooeratio)! element is juslilied which considers the total size of the parcel.
Fwtbennore, properues thnt have been in the Disuict for longer bave been paying more
for !he benefit received. These past payments are taken into consideration.
A parcel'. parking defidency (or its burden on tbe District) is calculated by dividing
the gross building square footage by the number of square feet ~er parktng space
designated for that use. Subtracting Ih. number (if any) of spao.s provIded Qn~site, leaves
the number of spaces which the District must prOVIde.
The m!lthematical concept of d.i:;counting (which reflects the compounded irnpaclS
of iDllation) is used as the first step in valuing past payments made to the District. While
!he actual calculations are complex, the underlying concept is simply that a dollar received
at some fune in Ibe fulure is worth less thnn a dollar received today. The base year was
taken as 1968, which was th~ first year of G Bond payments. (Si"et the E Bonds apply 10
all properties on the basis of .assessed pro'pe~ value, it was agreed that no adjustment was
necessBl)' for payments towards these bonds.)
Psst pa~ments toward the G Bonds were further weighted according to the dollar
amount of the District's bonded indebtedness in each yeai. and according to the spread of
the-burden. The total bond amount was used as a su rrogare for actual annual p2yrnents, so
tllal !he weighting SYStem is consistent throughout The District', total parking deficient)' in
each yew: was used a surro~ate [or actual a$Se,sable square feet under the G Bonds, in
order 10 be consistent over urn •.
Combinlng the discounted value of a dollar in each year with Ibe bonded
ind.btedn .... and spread of the burden [or that year results In a series o[ weights. The
earlier a de.elopment .taned paying into L~e G Bonds, the lower the weighl assigned. The
weight is carried by the property, not by the owner, so the weight js nOl revised if a property
cbailges hands. If a development bas been expanded or olhe",;'. modified since payments
began. lb. appropriate weight is assigned to each phase of tbe development. If a change in
use increases Ibe parcel's parking requirement then its assessment amount increases. The
larRer lb. amoun t of a new bood issue, tbe more equal are the weights assign.d to botb
olaer and newer developments.
The weight is multiplied by the PaIco]'s parkin~ deficient)', resulting in a weiibted
assessment (aclqr [or each parcel which is equivalent 10. function to the "assessable square
feet" used in Ibe existing G Bond formula.
The District's sum of weighted assewnent factors is divided into 75 percent (15%)
of the armual assessment amount to give the ".rkin~/use assessment rale. The square feet
of land in Ibe Districl are summed and divided mlo 25 percent (25%) of Ihe annual
assessment amount to give the land assessment rate.
The amount raid by each paIcel is its weighted a .... ,ment [actor (paxking
defidency multiplied "f the weight) multiplied by the parking/use assessmenl rat •• plus its
land square footage mUltiplied by the land assessment ,al •. 13ach property pays according
10 its share oE the lotal number of parking spaces which must be provided by the District,
moderated by its share of the total land !lrea In the District.
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The£ormul. is 115 follo"",
where,
[Parking deficiency multiplied by the weighl represent'ng Ihe year of the first i>iITSO' inlo Ihe G Bond} all multiplied by the parking/use assessment rale
the land square footage mUltiplied by the land assessment fate].
Parking deficiency equals {gross building square feel divided by the number
of "Iuare feet per parking space for that build log use) minus the number of
parking spaces provide d on-sile.
The ~ression ( ) yields Ihe cumber of parking spaceS required by Ihal parcel.
The ~ression [ I yields Ihe weighted as.essmenl factor for each parcel. Summing
these facton gives Ihe lolal weight factors for Ihe DiJ;tricl. This lotal IS divided into 15
percent of the assessment amount to be nbed, yielding the parking/use asse53ment rate.
The advantage of Ibis formula is Ihat it relates the assessment amount directly 10 Ihe
number of 'paces which a parcel wvuld have 10 provide on .. ile if it was Dot in the
assessment district, while recogni.ins the real valoe of past payments toward those spaces.
Including land in the formula .<:IS as a moderatiog element for actual parking needs as
opposed to average requirements, and moderates the imp.cls vi tbe weighting sylitem.
Without land in the formula, the 'hare of the annu al assessment pald by newer
developments would be higber. mainly because they are more intensely developed.
Adoption of this formula ensures consistency throughout the recommendations.
The District's total =15 are related to the number of parking spaces required and
provided. This formula assesses properti" in direct relation to their impact on the District,
and belps to equate benefit received:
Several features of the method of assessment that warrant emphasis include the
foJlowitlg:
1.
2.
3.
4.
Parking reqUirements based upon fi~ures prepared by Wilber Smith &:
Associates and further revued by the fatest Off·Street Parking and Loading
Regulations Chapter 18.83 of the Code are used in the asse~'ment formula to
establish the number of parking spaces required for each parcel.
Properties that are exclusively residential are exempt from any assessment, as
long as such properties mee t the Ci ty's parking requiremenL
Church-owned property llsed for relig..taus purposes, and contiguous church·
owned property used for staff resioences, are exempt flam assessment.
All lands owned by any public <ntiry, indudi.11\ the City of Palo Alto. Ihe
County of Sanla Clara, the StzLe of California, and the United States, are
omitted from assessmenL
A more detailed discussion of the revised Parking Assessment District 92·13
weighted assessment formula along with background information concerning its
development is included in the California Avenue Parking AssessmeU! District No. 92·13
Final Engineer's Report (October 1993) and the Assessment Formula Technical Report
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(October 1993) prepared by Angus McDonald & Assodates for the City of Palo AlIO, A
copy of !he Final Engineer's Report and the Technioal Ropo" are avai!ahl .. at the office of
the City Oork (7th floor) and the Public Works Departmen~ Engineering Division (6tb
Floor), Ciry of Palo Alto, City HaJl, 2S1) Harrtillon Avenue, Palo Alto, California 94301-
Annual Debt Senice
The following table sbows the schedule of annual debt service of the Bonds.
Year
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
200S
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Project Description
TAlILE 1
CITY OF PALO ALTO
Annual Debt ServIce
Interest
Principal
MalurL."18
September 2
$ 55,000
55,000
60,000
60,000
65,000
70,000
70,000
75,000
80,000
85,000
90,000
95,000
100,000
110,000
115,000
120,000
130,000
140,000
150,000
160,000
170,000
TIlE PROJECT
TOlal
Debt
Service
The Project consists of t.~e construction of a two-level, public parking structure,
upon th~ site of City Parking Lot 3 located on Ihe soulh side of Cambridge Avenue,
between Birch Street and New Mayfield Lane, The struclure is approximately 54,964
"""",e feel and contains 186 vehicle parking 'lalls, The parking struclure will have urick
veneer facades and planlers along exterior walls, The Project will include Ih. cost of aU
required and related acquisitions, demolitioD, remoyal of debris, installation of conforming
street and sidewalk improvements, utilities, .ig05 and appurtenance.,
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Estimilfed Project Cos Is
The table below summarizes the estimated acquisition and corutrvcrion costs, and
incideJllal costs to implement the Project. Also included in Ihe Project costs are estimaled
costs for preparation of the conslIUction documents and the incidental costs associated with
the ihsuance of the bonds. Including bond counsel and financing coruultant fees.
Englnt'i:r" COS! Estimate
L Total ConslrUction Cosl w/15% Contingency
II. Project Managemenl and Engineering Administration
m. Costs of Lssuance
IV. Reserve Fund (5%)
V. Underwriters Discounl (2.0%)
VI. Capi!alized Interest {9 months: 12!93-9/2/94 (65%»(4.875%)
PAR AMOUNT OF BONDS
TAXMATIERS
$1,294,000
450,QOO
66,970
102,750
41,100
S2.055,000
In the opinion of Jones HaJJ Hill & While, A Profe<.siona] Law Corporation, San
Francisoo, California, Bond Counse~ subject, however to Ibe qualifications set forth below,
undu existing law. the inleresl on the Bonds is excluded from gross income for federal
income \ax pUlJ'O"e5, such interesl is nol an item of 14. preference for pUlposes of the
Cedotal alternative minimum IlIlr imposed on individuals and colporations. provided,
however, tha~ for the purpose of computing the alternative minimum \ax imposed on
corporations (as defined for federal income \ax putpOses), such inlerest is taken inlo
account in determining certain income and earnings., and the Bonds are "QuaHfied uu:·
~ropt obJigations" within the meaning of,eclion 265(b)(3) of the Jnlernal Revenue Code
of 1986 (lbe 'Code") such tha~ in Ihe case of cerlain financial institutions (within the
meaning of seclion 265(b)(5) of the Code), a deduction for federal income lax pu~es is
allowed for 80 percent of that ~r!.ion of such unanciaT institution's interest expense
anocable to interest payable on the Bonds.
The opinions set forth in Ibe preceding paragraph are subject to the condition Ibat
the Oty comply with all requirements of the Code tbal must be satisfied subsequenl to lb.
issuance or t6e Boods in oraer that such interest be. or C'Onfinue to be. excluded from gross
income for federal income lax purposes. The Oly bas covenanled to comply with each
such reqwremenl Failure to comply with certain of such requirements may cause the
inclusion of such inlerest in gross income for federal income \ax purposes to be retroactive
10 !be date of issuance of the Bonds. Bond Counsel expresses no opinion regarding olber
Cedotal WI: consequences arising with respeci to the Bonds.
12
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Prospective pu!cbasers of tbe Bonds sbould be aware thaI, under existing law, for
the purpose o! computing the 20 pertent federal alternative minimum tax imposed on
corporations, an amount equal to 75 percent of tbe amount by which adjusted curr~ot
earnings e:<ceed alternative minimum taxable ;"come is added to alternative minimum
taxable income. Interest otberwise excluded [rom gross income, such as ir.terest OD the
Bonds, is included in a.djusted net book income and in adjusted cuneot earnings.
Prospective purchase" of the Bonds should also be aware that (i) with r"peet to
insurance companies subject to tbe tax jrnposed by section ~J] of the Code, sectiun
832(b)l5)(B)(i) of the Code reduces the deduction for loss rese,..,es by 15 percent of tile
sum ot certam hems, including interest on the Bonds, (it) (ur taxable years. beginning
before Janu",)' 1, 1996, interest 00 the Bonds earned by some corporations could be subject
to Ibe environmental tax imposed by section 59A of the Code, (WI interest on the Bonds
earned by certain forei~ C'orpClfations doing business in the United States could be subject
to • brancb profits tax .mposed by section 884 of the Code, (iv) passive investment income,
including interest on the Bonds, may be subject to federal income taxation under section
1375 of lb. Code for Subchapter S corporations Ihat have Su;'cbapter C earnings and
profits at the close of the taxable year if greater tnan 25o/c of the gros! receiflS of such
Subchapter S corporation is. passiv~ tnves.tment income and (v) section 86 0 the Code
requires recipients of tertain S<>Cial Security and certain Railroad Retirement benefits to
take inlo account, in delermining the taxability of such benefits, receipts or accruals of
interest on Ibe Bonds.
(a the further opinion o( Bond Counsel, intert"st 'On the Bond~ is exempt from
California personal income taxes.
ABSENCE OF LITIGATION
No liligation is pending or threatened concerning the validity of tb. Bonds. There is
no action, suit or {'ro<:e.ding known by tbe City to be pending at the present time
restraining or enjoiruDg the delivery of the Bonds, or in any waj conlesting or affecting the
validity of tbe Bonds or any proteedings of the City taken WIth respeet to Ibe execution
thereof. A no litigation certificate executed by tbe City will be delivered to the
Underwriter simultaneously with the delivery of the Bonds.
LEGAL OPINION
All pro<:eedings in connection with the issuance of the Bonds are subject to the
approval as to Ibtlr leg.lil)' of Jone. Hall Hill & White, A Professional Law Corporation, san Fmncisco, California, Bond Counsel for the City in ronnection with the Assessment
Distrkt. The unqualified opinion of Jones Hall Hill & Waite, A Professional Law
Corporation, San Francisco approving the validity of the Bonds will be printed on each
Bond. Bond ('.<lunsel's employment is limited to a review of Jegal procedures required for
Ibe approval of the Bonds and to rendering an o,Pinion as 10 the validil)l of the Bonds and
the e.emption of interest on the Bonds from mcome taxatioD-In tnat capacity, Bond
Counsel's ,eview with re.lpect to Ihis Prelilninary Official Statement has been limited to •
review insofar as this Preliminary Official Statement purports to present an acclrale
5UJ1lJJlaI'y of certain provisions of the Bonds, the resolutions referred to therein, and Bond
Counsel's approving legal opinion, for the purpose of ascertalning whether this PreHminary
Official Statement represents an accurate surrunary of such provisions. resoJutions, laws
and opinion. I
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UNDERWRITING
• Underwriter of the Bonds, has purchased tbe Bonds from Ihe
City al".~p:::u::r"'Ch"'as=e-;:p"'n"'ce:;-equal 10 98% ollhe par value of the Bonds. The public offering
pritos may be changed from lime 10 time by Ihe Underwriter. The Underwriter may oUer
&nd.seD Bonds to certain dealers and others 'It a price lower 'han the offering prices staled
on the <oyer page bereof.
NO RATING
The City bas not, and does not contemolate making. application 10 any raling agency
for tbe assignment of a rating 10 Ibe Bonds. •
ADDmONAL INFORMATION
Any .!atements in this Preliminary Official Slalement invohing malters of opinion,
wbether or nol ""pressI,Y .0 slaled, are intended as such and DOt as representations of fact
This Preliminary OffiCIal Slalement is not 10 be col!Slrued as a contract or agreemenl
between tile City and the purchasers, holders or owners of any of the Bonds.
The e.o:ecution and delivery of this Prelimin",), Official Statemenl by the Mayor and
the City Manager of the City, have been duly aUlhomed by the City. Concurrently with tI,e
delivery of the Bonds, the City will furnish a certificale execuled on bebal[ of Ihe City by
tbe Mayor and the Citr Manager 10 tbe erreclthallhis Preliminary Official Slatemenl as "f
tbe date of the Prelim,nary Official Statement and as of the dale of delivery of the Bonds,
does oot contain any untrJe stalement of a material fact or omil to state any material fact 'De"" ry to make the stalemenlS herein, in lighl of th. drcumslances under which they
were made not misleading.
CITY OF PALO ALTO, CAUFORNlA
By: ~~~I~a",y~or'--------------
By: '-rC~II~Y'M~an~a~g~e~r-----------
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LEGEND @~ C§@ @®
Assesstnfml Districl
Boundary _______ _
@ Assessor's Parcel Number
@ Diagram Assessment Numbf"'r
m AS'sessor's: Page Number
Note: The District is
contained in
A5ses.sor's Book
Nutnber 12~.
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EX~rBIT B
AsseS!fm("nl DiagrBJn
Gnd Boundary Map
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Calir AVe Parl.:ing Struclure~~-",===~
A5'~eS5ment Disttict 92-13 w-_ ...
efn OF' PALO ALiO -I" r,":h.m-CALIFoRr-HA ~WK'ra !Ow It~
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DESCRIPTION OF ASSESSMENT DISTRICT BOUNDARY
The ClIterior boundaries of tile ale. benefited by the proposed projo ct to be accomplished
by the California Avenue Parking Assessment District 92-13 are sbo .... n on the Assessment
Dillgram and Boundary Map and described as follows:
BEGINNING at .. point on the northeasterly ~ne of El Camino Real, said poi .. : being
120.00 feet easterly from Ihe poinl of inlersection thereof with tbe southeasterly line of
Sbennan Avenue;
Thence leaving said northe ... terly line northeasterly, parallel to Sherman Avenue 435.63
feet;
Thence northwesterly, parallel to said northeasterly IiDe ofE: Camino Real, 24.00 f.ot;
Thence northeasterly, parallel 10 Sherman Avenue, 146.00 feet to a pcint in the centerline
of A5b Street;
Thence southe ... terly, along .aid cenlerline, 19.00 Ceet;
Thence northeasterly, parallel to Sberman Ayenue, 377 feeL! 10 • poinl in the centerlino
of Birch Stre.t;
Thence southeasterly, along said I ... t narned centerline 6.00 Cee~
Thence northeasterly, parallel 10 Sherman Avenue, 426.57 reet to a point in the cenlerline
of Park Boulevard;
Thence D<Jr\hwesterly along said last named ':entOfune ISO.OO feet to the intersection
thereof wilb the centerline of Sherman Avenue;
Thence northeasterly along &aid last named cenlerline 125 feel.±. 10 the point of
inlersection thereof wilb the soulhwesterly rigbt-of-way line of the Southern Pacili<
Railroad;
Thence northwesterly along said last narned righl-of-way lin. 353 reet.:!:. 10 a point in the
cenlerlinc of Califolrua Avenue;
Thence northea:;lerly along said last named centerline 75 feet.±. to Ibe point of intenection
thereof with Ibe centerlin. of Park Boulevard;
Thence northwesterly along said last named centerline SOO reel.±. to a poiot on • line
whicb is parallel tOo and distant 135.'11 feet noriliwesterly from. measured at right angles to,
the northwesterly Jlne of Cambridge Avenue;
Thence southweslerly, parallel 10 CambriGge Avenue 167.79 feet; thence southeasterly, at
right angles 35.71 feet;
Thence southwesterly, parallel to Cambridge Avenue, 1J57.30 feel;
Thence northwesterly, al right angles 134.05 reet to a point on Ibe southeasterly line of
CoUoge Avenue;
A-I
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Thence &Olltbweslcrly, along .aid 1 .. <1 narued line, 245 feel.:!; to the point of intersection
thereof with the northeasterly line of EI Camino Real;
'Ibence southeasterly along said northeasterly line 1093 reeli 10 the Point of Beginning.
SaId District Is Jbown on attached "EXHIBIT B", and made a parI hereoL
Containing an area of 34.7 acres, more or less.
A-2
•
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DESCRIPTION Oi' PROJECI'
The CaliCornia Avenue Parking Structure comi.ts of a two-Ieyel (ground plus one
story above) pubUc parking Slructure in the California Avenue Business DlSlIiCl-!'rescnlly,
the designaled site, located en the south side of Cambridge Avenue, between Birch S~Teel
and Nogal Laoe, is n=l'ied by City Pa.::king Lot 3, which encompasses all of SonIa Oaf.
County Asse>!or'. Pucel Number 124-28·51. The proposed parking slIUcture will be
constructed to the properlY lines 10 allow for the maximum amou olaf parking spaces. This !<9U!red a zone change from PI', PubUc Facility and CC(2), CODlmuruty Commercial, to •
PC, Planned Community Diuric~ including zero lot Un. developmenL
Th. parking garage will be • concrele structure wilb three rows of concrele COIUITUlS
18 reet on <enter supporting Ibe second levet Oue row of concrete columns wiU be along
Cambridge Avenue, one a1on~ Now Mayfield Lane, and the Ibird row of columns will run
down the center of Ibe building. Concrete beams will span between the colum!1S
supporting the second level concrete slab deck. Addi lioeally, tbere will be a shear wall
al0'!ll!i'rnbridge Avenue and a sbear wall along New Mayfield Lane at tbe midpoint of the
bull' . Where the parking structure abu u. the post office and the hardware slare.
coDcr~te masoruy wal!s will be constructed. The proposed cilCterior of the structure
includes briclt veneer over concrete, pre-<ast architectural concrete panels with and without
inlaid brick, landscaped placler b01_es, and melaillellis &1 various locatioos. The planting
areas run almost the entire length of the structure, aiong Cambridge Avenue,
apprmimately 200 feet of the proposed 250 foot length. The CJ[ception is lor vehicle and
pedestrian aocess areas where no planlers will be presenL
The Cill"reDl aty Parking Lol 3 consists of a total of 90 parking s~3(es, which
includes 3 bandicap. 31 comp.c~ and 56 standard SlaUs. The proposed parking structure
will bave 186 public parking spaoes of which 88 will be standard, 92 will be compa~ and 6
will be handicap accessible spaces (include. 1 \02Jl a«-essible space). The ground leyel wiU
be approximately 27,400 sq. fl., consisting of 34 s\andard spaces, 40 rompacl spaces, and 6
bandicap accessible spaces. The second level will also be approximalely 27,400 sq. ft.,
consisting of 34 stand"ard spaces and 42 compaci spaces. The outside dime nsions of Ibe
buildinll will be approximately 250 feet by III feel, and the totlll square footage will be
approlWD8!ely 54,964 square fee L
A·3
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Flscal'{ 19'93-1Mo Au.u .. dValuat1on Table ....
Estimalt'd'
An&9lors Tot.1 Annual
A..~ .. amef't P...,III Plopel1y AsulSltd Valuation AsSHS&d Assessment
N<nnl>4f: Number Owners: Land' tml:!ro~ements. Valu.a.tlon u.n \11
1 124-026-002 Jack W Buktenlc8 Trust" $42.<'06 $67,101 $110.007 S6~9
2 124-028-003 PVO Real Estat. l-lold'lng' 1 nc $2S9,7B~ '0 $259,782 $ ....
3 124-028-004 Hy .. .., & Alice J Bolocan Et /AJ. ' .... 081 "02.144 $186.225 $898
4 124-028-050 Ctlmbridliil& Anoe~t" 250 $1.015,122 $4,205.637 '5.221,359 $7.845
S 1 24-028-· QQ9 Russ G & Bernice Y Nefstad Truste. '56,097 '37.439 $93,536 " ,216
6 124-028-010 lucft1. M Borg et AJ $50,968 $110.072 $161,040 $1,e22
7 124-028-011 JIO S673.699 $3.368,620 $4.062,319 S5,002 a 124-032-002 o J AlUiri Trusle. $45,302 $86,226 $t11,528 $965
9 124-032-003 Herman J & frma Buck '26.378 $184,487 $210,885 ",748
10 124-032-005 JIlIllQI H Jupun $67.824 $140.988 '206,812 '2,895
11 12~-032-006 Ja'11l!t ri Jppsen $45,302 '200,559 $245,861 $2,367
12 124-032-001 Chi-Un &. Elaine C Yen Trusts. '250,000 $591,000 '841.000 $2.367
13 124-_-008 Luc::colnc $54,354 $16,785 $71,14. $717
14 124-032-009 '3reenwcod Partner. tne $430,229 $226,164 $656.993 ",695
15 124-_-010 Mleha-' J & O!'".: II. Girvin $45,S02 $206.174 $253,476 $1.249
16 124-032-011 GeQrge & Marian Montroun Truslf. $4S;:!02 $39,838 sa5,140 $954
17 124-032-012 BlinN Sehmlz $65,159 $41.839 $106,996 $1,814
18 124-032-013 Conege Ave MeUlodisl ChUf;:tl-PA NA NA NA ~O
19 124-032-021 Math. Episcopal Church Personage IIA NA NA $0
20 124-026-020 MetnDdisl Olll""n NA NA NA $0
21 124-002-019 Gal H l San F Ct'lH Trustea $66,760 $56,166 $123,526 $1,488
22 124-032-018 Wanat llun $59.430 $4,256 ~,S86 $494
2lI 124-=-017 WangL Tzu" $36,239 '30,510 '00.7'9 '745
2' 124-032-C16 Wang L TZLln $52,254 $78.059 $130,313 $530
25 124-032-015 Sophia L & Wilson TWang "62,578 $336,491 $499,069 $2,547
:!6 U4-032-0V. Sapo1& \. & Wibon T WaI\g $33.976 $0 $33.916 $202
27 124-032-049 Harman-Managers Inv me $65,692 m.611 '158,303 ",572
28 124-032-043 Peslita M !Rasmusson Trust •• El AJ $55,963 $21,714 ;n.S77 S515
29 124-032-047 ',,"insula Volunteers Inc: $41,970 "02,20S $1~,116 $1,522
30 124-032-046 WlJlery OfrtCe Bldg-Land Only Et /IJ $1.541,S66 $3,256,791 $4,798,463 $4,371
31 124-032-045 Henry & Margarelha Meffert Trustae 5384,271 $93MeS $1,31.,339 $5._
32 124-032-(144 John E & Edwina M Simonie $430,22. $675,224 $1,105,453 $2,712
33 124-032-043 Be ... ~rly & A.."1lhcnyJ Kozy $527.243 $158,237 $585,480 $1,115
34 124-=-042 Edward l Ci~mo",di lru$\ee $296,771 $46,009 $344,780 $335 as 124-032-041 Earth Sign Natural Foods. Company $459.472 $215,950 $675,422 $2,004
as 124-03'2-051 Ellts L & Janina l Jacobs 529,177 S93.011 $122.186 ".227
37 124-032-052 Pacirlc InllHtors Partnership $467,500 ~07.500 $875,000 $1,628
38 124-032-054 J W & Oa"y J Sac. B .AI $71,653 $205,773 $277,628 $809
39 124-032-0S6 Famny Srvc AJ;," 0' Mid-Penlnsur. $50,765 '222.031 $272.796 $1,068
4Q 124-028-006 Una Gucker Et AJ $77,021 '30.214 $107.235 $2,648
41 124-028-048 Mary lll11daU', Trus! .. $41.433 $41.305 $82.73. $617
42 124-028-047 Mssy landau, Tru'l~" \2) \2) \2) \2)
43 124-028-045 pva A~al Es1ate Holdings Ine $1,363,864 $4,'32,972 $1,796,836 $4,184
44 124-028-027 200 Carrfomia Associates $539,879 $478,998 $1.018,877 $2. il3
45 124-026-028 Miramonte Mentai Heali" Sa,....., Inc t400.000 '600,000 $1,000,000 '2,056
<6 124-028-029 T~ N A M'3lcia M Shuchat $4{lS,OOO $714.000 $1,122,000 $1,708
47 124-028-030 Terry N & MardI M Sh U'c-n at $408,000 1714,000 $1,122,000 '1,708
48 124-026-031 AIdeI'! l & EliLabell1 l Herbert Trustee . )4,094 $48.899 $112,993 $461
49 124-028-03'2 Bemnard & Charlone La 2ansky e-t AI $51.231 $0 $51.231 $67
50 124-028-1Y.l3 Bernhard. & Charlotte la Zansk:l El AI $640,45& $12,506 $e53 ,264 $5,291
51 124-028-034 T erfjl N &. Mafl:ia M Shuchat $151.91e ",235,207 $1,387',125 $4,738
52 124-028-035 Sieve & Maderl"ll!' Toy $157,661 ,,6.82. $236,490 $492
$3 124-032-034 CallfomTa Prep My Partners $1,012,391 se89,185 $1,702,176 $4,055 . ; .. ~;~ .. Oi-M~"o"'"
•
. ___ ._~""",-i""'''.,4 ---,.........",...,... • '<>:~--'''-'>
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64 12'-032-035 Trust Fumrl'lnc $134,824 $96,211 $230,535 $2,200
65 1 24-032-03CI elWin A & Ruth E" ORvld50n in/5lH $72,089 $62,759 "34.648 $\,812
56 1:/4-032-031 Bing T!r; May S Mock Trust". '70,756 $226,896 $297,652 $3,245
6T 124-032-_ Stan~y elshop Corp $59,430 $67,556 SI26,968 $1,446
68 124-032-039 Klmneth N Thomas Trustee & Et AI $69,318 $46,"0 $115,756 $1,552
59 124-032-040 09lllb Partners $18l,9!I 1 $249,335 $433.236 $1,969
eo 124-033-061 SF f.d"'111 SavIngs & Loan Assn $14->,855 $434,977 $579,832 $1,457
81 12.-033-008 Malmgren P (cpertlgs No 2lP '186,100 $111,138 $297,838 fI.l06
62 124-033-012 J'Os'"ph & Mary Kovarik Trustee $26,110 $42,369 $68,479 $1,020
83 124-033-013 'Thoma. NT a1bon: EI AI $376,450 $5,973 $382,423 $1,2'3
64 124-033-014 Thew & Nancy Lew $61,958 S51,3OO "13,258 $995
65 124-033-015 Helen Wadowsk! Trustee $49,433 $11,320 $J;0,7S3 $625
66 124-033-018 Edw'ard P Ames Trusle" $51,8" $20.~69 '72,083 $5i4
6T 124-033-017 Wells Fargo Bank NA Tf\lslee $2&6,323 '324,559 $580,662 $1,667
68 124-033-01 B Frieda M Danllils et AI $146,456 5123,021 5269,477 $230
69 124-033-019 Mohammad M Jamn $351,789 554,121 $405,910 St,435
70 124-033-020: Vera Leung TrustH & Et fJ.J. $18,914 $22,647 $41,561 $658
71 124-033-021 Pt1Uippe G Lehot $51,157 $107,546 $158,713 $1.723
72 124-033-022 Ph81pp9 G lehol $166,579 $196,493 5363,072 $1,296
73 124-033-023 Philippe G lehot $58,7S7 $0 '58,767 $101
7. ~24-033-024 Phlf~ G lehol $14,&111 $0 $14,518 $156
75 124-033-028 Everyn T & Warren W Wen b' $331.223 593S,467 $1.269,690 53,257
76 124-033-027 Slanf9Y B.is.hop Corp $41,036 $139.255 $180.291 S1,n6 n 124 -033-_ Eileen M Stevens TrustH & Et Al $403.273 $69,245 $472,51B $1,_
78 124-033-090 SlanleV Bi<hop Ccrp $66,226 $142,854 $209,060 $2,155
79 124-033-001 o H& MA Edward. Co $118,066 $71,024 $189,090 $1.749
80 124-_-005 Callfomt.-Bircf'l Associates Et AI $1,085,;57 $2,036.802 $3,122,359 $4,362
81 124-029-_ Cl>oJfie Jr & Mary Q Chu Tru,l .. $52,254 $198,585 $25a.a39 $1.752
82 124-_-021 Tung S 3. Ung l Chiang $487,093 $487,093 $9704,186 $2.151
83 124-029-022 Terry N &; Marcia M Shuch.: $487,093 $497,705 $964,798 $2,151
84 124-0211-007 Ouca & Hanr.y Proplrrtin Inc $107,406 $128,730 $236,136 $2,470
85 124-029-001 OQ,nald C Bolander Trust •• &. Et AI' $40,772 '61,029 $101,801 $1.£,28
ill! 124-029-002 Alois A & Marthlill R,aymann: TnI$lH $S9,2~2 $162,601 $221,523 $2,127
87A 124-037-002 VViliam J, Hurwlek Et AI $93,728 $235,501 $329,229 '21,
67B 124-037-003 Miarr, J. Hurwlck El AI $82,013 5196,834 $278,847 $42
B7C 12'-037-004 Stephaokl Grossman Et AI $71,764 $122,550 $194,314 $42
870 12'-037-005 JayC9 Steinfeld Trustee '2',600 $61/,12' $93,724 SIS
87E 12'-037-006 Roland N Kumagai 581,161 $193.75. $274,935 $53 e7F 124-037-001 Ken Kate $81,181 "97,COI $278,182 $53
87G 12.-037-008 Mark 0 Mickelson "'A NA NA $0
87H 124-037-009 MJchael J Hale & Michalem, BuskO' NA NA NA $0 an 124-037-0\0 Essex California pa1ners NA NA NA $0
67J 124-037-011 E$$ex Califomi'J. f'artn&!1 NA NA N,A. $0
!17K 124-037-012 Robert JMarine EtAJ NA NA N,A. $0
87l 124-037-013 LouisWilk NA NA NA SO
87M 124-037-01' I-Oelill Chang & H Ww-Xay $92,343 $166,£70 5259,013 $132
8m 12.-037-015 Clau.s H Shetling Trustee $105,140 $202,405 $3Q7,545 $50
870 12'-031-016 Teru Harada $86,593 $193,754 $280,347 $54
87P 124-037-017 William P NaiOrtch Trustn $96,072 $2 4 5,459 $341.531 $53
870 124-007-018 Barry J SarDIS NA NA N.A. $0
57R 124-037-01. Edith HomOf NA NA NA $0
87S 124-037-020 k:hlrc Kubota NA NA NA $0
87T 12.-037-02 t James J Lemen NA NA NA SO
B1U 124-037-022 (3.1 Jack~on Sae,l.g $171,151 $257,300 $47
S1V 124-037-023 Kumar & Nucci Patel $81,871 $222,612 $310,483 $49
87W 124-037-024 Essex Caljrornia PArtners NA NA N.A. $0
87X 124-037-025 UndaGates. NA NA NA $0
8TY 124-037-028 Es!;.!!'x Califom" Partn1!lS NA NA NA $0
IS7Z 124-037-027 Oonald T & Nancy E Din $ mer. NA NA NA $0
87M 124-037-028 Donald Oougfu EI AI $175,352 $325,811 $501,163 $64
. ",--' .', --
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i 1""\ ~ 6788 124-037-029 Nonnsn Jo"traub ..If Et AJ $115,991 $2S',881 $401 ,87~ $149
8100 124-037-030 LrArllo C & Jo .. phrn. L Montoya 571.467 5176,918 $248.383 $38
I1IlO 124-037-031 J.eme. L & Ja.,..iee J Plummer 5101.931 $255.419 $357.350 $60
81EE 124-097-032 Jam" L & Janice J Plummer $109.122 $264.195 $373.317 $228
87FF 124-037-003 Franco}, P & Firoozth J Dum., NA N ..... NA $0
~ 8700 124-031-_ Essex C.rt1Dm~ Part."let"8 N ..... NA NA $0
67HH 124-037-035 Erin A Fly.n NA NA NA $0
87U 124-037-038 Felix S H81J NA NA NA $0
87JJ 124-037-037 VIrginia l Mltu NA NA NA $0
87KK 124-037-_ George Schlsh.r & YVOI',"o Plndleton NA NA NA $0
87LL 124-037-039 St8\len F Goidbor; NA NA NA SO
87MM 124-037-04C Mark J & Hayley e Chamber. NA NA NA $0
87NN 124-037-041 MlKL .. NA NA NA $0
8700 124-037-042 Marl< Vormn .... NA NA NA $0
87PP 124-037-043 Chari" Brouss. $225,230 $SOO,nO $732.000 $1,616
88 124-083-026 Uno & Alfce Gll.slanl Trustee t,A NA NA $0
89 124-D:i3-025 Uno & Allee GuSianJ Trvslee $45.722 $13.OS9 5.8.781 $724
90 124-083-006 Fortuna Management 5307.793 $714.083 $1.021,878 $2,631
91 124-083-005 F_k J &nIh Ttv"H $90,481 $3n,328 $467,809 $i ,858
92A 124-036-WJ Brien C soOtho NA NA NA $0
S2B 124-036-033 Corinna Sotes,l NA NA N ..... 50
92C 124-_-034 _gory W K.rber NA NA NA $0
920 124-038-035 WlItam So NA NA NA $0
82E 124-036-036 Owtghl 0 Clark NA NA NA 50
92F 124-038-037 PAt«: ApaJimanl$lnc NA NA NA $0
92G 124-038-038 SyMa J Smltham NA NA NA $0
92H 124-038-0311 P_ABoa\1y NA NA NA $0
921 124-038-04C PAHC ApOllmonlSlnc NA NA NA $0
93 124-033-055 M.yWd A .. ocl&t .. $300,510 $817,919 $918,42' $8,596
94 124-03:1-047 EmHl W Schmldl '32,242 $120,732 5152,974 $1,252
95 124-033-048 Donovan NaaJet-May TJ1.islee & EI AI $375,000 $2,000,000 $2.375,000 52,980
96 124-033-065 Uno & Alice Gusfanl Truslea Et AI $156.031 $2,197,6.9 $2,353,690 $8,313
rn 124-033-043 Jaan & Annatte Blust $800,000 51.372,5SO $1,972.5SO $4,645
9B 124-033-042 ~Io V & Maria E Oofoo '584,513 $533,638 $I,I1B,151 $2,819
99 124-033-041 MaIm~ ~rop.rti .. LP $SO,899 $2,92S $53,822 $402
100 124-033-040 Ma1m~ ProJ>O'lle' LP 11B2S;7 ~18.!!lO 1§l!1,477 $1,091
Total 123,154 754 ~1,231 532 ~m '''83277
NA .., NotAsse •• ed.
(1) This II .. , es1mat, of the fiBt y~ar's annuaJ asS:Hsment en the properties within the OlslIkl Future
"'lssrnent!I may vary based on procedures for levyfng of annLlaJ assessments. See section herein
-Procedure fD!' Lwy ot AnnlJar Assessments",
12) I_d In _ .. ..,.,.nl No. 41,
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APPENDIX n
THE CITY OF PALO ALTO
Ceneral Descrlption
The City of Palo Allo is 1O<aled on northern Sanla Clara County (the "County">,
about 35 mil"" south of San Francisco and 15 miles norlhweM Qe Sail Jose. The City IS
adjacent 10 tbe San Francisco Bay to Ihe Eas~ and eXlends laterally <cross the San
Francisco renir.su!a, rising across an .Uuvial plain to the foothills of the Coast Range
Mountains. The City <:<Ivers an area of about 26 square miles.
Form or eo."""ment
The City was incO/porated in 1894 and has operaled as I charter city since 1909.
The City charter, adopted by the voters of th. City in 1950, has been amended and added
to from tim,e to time. Since 1953, Ihe City has operated un~er the Council·Manage, form
of government
The City Council consists of a Mayor and eight other council members, The council
members are elooted at large, for staggered four-year terms commencing January 1st of
even-numbered years. Each year in January, the City CcuociJ elects a Mayor and a Vice
Mayor from its members to serve for one year. Elections are held overy two years, in
November of odd-numbered years. The Mayor presides at all City Council meetings,
The City Msnager is responsible for tbe operation of all municipal functions .. cept
~ offic:es of City Attorney, City O.rk and City Auditor. These officials are appointed by
and report directly to the City Council.
AI a special.loetion beld November 5, 1991, the Citv eleotors approved Measure E
which amended the City Charter to limittb. number of conserudve terms for members of
the City Council. Effective January 1, 1992, no person would be eligible to serve two
consecuuvo full terms of office as • member of the City Counell.
Budgetary Process
Beginning Detober 1989, tbe City Council changed the City's budgetary s)'5tem from
an annual to a biannual basis. In accordance with guidelines prepared witb the City
Council', approval in December 1989, the proposed budget for the City for the two-year
period beguming July 1, 1992 and ending JUDe 30, 1994, w .. s presented to the City Council
In May 1993. Under the City's new budgetary system, the City Council reviews a two-year
5pendlllg plan and officially appropriates the first year and approves the second rear in
Principle, The second year spending plan was presenled again to tbe City Council m May
1993, along with adjustments required due to priority changes, new mandates, bealth and
safety concerns or significant cbanges in project COM estimates. lbe five year Capital
Improvement Program, which is issued as a separate document, is prepared on the same
two year basis as the operating budget.
The flSOOl year of the City begins on the first day of July of each year and ends on
the thirtieth day of June the following year.
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In order to prepare the City's two year budget, at sucb date as the City Manager or
her desi8nee det.lmin~5, each department head must finnish to tbe City Manager an
estimate of ~eDues and exoenditures tor such department for the ensuing two fLSCal years,
detailed in sucb manner a. may be prescribed bY Ibe City Manager or ber designee. In
pre'paring Ibe prop05ed two year bud~et, the City Manager or her designee reviews the
estimates, boldS conferences thereon With the re.s.pective depattment hea.!3s, and revises the
e.,limat .. as be/she deems advisable.
At least thirty days prior to [he beginning of [he first fi.cal year for which the two
year budget is being prepared, the Ci'Y MaDager submits 10 the CilJl Council Ihe proposed
two year budgeL The City Council determines a time for holding. pub~c hearing thereon
and causes to be published a notice thereof not less than ten days prior to tbe hearing da[e.
At thi£ bearing. the City CouDcil reviews Ihe budget and make such cbanges as i[ deems
advisable. Copies of the proposed two year budget arc a,ailable for il15pection by the
public in [be office of the CIty Clerk a[ Jeas[ [en days prior [0 the hearing.
At the conclusion of the public hearing, [he City Council further considers the
proposed two year budget a. .... d makes any revision thereof that it deems advisable. On or
before Iune 30 it adopts the two year budget with revisions, if any, by the aff((mativ. vole
of at leest a majority of the lo[al members of the City Council.
From Ibe effective date of lite tv.'a year budget, the several amounts stated as
proposed expenditures become appropriated [0 the .everal departments, offices and
agencies for the objects and proposes named provide~ that Lbe City Manager may transfer
t1ie appropriations of a fund from ene oDjec[ or purpose to another within !he same
department, office or agency. All appropriations lapse at the eod of [he related fISCal year
to the extent that they have not been expended or laWfully encumbered.
At any public meeting after the adoption of the two ve.r budget, the City Council
may make additional appropriations to the two year budget by motion adopted by the
affirmatlve VOle or al leas[ sxx members of Ihe nine tnember City Council. By a majority
yote, the City Council may lr1tnsfer by Drdinance pari or all of the unencumbered ba ance
of any appropriation from one fund, department, office or capital project to another.
No bonded indebtedness which .hall cons[itule a general obligation of the City may
be created unless .uthorked by Ihe .ffirmativ. action votes of two-thirds of Ihe qualified
electors and unless in full compliance with the prO\'1s[ons of the State Constitution. See
"CONSTI1U1lONAL AND STATUTORY UMITAll0NS ON TAXES AND
APPROPRIATIONS" herein.
The City Council employs an indef.enden[ cer[iIled public accountant who, at sucb
tim. or times specified by the City CouncI~ at le",t annually, and at such other times as be
sball determine, eJlllDlines the books and records of tbe City and sucb roporu of officers
and employees who receive, control, handle or disburse public funds as the City Council
may direct. As soon as practicable after the end of the fiscal year, a final audit report is
submiued by such accountant to the City Counci[ and a copy of the financial statements as
of the close of the fiscal year is publiShed.
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Adessed Val .... Uon and Property Taxe.
Tues are levied tor each fiscal year on taxable real and ~rsonal pro~rty which is
sit\l8ted within !he City lIS of the preceding March 1. For assessment and collection
p!lljlO5CS, property is c1assmed either as "secured" or "lIJISecured" and is listed accordin~y
on separate pa.J1S of the Bssessmen: role. The "secured toU" is that part 01 the assessment
roll cootainiTag Stale-assessed public utHity property and property Ihe laxes on which are a
lien on real property sufficient.., in the opinion of the County Assessor, to secure payment of
the lUeS. Other property is assessed on Ihe "unsecured roU".
Total estimated full market valuation in Ihe City inereased from $6.9 billion in 1991-
92 to $7.4 billion in 1992-93, an ieereas. of appro>Jmatelv 6.88 ~rcenl Such valuations
Include searred and unsecured properties assessed by th~ County Assessor, and secured
utiUty properties assessed by the State Board of Equalization. Such valuaiions are before
deduction of State·reimbursed bomeowner's exemption but exclude veteran, reHgiou5,
charitable, and other such nonrecoverable exemptions.
The table below shows a six-year history of Palo Alto's assessed valuation. Over the
last six years, the City's assessed valuation bas in"eased at an average annual rate of
approximately 7.45 percent
Fl!<:al Yt:&c
~
1987
1988
1989
1990
1991
1992
19S'3
CITY OF PALO ALTO
A.nand V.IUt' or TUilble Property
\hi LbOUbOds or danlllt'l)
A>s ......
YUvllionU)
S4,8M,I~S
5,162,625
5,339.581
5,664,1)61
6..501,913
6,949,(29
7,443.688
(1) !..eu. ~PtiOnJ. Begina.i.og: in r.lSC&l year 1989, (he Sia-te estabfuhed single wWlly-wide Lu: ute ar-cas
ror ccrtaio types of Statr; assessed UIWIY prop:tly.
SOurce:. thy of Palo Alta.
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The property Ill!! levies and lax colleclions for Ih. City are shown in th. following
table.
F"ua.! .x..r
1987
19S8
198\1
1990
1991
l'l92
1993
Total
:r...wy
.$6,762
6,sB6
6,869 7,sw
8,1.92
8,617
8,592
Clrt OFfALO ALTO
Pro~rty To: Le,hs be! ColI~tl Obi
(1111boUSladJ or dolllll1l)
Amount
CpDt;t1rdfl)
$6,748
6,S7~
6,887
1,512
8,109
B,5S5
B,361
(1) lDdudes deIia'lltCnf collections..
&iiiiai City or Palo All •.
Diced and O,.clapping Debt
Perce.a1a&e
Dclj'Wur;lII
2.16%
2.20;
2116
2.03
1.01
0.70
2.62
The following table sbows lbe City's direct and " •• rlapping bon~ed debt as of June
30, 1993,
CI1Y Of PALO ALTO
StltRlcol fir DInd aDd OYttIApplDc ~bl
M or JaDe 30, 1993
IM-!3 " dVaJpllsm: $:',443,687,776
DIRECT AND OVERLAPPING BONpED DEBT
_ Oar. CcIlD!y Bull,"", AUllooriti<s
Sub Cara Couz,!y Fe & WCD, Zone No. W-l
Foochil1 OxaDumiry ~ Distrkt Certificates of ParticlpatiOtl
raJo Alto Uailled School District
WlIimw> ScbooI Cistricl
Cltber Sc:Qool. Di5bid.s &. School Authorities,
aty of Palo Alto Gera:raI FlUId Oblisaticll$
City of Palo Alto Spctial Assessment Bands
MidpeaiDs.u.la Regioml P.:&; District &. Certincates or Participali9D
Sut.a Oat. Valley Water Dwrk:r: Certificates. of Partidpalicm
EJ Camirao Hospital Disttid. AuJboril),
% AppDWlc
1.675%
O.5Ol!
22.<m
89.95.3
5.762
Various
IIXHXX)
100.000
13.533
1.675
0.107
TOTAL GROSS DIRECT AND OVERLAPPING BONDED DEBT
Less: EL CamiDo Hosp;W Aulhoril.y (100% W!·suppon!o&)
TOTAL NET DIRECT & O\IEIU.APPlNG BONDED DEBT
(1) lnclucJca Terman S<.boollt~e purehase obligations.
Retina tg Assessed valUDliQIt!
Gross Dim:! Debt (5l2,847,300)._. ___ . __ 0.17%
To<al a..,., Deb. _______ ._ ..... __ . __ ._'o.83%
ToW Net Deh<_. _______ ._ ... _ .. __ ._.O'S3%
Stele Ss:h.oqJ Bpj1tfing Aid Repuab1c '$ Qr 6IlQ/9): S447
SOIIit:e: C&lilonua Municipal StalW:ics, Inc..
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Debe 611O/tD
S2A,536,S91
110,465
6,431,498
53,972
194M8
96,404
12,847,300 (1)
7,790,000
7,154,35(;
2,8SO,11I
1. ].:!6
S62,069,371
4 146
S6l,OGS,225
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ECONOMIC PROFILE OF THE CITI
PopulalJoD
The following table sbows the comparative population statistics of the City and the
County.
Xw
1981
1982
1983
1984
1985
1986
19I!1
1988
llI89
lll9O(l)
1991
1992
1993
CITY OF PALO ALTO AND S.vrrA CLAIIA COUNTY
Popul~fJoill. J9!%·Jm
Cilyor Pcr()CDI Saot. cta.r.
b!.o.6llP ~ ~
S5,100 1,340,60(1
54,BOO (.54)% 1,341.300
";,000 2.18 1,347,600
";,200 .35 1,368.400
";,600 .71 1.]86,600
56,600 1;l98,100
Sb,500 (.17) 1,407,600
S6,000 .11 1.'22,900
57,100 .88 1,443,l!OO
S6.ooo (1.lI6) 1,493.!1OO
55,BOO (.35) 1,5(».700
";,000 L43 l,537,100
S7;JOO 1.24 l.S63,l1OO
(I) u.s. c....... Do'o, as of AprU I, 1m.
so;r:ce; Canforaia DcpartmCrlt 01 Ftoaace (Estimates as oI January J).
Employment
.os%
_46
1.54
1.33
.87
~2
UlB
1_46
3.46
106
].85
L10
The City's unemployment rate has remaUled below that of the County, !he State and
!be United Stal& over the past five years. In July 1991, the unemployment rate in !he City
was 3.8 percent, as compared to 6.2 percent for the County and 7.6 peroenl for the State.
The following table summarizes the civilian labor forte. employment and unemployment
figures over liIe past six years for the City.
CITY or P4LO ALTO
Labor Fora, Em,Ploptlcat _.cd UltWlploymeal. 1987.1992
{la: lbouSlDdJl
= 36,Sn
35,573
999
2.7%
J2lIll
38,085
37,181
904
2.4%
.12lfI
38.saJ
31$19
B84
2.3%
Jm
36,936
36,m5
!JOI
2.'%
Wl
36,TIS
3S,S46
l,229
3.3%
sour=: SUtc of Caliloruia EmpJoyment Devclopmcol Dcpartmell~ Labor Mark.c:1 Jnfprmllioa Di'fisjon,
a-s
,
U'·,,,-·i c",·'·'~'~~>~
.l2!Z
31,'128
30,617
l,tll
3.5%
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SANTA ClARA COUNTY
EsUnt!lkd. Numbtt oI Wage .nd Salary Worb"n by Indu 'llJ'
<ID lhousudtJ
.m,) .l2!I!i l2S1 J.2S8 .ml' l22!) lW
="" u 4.s 41 '8 4.7 4.8 S.I
0.1 0.1 0.2 0.1 02 02 0.3
~ 33.0 3LS 32.2 33.5 33.4 34.2 30.1 _ad""'" T~
CcmmwUc.tious
283.0 26~.7 262.0 2132 269.8 264.6 l585
<l!'ubiic Utilities 22.2 213 21.5 2L5 2l.i 22.8 23.1
Wbokalo T,&<Ie 399 399 44.4 419 53.8 54.3 502
RcWI Trade 1095 108.6 110.0 1)29 116.5 U.5.7 114.2
F"za.uc:e,. lD:sut&Dc:e
<lR~_ 32.0 33.3 33.9 32.6 32.4 32.1 32.,.
s.m... 182.' 185.0 198.1 21M 2J4.1 2ln.5 2J9.9
0 ........... BO.7 84.7 869 86.5 868 89.6 88.9
Tala! AI! 1""_ 781.3 712.6 193.9 SU.s B33S 839.4 =6
source: SlIte Employment DevdopmcDI Departmeat.
lDdUJtry
The City has • diverse economic base and Is borne 10 a larse number and variety of
high technology Industry.
~ City's major industrial employers are clustered in the Cily"s three induslrial
parks. The laigest of the three, Stanford Industrial Park, covers 650 acres, and bouses
approximalely 31 tenants. 1be Stanford Industrial Park is ."ned for light manufacturing.
~ Palo Alto Industrial Park is !he City's second largest industrial park. Covering 90
acres, the Palo Alto Industrial Park is also zoned for light llUUluracturing and has aboul 15
tenants. Baylands lDdustrial Park is the tblrd industrial park; it covers 52 acres.
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L&rJeII EmplDyHI
the foUowillg are the 25 largest industrial employers in the County of Santa Qar ..
and are among the City'. la'gest industrial employers.
Employer
CollSlruction
COUNl1' OF S .. , ..... CL.UIA
lArcul15 (a!lultrlo.l Entploytn
,ft,lIIlud b1 Emploj1DtJl.l Size
1991
Overall Vlilue of construction activity has increased, over the period from 1987
through 1992, IOlal annual building permit valliatioes increased 33.4 percenL
8-7
/
The (ollowing table summarizes building pennil activity in the City in lhe last six
yelllS:
PNk'exztjti
Noat' '.I li,1
Toto!
New DwoIIio« UW fiiiit UmpjJ
,) • Family
M • Family
Ta<aI
SOWii! by of Palo Aha.
ltotaII Sales
lOS
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l61
crrY OF PALO ALTO
Bu.lldln& P~t Valuatlob!l
(Ie: o.muancb or dol1.t.n)
61
1
63
.l2a2
$45,319
B.ill
Sl19,465
1U
jj)
160
133.630
~
SU6,461
.w;
$35.145
~
SU1,I86
J3
13
56
The two largcst shopping cenlers in the Ci\y are the Sianford Shopping CeDter and
!be TCJWIl & CounIIy Village, The StanCord Shopprng Cenler houses aboul 90 storcs, which
indude Saks Fifth Avenue, Nordstrom, Neiman-Marcus, The Emporium, and Macy' ..
TOWIl &: CounIIy Village includes over 100 teroanlS, primarily speciality sbops.
ReWI sales in the City in 1m inoreased 1.056 percent from the 1989 level
Between 1986 and 1992, the City experienced a growtb in taxable salcs of 22.4 percent
The table on the (oDewing page SUlIIIIIalizes the annual volume of taJ<&ble transactions
within !be City since 1986.
l:a!
19@6
1987
l.9II8
1989
19!IO
1991
1992
aly.!
b!l!hlI9
SIj)22,2!3
1,033,202
1,069,254
1,184,1OS
1,l71,?04
l,2S6,616
1.1S!,236
CIlY OF PAW ALTO TOIaI Tualolo __
Percellt
~
L01%
3.41)
10.79
7.34
(1.18)
(.43)
Sa.claChra
~
S!3,9l6,5I'
14,932,Zl9
16,021),882
17,343,878
17,914,4GS
17,>12S.346
18,02S,280
SOUi'<:e: f.uabae ~ ill CaIifcrw., A..mJ.uaJ Report., Slate: Board or Eq l!aIizatiou.
TraosportatictD
Percent .o.w.
7.JO'!!,
1;)9
8.26
3.29
(2.81)
3.44
~bway 101, also known as Ibe Baysbore Freeway, and Inl.rstate 28C or the
Junipero Serra Freeway, COMeet Ibe City 10 San Francisco in the DOrth aDd San Jose 10 the
South. .
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San Jos. International Airport is !lxated approximately 15 miles from the Ciry.
National and regional air service is provided for passengers and freight by 13 airlines. The
City is aoout 20 miles from San Francisco International Airpon The Santa Clara Counry
operated Airpon in the City services priv.te aircraft
The California Department of Transportation (CAL1RANS} provides Ctltrmuler
train service to San Francisco and San Jose from (be City. Additional rail pa.ssenger servit'e
is avail.ble tbrough AMTRAK, which bas a terminal in San Jose.
The Santa Qara County Traruil Distrkt provides local bus servke in and around
the City. The San Mateo Co"nry Transit District (SAMTRANS) provides service between
the City and San Francisco.
Deep water transportation is available at the Pon of Redw(){)d City, sl. miles nonh.
Pons at San Francisco and Oakland are well equlpped to handle all types of coastal and
overseas cargo. All three ports are ronvenlently accessibJe by B ueeway"from the CIty.
Edocalion
Th. high quality of public and private eduClltion in the Count;! refiects widespread
imerest in this subject and Ihe l2!ge number of degree holders living In the area. The City
is served by 14 schools (K tbm 12), servivg approximately 7,500 students in the Palo A1lo
Unllied School DistricL
SlanIord Unive,..ity, established in 1885, is located adj.tentto the City. Situated on
ovcr 8,000 acres, tb. Univemity has a total estimated enrollment of 13,000 inclu<ling
undergraduate, graduate and post-doctoral ",,,dents.
The City is within the FoothiU OeAnza Community College DiStrict, which <lperates
two modem campuses with a k1tal enrollment "r approximately 42,000 day and evening
students.
In addition 10 Stanford Univemily, other nearby educational institutions offering
underg<1lduate and graduate degrees indude the University of California Berkeiey, San
lose State University, Santa Clara University and California St.te University Hayward.
Health and Community FatUities
Stanford Univemity Medical Center houses 663 beds and Veteran's Administrations
Hosp,taI houses 1;277 beds. Both facilities aro located in the City, as are several private
convalescent hospitals and nu"jng homes. The Stanford Unive"iry Medical Center is a
recognized centu for medical reseorch and is famous for pioneering in organ transplant
~ery_ City residents are also do~ to the EI Camino Hospital in Mountain View, the
Kaiser Foundation Hospitals in Santa Clara and Redwood City, and hospitals in the San
Jose area.
The City owns 4,255.8 acres of park and recreatioD lands. The two largest parks are
the 1,500 acre Bl"'bee Recreation Area and the 1,430 acre Foothills ParI" Several cuum)'
parks are also located near the City. These elry and county parks and recreational lands
~~ re!idents of tbe City with. wide variety of recreational opportumties Ibat include
, fisbing. picnicking. tennis and swimming. There are two golf courses in the City
inclu aing a municipal course. The City has five museums, including three art museums on
the Stanford Campus.
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1I1lUIles
The City Ulilities Vepanment is responsible for servicing approximalely 21,000
a=unts for the electrie, gas, water and wastewater coUection systems. The City Public
Works Dej!artment is responsible for operating the Regional Water Quality Control PJan~
Storm Dratnage System and ReIuse.
Treated as enterprise funds, the EI"ctric:, Gas, Water, Wastewater, Refuse and
Storm Drainage UtiJj[jes (me "Enterprise funds") are financed and operared in a manner
comparable 10 private business. enterprises. City policy provide,; that the cos: of providing
utility services to the general public continue to be funded predominantly through user
cl!arges,
Electric, Operation of the City's eleclric utility dates from 1900 wben the City
acquired the faciJjues of Ihe PuinsuJa Ughting Company. The City met .11 its power
requirements by operalion of its steam and diesel generators until Ig23. In response to
accelerating load growth, the City enlered into a whole~a1e supply contract with Pacific Gas
4< Electric Company ('PG&E') in 1923. The die""l generalorS continued to supplemenl
the power purchased tram PG&E until 1948 when they were scrappe~. In 1964, Ibe City
'CX¢cuted a wholesale, all·requirements <:ontraet wilh the Western Area Power
Administration ("Western") to purchase power prQduced by the CeDtral Valley Prcje~
The contract with PG&E was terminated. Since that time, the lower coS! power proVlded
by Western bas enabled Ihe Cil}' to provide electric service at rates well below those
prevailing in adjacent PG&E 'eMoe areas .
.!Jlli. Municipal ownership of the gas system began on October I, 1917 when the
City plirebased the Palo Alto Gas Company through • 540,000 bond issue. On October 7,
1929 natural gas was inlroduced into the City's mains replacing an inferior manufaetured
gas. The gas S)'stem and its gas consumptioD have grown with the development of the City.
The CIty relie~ 00 PG&E ror natura] gas UDlil September I, 1987 wbereupon allernative
supplies in the southwest were localed and COnlt_cled with for natura! gas supplies. In
191!8 the City discontinued its long-standing practice of charging rates equivalent to retail
rates cltarged by PG&E. Instead the City lowered its rates and remain today among Ibe
lowest in California. In Ihe 1990's Ihe City has enlered inlo contracts with Canadian
supplies al competitive prices. .
~ Prior to incorporation in 1994~ the area that was to become the City
deveioped as a number of small population centers. These cente:rs were served by private
water companies that drew Iheir supply from relatiyeiy shallow wells. In 1896, two years
after incorporation, a bond issue was authorized for purchase by Ibe City of a majoflty of
the waler wrnpanies. In succeeding years, additional purchases completed the acquisition
of prMilely owned facilities.
Deep wells provided waler to Ihe gradually increasing popul.lion until 1938, when
the dedine of the groundwater level necessitaled the purchase of imported water. The
&rowing demand thereafter was met wilh increasin~ purchases of supply from the Water
Vepanmem of Ihe City and Counly of San FranCISCo ("SFWD"). In 1962, in order 10
provide _ higher qualily of waler to its customers, the City began supplying 100% of its
water from SFWD.
Wastewa1er. The wastewater collection system became the City's first utiHty in
18~ serving a populalion of about 3,000. Currently, the collection system serves
approximatefy 57,000 residents in (he City wllhin its 25 square mile service area.
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The City 0r,erates • 38 million gallon per day (mgd) Regional Waler Quality
Control Plan! (the Plant") serving a 96 square rru1e area including the City and the deie.! of
Los AlIos, MouJltain View, tbe Town of Los AlIos Hills, Stanford Unive",ity and the East
Palo AI!O Sanitary DistricL The City and the cities of Mountain View and Los Altos are
partDers 10 an agreement .~dfying conditions for financing and operating the PIa.'lL Lo.
Altos Hll1s, the East Palo Alto Sanitary Distric~ and Stanford Uruversity are included by
separate contracts with the City which are referred to as 5ub·putr.er agreements.
Storm DrainaKG. The City adopted an Ordinance on Noyember 5. 1989 (Ord. No.
3910) to create. Storm and SurIaco Water Ma .. agement and Utility. 00 November 27.
1989lhe City Council approved a method Cor calculating Storm DrainaF,e. On February 22,
1990, the City Council adopted OrdinBJIct No. 3930 establishillg the U eility Rate Schedule
effective January I. 1990. Storm Drainage Cees were collecled for the first time with the
City's February 1990 utility bm.
The purpose of the Storm and Surface Water Management Utility is to construct
and maiJltafn storm drainaj!e improvements on a City·wide basis. The City is respoosible
for aU drainage facilitie5 :n tbe street and the public right of way ",eluding curbs and
gutt~ cateb basins, pipeJines and pump stations. These facilities colJect storm waler and
conyey it to the Santa Clara Valley Water Di.!trict's syltem of major channels an~ creeks
withiri the City.
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APPENDIX C
FORM OF OPINION OF BOND COUNSEL
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City of Palo AlIo
lS4l Hamilum Avenue
Palo Alto, CelifcaIia 9431)1
OPINION, $2,055,000 Limited ObllJ!atioD Improvement Bonds, City of Palo AlID,
CaIi!<ttni& Avenue Parung A51tISmetlt Dillriot No. 92·13, ,,"-mmt
Bond. nf '993
Membm of IIle City Counc:il:
We havalClOd as bond counr.el in coJlllOCtion with tho issuance by IIle City of Polo AIlo
(d>c "City") of its $2.055,000 Limited Obllg&lion improvement &nd .. City of Palo Alto,
caJ.ifomia A ........ Parking Aosessmeut District No. 92·13, Assessment Bondi of 1993 (lbe
~") dated the da!e of delh>ery th=of pur.uan. 10 Section 13.16.15 (Bond Plan G} of
a..p:.r 13.16 of TIde 13 of the Palo AltD M1>IIicipal Code (the"AcrJ and ReJolutioA No. __
(!he "Re5olutlaaj oflhe City adopted October 25,1993. We have examined the Ia ... and such
=tified jlI1X>OOdinp lind other PIIJ"'S as _ dean oecessary '" I"OIlder !his opinioo.
AJ 10 questions of fact materiI.l '" our opinion, we have rclicd upon re~l&Iiorn; of the
~taiDcd in the Resolulion and in the c:enificd proceeding. IIId certifications of public
o . 6IId olbers furnished to US, without undcJ:tAkiog 10 ~ the same by independent
invcsti,gation.
Based llpOJ1 our exarnln&Iicm, we .... of the opinion. as of the date her<af, as follows:
1. The City is • rmmicipal ccrporadon 6IId cha<ter;cd city, duly organized and validly
r.x!sIinB under iI& _ and the ConslruClion and lam of !be StaU; of CalifOnUL
2. The Bonds consti",teS a valid and bindin, oblig&lion of the City enfo:c:eablo in
a=xdance wIIh IbeIr tams.
3, The Bonds .... sccur<d by spociaI ....... ssmenrs levied annually upon the taxable real
proporty beneIited by Ihe improvemenlS acquired and oonslnlCled wIIh Ihe proceeds of the Bonds.
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Oty of Palo AlW .~
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4. The intu-est on the Bonds is exd oded from gross income for federal income taX
purposes and j. noc an item of to;;; preference (or Purp95e> of the federal altemanve minimum tax
unposed cn individuals and (;QJJ>Orationsj it should. be noted. howe-ver, that., for the purpose of
compuling the a1o:ma1ive minimum tax.oed on COIJI .... dons (as defined for fe&!<al mcome tax
;>LDJ'O""'), ,uch inteIeil is taken into acwunl in de<erminin, <ertain ineome and ~n,., The
B<>nd. are "quallfied IBX-<:<empt obligation," within the meaning of Section 265{b)(3) of the
Il11<Clal Revenue Code of 1986 (the "Code") such that, in the C03e of =Wn financial imlitution.
(within the muning of Section 26S(bX5) of the Code), • deduction for foderal income tax
pwposes is aIIo<WJd fOl ~htype<tCJtt (80%) of that ponion of ..,c~ financial institutioo', inte<eSt
oXJ>Cll!<' &I.locable to interest payable on the Bo"ds, The opinions set forth in the preceding
'etltcnce an: ..,b~ to the condition thaI the City comply with an teqUircments of the Code that
must be sal!sfled subsequent to the is.!U1n<e o(the Booa.in ocdorthat.ucl! interest __ be, or
continue to be, excluded from gros. income for foderal income tax Purp9sc$. The City has
covenanted to comply with each IUch requlremonL Fai1me to comply with certain of .uch
rcquircmems mol' eawe the inclusion of interest on the Bonds in gross income for fedcnl income
rax purposea 10 be ",troactive to the d>te of issoan<:<o of the Bonds.. We e<press DO opinion
reprdiri, otbe< fedaaI rax COftIC<tUCIlCeS arising with "'S»e<:t to the BC!>d$.
S. The inIatol OD the Bonds is exempt hom penonal incCffile taxation imposed by the
Stale of CaIlfomia.
'lbe riJhts of !be owners of the Bonds and the etlfoteeabillly of tlte Bonds, may be $Object
to banI:nJpIcy,lnsolvency, reorganization, moratorium and othee sImilM law •• !foeti", ctedltors'
rights bereIqf"", or beteofu< enacwd and also may be SUbject to the =is<: of j1ldiciaI dUcmion
in apj>iOprialIe ......
A Professional Law Cwpotation
·
......... o A TTACIIIEIIT B
USOL17T20N NO.
A RBSOLI1'l'lON 01' HB cnor C017NClL 01' 'l'BB CI'1'r OF PALO ALTO
PROVJ:!lINO FOR '1'EJ: USV.I.NC1I OF BONDS .10m> DIIlSC'1'ING r.svr OF
.I.IDItI.I.L ASSBSSKlPI'l'S '1'0 PAr '1'BB PIlI)lCIPAL .I.NI) INTBIlSST
flSllBor FOil THB CALIJ'OUU. AVBWB PAIUIIIIG ASSBSSD!!':
DISTRIC'l' NO. 9~-13
Ao!opted
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The council r"Council"') of the City of .Palo Alto, does
RESOLVE as follows:
S'OCl1PN 1. City 'Of Palo Alto. The City of Palo Alto~ State
of California ['"City" or -Issuer") is a chartered city, dul)'"
organized and existing under and pursuant to its charter and the
constitution and laws of the State of California.
SECTION 2. Chartered City Powerl1-Junicipal Affair, By the
terms of its charter. the City is empowered to make and enforce
all laws and regulations in respect to mu.nicipal affairs~ subject:
only to such restrictions and limitations as may be provided in
the charter and tlte Constitution, and to exercise any and all
rights. powers and privileges heretofore or hereafter established,
granted and prescribed by any law of the state. the charter. or by
any other lawful authori~y. ~hicn a municipal corporation might or
could exercise ~~der the Constitution~ including all powers not in
conflict with t-he provisions of t.he ch.e.rcer noW' or hereafter
granted to general law cities. and wherein it is provided that the
enumeration in the charter of any particular power shall not be
held to be exclusive of or any limitation upon the general grant
of powers. The acquisit.ion. constructions, ownership, management.
maintenance, operation. repair. addition. extension and
improvement of offstreet automobile parking facilities for public
purposes and the issuance of bonds to pay the cost thereof is a
municipal affair.
SECTIQN 3. Authority. Title 13 of t-he Palo Alto Municipal
Code was adopted pursuant to ~he power and authority vested in the
Council by and under the terms and p~ovisions Of the charter~ and
there are no limitations in regard thereto expressly or otherwise
provided in the charter or in the constitut.ion of the State of
California. other than Section 19 of Article XV! of the
constitution. as to which full compliance has been had by the
Council i!l the proceedings leading up to the adoption of this
resolution.
SgCTION 44 Conditions Satisfied4 All acts, conditions and
things required b:Y the constitution and laws cf the State of
California and the chareer of the City and the Palo Alto Municipal
Code to be done~ to happen and to be performed precedent to and in
the issuance of the bonds, have been done. have happened and have
been performed in regular and due fonn. time and manner as
required by law~ and the Council is nov authorized to issue bonds
in the manner and form as in this resolution provided.
SECTIQN 5. .Parking Assessment District. The offstreet
parking improvements described in the proceedings conducted
pursuant to Resolution No. 7230. A Resolution of Preliminary
Det.ermination and Intentio:..~ adopted by t.he Council on August 9,
1993~ are within and are for the benefit of an assessment district
in the California Avenue Area of the City. which is hereinafter
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referred to as, ·the Parking Assessment District·" The cost and
expenses of the contemplated acquisitions and improvements. being,
in the opinion af thi~ Council. of mare than local or ordina.ry
public benefit. have been made chargeable upon the Parking
Assessm~nt District. which district the Council has declared to be
the district benefited by said improvements, and the exterior
boundaries of which are described and shown on the map on file in
the office of the City Clerk, \ ... hich indicates by a boundary line
and extent of the territory included within the Parking Assessment
District and which shall go',~ern for all details as to the extent
of the district.
SECTION €. Definitions. Unless the context otherwi se
requires, the terms defined in this Sectien shalL for all
purposes of this Resolution and of any Supplemental Resolution and
of the Bonds and of any certificate, opinion, request or other
document herein mentioned. have the meanings herein specified.
·Act-means Sections 13.12.010. 13.12.040 and 13.12.050 of
chapter 13.12 of Title 13 of the Palo Alto Municipal code.
-Agent· means the Bank of America National Trust and Savings
ASSOCiation a~poi:nted under Section 13 hereof to perform the
duties of authentication~ registration, transfer and payment of
the Bonds and the Agent' s assigns or any ather corporation or
association which may at any time be substituted in its place.
-Assessment or Assessments· means the unpaid amounts of the
special assessments levied annually against all taxable real
property within the boundaries of the Parking Assessment Oistrict
pursuant to the Act and the Bond Law and the proceedings of the
Council under the Resolution of Intention, for the purpose of
paying Debt Service on the Bonds t4,der the Bond Law.
·Authorized Investments-means any tiJ securities 'other than
those identified in paragraphs {a) and (d) of Section 53601 of the
Government Code of the State) in which the City mdy legally ~nvest
funds subject to its control. pursuant to Article 1. commencing
with section 53600~ of Chapter 4 of Article 1 of Division 2 of
Title 5 of the Government Code of the State~ as now or hereafter
amended, including but not limited to the Fidelity u.s. Treasury
Income portfolio; (ii) shares in a California common law trust
established pursuant to Title 1. Division 7. Chapter 5 of the
California Government Code which invests exclusively in
investments permit:ted by section 53635 of Title 5, Division 2.
chapter 4 of the California Government Code. as it may be amended;
and (iii) the Local Agency Investment Fund of the State of
California, created pursuant to Section 16'29.1 of the California
Government Code.
-Auditor· means the Auditor/Controller or Tax Collector of
the county or other official of the County responsible fer
preparing property tax bills.
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'"'Available Surplus F'lnds· means any sUl:-plus moneys held by
the CilY at the end of each Fiscal Year in excess of the amounts
required to pay lawful municipal obligations incurred in that
Fiscal Year~
-Sands· or -Bonds of this Iss\,;e-means Limited Obligati en
Improvement Bonds. City of Palo Alto, California Avenue parking
Assessment. District No~ 92-13. Assessment Bends of 1!t93 issued
under this Resolution and the Bond Law. and at any time
OUtstanding.
·Bond Date· means the dated date of the Bonds which is the
Closing Date.
-Bono Den:lmination-means the amount of $5. 000 or any
integral multiple thereof. which is the minimum amount in which
the Bonds ~4Y be issued. ex~ept that one Bond may contain any odd
amount.
'"'Bond Fund-means the City of
Parking Assessment District NO.
Irr~rovement Bonds, ASsessment Bonds
under Section 29 hereof~
Palo Al to. Cali fornia Avenue
92-13. Limited Obligation
of 1993 Sand FUnd established
-Bond L8.w· means the Bond Plan G. commencing with Section
13.16.15 of Chapter 13.16 of Title 13 of the Palo Alto Municipal
Code.
'"'Eond ~~rchase Agreement W means the agreement. contract or
accepted bid whereby the City agrees to sell and the Original
Purchaser agrees to buy all or a designated portion of the Bonds.
-Bond Jl.egister-mear:.s the books maintained by the Agent
pursuant to Section 19 for the registration and transfer of
ownership of the Bonds.
-Bend Year-means the twelve-month period beginning on
September 2 in each year and ending September 1 in the following
year except that Ci) the first Bond Year shall begin on the
Closing Date and end on t.he next SeptenU:>er 1. and (iil the last
Bond Year-may end on a prior redemption date.
-capitalized Interest Account-means the City of Palo Alto.
California Avenue Parking Assessment District No. 92-13. Limited
Obligation ~mprovement Bonds, Assessment Bonds of 19B3.
Capitalized Interest Account established under Section 29 (C}
hereof.
·Certificate of the City-means a written certificate,
statement. request. order or requisition signed by an Officer of
the City duly authorized by the Council for that purpose.
-city· means the City of Palo Alto. County of Santa Clara,
State of California.
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·City Manager-means the City Manager or the ~ssistant City
Manager of the City.
·clerk· means the City Clerk of the City or Deputy City Clerk
or designee thereof.
·Closing Oat.e" means the date upon which t.here is an exchange
of any of the Bonds for the proceeds represent.inQ' t.he p"..lrchase
price of such Bo~ds by the original Purchaser thereof.
·Costs of Issuance-means all expenses incurred in connection
with the authorization, issuance. sale and delivery of the Bonds,
including but not limited to compensation. fees and expE:";ses of
the City and the Agent and their respective counsel, compensation
to any financial consultants and underwriters (ather than those
taken as discount on the Closing Date}. legal fees and expenses~
filing and recording costs~ costs of preparation a:-.j reproduction
of documents, costs of compliance with the Tax Code relating to
:rebate to the United States and costs of printing. mailing and
publication of notices with respect to the City and the Project.
·COSt5 of Issuance Fund-me:3ns the City of Pale Alto,
California Avenue Parking Assess!r.ent Districc. No. 92-13.
Assessment Bonds of 1993 I Limic-ed Obligation Improvement B<:lnds
Costs of Issuance Fund established under Section 2B hereof.
·Council-means the City Council acting as the legislative
body of the City.
-County· means the County of Santa Clara~ State of
California.
-Debt Service-means the scheduled amount of interest and
amortization of prinCipal payable on the Bonds during the period
of computation, but ~~cluding amounts scheduled during such period
which relat.e to principal which has been. retired before the
beginning of such period.
-me-mea.ns the Depository Trust company, New York. New-York.
and it$ successors ard assigns.
-Depository-means D'l'C as the ini t-ial depository for the
Bonds under Section 23 hereOf.
-Federal Securities· means any of the following which at the
time of investment are legal investments under the laws of the
State for the moneys proposed to be invested therein;
Cal direct general obligations of the United States of
America (including obligations i8~ued or held in book entry form
on the books of the Department of the Treasury of the United
States of America); and
(b} obligations of any depart~ent. agen~J or instrumentality
of the United States of Am~rica the timely payment af principal of
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and interest on which are unconditionally and fully guaranteed by
the united States of America.
rFinance Director-means the Dir.ector of Fina~ce of the City
or designee thereof.
-Fiscal Year~ means the period co~~encing on July 1 of each
calendar year ana termi!la.~ing on June 30 of the next calendar
year.
-Improvement Fund-means City of Palo Alto, California AVEnue
parking Assessment District No. 92~13. Limited Obligation
Improvement Bonds~ Ass'!ssment Bonds of 1993; Improvement Fund
established under Section 27 hereof.
-Interest Payment Date~ means each date upon which interest
on the BOfids is payable; beginning March 2. 1994, and semiannually
on each september 2 and March 2 thereafter until maturity.
·Officer of the City-means the City Manager. Clerk, Finance
Director, Director of Public Works, or any other official of the
City authorize" by the Council to carry out the terms of this
Resolution.
·original Purchaser· means the first purchaser of the Bonds
from the City.
"Outstanding·; when used as of any particular time with
reference to Bonds. means all Bonds theretofore executed. issued
and delivered by the Cit.y and authenticated by :he Agent under
this Resolution except:
Cal Bonds theretofore canceled by the Agent or surrendered
~o the Agent for cancellation;
{b) .sonds paid or deemed t.o have been paid w; thin the
me~~ing of Section 21: and
(c) Bonds in lieu of or i!1 substitution for which other
Bonds shall have been executed, issued and delivered by the City
~rsuant to this Resolution or any Supplemental Resolution.
·OWner~ or -Registered owner-, when used with respect to any
OUtstanding Bond, means the person in whose name the ownership of
such Bond shall be registered on the Bond Register.
·Principal Office-means the corporate trust office of the
Agent in San Francisco~ California. or such other office as shall
be designated by the Agent in writing to the City.
-Project· means the acquisitions and improvements described
in the Resolution of Intention and any chanqes and modifications
thereto approved py the Council.
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·~eccra Date'" means, with resoect to the Bonds. the fifteenth
(15th) day i~~ediately preceding an Interest ?~yment Date.
-Redemption Account· means the City of Palo Alto, California
~venue parking Assessment District No, 92-13. Limited Obligation
Irr.provement. Bonds. Assessment Bonds of 1953, Redemption ACCount
established under Section 29(C) hereof.
-Redemption Price"' means,
principal amount thereof, plus
upon redemption thereof pursuant
..... ith respect to any Bond, the
the Re-demption Premium, payable
to the Resolution.
'"p.edemption
principal amount
Bonds.
Premium'" means three percent 13\) of the
of the Uonds payable upon redemption of the
·Reserve Fund-means the City of Palo Alto, California Avenue
Parkinq Assessment District No. 92-13, Limited Obliga~ion
Improvemenc Bonds. Assessment Bonds of 1993. Reserve Fund
established ~~der Section 30 hereof.
"1teserve Requirement-means five percent {5\' of the total
principal amount of the Bonds~
-Resolution-or "Resolution of Issuance-means this
Resolution. as originally adopted or as it may from time to time
be supplemented, modified or ~mended by any Supplem@ntal
Resolution pursuan~ to the provisions hereof.
·Resolu~ion of Intention-means Resolution No~ 1230~ entitled
-A Resolution of prelilninary Determinat.ion and of Inten~ion to
Hake ACquiSitions and Improvements.· adopted by the Council on
AU!1USt 9. 1993. as modified or amended and in effect. on the
Closing Date.
-state-means the State of California.
·Supplemental Resolution-mea. .. ·1S any resolution, agreement"
tesolution or other instrument hereafter duly adopted or executeo
by the City in accordance with the provisions oi this Resolution.
'"'Tax Code-means the Intern3,l Revenue Code of 1986 as in
effect on the date of issuance of the Bonds or (except as
otherwise referenced herein) as it may be amended to apply to
obligations issued on the date of issuance of the Bonds~ together
~ith applicable temporary and final regulations promulgated under
the Code.
'"Treasurer-means the F'inance Director of the City or
designee ~hereof.
s;:cxtON 7. Rules of Construction. All references
Resolution to ·sections· and other subdivisions are
corresponding Sections or subdivisions of this Resolution;
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to the
and the
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words 'herein-. -hereof-. ·hereunder-and other words of simi lar
import refer to this Resoiutiol1 as a whole and not to any
particular Section or subdivision hereof.
Words of the masculine ge.nder shall be deemed and .-::onstrued
to include correlative words of the feminine and neuter genders.
unless the contex~ shall otherwise indicate, ~ords importing the
sing-ular number shall include the plural number and vice versa,
and ...... ords importing persons shall include corporations and
associations. including public bodies, as well as natural persons.
SECTION' e. Equal Securi.ty. In consideration of the
accept.ance of the Bonds by the OWners thereDf. this Resolution
shall be deemed to be and shall constitute a contract between the
City and the OWners from time to t.ime of the Bonds; and the
coven:.nts and agreements herein set. fort.h to be performed on
behalf of t.he City shall be for the equal and proportionat.e
benefiL securicy and protection of all Owners of the Bonds
without prefe-rence. priority or distinction as to security or
otherwise of any of the Bonds over ~ny of the others by reason of
the number or date t.hereof or the time of sale, execution or
delivery thereof. or otherwise for any cause whatsoever. except as
expressly provided therein cr herein.
Sk,,CTXQN 9. Bonds Aut.horized. 1\11 acts. conditions and
things requi red by law t.o exist.. happen and be performed precedent.
to and in the issuance of the .sonds have existed, happened and
bep.n :pt!!rformed in due time, form and manner as required bjt law.
and the council is" now authorized pursuant to each and every
requirement of law to issue the Bonds in the manner and ferm as in
t.his Resolution provided. The Bonde will be issu.ed as serial
and/or term bonds as set forth in the accepted bid fer the Bonds
and Exhibit A a.ttached her-:-to and blt this reference incorporated
berein.
sgcTIQN JO. Issuance of Bonds. The Bonds .. in the aggregate
principal amount $2.055,000. shall be issued as hereinafter
provided and be secured by the moneys in ~he Redemption Fund and
by the ~sessments, or portion thereof, in accordance with. under
and pursuant to the provisions of th~ Resolution of Intention and
the proceedings thereunder duly had ~~d taken. The Bonds shall be
known as "'Limited Obligation Impro .... ement Bonds. City of Palo Alto.
California Avenue Parking Assessment District No. j2-13~
ASsessment Bonds of 1993-.
SfCT1QN 11~ Maturities of Bonds. The Bonds shall be issued
in 'Only fully registered form. without coupons.. in the Bond
Denomination or any integral multiple thereof~ so long as no Bond
shall have more than one maturity da~e. The Bonds shall b~ dated
with the Bond Date ~~d mature on September 2 in each of the years
and in the amounts set forth in the Exhibit~ The 80nds shall be
numbered or otherwise identified as determined by the Agent.
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SF'CTION' 12. Interest: on Bonds. The. Bonds shall bear
interes~ at the rate or rates set forth in the EXhibit A hereto.
Interest on the Bonds shall be payable on each Interest
Payment Date to the person whose name appears on the Bond
Registration Books as the OWner thereo! as of the Record Date
immediately preceding each s!.lch Interest Payment Date, such
interest to be paid by c.heck or draft of the Agent mailed on or
before each Interest Payment Date to the Owner, at the address of
such Owner as it appears on the Bond Register-. Principal of and
premium (if any) on any Bond shall be paid upon presentation and
surrender t.hereof at the principal aftic€' of t.he Aqent. Both the
principal of and interest and premium (if any) on the Bonds shall
be payable in lawful mon~ of the United S~ates of ~~erica. Upon
the request in writing of an o...."1ler of Sl.000,000 or mere in
a9qregate principal amouni: of Bonds. suet. request having been made
before the Record Date preceding an Interest Payme!lt Date. SIJch
interest shall be paid on such Interest PayrnerJt: Date by .,..ire
transfer in immediately available funds to ;an account in the
cont.inei~tal United States designat~d by such OWf'.er to th~ Agent on
or before the applicable Record Date.
Interest shal~ be computed on the basis of a 360-day year
comprised of twelve thirty-day lnonths. The Bonds snaIl bear
interest from the Interest pa~ent Date next preceding the date of
authentication of the Bonds, except far any Bond which is
authenticated on an Interest Payment Oate~ in which event buch
Bond shall bear interest from such date of authentication. and
except for any Bond which is authenticated prior to the first
Interest Payment VatE~ in which event:. such Bond shall bear
interest from the Bond Date; provided. however~ that if~ as of the
date of authentication of any Band, interp.Gt the:reon is in
defa".l-lt. such Bond shall hear interest from t.he date t.o which
interest has previously been paid or made available for payment in
~~ll. The Sonde will continue to bear interest after maturity at
their interest rates~ provided that they are presented at maturity
and payment thereof is refused upon the sole ground that there are
not sufficient moneys in the Bond fund. If not presented at.
maturity. interest will nL~ on ~he Bonds until maturity.
SECTiON ]3. Designation of Agent. Bank of America National
Trust and Savings Association~ at the Princip~l Office, is hereby
designated as the Agent to perform the actions and duties required
under this Resolution for the authentication, transfer.
registration, and paym€nt Qf the Bonds. The Finance Director is
hereby authorized and directed to enter into appropriate
a9reeme~ts with the Agent for such purposes.
SECTION 14. Form of Bonds. The Bands. the form of Agent'S
certificate of authenticat:ion. and the form of assignment to
appear thereon, shall be substantially in the respectiv~ forms set
forth in Exhibit B~ attached hereto and by this reference
incorporated herein. with necessary or appropriate variations ~
omiSSions and insertions, as permitted or required by this
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Resolution. ·CUSlp· identification numbers shall be imprinted on
the Bonds. but such numbers shall not constitute a part of the
contract evidenced by the aonds and any error or o~ission ",'i th
respect thereto shall not constitute cause for refusal of any
purchaser to accept deli very vf or pay for the Bonds. In
addition. failure on the part of the City or the Ag'!nt to use such
CUSIP numbers in any notice to Owners shall not constitute an
event of d~fault or any violation of the City's contract with such
Owners and shall not impair the effectiveness of any such notice,
sEcTlgN 15~ preparation and Delivery of Bonds. Upon the
award of the sal e of the Bonds by the Counci 1. the Finance
Director is hereby directed to cause the Bonds to be prepared in
accordance with this Resolution and to cause their delivery upon
their completion and execution to the Agent who shall authenticate
and d~liver the Bonds to the origin~l Purchaser~ upon receipt of
the purchase price therefor. and upon receipt of the request of
t!le City.
5£<:11Q1\I '6. Execution of Bonds. The eO!".ds shall b~ signed
in the name and on behalf of the City with the ~nual or facsimile
signatures of the Treasurer and attested by the manual or
facsimile signature of the Clerk. The Bonds shall then be
delivered to the Agent for authentication. In case any officer
who shall have signed any of the Bonds shall cease 'Co be such
officer before the Bonds so signed shall have been authenticated
or delivered by the Agent or issued by the City. such Bonds may
nevertheless be authenticated. delivered and issued and, upon such
authentication, delivery and issue. shall be as binding upon the
Ci~ as though the indiVidual who signed the same had continued to
be such Officer of the City. Also. an-.f Bona: may be Signed on
behalf cf the City by any individyal who on the actual date of the
execution of such Bond shall be the proper officer although on the
nominal date of such Bond such individual shall not have been such
officer.
Only such of the Bonds as shall bear thereon a certificate of
authentication in substantially the form set forch in Exhibit B.
manually executed by the Agent. shall be valid or-obligatory f~r
any purpose or entitled to the benefits of this Resolution, and
such certificate of the Agent shall ce conclusive evidence that
the Bonds so aut.henticated have been duly authenticated and
delive:red hereunder and are entitled to the benefits of this
Resolution. The Agent's certificate of authentication on any
Sands shall be deemed to be executed try it if signed by the Agent
or by an authorized officer or signatory of the Agent. but it
shall not be necessary that the same officer or signatory sign the
certificate of authentication on all of the Bonds iss"'Jed
hereunder.
SECTION 17. Temporary Bonds. The Bonds may be issued
initially in temporary form exchangeable for definitive Bonds when
ready for deli very. The temporary Bonds may be printed.
lithographed or typewritten. shall be of such denominations as may
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be detarmined by the Council and may contain such reference to any
of the provisions of this ResDlution as may be appropriate. Every
temporary Bond shall be executed by the officers designQted and in
the manner provided in Section 15 hereof and be registered and
authenticated by the Agent upon the same cvnditions .'3nd in
substantially the same manner as the defir.itive Bonds. If the
City issues temporary Bonds, it ""ill execute and fur!1ish
definitive Bonds without delay. and thereupon the temporary Bonds
may be surrenderc.d, for cancellation, in exchar:ge therefor at the
Principal office of the-Agent. and the Agent shall authenticate
and del iver in exchange for such tempo~ary Bonds an equal
aggregate principal amount of de~initive Bonds of authorized
denominations. Until so exchanged. the temporary Bonds shall be
entitled to th~ same benefits under th~s Resolution as definitive
Bonds authenticated a~nd delivered hereunder.
SECTIQN lB. Transfer and Exchange of Bonds. Any Bond may;
in accordance with its terms, be transferred upon the Bond
Register by the person in whose name it is registered, in person
or by his duly authorized attorney. uvon surrender of such Bond
for cancellation; accompanied by delivery of a written instrument
of transfer in a form approved by the Agent, duly executed.
Whenever any Bond shall be surrendered for transfer, the Agent
shall thereupon authenticate and deliver to the transferee a new
Bond or Bonds of likE tenor ~ rnaturi ty and aggregate principal
amount. Bonds may be exchanged at the Principal Office of the
Agent~ for Bonds of the same tenor and maturity and of other
authorized denominations. No Bonds the notice of redemption of
which has been given pursuant to Section 21 shall be subject to
tranSfer or exchange pursuant to this Section. Neither the city
nor the Agent shall be required to make such exchange or
registration or-transfer of Bonds on or after the Record Date.
For any transfer or exchange under this Section, the City and the
Agent may require the payment of a reasonable fee to cover the
costs and expenses of the City and the Agent.
SECTlrnl 19. Bond Register. The Agent will keep or cause to
be kept at its Principal Office a sufficient Bond Register for the
registration and tr-ansfer of the Bonds. which shall at all times
during regular bUSiness hours be open to inspection by the City;
and. upon presentation for such purpose. the Agent shall, under
such reasonable I"egulations as it may prescribe. register or
transfer or cause to be registered or transferred. on the books,
Bonds as hereinbefore provided.
~TTQN 20. Bonds Mutilated, Lost, Destroyed or Stolen. If
any Bond shall become mutilated. the Agent shall thereupo~
authenticate and deliver; a new Bond of lik.e maturity ana
prinCipal amount in exchange and substitution for the Bond so
mutilated, but only upon surrender to the Agent of the Bond so
mutilated4 Every mutilated Bond so surrendered to the Agent shall
be canceled by it and delivered to, or upon the order of. the
City. If any Bond issued hereunder shall be lost~ destroyed Or
stolen. evidence of such loss. destruction or theft may be
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submitted t.o the City and the Agent:. and, if such evider'.ce be
satisfactory to them ar.d indemnity satisfactory to them shall be
given. the Agent shall thereupon authen!:icace and aeli,...-er. a new
Bond of like maturity and principal amount. in lieu of ar.d in
substit~tion for ~he Bond SO lost. destroyed or stolen {or if any
such Bond shall have matured or shall have been called for
redemption, instead of issuing a substitute E04a the Agent may pay
the sam.e 'Without surrender thereof upon receipt of indemnity
satisfactory to the Agent). The City end the Agent may require
payment of a reasona.ble fee for each new Bond issued under this
Section and of t.he e,~enses which may be incurred by the City and
the Agent. Any Bond issued under the provisions of this Section
in lieu of any Sond alleged to be losti destr~ed or stolen shall
constitute an original contractual obligation on the part of the
City Whether or not the Bond all&ged to be lost, destroyed or
stolen be at any time enforceable by anyone, and shall be equally
and proportionately encit-led to the benefits of this Reso!ut':'on
with all other Bonds secure~ by this Resolution and any
Supplemental Resolution.
SECTION 21. Redemption Prior to Maturity.
tA} Optional Redemption. The Bonds shall be subject to
redemption prior to their respective maturity dates. at the option
of the City~ as A whole, or in part in inverse order of maturities
and by lot within a maturity ~ f:com any source of available funds.
on any Interest Payment Date at the Redemption Price; plus &ccrued
interest thereon to the date of redemption.
The City shall give the Agent written notice of its intention
to red~em Bonds ~nder this £ubsection (A)~ and shall deposit all
amounts {or Authorized Investments maturing not later than the
redemp~ion date) required for such redemption with the Agent at
leaGt forty-five (4S) days prior to the date fixed fer such
redemption.
fB) Notice of Redemption. Unless waived by a.T'"Jy Owner of
Bonds to be redeemed~ official notice of any redemption of Bonds
shall be given. at the expense cf the parson causing such
redemption, by the Agent by mailing a copy of an official
redemption notice by registered or certified mail a~ least 30 days
and not more than 60 days prior to thE date fixed for redemption
to the Owner of the Bond or Bonds to be redeemed at the address
shown on the Bond Registration Books cr at such other address as
is furnished in writing by such OWne~ to the Agent~
SECTION 22. Refunding of Bonds.
by the City upon the conditions as
proceedings therefor, all as determined
The Bonds may be refunded
set forth in appropriate
by the Council.
SgcTiQN 23. Book-Entry Only System. DTC shalJ act as the
Depository ~ One Bond for each maturity of the Bonds shall be
initially executed. a-ut.henticated~ and delivered as set forth
herein with a separate fully registered certificate (in print or
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typewritten form!. Up,::m initial executior.;, authenticaticn, and
delivery, the ownership of the Bonds shall be registered in the
Bond Register kept by the Agent for the Bonds in the name of Cede
&, Co.. as nominee of DTC or such nominee as OTC shall appoint in
writin);J.
The Officers of the City and the Agent are hereby authorized
to take any and all actions as ;t\ay be nece.ssary and not
inconsistent with this Resolution to aualify the Bonds for the
Depository's book-entry system, includ-ir,; the execution of the
Depository's required representation letter.
With respect to Bonds registered in the aand Register in the
name of Cede &: Co., as nominee of DTe. neither the City nor the
Agent. shall have any responsibility or obligation to any broker
dealer. bank, or other financial institution for which DTC holds
Bonds as Depository from time to time (-DTC Participan~s-} or to
any person for which a MC Participant acquires an interest in t.he
Bonds (-Beneficial OWners·) ~ Without. li.miting the immediately
preceding sent~nce, neither the City nor the Agent shall have any
responsibility or obligation with respect La Ii) the accuracy of
the recards of DTe, Cede " Co~. or any D1'C f'articipant with
respe;:::t to any o'Wllership interest in the Bonds. (iii the delivery
to any DTC Participant, any Beneficial Owner, or any other person,
other t~~ DTC 1 of any notice with res~ct. to the Bonds, including
any Bonds to be re~eeme~ in the event the City elects to redeem
the Bonds in parte (iii) the selection by the Depository of the
beneficial interes~s in the Bonds to be redeemed in th~ event the
City elects to redeem the Bonds in part. (iv) th~ payment to any
DTC Participant~ any Beneficial Owner. or any person. other than
OTC~ of any amo~~t with res~ct to the principal of or interest on
the Bonds~ or (v) and consent given or other action taken by the
oeposito~ as OWner of the Bonds; excepe that so long as any Bond
is registered in the name of Cede ~ Co .• as nominee of DTC. any
Beneficial OWner of $1.000.000 0:-more in aggregate r-rincipal
amount of any series of Bonds who has ~iled a ~~itten request to
receive notices. containinr;' such Beneficial OWner's name a!ld
address. with the Agent shall be provided wic.h all notices:
relating to such Bonds by the Agent.
~~cept as set forth above. the Agent may Creat as and deem
DTC to be the absolute OWner of each Bond, for which DTC is actinq
as Depository for the purpose of payment of the principal of and
interest on such Bonds. for the purpose of giving noc-ices of
prep~ent and other matters with respect to such Bonds, for the
purpose of registering transfers with respect to such Bonds~ and
for all purposes whatsoever~ ~he Agenc shall pay all principal of
and interest on the Bonds only to or upon the order of the owners
as shown on the Bond Register, and all such payments shall be
valid and effective to fully satisfy and discharge all obligations
with respect to the principal of and interest on the Bonds to the
extent of the sums or sums so paid.
No person other than an OWner'S,
Register~ shall receive a physical Bond.
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as shown on the Bond
upon deli ve:y 0:/ me to
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the Agent of written notice to the effect that ~rc has det;rmined
to substitlJte a new nominee in place of Cede & Co .• and s'lbject to
the transfer provisions in Section 18 hereof, references to ·Cede
& Co.-in this Section 23 shall refer to such new nominee of DTC+
PTe may determine to discontinue providing its services with
respect to the Bonds at any time by giving written notice to the
Agent during any t.ime that the Bonds are Outstanding, and
discharging its responsibilities with respect thereto under
applicable law. The City may terminate the services of DTC with
respect to the Bonds if it determines that me .lS unable to
discharge its responsibilities with respect to the Bonds or that
continuation of the system of book-entry transfers through DTC is
not in the best interest of the Beneficial Owners. and the City
shall mail notice of such termination to the Agent.
Upon the termination of the services of DTC as provided in
the previous paragraph~ and if no substitute depository ~illing to
undertake the functions hereunder can be found which is willing
and able to undertake such functions upon reasonable or customary
terms~ or if the City determines that it is in the best interest
of the Beneficial OWne~s of the Bonds that they be able to obtain
certificated Bonds~ the Bonds shall no longer be rest::icted to
bei&g registered in the Bend Register of the Agent in the name of
Cede & Co .• as nominee of OTC. but may be registered in whatever
name or names the OWner or OWners shall designate at that time. in
accordance with Section lB.
To t',he extent that the Bond owners are designated as the
transferee ~ the ~eTsi in accordance with Section 17. the Bonds
will ~ deliv~red to such Beneficial OWners.
~. Sale of Bonds. The Bonds shall be offered for
sale pursuant to the terms contained in the Official Notice of
Sale in substantially the form attached hereto as Exhibit C and by
this reference incorporated herein, and Bold to the highest. best.
responsible bidder for an amount equ~l to not less than principal
and accrued interest. Monday, November 22. 1993. at the hour of
10:00 a.m. {Pacific Standard Time). is hereby fixed as the time
and the offices of Jones Hall Hill , White, A Professional Law
Corporation~ bond coun~el to the City. Four Embarcadero Center,
19th Floor. San Fran-:isco, California 9411L is hereby-fixed as
the place at which bids will be received for the purchase of the
Bonds as described in and subject to the terms and conditions of
Exhibit C. The forms of Exhibits C and D {the ·Official Bid
Form·} are hereby-approved.
The City clerk is hereby authorized and directed to cause
notice of sale of the Bonds by": (i) publication of a notice
substantially in the form of Exhibit E, attached heret.o and by
this reference incorpo.rated herein. in a newspaper of general
circulation with the City of palo Alto. once a week for two
successive weeks, with the first publication at least fourteen
(14) days before November 22, 199L and (iil publication of a
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notice substantially in the form of Exhibit F, attached hereto and
by this reference inccrporatad herein. in the Bond Buyer a
financial newspaper of statewide circulation, one time, which
publication shall occur at least fifteen (lS} days before November
22. 1933.
On November 22, 1993 before the hour of 11:59 O'ClOCK p.m.
(Pacific Standard Time). the Council will accept on ~half of the
City} the best responsive bid for th~ Bonds. or reject all bids.
The council hereby approves the Preliminan" Official
Statement for the Bonds in Substantially the form on file with the
City Clerk~ together with any changes therein or additions thereto
deemed advisable b¥ the Finance Director. Pursuant to Rule lSc2-
12 under the Securities Exchange Act of 1934 '''Rule-) the
Preliminary Official Statement is hereby deemed final and the
Finance Director is hereby authOl ized and dire~ted to provide
writt.en certification t.hereof. The exec'.ltion of !:he final
Official Stat~~ent. which shall include such changes and additions
tnereto deemed advisable by the Finance Director, in consultation
with the City's financial advisors and bond counsel, and such
information permitted to be excluded from the Preliminary Offic.a~
Statement pursuant to the Rule, shall be conclusive evidence of
t~e approval of the final Official Statement by ~he City.
SECTION 25. Further Authority. The Officers of the City are
hereby authorized and directed co execute all documents and take
sucb actions as they may deem necessary or advisable in order to
carry out and perform th~ purposes of this Resolution including
the delivery of the Bonds and the Official Statement for the
Bonds~ and the execution or taking of such action shall be
conclusive evidence of such necessity or advisability.
The Finance pirector and the Clerk a~e authorized to complete
and to approve changes in any provisions of this Resolution and
Exhibit A in order tc accomplish the delivery of any of the Bonds
on schedule; such changes may be accomplished by attachment of a
certificate, executed by both such officers. to this Resolution on
file in th~ offiCE of the Clerk.
SecTIpN 26. Application of Proceeds of Sale of Bonds. Upon
receipt of the proceeds of sale of the Bonds on the Closing Date.
the proceeds thereof shall be forthwith set aside. paid over and
deposited by the Finance Director. as set forth in EXhibit A.
sgrTIQN 27. Improvement Fund. The Improvement Fund is
hereby established as a separate fund to be held by tne Finance
Director to the credit of which deposits shall be made as required
by Sections 26 and 2B. The Finance Director shall disburse moneys
in the 1mprovement FUnd for the purpose of paying or reimbursing
the costs of acquiring and constructing the project i including but
not limited to all costs incidental to or connel'.;ted with such
acquisition and const.ruction. Disbursements from the Improvement
Fund shall be subject to ~he provisions of Sections 39 and 40
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hereof. Any surplus remaining after payment oE all the costs and
expenses of the Project shall be transferred to the Bond Fund for
the payment of principal of any Outstanding Bonds as the same
becomes due and payable or to the RedEmption Account of the Bond
f""md to be applied to the redemption of any Outstanding Bands on
any available redemption date, at the option of the Finance
Director, and the Improvement Fu~d shall be closed.
SECT10N 2B. Costs of Issuance Fund. The Costs of Issuance
Fund is hereby ~stablished as a separate fund to be held by th~
Finance Director. The moneys in the Costs of ISSuance Fund shall
be used solely for the purpose of the payment of Costs ot Issuanc~
on or after the Closing Date. Any funds remaining in the Costs of
Issuance Fund on the date that is six months after the closing
Date, shall be transferred to the Improvement Fund and the Costs
of Insuance Fund shall be closed.
S~CTIQN 29. Bond Fund and Accounts Therein.
(A) Establishmant of Bond Fund. The Bond Fund is hereby
established as a separate fund to be held by the Finance Director
to the credit of which deposits shall ~ me.ae as required by
Sections 26. 30(8) ~ 31 and~ if applic.able, Section 27 and any
other amounts required to be deposited therein by this Resolution
or the Bond Law. Honeys in the Bond Fund shall be held by the
Finance Director for the benefit of the City and the OWners of the
Bonds. shall be disbursed for the payment of the principal of. and
interest and ~ premium on, the Bonds as provided below.
(Bl Disbursem<s _ On or befol.-e each Interest Payment Date~
the Finance Director shall withdraw from the Bond Fund and pay to
the Agent the prinCipal of. and interest and any premium. then due
and payable on the Bonds. Five (5) buSiness days prior to eacb
Interest Payment Oate~ the Finance Director shall determine if the
amounts then on deposit in the Bond Fund are sufficient to pay the
Debt Service due on the Bonds on such Interest payment date. ~n
the event those amounts in the Bond Fund are insufficient for such
purpose~ t.he Finance Director shall withdraw from the P.eserve F"..md
to the extent of any funds therein che amount of such
insufficiency. and shall transfer any amounts so withdrawn to the
B::Jnd Fund. Amounts so withdrawn from the Reserve Fund and
deposited in ~e Bond FUnd shall be applied to the pa}~ent of the
Bonds_ :f. after the foregoing transfers. there are insufficient
funds in the Bond Fund to make the payments provided for in the
first sentence of the filst paragraph of this Section 29CBl. the
Finance Director shall a;rply the available funds first to the
payment of interest on the Bonds. then to the payment of principal
due on t.he Bonds. and then to payment of prinCipal du~ on the
Bonds by reason of Bands called for redemption pursuant to Section
21lAI hereof.
{C} Accounts in the Bond Fund. The following accounts are
hereby created within the Bond Fund to be administered as follows:
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Ii) The Capitalized Interest Account, into which on
the Closing Date shall be placed any amounts of the proceeds of
the Bonds usea. for t.he payment of interest on the Bonds:. When
such interest has been fully paid. the Capitalized Interest
Account shall be closed; and
tii) 'J.'he R::!dernption Account.. into which shall be
placed. from time to time. an~' amounts to be used for the r-rior
red~mption of any Outstanding Bonds, including any amounts
specified in Section 27.
SgCTIQN 30. Reserve Fund.
(Aj ~stablishment of FUnd. The Reserve Fund is hereby
estab:ished as a separate fund to be held by the Finance Director
to the ~redit of which a deposit shall b€ roade on the Closing Date
as required by Section 26. and, thereafter, deposits shall be ~de
as herein provided. Proceeds frem redemption or sale of
proper-ties with respect to which pa~'ment of delinqueT'lt Assessments
and interest thereon was made from the Reser-ve Fund.. sna11 be
c~edited to the Reserve ~~d. Moneys in the Reserve Fund shall be
held by the Finance Director for the benefit of the City and rIle
Owners as a reserve for the payment of principal of. and interest
and any premium on; the Bonds.
{B) Use of fund. Except as otherwise provided in t.his
Section 30. a.ll amounts deposited in the Reserve Fund shall be
used and withdra.wn by the Finance Director solely for the purpose
of making transfers. to the Bond f'ilnd in tbe event of any
deficiency at any time in the Bond Pund of the amount then
required for payment of the prinCipal of (including Sir~ing Fund
Payments); and interest and any premium on, the Bonds or; in
accordance with the prov~sions of this Section 30. for the purpose
of redeeming Bonds.
Ie) Transfer Due t.o Deficiency in Bond Fund. Transfers
shall be made from the Reserve Fund to the Bond Fund in tbe event
of a deficiency in the Bond Fund~ in accordance with Section 29
hereof.
{D} pa)~nt of Asses~ments. Whenever. after the issuance of
the Bonds. an Assessment is paid. in whole or in part. as provided
in the Bond Law, the Finance Director. shall transfer from the
Reserve Fund to the Bond Fund an amount specified in such
direct.ion equal t.o the product of the ratio of the original amount
of the Assessment so paid to the original amount of all
Assessments. times the Reserve Requirement.
{E) Transfer of Excess of ~eserve Requirement. ~enev~r, on
any Interest Payment Date. or on any other date, the amount in the
Reserve FUnd exceeds the then applicable Reserve Re~Jirement. the
Finance Director shall transfer on or before such Interest Payment
Date an amount equal to the excess from the Reserve Fund to the
Bond Fund to be used irl accordance with the purposes thereof.
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(Fl Transfer When B2-.lance EXceeds Outstanding Bonds.
Whenever the balance in the Reserve Fund is s'.Jfficient to retire
all the OUt5tanding Bonds. whether by advance retirement or
other ...... isE, collection of the principal and interest on tbe
~ssessments shall be discontinued and the R~serve Fund liq~idated
by the Finance Directcr in retirement of the O>.1tstanding Eonds.
In the event that the balance in the Reserve Fund at the titr,e of
liquidation exceeds the amount required to r-ec.j re all of the
fr~tscanding Bonds. the excess shall after payment of amounts due
to the Finance Director. be transferred co the City to be l.1sed in
accordance with the Act a~d the Bond Law.
SECTION 3 d • Investment of Funds. ~oneys in the Improvement
FUnd, the Costs of Issuance Fund. the Bond Fund and the accounts
t-herein, and the Rese::-ve Fund sball. whenever practicable, be
invested in Authorized Ir.vestme~ts. maturing on a date prior to
which such moneys are expected to be required. Any income
therefrom or interest thereon shall accrue to and be deposited in
the fund from which the moneys were invested. subject to t.he
provisions of Sections 30 and 41 her~of.
S~CTTON 32. Collection of Assessments, " __ nnually. the
Finance Director shall prepare a budget, as provided in the Bond
Law, which s.hall include, in add.ition to any other amounts
required by the Bend Law, statemen~s of!
(A) the moneys required for the
principa.l of and interest on t'he Sonds~
required for the call thereof;
payment of the
and any premiums
un the funds estimated to be available at the end of
the Fiscal Year for the p~rpo£e pro?ided in clause tA)~
(C) any amount which will be made avai lable
additional contributions~ which shall be budgeted
appropriated for the purpose provided in clause {A); and
from
and
(D) the balance; if any, which is to be raised b::r the
Annual Assessrnent~
The amount provided in clause (O), including provisions for
anticipated delinquencies. shall be raised by an Assessment based
on the form~la or formulae determined pursuant to the Resolution
of Ir.ten~ion, and the proceedings thereunde~ fully had and taken.
and shall be levied, entered and collected together with~ and not
separate from, general City taxes, and eniorced in the same manner
and by the same persons and at the same time, and ~ith ~he same
penalties and interest. as are other taxes for City purposes, and
all laws applicable to the levy, collection and enforcement of
taxes for City purposes, are applicable to the Assessment levy,
and t.he assessed real property~ if sold for t~es, shall be
subject to redemption in the same manner as such real property is
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redeemed from the sale for general City taxes and if not r9deemed
shall in like manner pass to the purchaser.
Any contribution or pledge which the City shall have made as
provided herein shall not conctitute a limitation upon the power
and dut~ ~f the Council to levy or collect Assessments in ~o~nts
sufficient to pay the principal. cf. ~remium. if any. and interest
on the Bonds:. which Assessments are hereby declared to be
unlimited as to rate and amount. and the duties as to ~hich are
absolute.
SECTION 33. No Advances from Available Surplus Funds. The
City shall not be obligated to advance any Available Surplus Funds
to cure dny deficiency which may occur in the Bond Fund.
sscrICH 34. covenant to Foreclose. The Cit~t hereby
covenants with and for the benefit of the owners of the Bonds that
it will order. and cause to be commenced within ISO days following
notification to the Finance Director by the Auditor of
delinquency. and thereafter diligently prosecuted. an action in
the superior court to foreclose tne lien of any assessment or
iO$tallment thereof not paid when due. pursuant to and as provid~d
in sections 8830 through S83S~ inclusive. of the Streets and
Hignways Code of the State of california l the provisions of which
are hereby incorporated herein.
sgCT;QN 35. Punctual payment; compliance With Documents.
The City shall punctually payor cause to be paid the interest and
principal to become due with r~spect to a11 of the Bonds in strict
conformity with the terms of the Bonds and of thiS Resolution. and
will faithfully observe and perform all of the conditions.
covenants and requiremoents of this Resolution and all Supplemental
Resolutions.
SBCTIQN 36. No Priority for Additional Obligations. The
City covenants that no additional bonds or other obligations shall
be issued or incurred having any priority ever the Bonds in
paym~nt of principal or interest out of the Assessments.
SfCT1QN 37. Further Assurances. The City will adopt. make.
eXE;-:ute and deliver any and all such further resolutions,
in.r -uments and assurances as may be reasonably necessary or
pre ~r to carry out the intention or to facilitate the performance
of :..his :Resolutior1, and for the better assuring and confirming
unto the owners of the Bonds the rights and benefits provided in
this Resolution.
SgCTION 3ft. private Activity Bond Limi tation~ The City
shall assure that the proceeds of the Bonds are not so used as to
cause the Bonds to satisfy the private business tests of section
141 (h) of the Tax Code or the private loan financing test of
section 141(bJ of the Tax Code.
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SECTlON 39. Private 'Loan Financir.:q Limitation. The City
shall assure t.hat the prcce-eds )f the Bonds ar-e nvt so used as t.o
cause the Bonds to satisfy the pr-ivate loan financing test of
section 141{c) of the Tax Code,
SECTION 40. Federal Guarantee prohibition. The City shall
not take any action or permit or suffer any action to be taken if
the result of the same would be to cause any of the Bonds to be
-federally guaranteed'" within the meaning of section l'.9(b~ of the
Tax Code.
SECTION 41. Rebate Requirement. The City shali take any and
all actions necessary to assure compliance with section 14S(f) of
the Tax Code, relat.ing to the rebate of excess investment
earnings~ if any~ to the federal government.
SECTIQN '2. No Arbit:rage. The City shall not 'take, or
~rmit or suffer to be taken by the Agent or otherwise, a~ action
with respect to the proceeds of the Bonds which. if such action
had been reaSonably expected to have been taken, or had been
deliberately and int.entionally taKen, on the date of issuance of
t.he 80nds vould have caused the. Ronds to be -arbitrage bonds·
.ithin the meaning oi section 14B of the Tax Code~
5U T1ON 4 J • Maint.enance of Tax-:£xemption. The City shall
take all actions necessary to aS$ur~ tne exclUSion of interest on
the Bonds from the gross income of the owners of the Bonds to the
same extent:: as such interest is permitted to be excluded from
gross income under the 'tax Code as in effect on the date of
issuance 0 f t.he Bonds.
~ECTTON" 44. small Issuer Exemption From Sank.
Nondeductibility Restriction. The City heroaby deslqna.t~s the
Bonds for purposes of paragraph {l} of section 26S{bl of the ~ax
Code and represents t.hat the Bonds do not constitute private
activity bonds as defined in section 141 of the Tax code. and that
not more than SlO,OOO~OOO aggregate principal amoupt of
obligations the interest. on .... hich is excludable (und.er section
l03{a) of the Tax Code) f~om gross income for federal income taxes
(other than private activity bonds. as defined in section 141 of
the Tax Code, except qualified SOl tel ()) bonds as defined in
section 145 of the Tax Code). including: the Bonds. has been or
shall be issued py the City. including all subordinate entities of
the City; during the calendar year 19B3.
SECTION 45. AJnendment. rlithout the con.sent of the owners of
the Bonds, the City hereafter may amend this Resolution to add,
modify or delete provisions if the same is necessary or desirable
to assure compliance with Section 148(f) of the Tax code relating
to rebate of excess investment earnings or as otherwise required.
to assure the exempc.ion from federal income taxation of interest
on the Bonds.
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C,ECiION 46. f'u.."'lds and Account.s, Any fund or account
required by this Resolut.ion to bl!! established by the Finance
Director and held and maintained by t.he Finance Director or the
Ag~nt may be ~stablished and main~ained in the accounting records
of the Finance Director or t.he Agent. either as a ftJ.nd or an
account, and may. for the purpcses of such records, any audits
thereof and any reports or st.atements with respect thereto, be
treated Either as a fund or an accoun~; but all such records ~ith
respect to all su.ch funds and accounts sr.all at all times be
maintained in accordance with sound accounting practices and with
due regard for the protection of tr.e security of the Bonds and the
rights of every OWner thereof.
SECTION 47. Partial Invalidity. If anyone or !!lore of the
covenants or agree:nents. or portions thereof, provided in this
Resolution to ~ performed en the part of the City. the councilor
the Agent should be contrary to law, t:hen such covenant. or
covena~ts, such agreemene or agreemenes, or such portions thereof.
shall be null and void and shall be deerneC! separable from the
remaining co~enants and agreements or portions thereof and shall
in no way affect th~ validity of this Resolution or of the oonds:
but the OWner shall retain all the rights and benefits accorded to
t.hem under applicable provisions of law. The Council h-=reby
declares that it would have adopted this Resolution and each and
every other section, par aqraph , slibdivision, sentence. clause and
phrase hereof~ and would have authorized the issuance of the Bonds
pursuant hereto~ irrespective of the fact that anyone or more
sections, paragraphs; SubdiviSions, sentences, clauses or phrases
of this Resolution Qr the application thereof. to any pe.son or
circumstances may be held to be unconstitutional. unenforceable or
invalid.
SECTIQN 48. Defeasance. The Bonds shall no longer be deemed
to be outstanding and unpaid if the City shall have made adequate
provision for the payment, in accordance with the Bonds and thiS
Resolution, of the principal. interest and premiums, if any. to
become due thereon at. ma~urity or upon call and redemption prior
to ~turity. Such provision shall be deemed to be ade~late if the
council shall. on behalf of the Assessment Distr ice. have
i~Tevocably s~t aside. in a special trust fund or accoun~~ cash
or Federal Securities which when added to the interest earned or
tt ~ earned thereon shall be sufficie~t to make the payments as
tr -/ become due and l:O redeem any Bonds OUtstanding on the
earliest possible redemption date.
SEI"'TIQN 49. validity of Bonds.
authorization and issuance of the Bonds
upcn the completion of the acquisition of
performance by any person or such person's
to the Project.
The validity of the
shall not be dEpendent:
the Project or upon the
obligation with respect
SECTION sQ. Pledge of Assessments. The !tonds shall be
secured by a first pledge (~hich pledge shall ~ ef!ected in the
manner and to the extent herein provided) of all of the
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Assessments and all moneys deposited in the Bond Fund and the
Reserve Fund. The Assessments and all moneys de~osited into such
funds (except as otherwise provided herein) are hereby dedicated
tc the pa~ent of the principal of. and interesc and any premium
on. the Bonds as ~rovided herein and in the Bond Law until all of
the Bonds have been paid and retired or until moneys or Federal
Securities have been set aside irrevocably for that purpose in
accordance with Section 48.
SECTION 51. 'Repeal of Inconsistent Resolutions. Any
resolution of the council. and ar::y part of such rEsolution ..
inconsistent with thiS Resolution. is hereby repealed to the
extent of such inconsistency.
sEcTIQN rq. Authority of Finance Director. All actions
mandated by this Resolution to be per-formed by the Finance
Director may be perforD'led by the designee thereot or such other
official of the city or independent contractor. consultant or
trustee duly authorized by the City to perform such action or
actions in furtherar~ce of all or a specific portion of the
requirements hereof.
SHcrIpH 53. Certified Copies. Th'!' Clerk shall furnish a
certified copy of this resolution to the Pinance Director. to the
Agent~ to ~ and to the Auditor of the County.
SECTIQN 5~t. Effective Oate of the Resolution. This
Resolution shall become effective upon the date of its adoption.
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INTRODl]CED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
A'l'TEST: APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:
JONES HALL HILL & WHITE
A Professional Law Corporation Cit.y Kanager
By:
Stephen R. casaleggio.
Bond Counsel
Director of Finance
Senior Assistant Cit.y Attorney
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Limited Oblig«tion Improvement Bond.
City of Palo Alto
CZllifcrnia Avenue parking A •• tII.lmeue Diltrict No. 92-13
ASllea.ment Bond. of 19'3
TermS and COOdjLiQQS
The following terms and ccnditions shall be part of the attached,
Resolution of the City Council of the City of Palo Alto Providing
for the Issuance of Bonds and Directing Levy of Annual Assessments
to Pay the Principal and Interest Thereof ithe -Resolution-) as if
set forth in the text thereof:
principal Matllrjcies: Under section 11, the maturities and rates
of interest of the Bonds are as follows:
SAuber?
1995
1996
1997
1998
1999
200C
2001
2002
2003
2004
2005
ptlpt"\ooJ 'MPm
$55,000.00
55,000.00
60,000.00
60,000.00
65,000.00
70,000.00
70,000.00
75,000.00 ao,ooo.OO
85,000.00
90,000.00
Ip-e;"r PMc , , fi'ntembtr ? PI ins i WIll bllgrnt [lU:""t
2006 $95,000.00 • 2007 100,000.00
2008 110,000.00
2009 115,000.00
2010 120,000.00
2011 130,000.00
2012 140,000.00
2013 150,000.00
2014 160,000.00
2015 170,000.00
peposita Of Funds· Under Section 26. on the ClOSing Date the
following amounts will be deposited to the following funds:
$ to the Improvement Fund:
$ ________________ to the Costs of Issuance Pund;
S to the Bond Fund, being $ ____ _
to the Capitalized Inte4est
Account. plus S of accrued
interest; and
$_-----to the Reserve FUnd.
ZltlIrBI'I' ...
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Regl.te.r.d
Number A-
(FORM OF BONO]
United: State. of America
State of califQrni&
County ct Sante. Clara
Limited Obligation Improvement Bond
City of Palo Alto
llegl.tered .... , ...
California Avenue Parking Al!u!IIe •• ment District No. 9~ ·13
Assea.ment .Bonds of 1"3
Interellt :Rate Maturity Date Bon4 Det. COSIP
IlBGIS'l'EIlBD OWNEIl:
DOLLARS···
under and by virtue of the Bond Plan G. Section 13.16.150 of
Char _er 13.16 of Title 13 of the palo Alto Municipal Code rtne
·Act·l. the City of Palo Alto. California (the ·City~), will. out
of tha Bond ~A. as defined in Resolution No. . providing
for the issuance of the Bonds. adoDted by the Council of the City
on October 25. 1993. (the ·Resolution~) pay to the Registered
owner named aboVe or registered assigns on the maturity date
stated above. in the principal amount stated above in lawful money
of the united States and in like ~anner pay in~erest at the rate
per annum stated above, payable semiannually on Karch 2 and
September 2 in each yes.r commencing March 2. 1994 (each an
• Interest Payment Date~). This Bond bears interest from the
Interest Payment Date next preceding its date of auth-cntication
and regist.ration unless it is authenticated and registe-red eil
prior to an Interest p~ent Date and after the close of business
of the fifteenth day preceding such Interest Payment Date, in
Which event it shall bear interest from such interest payment
date, or (iiI prior to the close of business on the fifteenth day
of the month preceding M~ch 2. 1994. in which event it shall bear
interest from its date, until payment of such principal sum shall
have hE-en discharged. Fo:: the period during which Depository
Trust Company of New York. New York, '-DTe-) or any successor
depository, is the Registered OWner of this Bond. DrincipaL
rede.-nption premiums, if any. and int.erest shall be paid by the
Ci ty to DTC. or such successory depository, by wire transfer;
provided that principal and redemption pre_miurns, if any, shall be
paid upon surrender to the City, at the Corporate Trust Department
of Bank of America National Trust and Savings Association, as
Authentication Agent. Transfer Agent -" Registra,r a.nd Paying Agent
EUIlII!' 8
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(the -Agent-.I in San Francisco. California, or matured Bonds or
Bonds called for redemption prior to maturity. As to any
Registered O\.mer hereof other than D'tC or SUCCEssor depositor..{.
the principal and redemption premiums. if any, shall be payable at
the Qffic~ of the Aqen~ specified above and the interest shall be
paid by check mailed to PTe, or any successory deposito!Y1 or in
the event of termination of the book-entry system, to the
Registered Owner hereof at t~e Registered O~er's address as it
appea.rs on the records of the Agent.. or at such address as may
have been filed with the Agent, for that purposes, as of the 15th
day immedia'!:ely preceding each interest payment date; provided
l"4o .... ever. upon t"equest in 'Writin<J of a Registered owner cf
$l~ ODD, 000 or more in aggrega.te pl"incipal amount of Bonds, such
request having been made before fifteen days preceding an Interest
payment Date. sucb interest shall be paid on such Interest Fayment
Date by wire tra.nsfer in .irnmediat.€'ly available funds. to an account
in the continental United States designated by e:uch Registered
owner to tbe Agent.
ftEFEaENCE IS HERE.!j'i MADE TO THE FURTHER PROVISIONS OF THIS
BOND SET FORTH ON TN'::: REVERSE SIDE HEREOF WHICH StiA..LL FOR ALt·
PURPOSES HAVE THE SA.~ EFF.£C'r AS THOUGH FULLY S£T FORTH HEREIN.
This Bond will continue to bear interest after maturity at
the rate above SLated; provided that it is presented at maturity
and payment hereof is refused upon the sole ground that there are
not sufficient moneys in th~ Bond FUnd with whicb to pay same. If
it is: not presented at. maturity, interest hereon will run until
maturity.
~~s Bond shall not be entitled to any benefit under the Act
or the Resolution or became valid or obligatory for any purpose,
until the certificate of authentication and registration hereon
endors~d shall have been dated and signed t1,y the Agent.
THE BONDS ARE QUALIFIED TAX EXEMPT OBLIGATIONS, DESIGNA~ED BY
THE CIT" IN PURPOSES OF SECTION 265 (bl OF THE INTERNAL REVENUE
CODE OF 1986, AS AMENDED.
BUIBI'I' 8
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IN WITnSS WRBUO,., the City of Palo Alto ha:: .::a."..I-s~d th~
Bond to be signed by manual or facsir.iLle signatu:-e by the Finance
Director of the City ~~d attested by its City Clerk and has caused
its corporate zeal to be reproduced in facsimile hereon all as of
the day of • 19_.
City clerk
(SEAL)
CITY OF PALO ALTO
EXBIBU' B
Page 3
Finance Director
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CER7'IF!CAT<; OF' AU'rliENTlCATtON AND IU!;crS7'R!,'rION
This is one ~eS01Utian. Which
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All capitalized terms herein are used wi th t:he meanings
assigned to them in the ~esolution.
This Bond is one of several annual series of bonds of like
date l tenor, and effect, but differing in amounts, maturities and
interest rates, issued by !.he City under the ,",ct and the
Resolution in the aggregate principal amount of Two Millio~ Fifty
Five Thousand Dollars ($2,055,OOO) for the purpose of providing
means for paying for th~ improvements and acquisitions described
in t.he proceedings. cono.'lct.ed pursuant to Resolution of Intention
NO. 7230 (the -Resolution of Intention-) adopted by the Council on
August 9, 1993, and is secured by the mon~s in the Bond Fund and
by annual special assessments made for the payment of the
improve.ments and acquisition-=>, and, including principal and
interest~ is payable exclusively out of said fund.
This Bond is transferable by the Registered OWner hereof. in
person or by the Re9istered o-",,-ner' s attorney duly a1Jthori.:ed in
writing~ at the office of the Agent~ subject to the terms and
condit-ions provided in the Resolution. including the paYt!lel'lt of
certain charges. if any~ upon surrender and cancellation of this
Bond. O'pOn Sl.lch transfer. a new registered Bond or Bonds .. of a."1)o'
authorized denomination or denominations, of the same ~aturity.
and for the same aggregate principal amount, will be issued to ~e
t.ransferee in exchange het'efor~
Bonds shall be registered only in the name of an individual
tincl\l(Hng joint owners). a corporation, a partnership, or a
trust.
Neither the City nor the Agent shall be required to make such
exchange or registration of transfer of Bonds during ehe fifLeen
(lSI days immediately preceding any March 2 or September 2.
The City and the Agent ~ay treat the Registered owner hereof
as the absolute owner fer all purposes, and the Ci~y and the Agent
shall not be affected by any notice to t~e contrary.
The Bonds shall be subject t.o call and redempt ior:.. at the
option of the Ci~y. as a whole or in part, in inverse numerica~
order .. on any interest date and prior to their respective dates of
maturity, at the principal amo'Unt thereof aZld accrued interest
thereon to the date of redetnPt.ion, plus a redemption premium of
three perc~nt (3\); calculated as a percentage of such principal
amount.
txIIlBl'" B
page 5
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1'1otice of redemprion of the Bonds shall be given to the
Registered OWners thereof at such OWner's address as it a~pears on
the regist.ration books of the Agent by regist.ered or certified
mail at least thirty {3D) but no more than sixty (60) days prior
to the date of call. No interest shall accrue on th~ B~nds called
for redemption after the redemption date specified in the notice.
The Bonds are limited obliga~ion improvement bonds because,
under the Resolution l the City has no obligation to advance any
Available Surplus Funds of the City to cure any deficiency that
may occur in the Bond Fund.
B%BIBIT B
page 6
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ABBREVIATIONS
The following abbreviations. when used in the inscription on
the face of this Bond, shall be construed as though they were
writt~~ out in full according to applicable laws or regulations:
TEN COM
common
as tenants in UNIF GIFT MIN ACT
TEN ENT --as tenants by the
entireties
JT TEN --as joint tenants
with
right of survivo~ship
and not as tenants in
common
Custodian
\c~stJ _____ {Minor)
under uniform Gifts to Minors
Act
(State)
ADDITIONAL ABBREVIATIONS MAY ALSO SE USED
THOUGH NOT IN THE LIST ABOVE
ASSIGNMENT
For value received. the ~~dersigned do(es) here~ sell, assign and
transfer unto
(Name. Address and Tax Identification or Social security
Num,'='er of Assignee)
the within Bond and hereby irrevocably constituteCsJ and
appoint(s} 70~~~--~--~--~----' attorney. to tran3fer the same
on the reqistration books of __ ~ ______ ~~~~~~. as Transfer
Agent, Authenticating Agent. Registrar and Paying Agent; with full
power of subst.itution in the premises.
Signatur~ Guaranteed:
NOTICE: The signature on this
assignment must
correspono wit.h the
name(s) as written on the
face of the within Bond
in every particular
without alteration or
enlargement or any change
whatsoever.
BDlIBI'l' 8
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OFFICIAL NO'l'ICI OF SALE or
$2.055.000
Limited Obligation Improv~ment Bgnds
City of •• 10 AleO
California AVenue parking A •• essment Di.triot Ro. 92-13
Ae •• 1IJ8me.c.t Bonds of 1993
NOTICE .IS HEREEY GIVEN by the City of Palo Alto (the ·city·).
St.ate of california~ t.hat sealed proposals fer-the purchase of
$2.055,000 par value of the City's assessment bonds described
below. will be recei·ted at the place and up to the time below
specified:
TIM!.:
PLACE:
HAIt.ED
BIDS:
ISSUE,
Monday, November 22. 1993 at ~C:OD o'clock
a.m. (Pacific Standard Time'.
offices of the bond counsel. Jones RaIl
Hill & White, A Professional Law
Corpora~ion. Four Embarcadero Center. 19th
Floor. San Francisco. California. 54111.
City of Palo Alto. in care of: Jones Hall
Hill , White. Four Embarcadero Center. 19th
Floor, San Francisco. california. 94111 -
• proposal for City of Palo Alto Limited
Obligation Improvement Bonds. California
Avenue Parking Assessment District No. 92-
13~ Assessment Bonds of 1993-.
$2.055.000 principal amount assessment
bonds. dated the date of closing (Which is
expected to be • 1993) and
d~signated. -Limited Obligati~~ Improvement
Bonds, City of Palo Alto California Avenue
Parking Assessment District No. 92·13.
Assessment Bonds of 1993-{the -Bonds·).
MATURITIES: The bonds will mature on September 2 in
each of the years and ir. the amounts as
follows:
BIUIBI'I' C
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Sert=bu .2 priPGiNl &:pppet Septerp'c' pr;p-;-t 1 ""V'!~.
1995 $55.000,00 2006 $95.000,00
1996 55.000,00 20Q7 100.000.00
1997 60.000,00 2008 110.000,00
1398 60.000,00 2009 115.000,00
1999 65.000,00 2010 1:10.000,00
2000 70.000,00 2011 130.000,00
ZOOl 70.000,00 2012 140.000,00
2002 75.000,00 .01l 150,000,00
200l 80.000,00 2011 150,000,00
2004 85.000,00 2015 170.000,00
2005 ~O.OOO,OO
D:BSCkIP'2'IO!l OF' T'B.I BONDS
Purpo •• : The proceeds cf the Bonds ..... ill be applied by the
~ity to finance the acquisition and con$tTUction of public parking
improvements consisting of a parking structure within the City'S
california Avenue Parking District. to the payment of capitalized
interested on ~e Bonds. to the creation of a reserve fund for the
Bonds and to pay costs incidental to the acquisitions ar.d
construction and the issuance of the Bonds.
Fora of Bonde: The Bonds will be delivered in book entry
only dated as of the date of closing and registered in the name of
cede & Co .• as nominee of The Depository ~rust company; New York.
New York (-OTC')~ DTC will act as securities depository for the
bonds. Individual purchases of the Bonds will be made in book
entry form only. in principal amounts of $5;000. or any integral
multiple t.hereof. paYtnent of principal, redem.pt.ion price; if
applicable. and interest represented by the Bonds is to be made to
purchasers by PTe through the OTC participants (as such term is
used in the official statement) ~ PUrchasers will not receive
physical delivery of Bonds purchased ~i them.
Rayment Provisions: Inte:rest represented by the Bonds lrIill
be payable on March 2, 1~94. and on September 2 and March 2 in
each year thereafter <t.he • Interest. Payment Dates·). to t.he
registered owners by check or draft Of the Bank of America,
National Trust and Savings Association as paying Agent (the
·~gent·) or~ in the case of the owner of Bonds in an aggregate
prinCipal amount of at least $1,000,000, at the written request of
such owner by wire transfer. principal and premium {i f Any)
represented by any Bonds wi 11 be paid upon presentation and
surrender thereOf at the corporate trust office of the Agent in
San Francisco~ California. BoOth the principal, interest and
premium (if any) represented by the Bonds are payable in lawful
money of the united States of America.
lUJIIIU' C
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Sec'ilrity ~or tbe BODCh: The Bonds are secured by annual
s~ecial assessments. the proceeds of which constitute a trust func
for the redemption and payment of the principal of the Bonds and
the interest the,reon. 11.11 t.he OOr.ds are secured U.i the monies in
the Bond Fund and the Reserve FUnd created by the proceedings for
the Bonds and by the annual spEcial assessrnen~s levied by the
City. 'The Bonds. including principal and interest. are payable
exclusively out of the Bond Fund. The assessment$: const.it.ut-e
1 iens or. the lots ar.d parcels and c.he assessmenr_s are on parity
with the lien for ~eneral taxes. They do not. however, constitute
a personal incebtedness of the respective owners of the lots and
parcels.
The city has det~rmined not to obligate itself to advance a~y
available funds from the City treasury to cover any deficLenc:y or
delinquency which may occur in the Bone Fund by reason of the
failure of a property owner to pay an annual assessment
installment.
The Bonds are not secured ~ the general taxing power of the
City. the State of California or any ~f its political
subdivisions. nor is the full faith and credit of the City, the
State of California or any of its political subdivisions pledged
to the payment of the Bends.
lfIaz-Bze&pt StatulI: In the opinion of Jones Hall Hill ,
White. ~ Professional Law Corporationz Bond counsel to the City,
incerest represented Oy the Bonds, is excluded from gross income
for federal income tax put'POses and is not an item of tax
preference for purposes of the federal individual and corporate
alternative minimum taxes, although it is included in certa.in
incom.e and earnings in computing tlle al ternati ve minimum tax
imposed on certain corporations. The Bonds are ·qualified tax
exempt obligaeions· designated by the City for pur~oses of Section
265(b} of the Internal Revenue Code of 1986~ as amended. In the
furt.her opinion of Bond Counsel, suell interest is exempt from
california personal income taxes. In the event that prior to the
delivery of the Bonds Ca) the interest on other obligations of the
same cype and character ehall be declar~d to be taxable ieither at
the time of such declaration or at any future date) under any
federal income tax laws. either by the terms of such laws or by
rulin9 of a federal income tax authority or official Which is
followed by the Internal Revenue Service, or by decision of any
federal court, or (b) any federal income tax law is adopted which
will have a substantial adverse effect upon ownexs of the Bonds as
such. the successful bidder for the Bonds may. at. its aption,
prior to the tender of ehe Bonds, be relieved of its obligation
Wlder the contract to purchase the Bonds, and in such case the
deposit accompanying it.s proposal will be returned.
Redemptiqn; The Sonds shall be subject to redemption prior
to their respective ~aturity dat~s. at the option of the City, as
a whole, or in part in inverse or-der of maturities and by lot
within a maturity, from any source of available funds~ on any
ElI:BrBr'r C
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Interest Payment Date plus a redemption preeLium of 3\: of the
principal amount to be redeemed 'On or at the Redemption Price,
pl'JS accrued interest th,=reon to the date of redemption.
Notice of redemption of the Bonds shall be given to the
Registe~ed owners thereof at such owner's address as it appears on
the registration books of the Agent by regiS~eI-ed or certified
mail at. least thirty (30) but no m..:lre than sixty (60) days prior
to the date of call. No ir.tere5~ shall accrue on the Bonds called
for redemption after the redemption date specified in the notice.
Purt.her Information: A copy of t.he preliminary Official
Statement describing the Bonds, and any other information
concerning the proposed financing, will be furnished upon request
to the financial consultant to the City. Miller &: SC"hroed~r
Financial. Inc .• 5994 West Las Pcsitas Boulevard. Suite 20~.
Pleasanton, California~ 94556. telephone (510) 463-1212.
'rEltIfS 01" SUlI
tntcrecrt llAtol; Bidders must specify the rate or rates of
interest: which shall be payable with respect to the Bonds.
Interest with respect to the Bonds is payable semiannually on each
March 2 :and Sept.ember 2~ commencing March 2. 1994. Bidders will
be permitted to bid different rates of interest but (a) each
interest rate specified in any bid must be in a multiple of one
twent.ieth (1/20; or one-eighth {lIB) of one percent; (b) interest
with respect to no Bond shall be payable at more than one rate of
interest: (cl interest with respect to ea::h Bond shall be computed
from the date of delivl:!ry of the Bonds (which is expected to be
____ ~~~. 1993). to its s~ated maturity date at the interest rate
specified in the bid. payable semiannually as set forth above; Idi
interest with respect to all Bonds maturing at ~. one time shall
be payable at the same rat.e of interest: Cel t.he difference
between the maximum and minimum rates of interest specified in a~y
bid may n~t exceed three percent (34). and If) no rate so named
may be less than the rate named fOL any preceding maturity. and no
bid will be accepted Which contemplates the waiver of any interest
or other concession by the bidder as a substit.ute for payment in
f~ll of the purchase price. No faxed bids will be accepted.
Award; 'arm of ai4~ The Bonds shall be sold for cash only.
All bids must be for not less than all of the Bonds hereby offered
for sale and each bid shall state that the bidder offers par and
accrued interest to the date of delivery. the premium. if any~ and
the rate or rates not to exceed those specified herein. at which
the bidder offers to buy the Bonds. Each bidder shall state in
its bid the total net interest cost in dollars and the average net
interest rate determi'led thereby. W'hich shall be considered
informative only and not a part of the bid. Each bid. together
with the bid check. must be in a sealed envelope, addressed to the
City of Palo Alto with the envelope and bid clearly marked
EXHIBIT C
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-Proposal for Limited Obligation
A.lto. California Avenue parking
Assessment Bonds af 1993-.
Improvement. E;onds, City of Palo
Ass~ssment District. No. 92-13.
p.r;cmipotion pf Jcat 1114; The Bonds will be awarded to
the best responsible bidd€.r or bidders considering the interest
rate or rates specified and the premium offered. if any + The best
bid will be determined ~J deducting the amount of tb~ premium bid
tif any) fzom the total amDun~ of interest which the City would be
required to pay from the date of the Bonds t;.o the respective
maturity dates thereof at the rate or rates specified in che bid
and the award will be made on the basis of the lowest net interest
cost to the City.
Bight Of Raj.s;:lgPo The City ::eserves the right, in its
discretion~ to reject any and all bids and to t.he ext.ent not
prohibit.ed by 1a",' to waive any irreg;ula.ricy .or inforw.ality in any
bid.
,1,. pf A .. ;g; The Ci~y council of the City will award ~
the sale of t.he Bonds or reject all bi.ds not lat.er than 11:59
o~clock p.m. on November 22. 1993.
lias. pf poliy.ryJ Clpcellatipn for Lat. p9l.iyery; It
is expect.ed t.hat the Bonds will be delivered to the successful
bidder in San Francisco within thirty (30) days from the date of
sale thereof. The successful bidder shall have the right. at such
bidder'S option. to cancel ~he con~ract of purchase if the Bonds
are not tendered for delivery vi thin sixty C60} days from the date
of the sale thereOf, and in such event the successful bidder shall
be entitled to ~he return of the deposit accompanying the bid.
aid !)IpgliC' A good fai.th deposi.t (·Deposit·) in the form
of a certified or cashier's check or a financial surety bond (a
-FinanCial SUrety Bond-) in the amount of $25,000.00, payable to
the order of ·ci.ty of Palo Alto·, is required for each bid to be
considered. If a check is used. it must acco~l1Y each bid. If a
Financial Surety Bend is used. it must be from an insuTance
company licensed to issue such a bond in the State of Cal~fcrnia.
and such bond must be submitted to the City 0::-the City's
financial advisor prior to the opening of the bids. The Financial
Surety Bond must identify each bidder whose Peposit is guaranteed
by such Financial Surety Bond.
If the &onds ace awarded to a bidder utiliz:ing a Financial
Surety ~nd, then that purchaser {-Purchaser-~ is required to
submit its Deposit to the City in the form of a cashier'S check
Cor wire transfer such amount as instructed by the City) not la~er
than 3:30 p.llI. Pacific Standard Time. on the !"Iext business day
f'llllowing the award. If s,J,ch Deposit is not received by that
t.iDlle, the Financial Surety Bond may be drawn by the Ci.t.y to
satisfy the Deposit requirement. Ir:, the even~ the PUrchaser fails
to honor its accepted bid~ the Deposit will be retained by the
City.
BXB.'IBl"'1' C
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If the Bonds are a\\"arded to a bidder utilizing a certified or
cashier's check, the check accompanying any accepted proposal will
be held by the City following the award to the successful bidder.
If. after the award of the Bonds the successful bidder fails to
complete i'ts purchase on the terms stated in its proposal. the
check will be cashed by the City and the proceeds thereof ~ill be
retained by the City.
If the successful bidder completes its purchase of the aonds
on the terms stated in its proposa!, its Deposit will be applied
to the purchase of the Bonds on the date of delivery of the Bonds.
The check accompanying each unaccepted proposa 1 will be made
available for recovery by-each unsu.ccessful bidder. No interest
will be paid upon the aeposit made by any bidder~
Certification ot Iteoffering Price: Except for financial
institutions aCq".Jiring the Bonds for their own portfolios. the
successful bidder-shall be required, as a condition to the
delivery of the Bonds tr,l" the City, to deliver to the City a
certificate, in form and substance satisfactory to the City.
stating (i) that. as of the date of award. the Bonds were E~cted
t.o be reoffered in a bona fide public offering. Iii) the initial
offering price at which a substantial amount (at. least 10') of
each maturity of the Bonds ~ere sold to the public~ and (iii) that
no Bonds of a single maturity were offered at one price to the
general public and at a discount from that price to institutional
or other investors~
C1QDi'A9 ,.par. lOP" ,fist ipa' Each proposal will be
understOOd to be conditioned upon the City furnishing to t.he
purchaser. without charge. concurrently ""ith payment for and
delivery of the Bonds~ the following closing papers. each dated
the date of delivery:
(a) The op1n10n of Jones Hall Hill & White, A
Professional Law Corporation, s~~ Francisco, California, Bond
Counsel. approving t.he validity of the Bonds and stating
t.hat, under existing la\l," , interest on the Bonds is excluded
f~om gross income for federal income tax purposes and is not
an item of preference for purposes of the federal alternative
minimum tax imposed on certain individuals and corporations;
and that such interest is also exempt from personal income
taxes of the State of California under present state ir,come
tax laws~ Other federal tax consequences to owners of the
Bonds~ if any. is not addressed in the opinion. A .:opy of
the opinion of Bond Counsel, certified by the official in
whose office ehe original is filed. will be printed on each
of the Bonds at no charge to the purchaser.
(1:1) A certificate of the City certifying that on the
basis of the facts. estimates and circumstances in existence
on the date of issue, it is not expected that the proceeds of
BDrlll!!' C
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the Bonds will be used in a manner ~hat would cause the bondE
to be arbitrage bonds;
(c) A certificate of tt~ City, signed by officers and
representatives of the City. certifying that the officers and
representatives have signed the Bonds 'Whether by facsimile or
ma:1.ual signature~ and that t.hey were respectively duly
authori%ed to execute the same;
(d) The receipt of the City showing that the purchase
price of the ~onds. including interest accrued to the date of
delivery thereof, has been received ~~ th~ City;
(el A certificate executed by legal counsel for the
City, certifying that there is no Kn0wn litigation threatened
or pending affecting the validity of the Bonds; and
(f) A certificate of the Cityz signed by an officer of
the City, accing in such officer's official capacity. to the
effect tha~ at the time at the sale of the Bonds, and at all
times subsequent thereto up to and including the time of the
delivery of the Bonds~ the Official Statement rela~in; to
the aonds did not contain any untrue statement of a material
fact or omit to state a material fact n~cessary to make the
statements therein. in light of the circumstances under which
th~ were made, not misleading.
CoStE lumbar.; It is a.nt.icipated t.hat CUSIP nlJlUbers will
be printed on c..he Bondi>, but neither the failure to print. such
numbers on any Bond nor error with respect thereto shall
constitute cause for a failure or refusal by the purchaser thereof
to accept delivery of and pay for the Bonds in accordance ~ith ~he
terms of the purchase contract. All expenses of printing CUSIP
numbers on the Bonds and the CUSIP Service Bureau charge for the
assignment of the numbers shall be paid by the successful bidder~
california Debt IOvi.ory Cgmmi •• ioQ; The successful
bidder will be required. pursuanc ~a State law. to pay any fees to
the California Debt Advisory Comndssion {"CDAC-J • CDAC will
invoice the successful bidder after the closing of tbe Bonds.
ottist,! itat_lRent· The City has authorized a preliminary
Official Statement relating to the Bonds; a copy of which will be
furnished upon request to Miller & schroeder FinarJcial r Inc.~ 5994
West Las Positas Boulevard. Suite 205. Pleasanton, California.
94566. telephone (510) 463-1212. Such preliminary Official
Statement is in a form ·deemed final-~ the City for the purposes
of SEC Rule 15C2-12tb)tl) but is subject to revision. amendment
and completion. The City 'Will furnish to the successful bidder,
at no charge~ up to one hundred (1001 copies of the final Official
Statement for use in connection with a~ resale of the bonds~
BUllIU C
page 7
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DATED AS OF October 26, 1993 and GIVEN by order of the City
Council of the City of Palo Alto. California, adopted October 25.
1993.
/5/
City Clerk of the City of Palo Alto,
S~ate of California
HUUT C
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OFfICIAL BIP lORM
PROPOSAL FOP. THE PORCBASB OF .$2.055,000
LIMITED OBLIGATION IMPROVEMEN~ EONDS
CITY 07 PALO AL'1"O
CALIFORNIA AVENUE P~XING ABSESSKBNT DIS~RIC~ NO. 9J-13
ASSESSMENT BONDS 0]1' 1993
Honorable City Council
of ehe City of Palo Aleo
clo Jones Hall Hill & White
A Professional La",' Corporation
Four Errbarcadero Center~ 19th Floor
San Francisco; CA 94111
Cou.n.c il Members:
We offer to purchase the captioned assessment bonds of the
City of Palo Alto (the "Bonds·) in the principal amount of
$2.055.000. dated the date of delivery thereof (expected to be
"-:-:-:-:-::-::-:;--::::-'::7-1993J. in the denominatlon of $5,000 cr any
integral multiple thereof, and maturing and bearing interest as
follows,
Year Principal Interest Year Principsl Interest
! S'otrmb.:r 21 ~ IIAI;,a... (Scpt-embe r , I ~ a..tJt
1995 $55,000.00 , 2006 $95.000.00 t
1996 55.000.00 2007 100.000.00
1997 60.000.00 2008 110.000.00
1998 60,000.00 2009 115.000.00
1999 65.000.00 2010 120.00C.00
2000 70.000.00 2011 130.000.00
2001 70,000.00 2012 140.000.00
2002 75.000.00 2013 150.000.00
2003 80,000.00 .2014 160.000.00
2004 85.000.00 2015 170,000.00
2005 90.000.00
We will pay therefor the prinCipal amount thereoL less a
discount of $ (not to exceed 2') 4
Bidders must specify the rate or rates of interest which
shall be payable ~ith respect to the Bonds. Interest with respect
to the Bonds is payable semiannually on each Karch 2 and september
:2. commencing March :2. 1994. Bidders will be permitted to bid
different rates of interest but (a) each inter.est rate specified
in any bid must be in a multiple of one-twentieth (1120) or cne
eighth (/8) of one percent; (bJ interest .. ith respect to no Bond
shall be payable at more than one rate of interest; (e) interest
with respect to each Bond shall be computed from the date of
original delivery of the Bonds (which is expected to be
1993). to its stated maturity date at the interest
Z'.J:B.IBIT D
page 1
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rate specified in the bid, payable semiannually as set forth
above; (d) interest "':A'ith respect to all Bonds maturing at an:,r' one
t1me shall be payable at the same rate of interest; (~J the
difference between the maximum and minimum rates of int;erest
specified in any bid may not exceed three percent (3'); and {f) no
rate so named may be less than the rate named for any precedi~g
maturity~ and no bid ",-ill be accepted which contemplates the
wai VeO: of any interest or other conc.:!ssion by the bi.:ider as a
sub5titute for payment in full of the purchase price.
This proposal is made sub:; ect to all of the terms and
conditions of the Official Notice of Sale for the Bonds dated as
of October 26~ 1993. all of which terms and conditions are made a
part hereof as fully as trlough set forth in full in this proposal.
This proposal is subject to acceptance on November 22, 1993
by the City Council of the City of ralo Alto as specified in the
official Notice of Sale.
There is enclosed herewith a certified or cashier'S check for
S payable to the order of the City of Palo Alto or
Financial Surety Bond as defined in the Official Notice of Sale.
We bereby request that printed
official Statement (not to exceed 100 copies)
Bonds be furnished to us in accordance with
Official Notice of Sale.
I!XRIBIT D
Page 2
copies of
pertaining to
the terms of
the
the
the
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The following is our comp'l.ltation made as provided in the
Notice Inviting Bids. but not constituting any part of t.he
foregoing. of the net interest cost under the foregoing proposal,
to wit:
Gross Interest Cost
Plus Discount
$_$ __
Net Interest Cost
Net I~terest Rate
$_
--'
The following is a list of the members of our account on
~ ... hose behalf this bid is made:
Respectfully submiteed.
Name of Sidder:-==================== Account Manager:
~'---------------------Address' ________________________ __
Nam~. address
numbers of
representative
pror:edures:
and telephone
bidder's
for closing
Name: ____________________________ _
Address' ________________________ __
Phone; ____________________________ __
lIX1IIllI'l' tl
Page 3
NOTICE INVITING BIDS
$2,055,000
LrKI~BD 03LIGA~ION IKPaOVEKEN~ BONDS.
CI'l'Y OF PALO ALTO
CAL:IFOllNIA AV£NOB PARIUNG ASS.BSSl(lU.:-r DISTRICT NO. 92 ·13
ASSI!SSXEII'1' BOI/IlS OF lH3
NOTICE IS HEREBY GIVEN. that the City Council of the City of
Palo Alto. State of California, invites bids on $2,055.000
principal amount of Limited Obligation Improvement Bonds. City of
Palo Alto. California Avenue parking Assessment District No. 92-
13. Assessmen~ Bonds of 1993. Bids will be received on
MONDAY. HOVBXB~R 24, 1993
at 10:00 a.m. Pacific Standard Time. in the offices of Jones
Hall Hill & White; A Professional Law Corporation. Four
Embarcadero Center. 19th Floor. San Francisco, California. 94111,
(415) 391-5780. and the sale will be awarded by order of the City
Council of the City of Palo Alto not later than Ilt59 p.m. pacific
Standard Time on Monday. November 22~ 1993~ Further information.
including copies of the preliminary Official S::atement. OffiCial
Notice of Sale and form of Bid Proposa.L may be obtained from
Killer , Schroeder Financial. Inc .• 5994 West Las Positas
Boulevard. Suite 205~ Pleasanton, Califronia, 94588. telephone
(510 I 463-121:1.
Dated as of October 26, 1993.
ITO BE PUBLISHED IN TIlE ____ _ AND _____ _
BXHIB.IT B
page 1
ON ~ __ ------. 1993
l.993)
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1011'S OF IlfJ'INTION
$2 .. 055,000
L~N!TEO OBLIGA~ION IKPRO~ME~ BONDS,
CI'l'Y 0]1" PALO AL'l'O
~ALrFOkNXA AV8N02 ~ARkING ASSBSSMEN~ DXSTAICT NO. 94-13
ASSESSMlrN'l' BONDS OF 1993
NOTICE IS HEREBY GIVEN. that the City Council af the City of
Palo Alto, State of California. invites bid~ on $2.055,000
principol amcunt of Limited Obligation Improvement Bonds. City of
Palo Alto~ Colllifornia Avenue Parking Assessment District No. 92-
13. Assessment Bonds of 1993. Bids will be received on
MONDAY. 1I0VllNBBR 22. 1993
at 10:00 a.m. Pacific Standard Time. in the offices of Jones
Hall Hill a Wnite. A Professional Law Corporation. Fo~r
Embarcadero C~nteri 19th Floor. San Francisco. California. 94111.
(415) 391-5780. and the s~le will be awarded b¥ order of the City
Council of the City of Palo Alto not later than 11:59 p.m. Pacific
Standard Time on Monday, November 22~ 1993. FUrther information,
including copies of the preliminary Officjal Statement, Official
Notice of Sale and form of Bid Proposal. may be obtained from
Miller & Schroeder Financial. Inc., 5994 west Las Positas
Boulevard. Suite 205. Pleasanton, Califronia. 94588, telephone
(510) &63-1212.
Dated as of October 26, 1993.
ITO BE PUBLISHED IN THE BOND BUYER ON __________________ , 1993]
.UIal!' P
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