HomeMy WebLinkAbout0534.094TO:
FROM:
City of Palo Alto
City Manager's Report
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HONORABLE CITY COUNCIL
CITY MAl'l(AGER DEPARTMENT: FINANCE
AGENDA PATE: DECEMBER 19, 1994 CMR:S34:94
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SUBJECT: APPROVAL OF OFFICIAL STATEMENT AND RESOLUTION
AUTHORIZING SALE OF S9,45Q,OOO UTILITY REVENUE
BONDS 1995 SERIES A
REQUEST
Thi5 purpose of this rtp(1;1. is to r;;que:~l Council approval of the PilJ~n:ifi3.ry Oftic:ii31
St..1tern~nt, aT1d a.doptioll of Uli,; Rcsoiuti01I Authorizing the Sale or Bond"... bJr tit\;' City of
Palo Alto UrilitT Re\'eJH1~, Bonds! 995 Series A
RE£oMMEN.DA TION
Staff rec.omroends that the Council authoriz~ the Mayor, City ~'lan.lge" and Director of
Finance to sign, as appropriate, the Preliminary OtTlcial StAtfnlent 2l nd Res:()lution
Authorizing the Sale of$9.450.000 111iiit)' Rtve:nue Bonds, and IT'dke any rh'anges n.:cessaty
to these documents in order to complete the financing.
EXECUTIVE SUMMARY
!!K~d
]n May 1994, the Coundl approved in concept a 30-year pJan to finance the Stann Drainage
infrastructure improvements, as recommended by the Master Plan Study (CMR:261:94)_ Tho
fmancial pian includes bond financing in the carly phases of the improvement program, and
s" ... itche~:o pay-as-you-go funding in later y.:ars. In NDvember 1994, t~~<: Coundl ilPP[\)'I,ed
the initial three-year phase of storm drainage improve m.ents , tl)ta.iing S8,S45.000, and
authorized statT to mise the necessary funds through the sale of utility re\'~nue oonds
{CMR:479:94). Tne proceeds from the sale of bonds will finance the projects included in
the initial phase, in addition to n. ... o other capital projects ($24&,OfJO), which were approved
by Council in the Capital Improvcmt'llt Propam budget. A lisl of total I;:xpenditure5,
including is.suance costs h> be financ\:d through the proceeds of the bond issue. i~ included
in Aita~hment A. A. 31 percent storm drainage fcc increase was appnwe-d by Council
P-.lg~ I of 3
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eflect;ve July I, 1994, to pay dobt service for these bonds (CMR:298:94). St;,(fwiJl return
10 Council in January [995 to request the: approval and accept?..nce of the lowest bid for the
final sale of bonds.
Official Slalom •• t
The Preliminary Official Statement (Attachment B) will be provided to prospective
purchasers of the new bond issue, This document describes the bonds and gives detailed
infonnatiofl about th~ City and the Utilitit..>s operations. The information is offered for the
purpose of a.;;sessing the City\ :ability to pay illterest and principal on the. debt when due.
R~~ __ Q_huiQJLAutboti!:ing Suft:
Under the Resolution (AttachnH.'nt Cj. tht Councii authorizes the sale of the bonds (0 pw\·'ide
financing for ~t~nn dwin'lgc infrastnl(:tufc ill!prOVements. The Re:ioluiion aho requests ihc
p{")1araiion and adoption of tht NC'tl.cc of Intention to Sait.:, NollCC of S:lle, and Offidal
Statement. [n addition, tbe Resolution spe..:~fie.,> tnat bids \\'ill be accepted at the offices of
Jones Hall Hill & White, the City'S bond coum.eJ, 01] January 2\ 1995 <it 10;00 a.tn.
Finally, the resolution authoriz.:.'s the distribution or the bonds rmd til..: preliminary oflicial
statement to b i ddt"rs.
FLSC.4J, IMPA~I
Storm drainage fees were increased by 3 j percetlL dfc(.tlve July I. 1994. in order 10 support
the initial three-year phase of storm drainage impwvements, ComeqlJcntly, the issuance of
bonds to flnance the Capital Improvement Pro,iect vdll rcsull in long-term dr:bt [hat CaP. be
supported by current Storm Drainage Fund revenue.
ENVIROjl,'MENTAkASSJ,-~MENT
The action herehy approved does nol constitute a project under the California Environmei1t<it
Quality Act, and, therefore, no em..-ironmentai assessml:nI is necdt'd
AITACHMENTS
PIN' Storm Drainage Bond Issue Expenditures
"8" Pre[irninaJ)' Onidal Statement
"C" Resolution Authorizing Sa!c
Page 2 of 3
PREPARED BY: Tony Sandhu, Senior Accountant
Meliss.a Cavallo, Assistant Financc Director
cc: n.'-Ci
Page 3 of 3
AITACHMENT A
Storm Dnoillllge Boad Issar Elpeuditures
Bond C0 IJns·t,:1 -m.OJI)
Rating Agencies
Financial Ad\"i~or 17,5(1)
Offic;al Statement Printing 1:,500
Trustee 7,JIXJ
Miscellaneous Costs 7,500
Contingency 504
$9A50.000
"Project fWld5 will earn interest estimated at 6 p¢n.:e.u .. bringing total funds 3vailable for
project expenditures (0 S9,093,001.
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AHACfft..IIf B
PRELIMINARY OF'FICIAL STA n:ME:-1T DATElJ NOVDIBfR _, 1 99~
!,(EW ISSUE: FULL BOOK F:NTRY Rariag: Moody's:
StI.Ddard: & Poor's:
In ,he opinion 0/ Jones Hail Hill &-Whife, A Pn!les_.wn.;/ [.;:"" Cor;oorvriMt Stu:
Francisco. California, Bond CO!.i'lf;e/. sU~;'.f,r. hOM'tI'fr lu .. 'erfcll'1 q'"I!~i(ih.:JfiO.'t( J~Jal"-..·d
herem. umkr existing /.;1W, the Interesf on !he Bondi is e'lci:.deu' ,'Tom gr ... H.{ rnCO'l'h' {or-Jedc"ui
income tm. purposes wuJ such interesf is not on Irem vi fax prc/ere,u-e /N f/urPOU.f (lrihc-Icd.:ral
aiternatiw! mimmum tax impost-d on curain ('orp..')r<ltlOil _~JK.IJ intercst is (ake" iNo gccour.1 in
determining certain income and earnings, In rht /urt1!er opi"liu/I of BofJd Cc)lJ.'ud _(" .. dl i""'";':J<
ff exemplfrom Californi(J persm1a1 incolr!l! ;axe.<;, &e 'TA.X ,\1A lTERS" hafm
D2lCd: Fdml<"!.l"Y !, 1995
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CITY OF PALO ALTO
{!tiHty Re ..... enue Bunch
1995 Strie-s. A
(SaoU (lar-a County. C.lljfi):!,[1i~)
The 1995 Series A Bonds \-1,;11 be l.;;.s,ued in fully reg.i~ferd ~~)m: unl: __ :tI1d ,.\~t":l c:\~.:-ut.d
and delivered., -..vlll be registered in the name of Cede 8: C\.'., , as. nominee l1f lh:;-[)e~ ... -'~il~)j:' frust
Company, New York. New York ("Dle") DTC wili act as :x~,:u.ntL~S d~pn~I!(iry of Lhc i 'i'';~
Serie-s. A. Bonds, See "BOOK·E:\'TRY O~LY SYSTE\1". BenC'ft.;;iJ.1 l)\\T1~r . .;,h:p illtac:;l ir,
the 1995 Series A Bonds ma), be purtha."-ed in book-emf) fonn onl)'. in the denomir,.ali(1f"1 of
$5.000 each or an)' integral multiple thereof. The i995 Series A Bonds are ISSU(l..i ~ fi.11l~
registered 1995 Series A Bonds in ~nomination of S5.000 or any integral mWliple there-of
Interest is pa)'able 011 June I. 1995, and seIciann'Jail:o" k1Cfi!a.1'1er on June l md December! ()f
each year" Prindpal of and premium, if any, on the 1995 $mcs A Bonds .... ,111:< pa.\Olble.a! the
principal corporate trUSt offi~ of Bank of America Natio:lal T1U.'H &.: Sal, iogs Associ31ion..
San Fnmds;:o. California. as trUStee (the "Tru:.-""tee"). Paym.:nts of principal and interest vo.ilI be
pajd by the Trustee to DrC for 51Jbsequent dis.burscmrnts 10 DTC Participants ),\.no ","ill n:mil
s"ch payments 10 the beneficial OWll<'rS of the 1995 Series A Bond,. Se< "BooK·ENTRY·
ONLY SYSTEM,"
The 1995 Series A Bonds are being iss.ui!d ID tina..-"!c\;! ':crt..;,'l.1!l ext~njion~ ar.d
improvements to the City's sto-rm drainage and surface watc:r system.
As described bereiD~ the 1995 Senes A Bonds liN !ubjtct to Qptil)Qal ~Ild mand.tor)·
redemptinD priQ r to matu riry"
The 1995 Series A BOfUi:. and ail oth('r Parit)' Bonds (colle..-'i,'('-]), "the Bl.tnds") are
spt"=cial obligations "fthe Cily and arc secured by J. pledge of and lie!"' 0n the t\t!1 R~\'enl>C':' of Ill!:
City's electric, wale •. sewer (wastewater), gas and stonn drainage and surface walt!r ulililY
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syst.erns. (cnH~\'ely "the Enterprise") and amount'S held from time to time 11'1 the ix-bl SeTyice
Fund. alJ as further described herein. The City of Palo Alto liLilit)' Re\'enu.e Refunding Bonds
)990 Series A (the "\ 990 Bonds") of which $8.0J5.000 are currentl) o"'standing. and the CIt) Qf
Palo Alto Utilit), Re"enue Bends. 1992 Series A Bonds (the "1992 Bonds·') of which S4.660.000
are curnntly outstanding, are :)t:cure\l by a lien on Net Revenues on a parit), wilh South lien
securing 1M 199.5 Series ,;\ Bonds. Nc-ithcol' tbe geoeral fund l tbe fulL faith and credit. Dor Ibe
luing p(nnr of tb.e City, tbe-Si:J.lt of California oJr all)' of its political subdo'iJioft,!I if
pledged for the p.~'ment of tbe-1995 Series A Bond§. Addidona! bonds and orher
indebtedness may be issued on a parity ",th the 1995 Series A Bonds subject tc the conditions (If
the Indenture as funhtr rlescribeJ herein,
MATURITY SCHEDULE'
DU~!UDe! Prir:ciPII; IDle~! Ratr PtiCf
I'm
1~7
1993
i999
:1000
2(-01
;(!{;2
'-"ie T.frml995 Sni¢s.o\ ~l'Ids Due June I, 2020, Price
(Plus A«r1Ie;:l IlItftt\t)
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The /995 Sa!'!,-A Bonds are offued ..... hen, (15 and Jj isJI,U:J, suo/tlcr ro fil,; upl'rol'lll (~I
their lexality by Jone)' nall Hill & Whiff', a P;oJiss]onal Luw CorpOr,Jlion. San F,.,md,i(d.
Caiifornia, Bond Counsel Certain legal matten wilf be passed upon jor tho.? cr,,!,' by r11<: City
Altorney. 11 is expected ,.hat the 1995 S,-ries A Bonds 111m be avuilabJ~for delii...,)' in A"eh' rod:
,V;;h' fork, on oraboU! February ______ , 1995.
*PreIirni.'la1)', subject 10 change
Dated: January " __ ' 1995
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C'TY Of' PALO ALTO
S ...... Ct.M! C{lUllty, CalirOTDt:.1
cm'COUNCIL
liz Kniss, M;!),or
Joe SimTtian, Vice Ma~'or
G4f)' Fazzino. CO\J.ncilmeml:>c-r
reM Mo;Cown. Cool1Cihnember
Mil:-ki Sch."ICidet, Cooncilmembc-r
City M.Bagtlnl!Dt
Ron Anders~n. Counc-ilrn,=mOer
Jl)~h HU~t, Cout'lcilm('mbc-~
Richard Rosenbaum. CO~Hl,ilmember
Lanie Whee ler. ('(June i Im('m ber
J ~ F leming. City Manager
Anel Pierre Catoor.c:. City Attomcy
Gloria Yeung., City Clerk
"":']li3m Vinson, Ci~' AudilOi
F!l!aace Department
Emliy HafTi~lJ'n, Di.-e<:IGf
Meli:iS-l Ca\'a~h.\ A~<;ist1lnt Dj{Klllr
Jim Steele, BuJl!:cl Ma..ffagef
Carol FerTl;'ll, AC':(1utlting Ma.mlgl;T
Tn::y 'sandhu, Senior i\.Cc'::,llntant
VtiJjti~ Dtp,Mrtmnt
&lward Mrizel D irec tor
R:.ndy Baldschlln, Assistant Dir«:tcr' Administra!I'I1.' Sen'ices
Larry Starr, Assist.a.nl Direcll)r· OperationslEngineering
Tern HnDa.sni, Manager. Resource Plant1ing
P.bIk Works Departm.enr
Glenn Roberti. Director
Gcorg~ Bagdon, A~jsWl t Directcr
Joe Teresi. Senior E.ngineer
SPECIAL SERVICES
&ad Co.aul
Jones. Hall Hill & White
A Professionai Law Corporation
San FranciKo, C.lifomia
.Fio. Ic:ial Ad~T
Stont & Youngberg
San Francisco. CaUfornia
Trrutee. Pa),ill& Ageet & Registrar
Bank of America National Trust &. Sa'r'ings. A 5.!>OC iatl 011
San Franc!s.;;o, California
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~.-o dealer. broKe'T. ~!esperson or other p«:rson has hten authorized by the CilY of ?:llo
,.s.,Jto to gi\(".any information (1T' to rn.ake an), rer-rC'5CT1t3tions other tha."1 those contained ill this
OfnciaJ Stalemrnl:.and. if gi.'eM or made, 5u::h other inform.l:ion ... l[ representation.'> musl nol ht
relied upon.as haxlng been J.ti.thon1.N by the City.
i!"us OtTicia! S~Li!men: doe5 roo, cc,nS!irui(':in offer tL' seJll.H the s-oiidtation or all otTer [0
~, oor s...floail that t--!-:l!l~'!.alr. oi 1M i9t;l .... Stties A. Bonds by an)' pC'r50r. in any jurisdiction in
which. :1 is unia .... fui [oJT 51.. .. ;:1"·, person to make su\'-h an cfTe" :;<JliciUlion or sak 'this or1'l:;;'la1
Statemenl is 001 to be ;;''Oi1sm.ro 25 a ';v':'Uracf .... ith the pun:ha.-..ers of the 1995 Series :\ Bonds.
Statements cont4l.ined in thi'.i Ot1kiaJ Statement ""tllch inYolve estimates, fNecasts or matters. of
OPlnl"",., v"hethet vr!lO! ~xprnsly so ~bcd herein. ar: in!ended solely as 5.uch and are not to
be corL~ as rerfeS-~t2;!joru. of f3Cts.
The-irlfl'~'1rL;!;I~(1:l s.:! fC1U'l ~etelil h.~; 'hce"n o)-l:J.irH~.:l b:.-SII.rr.e & YoungbC"rg. as finar.C'iai
.1'J.·,lo:;..)'. fmm tb.: Cit: ;-'J" • .:i .... \~r.'!i s.;' .. ,l,( . ..,:$ \, h.i.d'. ..!.l'~ t-eh«",.;:d ~',~ 'r-.;:: r-:i,\abk. bu1.. is nOl guardl1i.>;:ed
y ,.1:"'.,;; h..:'r.':' r~·: In!,"iT'n,1Y:;'J, .:v.J l"p:~S":"i' .. , (11 '.1rinWOl ~.:;r:;in ~'.r.: ~ubj('d to c;h.'iI'.!;.!~ \\ilhout
rl·.:U~·~: ,";"j r'{,'~l~":r t1;,_ ~.:l!'.~.,: ;··r l.h~.;, O:ric"'3,l Sl:=l':-'~Vr.t r,,1T =ti1y ::"''lk rT1~Je ner('w1du :-,hilii.
c.:;~2a ,-.",:>" c1r.,:ur~<.;;.(~. ::~. ere.l'.:: -!.!.y ~JT!pJi'~_uiL'n lhJ! lrH~r<:-h_~,.~ t-.:.;:n rEl en w:;,: iii the ~tl3i~~ clf
lr..: (in' ,ir,:,; Ih~' I.L:,; !:~H· ... lr
Thi~ Offi,:f3.i Statem':!OlI is. ~'.lbmiltcJ III c,-Huie,:tlon \Ilth the 5,)!(' of tht: 1995 Seri.::s ,-\
H<)r.J.~ rtro:m:j i{i t<erc~n: M:j !1 may not be reprcxftJ<.·~ or u>ed, in full o..lr in pan. for ar1~' otheT
Plli1:"O"-l.:
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TABLE OF CO:-'T[~TS
INTRODUCTION
THE 1995 SERIES A BONDS.
SOURCES AND USES Of FUNDS.
THE 1995 PROJECT ..
BOO![-E1'<TRY-DNLY SYSrfM .... .
SECURITY FOR TIlE BONDS ..... .
THE CITY AND mE ENTERPPJSE..
THE ELECTRlC (mLlTY.
THE 0,\5 UTTUTY .
THE WATER UTILITY
THE \ .. I/ASTFWATFR UnlJT'l ....
THE STOR}..i DRAI'}.,1AGE A:~D Sol RF ,;cr \\'All: R i 1"11 \ fY
APPROVAL OF LF(j,\i. PRI)CFFDI-:-{GS.
ABSEi\'CE OF LITI(h\ TlU>.'
TAX \~.!..T!EK.S..
RATrXG
LEGAL OPU'IUON"
CLOSfNG [)"''"lCUMENTS ..
MlSCELLAl\'EOUS ..
APPENDIX A: SUM:'-.·iARY Of TBE f'RJ:-.'CIF'AL L[CJAI lXJCl1'H-:'..:T.'\
APPEND!X B:
APPENDIX C
CITY FrNANCES,
0ENERAL fc\'D ECONo\ilC INHl!{\I.-\Tlm: 0" THE CITY
AND ·IHE AREA ..
APPENDIX D: fORM Of BOND COl'NSEL OPINION ..
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FRANCISCO BAy ARiA
ANti VICINITY
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S9,45O,OOO·
CITY OF PALO ALTO
UTILITY REVENUE BONDS
1995 Sfri .. A
INTRODUCTION
The purpose of tills Official Statement, which includes the cover page and .1ppendices
hereto. is to set forth C"~rtain intormation in connection with the sale of tbe City of Palo Alto
Utility Revenue Bonds, 1995 Series A (the "1995 Series A Bonds~). Certain r;apitaJi7.ed term::;
used i.n thls Ofticial Statemt!nt and not olhernise defmed have the meanings set forth herein
under "SECURITY FOR THE BONDS -. Definitions",
The J995 Senes A Bonds are being iS~liM purSl4'\lit to u,e charter.')ftile City (lfPalo Alto
(thE "City'·) and the provisions of Chapter 12.28 (commencing Witll S:--clion 12.28.010), ofthf
p.,!o Alto ~'Iunicip;u Co-ie. togcthr.r \ .... ith Article 9 (commendng \'/:ith Seclion 53550) and Art[ci~
1 j {.:e.mrnencing .... itf: Setticn 53580) of Chapter 3 of Part 1 of Dl\'is\on 2 (If Title 5 of the
G,)\'emmcnt Cod~ of the State of Cali fomi a (the "Stale"), all as in effe't on till': Closing Date (the
~R0r.d Law"), and pursw..ant to the terms and condirior~3 i)fthe lr.(ienturl! afTrusl dOled ..... ugusl I.
19'/O. the First Suppl~ITIental Ind.enture of Trust dated M:uch 1. !9<12 and the St>.:or:d
Sl:pp:em~tal Inde.nture of Tro.!St dated January I, 1995. colk";lively {the "lnd~ntu.re"), 1he
lndennue is by end between the City and Bank of America National Tn.Ls.t & S.a .... ings
A~ .. ,;ociatio;t. San Francisco, Califi.:lrnia as Trustee (the "Trustee"). The 11,195 Seri("s A Bonds are
being issued to finance certain ¢'UC'nsions a..'1d improvements: to the Cjty's storn1 drainage and
surfal:e water system (the" 1995 Project"). All referer,ces to <lnd summaries of pro"i~ioJ1S. of t~e
Indenture are qualified in their. eT.tiret)' by reference to the fuJl Indenture. c(lpi,s of which are
available for insp~:·ction at the offices of the City .
The principal of, the red-emption prmuwll, if ~.ny. and the interest 011 the 19Q5 Series: A
Bor...ds are payable from the Net Revenues of the Enterprise as defined berein. 'Ille Ente!prise
consis""~ of the City's existing electric energy system, gas system, wat~r syst(:'m. sanitary
sewerage and sewage disposal system, and storm draiuage and surface water system. The 1995-
Series A. Bonds lI:R: speciaJ obligations of the City and, together v..ith the 1990 Series A Bonds of
which S8,035,000 are outstanding, tho 1992 Series A Bonds, of which $4,660,000 are
outstanding, and any additionaJ Parity Bonds i.&.5'..Led pursuant to the Indenture (collectiveJ)' "the
Bonds"), are payable solely from, &.T\d secured by a pledge of and lien on, the Net Revenues of
the Enterpri5e. Ncitbtr tbe gene-ra1 fund, Ibt full faUb anci credit, nOor .he taJ..iog power of
~he Cit)" the Statf ofC.lifornia OJ" any other political suDdn'ision tbereofis pJedged to the
paym~Dt of the 1995 Series A DoDds. The 1995 Series A Bonds are DOt secured b>' II legal Oor
equ.itable pledge of or cb.rge~ lieD or encumbrance u.pon any pt'o~rty of the Cit), or any of
its income or receipts flCept the Net Rnenues •
• Pr<!lJmmary. subjecr 10 ch.::1rlgi?
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fh: City CO"':CI!3ntS in the !ndt=nture that it will at aJi limes fix. prescribe, fni!'le and
wl!e\:t Charges in each Fisw.1 't'ear .... \;hich arc slJ1TIcient to yield Net Revenues equal 10 not icss
than I .25 tlm~ the ;\,fa.ximum ,."'.nnuaJ Deb! Service on all outstanding Bonds. See
"SECURITY FOR THE BONDS" herein.
To further secure the payment oftl-Ie: rrincipai ()fand interest on the BDnds.lhe Indt;'n1urc
estJbli!)~ lh~ Reser.e Ac~oun! to be held «I/, the Trustee The lndenturt defines the Reserve
Req...uremen: 10 e'..Jl.I.i.l the le~r (:fMa."timum Annual Deb( Service on all Bonds then outstanding
0; such h:gha amuun1 (nvt to exceed ten percefil {I O"J.'oj of the procl..."'Cds of the ~(e of the bonds
to the investlnii public) as may be SI!'! fonh in a Supplemrnta! Indenture. Under certair.
c-i.rcumstance-s, the R~'e A~~~aun! may be iePlaced in ....,tlOle or in part by i! surety bend or a
letter of credit Sa "APPENDIX A ~ Summai')' of Prindpal Legal Document," and
"SECL'RITY FOR THE 1I0:;DS". .
THE 1995 SERlES A BO;';DS
(t.e ! 94::; St:ne:> ;\ Eh~i"1j::. wlii N:-d".tcd Fr:bn.llI)' I, 199) aJld arc (,l bt" i:>~:ue,j in !he
.l,,-!~F·fC"tl': l"'~lr,':lr,": i.m:),m!. t-:u inti.'=e~t.ll th" rak' p-:-r annum and m<Itun: on the clat;:;s: SCI forth
'.1'0 the '.:,~,' ~r l".J..gc r.ere·:,L
~ ! 995 Series A Bonds ar~ deli .... erable in fully regist~n:d limn ill the dcnominmioo of
SS.O(){) each nr an~' integral multiple thereof. and when issl.1ed will be regislen.:d in lhe name of
Cede &: Co, as nom!net" or rhC Depositor,.-Trust Compa.,y, New YorK, New York ("DTC").
Bl!'m:iicial (',wnc-rs of (j\e 1995 Sene's A B(md~ .... ill nol r.e-cel\'C physical i..'¢rtiti.c.J!es representing
the 1995 Series A Eionds purchased. bUI 'Will ret~ive a credit balance on the books: of the
Th)mint.""eS ofsLK'h beneficial '''''''''neI''S. s..J iong as Cede & Co. is the regis:ered holder of the 1995
Series A Bonds. priIll:ipal of and pmru!Jltl, if any. and intere~t e\'iden~ed and represented by the
II:NS Series A Bonds 'l,l,ill be paid by Bank -of America NationaJ Trust & Savings Assxiarion,
San Fraocisco. California. as Trustee (the "Trustee~), at its priccipal corporate-trust otnc.e in
San Francisco. California, directly to DTC, 'Which will in turn remit such prim:ipal, premiwn, if
any. and interest to its participants for subsequent disbursement to the beneiicial o\",nc1'S of the
\ 995 Series A Bends as described here'n. See "BOOK-ENTRY-ONLY SYSTEM." Pdncipal
~)f and ::-renUum:. if any, on the 1995 Series A Bonds will be payable at maturity or prepayment
u:pon ~er thereof at the principal ('o!'pOrale trust oElke of the Trustee,
lntc-resl ou !be 1995 Seric~ A Bonds lOS payable semiannually on each Jur.e I and
Decc-mber 1 (each,. an "Interest Payment Oa~e' or "PaymenT Date"), commencing June l. 1995.
In the event that the book-entIY sys:tem shall no longer be used wlth respect to Lle 1995 Series. A
Bonds. interest on the 1995 Series A B(lnds is payable by check or draft of the Trustee maiJed hy
tir51 (,'i;lSS mai! (tIl ~ach !fJ1erest Pi:lymem Date to !he r~gistered o\.\ner who~e lIame <::.ppears on the
rc~istIation Dol,);:, of the Tr'.J.:.l,ce at the cl(iSe or busines.s on the fIfteenth day of the month
pre<:C'\1ing the Interest PCl)'menl Dale. whether or no'. ~,uch fifteenth da)' of th( monih is a business
L
--~----~
'.
da:y I.the "Record Dale''') or by 1,I,\re lransfel to the O'.\llers Gf SI.M.000 or more in aggregate
rrincipaJ 3m<)l!nl of 1995 Seric-s A [hmds; 35 s-.:;;:h O .... r:~ sh211 S:1'C"1f) in a \~TJtten nOlicC' to lh~'
Tnl_''tee not less than Nl!1ity dai. ~ pric"r to wen Imerest Pa~'m~n1 Dale
So fons ;tS Cede & Co .. i!> tnt regi5-1:-red h"Jder (Ii" ttl( 199~ Sm(-~ .~, Bonds, refc-n.'r.,,-es
heftoin to {h,e hold.ers ('If o\\nen; Of re£lstered h<J!ders or Q\Ior.c':n. of the l '195 S<:::!'S A B',mds sha[1
mean C:de&. Co a.'ld wJI nDt me-2.,,:1 the txl"!t'fi.:-i:1l v",,~. of the 1<N5 Smt."s A Bond.~"
Any 1995 &ries,~ Bond m.a)'. in a...""C.!.nd.tIlCC' .... ith ilS ~e1'l"S. be tra..,~fl;rre\i upon the BonJ
Registmtion Book~_ by d'..e PCT'S(li\ i.n ~-n0'~ na,.'TI1!' it tS t'lei,iSi.ered. in ?!fson or by his. dul~
authorized 3t!om.:y, "ron ~LIm:!"',CCT of 5LJ.Ch 19'~5 S("riC's A &-ll-',d for c3!;c.ellatiQf"], acc0mraIiled
by Jeli\"C~'ry of.3. \'.-nTten instnl..!T'",.;r.l ,..1flrJ..'1sfe-r In ,I fl~rm dt"'trrn\('d '1w {h~ Tru')tee. du!)' ,-"xc-cured
\\"r,:-~\.-~ any 1~5 ~ne~ ,-\ Ek:-' . .:!. ~h..Jl. ~ <'-'J.r\!:T.J-e~J \\:'.~ :'r.",J",fer, th~ Ci\;. s-"h3..U o·.e(~'.te-anJ
the I n,:..<,\e>:: <'~'.lil U1CT"..'l'f')r= ,ll.!rr,,~'!,,~(;;:c: .!ld c::li" t; r'-I Ir.e trJJl.'-lcrc-.: J nc,.,. i'!Q_:" Sr:rit'"j .\ Ihliid
~lr i "N5 Sell .... 5-.-\ R"::,j. d I;l,l" ''-'~·'':Ir. ,~..:;~.:i;~: . ....:'.! ~~~;c'iJ",e rrir,ir31 .i!r1"U;"li :\0 l'N5
S'~ri"!"~ ..... 8';);1'!:':" u-\"; r.~.'l:';( ('\ r'>!'_iTr'~'_':,:-\ ',It \~r.'.'..1\ h~~'. ['.,.. ... [\ m:;..deJ i'w~'l.:;.r:\ t~, rJI': [Ci7mptlor\
rr(l\ is[0n~ l1rth~ I rJ"",nlrl! , 5r-l.1Ji t-.' : '-11:-; ~, __ 1 !;'. tr~:."'~)!-ci
i'il95 ~~li::" .. \ rk,~j,. ',>,,2.') r ..... ,:,d.2"-,~d .::\ t;".'. tf',J:"t ;)1\-1(1.': ,1\ Ih.: lr\l~\O:~. f0! 19Q5
S~ries. A ~h'l1d:'llfjj:t' ,"-lITI!! t~~,,:'lr .i:: j m,~:\.Jrit.\' ..'.!:; (Ifcttr:r:r 2.ut,l;,.iriuJ d';-I)Omin,'!li0!i:'l
ffany 19'}:-Serie~ A. B.1:",j ~h;>JI ~c,-,~')',,· mw.t~la!c-d. the ('Ily, Jot tl1e expen,'-<." 'Jfthc Ov"r.er
of ,:ai.d \'N5 Snit's A iJN'.d" sil::1\l C''..;e':\:i>;" .:m.d \ne 1rillotre sh .. "'\\\ iliereupt,i'. ",1;:lkTi(Ic-att MId
dehl,'Cf. Ii new 1995 ~fi.:-s .'\ BonJ of ltL:c maturif)' and prirn;tpaJ anwwn in e\cha.'1g:e a..Tld
Su~tiMiofl for It,: 1995 Series. A Bond', so mUIJlal('J, but 0.."1..1>" upon surrender to the TflJstee 0'
the 199; Se-r~es A 8,000 ~ mutilated" F .... ,t:f)' mU'tllated 1995 S-e-nes A Bor.ds ~ ~U1Te!"ldC'red to
the Trust~ sh"all he canceled by i ..... and cdJvere-d to, or u~n ~~ order of, the City, If an)' 1995
S,erfe;. A Bond i:ssueci shall be lost, destroyed or S"Wlen, ('\ iderKe of such loss, destruc:ion or theft
may b¢ 5\!b!niTt.ed to the Gt .... anJ lhe Tru..~ and, if such e .... ·i~ bt-satisfactory to them.
indeum!T)' ~ 10 them -Sohall be gi'o.en. the Cit)'. ill the ex.pense of the Owner. sha!J
e;:(ecult" a."ld the TNStcc shall thereupon authenticate and delh'er, 3. ne"o\: 1995 Series A BO!1d of
Hke maruriry and principa.t 311V.>unt il1 Ileu of and m 5U'toslitu11on for the 1995 Senes ,.\ Bon~1 so
lost, destroyed. or stolen (or if 2.ny sLdl 19q~ Sene--s A H'Jnd shiJl han: matured Dr shaH h:wt"
been c.llle<1 for redemption" instead of i<.;~ulllg a )ub~{itut( 1995 Suic,5. A Bond the TrlL,>tc-..: may
pay the same ,,;thoUl. surrender thereof l.l.pon receipt of indemnity satlsf~CIOI1' 10 the l·rus!~e).
The City m3)' f":quire payment of a reasonable tee: for each new 1995 Series A Bond issued and
of [be expenses which may b.:: incurred by tht Cit; and tr,(, Trustee" AIly 19':15 Series A Bond
issued in li.::u of an)' l~:; Series A Bond alleged to be 1051. destruyed o. stolen sh311 ,'onstitute an
llrigil"''';',I co:1tra,~w.:=i obli~ali.-,:! t,n [11.: p:iJ1 \.~f tf"J:' Cit~ \\hetner or riot 1)1::;-i995 Scri·~s ,\ Bond
alleged to tx, j,.)st. dc-struycJ Of stolen ~ al any l[mt' ellfotc.:ablc by a:1)'OJle, and shall be e.:ju.aliy
• L
and proponionately tntilJed to tlJe benefits Qf the lr.Jen1u.re with all ("'":~ 19'95 ~crtes A Bonds
secured by the Indenr"",.
OptionI Re<lemption
The 1995 Series A Bonds maturing on or hdGTt In.ne L ~O{14 sbail n(,t ~ ~ubjC'(.! tt'
optionaJ redemption pnor to marll.'it)'. The 1995 Scri~ r\ B(lnd-s matwri:r.g (.n 0!" ;ifter lune 1.
2005 shall be subject to rt(lemp!io:1 prior to their res~'i .. e rMmri't) dale-~. a1 u;e oplicm of the
City. ilS a whole on any date, or in pan in i[1\'Ci5t orner of maturities and. 'toy lot Wit."lI1 a m:.Ilur1t!
on an)' Interest Paymt!nl Date. on or atter JUP.C: 1, 1~, from any source of 3,'ai !3blc fu..'lds, a! the
fcllvv.ing respective redemption prices (the "RedemptiCln Price~) .... tuch :I.T'C nprc--s:s.e-j ~
p..."'TCcntages of the princi~ amou!'l1 offr.-c 199) ~es t\ Ronds 10 l'll! tNecmed. pl>.1S xC!"...ted
iI!i~t, thereon to the dale ofred~pticn.
'um 1.::004 [},.uu~,h :\13~' Jl, .::\~):'
hill': 1. ,~i)OS L,ro',JSh May -'I, '::iY\'s
iiJ;";( 1,}:C(I6a.1d iJ',~relfter
Term Bonris Sinking FIJ:ad Rffiemp'd':l[)
Rt:"d(:;:rtki'> ~r1rt"'_ -._----
1995 Seri~s: A Bonds maturing on Ju .. ne I. ~020 (the' [,'-om B('IIJ:."~ art' :)'J(';~':l hi
rnandatory redemption in part frcm ~ir.k.ing fund ~ymei1t$ 10 'r'<." nude b~ r}1r:-l'll: •• ':1 JUDe L
2D10· aad on each June I thereafte; up to and im:ll,ding. JlL"1e I. ~(I.~O. at ~ H:-J.emp!!c'n prl("';"
equal to 1~'(1 o~ the prin..-:ipal tt.'11ount Lh~tecf plus accnh!d Hn~re~1. i'-;:my. ;l1 lhe ,,:jenl~_:;I_"'1
Jai.e without premium.
Tht:: follo\\,1ng sinking fund payments are cakulaced to be ~uflic~ent io r~ th!!:
rollo\1ilng principal amOL.:J1t ofTenn Bood.s:
'P,eh"mmary, subp;,;llu cho'lg.:.
_,....0."
(J_H I) PrilKipal A=-Qoa.l
20W'
2011
2012
2{)[J
2DI4
2015
2016
2017
1018
2019
2{J2tl (matunty)
..;.
(
Pal 'tban of Bonds in Lieu oC Rrdtmption
in lieu of nxiemption of !995 Series A Bonds as described above, 2lnounl:s In the
Redemption ACCOWlt of the Debt Service Fund ma)' also be used and .... ithd..n""'TI by the Ttu,.'aee
at any time. upon the:: request of the eil)' flied Yl1th the Trustee no latCT tha., April 15 ill any year.
for the pun:hase of the 1995 SerifS A Bonds at public or pri\'ate sale: as a.'ld '~'hen and at such
prices Ctnc!uW1l8 brokeroage and other charges. but excluding accrued intCTe::.1. which is payable
from the Debt Ser\'i~e Fund) as The City rna)' in its discretion detennim:. but not to t:xceed the
principal amoun! of such 1995 Series A Bond.<o plus the redemption premiwn Clpplicable on the
next ensuing optional redemption date. '"["M City s...t-.all. at the time of any sUI.'h pu....-duse, pay to
the Trustee for deposit in the Debt Service FUrtd the amount Df any dC'ti.cicoflCY in s1Kh fund
Vwi"ticb may be caused by such purchase. All 1995 Series A Bonds so pun:ha.\ed shaH b<
cancded.
Special Mand",tQry Redem.ption from iD'ulrl.nce or Con.dcmuanou Proceeds
The 1995 S-;-ries A Bond~ are slJbjec\ tc', mandatory redi!mp!ion as a ",hoi" on J..ll) .,btl,' or
;r, P.'I,rt on Nl)' Interes-t Payment Dale in. inverse order ofma!Urity .o..'1.d by lot \\ithin;3 111'i,twity. t<J
the .extent of Ih,;: Net Proc.:eds .)f butrd imurance nor useo to impw\'e. (ep:~if or reb,Jdd thl,:
Fn!erprrs·~ ,)f the Net Proceeds ofcond~rrm;:J.ti!Jn ilw::J..rus: re.:ciyed "ilh f(,~~ClIO tile Enterpri~;: 3t
<l Redemption Pri.:-c eql.ul to the principal amount of th~ 199,'i Sent'.) A l3cmds plus inter:::,!
ac.:-mcd th,~con to the elate fixe<.i [or redemption. \~ithout premium
N oti(:c of Redc-mptil)Q
Unks'S wal,,'ed by any O-.,.,ner of Bonds tG be redeemed, rwtice of all)' redemplion of
Bonds shai I be given, at th~ expense of the City. by the 1 ruste"(' by mailing <I >::opy Df redemplion
notice by first dass {flail at least 30 days and rot more than 60 da~"s pril)[ to the date fixed tor
redemption to the Owner of the Bond or Bonds 10 be redeemed at the address sbo~n on the Bond
Registration Books or at such other address as is furnished m y,nting by such O .... r.er to the
Trustee. Neither the failure to receive such notice nor any immaterial defect in any notice shall
a..ff«:t the sufficiency of the pr~gs for the redemption of the 8ofJ.ds.
All notices of redemption shall be dated and shall state;
ei) the re,kmp,jcn date,
Oi} the RedemptiDr-. Price,
(iii) if fewer than all Outstanding Bonds are to be redeemed. the identifLca(lon
(and, in the case of partial r~demption., the rC'spective princLpal anwunts) ofthc:: Bonds to
he redeemed,
• ,><(is
{tv} that on the: redemption date the Redemption Pria will become du:! and
payable ""ith re-S'p'Xt to each su~h Bond or ponion lhereofcaJled for redemption. ar.d rhat
interest ""tb res~t thcreto shall cease 1o accrue from and after said date, wd
(v} the place or p!ac~5 'where !'t1ch Bonds are to be surrendered for payment of
the Redemp1icn Price, "'hieh places of payment rna} include the Trust Oft1ce of the
Trustee.
At I.ea. ... forty·fi .... e (45) Jays prior 10 any redemption date, the City shall deposit \\ith the
Tr"JS1.ee" an amount of mCt~)' sufficient w pay the Redemption Price of all the Bond:; or por .... i{lns
of Bends """niCn arc to be redeemed on that dale.
r-..'otice <Jf redemption ha\'in~ been given as aforesaid, the Bonds or portions of Bonds so
h,' be redeemed shaH, CH1 th~ reJ.cmpti(}~ date, become due and pay~ble at ~he Redemp.tion Price
tI:-erei:1 s.pe,:;fied. a."ld ttC)fTl a,'1d after Souch .:;ia(e (W1less. the City shall ddauJc in thi!" pJymen1 (If the
R~de;T1p()1)n Price) such Bond~ or portions of Bonds shall cea.;e 1(') have inkrC.!it ac~ruc illen,'On
L' p;.~n ::.uncn'.k{ of ~'Jch BOf;ds for r;·,jeITtpt~(ln in .,c.::ord:mce \..,'~th ~uch nNice, s\lch £~onus. ::.n.,11
f.c p<..id b)' the 'Cll!..Stee at the Redf.'mp!i0n Price, !ns'.allments of interest due on Of prior to tht>
rdernptio!1 date ~:ha1i be payahle as sf! forth hercin, Uj'XIn sl,iTender for any pru'ilal redemption
of .an)' Sond. tb!T:: :"h<llll~ pr.~paH;d for tJ"ie l)'.'.Tler 2 nt:\>· Bond or Bonds. Oflh<: ::;.ame maturil), in
lh~ am;)unt of tJjC unpaid princiral, All Bond~ which hOi,'eo be~n redeemed shall be canceled and
dertroyed by the Trustee and 'Sh.-JJ not be redelin:nd. Neither the failure of any Bend Ov.ner to
recc-j"e arty notice <~o mailed nor any defect th,rein shall al1'ect :ne sl1fftcienc-y of the proceedings
tor redemption of an)' Bunds nor the cessation of a<::crwJ of lntt"reS! thereon.
in adciitio.'l to the toregoing nOiicc. fu"1her notice shall be given h y' the Trust~c ~5 set forth
below. but r:0 def~t in such further notice (lor MY failure to give all or any portion of such
further notice shall in any manner deteat the dfectiveoess of a call for redemption if notice
thereof is given as abo .... e' prescribed:
(i) Each fwlher notict: of redempLion given shall contain [he information
required aboJ,:e for an officta! notice of redemption plWi (A} l.he CUSIP numbers of all
B<>nd, being ledeemed; (B) the staterl interest rate with Ie'pee' to eru:h Bond being
redeemed; (C) the maturi!} date of each Bond being red~med; and (0) an)' other
descnpth'e infonnation needed to identify accurately the Bonds being redeemed.
(ii) Each further notfce of red.emption s.hall be. ,~nt at least 35 days before the
redemption date by rcgi,>1ered or ccltitied mail or overnight ddivery sen-'ict.' to all
registered securities depositories then in the bwiness of holding substantial amounts of
instruments of typ-!'S comprising the Bonds. and to one or more ~I'.format~on Services,
(iii) Each such further notice shail be published OIle time in The BO;Jd B.Y).:~,
Dr, if '.>uch pub\ka\~o~ is impral.:itCai Of unli:,;.dy to reach it sub~tan,-ia\ m.rrnber of the
O"",ners of !h~ Bonds. in some ornC'r final'lci.uJ ne\','spaper or journal ''Irhich reguI arl)'
-6-
:_-
,I
H
!
I
i
carries Mtices ofr«lemp!ion (If ether instruments similar to Ihe 30nd~. such pub!i~"Hion
to be m.3de at 1-e3St 30 days prior to lhe d.ltc fi~ed fur redemption
0,,) Cpon the pa~Tneol of the Redemption Price of the Bonds being redeemed.
ea::h chr-!."k O! other transfer 01' funds issued for 5uch purpose shall bear the CUSIP
n~m identit:-ing. hy 1S.~UC' and m3tu.-i~·. the a')nd.~ t:.eing T'e<k;.:med ""ith the procc:-eds
of sucn ched.: or other t"ar~fcr
So long a:t; !ht-1995 Series A Bond.'S an~ held {mly in the book-entry system of DIe.
nori« ",fredemption y.:dl N-sent to Cede &. Co. as nominee for DTC, and ... ill not be sent to the
be<J<fid.l own= of til< 1995 S<nes A Bonds &e "800K·Er.TRV.o:-iLY SYSTEM,"
Ixlow.
The t",.Jli';.;i[~? L:r!~ c..::,:.~ t"onh th~ .:;.s!im.3~d $f"ur,;es and lIs.es (If funds rln the 1995
s.!"~:s.-\ th-'Gd.5 (<:'i"';~~: ,.,")~ J.,au-~ci lr,l('"j.:H "..,h.i.,;h :.h .. dl ~ dep.JS.i!ed In tte Dtbt S~"!"\:ice Fund).
I'N) Pmje:( r..J~j
l.'rl.jeNriler", DI!-<:cm:1
l\m (If I~-.:-FI.!JIJ
Re-sen C" AC .. oun(
. ';" ~ ,
·7·
•
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~, / .
-"'
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I
THE 1'195 PROJECT
TM Ci~' has cirt<:rmincd 3.fter due im'eslig:;mon anJ dt"lllx-~tlOn lh~l tts inlere-s:;s _lIt: best
served at trus time by the issua,nce (lfth!; )9-95 Serit"~, .. \ BO;'1d~ 10 tiMrt';(' the 1~5 PwjC"Ct 1995
Series A Bond proceeds and in\'C'strnen1 u.ming$ or. these rx....:ecds ;u;,' n,~:e..-! 1\) t< St<ent 0;1
the 1995 ProjC("t through lisca: y':ilI 19%-97
The follo~iflg <k-sc:ripticn of tacililles ar.d ~ti .. i:i~ ,11 ~ unde-rt.a1.:-n b:. the Clt~
repr::scnl detalls cft,h( !995 PrnjecL most cl~nLs Me antjc~pated [0 ~ c{'ImpetltiHn bid 2nd
COr.m\ClS ay,-a:rle-d to pri\'atc contractors for ~ C...J:lS',ru.ct:Of"l of :.ht imp~ .. ; ... err.~nts
S1Qnn ... :I{att;1 Pump Statism lmrro\.mtmt.s
E;tim~u-J ('~pt:r,dirure5: S:'.070,t,"1')
Thi.~ pm':",;! ':0n~!st~ ul'thc .... ,:-~~lIl.Lt;f':lI.~~ rrllrr,\\ .. ,r-t':',:~ t,,·, If,' ('1!\ '" ~p., rn:n.1.." ~tl:;ml
v.21er pwnr staliDns A n"I''-.· .. irf':·n t't.:;··np S!.i!. " ',J. fit !-< ~':'~~lP!~·,.:·j :'\ [(f'l!. . .' ,',1 (\L~!i:l~
U.1Jers!led uj f''Jld3!(·.i fs,'ilil.\. In ..l,J.~jl:l":'. ir;-;j":U\':IT.t:',:, ""Ijl f-< rllj~,-' JI 1"'-' ~.~-,.!_dL'f".
Adok, COiNJJ0. Fmb?J'c,d.:ro:.'. ?-"1,3 L'f1I', ~;;.t1;, Y,-,-,:-:p ~:w':.\:~~ : .. 1;~~rJ.j,' r!-,·."irl l" IT>.,:.·,·' <'UTr<:i~l
c.apa("ily anJ I)rer3111:-~J.1 1~..:jtl:rl.·n".I-ib .·\n <:r:!:i,, __ trl:':~ ":"::''Jir''';!l h..i·: f'~"f'.:1c,.i ..:',"rr;r~.:tr,;
<:(1:lstn.:~:i{)n .. kKUITle::1t'-. fpla.'li, :5r("dil~Jl!vib ,'",J ~ ti~~.l:d L'e !Jw I :llr'ol' '!.1,i,ln '~Illrr".,·t'rn,,:n[<..
~S.lQnll.Dr4inal(e lwproycm;>m.;:
Estimated t;xpendi\uu·s: S'::.2~O,I)(~·)
This item ;;:onsi!:,ts jJf Lht' des:gn a.l1j L:·.1D51rud)('!1 L,f .3 ~r:;::~ nf ii,Ji .. iJu.l1 rrtl,I~~(l" In
lnstaH local dtair1.a%e facilltie:s, 5u.:h as. ;:.atch hastn~ 3nd w<de'i-'.le,'-.mJ p1reilnc~, li\ area.:;. of the
Cit)' \\ith inadequate dralnage servic~. In 1~rt"5.(: u:xk~f'I'eJ arc.u, rUQ<,)tf mu.)1 nO\~ :'.t'\'era!
blocks in the guner, often C'WSSL.'g imen>«t.ions in;j \'aJky gut1er or throut;h ~ "lphor; ber.e.;!th the
strett. before 11. ~ntcTs a storm d .... ain line, resulting In St?.ndlil!,; \o\..1IC't. rnl..l~uitt). ~d c"h1r
probiems. Engmcering consultant.:;. ~iJI be-tMained :0 design L~ imprcr\,ernents ;;.nJ In 3.SSiS1
staff in neighborhood ouuea.ch and en\'irop~'Tler,tal as.~j5mcnl of ll".c proJC"Cts -, ~ l;ons.uh.a..nls.
""ill prepare comp~ co.nstruction J!X:ument'i (plans, s.pec.flCa!ions. and estlU!J.tC") for the ll"Kal
dnrinage improvements.
SWtnl Drnip Comping Mps:kl Calibrlltliul
Estimated expendItures. SSG.nuo
Tnis projCC! consists of L~ c.a.librdLlon of an exiS1.ing compulC'f model ..... fllch preJicts
?~pel,ne tloy,."S based on historical raii'.fail da1.a.. lan<! u.s.e panerr.5, es\~m-ate~"Of lmpcn i\.)\..l$ ilJ\!Il,
and the phy-;icaJ chara<:tenstics {diamet~r. s!lIpe. conflgu.raljon, ~IC) 01' the City'S 'Storm Jrdin
nef>vork The model is used t-y staff 10 lde-ntit~· "ceded drnimg,' S-~ s!-:-m impW\emCnL'i .\n
e-r,gineering ,:onsultant .",ill Ix ret::_l~.:J 10 ~:J.ilhrdh· the m,xi::-l hy (';Imr.:.rint'-[riCu~etll .. J.l t1,)\\.,;:,
projected b)' the modd to actual no\o\s me:!:5ured in lhe fidd 3f;d .:\.jjllSlin~ mlKlei p;uametc;::; t,'1
·s·
c-"".-:--__ _
.u ...
cot'!"ett any discrepancies. C:.Ilibr.ttion of the model \.\;!I allow staff to adjuS\ the ~opc l,r
reconunended dIainage intprQveme-nts prior tD Gcsign and cortstrur;:ion of ;>;ctual pwjt:Cts
StQrm I2Ri.n..Rcpiacement/RehahjJitaljoD ~
Estimated expcnditun:s: SI,5,~O.OOO
This item ccnsiru of L.~ design and c.on5nuction of a ~rjes of inJi\'iduaJ pr(ljt"Cls ;0
r'eplac(' or rehabilitate dele-named porti('OS of the eXI"i1ing storm drain s),slem. as tderJi jieJ ina
previously completed Stann Drain Condition Assessment stud~. Engineering cQll~uhants ~ii! b<
retained to review the preliminary fmdings Qf the snldy and ~ommet'!d fliuJ rep!acC'rr'rl:r:1 or
rehabilitation tethniques. The consultants ",,'ill prep.3re complete COn..."trUCtiNl d(lCUments (piar.s.
specifications. and estimate) for the pipeline improvements,
Saupa park OraiMie Imornycmcmts
E5timated expcndmm:s: $2,070,000
1111<; projcCi ce'nsis''s of L~e design aJ]:J ,'Gns'tJ"Uclion o( s!orrn ,jIal:1~~e-mW'L~" :"011'_'1\: 111
the Barwl'! Park neighoorhOl..'>d, An engine<:rif1g (;cmsuham will r.c rt:Laincd I", J,"si:::n tho: p~:. '~(jl
improvements and W assist staff in .a Ilelghoorho{d <-1l.J.tr'.:C)ch <:' .. nd en\':r'~r'J1j~'nD:~ -'~:'::5:m.r;"1 nt
lht! projt':.:'L The <;Gn'i1.l1t2_!1I. ".,iil prepare cornpkte (1)rJ:-lructi')r1 ;j0C1.!rT~tn!~ (r~,lr,::-. :,;-~;.It~ .. :~::<"h.
$!J e~tim.;tte) tDr tnt! in'ltailation of ene SlOlTf1 drain impl'YI.-me nt:;.
~dqQ Cr""ek hmiQQ Cpotrgl PrQject
Estimal~ expenditures: :$170,000
This projecl consists of the design and con:;trurJ..ion (If re-pair:-W t"roJ..:d (r':ck bwl.. .1.nd
replace'menl of culvcorts along Arastradero ere.:-k bern'een the Arastrajero Lf)kl;: D:un M.Ll
Arastr-adero Rl,ad, Engineering and iand$l.'llp(: ..u-ch.itecLure consultant .. ~iH be r('iai;1!;:".j I{J
conduct an en,.ironmental assessment of the project and 10 design the impro\cm-:-nts. The
consultants will prepare comp!eu: conrtruction documents (pl:ms, specific<l!iorl.$. anJ estimate)
for tbe project.
prognaphjc (nfmmation System (GIS) lJeyc~
EstimaIcd expenditures: S7g,000
This project consists of a portion of the development of the City.wide G<:ographic
[nfonnation System (GIS). The City has reUined 3. consultant to implemall .'i .$),slo:m to
computerize: aU of the City'S mapping fimction.<;, incladmg th~ storm drain 'i),5Iem maps. In
addition to production of compuler-baseJ maps, the work also Includes the de\'elopment of
practical GIS appli~<ltions, such as integrating the maps 'o\1th an existing computerized storm
drain inventory and maintenance management system.
r -------.... -.... ~--" .. -... -.. ,~.-.... ~---".' ~ ~---
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COOpcaI;ve Projects with Ibe Santa Clam V3JlC) Wau·[ Pistc:k..t
Estima!cd e>;pcnditures: S~55,OOO
• 1;101
Trus project pro)1.des for the Ci'()"~ share of agreements \Io'ith. the Santa Clan V3.1iey
\Vater Di~ct, the local flood !,xmtrol agency, ~o pay for that portion of Distri!.:l flood ct,TItrel
proje-cts that directly benefit City facilities, For example. the City ha5 and wiJl continue to share
Lhc cost of District erosion ~ontroi proje..:ts on San Frandsqwto Cret:k in order to prevent damage
to adjacent City ~ts. The C<lst-~haring agreements ..... ith tlJe District typically CQ)'er
engineering and construction costs in~urred during an improvement project
C'wb and GuCer RcpI!tCt1JJent
E~timated ex:penditures: $600,000
This pwject consists of repJ.,.,<omem of defective sections of curb a.'1d gutter WnughOUl
tr:e City. A wdl-designed and rr.aintained curb o:.nd gutier network redu,:-.:.r. localized ~xmdin!! b;.
conveying surface runoff to the undi!'rground swml J[ainag~~ s):!tern The CIt)' has idernifL(J
'S';'ct10ns of curb a.''';! gutter to t'l! r~placd bt:cause the)' pond wat"r as a result of ~enl~lTitm,
upbea\'aJ by tn."e. rools, or o'Jje{ dis.placemerl1. Th~ v,'ork Includes the rem.uval dnd replaceme-nl
ofdetc~tl· .. e sections of curb ~nd gutt.;-r and adjacent pavement, driV-:'HIYS. and s.ide:v.alx nilS
\\ ork \>r"ill hf p.:-rfi.)fmeJ by a contractor as pdr: of the Cily's annual sidt.!\\alk replatemt:nl
progaUTl.
·10·
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S&Y [X)C [Sfq.I::!900,OO::!i CRQ DATED 12059 ...
Set forth below is tr,e annual debt service on the 1995 Series A Bond:, based on the
in;erest rate:; and mat.J..";fY scheduLe set forth on the cover of this Official Statement.
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BOQK·DTRY·O~LY SYSTEM
THE TNFORMATlQ:-I I~ THI~ SFCTl()~; CO~CERJ>;I:-;G DTC A'-:D DTes BOOK·
E:\TRY O~L Y SYSn:M HAS BEF~"; ()RT:\~Fn FRO~1 SOlrRCES THAT T HF CITY Ai'.'D
THE TRl;STEE BELIEVE TO Bt RELiABLE, IWT Til!: CITY 'I'-:D THF TRL.'Sl H rAKE
NO RESP01'\SIB1LllY FOR THE ACCUR-\C'Y Dn',REOF TBE B(~EF1crA!. o\),'~ .. a-:RS
SHOULD CONFiR"l THE FOLLO\\ll'G I~FOR\lA nos WITH DTC OR THE Drc
PARTICIPANTS (AS HEREiNAFTER DEFINED,
De?ositOl)' TT1JS! Compa!l~' l 'DT('~) -... 1Il .leI as sr:cuntle-S dcpo.1.sitcry for lhe 1"'95 Sene<; A
Bonds. The ~995 S<Ttes . .\ Bo'K.i:;. ~ill r.c i5SU~d as. (,-,H) "rl:psiC'!t;d S-e<"unli{"~ rc£ist~T~d in the
r .. am~ oi Cede &:: C (I. (D1 Cs partJler"l-;q:: I1Jmi r,e.e i. Of'le" fun~ ·ie-gts.tered ... ·er11fi.~;,ue "ill be iss.ued
(or the 1O<f5 '}(:rio:s .-\ s,.;,d., in th~' q::pe~~t.: rrin.c,p.l Jr.l(Hrnt (of ':J ... -h m;o.:urit: ('If 'Ouch i~5U'"
:111d .... ,l! t-e ,iq:"('':''l~; v..ith nTe
DTe I,:; J ILrn:rd-riITr','s<: lr,,;,;:.i .,;, m;'.l:::' ",~JJ~iu'J :.;.;d;:r :1112 \;,:,.'. )',,>,;" !hnlir:~ L'lW, ,!
'I-..±:<kir.g 0r~;1J""ll..1I_'I,"n' \\~I'I':n Lh'C' rT'!c.:...ru:-;.:~ f·f lh~' ~-';;: .... Y •. "!.: H,~ .. nkiI'16 I ,l,''', ? 1T.,'mt-<r '.If thr:
F;;d.-':l',l.l Re':,-n'.'! s.~,y:~!'II, J. lk~1riTi-:' ("_'TT_'i.i',;','n' \;.,~h.J~ U;, me;.if,il',~: :,itlc;:: >';;;-':' Y(:ik l'rddT1Tl
(\'mlr:<:I~'i.!) Cc ..... i-'!, J."j J .;i :"-';:\~ "!~:'!":'_> r~'!-'I'1C[~-.:t fL<t':.LL.l!,t :il l;-,L' f'r,nI5j::>I~) ,-,f S-;-CllCr'. 1 JA
of tIl:: Secu..r.ties hd"',3JI,~';: .-\ct ,)1' i '-,I ,--f. D I'C Ill'lid, s.c-:Ilrili~:> ihJI i(, part!dp.ll1ts.
CPanil;::PJJw:.~} Ge't"')si,\ ,'1lh D1C. DTe ,~h" rJ;:ih~..lt('" th~ StHh:mi';;~ ;3JT\\)~€ P3ri.:~;r~h ,")1
~UIitje-s tran..:.a..·[ions, $u,:h 3-;:; tr.>II-ifei ;.<.I1j pk',:ige-s., ~n d~p..lsjle-,j :;ccuri!ie-<. lhr.~ugh ckctwnic
compuleri.:C'd ~~ ... ~,m!'· ... 'n!~"('har1ge-s in PJrtI!:l'r .. UHS· a;.;:";l)L:...'1:~ lh"rt.'-h:. dimill.'lti"",: (hr: nec:-d. iar
physic-<J \"\'¥J"em-ent of ~.:unl\~ ~trtifi,c::;ts. Lhr~;\ Pani,·ip~iS. in(hde ~"'\.:'-\n\il,'~ brd'.tr~ and
iJe3.lers. barJ..s, tnt>;l comr,.anH"s. dC;lring ~'.'Jt"_;~;)[lUJ1':, ,:'.r.d I.;cr'.3-irl olh~r o:·l"3.n~z.?.lion~ UTe i~
ownd b) a number of it .. Direcl PMt;~·;pJ..'lt.:; ar:d b,v :.h.:: :\e~ .. )"("'rk S:o.:-k F:\.cha.ngt·. Inc... thr:
American Stoc:'; Ex~ha.nge. inc .. anJ, the :\'allN'.ai Asso.;:~a,t\ .. m of Stturitii.'S Dea.ltrs.ln..::. A.ccess.
to the DTe s.~ stem is also araiLabk (0 tlthm such as 5e".:witl~ trr.J~C'rs and deale-rs. banb and
trUSt companies that cJar thro:Jgh or maintAin :I ~us.od.i.aJ relationship .... ;t,; a Dirt'Ct i'anicipa.'1t,
either directl;r' at i.odin:ctly ("Ir.d.:.rec1 rdCfi.:-~pants') The Rule:; appFcah!e ~o DTC and \lS
Participants an: Oil file ""'lUI !he Sec:urili~ and b:cbangc Commission
Purcft...ases of 1995 Series A Bond" ur.dC'f the DTC system must be made by or throug.h
Direct Pa.'1icipant.s.. ~hich ..... ill reccil,"e a crl!'dit of the t99S Sen:::,> A. Bonds. un D'rCs records ..
The oJ~'MfShlp iolCrCS! of ea..:b <k.'1Ua.l purchaser of each 1995 Series A Bond rfkncikial
O .... ner") is in turn tl1 be m;:orded (ift the" D;re" w.d Ir.di..-e-;t Pa11i-:lp,iU1t,' r~'i.:.Jrds. Re-:1dlcial
()v.ners ',.I,'ill not rec~i\.'e \>or.net] con!lrmalion trom ])1'( of their pW'd>a..,<. but Reneficial O~11er)
are expected to recei'o'C: \o\.rincn confirmatiOI1S providing details of the traruacti0n, as .. ~;c11 ~
periodic st..&tements ofthe:ir holdings, from !he Dire.:t and Ir.direct Paniciparlls throi!gn which the
Renefldal Ov.ner ;:-ntered ir;to 1M': crar:saclion TransfC!'rs ,)f o .... nership iOiereS[S in th~ 1995
Series A Bonds are t(i be aCt-omp!ish'!J hy emrie-s m:.'lde on th" Ccoks \)( P3J1icipants i.Kting on
khalfofB<:."netici-l! O''''ller~, B,,;[,{'!j';l~ Ov.rl::rs \\;U 11(:1 re.:¢i\c (,:;"rtii"iCJ.le-; rerr~)t'nlinl; lhelr
o'VInership interc'sts 10 the 1995 Series A BLInds nccpt in the ('\"(.:-/11 thaI use of (hI.:' Bo(,k"Emrv
Only S)'::item tor t."K 1995 Series .-\ Bonch is di5(..·Mllinued.. '
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L
•
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T0 facilitate subsequent tra."lsfers, all I'NS Series A BOr1d~ depc:)lted hy P~>..'1itip.ln;$ \"llh
DTC are regis~ered in the name of DTC's p.annrnhip nominee. CedI: &:. C" Tne Jep0S!l (If Ihe
19'95 Series A Bonds with DTC' and their registration Ln the name of Cede & Ct~ efTccl rr0
change ill beneficial o~ners.hip. DTC ha.~ i1(l knowledge of tM: actual l:knelkia~ O\.\.T;ers \ll th~
Bonds: DrC's rel.':ords ~flec! only L1e identity (lfthe Direc:l P""""IC;ranl~ :(1 who<;.< ac..::C'um::; :'l!.:h
19'95 ~ries A Bonds arc credHed. Y.'hich ma~' or may nOI r.c the Brncticial C"'m~G The
Pa.'1icipants ""ill t('l11.a.in n:s!?Qnsible for keeping ac..:-oUflI of their h(l!din~:; nn I:-<-h..1Jf I,lf lnelr
Cllstomers,
Conveyan~ ofnotic...-s and other wmmunlcations b~· Ole to D:rect P31ti<,lpa.nI.:,. hy Direct
Participants to Indire-.;:t Participants to ~dicia'l Ov'n¢'rs ~ill ~ I!!o\;emed b~· arr-mgemf!'1'1{~
among thMn. subject 10 any statU[Clr)' or regulawr} reqllirerr.erm as may be-HI (,lT~·t I'T':,"" lime tel
;ime,
Neither DIe nor eerie & Co. v,iil graI'lr fIr Wllh!',;~!d C('i1-,'~!n! U,iih re~t'<;'l' i,) \~~ ! 'i~.~
Series A &;,nds. Ur;J{~! its usual pn..;ed',lH:s.. IY;C r;-iJi!~ .~.:1 Dr::nl~lis Pr,I'\~ r,~ t.J";: i'lr:, .i'; "","',
as po:;",ibte afte~ the t<.:<:ord dJ.t~ The Chnnil:m~ Pw.:y as~\,?,i\'-(\:2<: ,\: C\, ~, "'\\:-,~-;"i'. i["~ \',r '. ,·,,'.1:";
ri~hts to those Dir::..::\ Partir:lpants. to .... b",e ac(,,(~l .. mr::: ll',t" l'1'6 ~·:,..in.\ 11,,:-.,;:. .:.:c 'i,'j!Lt .. ,..I "I tr:<"
re.:md date (identltE~'1.:l in d li.:;:tin!l21t:!L'h;-J 10 the ()mn;"'l".~ Pm,,:, 'i
P<lymcnts <Jfprinclpa! Qfar:,j in1eres\ 0.) th:: l,j4~ Sm;:s ,\ g,~>nj:o-\\dll--... : m,d,;" 1(1 Pl(
orcs prJ,cti.:c is to credit D:recl PartiCipants.' a.:(O'.u"lb ,,In ~.ach pJ~.'lb:t.' Jat-.. in 2;"-','r.j.:.. .. .;.~· v.;th
lheir res.~ti\'e holdings shov.n on DTCs re"1;:(JHis unle~;;. rnc hc.i re3....~~n I,) r.elic\ e lr-..Jl il \\ iii
not re1.'eive paymenl on such payable date, Pa~'rr.ents by PaniciptJ"lb to Ber,dE::iJI O .. "n..-r,;. , .. jll
be go\"emt'd by stsnding instrUclions and cus1crnary practlce~. as 1$1r.C' C<lle with s.e..:unli,::,. b:ld
for the gc.:courJt~ of customers in bea.rer form or reg; ster .. d in ':,cr,"e-t I'.: .. m~:' '!',il..J ....... Ii! h.' rhl;!
responsibility of '5uch Partidpant and nnt or UfC, Lil.' lru:;lt:e, fir It.-: Cty. ,U\:'jl!"("l til aJI)
starutory or reguJa!ory requirements as ITU} be tIl dfel .. t from lime teo time P3ymcnt (11' pnnc':lp.a!
and interest 10 DTC is the respor..sihitit), of the City or lrle Trus[e-~, di.5b~mer,t (If ~Lw.,'h
pa.yments to Direct Panicip.at1LS shall be the responsibility of Die. ;"nd disbursement of such
p.ayments to lhe Beneficial O.NnttS shalj be the res;x..n.sibilil), of Dift(t and Indirec! PJllicipa..'1G
DTC may discontinue-providing its :.ervi~es as. SC1,:urities depoJ,,;:tof)' ,"it'" r-:sp<"Ct lo the:
1995 Series A 80IKIs at a.'1)' time b)' giving re.a.sonable notice: !L\ the City or the I NS1:Ce l 'ndl:'r
such circWI'.stances., in the ("vent that a soc"essor securities depctsilory !'i not obtained, B,md
c-ertificates JUt. Ieq'.rircl to bt -printed and de-li",'cred.
The City may decide 10 di:;.::ontiI1u;! use of the s.rs.!em ,)j' book·emr;. -f"lrJy tJ-aru:fr.:.s thwu~h
DTe (or a SU(;cesscr securities depository), [n that e .... en~, t 9<.")5 Series ,\ B.)od cmifl<::al:es ~ilL be
printed and delivered.
SO LO:>1G AS CEDE & CO. !S THE REGISTI'RrD OWNER OF THE 19'1; ,~. RH" \
BONOS. AS NO: .. il>-lEE Of DTe, REfER[~CES Hb:RUX TO HiE O\.\"~ERS or 'I HI,: I ',' 5
SERIES A BONDS 10THER IHAN AS SET FORTH t:NDER'TAX M"lTERS"1 SHAll
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MEAN CEDE & CO. AND SHALL NOT M::~AN THE BE'iHICIAL OWNERS OF THE 1995
SERIES A BONDS.
THE CITY AND THE TRUSTEE SHALL NOT HAVE ANY RESPONSIBILI ry OR
OBLIGATIONS TO DTC PARTICIPANTS, TO INDIRECT PARTICIPANTS. OR ANY
BENEFICIAL OWNER, WITH RESPECT TO (I) THE ACCJ;RACY OF ANY RECORDS
MAl~TArNED BY DTC, ,...,'1Y DTC PARTICIPANT OR INDIRECT PARTICIPMH: (Ill
THE PAYMENT BY DTe OR ~'1Y DTC PARTICIPANT OR (NDIRECT PARTICIPANT OF
ANY AMOUNT WITH RESPECT TO THE PRINCIPAL OR INTEREST DUE ON THE 1995
SERIES A BONDS; (Ill) THE DELIVERY OF ANY NOTICE lHAT IS PERMITTED OR
REQUIRED TO BE GIVEN TO THE O\lo'NERS OF THE 1995 SERIES .A BONDS UNDER
TIlE !NDENTURE: (IV) THE ,;ELECTION BY DTC OR ANY DTC PARTlCIPAXr GR
INDIRECT PARTICIPANT OF ANY PI'RSON TO RECEIVE PAY\fEl'.T TN THE EVENl
OF A PARTIAL REDEMPTION OF THE 1995 SERIES ;\ BO:'-lDS; (VI ,\NY (0'.'S['.'1
GIVEN OR OTHER ACTION TAKEN BY DTC AS HEGISTFRED O\\'~'FR OF THF 199<
SFRIES A. BONDS; OR rVI) ANY OTHER ;'-.tATrER.
THE TRUSTEE, AS LONG AS THE BOOK·ENTRY O:~LY ~\YSTE~IIS t;SED rOR
THE 199\ SFRIES A BONDS, WILl. SFND ANY NOTICE OF Rl'.DE~.IPTIO\' OR OTHER
NoneES O:-.,rLY TO DTe. ANY fA)LUR.E OF DTt' TO ADV1SE A>~Y DTC
PARlICIPANT. OR OF ANY DTC PARTICIPANT TO ~()"IlrY ANY BE~EfICL"1
OWNER OF ANY NOTICE AND :TS CONTENT OR EFFECT WILL I'OT AFFECT THE
VALIDiTY OR SUFFICIENCY OF TIlE PROCEEDINGS RELATING TO THf
REDEMPTION OF THE 19'1S SERIES A BONDS CALLED fOR REDE\IPTIO:-l OR or
ANY OTHER ACTION PREMISED ON SUCH NOTICE"
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S&y DOC 'SF9~29(}O i!D1JCRQ 1Ji\ TEl) I ~ U~ ')-\
SECURITY FOR THE BONDS
Plf'dg~ of Net Rnf!Dues
"Ronds" mea.iS, c{)lI«livcl)" the 199{i8onds, thO! 1992 Seri-:-s A Bonds. the 1995 Series
A Bonds: and arty Parity Bot1<i.s issued .and at any time Outstanding !.lnder the terms of the'
Tndent.:rt" and under a Supplemental [ndenrute.
·i1le Bonds are-special obligations of the City a.n<l:, PlJJ"SuaJ1t to the Indentwe, there are
pledged for t~e benefit of the Oo\.ners of tM Bonds that pertion of N::-t Revtnues which is
rJeC'essaJ')' Ie pay the prir.<.:ipal or Redemption Price of and interest on L"e Bt)nds in any E"iscaJ
Year, together ~ith aU moneys on dqx:Jsit ttl the Debt Sen'ice Fund and Lie Reserve AI;<;OllnL
The }:~t Revenue'S <;hali not be used for an)' f'ltner purpo:)c while-any of the Bonds remain
outslanding. except as pro"'ided in the lndentllr.~. This pledge shall constitute <l: tirs1, direct anJ
e:\clus~\'e cha.rgc ~d lien on tht;' t'~tl Ren:r.ues fOf the paYff1em of the principal or Redemplion
Price: of aPd j nt~reS1 o~ the Bonds,
Trl'." ~";ei R~\'enue.> constitute a lrust funa for tne securil), J.nd payment of Ihe principal or
Rd~mj!i;.I:fl Price of and int;::es~ on the Bond:;, The general fund 0fthe Cil;)' is [\ot liabie and the
CR'c1ii O! ta.;iT,g p<.)\~e, uftl'1e Cit)' i~ not p!edged for the payment of LOt! prin,ipal or Redemption
Price of~nd inlefe'5t on fhe Hands, Th~' O'''.-nef of the Bonds shall nci compcllhe (::'I:.erCl$e" orthCo!
u,ing po ...... er by the City or the forfeiture of its properry. TIle principal or Redemption PTle.; of
an...1 interest on the Bonds arc not a dd;lt of the City, nOT a legal or equitable pledge. chaxge, lien
or encumbrance, upon any of its property, or upon any of ilc;. income, receipts. or re1,'enut'"s eXI.:epl
the ~ei ReveT!!..I'!"s of the Enterprise.
The Cit)' co .... enants and agrees that all Gross: Revenues, when and as received, will be
ra:eiv~ and hdd by the City in trust hereunder and v.ri:1l be depo.c;.ited by the City in the Re' .. enue
Fund (\\tUch has heretofvte been ~ated. pt:rSU.ant to the Indenture), and the Cit), shall only have
sl.K:h benefidal right or interest in any of sucb money as pro\~ded in the IndentutC. Ail such
Gross Re¥'enues shail be transferred. disbursed, aIlocated. and applied solely to the uses and
purpcses identified in the Indenture. and shall be aC\;Owlled for separate 1;, and apart from all
othcr money. funds, acCO!lnts or resources of the City.
Dtfmitioru
The Indenture defines certain tenns. l.~e ust: and mea.TJlngs of which are important to an
Ua'1d'l!rstanding of tll.e :security of the Bonds.
"Bonds" means, collective I)" the 1990 Bonds., the 1992 Series A Bonds, the 1995
Series A Bonds and any Parit), Bends issued and al allY time Outstanding under the tenns
"fthe ind;:mure and under a Supplementallntkntun:.
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i
"Charge$n means fees. (olh. as~es~men!.'>. rates. and rentals pre~';ribed undrr the
Bond Law or an.y cth--r law {If lhe State-by tIle City tlu the water. gas. or electric c!1crgy.
or t~ ser\;il;~s and faciiities cfthe Enterprise f\ .. , .. rnisned by the City,
~t... .... terpri~~ means the · ... h'Ule and eac'r') and e\'~f)' part of Ii) the existing ele-ctric
encrg;. system {If the Cit~. comprising aJi racilities f(lT the generation, production.
transm,iss!(!o and distnbution of decLic energy, (ii) the existing ga~ system of the City.
comprising all facili~i~ fOf th.o: prJdu;.;rinn, ~1orage , transmission and distribution of ga5
i~')r put-lic or pn'i:ate USC"S. (iii! the e;\isting "'<lter s)':Jtem of the City com.prising all
facilities f'3( tt.e-obtainin~. conserving, lreaung, distributing, storing and supplying 01"
water rOf oomestle 1.1..';(" ifTit,':at~on. sanil.:!tion, indusulaJ use. fire protection, re<::reation, or
an~ C'ther public ar pri\'a{C' LJ.5.e"S, (jv) the c-~isting smitary .s.("werage and sewa.ge disposal
s~s!em of the Cir~. c':..mpn.slfl~ all !acilities for the colleclion. G'eatment OT dis;posal of
5C'>\a~~1;' .md v.3.S!c. ar.d (\'} the e:-':is,tlll; st(iml and surface ... .;\ler system of t~e City,
(I.,",mr-ri;.u' .. g a:1 l:!ciiit;-:-s f,~; (11(' c • .)iicwon, tn:a~.<'llenl .and disposal of s-torm and surf~.ce
' .... ·a:~f. ;'.!",lld::ntif:cd ;!~, I~c' 5-iL1rm ~ .. !1.j Surf,c.:: Wa!e, :\1:lJ1ag<!l11enl EI1~erpri<;e Clld 'rti1it~
1r; Or,i,r1:.J"":,-\'" ..... '?'i;) cfYc..:l!Y-= I)n Ik..::~rnber :!'1. 1%9, in('lucJing all addilion~,
r~.';l';'~ ":r,~ .. ~ .. .;:;\;~ ,c' LI)fi, ~JlJ i mr;c.1\ t:'nient~ to each :such sys\ern, p;spectiveiy. or any part
Ih:::T~,1r .. b':t!'Jrre-r ,,;:, iuire,-j cr ";.J!HT1-lClc,j ~11 fi:,anceJ
(1J,-'~:' Rl\<:'r:''':'~~' IT,l,i..'l~, :t\! ",l..Jly rcr:lx.l l~j (OI1lPUW(IOIl. ;311 gTOSS charges.
ie.:ei,.ed ((IT .... J...I"JJ ail ,:'1(,.('! ~;r0SS inc;Jme and re'l'enues. derived by t!'le City from, the:
.,\wn!:i'Ship or ('pero.tiC'n o')f the En~C'rrrise or 0thcr;.~iS( ar1$il1g fwm tIlt: EIlterp~ise during
s:. .... h pc'1ivJ. ir,,:Ill,iHlg tut not l!miti."d ll) (a) all ChaIge!O ;e,eived by the Cit}" (b) all
,C"'..:eirts detin('o tii:'fm the i;i\estmen l {)i fu.nds hdd by the Dir(".;tor '.,)f Finance '.lr the
Tr~lee \.1.'lder the rnd~nruro;", I':) transfer:. from (hu1 .;:r.clusive of ~ny rrans,fer:; to) an)
~t.ihili.i3ti()i1 r;:~ejY(' funds, an.) (Li) a!1 iTIur.ey) !¢<,;e~H·..j by thl! Cit)' from o'.her public
cntitles. 'AnoSt" irV-~iunts arc SC'r\',,-d r:-urs.uant to contracts .... ith the Ci1)',
-~UiTltenar.ce and Operation Co)ts" ITleMS the rt~n.able and necessary costs
spent or in.cwr:d by the City for rnaiJltaini!1g arid openuing the Enterprise, calculated in
ac,ordance \lIiili wu...."<i act:~)unting pr.nciples, including the cost of 5UppJ}' of \\ater, g<L'!>
and electric energy ur..der ccr::traclS or othc:r'VI"ise, the funding of reasonabJe rese~'es, and
alJ rets09Abk and oeces:sary e .. "<.perISeS of ma."lIl&ement and repair and other expenses to
maintain and preserve the Enterprise in good repalT and working order. and including aJi
reasonable and neces.~.ary administrati\e costs of the City attributable to the Enterprise
and the &od..s. sudJ as sal..nes and ~age-s and the necessary contribl..ltion 10 retirement of
e!tlployees, cwl!Tbead. insurance, \.a.,'(es (if any), expenses, compensation and
indemnification of Ll].e hustee, and fees of auditors. <lI:c{luntaTlts, attorneys. or engineers.
and including alJ other reasonable and necessary costs of the City or darges required to
be paid hy it (0 comply "'ith the term .. or the Bonds 'or the Indenture, blJi excluding
depreciation. replacement and obsolesct;Tlce cbarges or reserves therefor and amortil.ation
()f int3..T'Jgihl:s or :)lher Cx1oU.:;:pili;.1 J;nlrii.'~ of a similar nature ..
-16-
"Net Revenues." me:m.'). for an~ period of t:(").:npuUlI:on. th .... amounl of 1M Gro~s
Rl:venucs rec:eivcd du.rln~ such penod k"$s the J...'!10lllH llf ~tainter'.an.:e and Operation
Costs becoming pa}'abk during st:dr penc',d
~?a..;t)' Bondi" mca,.,s all t-ond.5, note-s. ~1T orh~ (I~ligai!Om {inC'hJ(hn~, without
limitation, IOrlg-term ('C'ntr3cts, loans, $ub-1C'a.~ (lr r"lmer i.ef:al fina..'X'ing cl1Tangements}
of the: City payable from MId .secured by a pledge of and lien uror. a,.,~' of the Net
Re .... enues jss~ Oi incu.'1'l"d en a panty with llx' 1 (N3 Sene5 A RNXis
The: Second Supplemental IndeniUrC defi.nc-s c't'1ttir. adJ;rioo.a.l ,mTl5 ~tllC'h are import-am
to llIl understa:'..ilir-g of t.~ I ~5 Series ,-\ Bonds. Cmain of thest-.:kfirlC'd ~Nm5 are s<1 forth
below.
"Altern<;J;\'C' PrriC\;( me~..11..5 1.ni' r:-rojccl id~nlit!t!J hy 1.he Cil~' pUGl.,.ani t,) Secti,,,;1.
3,1J4 of the S~cl.'nd Surr;::-ment;1 trd-:ncl,lr:' u:;jt>rt.:ll..rn fl,", I,it.' r:.U'-p.,l,;.e (1j' l!nrTO,.jI1~.
r~~1f1Stru:;;i!:1g, C-:dJigin,f. ~'-:te~..ri!:~:, r-':::<:I';:Ir1~ r;,:;,.;j,;n~~. (""':')lrr:r;~:, ,.'L:\ f!C;):,-, n,!!.
emlx::ti-snlng Gf llt~.l!r,\is.e lmpr()·.~nc; :di ,,g ~"'l:-r-2J( ~,It!:t' Er:"'.rr:-i '.,:
"llit:p:~ __ ~i.T~~C l1t.~.~~~, v,'lth :C5r>":~t l'.~ t 1,.: ll.;':;-:· ~~jil" • .\ BL,,..,l:;. Jl1r: .. ' t
and ~t"rnt--.-;r 1 in ~')ch >·e.:u-, 1:"'..;.:. r:11 r,.,,: r;.!r;~ I, I <:;'li5 ,-... ..--J ~" ,·~;':'J!:l . .! :(1 I";I~ 0. ~,ny 1')~l5
S-;:ries A HOI1 __ .h r~rn.~-tin 0:~tst_l!1,i,rlg
~mi...1T.~.~.c m-eaI1S ceru.in ex:.;n.si'~'rl:S .3..~.:l :mrrt'\emellts Ii" ,he Cit) 's s-tOml
.jrai~e and suri~e '-.\",ter sy:i:e1'n Cl)t15!sting of 5:n.:d I C"S. d=-'iit;r. P0JCCt5 -md ,,:apitaJ
impro\·em~nt.s. more f ... ily describeD ho:'T<:'ln l.JJ'Ider the! 99:; P~i"IJe\:\
i! '195 Proiecl.I.~rur mean..:;; the fU!1J h)' thL\ name ~ublishe-d .1lld h~1d t"I~ Ih(.'
Director of Firunce ;>Ur:ilJ8nt to :he &-cond SupriemeotJ..! Trusl Indcmun:.
"lQQ5 5ctiCS A ~ .. means tht &r..d..s. a!..wnzed. b;.-the Second Suppie-mentaJ
Trust Indenture and the Bond L. w.
"Original Purcha.'i!'t'" mc.m.s me bidder to ""nom sale of the }<195 S--..-ries A Bonds
is a,","ardcxi by the City COWK;il.
"RecQrd Da;~~ m:2lLS, v-ith rt'$J'C'1=t 10 the l tNS Scr:ie-s A Bonds. t~ ftfteenlh
n 5th) calendar day of the months imml!'d.ialel~ rr,=('I:'·,lr.g a.'1 j p.te,e~l Pa~ ment DJ.!-;-
"Iron floods" rnearu .... ith respect to the 19<)5 Series A .BonJ~, tM 1995 Seri~ A
Bonds maturing on Ju..~ I. 2020.
"Iru<:t Qm.~n D,e-artS, ..... l.th re'3pet' \i) the 19'}S S~rics A Bonds.. l'r.e rrincipa1
cmp0rat'" tfU$! offlCI: of me Trw;lee 3t San Fr.arl('i:5<l), C,;;.l!fom~.l, or ~1 ~uch olh~f or
additional offices as ma~' be specitled to (hI! ('1[Y by the TrJStIX in ~Titill.g.
-17-
.~ '~"'''' q
I' i ...
(
---------
The Cit}' covenants and agrees that ali Gross Re\'mues . ..",hcn and 3...'. re;;ei\-cd. \~lll be
received and held by the City ill trust and will be deposited b~' the Cit)' in the Re' enLk" r·.md and
the Cit)' shall only have s'Jch beneficial righl or interest in any of such m(l.r.('~ as pro\ lcd ir. Llc
Indenture. All such Gross Revenues ~hall be tra.ru:ferred, disb~lf$(d. all0Caled a .. ,d .l:p)C'bCl.:.~ ~)!el~
to the uses and pw-poses set forth in the lndenture, and w\l be aCCClunted for ~arat~ly J.J1C
apart from all oth:r money, funds. accounl'i or other re'Sources of Ih( City.
The Debt Servi~ Fund, as.i special fund. ar.d the Redemption Accoutll and the Rcs<T"'c
Account, as special acCOWlts ll}erein, rus .... e been created PU!'SiJaIll 10 the [odenture.
The Debt Service Fur.d is held and maint:iined by tile Tru5tee and lhe Re;,cl1uC' ~U!ij i~
hdd and maintained by th( Director of Finance.
All Gms" Reyenu('s, are held in trust b~' the [)lr(!.;;to~ of F~'lanct' in the R(:\'-'~H: Fw~,i : .. .'lJ
shall be applied, rr-aniferrcd. used .an:! v'ltJ..drawu as {oJ[O',\s'
(1) ~IatiCi;~ Cl'stS. The; Director of Fillanc~ slt::.!1 iirq P) (iCrm ti;.;! ;T'.I.~'<" ~ kll tj;~'
R,,'.,'~nur; Fund the blidgelc,j Mail1te!':l.flce .and Op,!ralioll C{I~l.'. J.~. <'J.;('!-) c,"I~\, l·'"~':~~'T.'· du,.' J"j
pa;";J.ble;:
(2) Debt Sep:ice Fllnd, On or before th.: ~ond da) prior t(' each inr.tTt;':il PJ~ ilie-nl
Dale, the Director of Fir.ance !oOh..all transfer fwm the.: Re .... er.ue Fund to the TiVS(c-c fM (h'p'-il In
the Debt Service Flmd (i) an amount equal to the aggreg:Jtc aIr.OU]'1t ofinlaes1 te' k.:cmt' ,lue J.nJ
payable on aU 01Jt5tandin(!' Ronds en the 0.:\1 suc.;ecding !n\erest Paymer,t D,ll ... rrus tii) ,VI
smOUllt equal to the aggregate arnoum of Principal In:stallme-nG IxC0ml!l~ dut' and r.J~ a/:1~t" !.'In oln
Outstanding Bonds on the next succee<i.ing Pnn-::ipallnstAllmenl Date. plu.-,.;ui af{W'.lm equal to
the aggregate amount of Sinking Fund lnmllments :;>arabi!! on the next s:J'.:i.'C'eding Principal
InstaHmeot Date. All interest earnings and profits or lo:sscs on Lbe imestmen! (If aJ1\oWll'.. in the
DeN Service FWld shall be deposited in or charged to the Debt SClyice Fund anJ applied w the
purpose3 thereof. No transfer 6nd deposit need be made in:o the Debt Scn'i(:e Fund if It..e
amount contained therein. taking into a.c:;:ount investment earnings and prnrits, is at i~t C'qu.aJ 10
the Principal Installments or Principal Ir..smllmems and interest to becom(' due or. the ne.'1
Interest Payment Date or PtIDcipalInstaUment Date upon all Outstanding Bonds..
(3) Re;wrye ~QWlt. After making the raym·znts, allocations a.r.d transfer;; pw\,jdeJ
for in subsections (J) and (2) above. if the balance in the Re:)er\'~ Account i~ le:.s dun th!;!
Reserve Requirement, the deficiency shall be restored by transferS from the first monC')s v.hich
become avaitable in the Revenue fund:o the Tru~1ee for deposit in the Reserve Ac.;:ounL
l4) ~. As long as aH of the forego'ing paymcnb. allo;";ltioos an.:.' tI;m~f~'n are
made at the time:; and in the manner set forth above in subY.!ctions ll) lu (3), in.::il.l:'<l',"'::. :::.f!~
moneys: remaining in tile R~venue Fund nw}" .al any tim.: 1>-.; ue",ted 3$ :swpius and shall ~
applied by the Dire-c!or of Finance to the purposes rcequ.ired ~y the City Charter.
-IS-
--".------,--. -.; L
~&y l)OC [:;r~U90(j,OU21 CP.Q (M 1 f_1J I;> 05 9..J
Ratt Conn ant
The-City shall nx, prescribe, revise and ~oll~\ Charg.es during each Fiscal Year wh.ich
(tC'gether ~;th other funds transferred from SUlbilization reserve fund:s and wh.ich are lawful!)
available to the Cit), for payment of any of the foll~l\\ing amOUIl'ts during such Fiscal Year) arc' at
least sufficient., after m.ak.ing alJo",ances tor contingencies arid error in the estimates. to pay the
folJo\.\i.ng SJn()unlS in the follo,"ing order:
(a) alJ Maintenance and Operation Costs estimated by the City to b«ome due
and payabl:: in such Fiscal Year;
(b) the principal of and interest on the Outstanding Bonds becoming due and
payable during S'lLCh Fiscal Year, including the Redemption f'rice of Term Bonds subje<'t
[0 Sinking Fund Installment red\':mption durin.g such }'iscal Year;
(c.l all otJ .. er pa)lnents required fer ,:ompliance with the ifide!lturc and Llt'
instnL."'ncnts pursuan1 to which any Parit), Bonds shall haV1; t..;en issued; ajld
(d) i'lll payment;; r~quirl!d to meet m:y ether obligation:: of the: Ci~y y.,hich ?.rc
charges, Hens, ci\cumbrane~<:. upor>. or payable hom the (lrc:.s Revcnu!O:s or (he ~ct
Re\~1Jues,
In addition the City sh.a.ll th, prescribe, revise and c{Jlt.:ct CharJ!l;es during each Fiscal
Year \J\.hkh arc suHidenl 10 )'i.eld Net Rev'enues, at leas\ equal 10 one h1.lI1dred I\yenty·fivc
percent (125%) ofth~ amounts payabl~ under tbe preceding clause (b) in such Fiscal Year.
r.~terprise FinandsllnforlUlition
The fmanciaJ operations of the Enterprise an: summarized U1 the m'o following tables.
The Bonds are secured by the Net Revenues of the Enterprise. The Enterprise' !;oJlectively
represents five utility systems and details of the op'rations of each s~h utility system are
presented under separate sections herein. Table t presents the: operating history of the Entt"fJlnse
and Table 2 presents !he project.od operating «suits of the Enterprise.
-19-
.. ,."-.
\
S&V DOC I<::;F~.:~9:JO,Oi}2j C RJ.) DA 1 E: D ] ~ D5 9~
TABLE 1
'Er.tllltpnw Fil'llncial Summar), (I)
(SOO(1's)
(fISCal;.~ ba:\.~sl ~-9n ')(1." 91-91 92·93 93-94 (2) --------P.EV£Nl}ES
~ 591,91'9 S %J~<J 100,5"/1 105.113 107,:'75
In.....,, Hi3] S,972 6.181 5,989 5.197
"""" 2.&57 ),477 2,9Jl 2,j61 l.i,442
F~ '(ltl<r"K.in~ !ger1(it~ JAI9 .5,027 5,995 5.651 6AO)
rro:n C~ ... ~ Rn.en.e 5As.a 5,939 4,!OQ
GROSS RE\,E~t'[S \(:5.636 llO,S65 I:I.I'P 12.5,213 1J7,l47
[\?[\,"SES
?C::'C',1..."..e; -I7,0! 8 -17,21--1 -IUS, 42Ai6 ~-I.6')9
()yoe:w-~, \.~,':~: .. r.l::,e &: Al1m;;, 2S,5S1 16J9(l 27 JS7 ':6.9 ... 6 li.Hi
.i~:":: r\..;tr.~.\ [)e[o; ~T".;i:t· -:-;CPA 0 _~.:' 8 ~ 6,9],9 7,)! S :.312
klr, ~,t.~~.;: L~h, ~"i';i;. "l"Ar,c 0 " [I 0 777 •... _-------------
\' ,.;.1'-TE~~,·, ~.:( 1, , .... CWEk.A 11(l~; ens T,,-i :',i';05 73,8~'l : 5.91 ~ 76.680 81),495
BO;-..'DS DH3T SF.R.\'ICE
[)(-N "x:r. i.:t -i q~] fk.!-.-d.J. 5-13 .~3S 5029 515 -IH(-l)
Lk."'"b! ~,c'"filC't -!-)S5 Bor1!h i,014 m I] il (,
Dd:,~ $.en '..:e -1*,) Bo;IJ~ " "939 9!S9 992 992
C":t,~ xnl;!!' 1'i9~ tkr.::; e, 0 " JJ7 191 ----------_ .•... _---
:uTAL E;';PE~~SE"S 'j'·U6) gO.780 il .. Bl 7857~ 81.:> 12
INCOME BefORE DEPRECIA nON 31,474 J(',085 ·0,716 46.619 5.1.%35
[)epre>;;~}oo 5,0&4 S.61fj S.93 I 6,952 6,73-9
i:-; COME (Mfore operating trlrdfcl"5) 26,390 2-4,392 JJ.ns 39,687 48,096
"Il.fT RE \o'liNULS {3} 33,031 31,971 45,1.>4 4:5 ....... 3-1 56,652
ikJ.d Odrt Sen-Kill .... )'.~u 1,557 1,893 1,518 1.894 1.!l17
'8of;d {)f.bl Slll-n-Kt Ct .... ·uage (t) 21_21 16.89 29.80 15.61 31,18
i! r These toolL. &~ n·CJ ",1"':1 lhe City 'j RefoJe Eflle:pnu The (Ire.sematiorr aiso diffr:r5.fro,71 GffAl' due 10 lne
indl.$;CI1 ·"'.r pr"xipa: tf!p..Iymel'.f or. outJIar.ding debr
(2) I.:naudi/ed
(31 SCI Rc'n;1Wt:.! ~t' ~tJku1i,llad as Cross R~w~ f .. ·j.> Mailllcnar.ce and Opamlor. COlis
(JI .-411 ';l.It.\f,;n.J:n~ ,lSl8'J 8r,.,J.., .lu>'? b:,,-~/'<llr rc·dtYI11 .. J j'I/t>C.l! )e,,~ IY91·9-4
,
i 'l
TABLE 1:
[i\!f'rpm.r FUIJu(iaf S ... ".r) {l)
{SOOO's)
\fi:s.c:.&~ )'~ar bti;s) ... ~ ..... 't·91 97·911 n.99
UVf~L'E.s
Sal<s hW.~c;..<,; 103.051 ; II ,CO 120.";71 i2~.15.,
Interest ~,.::!59 .H03 .UID 6.038 6108
O<hc 2,909 2 "')6 2.%8 2.9OS2 3,(169
hom roatnctltlg. iIIm;;n 6 .94 6."14 6.11)6 7.0% U4-f
F:un Cai.t""e!";c Rc:v.:r. : ·U.'{) ·UJD ·uno 4.8)0 ~.83D --------------------------
Geese;. F.£: '.'1:. '\t 1:':\ I ::,~,~'s. 1:7 S'::O !J1,'~n 141,7]3 14S.619
~~PE~'5tS
P-.;~,-t:!.<.'"> -v,,<-.-.:, .~ I ,.;(.~. ~_1.I:.q 5.', .:~ i _,9 J].7
~,,::r; \1::. ',-:: ~ !..-~,: " .;':,..-, ::; ';"'~ ~':',~.(';; 1.:.lr'oi '~.4iQ _:4,S', I
h·~.t i\~~r';.l [}~~: 'cr, ,.: • )o.;~ PA -.: ~ J -;. ",},1 i"V.') J 6i I 1.542
I«~!~ A.i;:-:1;~ [l.;,~ , '.:~ .~ ;( '.\,'.;;-' , ~ (':' I ~.-q r,2·p r ,,~..\8 1.2Y"/ -------------------------------
:,!:I, r:_TF'.' ,\ ~,'C I ,\"'['l i'ln f=:,o\ I [,' ':'--(I,X. T~ i S.·~-".:: "j _t,~o Y ',0:',: '-":',~4S )02,')8 1
ao:--;os DEGI "fR\'K[
r)ctw :5-I:nj,.~, 1:;t-;')Ek-n6 "" ~ '::---1-l 991 "" ().:-bI: Sc-r.-i"e" -l~.! B.x,,is ]&6 J ~5 33:; 1iJ JS::!
Dttllw,kr 1~5 Y.fi~~ /, Bl.'n.-h(l[ 4 ~Cl q,XI 9.;':,,1 Q()(l >)0 -----,---
TOTAL F..:XFI:S';;f:S '-"":1,'; 71 <;;. 'L16 '";7):Q 100.i 19 lO~.26-1
'~(OME BEfOI<.E OF PRF.C I A T IO~' 37,427 33,!&.I HH? "1.ffi1 ~O,J46
~1aIioo ',111) ?7oo 8,11.1 SA9] 8.8~6 --------
INCOME l~fc>e 0pO"2tmg r:aru.fm) 30.1 :5' 16.i&4 26.~ D,III ]1.460
NET RE,,'ENtf£S P) 3<;256 :\6.'" JO,ISO 43,B78 41,.623
BOfCod .DrIft Stn"kI-ht'ani 1:1 ,..,. l.lIO 2.!79 2..17" 2-.211
&il:d [)ttt Sf'n'lct c.:n-er1rc (x.) 21.46 15.% f6,17 ]Q.29 18.71
-------
(I) T~_u tables ::10 nc.f r4Jr-l IN Cil}<.1 &fw.: ~UPI'L'~ rft,; fV€.H:nJaJJ(;I1 abo dJjJ~r5 from GAAP due ta Elle
j~/-.aiorl t:fpr-i~~ipD.j rerJ)-'7ftt'nl or.!~ CIf1JJandu-;l. ~t-I
0) E,sl~~d
(3; Ver ~J .vi: cd~'~/aJ.~d as G'-OH Rn.~mIl:J len ,\i-ajotJe'lJQ".ce ar..i O~r~"UlCm C"5U
•
Tabl~ J below sets forth \.he financial res.lJh.s (If each of the individual :"Iility 5) stems.
\o\c'hJch c<llletti ..... ely comprise the Enteipris.e. T~ Electric Utilit) S::iletn repreSC1ll!, 5~e~ Dr l~
Enterprise's Gross Rcvenu::5 and 60'% of t.he total Emcrpris.c operating expenses for tV i99]-~.
The Gas Utility system represents 13t)'o of Grass ReHfUJeS and 17"~ of !.he lOW Fnterprise
operating expenses ferr: FYI 993-94.
REVENl~ES
Water
Ekctr~1;
G~~
Waste'\\Slcr
$Ioml Or.-.:nJlC
~'(,)m ("("'l1tractir,g a8.'~n, '(';
Fror CJI,,~~r-'" Rt,~{.i
GROSS RFVE:-.. UE\
EXPENSES{4)
Wilt~r
Elecu(c
Uu
Vt'3.$t.eW-Uer
SlQm1 Orainage
TOT Ai. EXPENSES
-----
TASLE3
Rne-nlllt1 _0\110 Openlithll Ilpnu.t'!l B~' t:tUit) \ 1)
, r=J,~:!! 5 , , .:f I'}. ' .. 5 , : I ... ~ .',
..,5m~ '<;'i'.J..(:' ~!A:;') "'''
~ <;;
1~A!9 la.1 ! ~ , (.!,) i , ~<. ,
5.9:LI 1.f:'~.2 , , , " ~ .,.",
.:'5S: , , ~,~ I ., , ','.1
-' ·11') .' ,(1::'7 , ';-'.1 , ,','-1
';' ~ -' ,,",,-_._---~~--.---
Ilj~,6:'6 , :U,M.' I , , t .. -i , ,
30-'" '10-" 91-~j 91"~~ ----
S . ..,? I \94~ ;,(-5:' 8.'::1:,
"OS8.~ -l7.'1;8: "6.7(~ ...; ~ ~.,~q
!4J~" IS,1oW 12,5"H D.::'I'5
10,315 [O,JIO 10,40? ~D.·D';
" ,C(I 7~C; L?33 -----
14.161 W:'1&O 77,43 l nSi'4
S , , I":' \ , " !'7~
-';'/.:~ -;.~ ::'~1,. , ,
" i' ~~ "
:'i S" I , , ,"-Cj~
,', .. , ,-.~ -
f, , , ~ ,:11 , , ~ .. ~ .. ~ .' ~ , .,-----------, . f 4 , --S.;;S
Q:'>'-'9-t (11 ~9'~I]) -----
1).1''''' 1'( ~ ~
.;." .i':"t~ ~ 5. ~6~
i-l,:;r.n 15.9:"~
]('"15~ 8.~~~
I.~ i~ ::,170 ----
~.:o.: I ~ 'io:U"Ji
tl) TheJe rahJeJ do no; nflectlhe C~y'S' P..efoM EltkrprUt nv f"".ur.!fJ1IOfl abo Jifkn frw-. G.{~f'.J!M;' /0 r~
inclvrioll cf p'incipd ~ ()11 lite (iliJJlDIfdutg &tbl
{l} U!'Kll>di:ed
(J) Projec!~
(./} I,..;:!udes debt urdu cruts-v/all OlJJ.I!.l!!dmg B,-"."ds r.mJ ol~r cbfJ!:-",J!, ,,,-.,
Source ClOY of Palo AIIO
-22·
[ssuaDce or Parity Bonds
1[1 addition to the 1990 Bonds, the 1992 Series A Bonds and the ]995 Series.\ Bonds lh<:
City may, by Supplemental Indenture, i~sue aT incur other loam, ad .... an<.:es or indebtedr:e-s:;
payable from Net Re\'enues on a parilV 'Jwith the Bond.s (the "Parity Bonds") iO provide fina!lcin~
for the Enh:rplise 1I1 such principal amount <l.'i shall be determined by the City. 1r,{': Cily ma~
issue or meW' any such Parity Bond'5 subject to the following s.pecitic condlrion~ 'ihien are
conditions precedent to the issuance and delivc!)' of such Parit) Bonds:
(a) The City shall ~ in <::tJmpliance \.\Ith all covermnts c;et forth in the
Indentwe.
(1;1) The Net Rel,'cnues. calculated on sound w.:-.ountlng prindples. and
eXl.:luding any balances in any fund ~1 the beginning of th~ peril'ld (,f computalio·n .• lSo
shown by the book:> of the City for the btes.t F iseal Year or any m,~re ret:ent 1\\ ei, i e ( i2i
month period se!ecied by the City eroding ntH more than sixty roO) days prior I,) ~hc
:ldoption of the S1.lppiemt'ntal Indenture pursua.'1t h) v.hieh i;i~lIumen1 such Paril)' Bun,1:.
ate Issued. a,,, shown by lh,c h,')oks oflhc City. plus, at Ih'! opti'Jn of the City, aliY 0, ail (;!
th:: items. h:rein.1fter in j.rus parr .. grarh de')ignated {i) and (ii). Sohall 3t ieJ.S\ equGi or.?
hundred twenty-five percent (125%-) of Maximum :\1\111.!3.1 D(bt S~l' irt;', \"ilh ~la.ximum
AnuU?J Debt Service cakulated on all BonJs to Ix Outstanding irrum:-J:,JI,ely '.;I.lb~.eqt:..ej":I
to Ihe issuance of such Parity Bonds. The items: .my Qf all ofv.hich may b-... J,Jd,~J to 'Su..::h
Net Revenues for ll-Je pwpo.)se ofis.sving or incurring P.aJit)' Bond::.;ve tnt t~)ll0\iing"
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(i) An allowance for Net Revenues from any additions 10 ,~r
improvements or ex:ten5ions of Ihe Enterprise to h~ mule ,~ith lhe pT\.xeed, of
'Euch Parity Bonds, and als.o for Net Reve-nues. from any su;;:h addilic'i1S.
improvements or extensions which ha\o'¢ been made from mo.'leys from allY 5..'1urce
but m any case which, during allOT My part of such FiscaJ Yea; or slKh tv.elv~
(12) month period, ""'ere not in service. all in an amount equal to ninety percent
(9()O/Q) of the esti:nl.f.:cd additional average annual Net Revenues to be derived
from su.::h additions. improvements and extensions for the first thirt)"-5ix (36)
month period in wrucn t:'olCh addition. improl,'ement or extension is respecth"el}" to
be in operatiCJD, all as sho\.\u in the written report of an Independent Consultanl
engage<! by the City;
(li} an alJowa.'1ce for earnings arising from any increase in the Charges
which has become effective priDr to the incurring of such additional inJebtedne~s
but whicb, during all or ally part of such Ftscal Year or such rv.."ehe (12) month
period. was not in effect, in an amount eq ua1 to tnt' amount by v..hich the 1'\ el
Revenues would have been increased if such increase in Clwges hatt been in
effect during the whole of su\'h Fiscal Year or such rn'el\'~ (12) month period, Ciil
as shown in the \~Tinell report of an lr,dependenl Comultanl cngag ... J by th~ Cil~
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(d The Supplemental Indenture providing for the issuan":-t' of s;w:h Pan'~
Bonds shaH pw\;de that'
(i) The pr<X'c:eds of ~uch Pant)' Bonds shall !;Ie appJi~d to Ihe
3.Cquisition, construction, improvement fmancing or retinan("jn~ of additional
facilities,. {mpro\'emems or eXlensions of exi&ting, facilities ","ithir. the Enterpns.e.
or otherv.;se for faciii[ies, improvements or propC'rty which the Cit)' detcnnines
:u-e of benefit io the Enterprise, Dr fol" the purpose of refJ.ltding any Bonds in
whole Dr in part. including all costs (inch •• ding COSIS of is).uing such Parity Bonds
and iochuting capita.liz.ed interest 011 such Parit), Bonds during all~ period v,'hien
the City deems necessary or ad .... isable) relatmg thereto;
(ii) Interest on su~h Parity Bonds. shal~ be payable Qjl an lnterest
Pa) ment Dare:
(iii) The principal of such Parity Honds. shrlll lx-ra~'abk oJn June in
:tl1) ~;'e3J in which ptincipal is payable; and
(iv) ~,1oney (or [l. letter of c/l;~dil or a Q'.l:ditied Sure;y Bo~d a!
3uuv';'rlzcd by the Indenture) shall bt deJ-x1siieJ in the Reser.'e Accc,unt tiom lh,~
prc"'tcds of !.he :<.aie of su:h Parit), B{md~ or (lrOr;;rv.is.e to inae331': the amount on
deposit in the Resery,e A.;.count to an amount equaJ lo the Reserve Requiremem.
taking into O'iccount the D<:bt Service on all Out'itanding Bond.'> (including 'Such
Pa.."if)' B0nds).
THE CITY AND THE ENTERPRISE:
The City of Palo Alto is located approximately 35 miles south of San Francisco and 15
mi1e~ northwest of S31! Jose. The City's 58,100 rcsiJents are part of the San FrarKis.\:o Bay Area
population of over five millioli. The City, v;{meh is adjacent to Stanford University, is a m~iOT
emplo)'IDent cen1.el' with approximately 75,000 jobs and a unique residerllial ~ommWlilY of about
25,000 housing units.
1be City \.\-"35 incorporated in 1894 and has operatf.'d as a charter city since 1909. The
City operates lmder the -councH·manager form of government .... i!.h nine eouncilmembers elected
at l.arg: for fow·year terrn~, The Mayor l!'.d Vice Mayo!' are selected from arnong the Council
annually. The ~ .. Ia)'or presides at:lll Council ml!ctings, The City M::mager is responsible for the
uperation of all municipal f..mctions except the offi-ces of City Attorney, eLty Clerk, and Cit)'
Auditor. These oflicials are appointed. b>' and repon directly to the City Council.
The Emerprise consists of the City'S electrk, gas. water. wastewater and storm dr...linag~
ulitil)' syst(;'ms -nle City's Utilities Depanment is. in charge of the operation of the electric, g<ls.
water and \\astewater coll"!!ction system and the City'S Public Works Departm~nt is: in -cha:ge of
the op;:ratlon of the siorm drainage and wastewater treatment system.
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~ ... t Ofn.. Cit}
1k !1SQ.) year J994-95 Hud~el authorizes u!e employmer:r of 975 City employees. a
generaJ fU11d budget of approxim3!cl)' S71 million, and &1 Enterprise budget of approximately
$133 mdlion.
Cit} Manager. June F!eming, Ms:, Fkming was aproimed Ci.)' Manager for the City of
Pato Aito in ~cmber 1992, Prior to this appointment. ~h, Flemilig was Palo Alto's A~sist41lt
C it:. ~{i!I'...ageT sioce I Q-gO
C:ty Attom~y -;\rlel Pit!T'e Calonnt: .. \.-Ir. Calonne was appointed City Attorney of the
Cit)· cfPaJo Alto in AU~"U5119'90. He was admitted to the California 8M in J983, and has 5el\'ed
<l.S CiD' Attorn'!) .)fR~I}(.'ho Palos Verdes. and AS51<"unt Cit)' Attorney for I.he Cities ofPaJmdJ.le.
W("S"'.la..l.e \'ill~,.an:! Sa."1 BuenJ'.enrura.
(~t) Ckd .. G\lriJ. Young, \;;~, Y('im~ ~as appointed 10 !..~t" pDsiliort of CH~' Clerk for
(r.t" (ll.1 ::"!' P31c, . .!.!w HI 1')8~, She' h.3..' ~en \'.ilh the City of Palo Alto since 1973
Cit) . .l.,u,Jd1 <,g • W:fkJ..iT' Vir.~ .. '" ~(! ";'~ib;;lfl ~3$. Jppointcd r.he Cit)' Auditor in May
i C:;'i~ H::-is. ,1 ;e~iw~rd ("PA !~1 lhe ~L3tc I~f CillifomiEl and ha..~ (I'o'f{ eighleen j'('ars of auditing
;:\ pe~er.,:(" in r.)~ .. 1 f·ri \ atl! ,en:l p~..;bl; I: ;';i1?t!n.: l~_'
fi-t." Finance Departmtn1 IS l~sronsihl~ for directing all of the City's fmancial op':rations
indudi.'1g .Jcc(',unting. bdge-tin~, ~~~Ilg-t:erm f1nanc.ial plannmg. real property and portiolio
m.magemenl and pwd13.sing.
Din"CtO!' of Fi.naoce ~ Ea-.il) Harriscm. Ms, Harrison has held this p";)sition since 1987
,"iti"", prior experienc(" as Chief of Accounting in Ilw. City of San Jose and Assist:l!lt Finance
Directo. in the Cit)' of Orang~.
AssistanI fi.~ DLro:tor -MeEssa Cavallo. Ms, Cavallo joined the City as Assistant
Fma.-xc Director "m 1993 with 8 ye<m of prior experience in finance and accounting
management.
Bud.get Ma."laget . Jim Stc-ele. Mr. Steele has bee., Yrith th!;": City of Palo Alto in fhe
Budge-t Di\ision for SL'<: years and was appo.::inted to 8udget Manager in 1991. Pri.or 10 joining
the City statT, he wort.ed as a financial analyst hI Stanford University.
ACC01.illting t\{anager . Carol T. Ft'rrell. \.'fs. Ferrell joined the Cit)' as Accounting
M~er in 1988. ?rior to jOlning the City. M~. Ferrell h~ld positions in not·for.protit
org.miz.J.lions. and ~.f'!S an 'lL.'dlt(o[ for the Sl.;jte of Iex,,",;; from 1980 through 1986,
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Senior A~COWltaJ1t· Tony Sand!">u ;\1r, SJ:r:dhu ha..~ r.een '.,ith the C11) of P.!h.' Alto in tho;
Accounting Division fer over fin: y"eMS. He Ii.Js more than 1C'fl ~cars (:":'1::.,.:rir:n~c in fmance for
both private and pub:i::: entitie'S.
Mauaglt'meDt OfTbt' l!rilili~ Dtplr!m~nt
1he L'lLlittes Ikp.m.mem is re:oronsihle for the 0pe1'31ion (>1' !\)ur Ulillt~ s~:>I~ms L~'::i $.e:Ye
!he City of Palo Alto. The City s.efvice-s. 27,O(XI cu.<;!(\J'!i('r .l('OI.i~':; Il'T I.he ~kt:tric. ,!!3.S. water
and v .. astewater c ollection sy~lems
Dire-ctor of Utilities -Ed~-ard Mriz.d:. Mr \1m.e'i;. .... 4..<; ~ppoin!:C'd to the pcsillon of
Director of L'lihties in February 194). Pr;or:o his apP(lTfit.~1. he was the AS$t:;:fanl DirectQr (If
Utilities. Engineering and has ~l \j Cil~ emplo~e-e ~~lXe 1%~. He [s a 1-e~ISltre,1 prok,s10na:
ellgineer in the SUie of Cd.iifc~m;:! a.nJ OJ. :;.en:l.~r r.:eml-er 01 Ihe' ill"'liflJl,," {If [!-:(in'.\!l and
Fie..:tronic [ngince~. ,\1r. \!rizel "<r'.N (l11 Lf\c i"t<liJ ll(Jirt'd,:'To.. I'd t.he \;n,~r:":,;J' Putll": C'J~
A"s(xlJtiIJrl ;~)r ~.;"\'eii y-:;;.rs J.",j \\J..$ lh rn .. ~~der:: in ll;~:'
,'\~"":;L·m\ Dire(i<..'r l,~t' l..'tilLIIC';, "\·..imml~'.r.'}I\e :-;:-;'.i'-;:~ 'R.if.j', Rl~,h~hL!n
\k R.l!c'-.:hWl hi."';' ~\".:Ttr:~'-Ih[e-t ~'c.'.fS. "~: ~!l!l!t:-:;-" ';\~~i'~ ~ ... .:: "'. il~'l i~( ';1:, ,or-I .. ~k> :\il.) Hh
rr:~f!'>r6ibili(i';:;, ir;cll,:ife !~e rr :"'!2'.t:<..'rr>:r:'. r.d' ~ ..ii', ,,: ~':'i CI~~' ""':!~I~ l1( \"l'[,l:1',-;r s~'n L,'C';, k'n':-i('ITil
fimm;;:ial Illr(''':i!Sl 3.nd fi'll·:m:l.:"ifl l ', n'~.'~n re3.Jin~. (;.J;j "(';'l,rcl'cr "'..'n I~'e" H<.' r,'cci\~J.J H.~ ir.
Husrl1es.s Adminii;!nti0n from ~,Ul JC1~c ~w:-: t nl, "fO.!I) \1r H.3~J'" .. :h~,l;j \\.is. '!rP-,,)ll1kJ I,' ,his.
p.JSitlOil in I qqO.
rnent)'-Ihree years of expent'r,ce in the de-::ln.;; utlilty ind!J.s'0 .lnd i-. J r~~:qer~d pr'~)fe';"jnr1,1.l
de:::trical engineer in ihe StaleS nfWashlngtc.n JJ:,j C:!~fomjJ Ht' i~ !>r't'kll lwemy-one ~eiir", in
pub!i" utilities \~ith the last 15 in t"!lEi.r,ee-rin~ and operation ... mJ.."U!'ement H~ rre\'iousl~'
worked for the Cil), of Palo Alto as tht-E!ectric lngineermg manage-r fnlm June 1 r;&5 1<1
September 19911 ~1r. Stu'!' .... "'3.S appol,."ued.o his ~nt jX)silj,,'n In JuJ~' 1994
r-.!anagI;:T. Resource Planning -Tom Habsshi \1r. Habaishi has managc:J the' Res.ource
Plan.-ung Division since Dec.emtxr 1992. Mr. Ha..bashl has over fDl.4"1~n ) cars. of utility inJliStry
experience in utility re5()Ul'Ce pl:mning and englneering M.t. Ha~hl has a B.S. in EI~lricaJ
Engineerir.g from Ain Shacr.s Uru\"tTSit),. Cairo, Et;)Pl and an M.RA. from rhe College of ~otr~
Dame. Belmont, California. He is a regish:red profe:<SJooal elf"Ctri..:a\ engi.neer in lht' Stal~ of
California..
Ma~~m~llt Of The Public Works Ikpanmel1t
The rubEc Works. Depa.'1mem manag<!s the S:orm Drainag< and Surta..ce Water Utility
and the Regional Water Quat;!.\' Control Planl which al>o ~er .. e-s the ~ilies of \!ounuirl View and
Los ,\!t03. \h~ To' .... n of los All(,.' Hills, Sr.a!lf(ITd Uroi\'~r!>li~ lrld th~· F.J,.:;l P31J1 Alt('l SarJil.1r:
District
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Director of Public WiJrks . Glenn ~oberts. ,\fr Roocrts h.as been the Direelm (1f Pu'blic
Works since April of 1993. Prior to that time. he \\"2.5 employed in the CII)" or S.3.J1 Jo~e L.~r
rv..·ellty-four )'ean. Mr. Roberts is a registered. civil engineer in the State of California and h.ls J
Bachelor's Degre.e in cl'\lt\ eng~neenng from the Uni\'eTS1ty ('If Sa.nt3 C13.I-:l and"d }.ta·,t<:.r'·:, Degrtt
from California State University, San Jose.
Assistant Director of Public Works· George Bagdon. Mr. Bagd~1n has 0e-en Assist.ml
Public Works: Director for t.he City of Palo Alto since Febr.Jar) 1990. Prior lo c.Jming l0 Pal,)
Alto he had six years of engineering experience for the Cit)· of Burlin~.irn! and si\ ye.lr;:. f::>f the
City of Milwaukee. Wisconsin. Mr. Bagdon is a registered protessionaJ engmeer in the ~tJ.le of
California.
Senior Engineer· Joe Teresi. Mr. Teresi has managed the Cit~·~ Shmn l)ra.j~e a..rJ
Surface Water U!ility -since S~ptenJber 1990. He h35 worked for tht:: City of P.:t;o ,.1.1.,) Puhl:.::
Works Departmel1! in increasinglY re;~")n5ib\e ~sition$ ~in·:e 19R~ ;"'ir Tt"r~",i is. J rct":,qc'T;:>,j
professionaJ er.gineer in California
The Enterprise is sial1t:d Witll 27-~ enlpt,)}e-t'~, {fllil rim,: ,;' .. p.,~\.;._], ... nls.! \',b·t -.;r;; tl~·::(,:i.1>
employees cfthe City of Palo Alto for pUfp0seS. of pensl{\i1 ul"1]lptiQros anJ I.',Q.JI rd.~b'i"'''' .\.!i
pertnanent employees. are <;:'Q\'ei'ed l.lI1d:!'f t!:i'~ Publtc Em?\0~ ee50 R':i.lrcrr-.o:nt System (PF RS! ,)1" tho'
Stat~ of California. Pension costs are I~'o fur.ded by the City, PERS is a st::!e·\\ide "}:):t::111
operated pursuant to TitJ¢ 2, Division 5, Part -' \)f the Oo.,.('!mmert CoJe ihe B,1J.,J or
AdminiSIJ11.tion ofPERS administers the PERS Fu.'ld (the "Fund~) ar.d. s.i:-. (,\..hC-f funds Tht Fw:J
re-presents 998,000 members and t11elr families (induding re!irc't's) ~Iilti>\~j.je .'11 Ju.n.e ~{i. 1S''1..f
The non-management empJo)·cxs ale ~nted in co!lecti .... ¢ barg.ainin.g. by the Seryi,,-<
Employees International Unit, Local 715s., (Af'L-CIO). The ser;:ice employees memorandum 0!
understanding provides for Mnual percentage adjustments in compcfl5ali()n. The lates.t ~f\·;·..:e
employees' adjustment. eff«tive May I, 199~ was i. 75%.
Besides placing importance on staffing resources. the Cit)' also rt'Cogni:z.ts the sua'\.egic
value of its te{:hoologlcal resources. The appropriate planning and dqllo}men:t ofteehnological
solutions ""n~ it is COSot effective helps provide: a competitive edge to the Utilities
Enterpri5t" M.Dag~meDf Policy
Treated as enterprise funds, the Electric, Gas, Water. Wastewater and Storm Drainage and
Surface Water Utilities are fmanced and operated in a manner compa.."ao!e t~) pri\·:l.t:e business
enterprises. The City utilizes a Strategic Planning pr..x:t"ss in concert \\ith its annual budgl'l to
identif>' a.'ld record progress. in meecin8 benr.:hrnark goah arid objectives
An enterprise funds. are accl)uo!ed for using the aCl:rual basis 01 accoLlotin.g. Rc:yenues.
rue recogm7.cd when earned, and expenses .are fe(.·ognized when Incurred. V.illl)" re\·enue~ an:
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u')('d to pay operating costs, bond debt s:ervi~e, capital expenditures, and reserve accumulations:
In ac-.:ordance ...... ith Cit)' policy. the cost of providing utility .o.er..-iet's to the general public
continue to be funded predominately througb u..<;er charges. Policies for casn reserves and
Utilities Transfers to G~neral FWld are t'sublished by City Coundl. Transfers to the g~:ncral
fund are based on the approved ra!e of n:tum for comparable public uti] itie~ and \\cre established
al 10.13% (,Gas and Electric} and 8.02~,~ (Water) for the 1993~94 tlseal year. The \\','astewater
and Storm Drainage Utilities are operated to break-even and don't pw\'ide ;'; transfer to (Jeneral
Fund.
The Utilities and Pl.lblic WDrkS DepartI'!!.:-nts art' expected to continue meeting all of their
tin:mciaJ obligations. while dwging competitive retall rates to their cus!Omers. Careful
budgeting and sound financial planning have been and will C('!ntinlle to be important fac10rs in
maintaining competitive rates. Tht Utilities: Departmen1 recognizes th~ imp0rtrul'-:c of
mhjim~!.ing wholesale com.rn1)dity costs w'h.:ich ''i> thl!' \arge'i>t e~pend.~mre ca\cgciy. M\.tch time
and effort are spem in dfaJing .... ·ith the Vai10l\S COiUlllOOilY suppliers. reguJa.!OT), Bgco.:-it"s and
,,-omrnissions !el help en"ur~ te3s.Jnahk a.l1d e':-,)f:omical ',>,;hdex.;.le c{1rnmoJil), COS!:;
Rall'~ llnd BHliug
The Cil .... , Coun.:iI ha:; fuli di5~Teti!.)n hJ s~t ulitit) rates ro~eJ.c:tJ utilil), ~ys,em rhl." City'.:;
\8.temak.ing objectives a.re. "to. price utilities. at the lowest po~~iblc ratt:"s., comi"tent w~th '!o(lund
financi~l plannin~, while promoting efficient reSOUIce utilization and mstomer satisfz.ction," To
achieve an appwpriare baJanc{" IxtVlo,t.'t"n these objectives, the City foreca.sl$ all financial
obligations and funding souro::es O'o'f[ a ten year planning horizon. [n Ihis. manner, timely nHc
adjustme-nts for all utilities are .;:o..lrdinalcd and alternated 10 ~s.Ufe adequa(e funding, minimil'~
conS'.llJler impat:ts, and to promote raft; stability,
In 1993, the City Coundl established new utility r("~rve poli.:ies and guideline levels.
On all annUal basis. operating reserves: are funded, ... \-ithdraVl'11. Oi unchanged de~ndjng on the
parti~ular circumstances of that utili!y fund. Compared to industry benchmarks. t.he City's
utilities have low debt and interest ex.pense. Thls is due to the City's prefC'rence since me 196{I's
to fLnance major capital improvements on a "pay as >'ou go" basis. nus conservative approach to
ftnance additions !hrough rates helps keep rates low, since interest costs asso<;:iated ... 'lith long.
tenn ti nar.<:ing. are avoided.
The City collects utility charges by means of a ~ingte monthly bill to each clJslOmer
lis-ting d'.arges for each service PIO.,.idt:d, In January 1993, the City Council approved a three
year project to Lmplement a new utilities CLL5tomer Information System (CIS) utilizing state of
the ::m technolOgy, The CIS will, in addition to biiling utility customers, pro .... ide five year
historical consumption data and on·line customer information to stall Over the past five years..
uncollectible a.ccounts tor all utilities have averaged approximately 0.104% of the wnounl bi: led,
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S&Y DOC ('SF942QOOOO21 CR(JLJATED 12 OS 9..1
l.frastnac11l~ lmprttvtmtnt Program
In 1m the City had O\ter SI~O million invested in utility property, plant Ilnd equipment
n(1 of depredation. The City COW1cil expresso!d it!> concern for the infrastrUcture and staff
prepared a Utilities Infrastructure Maintenance/Rcplal;;ement Needs Assessment Report. 11lis
repon reo:n1"' .. "nended the accelerated replacement of spedfic deteriorating infrastructure OIl
appropriate life c):clcs, llle report also re-.:orrunended increases in specitic operations &
maintenance programs. The leng term infrastruct"Wl:' program was planJ'led 'A1th appropriate
staffing. eqU:pmenl and capital fimding for impkrr.enta!Lon over a six year-period. Coun('ii
.approved the plan to begin <Mth tho: FYl990·9l budget year, The utility infrastructure needs
program is llO'~' fully lmplc:n<11ted.. Funding wa<;; pn.,,'ided trliough mirumaJ ra!e increases and
.... iU continue on a pa),·ac;·you·go basis.
Major EJlt,r,rprise Cu~Uomen
rho: ftdi,l' ..... illg !able liStS Pa~o Alto's ten largtst C!.lstom::rs (lfthe Entel'pri~e (iili:orporating
aH fi\o! ot Ll"1e u.~Llalying utiblies) for fbc-al.\c.u-1993·94
1,.4.81£.4
Top Ten Clol 11'1 rna'5 d ih-e E~lerprUt
( 19'93·9-4)
s..~ '1lt,.x,''R!'~~:
l"kw!~.f'~U!~
\' ","'ian .'\ f.S« il'!O:s
StI."ford Medical Ct'l1lc.
LOR.."l Corpont1<)!j
V~ "dministn.ti,Q, .... H~tta.l
CiryFlI(:iUt!e:i
WIIXins-Johnsvl1 Company
["'.xJ.hecd
XeroJ:,C~~
ToW
SC1>'CC' CU)'off',JjoAfIO
7,85,1
7,ii1
$,137
4.2~6
J.~O]
2,tS2
2_5i)<;
1,818
1,646
.-loW.
$39,0[8
·i.ofTota\
~~..:!~_lJn (~
5.7%
),6
3. ?
3.1
2,6
2,\
1.0
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n,.e. dun below iaentifi.:s Ihe Co~l~lion deiinu.lJ~m:~ hl::.tvl') of the Enlerpri~, Over {he
past:. )'ea."'S the delinquen.;y 3n10U.'l! has .:Jxeragc·d 0, I 04%
THf E'TER'PRlSE
1 P Yur Trrod Of Cocolkctibk Bilb 18)' !Ii Alllont And
f'ert"e11t1!l" OfTotJal ~Ui:l.
Penton I UItCOIIftIM
Tf.12]',0C(l .i3.)70
:52:.4 i!.ooo .O~.
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1;'0
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THE ELECTRIC liTIUTI'
Tnc: Electri:c UtiHry ~'8S founded in 1900 '",ben the: ele)' used revenue bonds to buy a
steam generator to begin producing its own electric i:y. Diesel gmerators were soon added. In
1923, the City cntertd A contract for supplemental JXl",,:er \\it~ Pacifk Gas and Electric (PG&E)
wmpany to mee1: its gm\l,"i..~ demand ?G&E continued to supply wholc~e po .... er until 1964-
when rhe Ciry entered a 40 year v.hclesaJe (WltrClCt \.\ith the federnJ government To fLOane!;!"
major system Ck--pans.lOns. a l'lwnber of re\-'enlJ( bonds were issued in the cruJy detades and into
the 1950's. Tra.1itionaJl~. Palo Alto has offered \:T). competitive eie(tric rates as well as r.jgh
service levels.
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,
i
'1 ,
--.
In 1964. the City execuled a "",holesaJe. aJl~requiremt:"m.5 c(ontT3('t -;..I,ith \'\::·Sl~rr. Area
Power Administration {WAPA}, a federaJ agen~y responsible t~")r m..'Vke-lir.g lht e;e->:uic: pc""".er of
the Central Valley Hydn)(:!e<:tric Proj~l This contract pro-.ided Pa\c. Altt1 ~f,h up !{) )'1"
Mega"'3tts (MW) ofc.'lpac-ity. more than f',\.ice Pak: Aho's necc 31lhc tim.e.
In 1%8, Pab Alwjoi~ the-Northern Caliti:.)mia P0~er ,\gen..:-:o' 1,~CPAl. i!.j0inl a<:11\m
agency formed to constnJct gtneratil'-@. and translnission facilitie'5 and perform PO'" er Ir.!...~tion~
Q[) behalf of its mmlbers, Since 1%8. ~,.'CPA has construc\cl the::'-S MW cOIlll-us1t0n t'.JIbi:-.es.
t'.\o'O llO MW jC'OtIm-rra.al projects. and a 243 MW hydroelectric pn,:·,je-ct: a ~O ~iW S'leam-in}C'C!ed
combustion turbine is nearing compl('tjon. fn !.dditioll. Lie ~(!rx:~' )-0...3.5 C.(lr!truled fl'~ ~"erJI
long-and short·tenn contracts ''l.ith third parties In 19S], Pa!L) ,\!w joined the T'J11Smi,~sjon
Agen-::y cfNorthem California (T ANC). a,ldlnl J:ctiu:l aft'i1cy fNTned h. ,:(·r,qTlJc l ,~~ C!],!,.trn:.:t·
~gon Transt!:;SSlon Pro,ie-.;! (COTP). Cl1JTcnli:o. l:"\>:r:, CO"~"~ t-+:~::.\i c,: ii;, F.,e:-ri'r:'<r~~. 1$
im'estigating til<: feasibili,y of ..:,:n~'n:.:rI111.! ;;.:!di!lor1.:d tlJ.i1-"mi',~i;';1 r~.'il;lie" 1(1 P'-'" J'~C ~ .. ;,.:~:)'S l\'
the Southv,'est.
2_
Th~ majority of Palo Ahots cl«"rri('I~" rre-ds.3.f-e PHI\':d~J h: W,\P.'\ W,U)..!o, I:>
the fedC'ra~ ~eIlc)' t]'l.al mart:ets ;:'"y",-er frvm rhe Cef1i1'J.: \'.J1!e~' Prllje,:; !CVP) dS
well as .... aricU"s r.onhwc-st pW"ch:.'l~) and e, .. -h.aIlge" ~ ilh PG&[ The pn's,tnl
contract allocates J 75 ~,,\\, 10 Palo :\:to) f)"om 19M Ie; ~jXq Becau~ \\",\p,-\ ~"
eXj:'ect(d to continue to be a rtlati, ely 1Qw-<,:":lst rC"~"YJ1\e. rnain'..airun~ th~ C!l,\ '5
aJkx:atiQn 'lS considaed a top priorit) i1 is presLltT'l.c-,j tha! Palo Alto .... iil retain:he
majority of its allocation (95 to 100 p.erceJll) (oHo'~'ir'-t': the ye.ar ~()(4 A1i~
indications to the contrar), ..... iJl be-.:ome c"l"idC'f1.l du...,ng the reu..-...'aj prc,(e~s (If th~
WAPA contract,. which is already und~~>
The City is a 6.158 percent pankipanl in the NCPA GeothermaJ Proiect.
consisting of two 110 M\\' geodtermal stealTl4grnerating pianb-\)pc:ra[in~ in the
Geysers arta of California. Palo Alto h.is sole: all of it;) :share ,,1' tht' Pf(ljC":l to the
Turlock Irrigahorl d~$trict (TID) on 3 ti'.kC'-.()!.pay basis for the iifc oj the plant
since the City's need for base load generation at the tirne lh:: sale was made. w~s
limited.
In February 1982, l'f)e Federal Energ)" Regu!alory Commi!>sion iF ERe) g,r?Jilc,j
the Calaveras Project license kl the Cal3\'o!Tas Count)' Water Districi \CCWDi
-) 1-
I
NCPA fmanced and constructed the projeci wlder lhal license. PaJa AllD has a
2.2,92 JX~cenl participation level ill the 243 i\·fW Cala',eras Project. At the 243
MW rating.. the project provides Palo Alto \.1,ith 56 M\V. Const.tuction begall in
the spring of 1985 and commercial operations began in Fcbru,ar;..' 199D.
Based 0n an evaluation of the usability of the Calaveras pmje-ct staff r~
succeeded in 1.a~'ing off some of the-project Olltput (6,5~ yerccnl) 10 the City of
Roseville through the year 2004, l.eaving PaJo Alto .... ith a balan·;e of 40 ,'fW.
The portion laid off to RoscvlllC' "'ill return to the Cit)' in 2005. at which time it
ma), ei1herbe economically usable in PaJo Aho C\f proposed to be la:d off ~a.m
4. Pocill< Cas .ad Elmri< Off·Poal< Pur<h ...
In 1990. NCPA and PG&E :settled a rnajor dispul,e cen!t'ring OT! (3 compi.iinl
regarding transmission ~cce:;~ \'I.·hich NCPA had til~d wi[h FFRC. Jre :e.;:u.itin~
senlement pTm'ided NCTA with SO ~\1\V of off~pe:J.: energy fr~~m t'(j&:E h
Ja.nuary of 1991. the Cit)' of P.;l:]o Alto lail.! ufT 2.5 :'\1\1.' of iu, emilkrn-:i11 ill the
PG& E resvurce io the City of Rosc\ille. f11is kOi'.-es PaLl AIIO .... llh 1 .. ;'0 \jWof
PG&E off.peak efl~18),.
5. Wa.shingtoD Water Power CODtMlCt
NCPA has CI.)ntr~cteJ with Washington W;Jter Power (\"iWP) and the R,::nnc\ t! I,:
PO\Ir, .. er Admirust..'"ation (RPA) to pUI'C"hase 50 :\·1\1/ of capacity The .:ontra.:t
became efiective in 1993. Palo AI~o has an II ,J MW er.tillemel"',~ ~n !.his te."-\.)I.\fC":
Early in 1991. Palo Alt.Q agreed 10 ass:ign, al cos!. 5 MW of thi'S rl'::;{1U[~e Ili the
eil), of ROSi:ville. llis portion ""il1 be ret.J.med to Palo Alto ir, 2005.
6. Soam, City Light E.chuZ' Agl'Hm,nl
In 1992. NC.? A entered into a 2.0.year agreement .... :i.th Seattle Clly Li~bl to
pro\'ld.e fOI seasood power ex:change. The agr'!Cment entitJes Palo Alto to 11
MW during the swnmer and ob!igates it to return 9 MW dwi.ng lhe \\lfller.
7. BoIIIDcviUe Powe'r Admiaislntion
The C~ty is: in the prtX:ess of fin<JJi21ng ail agrecmenl \\ith BeJllne'.'ilk Power
Administration {BPA) to purcWse 10 MW during the summer sciiS{ln. PQwer
deliveries fwm SPA are expected to commence in May 1995 anJ continue 10
October, 2004.
8. PG&E Partial RequiremeDt
If the City is unable to meet its load requirem~ntlhl"ough its existing resources 0,
e(:onomical pu.rcha.ses from third parties, then partial requirements pOwer m.a~ hi:
·32·
•
pu.n:tw.ed from PG&E through pro"isior.s containt"d in [he NCPN'PG&E
JntercoMection Agreement. Palo Alto relifd on a very small amount of partial
requirenwnl power in several summer mor.ths of ]f~83. Betv.·een 1984 and 1990,
when the Calaveras Project came on line, Palo Alto made several cOSh:;!!e<:uve
short-term purcna'Se5 from suppliC'rs other than PO&E to supp1emcni it:) WAPA
resource, thus avoidi ng the use of !hi s morc costly resource,
9. C.Jiforni.-Orrgon Tl"lIusmis$ioQ Proj«t
The Caiifomia-Oregon Transmission Projet"! (COTP) is a transmission line that
e;o;teOOs from !he Olinda substation in Southern Or-egon Ie the TesJa 5:ubstation in
Central Calitcfmia. The COTP increases the ttanst"CT capacity from the Paciflc
North"""e5t by 1600 MW, COTP is O'l,/\-ned by th: Transmission Agency of
t\Drthem Califo:"'TIia (TANC). of which Palo Alto is a membt.>r. TIle COTP
provides transmission J.ccess to t.he Norti'l',..,e!». makint; pc·ssible the purchase of
relati .. ely ine:o:.pensivc northwc~t puw;;r 2nd allowing members 10 enter into
agreements for seasonal ex(hanges arld other eccriOmically beneflciaJ
trans.actions, Palo Aho's present Sh2'IC of the pn)joect is aprroximate-ly 50 MI,V.
In (41y 1991. Pate AllO agrel::d to assign 7,68 M\V of its entltiement in 'hi:>
p.mjec\ to the City of Roseville in c-onjur:ction with a cuncurrent la>'off ,)f 5 ;\.f\V
of Palo Alto's share of tile Washington Watcr PO\ver contI act. Thi~ ponion will
be returned to PaJo Alto in 2005.
M, "gtem en t Disrw.sjon of QPfn.t:klD~
From FY 1989-90 through FY1993 +94, tbe sales revenues increased <lot '" -.'ompoUIld annual
rate of 2%. Operating revenues have steadily m<:reased \\'ith each fiscal year due to gro\\1h in
t!'lN:rgY consumption. Between FYI989-90 to FYl993+94, purchased power ccsts decreased at a
a.rmual !;ompounded rate of 1.8 percent mainJy due to the avaHability of !;heaper fAJwer from the
CalaverdS Hydroelectri!; Project.
Sales revenue over the next five·year pt'riod is forecasted to increase by II percent. This
revenue forecast is based on a compounded annual gro~th rate of 1.16 pe1!;enl in energy saks
(MW H) over this period.
The Electric Utility's purcbased power expense is estimated to incrca.s~ by 34 percent
o\'ert~lJ.e the-year projection period. In terms ofab£O}ute dollars, wholesale commodity costs are
expected to increase by $10,46().OOO and will represent appioximately 57 cents oul of eacb sales
revenue-dollar in FY1998-99. This ~imate is based on the continued availability of federal
power from WAPA as presently pro\'ided under the existing contract.
B;Hing nues to Palo Alto's residential ilIld n01Hesidential accowll::;. are one of the 10'\'\.'':Sl
in California. Table 8 herein shows a comparison of Palo Alto's e]e"\;tflc rates with those of
PG&E and another neighboring murucipai utility. [n addition. the City implemented a
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t
r
$36.700.000 refund iI'l FYI993·~ to electric cu~tomm, resulling hom Ihe savings in power
costs and other favorab!e expenditurt \<ulaI'!l;e'S. The Gt)' maintains a Rate Subih7atic~ Rcst"'c
,RSR) in c.arch rnterprise fund which ser.'es as an operating res.erH, The balance oftbis iescrn
in the Electric Utility at the end of FYI99j-94 !$. $28,668.000. The Electric Utility also
rr..aInt3ins a s.epat3!e ~e fwld for the Calaveras Hydr0electric ProjC'(:1 whi"h is utilized ro
paniall~· O~I the debt seTvice pa~menL" tor lhe prQje-c!. The curren! balanc~ in this reserve is.
StS,694.V(XI. a .. ,d is expected !O be complete:)' depleted hy F'(1999·2000; however, paYJnent for
rht proja:t dt:'~! Vlilt to cor.tir:ue-Wltil 2024, from 2000 to 2024. the projC\:'t deb: SfTI'ice is
prc-jected;o be paid from operating R'VenUl·S.
EIP!i:tnc :.ntlities th,ruug.oout C.llifomia and the Mi.ian are facing increased cQmpt!titicn
.:lr.d ,mgo,ng deregulation. fn MJ.:, i99", the California PlIb!io::: Utiliue's Commis.sior. (CPUC)
r:>eg.ll • .l.'l im e<;lig31Il"1n (,'\~!~'ri!1g tile res:tr,"':luril1~ of Califomia''S ele:.:tno:-services, industry and
!r;:r1e:·fl<:r.:;,r:~ )e<f:·,.;m:1r1.c,-; r..a~) r3'1I.'+ma~il1g f.), Ca1ifomja'~ irWtS'1)r4),'f1eJ u\llii.ic-s E\'en
tl-.'.lJ.t:h th,: cPt,C dl:'~:.' Il,,-" h:!~'c .IUfls.d:cLiun 0\ r.f the CilY's wiiilic::. l,)jXra~ion", the City's
l·!jI1,1_:'~" D·:r,_ir'Jr,e.;',l "wff )-,aH h--!er~ pmi(lp<l,'lllg in the CPtrC pro'~.;·cding';) b-!call~ utili\ies
'.h~\)"!i=h1~Jl t't~~ \\;;":tem t 'nitcJ St<l~(S ~il\ 'tot afTc\:'ted by tIu: CN}Cs. iH'li(,ms
h::-dups lhe m'.1Si signdion1 i~sl.l~ l:-eine: ..:onsider~u by the (,Pl'e is "Dire.;1 Access"
iRc~,i.d \1'heeiingi, Direcl Ac,;e.;;~ \,ould ~!iO·,l' reu;i customels hJ purchase t:I"\:trir JX)wer from
.\.'l~' s'=f!plier, Ahh(J~ the ('PUC cannot force munic:pa! utilities to allow DirC'Ct Acce%. it
DU'{'Cl '\CCe5S is aJlo\.l!o-ed for California's ~nvestC'r--o\l!ned utilities cLLStomers. munkipal utilitie~
rr..1~' fl\:C' pres.scre from CLJ5tomers. .i!ld legislators requiring Direct A~cess HO\l;'C'\'er to the
t':'(:':"n( the Ci\~"s L~ldjties .:u.",wmers purcha.se pc!'r\er from other sources, the Cit)· "ill continue to
prQ\ Ide aJ1J rea-: H ;;:olUpen.sation for the distribiJ.tlon functlon from such ":115.lC~m~'rs.
\.\'lli!e tbe mtrod.:J(.tion of retail \1r'becling \l!.itl increase (:QmpeIition, the City's. Elec,tri~
\.'\itit;. is in a ~trnng pcsitio!': to rttain 4\.<hl attra..:t customers. SiI\Ce the eii)' }us not im'ested
heavily in genaa.tlOn f&:ilities, the debt service and tix;ed costs are re!atively low. ."Iore
impvrtantly the City's billing flUeS are cDmpetitivt; ""'1th surrounding utilities' rates, chiefly due 10
its. mix of low~ost :>uppI)' resources. The bulk of the City's poWi!'r has traditionally been
p'.Jl'Chascd under a kmg-t..-rm contract ",-ith V.'APA that expin:s at the end of 2004. WAPA
"':urTe!'!tl)' is collSidering granting an is year e-,xlension t"Or 951}o..98% of its resource:) available in
1005, If the extension is granted, the elry sholtld be able to rely on the WAPA 8eneratiol1 and
tr3I1s.rnis~ion resources through 2023 A key feature of 'he \VAPA, resource is that the City is
ollly subiect to a 35%. minimum take·of+p.1)' amount on its 175 M\V of contracted power.
Funner, th;: ell), has the tle:(ibiEty to adjust its take from WAPA on a monthly basis. This
enables UK: \.. 'ity to respond rapidly to changing p0\'I-'er market conditions and customer loolds.
lncrea.sed competition is not limited t{1 11l<.' rctail (demanrl)side of the electric mility
busi'les..~ On the: ;'.nole-sale (~uppl)') sid\;', impro ..... ',1 acc(.':ss to :ralls-mission brought about by thl.'
~"';ationai Ene!).!y p()\~cy ACi of 1992 makt:s i'l easier for the Cit), '1.0 nb'ta1n lo-w cost po\\er
>upplles to suppkmenl its purchases from WAPA ,)n both a long"tei'm and a shorHerm basis.
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L
" i
"I' ,
Ptm·g+SidC'-M ••• ecmntJ'-.OlCBIIU
The Electric Utilit), desip\s and impl.emen!s a \ ,!.rl(,I." of programs and services If' il"
~sidential. commercia!, industrial .a.!"..d inS".ihlti0nal ma:-ket S0'tors to the mutull t.enclll of the
customer 3J'1'i the: Eiectric L:lility
COflSen'ation and othc-r I,plions are identitj.:-j thn:mgh the use of in!egrat:td resource
pl.mn.ing and pwsued by t.'lc' EleclTi.-: CUiit)" to redoce TC'Wu'f',:,;(' supply pun:r..a..s.:-s: In J, CO.5-(·
etfecti\'e awmer, In the p.iSt these measures MYC' includo1 them:a~ encrg:~' storage-programs to
f'ttiuce C'iectri~ peak. demands, and residcntial.lcomm~fdai refngerali()l1 f-=pla.:cmcr.1 program!' [0
redocC' ovt"!':JlJ t'neTgy cor.swnpti on.
~ ma.. .. ;;;et ~k1r programs. :5LJP~rt. \Jtl!!('y ';;USICiT.o:'f ~t..'!.!;of!:shirs b~ prm id:ng
tf.'i:hnirsl tnd-Ll.Se inf!:lrTnalion. :ilCqu.irifl,!; In(~lrrnJ.tl\'n on Cf."l{'m~r n,:-eo..s. .. .nj J.ttill!.;;ks. <lIlJ
6eyd,-'piI1g prog::ra.!m ...... hi,.:.h reJu.::~ C115h'IT'.er ~;I~~ "; ~j,j \ 31L> .. • 11.1 '~t' b3ie:-u:iilt: :>'-;r\ i.;-:~. ('t'in,!,'
pw.,-ided io t1-:e ,u.s.h"'mc~ n-:-s.::: i.:.:.I:.;c.t' 3'J.iil ~1'l,_'e'; ":~lr,~\l!I;:tt t;"f1£lnc:crirL~ SlJrrort ;ilia
a..,.,ig-,¢,j l'Cri~>ent.:!;ti\e:s 18 m.ljc,r \.-("P":".l.t~ ,,".1<'''';~'''T"'.
Thi! FI~lric Uliiity Df,partm.:-r,,\ l'NI·lJ4 C.lp;wJ lmrn ... .,,:mt:111 Pro,~ram Ref-'<Jrts
~dentijied majr,r cap;!al p.'1)jo.::ts for e-1-t"Ctri.: S)SHm imrr~~'l!m!:nl~ totaling S26.7Y~.O'')o for tJ:e
past four~year period. T'he !argt:'St cate£or) 'Jf irn'j}r<,:; .. ements to the s~: sicrn ...... ei~ infrastru<:ture
distribution s)-'stem f'rt",ject.s. totaling aprro\im4.tel~ SIO ~ miUion UnJeigf('IlInd projt"Ct$ totaling
S6.3 million ('cmprise the se\:Qrhl larges1 c.'\t:gol")' of Elcdri .. -ClP projects. For the r.ot ft\'(. year
period (lQg5·19V'l) the rna.jOT capital impro,'emen! P,oJ~ts con{~mji: with no 51gnif:~anl ch:mge
ill direction. n~~ .oUll propos.cd buJget IS S:iD.NO,{):}') The largesl gro'.lp ot proje-cts is
infra..<;.trw.;:tun:-di~"tributjon system I..-npro' .. ements t-udgC'tN ~: 514 . .562.000. Underground
con\ ersioos a.~ b;.Kigeted <u S 12,740,000.
HU.hu:iWfProicdcd Orcratign.
The follo\\IDg tabJe sho .... "5 a hi$t.OricaJ and fi\'e~)'ear p,oj~ted re<:ord of electric utility
operations by D:le£3wart-bour (Mv..r"H) S(lJd. The rates of dWLgc show that load gro\.\th has
remained relath'el)' fla1 In the ~ 5 :rear period and expected ~ro""th is estimated [0 be small
sinc.e the Cit)' is nearing build .. m .... t of it .. SCT\.1Ce t.:nit-ory. The c:'I.pe-;tcd b'TO\\th is estim'i!ed to be
d:i,,·en by in';:f1!:£Sing e-(;.:JIIomi;:: acli..-iry L··d ~()mi; in.:rea.se in ~ou.s.lng cenAy.
·35·
Fisal
,"'eu
1985
"M>
199"7
198$
!989
1m
1991
]99!
I~~
1m
1995
19':i-6
I~":=l )
1998
1m
Sow,;e-Cit}' 0/ PaIr; Alio
Y"'Rl.f ~
CITY Of PALO ALTO· ELECTR1C l'T1Lny
TEN·YE.4.R (191$-9") HISTORICAl-SALES
E~~rt:},
Sod d .,
"
(I'tWH) Cb"'Cr PtJlk Onlud :\rv.'
%5,733 ! &c J
912,S67 0.1 IS\,;,
987,000 1." 138.l
I ,0 11.~17 2J 17S4
! .O2~.3!17 U J86 2
1 ,N'.90~ I., 1'H,{i
1.0J6.HI r 1.0) ! 8(j 0
U:.~J,~ 1.(. 19.\ ~
J.04UH (I, 1,1 ~ 'i:' .;-
l,C·~g.,~N [\, \';,,) -,
1,05 :I,IYIoi) D~ i'~:, ,'I
1.'<59 ,('~){l ],l i '1_\ \'
!,;)84,(1(1<) , 1 I ~ ') ~.
[.I)'98J)('O U 193')
1,I01,().)(l fl,!; pr1.:)
'The City's top ten Electric Utilit)' customers (or F'I'I'19."·'/4 ~fI: idcrl:iflN helm .... Iht's(
users coi:ect;vdy represent 3S,7f1./o of the wuJ n:v{"nues. of ule Ek'(;:t';c L'lilily and ':0,7:; l or lh~
Gross Revenut'S of the Enterprise,
Sovel? Ci!'}'ojPaloAllo
(J) Li-'led ,rl alp})fl.beru:al ordu
TABt! (j
CITY OF PALO ALTO· [LLCTRJC t.'TILIT\'
TOP TEN CUSl'OMERS 09";)3·94, (I)
City FKiia1<1
HewlffJ:·Pistkatd
loc\.hed
tORAL
StIUlford MNI(al Crr.
S)-TIle):;IRod'::e Co.-p..')rat:"',l
Veteraru. Adil1iIlisO'ation H~p~l.3r
Va.-w. Auo.:.iatts
Wark!r1~J~nSo.)fl
Xerm. COI}Xlr3tLcn
·J6·
•
\
. ,
1r
!
The-following tables present energy sa.les by class, number of electric customers by class for
the years FY1989-90 through FY 1993-94 and projected sal., of electrical energy by class.
TABLf. '?
CITY Of PALO ALTO~ ELlCTRIC UTILITY
ENERGY SALEs., ELECTRIC CUSTOMER,,)
Fts.cal Yax tm~9& l'\l'9O.-91 1991~9'l Im·'3 i99l-,.. -----E--sY Sa'" (MWH)
~ideatiaI 1S2,211 1 '51,418 151,174 153.693 ISUi'1
Commef1;W :))1,643 J 19,829 J.48,818 356,327 "64.551
ind\.lStTi&l 508,107 508)89 494.)iI~ 411,920 462.819
Mun'K:ipa! and 0tl1et' 55,~47 57, 13.~ 59.S? I 59,595 6J,U8
T~I Li}47,9GS 1.036, i41 I.053,Q-t.s 1.0-~I,5JS 1.1:43.629
Ekctrk CUh"mtr! b) C'IIS~
( ... umt-~r)
Ee5;dt't11ial 2~,3J~ 24,}'~ ~ 14,':S'9 1~A9..\ .... 1.60]
Corr.:,m~r.:i,,! 1J-I9 ~,]., I 2Jg_~ :1,398 .',J ~-!
Ind .. htrial ,19 189 1 g9 19 ! I?(l
~.1ul1'cip,;1 a::ij Ot~,1'r 116 !j'"5 Ii) HU 191
T Qta] ClL'Mrnen. 27,1)48 27,116 V, 246 27,266 2i,J70
PROJECTEI>
Fiscal Year )994-95 1995-96 1996-97 19'9'·"'8 19'~99 ----Energy Slilies (MWtf) --------
R~s iC:~ntja! 1 ~5.400 157,164 159,HO l61,428 1 r.1. 75!
C..:)rome«:ial 359,GV3 ~63.6q5 368,198 .)'n.562 316,624
lndusuial 480.449 48S.9113 492,721 499,035 503,116
Mutikirral and ~ 61,531} 62)1J 6],[ !O 6],926 64,4 SO
TOTAL 1,057,000 \,06?,OOO 1,0114,000 1 ,O'J~,OOO UO";,OOO
&;;;,-::-(:.1." ()/ Palo A/ro
-J 7-
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\
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S&.'r' DO: {S~941~ ()J:1] CRQ D/I TED 12 0::: ~4
. TABLE8
ern' OF PALO ALTO -ELECTRIC un tIn'
CUR~E.I'I'T [LECfRJC SI.R\'rCE RATES
F""
NC~1
R~ .. jnOcr o ... cr
Er1Cft:1 ?..J.\e K'I.I,-rl ($u'1,m::-r}
r r;~r s::' R.1".e ;..:: ',1,'1-1 t· .... nt~')
t.I":U.£,y ~t2:1e [-iwrli'7:n)
fr,er:g;) Rate (~~..'11erl
DemMtr.l Rate Per KI,I,'lt (5ummer)
Demand R.n>:' Per K ~'H (I'o"i"r,r)
300 KVw'h
300 K\lir,
600 KI,\11
S.04: !
S.OS97
$.0795
s.on!
"S.(I(\) 7
$9.00
$7.(jr.)
Clu-rrnl MOnflii} Rate COl1lpans.on ~:tb Surrounditlg Com !!llulitioM
F",r Ccrt.ia UUIIIi! Ln·tb (1)
.RniOtmia..l (500 KWH)
Commm::ia.I ([2,000 X\\1-h; 40 KW)
Indusuia.I (2,750,OOO KWH's, 5,000 KW)
s.)"SI~ A'fer&@:e.Rates(tlKWH)
SQUN:e. Cil)' of Palo Alto
(as of Jllt)", 1994)
24.28
219.00
17J,ON.OO
6.1 ~
I II The:u ralfl!S haw b-eef1 effecl!Yt si'1Ct &pternher 10. j 99D
/1/ Swrwer SeasOfi
-38-
PG&E
62.7~
485.00
225.%6.00
l(U~
SUita Cb.n.
S 32.61
291.00
179,154.00
7.l\!
•
'.
s.&Y l)(K' (SH.C.40'O O(i~i LRJ) DAHD i~ (I~ q-l
TilE GAS FTlUn'
:\1unicipal O"~P of the gas s:ystrn'J began (In October 1, 1ql7 .....-hc:n the CiI),
pun:J--.ased the Pak> AJto Gas CNl".par1)' lhrouSh the procreds of a S40.[)(X) bond issue. On
October 7, 191-9 narural: gas \.lIo'3S introduced iolo the C!t)"'~ mains, as p.uo Allo began pwcbasing
gas trnm Pacific Gas and Et.e.:tric-Company (PG&E), This naturaJ gas:. v.hieh PG&E obtained
from tJy ~wer San Jo.aqui~ od field. h....~ a superior qLa..!ity of 1180 btu per cubic foot. As a
comequencc, OOmestlc gas constDl'!ption ~an to rise dramatically in the early 1Q30's. The
S)strnl and its gas cOOS'..Lmptio!'l h.a~'(' gro~l1 ,"lt~ t~e de\'C'lopmenl of the Cit>,. lJrnii 1991
PG&E had O'adJti0n311y ~ TM Ci,y'~ 50U1ce of :;:i.!pply. F0110wing the deregulation and
u.f'l!:'>u.r.Jling of l~ r.zl~.;.r:lI fas s.e;,ict' industry. P';\I At~o bc'gan. purchasing its gas needs fTom
\ a:~\",'.:s C ~).:.d:!3.n ~,,;rrli(:{";
[).,,;-!.,i,-"ns h~: lh;: en'c J.J~J FFRC J.1!·),..,lng Ih' l:~iiitlt:j; .1:;:';~S_' 10 a bn:'l.1der numt~r of
50H':iers r .. ,!.:.' re5'.d1:.-J !!1 ".>::nlil.:.ml [e:~rn.:(lu.rirj~; (lithe-g,'l.; ir:du~tr:" i\5 ~ r<:;;uil, th.:: City no\\
L?,j p~atcr opp.."'l:-tun;l~ ::..r~d ':Lo5<..X'iaRd r\!sp.::I~1'Sjbi!i'i('~ in hand!i{j~ its ~as supply. rhe City"'.
cun:t'i1! iBt>J1"J.l;;~ 3'..lPf.'!Y ;:;.grewi<:'t'll .... ilh Su.1,:m ~lfCaMJa \'oil! ,,(1nrim.lc until IXcembcr JlN5,
Sun«'r. Fl',"""ilks the City n..:;;'uraJ gas at./l discount from th~ a\crage price obuined b~' PG&E
The City aJ$(l l.<.tllizc<;. PG&E's gas s.to:-age 5)'~.em to "banl-" cheaper gas suppJic.:> \\hi;;h (,';lJ1 be
wi(~\jr;!'wf\ in tho!' '.""ln~'!r m'C;\~ths 'r'.htn lht price'S us'JaUy n<::c. P-aICl Ai'.n ..... 11' <,;,o!'o"\i'!I!~ to ffiunitor
an,1 i~te-r .. ('n: i."'! the ~t::' aria fe"if:r.il p~.x:ee<:ilngs to pro!e-Cl iLS: inrGcs.ls. 3!ld ens.I).f,,! dc-... elopm~nt
()j.Jrl optlmwn portfolio 01 s\Jpplj~. In tbe swnme. of i994. Pale Alto executed an agreement
",ilh the \i<."Ija'o'c ?ipdi.ne Company for in~ tJanspc;fJ.atio!1 scro,'lce. Th;s service ",,"'til
ill splact: tiw. provided 1.·\.I1TenrJ)' b) PG&:E,
T~ City's g15 s:y~.em performs Qe funcuon." of prnsure regulation, distribl.ltiOfi and
mc:'lering. The City does DOl foresee ~..g to the SCT'iiD: area in the futuK Planned
imprD"\·emetlu '-,)riB ~tro~ and reduce S)'~em \eabgt. anrl increase the capacity of certain lines to
meet current artrl projected densit), in certain a.~ of the Cily.
M'o,ccmcn' PivvuiOD 01 Qpt[;ptionl
From FY1989.9Q through FYI991·92, sales. rC'n=nuc:s d~reased at a compound annual
rat, of 4 pc'fCen[ mainly due lO ..... 31mer \\ C"ather in !.he ""inter months. However, bel\\'een
FY1CN1-';n 3Il,j FY1~3·q4. ~.a1('$ r!''''l!n~u'':s increased .Ii a 5 pt~!cen: ciJmpounded annllid rate.
'Sak~ revenut, ;;:re proj';ct~d !o t:J.CT¢.~ by 34 percenl by FYI9n-99. This rt-yenue increase
rd1ct::.s a 0.22 percell! ..::ompGLUz.:1t'"C annual grov.1h in them. sales and aI, <1.micipated increase du.-e
to pri.~e n:s1T~turing .
. . -.-.-.-.. -.---_____ ......... ;6._ .... ,"
I'·
I'
The gas <;ommodit}, and tran.sporutlOn purchase cost.;; d~re35ed at a o..'0mp0wnd annuaJ
rale of 1.9% from FY19B9~90 Lh.l1Jugh FY 19Q3·94 as Ihe City enle'red into ne"" purc-hJ,..s.e
agreements ',.vith suppliers 1,., Canada HO .... --eVff, the gao; purch.a:;.t' CQ5!5 aft rro;ecled to increa...<.c
24% in the five-year forec-.asl period,
~ City's gas rates ~ \'C1')o C'ompetilive \\1U, (lthei gas utilille$ in ll).;o State. Ta~le 1 ~
below sho)ws tlh: compa..r1SC1;; tlf Palo Altos,!;as rates tCI tho~ ('f PG&E The h3IMl<;;"c ~!1 ~
operating resave ofthc: Gas L't~lit), .tl the end of FY 19'11·94 IS S 7 .639 ,()OfJ.
C,pitallmprpymn t PCOj'um Sp-PIO"
1'llc Utilities l)epartrnent I ~1·9-i CapiLaJ Imrr,iyerrr-::-nI Pnl~:rd1T' R(~.>r1:-. iJen1i!'ied
various projects rotaiing S9.I05,200 In e-..;pe,~tiUTC'S (.Jf t.~ ga:: ·;)$LL'm ~~,t.tm nt~"'IWC·r\S. t!3.~
main replacement's, and meters. a..'ld f':'~U['!'CrS. (.l;-r'rrl<..('-J ti:..:" m..1i,lr11~' I..~( L"['~ (,:'(:21 ~r<''1,jin; ~;"!
a tottJ arnount \)f S7,~ m\\hoil ')\.('r fNJI : (""n , h.'i \j",l! \':"~~·h'::"1 f't'oc-:1 the ' .. ~F:L\
improvements in·:::lude gas 5)5.1;;>111 e:-..('ns:L'fl.~. ~.l." rn.;l.Ir'1 tC:1~,h~rT,~'i~~.' .. C3.~, r;:,:(e-r~ .cr·j r"";'ll~,;:·.'>
and ccmrress.ed na!U!31 giO.S '1.'hlCic ~'I>:l',tr5~(t:I-' \11 .::Jl>lL:J:! <''i~.LJ t,,', Si"; -: ;;!liJ:·l'n ~,t l~';
budgeted Si4.9 minion wdl r..;: !is-r',.i ~~~ r('rb:~ 1l:r.L","'J.) lirr~'.<1 ktt ,':-J,'t;;~,:\rJ:~J fi'; rr,.l,r.~ f"~r
yeaI'. rh~ gas n1.li" Ttph::c,;-ne:r-Il r'\"l!d-f.;lr:J v,lli H·'f·i;trLI.'~' ;:llf,i:'l.ih' :J:llil :'n~:;:
•
HiafpdFjllfPrnicdcd °peration'
The following table shows 3 historical and five-year projC"Cled record oC ga ... thenns sol,d
and reflects the low rate of gro'.'w"th in tile Cit)' and impact of climatic-\'ariatic!1 on gil.) usa:ge
SOIcn:e: 0'1}" of Pt:1Jc. A/to
TABLE'
CITY Orf'ALO ALTO· GAS VTILm
TEN·'fEAR (l9H-I994) HISTORIC", L SAl.rs
Qa'lllllttt)
''''''' ....
Yeo, (TlIifI1b) __ ~.O: .. ~
1985 31,9:5"/.2:S5
19&6 J:,,~16,B9 1-y" I _,,'
1981 JS,19·U~ I
!98& 3",n7.1A~J ( I J,I
1939 ::;.1,94i,.;05 C ...
19~O } ?66¢. i -t2 I,;'
19'11 ](),685.,J22 1,2 ,~)
1992 3,1,:18,8'JS (6,; )
1'il9J 3S,TOUrS ~J
1994 ;6,197.SN ; ;
nV[-VfAR (l~99) PROJECTEDS.,nES {THF:R."'~)
I99S
19%
1991
I INS
!999
35,836,OCJO
3.s,91_~.WO
)_~.9%,O~)J
}6,07/5,(.I(K1
]6, I 56.(iI){I
-41-
----~-----
i ,
i
I
I
--------~---......
S&:'l:' [X)C rSFQ-l29(10(J~)21(RQ DATf-.D I::! O~ 94
The table below sets f:Jrth the top ten Gas Utilit), Cl1~tomr:rs hased on revenues for
FYi 993·94. The Cicy's top ten Gas Utility customers use 31.43% of lhe gas the:ms s.old and
~t 27.7'% of the total annual FYI993·94 revenues of the Gas Utility; u,ese users also
collectivtiy represent 39,So-!/o of the revenues of the Electric Utility, and 3.7% of the Gross
Re\ enues a f the Ent~rise.
-----,--
Sc.,r.-,,-err), ofPa/o cfilt'
i II ~ is.!i'd in ulpf!"bt:l,'c:11' orda
TABLE Ie
CITY OFPI!.LO ALTO·GAS Ul1Lm'
TOP TEN CUSTOMERS (1 "3-94) (I)
Al2.3 Corporalion
City facilities
He ..... lett Packard
LocU,«t1
LURAL
Palo ,10.1'0 Ur.ified School Di~tri~~
S)r.te)"'''Rvde Cotp"x3!icn
Ve-t-:r.!m Adrninim'lliot1 HCSP'l.'li
\./ariaJ'l A$soci';;le$
Watk~tis-lo~,n~GI1
-42-
•
S8:Y DOC [5F~'4~"OO 0021 CRQ Dl'I TED I..:! OS '-' ....
The f<:ot!oYl-ing table ~ts ga.s (Therrm) sales by class. and nwnber of Gas Utility
("llSIorners f:.)' class for the yea.~ FYi 9g9.9(1 through FY1993·94 and proje~tt'd gas sales of the
Gas Utiht).
FuuJ Yr_
C¥ Saies (Tkra:,)
ResidenoaJ
Ctwo'Ime1'tul
,n.dustria:!
.... hlfl~.pll ~ (lib«
f.',(, ~~.-"!!
(,},... T~~\:~l
(;aJ S;ok-l (T~e1"~)
i\n~h.}
(' 00Ime-r; Lad
r~1
.\<1 .... , k:j~ 4f)<j C>ther
TOTAL
TA.BlE II
em' OF PAl.O ALTO· GAS (iTiLlTY
GAS CUSTOMERS
, ...... 1,,*-91 1991·92 L99:1·93
15.971.9!5 15.595,93.3 14.106,607 14,944.694
a.097,6()..1 6,MS.M7 6.76J.15.( 1.031,626
q.9~i,qI5 IO,J'i4.2)g 10,165.11.$ 10.083, 769
l63 I ,6)8 J.I~9."'ll5 J,I8J.4Q9 J,I.-)5.n9
.;i,'~,142 .~('.~S:5A~_: 3~.:;I:(.~S~ J5,2] UPS
2', ,1 ~, ~ :;'!.'iVI 2U81 21.2,~6
U71 ,~q I ,'SS'~ I. ~ i~)
[9.: IE." :$'" 1 ~~ ;,
! 3 ..;.'" '~ ~ ,.,
22,98£ :'~ {~, n.IB 23,HO
p~OJr.rr[D
i 9';4-~ 1tX."5-% 1~9") 1~7.-nJ -----------------
1~,1~1,197 Ij.]2/).7?i IS,1_~.~,IOj 15,239/)j"/9
7,!9O,352 7,206.704 1.222.9P 7,239,1) ID
1015),3% 10.2'6,000 10,299, I 'U, 10)22;065
3.20)01,455 ),21 U19 J.21i1,762 3225,916
15.!J.'I,{.i(jQ H:915.000 ),$.9%,1)0 :16,u76,000
-43·
1 99}-94
IS,801.6{lQ
1.437;620
!0.O]:),095
,1.! ]6,:'103-
}6,JQ7.)29
! i 375
q~
1.Ii.S
,,5
2"i,2 ,10
1998-99 ----
15.322.91)
7.255.0(.)
10,344,95;
J.2H,{J7{1
36,156,00(1
•
,
\
,.
./
The current rate sch..--dule f(lr th.c Gas t'ti I ity is. ~hown bt-low, for appriyxlmately :5 years.
the City has m.a.intained rates al a k\'C:"l c-quiulent to or ;OWeT than the rates charged hy PG&E in
ad-,acent service .'!rea!. A1. of July. 199-4 tr-~ ~sidrntla! ral~ aN." 6 l·,~ Ill ..... e, ;han PC.&E rates, in
addition com.mercial rates are 3.3";'0 tow-e. but industria.! roues ~~ I.! -<',; higr'.er than comrar;;blt.
PG&E rates.
~tes:
1'1 it> :lj rhtr~r;<, j':':"i If,~r'-,
0\ M" 20 thE:;' >. po:-r tr.t,;;,
TABU: 11
em'Of PAoLO ,'LTO~GAS FTRm'
GAS RAITS
([fFf(jl\"[ JI''L'' l. iffi)
·H~~~~li
"iQ I) 'c"J;~S
\.\ illt" Ratt (~'{)\. I t~ Apr.1 !..(l)'
1).% t!leml;, ptT d'\,zml
0\ O!T % ~hM1';'\. p<" 'h.mn
C.rrnt MG4I~' Rtok CMlp.an.o. .-):111 s.~.8dlaj. CQ ..... i1ia
fut Cm.aia tsact Lnds
(as: of J_t, I, I,,",)
P.IIk/ Ahu PC &. E
Rt,:$i4en~
Comrnerclal
Indusoial
S 59.57
So 236,60
U,S5-0 Ot~
S 6].44
S.243.91
~g. 7':'" i-:
., .' ,
\
TilE WATER FTlLlTY
Prior to incorporation in }894 the: :ifeJ lh.1t was te. ~~")mc Ih< f'11Y 0f Pa.io Alt0
developed as a number of small populati:)n center!', Hlcse cemers wer~ ~n·cd by pri\ ale .... ~ter
companll'."s It,a! drev.' thtir supp}) from rdati\'ely shallow .... ells in l8%, 1W(1 ~'e;;.rs af'!er
incorporation. bonds were sold by the CilY in order 10 jJUJcha.se the water clJmpame:; and to
construct new u.cilitics.
Deep weHs. pro~1d.ed Vill\tet to the grW1llUy incf~it\E-pc\~Hllal~on u.."\til lQ)S, .... hen {he
decline of the groundwater Ie .... el n~C::S5ilatN the pW'Cr.a.s.e of irnJ'Orted walt"r Th~ f,TD\loln~
demand thell'afier was met "'ith incrr-asing purch.a.s.e" of ~uprly t'n.ml lhc W:1~tI l)epartM;:f,{ ,,)f
the City and Cown)"' of San Francis-.:.o (SFWDl. In 196.1, in OrD:1' [0 pr~wi.ji: a h!~hl!r --l0j..]jil) .-,f
,'I:a:t,:r to its cLlStom.!f'S, P:3Jo Alto bega.."l purchas! reg 1 rJi)~,:) Ill' its \',3.le( frDfll ~ F v:n
.san Fr.lllcis.';li imr-)rt~ 80% nf tb: "'3!,~r 5llFrl:, ~,{\~J hi F';>~'l :\i\(, f"',,',,, ti'" l~,,\:LiJ:;;·:.e
River watershed in the SiC'~a Ne\,il.Lt n,;ar )"(':';-'11;-.': ~~Jll~~n .. d f'..uk llq"'!lh.~-:.,..i .• c i l:,:,'h .. H..::,'h:.
Rcsen'oir, tile v,.:ti:r is d~li\'el'('(l to ter.ninuj rc~r\'0ir.; Oil l.he ~dJ1 Frc!Ti": i ",,'(I P';:[1iI1,wi;J \13. z.
aq • ..:.ed.uct that er'Js.:.e::. San\.a Clara Ccunt]. pru\ljm.g 'acC!::ss to lhe C\t)' (If ~~i0 AI,I,\ :l\\J ~ll~}:;;
wholesale ..:u.:.1omers, The Iemaining 20~/() of the supply is k('ru rtlriofr imr()'l!ldr;J in i~5(T.<Jirs
located In the Coast Ranges of the SaIl FranclSI:o P"'lliruul .. 3...'tld Last Eh .. I,'.
Thr' current >,.valeT :>.llf'S contract \\-itll SFWD was implc-mentrd c,n JJI~ 1. i 984 and, \,ilh
a 25 year ttml, WIll er.pu-e on June 30. 2009. It is art aJI-ieqlJlr~mcnL<; "OTllJa':i "it. .. npli<"'l1
provisions for adjusting 'wholesale rates to match changu..g n:n:nuc ~wn:m(:n!5 of Ibe SF\'/D
on a periodic basis. The !;ontract cmtitles Palo Aho 10 a minimwn of 1..'1 .. 5 mil!i0n ~sllons per
day.
1be Cit)· also maintains its DYo'n deep .... ell system. which could suppJy )/4 to 1i3 ()f lhe
sen'ice area's needs. on an emergency basis.
fAdJjtiq
The SFV.lD supply is d~li\'ered throllgh fOUI l;onn.e"ti0!13 L>U! t.<:.p irk") .h:~:.:-dillereot
b!a."lch pipelines of the SFWD aqueduct The Cit) :liS0 .;ontll1uCS to mainw.in J..r'.d ("1per.;l!c; loLO!
deep weUs as supplemenW)' and backup supply.
The SFWD water is of excellent qualilY. COilsequ("n~j)'. the City's tre.1trnent (1f rhe
purchased \yatcr is limited to fluoride injection
The current rate structure is an increJ.;;ing hl<:x:k r,;lle (0 cn~ouragc \~.atCf c,mserYati0n,
The ~ity also has programs: it can impkmt:nt in re;~x)I,~ to pc-riodic drought S.iluaiions
(
The Cit)' of Palo Alto maint<tins about 10.5 million gallons of storage in i'~ diSlrlDwtton
.s.ySlew, Current average 1;{)n5umption is 16.1 miHkm gallons per da)·. ~,,1oS-t area.'; of the City :lr('
rated Class 3 (very gO<Xl) by the Board of Pa.cific Fire Underv.Titm.
Map_cemegt Discpnion of Qsxra ti OP5
From FYI989·90 10 FYI993-94 sales revenue increased at a compoILnde-J. arJwal ra!e of
11.1 pcrceCl driven by increa.s-W {;onswnptlcn beginning In F'{ 1991·92 after the end of rh~ 5·
year dr.:>ughl. O"cr the next 5·year pt'riod sales are projected to increase at a compo\,lnde-d annual
rate of 2.7 percent.
Wholesale p\JtC.hase CQsts of VI''ater increased 18 percent from FY 1989·'}O to FY 1991 -92
due to hlgher rates chari;ed by the-SFWD during the drought perle" However. from FY1'992-9.1
to FY1993·94 the water purchase c.;1~s decreased It percent as SFWD lowered Its whole~e
wat!r rates in FYl992·93. For !.he next five years, u .... e purcha<;e COSL'> are projected to incre.ase 17
p<:rcem :and v.·;l1 result in COSIS of approximately 35 cents (luI of e,'uy ~k::. revcrHle d0h.r h)
FY199S·99. This estim"'-tc! is b~d on 1.9 percent (orr.p.JlJJldeJ itnI1u()l incr'~a_:;~' in LlI1.i\ s.ak:;
from FY1S'9 ... ·95 10 FY[99&-99. Th>e balance '.n t.he operating res-:::!"e I,f l~,~ \\"~ter tifiiity 'I')
$6,648,000 at th.? ('ltd of FYI99J-94. One pw--p<:l$e of the fe~r':c is 10 mnig<:at:' dl:.1:lge~ it' r,,!,~::.
ill <;ilse of anothci diought
The Utilities Department's 199]-94 capital improvement program re-pons. idi'nlifi,:J
$6,738,000 for a variery of \-\,8.lcr system project-;, The bulk of tile t~mding. S";,1 million, W(l'::'
utililX'd tor water main rcph~cfml!nu.. For 1995-1999, the proje<'ted ..:;apita! impro· .. emenls.
include water s),stem exu-Tlsicns, service and hydr-ant rep~ii.cements., water mc!t:r~;;, \,',ller main
replacements, and water rese-rvolr Improvements. An amount vI' S9.9 million of tile budgeted
$12.3 mmion ~i!l be used for wa~er main rep!ao:mO:ilt5. TIle "1lt=-r main replac.emenl program
will conumte to replece deteriorated cast iron pipes at a rate of three mj les r..er year until ::W 1 g
Hb'oriW/Projede-d Qpcraoons
Ie the pa.rt ten years there hiwe been dramatic changes in the amoWlt of ..... ater sold br {he
Water Utility to its customeT3. Large declines occurred in 1989 and 1991 due to rationing and
COnstIVatiOD measures in respoo.se to the droughts; experienced in this; regIon of tho::-Sta!e during
that rime. Recently water usage increased from the low uSolge experienced du.-1l1g tht.: dreugh1. A.
large pcrc-ent of this increase is anribhted to the return to normal uuge ra1.b.er than increase~ In
customer base. The projections of water use do not reflect any restrictions v.hich m.ly be
imposed as " result of a drough:.
-46-
•
TABLE 13
CIT\' OFf'ALOALTO· WAn::R UTILITY
TEN· YEAR 1985-.94 HISTORICAL.SAL.[S
Fi:Ka1
Y .. ,
192~
19&6
lot)
1988
1m
190()
'''' 1992
199~
1 ""
QUJlQlity
Sold
KeF)
1.33&:.060
7.213.911>
1,3!9.OQQ
7.~S 1.265
6,~50,384
6,J59,85J
.5,023,$;.fg
4.64~,i6l
4,~:)7,3S6
5,6l0.-H8
6,OF'!,r}:}:)
U60.GO-J
6.~42,CH)iJ
./),02~,{H.:O
6,305,00(;
% Chanll:r
(I.:'\}%
2_J
3.5
(11.0)
1).1
(21.0)
(1.4)
H
16.;:
S. j
1; .~.l
2.9
The top tc:n CU!:.10mfT'5 of fhe Water Utility in FY!993·94 represenr: 22.7%; of th::: lOU]
rl":tI1li"!:;' oflht'" Water Utility. rne~ c!.lStnmer-s. als.o represent 2.6% of!h.:: Gro~s Rew'nues oftht
Enrerpl ise O'..-eT the same peri(xL
SowT"o" Cil)' of Palo A/Ie
(! i Li.,l<,d in aichatefical (m;Nr
TI'\BL£14
em or P' .... LO ALTO· WATER lrrlI.ITY
TOP TEN CUSTOMERS (l9'93m) (I)
Cit)' FA(11illcs
Hew lett PKkard
LORAL
Palo Alto Go If COW'S:"
Palo .o\Ito Ullificod School District
S)'T1tt!x/Rochc CO!pOroltlOn
Ve(eran~ AdfTan;SU"ation H('"$pilal
VilfWl Associates
Xerox COrpo:ali-on
-47· -_._-
The follov.ing table reflect wata s.tks 1:1)' class and number of \V~te-r customerc;. by class
fOf the y~ FY1989-90 through fYl ;.q3·<}4 as wc:ll as pnJje:led sale~ of the W.ller Utility.
W.!ft's.Jes (Cd)
Jtt:o.,~
Co:n.-nm-iLi
I~!
M","ic ipt.l.-.i 0:[«1"
~I!'tr C;H!lrl'lrr:; ~\
C~
W.alt-r Sll~_' (Cd)
R::~"j::-~~l~l
C CJ(:'jJ"","T, ",I
l;-,~:ill
M:.Lf1icipiI!.I,Ilj Otix'r
TOT,-\l
---------
Sutv';i Cil) of Polo .~ho
TA.BU:: l~
em' OFl'ALO ALTO· WATf.R HTllIT'r
WATf:Jl SALES {C::f1
, .......
.: ';.1 1.074 1.'TUn ,2.]01.361: .: 4Q~.626
2.OCI~,970 l.()04.~,611 1,(N7,))O 1,!4,.4,"1'IJ
1.109,10-1 Un51 776,409 710.720
~ 13,1~fI oe-lt.,U::! 468,6~6 ~8-6,19?
..,.J 5".S ~-' 5rl~'J,~8 ~.{.49 763 -l S:1~, 3.~e.
~ 0 ,5<;0 ~ i ~_ ,,,-,;,,'.' " (';7(1 \ ,~, ,0;; 19
I ~ ~ -': I .i.' :. 1 _~~, j. 7~-4
~,q .'N 2-' ~ ) ,: l
~ '::-,j :H } 1 ;
i 3:;'1.' I , 'iN i .... ,~~ 19,r)57
PJiOJH'tlD
1997·98
~,(..q 1,6:"-1 J,l8-4.n.~ J.2 J"? ,J 6:5 J)6~.%O
L~'.0j.5 1,490,631 1,533,%9 1.517,J07
9J9,j.~ 961.1% 995.9)) 1,024.010
:591i,T67 6! 6,?9S 6)4,1JD 652,66J
6,JTI,OOO e.16o'J,OOO 6,442.1]00 6,~14.cx.'I()
-~s-
2Jun,Ofg
U5.UJI
~S,·n7
5J.JY~~
~,62C',-I18
1/).' J 11
1.76 ~
::'?
.1-1 ~
1 q, [~)i)
3,+6155-]
1,6.10,6-1.'.
I,Oj2.1u8
tl70,S9,~
60806.000
•
For Si8·inch me(tt
For Jr4-incll mnn
F...,.-i·lII(:h mettT
Fcor I l,'2·mcb tr.«er
for 2·1nc:h mc'teI'
'F Of J.iDdl, IMler
F<lI" 4-mch mtter
For ~indI mttM'
F~ ~mr.h m-!ter
For Io.ilx:h me1.:r
1Cd
! Cd
14 Cd
PH Mel"" Per Moau.
}O Cd
3(1 Cd
Scwce, Oty af Paio AIM
T,o\BL[ h
CITY OF PALO ALTO· "'""fIR l"nUTY
ClJRR£~T \0\' A IT R RA n.s
Per Me1ltr
Ptr ~OHIl"
s.; 00
400
.; ~O
5.10
UO
11,}O
:6.:'0
JO 00
~IS -; ~
:c-:g r:{l
~lR;'\.t flli1'.l) RMdc'HN[\,\'·\j
PH Hil!ltl'/'ffl r'",h~t Fffll,C,:rI
~Iul: ('O)rB1!::rr~i:::1 iW .... )
'f'tl Hllldr-ci C~bK f:1'1 (Cd)
An f'rnM rt Zocn
C..,.parisGa ,,"'it.IiI S.IT'O:IIMI:a& C<-..... ~
MM~1y Rltn [fkt1in J.ty I, I""
(NNl DJ-o,q"f Rate)
S 24,65 S lH5 5 2_, 1 i
,f
I
I
i
I
i
THE WASTEWATER tiT1UTY
The ~\."3.S1ewater collection s),stem becamt' Palo Alto's fiN.t utilily in 1896 ::;.erving a
population of about 3,000, Currentlr, the collection system serves Approximately 58.100
residents in Palo AllO ~,ithin its 25 square mile ser"ice a.'P'I':.3.
The City ofP.uo Al,o operilte5 a 38 mmlon gal.lon pet da)' ~rngd) Rtgiona..! Wa.ter Qualiry
Control PIa..'1t (RWQCPJ serving a Q6 square mile area induding the CIties of Palo A!lO. Los
Altos. Mountain View. the To'o'l'Jl of Los t\ltos Hills, Scanford U,1iHTSiry ar..d the f::tsl Pa.io ,-\110
Sa'litar), District. The Cities of Pa]o Alto. \fountain Vie\.\. a.nd Los ,.l.,I!os are partne-r~ lrl .Jll
~menl spc.cil'):ing conditions for tilla.nci!lg and operadng [he Plant Los. A~lo!> Hills. the: t~.l.';t
Palo Alto Sanitary District. and Stanford lfrtin:rsit~ are included by sep.1131e .. '0r1\T~;L~ \\ ith F'd:,)
Alto which at,,; referred to a.-;. -'"ub--partner agft"emenl';, Tr,c plJ.11t rroY1J~·S. 3J',J...r:,;~'J se",I:l,j~,
and ten~aD' \e:yeJ oftre~'\.mcn: to the innuen.t
fycjljties
In I ':d.J , " \V3slcwah;r tr'!~tmel1t piant 'XJS "'C'f),>lru,,tt,;d ill pnwidl' rrirr<I1'-:' trL\ilm..:n\ \1.1 .;;.11
w3S1ew3t~r CIJile-dcd in the City :l.l1li .'ItaJlJoro Universil,\' Imprc.~'em(;"nrs in Itf-l8 J11d 1956
increased tre31ml!Ht capacity. addrc,)5ed special seasoJlal W3.'>te I03ds at'\d e'\unded tho;.' (.outfall inw
San Frandsco Bay proper,
In 1973. I;ons!ruclion of th.-basic s.econdary trealIIIcnl fs.:i!ilY was completc."J \\ilh
service extended to include wa.<;te·~·ater Ul;:stmenl for the ~illes of Palo Alto, ~fnunt.a.~n Vie\'.. a.'1,j
Los Alt05 as: well as Los Al!Os Hills, Stanford University and the East Palo ,..-\Itn San.it3l)
Dist-..tict These facilities were fmanad b)' the tOl,;a1 entities \.I\-ith the a.s.si,<;L3.nce of federal and
state grants.
In 1979, due to iederal requirements related to seco~dat)· treatmer1J sta.",dards, a.,hanced
waste\vat<:r t.reatmenl facilities were added to the plant. Funding of these ta.:ilities .~as from
feder-.u and s.tate gr4l'lts and reimburs.emenlS from the 1973 treatmenl fdcilit)' construe-hen
project In 1983, a ~te\\'3tr.:r system sludge de'"'Utering faci1il), was added tu the plan I In
! 985, a R WQCP Capacity Expansion program "''8$ dtveloped 10 met:t the needs 1.11' all the
facility's partner agem::ies through !995. This. expa."lSivn increased the capacifY of the pl.an: to 38
mgd. and primar),/scc(ln:ia:r} treatment for peak wet ,,",'eather flow_" 10 80 mgd, Also in 19!!:S. a
tI\'e·year capital u-nprmement progrnrn wa'S begun in !he waste\\'ater collection system dedicated
10 inflowlinfiltnLtion {If I} source detection and s)'stem rehabilitation,
-50-
. \ \
"-' ...• . ." . .. ~
, ,
tl
.~-.---..:-
S&~· DOC [SF9.\290D,(J(J2jCRQ r)ATtD 11 ()) ",'4
M,u'pwmt Discussion of QpcntiOD5
From FYI989~90 through FYI99:3~94 wastewater sales revenue increased at a I;;ompound
annual rate of 11.45 percent which reflec!s revenues required to cover the co)t~ of R WQCP and
build reserves in the collection fu.J,d fer the pianned infras.trucnu-e improvements of the sewer
mains. For the FYl994-95 through FY1989~~ period, the saJes are projected to im:rease at a
compound att.l"Jual rate of 4 percent. nus estimat~ reflects a 3.6 percent compound annual rat: of
change in tht volume ('fsewer treatment. The balance in thl! operating reserve oflhe Wa.<;.tew<lter
\Jtility "' .... ' S8,894,OOO at ,Ile end of FY 1 '193-94.
The: plant's discharge into San Francisco Bay was authorized by a three-year National
Pollution Oi~ha.rge Elimination System (J'Io'PDES) permit which was issued on December 28.
t988 by the Reg\onal Water Quality Controi Board. Th~ pemti\ was amended Ma)' 16.1990 to
indude addilional pre~treatmcnt and waste minimization requirem~nts. The permit required
S-evcr..tJ ongt1irlg ~l,ldi~5 regarding pa.rticular components of the plant's effluent. A!I ~tud!
deadlines ":ere mel. The pennit was again amended Aprii i 7. 1991. setting "int!!ilin
conccntrJ.IJCn I:rnits for toxic polh.lta!'!ts,'" The eXlTrmcly lo ... ~' limii of 2,9 ugn f0r copper ':J.rJ;Llt
t-..e achieved by conventional me,;.ms; the tead flnd nickel ,:alLles art' 3.lso ques.rionabk as tel their
achievabilit),. Oi~lion from t..'1~ Regional V/ater Qualit)' Control Board is that th'ough Sflun,:e
control 3Jld \l.atcr re:damalion projects. toxic pollutant redu.ctions \ .. 111 J:.e reqUired, J\ new lin:
yea.: pemJit was rei.;slled on July 21. 1993 £i,mg with.:: Cease and Desis.t Order 93-083. The
pennit (;ontalr.s a copper discharge lim!1 of 4,9 ug/l and a mass discharge of no lbs, per )'e-ar.
The Cease and D.:sist Order contains an interim copper limit of 17 uglJ <'!Jong \l,ith compli.:.w.ce
deadlint::s for full compliance '~'ith the copper mass effluent limit to be achleved by July 21.
1998. The Cease and Desist Order als.o contain.'> addi~i<)nal program requirements for source
control a .... id adoption of mere stringent Io<:allimits tor indu'itttal discharges.
Capi") Imprnv<mcpt Provam Summary
The li tili!ies Depart:menl 1991 ~94 Capital Improvement Program Reports Ii sts a number
of capital pT")jects which ,"-ere finan<:ed from waste\.lo'aler system revenues, Tnt! four~year period
for Wastewat« Collection totaled $.5.6 million of v-hich $4.7 million was. for Collection System
Rehabiliration. More than $2.6 million was. utilized for the Water Quality Control Treatment
Plant improvements and equipment replacement. The capital improvement ptan for FY 1995-99
includes 'I1II'UIe'Water coUection system extef1...sions and wastewater collection system
rehabillUitionl~Uition. An amount of 524.3 million of the budgeted 527.5 million wili b<
used for w~""t.e'oI¥-a£et ~)JJe1;tion system rehabilitation/augmentation. The wastewater collc:ction
system rehabilitation/augmentation program will implement system improvements recomnlended
in the 1989 wastewater <:oliection system master plan siudy. These improvements wi.1l reduce
inflow from rnin\\1"3ter and groundwater and eliminate capacity deficiencies. The progr..utl will Ix.
compl<terl in 2016.
-51-
,
Hi.stprkaUPmimcd a.Dtion ,
The follo'\.l\.ing table reflects a hiS10ricaj and fi\'e.year projected record of w4Stewater
Ut'.atcd ~y the Waste-waler Utlli£)' The decrease in trea.tmenl valum.;: in the latter part of the
19805 and ro.,tinwng into 1991 and 1992 'W-:l.S Ju(' to consCTvation efforts during thC' five-year
drou~bt. T'ht projected mcrea..::.es are ex~ted from the rela.'Ution of cons~r .. ation measures and
npected gro\\th in t.i1<' cit:es cof Mountain View and East Palo Alto.
TABLE1?
em-Of PALO ALTO ~ WAST[WATFR lHIUTY ~I)
(for.U ,,.steill parnen)
19&.. ...... '" HI~"ORIC."'L TRI.ATMENT YOLtiME
Wu~e~:lirr
fnuJ Trult'd
Yur (MGD) ./;, Crulil~e
i t;,S~ ~6.Q
\<;.% ::10 " i~ "
i<:lp _,1)3-: }.:
19~ ~ n , \2~ '1
i'iN . -, (5, S)
I 'Nt.) .,,! 1.9 11 ,3)
19'91 2lJI (4, l)
1'192 198 (5.7)
1~3 22.3 12.6
1m 12.'0 0.9
fI\,r.-YEAR L~~ PROJECT10 nU;ATME~T VOLUMf'.
Smuu 01): of Pate ... (ito
1')095 , .....
'997 ,''''' 1999
160
no
2S,O
211,0
}o.o
III
18
},7
3.6
3.4
OJ WW~'.<iI~!TUIUd U jO' tJw crt~ of Palo cWo, Lru ,"Iw~ a11d MClllJIlaif'l View, ;J,e Ea.fI Pall) Altl' SaniuU'}'
DuIn.,'I, Sllll'{~d UlIiWNJI)', on4 Los AU(JJ Hills
A'/Ji?' plant apaNlrHl RWQCI' ..:o.poci,y 'naclJ.!f!d /0 18 0 .lrfGD frorrt !9f,9 to "Mi, pl,"nt <,.-araciry ~'a..1 3{),('
'_,'i.7D
-52-
, .
The lOp ten cUS10mers of the City's portion ('If the: Wa.o;;tew~~er Utility reprt'scn! 60,~,c of
the City's portiQ:!l or total Te\"1!11ue5 for fY 11./93·9-; a,.,c ~.8e,.o of:.he total Gros-'S R~\'eT1ue of the
Ent~ over the = period.
5,--'~"<' \.." ,:'(,,';':.;',,.,,,'!,
TA,Sl£l8
CITI' OI-"f>4t.O ALTO~ ~-AST[~'ATER UTILm'
TOf' IT.~ n::iTOM [as (r ... \I9oC) (I)
C~' ra.:;llme-'~
He"o'lm P'acUrd
lOR..U
f>Vo A 110 C-rufict! School Distnct
S!mfQtTj ~oca.J Cmte1"
~~"l'lIe," 'R<x1'Ic: C·.~atK>n
\'~r-'"Ul! " .. drr.l.·H.,.'t~i<.," Hos7Jt;]
\'.z...n ........ ,':"'>.\.O:'.a.te<;
',I;"J:i. :"1~_',,,-,;.,;.Yl
.\~'-'" C";1'~f;'t~:'f'
(II L'H<Ij·,:C.'P"'"'~_:,·'·." ',;.,
~S3·
. ,
The following table reflects t~ amotml of 'o\-aste~a!er tre:ltN b~' d.l..-'" (for .a.I: 'S~·s.'.:m
partI:J.m) a."ld the number of \\'a.<ttewater customers by class I for r.;l/o A!1\1 only) for tl-tt-fi . ...:.aJ
yean t9g9·90 through 1993·94 as well as projettd tre3tmenl 'DrWi1< (tix aii !oystem partner'S I.
TABLE 19
ern' OF PALO A.t. TO· WASTEWATE.R l,TILln'
MGD TR[A. TED
Fi..cal Yar 1~·9\) i99(l...IJl 19'IJ1-9~ {qq::~9J
Wa.mwater T"l"'died {MCD)
ral! rystc.u partaen)
Re$identiaJ 9,9 .' " I {~ (
Commercial -'SJ 6·J ~ -: 1;15-
In.1u.nriai .4.5 -u -I:' ..! :-
Mwni-:ip.&1 and Omer " ! , ! 1.1 , I
IN.\! 1].9 ~ I n 1,,:. "
[liutt)be ... ('fCu~toml'rs b,. Ci.a.>$
(Proia ,4. Ito Onl})
Res:derlii:!1 19,58(1 19, :f~' i', ~:,.--, lc:,':i8-
C(\mrner~'ia; 1,46-1 ,-I-:'f !,,:'
In.ju~trl"l III lit, i'fo ,-,
Municipal and Ol.h-:, 67 " c..-, &3
rotal C'J.l.t')mers Zl,270 2 i ,4~O 2U.Q ':::1,H5
PROJECTED
fiscai Y~a:-,-" 1~% 19%--9/ 19'i~·98 ------
Wu,",.ter Truled (MGD)
(all '!)'V..e.l partoen.}
Reside-ntia I 1J,1 12.1 126 D']
Commerc-ial lj 'J.!I 81 S,-I
Industria! J ; U 5.9 , I
Munic ipsl 3f!d IJ IJ " U
om ..
TOTAL 16.0 27.0 230 2'H~
&-;'~citj;-~) Paio A 110
Rata
199J-9<Ii
i 0 ~
~ ~
" I :
~ ~ ,
:',)1.,
~ -:;
I',-j
:: i ,6 -: ~
IW8-Q'I
IJ.:'
, 1
6,1
I.-
:>0 G
Wastewater-Utility rates nonnall~' .efleet a flat fee structwe and the st.ru.:-turc is (M'1ged
to accommodat~ the rCVr:;n.UC rcqu.ircments £in:n tb:' ch~nges; ~n 11cl""'_ S!.Kh as ..:.hJ.r.,t!c:; Ju.t: 11.1
drought related I:oi\~er\-'ati(m.
.' ,
\
TABLE 20
ern' Of PALO ALTO· WASTEWATER tJTILJTY
CllRRENT RATE STR UCTURI.
Per Mom:I1' Each dom~lic \J\oI,'dling unit
OtJacor "EstabUthmtntJ
M inimUITl Charge-per <:onnCC~LOt1 pet mondl
Quantity Rlies: Based on m~ water per 100 ("Lib Ie teet
Co.strcial Rates:
II-.....
Mmimum cbatge ptr coone;;lj.oo pe'l" month
Saseoj \.."t! metered w;atu, per :00 cLlbi::: f!:e1
SU.89
S $,44
513.89
$2. g{J
A.~· EstablgbmC"lIl Di.scb.iOrg1ftg SoE-WI"Sf: I., F.l~$ Of 2S,0\l{1 Gl.llon~ Or Q:..aliT)· Eqo..;hll'nll or ~~oi~t Pn
tJIIy As I:>t-UrEflil!~ By Meltrtd Willttr U'lOKe And S;;Jwplilli:
C{ltkc'.',o"il S),sleFJ O?Cr.llic.n. M .. inte-rJa".;:e. ·';;1d lnfi\tF,t"I[11l lr.rJo,"" SU ~ lCpIJ pel rnllli<:'[l ¥JEI,,!i'
(~1).!!6 pC"1" IOO~ubic r~-:-I ofm:::ered ·,>,·ale-f.)
$Si{).O(J ~ millio<l gall<)n~ (SO.~" p-:r IGO CLJbt, f~l ofJlwe<e"d W.ll,u)
S 192.I)1"J
$ 4l0.00
2,5~9.00
512,0;8.00
pe-f 1000 pounds creon
pe-r IDOOpound5.ofSS
per 1~}OpounJ..sofNf13
~r lOij!J po1..J1ds. ()!l.) ... ic~
COlI!pI.rUo1l WiOJ SlirrollAdi.nii COlI!.mtllt~~
MOIlttlty Ra\ft Eff«t.iuJu,t)·I,I994
Rc.,i<I.eotial
RetaiFCom..""nm;: ia.J
Scuta: C'If)! of Palo AIIO
(/) RaJeJ ejfo4'm"esince Jllly J, 1993
Palo ,,1:0 (lj
S 13,89lmonth
5 2.80.'Ccr
A~trlllC" of
S.lTOud.ielC
COfII •• aIDes
J.1y I, 1994 (l)
S 14.2:5 imooth
S 1.&6/Ccf
m .... wrug, represe.nwi by fhi. dries of Menlo Parle. Redwi(J()(/ City and }.{oJ,WQ", Vjf')l'.
\
l
, ___ II
S&.:y DOC [~f9~2%O.OIj11 CRQ DA.lED ~~ O~ 9-1
THE STOR111 DRAINAGE A"'D SURFACE WATER liTlLlTY
The City of Paio Alto created by Ordir..an.cC' a Storm and Surfa.::.e \\.'ater Ma.'l3gemem
Enterprise and Utility on t.:ovember 6, 1989. On November 27, 1989 !ht;' Coun,il appro\'ed a
method (I)r calculating s:tOrTn dralnag: fees and established a utility nte s~h-eduk for the
elltefl)nse to be eflec;;:tive January 1. 1m, Stann dnlinage fees. were wllectcd for the first time
v.ith the City's Februar) I Q90 utility bill.
The purpose of lhis utility is 10 c;;:onstruct and mainlain stNm drniMgc improvements on a
Cit)'· ...... ide basas 1be City is respon.sible for all drainage fzcilities in the street.md the public
right of way im_'luding (.'llihs and gulters, catch basins, pipelines and purr,p stations. These
fac!litie~ ~Cll~l S\{1nll water and convey it to the Santa Ci<lfil Valley "Vater District's "ystem of
m.:jor .::harollels a.'ld cf:."eks v.ithin rhr City. The CiTy has de:ermined Ihill much \)f it::> collectiol1
s:,5,.:m is. incornpiele. undc:r:>t1.eo, 0, in need of l"cp>lirheplacement, Afte-r comiricring a number
uf ::tl~l!mat;.\e i'u~ding solutions to correct th::se problems. the ell.'/ conclucted l,nat the mos!
';rpropri.a~e melh·xJ v.as tb:'lc\'yillg ofa P1(mlh!y Storm Drainz.gt' Fee computed on !he h~-5is of
1n(' u,~ mad,' (JL a_nd the need for, and tile service provided by thr storm drainage facilities ofl.ht.'
(-it)'. F.;-es t~)r ~i!1gk-famil)' and duple,.: lesidential propcrtits are a tixed amoun1 Jnd are ba:5~d
("I!J thf.' R;;.o;;umptlOn that these iypeS of property have 3..'1 a\'cr~e impen'ious area of 2.500 '-l{uare
feet. Fees for muliHamily residential. commerclal, and industri:al properties are proportionai 10
the Single-family re-sidenlial rate, but are based 01] the actual amOU.ilt of impervious area on the
propert~'. RevP'nue from the Storm Dr4inage Fee for FY 1992·93 was S L60 L()OO and for
FY199)-9~ it was $l,610,000.
C,pib1j jmpmnmtot Pmuam Summ,ry
The City completed S5 rnlliion in capital ex?!odirures for the storm drair.age system fi.n
liscal years 1991-92 through 1993-94. The work was funded with il combination of Bond
proceed:; and Stonn Drainage Fee revenue, The projocts included the condition assessment and
master plan studies, storm drain pipeline ccnstructioo, pump station telemetry improvements.
curb a.'ld gwter replacement, and funding for the Santa Clara VaJlty Nonpoint Suurce Pollution
Control Program.
statrtw identifted '9.1 million in proposed stonn drain capital impnJ\'ernent~ fC'lr fiS<..:al
ytars: 1994·95 throug.; 1996-97, The projects to be fUnded are !ocated throughout th~ Cil), and
include pump station improvements, storm drain pipeline construction,
replacementirehabiiito:..tion of existing dl!terioraled pipelines:, curb and gutter replacement, and
erosion control projects. These proposed improvements are described in detail herein, See
"THE 1995 PROJECT l1 herein. The Cit)' intends to use the 1995 Series A Hond proc!!t:ds as a
n~earlS of tinam'ing these improvements. Storm Drainage Fee revenue:. are sutllcil!nt 10 pay for
maimeU3..'l(.":e and ope.ating expenses of the utility and ,~") provide an increment of additional
revenue 10 (:over debt ser.-'ice payments re:3ulting from past al1d proposed bond issues.
M'.'cn-nt DiKR"iQU o( 9p(ratiop ,
\\ben the Storm a.'ld Surface Water ~Ianagement Utility wa..<; ..::realed in 1989. the City
staled that [he storm drainage fet' .... ould no! be inl'Tc3SC'd for a period of al least three )"eatS.
pe."'lding comp!etiC'rn. ('If 1M storm d:ain condition assessment and master plan stJdics, These
m;mLiy compieted ,mJdie-s !tt(lnJ,mmd .!l S60 mi!lion. 30-Yea! r:apitaJ imrrov.ement progld1T1 to
~r or replace d.:terion!ed portions of the exi~1ing storm drain system and to augment the
(':\isUr-i s)'S"lm'l '.IoiletT: it doe-s not M\'e sufJk:ienl capa<it)' 10 serve its drainage area The City
Council has aprro\'ed tM tirs1 three years d the imprnvement prognuTl. totaling $9, I million. A
31~~ increase in the Storm DTainage Fee was adopted by the Cit)' effe-cti\'e July I. 1m to
suppurt the cost of these Intpro.,-emcnts. FCor h.tef phases of the storm drain capital improvement
pn:.,"g'fam.ilie City \lrrill augmeol p.a)'·iJj~~OU-~o '4ith additional dent iirumcing as required.
n~ fc'~iL".,~ng labk <.1",i1',),O 3 t1h··~(,J.1 h~$t(Jnc~1 and li\'e ye':U rroje,;ted record of
"i:!:\!~n:~ resi":!c~\jJ.i ~1!',,, ! FRt.·,1" in I.: ... ,;' C,i) r\~l,) :\l(o i~ \'irtu.a.Hy built out and no gr(I"'1h in
[~t,"5 I.\. r~"'l,i'!C'.d
TABU_ll
(IT"!' PF P,':'.LO.-H TO -';lOR,o"j DRrt.I'.-\GE Lfll.Il)"
HlsrORlc-n l~~I1S
r"",J QiI.;I;tir~
Year (ERl'") ----. ------
'.>(1 ·CU;j~ ,"", ~1>6.1S
1991 41,6)3
I~J "~,6J:5 , .... 42,635
1995 ~1,635
'9% 42,633 ,.,) "2,63~
19<j1! 42,635
Jm 42,635
·5)·
----' .... _--_ ..... _'.,. -
•
The rates charged for the Storm [)raj r.age U til i f! an." b i I kd to custome-rs as a &:paralC 1 i ne
item on the common utiiit)' bill SC1lt for the fees and <harges of all of the uulitle:s, of the
EnteTprise. 1be comrnon utility bill has a one--moI"H!1 r.dling cycl:.
Rales Effecti,eJuly L 19'14
1"'1 E<{:J'~';':~''1' ,or,,!},:,-:',;;.' (1",: {;~RII " [~'" ~"!'" -, ~;-:_:~"": "/ .':,,-,~ .lr~· II,:,,::, I:,' !
r.'ji.J.;r.!.i~ c-",J r.,l/'",..,"t'J ;j,;n:"":;' ,":." ',-,n t ': , ,,;,.',.,..; -.' ", _ "~i :~, :,', • ~ -, ';'-, :' ,,_" .i, ,-,:J I t:,~,I, ) .F') c,~ L
f;x Palo AtE' crJ 'JFe (c~"." k,c" J,. , ;..~~., ,;'1 ,T," ... , ~":>. T"
,0..,1'1'02 ER.{ .. '; (,:'mr~ 'id I') r,~. r:.;', ... ',n ! ,.' '.I E.~~ l' .. .',' -: { : r..,""
l-:~L.:....:..J..1"';..J..~ILJ ",',,;r,
-58-
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.•
APPROVAL OF LEGAL PROCEEDINGS
The legaiity of the sale, C'x.el.'utiar. and deli\"ery of the 1995 Series A Bend:; I .... 5ubjec; w
the approval of Jones Hall Hili and White San FranciSl.'o. California. a<;tmg as Bond (~ounse\
Bend Co"u..nsel has not undertaken any responsibility forthr accuracy. cnrnplt"te'nt;!"S.s. N fJm:e-ss l.f
this Offidal Sl3.1emenl. A fonn of 5u<;h legal orinion is atta~'hcd hereto ilS. ArreTlci\: f:
ABSENCE or LlTlGA TlO:-;
At the time of deli veT)' of and payment for the 1 '195 Series A Bo [1<.1:;., the Cit) \\ i II ("coni f)
that thcre is nQ action., suit, proceeding, inquiry or inye-sti~ation. at law or m equity. bc'fc,rc or by
any CI)UM, regulatory agency, public board (Jr body, peMing m. to the k.n::m !Nge of L~e C'l~.
threatened against the City affecting the exis\enct of the City c. U\C-li.l\CS (If its (\!ft.;~r; 1(1 (t\c!r
r~spective offices 01 ~kjng to restrain or to enjoin Ihe sale cr deli,elY l:of If)" 19Q~ Sene~ ,\
Bonds, the ?,pptication oft.~e proceeds. therrofin '3l.:COn81'1Ce \.\""ith the-IndelYtun:. \"7 tnt' ..-::,)\j~':ll,··r,
or application of an)' Nft Rt'venues. piovided far the paym('111 ('1' t}:,~ 19')5 Scri(!~ A Hilr;ds-, fiT in
any way contesting or affecting the \'o.Edit;., or enfofc.:tlbilit\, '.If the I 'N5-Serl"_' .-\ BLlr,js-, lh('
IncientLtre, any a(:tinn (,f the City crmtemplated b:. any oi"t:hF. ~~id d,-'-cuml,;r1ts, Of [fe;:' (oJiie\:llcr, Clr
application Ora-flY revenueS pw\,jded for the pa~'men! I..)~·'he-It)9S S~·riC'~ . ..\. Our.os. ','1 iii ...:.Jl~. ',\.1:
,;oJl1csting the ,'ornple1eness t)f accura.;:j' or lhi~ OHici2.i S'..,"!;em,:nt \.Jr :;...r.\' .lJn~nJrr.,,:,-,: ('(
:)~pplem(::11 tbe~elO, or con!csttrlg tht; po ..... ers of the City Of it'S dll1h0nly \\1111 re,pe-cl !O tJ::? l4QS
Series A Bonds or any action of the City conlt'rnptah·J by ;:1)1), of ::>aId d()"';l!.nlCr.tS. 'Illr II) lr:e
knowledge of the City. is there an)' basis therefoL
TAXMAlTERS
In the opinion of Jones Hall Hill & \\.'hite, A Profe'>~lOrl2j L.:l.\\ CI..)f'P'-"")r.!~:(1n, S;:Ui
Francisco. California. Bond Counsel. subject, however 10 the' qUlliflcation'S ::;et forth t.::l .. )w.
under existing law, the interest on the Bonds is exciuded from gross. income tor federal in.:ome
tax purposes a.nd such inlerest i:i no! an item of tax preference for purpo~:s of 1M fedeTal
alttnutivc minimum ta'\ imposed on individuals and corporations. pnwided. howeYer. tha1, fo.
the purpose of computing the alternative JTlinimmn tu imposed on corporali'Jn5 (as defined fo.
federal ir..come tax purposes), sl,lCh interest is taken into ~unl in determining ~'ertain income
and earnings.
The opinions set forth in the preceding paragraph are subject 10 the condilion ths.t the Cit~,
comply with all requirements of the lmemai RevenI!C: Code of 19&6 {the "Cod,c") that mfJ.St \'>.!
satisfied subsequent to the issuance of the Bonds in order that such interest be, or continue to be.
excludeci from gross im:;ome for federal income tax purposes. The City has covenanted to
comply v.ith each such requirement, Failure to comply \Ioith (.':erUin of such requiremenlS may
cause the inclusion of sucb inlerest in gross income for feder.al income ta\ purposes IG be
retTo&.Ctl\lc:o the date of issuance of the Bonds.
In the furth<:f Q?1nion of Bond Counsel. ~n.terest on the Bonds. is ex<;!rnpt from Catit~Hnia
personal income taxes.
-59-
..
i
. I
i
!
I
I
I
>1
i
I
I
l
i"
•
l
--.
...
.~ ---.... --,~
S&Y IX)\: [SHI4?!lU{l,0Q2J CRQ DAHU t2 O~ 9~
CN.ners Of the Bonds should also be aware that the ownership or disposition of. OT the
accrual or receipt of intereS'l: on, L,e Bonds may h~ve federal or state ta,." consequences other than
as de-.:.cribed abovC'. Bond Counsel e~(pres:ses no opinion regarding My federal or stale tax
C{\nsequences arising ~itb respect to the Bonds other than as expressly described above,
RATING
Moody's [nvcstors Service. Inc. ("Moody's") and Standard & Poor's Corporation ("S&P")
have giYen the 1995 Series A Bonds the rating of" ___ ~ ____ " and " ____ ." f'C'spective!y.
The ratings reflect only the view of sl.lch orgeniza1ions and an explanation of the
signitk-ance of 'Such raTings may be obtained from Ih.em as follows: Moody's rove-stors Service.
In.;; .. 99 ChW"ch Street, Nc\'I,' York, N('w York 10007, or Standard & Poor'., Corporation. 25
Bru.:dwBY, New York. New York 10004, There is. n() assurance Ihallhe ratings will c·urltinue f()r
an> giv:::,n period of time or th.ll they ..... ill riot be revis.ed dO\'rTlward or withdrn\.m cntlfdy b:,' the
racing agencies, if In the judgment of such r.lting agencies. circumsr.ances. $0 warrant A.n:, such
do\\'nward n:vision or ',vithdrdwal of such. r,J.t.ing~ m<l)" have an a.:h-~r$e dTect on tht markt'l pri{:~
of the 1995 Serii.·s A Bonds,
LEGAL OPINION
Jcn.:s Hall Hill & Wrote, A PrcfessienJl Law Corporation, San F~anciS('"o, Califomi~. \".ill
rende-I" ar, opinion Voit.1 respe-t:t to the validity ofthc 1995 Series A Bonds in s.ubstantially !he
form set forth in i'\ppendix E h:reto.
CLOSING DOCUMENTS
[n addition to the opinion of Bond Counsel, the City wlU, at the time of deliver)' of the
1995 Smes A Bonds. furnish the purchaser with the follov.,ing documents, sig.ned. by a
responsible officer of the City, and dated. as of the ~tc of delivery:
I. Arbitrage Certifieate .~ A <:ertificate cf an appropriate offi<;:er Df the City
certifYing that. em the basi:; of facts, estimates and circumstances in effect at the lime of delivery
(lfthe 1995 Series A Bonds. it is not expected tha! the proceeds of the 19'95 Scr-ies A Bonds will
be used in a Olanner that \'will cause the 1995 Series A Bonds to be arbitrage bonds.
2. No Litigation Certificate - A certificate of an appropriate otlicer of the Cit)'
certifying that there is no litigation pending or, to the best of such officer's kI10'''w'lwge, threatened
agrunst the City affecting the validity of the 1995 Sene$ A Bonds.
-60-
/' :"..
3. SipatuN Ctrtifi('tltes .• A certWcate of appropriate offtcers of the City
indicating that they ha',e signed the 1995 Serie~ A Bonds by manua.l at facsimile signature and
thal t.hcj' wett:: duly authoriz.ed. to ('xe-cute the same,
4. Trust~e'5 :and Dir1'Ctor of "ioance's; R~tipts .~ The receipts of the Trustee and
the City"s Dirc<:tm of ftoance of the Cit), sho\\ing that the purcha~e pri2t: of the 1995 Series A
B<mds.. indlldir-..g sccrued interest to the date of delj-..·ery. if any, has been received by the City
and ~ T rusfe:e. respe.:ti vely.
5 Crrrific.tC' CODccming Official Statemtnt - A certificate of all appropriat~
Ql1icc:r of tilt CI[)'. acting in slJch person's offa:ial and not personaJ capacity. to the effect that at
Ute time of the: sale (If the 1995 Series A Boltds and at all rimes ~ubseq\lent thereto '.lp to and
inc:luding the [irm: of deJi\·er:~· (If the [995 Series A Bonds. me Official Statcmcn! relating 10 t..'1e
&"'1ds did rw[ ,ontain In)' untrue stalement of a malC'riaJ fact or omil to stAte a material fa;;1
ne..;o:.~-s..u)· ~(\ make the Sl.1.temellts therei\\, in light (If the ~ircums.ta. ... c;~s. l.md~r .... hich they .... ere
maJe. n;)~ ~nL'i!t;'aJing
MISCELLANEOUS
The m31erial (.ontained in (hi, OffkiaJ Siaternent was prepared by Stor . .: 8.: Y0ungbe'rg as
financtng C~,r;s.ulWlt to and W'ider cm1~t -.;.,;jth \he City. The fmandng c(lnsuhant \"il', recei'\'c
,ompertSZ-tio:l fr.-J'r1l Lie C it)" contingent upon the sak.and ddivery (If the 1995 Series A nand:;
The 1995 Scrie:!! A Bonds may be offered and sold to certain dealers and others ~t prices
k.wer lWl th~ off!ri~ prices ~"tateO 0:1'\ the c.()"er page-("If uris Ofl1cial Statement The offering
pricC'S may be changed from time to time
Addj;jQMllpfQnn®QQ
All information cootained in this Official Statement pertaining to th.e City, and the
Enterprise Gas been furnished by the Cit)', and the execution and delivery of this Offlcial
Statement h.'\ve been duly authorized h)' the City.
All quotations from and summaries and exptar.ations of the indenture and other statutes
and documents contained herein do not purport to be complete. and reference is made to such
cocumen[s. lndenture and statutes for full and ,ompJete statements uftheir provisions.
Thi-s OtTlciaJ Statement is submitted only in 'OMccEion '.~ith the .c-alc of the 1995 St'ries A
Bond!: by the City. All estllnales, assumptions:, s.!atistical informillion and olher statements
contained herein, while takt"n from S{)un;c'i comid-ered re!iable, are not guaranteed by Ihe CiLy
-61-
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The inform.ation contained bere-in should noi 'be cot1.."trued as rrpresenLing all (:ondition.5 .... ffeeling L"" Cit), or ~ 1995 &lies,~ &",d o
Cl rY OF PALO ALTO
B~ "L ___________ _
Mayor
APPENDIX A
SUMMARY Of THf: PRINCIPAt LEGAL [)Oct'''D"S
A·I
" ..
APPENDIX B
CITY FINANCES
CITY OF PALO ALTO
Total OtM tc A.sst:sHd V.llile"
Total Dc-b! PtrC:IIpttl
Tto ¥tar Hilt()!')' Ph" Fin Ytar FQre..-&sl
{in tlilouWlo ds of dolll rs)
(I) '" (;flIfnl """, ..
ffi,\~lioli .. ,," P)
\
f:u.1 Bollded Cllprt..1
y", P-o-palltiol:_ "''' ,...,. ""', C.,,,tiICC III ' Tctli ""', Do.,
4/. Dt-bl til ., """"
"lIhlt
r?tJi~1
PH C_j:i-DI
I ~~5 5(\.100 3JL~~,r<,77
.lJt5,M9
-t,M,U4-5
5,162,$25
LH<i}Sl
5,86-1.(i{,:
6,~D1.'Yi3
f,,?H,,4'N
1,+43,6M
U9~,I)1
22,079-.l...li'" 5:52.,1):1 Pi'> ~<~ I ," _'i.I ~;
i93:<; jr'JJ!OO 21.771 h;...II~ 1%.%11 n~, I ~~
"'
,n ,,1.l
in, ~6,6i)(f Zl,~1j9 1(,,2;,'01\ :(&,6.'4-20,-;-:9 < I I , I""~
InR: ~,s,9('';j ~{,1,6il 15,~~-I Zi:19,m;: }·O.lJO , :r.-1,1 ~"
l 5oS~' ~.s,9i~1 19,616 It·H(' 21~~,~S: 2~ I. ~ 1.11( I q U.:
1m S7A(li.! 'bJ,) }.! j.p97 ~!td"~ 2~ i ,ll~ I ,J .l;-
l'i9l 55,9{J(1 I ~,1)-i6 I·Lli;,1 .11 ~ ,I) 7-1 ~,~5X'> ., -'~ .. ,
I'rn ~':> )30 ~1).6,:,j i6,~8;·· I ~(), IS9 18i.4'~ , ~C' , EO,
1~3 5UOO 1 ~.J,ll 15,1..:5 1%,1'>73 :!,1l, ~-4':J , , I j,,:I.,!~
1<9' 58,100 2(i . .s?l~ 1l.695 19';.[ti~ ~2' ,6~:S ,. ,,:'1 ::,~ 1 ~
(l) Go!rwrul Ohligr.ritH'I EcrolkJ Deb'II1I,.'('f.'.der G~r!e'ral Ohli~"li()I1I:()r..h ~~"I.!,ra! A,I.''';r''l,'1'iI fltl,I, c.m~/?('Ir.:,( of
hUW:ipa1IGrl, OA-ICa,.l)itc;f ua;e OMigmil)N.
OJ CONmger.! Debl is Palo A(IO~' ~io" ojNCPA's debl fO#' C(l/;,n'ems Hydro f',,,,Wt!r and (}eOlN"fJW1 Pm/u'/
and T.4NCs !,Cl1Stni.s.Jjon/acifilieJ . .-e'.'tfTUe anticipatiM rale:> In J98{ IN Ci/?>' roM 61$% ofll! !lwre of
Gellthermal proja·llo TIU/ad. '",galie,,, DiSD'ja TUT/oct i:i ' .. sjXJfUj'ble fN' 1M debt U,..'lce oMlgalh,,, re!a/I:d
/0 I~ prOJect, .4uo in 1m, the Cit')' sold 6.52% of ilJ Calaveras lIydmefe;;(T,'c PrGj«t '0 Or, nf 8.cs?l'i!i'e /iV'
Q pericd of J4 ye41'S. In return Rcst'ViIle ",iIi pc1}' il5 6.5;% J~e 0/ lhe Ikbl Jt'n'IC~ obligaJ/i»1 Arxordmgl .. ,
the City i.s flabu/& jX/)'J'I't-nIcjtheJe<kbl servi-cc ~"IS only IfTw-lod a:IId ROfe'l,jlle riefauJl
Sv.u-ce: City oj Palo Aita
8·1
" c
" ~, :
~,',
':','
.'
11
~ 'I
,1 ~
i
~ !
f
"-;.
S&y DOC (SF~n900,()Ol;CR'() DAll='D 1;"(15,'?"
CITY OF PALO ALTO
Ralk:· tor Geat-r .. r Bcm~td Debt to MW'is.td Valur til" Nef &fIded Dt-bt Per Capita
wi Tt'rl r~J '(ear5
{ill tbOllsands (d clolla r5)
Gt1It'1'I1 (I) Puent of
Oblig.tioll BoIXIC'd Debt tl) Bondifd J>e.br
Fisalliar PopdItlolt A.ues:ted \'l1Ilut' &.adN DdJI h~V.hle Per Capill -------
191r;/10 ~5,.;!25 S 533,593 $6,863 1.18 $.12
19W:!.I1 55,000 :2 ,402.4!17 6,On '5 "
1981,,!j] 5.-:'.300 ::!.'763,261 14.036 ,51 .25
19S::"S.1 55,91)0 J.! 66,22& 19.094 ;0 3'
19,5:; g~ 56.100 },..\51,2~ ! li,16O 50 1 !
19~ ~5 .I-&,2C~J 3.5:55.871 21.0';") 5' 19
1 '185 ~6 S6,S{~J ~,515.649 21,','n ,~ 3·1
191:6,,37 56,60.,) ~,84-1.14S 21,869 45 J'
19H58 56,~),') 5,161,62.5 2D,671 .4(1 36
19!1&'~9 56,950 S.J39,$81 19,616 J1 "
19P:9,':'{l 51.400 .5,364,061 21)..'3-1 ,3l 3l
199(l.~1 ~5,900 6.S01.9'J3. !9,04~ .H 34
1991/92 56,J30 6.949,4:?9 20.605 )(1 ,37
1992,93 57,300 7,443,618 19,3JI ,26 ,]4
1993,'94 58,100 7,$92,BI 20,&88 28 ,3,
(I) GentTaJ Obligatic'/1 80f1ded Debt inc:llI:kr: GeN!f'aJ OhligaJil)(t 1Jo"-tlr. SpeCial ASSl'SJIl'Ie>ni Debl, Cerllfir:ale~
of Panicip<:ni:.Hl, aN! c~ Lca!.~ Ohfigali(J;u
8-2
.~--
'I
i
!
·.
em' Of PALO "LTO
SCU£Ol:L[ or DIRECT ,"~D O\,[RL\PPING DEBT
J'IH 3(.1.19'14
Sana. Cl.v;a ('()o.!1ll) b1Ilidmt AI~I~
s.u CIa:"a c~ flc<.d CQf'l~1 md ~:~ Coosm. .. !:OO Di$tr~{t. Zor~e W·[
F,,(I..1U!i Comml.r.~ CoIlqe: DistrK1 Cmltlcilln of F"mi,ip.;.!irm
C~_mo i..:r:m Sc.~l Dtnri<~ C~fiu:ln {If P1atki~llor.:
'4l):~ Soc.."woi ~~~
~,i"~ \':<'o\-Los ".~ l'l'llOfl Hig!l SdKvl Di:i01C! ('tTtlfiCa!~5 Ilf P=!".,icip1it!oli
Cr.~-of yak> A~:{) (~CT".aJ fur,.j 1)t<11g;'"!IQM
C~ry of Yt.k Atlo Sj."<1:t.!!i ,1,S-<..t"!..'>rr,e1";', B01" • .i:.
\il~;.." ..... :l Re-gh."V1;aJ P'1rl... D,;tr.,"t ~-.J c .. ,,:r;c,!!t', c,f Fm,;;,,~!i("
,~U C:.l'" .... i':t:, 'r. Z.tr D, ,,;":,i ((iT,n,a:t\ c'!-PS:1:~ ic,,:;~'1,
F! C'.'""'I"':' H'"I, :2: n:r.'T::\.J.·~:_';',,;'~:~
/. .... -:....k.' l,-~~~'l .'\.;/;.,,:,! 1i'.;S;O P"",'!;"h' ..-'~'-!il~'-,' '0\
~~ Applicable --------
7,5JS~~
0.501
21.177
0,002
5.284
IAS2
100.000
rrr:).ooo
Il.W7
7 .... i ~
(U'Ji~6
Debt is).o '94
S11.9IJ.408
IO}.'flO
1'i.9}1A99
.186
I 57Ato1
81.468
I 1.-197,800 (i)
>}.l9Q,OOO
i;U36,136
353&
S6CI 'Sf6.?>"j..J (2)
),5}S
F_~<::,,~_. r.::r ,-."-.:1 1'\-.,','71-><:' :"'7'::';-.. I!,-n n.'!~j ~c.,.'r.u.' f"" -n,"'~I>' 1,-. "m':e' r,D;" J;IQ<~<Jli,1'lI'ond.'. n(m,,~()nd,,'d
~'·.l;>: :~,,' !~;u,: c,~:"g;1r, Cll"'" ..... ,-,,-.1 .""" a, ,,,,-i.
D:~~'::l [\o;=-i (S! 1,":9'/,SCl(~1
T et...:;', '~;';o);.., f}c'N
'-"'Ji !'-:("1. L\tb!:
[I 1-<;',
{I 8()",
OW.
sT .... n, SCHO...")L Bl!ILD~G AID RlP."YA8lE AS OF 6'30'41 M'ill
B·)
•
APP[:-;OIX C
GEJIo'ERAL A1IID ECONO,"IC li\"fOI!:I!AT!O;o.' 0' THE ern' "'D TilE ARIA
Geutral
1l\( City of Palo Alto is locaied 'IJ."rw,,-lma.tely ~) rnii("-5 ~'('o\J!h c,f San I ra!\,,-isco in Santa
Clara C'OUDt)'. Th( City COyers approximately :::6 sqt.:.1re mii¢s and 1:' t'<mi~r('d b~ .. Los Altos 011
the south. MtrJo Park on ~ ~"C"s"l a:1d E.i...or;( Palo Alto on UK' ea.~, to the north is the S<Lrl
Francisco Bay.
The: City of Palo Alto was lrx:orp,JrJlc:d in 1 &4-: ar.d Or-erale-5 !l..:S il cl'ui1a .:i!:., h..J\'ing h.1d
its firs~ cha.'1('T gT3J1ted by the St.l.!e ot Calif'lfni ... in t'XJ4 Th~ nin(" (ou-r.';llme-m!x-rs 3ft." el:xted
at J.1Jge for st~gg~d (0\Jr·y~ar terms rhe ~.f3 .... ,-'r JnJ \':cc-\1J~ .'T ,-~_rt ,-,kcted ;>.ru~\.lll.!llhe tlT'I1
',",Imdl meeling in Januu;. The-eft) :".!Jr.J.e.('· I:. r,,,sj",,'m-LJ...I'! t~""\r tr." '_'~"::LJ.IILln (Ii .:::.ll rYllJ.:li .. -ir31
fI.l!i{':liNi5 c~cerl the offices-d (fty :\t~,_','Tc:,. ('i~, Cl~r~ .;.;'J e'f: :\Ucl;:.::r 11-.c:-:": ,',1'fIC"-::1;'; 3ft:
apf/)imed b)' ,,_nd rtp,")r\ c.llre,:'tl~ ll~' th: City C.'J.l]..:i!
POPUliltiQI1
The'r~ a.re appr,=,xirrlalci;. 5~U(Xl r«lplo: Ji',"i,,£ in P':'!<.l ,J.rl'~ . .:J.n,j "t-..1Ul 1 i.700 cr. th<!
Stanford Uni\'t'nil)' Campus P?JO Al!o'$ popwlalwll ha.s 111';"I·t';i~.j 3.7')'(; ~in(;t 1980. Tr:e
fo!lo\-\wg tAble sets rOM po~u!a.tion stali.~ics for the-en;.-and Ute' C G,.: . ..tH)' of (,;,a.."Ul C1.?...f3
Yar
19s() II)
(981
:912
,913
,91<
,91'
1916
19!7
}988
1~89
1990 (1)
1\'9 !
1992
1993
i09-l
Su .. ne Stat.: [;..epar:rr.~nt tjf FH'..:lntX
{J,! CenrztS lXu<J
roPl~u.no~ f.SII\1.ATf_~
£ann Y(":If Histol;!
foptlbltiott
~A~----s..ta Cbfli c..,..t~
;_~.22~ 1,]95,071
;5,000 U08,5{},)
55,300 1,n~,~OO
55,900 t,W,'fj()
>6.100 :.36U~1D
j'.200 1,37&:1"00
16,1OO 1.-40UOO
56,6{;O j ,401 .... ~~)
%,9I)J 1,·.01,600
56,9:-0 1,440,9(;..}
55,nl 1,~9:"5i7
~5, 9(l(} I. <.ryq. ?t)o
5/U3(! I.5J7.7Cr<J
~UC-9 I ,56],!!!)')
St,l (,,) 1. ~ S',' ,8(')
C-I
Penon.1 ] DCOIllt
Total personal im:(Jm: in the Counry increased by ),~'~ bct\\cer. 1986 and 19')l.
representing an a't~rage annual compound growth rate of ~,"8%, Per capita per~of'.al income in
the County .sre\.\' by 27% during thi:; lime. representing an 3\crage artllu.al cnmp-..)ltnd gro\.nh ~")f
4.5%,
Yt.u
i9~O
1987
1988
1989
1990
191:;0
!9!1:7
[9~8
198(j
,row
i99"
1991·
PERSON.o\.L INCOME
SA-NT A-CL.o\RA COUN'fY
(milJtcilU)
$29,0530
JI1, '~8 -l
3.0,3')1.3
H,';!}).]·
31.~9~ .3
:9'.011.1
PER CAPITA INCOME (I)
~~uC~~_~~~ Clhrj}~\ti -----
S10,{OO ~17,09i
11.47J i 1.871
22,810 18,7.f~
2:3,913 19/JOi
25.20 I lO,:5~7
2!>,9~~ 20,805
J i
SJ-l5';)'7
I~.OH
!{i,f.i 15
17,o:)QoJ
1!.OJ5
19m]
0) P/!r cqpjJQ penontJl income )oW comPUled lUiItg Census BlV'tali Midyear ~r&fl ':-'I~<!! J r;s]+.,~ un
revfJ.eJ as of JQII.JIQIj' 1992 /0 rq1px( 1980 tJnd lWO ('o"lUkS pqN/Ulion CO~1 flw C.'NIL! Bwua;". (";'.l.IfJ0
POpWgJlOfI e.."~fCl' 1991 ~"e been adjldle4 by (he BJl..N?aw of [.,:or.iYl'll-: A~:U.ni.: IV &: ~'OI'\j',~t<'1:1 "1:..1 /.':.
CCtm4S Bvremt state popuJ/JIrOfJ I!rli!fl4les 'l!feased il1 J/HtJIQ'J' 1Y9)
•
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~
.----------_._--.~ , ..
Employmcal
The City of Palo Alto is pan of the
encompasses all of Santa Cl8lil County.
unemplo)ment .!itatistiCS for the COUf''Jty.
Sat! Jose Metropolita."1 S'>atistic.al Area. ~hid ..
The table below ill~trat.:s employmt:nI and
V .. ,
1985
l~U;
\9S1
1\'8'
19&~
Itf-,."'"i)
I q-g!
1992
19'i3
(:IVJLJAN LABOR FORCE, EMPLOVMENT AND UN£MPLOYMEN1'
I 98:s-, I !J93
CMlia~ Leber FOl'(t Eml'k:i-)'IMat
S l2,00(] 164)00 4';,800
797,100 1?">.900 4<5.200
tOl.'Ot\ nQ,ii.iCI :'6AOO
g)!i,700 8()5,500 »,2C~
847,200 ~ I 5,(Y.)(l )2.)00
81 ?,/J-i.,"'o) 7.8-5,:200 J2,.WO
a I.J. ,%0 110,101) .w,SCKt
eH,500 178558 S~,Q"1
SJ8,SOO n2,OOO 56,7r~.1
5,9
" .\_~
4 (I
.1 S
'0
5.5
,-i 7
6.'
The majority of the County'::> employment i~ ill tlll'; m:lItufactunilg and servi(;cs s.eJ.:;lor,
""ith retail trade as the third major category, Tne fotioy,ing lable sets for-.h wage and SJ.lar)
employment by indwtr)' for Santa Clara County.
COUI','" or SANTA
WAG£. AND SALARY EMPLOYMENT BY INDUSTRY
ANNUAL" V[RAGE . 1981 1.0 [9":1',
(ia tboDSallldJ)
'981 .988 '90' .990 !991 ... 2 '903
Agri~'41lturc: 4.7 $,2 , .. ,. , .. '.0 5.0
Mining 0.2 0,2 0.2 0.3 OJ 0.2 02
Conmuc:tioa 22.2 ,Vi lJ.? 34. \ J.O.l 21.1 26_~
Manufac"....u1ng
"""'"' Goodo 235,9 23&.8 2~I.6 2Ji,6 230.6 208.~ 205,0
NOl'I-I>\u'1.tl1.t Goods 26.0 2S,Q 18,1 28,0 nl) 26.4-25.9
Trans-pottaticn a. P\lbtic UtiJitie1 21.5 2li 2U1 22,9 21J 22,2 22.9
rradc:
\\.'hol~ 44.4 Si.3 53.9 53.3 50-2' ·P.::! .. 5...1
RoCtai! 110.0 l15.1 111.1 117,0 114.2 i 10.6 110,9
Finance, fruurance &. Real E$tat-e 3H 32,0 32 .~ 32,S 32,4 31.5 31.0
Services 198.1 211 1 21$.9 2212 219.9 2:2:;.'1 234_1
Go'"'errlmem 16.' 86..$ 86.9 8!'tA 88.9 88,{j 37.i
TJ;:,r,al(1'l 79J_8 ,&23.1. %36...1. 84 '\ ,5 &:22.6 NJ.9 n9·'1
m Columns ma)' 'lQr add 10 lotals due II} ir.depentiJ!llf rournilng.
,5{;1/f'ce: EmpJoYl'rkfm Dt-"f!!Jpmem Depimmenl
C-3
(
SU;pfgnt [lui","iC)"
Stanford University \Ioas established in 1885 by S<::nator aild Mrs. Leland Stanford as a
memorial to their r,on, Leland, Jr. Enrollment for the Fall quarter 1994 was approximalely
14.031 !.iUdenLS. "The University's academic: infllJence has been i:I princiral faclor in mold.ing
community anitude5 and fostering an environment tn which te<:MO!ogy has llourished.
lk-Universit)" employs (lpproxim2:tely lJ 15 faculty members and a staff of 6.940 (nol
indudmg Hospital staff not assodated with the Medical &'hool).
The a.sses.sed. "a1ue of the University 01$ of June 30, tQ89 was. $1,376,877.000. Stanford's:
~.ic ~ open lands arc wllncetponned. but the: O(lo·sh..l.denl hl'usin?" indtLo;trial and
corr..mtTl""i3.l areas are ..... ithin the Cit)' or Palo Alto
P;oio Alto's IT'.:ljQ: indu~tliai em pi oyer,; ;;:re clustl!"red !n the City's three in~u~triai rarb
The !a.r~e·H dthe thr<!e. Stanford [oJI.L:ittia\ P.l.Ik. (;Ic,\"ers 660 ';teres, and. houses. approxima.te 1.)" 11
~e1"'.l!"ils [he r3.!k is J:t'ned fOJ ligr,l. ma.!llJfac'Jring. Sitr;s are leas~d I1;)M Stwford !.."n;\·ers:iiy t~lr
.1 ma:·.irn'.1m io:rrn of 51 YClIS on :l net rent n~~ls. wlt!"! the ter..anlS paying aU !a..xes. a.nd
a:;.~ssmenl.S. Each lenaIll cons,U'U;;,I-s il'\. own builJing. Stanford ~xercis.es sn:hiteclural cl~ntrol,
requiring Ie::s.ees to submit ccmpiete p!an.s lor aprrovai prior 10 t:onstr1Jction.
ll"ie Palu Alto lndustrial Parr. is the City's ~ond largest industrial park. Coveting 90
:J.C!"i:S. the park is aJ.s.O .T .. )no!'d for lighi l"Ils.nufacturing and has about 15 lenants
Bayla.nds Business Pa.rk is the third industrial park; it cO\'ers. 5.2 acres..
Krtaii Trade
Tne twO largest shopping centers in Palo Aha are tM Stanford Shopping Center and the
To~n & COWl:r}' Village. T"hc Stanford. Shopping Center bo\.i.SeS about 90 stores:, \\"h.ich include
Saks Fifo.b A\'enue. Nordstrom, Neiman·Marcus, The Emporiwn, and Macy's Tov.n & Country
ViHagc indud<5 over 100 tenants, primarily speoial<y shops.
The folio~ing tables shows taxahle sales. data for the Cit)" of Palo AJtn smce j 984.
C-4
" '
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" ,
i ,
1
Q~
920
911
'-:0
"J .. ,
~;
~~~
Q.'9
'In
eFTY Of PALO ALTO
T "XABL£ pn~'dITS "1\0 TRA~SACTjO:"liS
1914-1993
iMi(l's)
611,}IJ 2,ti6
6_~US~ 2,9.l.}
{'11 S!V -",(flO
M§,':::~0 3.G65
nll.<;2~ :;, I ~ 1
"~7Al~ 3.1 ~i
::':;tio.3!i! ',01'1
:-I'.,",~ .":.'{.~J
:,u::-:o} ~,CI:')
:y<, 9:': ~'.!).: i
m,g79'
1.1))3,6:19
t ,()::o~,:! i3
1.033.:0:'
I ,V69.::O~4
1, ll'..4.7,J~
U7I,704
IJ~I~,676
I ,2S :.236
l.':::_'n.J~~
8ui!ding rcrmiLs. ISSUe-d b) l}lC Cil:. ~1\'~; J1~ P:·,SI fl\c n;.a;s ar<: \.tlud at mOT!: than S60{)
million ,\ summary b, indi\·idu.aJ ;. e~ is J;fe\e'me-d beln ...
TO'..a.I
,...,
S J9,1(1~
74J39
~ 1l),$4-I
nn' U~: P.I,lQ .'LTG
8nUll~·G prR~IT ,",Hl!ATlO.'IOS
ISOOO)
fi. .. r YC::III~ tfl"' tllnAllt I99J
, ... , .... ''''''
$.401.'70 s.n.n-t S 4{;,608
~.220 6S.::Ooq 1D.Q -----
S97,0Q0 SlL:!.S·43 SI2:;.9~9
~.~_,_,,_, __ :.:'''~l=-19'93
S)~.os' S 34,94' S 4O,!1J
il2.3112 89,i'':5 S2,386 --------
5116,-139 $124,6-86 Sl23.1~S:
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I
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·.~.
In 1993, the City had approximately 26.000 housIng umls, 3!l increase \.If 2.::50 0\'er
1980 Rentals for one and t"VI-'O bedroom apartments and du::d~x('"'i range ~tv .. 'een 550\.,\..1.600 'PCr
month. Rentals for 'tVI-o and three t-e<iroom bomes ~ln at S t .500 ~i m0r.th. Sale prices of
homes rd.l11!W from S2S0,OOO 10 S~.5 million depending on the age. size. concii!i{ln ;u'lJ lo-.:a:i(1fl c·t
the home. Tht'fC' are-ei~t primaI)' suburban a.l'C.35 "~thl!l flye miles (·f Pal~l A11{), wii:h home
prices vilI)'ing fr.:Im a'oout 5250.000 to 54 millfon or more'
High"":!)' 101. also kno~n as the' Sa)snore Fret'wa~·. and rnlcrs~1L 280 or r.1C Jw.nipero
Sem F~way, connect Palo Alto b San FrJ.rKi~,-) ir. the ~"Grth aJ1.j SJ.!'I ),15(, It) l.hc -S'~L.:th
San Jo~e MU .. i1icip,1.l Airport is. k"-'J.~ed J.,1)Jf('\irnd1t'h" I" "Ilk ... tf"':Tl [\.1,,) · ... 1(( .. , .'\.:!1I',::Jl
and re~io)1a: aH servi;.c is pw\ldc.ci fpf P.1.'-<;<:lga~ J .. rd rre:~:"jl \"1:_ ~',.:r::;1 .:t';:'r,," fh<;' Cit~ L::
about 20 miit;::; ITOr."l S",n FraJl',:i.'co Inlc:,,;uj{il;J:; .-\5fr":'rl Tf'e S2.-!D { I.~"" ,',';,ri: A:n-·.·rt !ft
Palo Aito s.~r\'ice-$ general.l\,!ati\ln .1in:r-att
The Peninsula Corridor 30int Pu\.\-:rs. B"':J.T,; p(1 .. ije.~ ~,\r;ur'!;t';i H.l!'l ,~<;'r,i,e !u ~<m
Francis(.o and Siiill Jose from Palo :\!\o Additil1rol r:.i! p.:l.;;;'e'n~¢r ~r .. iL·'! I.; .jyaLU:'~.: ihr""Ut"!h
A\fTRAK, whkh has.1 lermil"..ai in San Jose
The Sam~ Clara County Trar;.sit Di..,tnct prOi ides !veal bus ~r\'i.;e in .;;r,j o..!\llmJ ,he City.
T[1(.' San Mateo County Tr-,ltl.s.it District (SA~nRAI\S) rr;~ddes :).t"r> i~e het',~een Pa!,) ,\1:.) .:l.r.d
:Sail Flam:i~c(l,
Deep'n'ater transportation is available at the Pon of Red\.l,DOd City. ::.i\ mile~ l'lor1h Pons
at San Francis.co mod Oakland are well equipped to handle' all t)p:-s of CO.l$tal ar;j l,,:,:er.s.e-a.-:; cargo
All three ports are conveniently accessible by frttwa)' from Palo Alto.
Stanford University Med.icaJ Center houses 063 beds and VdCTan'S Administrd!iN)S
HospitaJ houses J277 beds, Both facilities an: locateJ in the C"i!y .. )<, ~e '5<:\,eT<i1 rri·,.a!~
conva.ieiC"enl hospitals and rllllSing homes.. The ~tanford Urj',ersit:, ;\1e.iic.:t! Cl'ntt:"f [$ a
1ecognized center for medical research and is famous fOT pion-:-ering in organ u-aru.pt:m\ Surge'f)".
City residents are alS(1 dose to the EI Caminu Hospital in Mountain Vie\~', the Kaiser F0Widalion
Hospjtal~ iG Sanl<l Clara and Red\,,'ood City. and hospitals in the San Jose an:a
(-6
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t
Recreatioq
The City of Palo Alto O'W7lS 3,400 8I:res of park and recreation lands. The t',.\'O large51
park:s are 1.800 acre BYKbee Recreation Area and the 1,4(1) acre Foolhills Park. Several cOWlty
pa.-'ks are alS<l located near the City. These City and county parks ~.d rccreationai iand'i pwvide
residents of Palo Alto with a wide variety of re-creaLional opportunities that indude hiking.
fjsh.ir.g, picrucking, tennis, and sVtimming. Thele are two golf courses in the City including 3;
municipal course. Palo Alto has fh'e museums. induding three art museurns on [he St;;.nfc.'rd
Campus.
The high quality of public a.nd pri"'dtC' e-du('~tio:il in Santa Clar-J ('(1untv retlt!"Crs
\.','ides.pread interest i:n this subje-ct an.i th~ Jarge number of degree ho!der.s.livlng in th,:, STl!a Palo
Alto and adjacent cities are s.el'ved by 14 elem::-ntaf) schftt1L;;, tv.-o jilidd!t; S('hi)(~~~ Cind ruo high
st'hools br th~ Palo Al!e Unified School District.
St2nfMd University. establishd if] 1985, is io(ctej adjacen! tt,) lhe: eii)". Sin.lIl!d ('fl Q\'cr
8,OO() a.Cft.';, the University h,aj a h!to:J estimated emollment of ;4,031 ir.dlJdir:~ und::'lgr,:J.dW-.:>·I~.
grad.uate and pDsl-dlx:toral :students.
Palo Alto is; \.'oithin t"Je FoothjlJ Communit), College District, which operates {WI) meJ.;-m
campuses \"ith 3 total enrollment of appn)ximateiy 40,000 d.:!y and evening students.
In addition to Stanford Uni .... ersity. other nearby ediJcatil)n;;;I inslitllrions off!.'nnt:
undergraduate'. al"Jd graduate degrees indude the University (If Santa Clara.. Sa.., Jo~ SWle. SlIl
Francisco Stafe, thO!' Uni".ersity of San Francisco ane! uni ... ·ersity of CaJifomla Ber~dey.
C-7
APPENDlXD
FORM OF BOND COUNSEL OPINION
D-I
-i , , ,
i
ATTACltElH C
. IUIS0Ltrl'%ON NO.
USOX.U'I'IOH or If'1IJ: coo.elL 01' TaB CITY 0" PALO
ALTO AO~BoaI~I.Q TBB SALK OF NOT TO EXC.ZD
$~,'50,OOO PRIRCIPAL AXOOH~ OF OTILI~Y .SVXHOB
BOJfIIS, HH snlBS A, AI>OP!!'IJlQ ornCXAL N01'ICII: 01'
SALB, B~ICB or BALB, BOTIC. OF IN1'8.1'10N ~
OFFICIAL 8TA~Bk.BT ANP AO~BORIZING OFFICIAL
A~IOBS UI.ATSD TBBRBTO
The Cou..r.cil of the City ot" Palo Alto does RESOLVE as follows:
5..E.c· ..... Is~i; 1. Authority. 7tie City is a chartered cit~, and
mU!licip~l corporation organized and existing under the
constituti.:)r, .)nd len"-,,, of the Sta.te of California and is d-u.ly
e.!"'":tc· ... ;:-r.=-j A:;;' a ch-srterej city to exercise t.he po ..... 'eI·:::~ reserved t.o
i.t t'r.~€!:· ~;t:i.d c::;.·n::;t.i.tutiC:1 ..... ith re"pect tc municipal affairs;
C;;'-'Tc.:.: ". Utl.lit)' Sl"ste'T3. As an exercise of such ~o .... 'ers
the [i~~' has heret,oiore adDpted th~ provisions of Ch6pter 12.2B
(:_"·::-,:--_--:-.'2;icir,g ',,:ith ,S'ect.iofl l~' .2(',. :)1(;) of. thE' Palo Alto Municipal
C.:.'Je iJ:~e ~La',· .. ·l .... ·hj.ch auth'.."lrize the City, ;.,"hen the public
~.rl.tF:;re~,t ani nc-ces-"iit.y r-eq'Jit"e, by l'esolution, to issue its
n:·v~n'..le bonds fo:r the-PUl-p{)Se of financing or refinancing the
a':~..lisicil=';I, constructlon, extension 0[" irnproverr:-ent of any utility
.enterprise 5'./::> t er;\ or facility of the City;
$ J..'CTH"J :l;. Out st Clnding Eor,ds. The City hd.s heretofore
authorized, issued and sold it.s City of Polo Alto Utility Revenue
Refunding Eonds 1990 Series A Bonds and the City of Palo Alto
Utility Rever:ue Refu.nding Bonds, 1992 Se:ries A (the 'P.r.-ior
Bonds·), unoer the Law for the purpose of refunding certain
outstanding utility revenue bonds of t-he City and for-the purpose
of financing certain extensions and improvements to the storm and
surface w~ter system component of the City's utili t z' Enterprise,
respectively;
~TIQN sI. Bonds Proposed. The Ci ty, after due
investigation and dEliberation. has deterrncined that it is in the
public interest of the City at this time to autrlorize the issuance
of an. addicional series of bonds tc be kno· ... m as City of Pnlo Alto
Utility Revenue Bonds, 1995 Seri~s h (the -Bonds"), under the Law
for the purpose ot financing additional extensions and
improvements to the storm and surface water system component of
its utility Enterprise;
SECTln~J 5. Bond So 1 e Document s. Stone & Youngberg.
~HlGnc:.al ':ldvisOl-t.o the Cily (the "Financial Advisor~), has
p:repc'J r ed a:-Io subrr.i t ted to the Ci ty a preliminary Off icial
Statement relating to the Bonds, in form a copy of which is hereto
altached and incorporat€'d here in b:,' referer:ce as Exhibit A, for
-.----
distribution to ~unicipal bo:.d broker-·dealers, banking
instit'Jtions and. to rr.-ember-s of the gene-I.-al public .... 'ho may be
interest~d in purcn3sing the Sonds and Jan~5 Hall Milt & ~~ite, A
Professional Law Corporc:tion, San Francisco, California, d$ bond
counsel to the City (-Bond Counsel"') hi).s prep~red ~n otticl.dl
noticE' of sale of the eonds (tllf' ·otfic_i_al notice of Sa-le'} in
form a copy of which .\$ hereto atta-:h~d .ar.:::l incorpOl;-ated herein b'.f
reference CIS Exllibit .8, and a. notice ot intention to sell the
Bonds (the-'Notice of lnt.enticn'), in for"!'!'", a copy ot wT1.ich is.
hereto attacl'l~d .e,nd incc:C~",:J;rated herein by reference t\~ Ex:.hibit c,
and a short tom. of Not ice cf Sale of Bonds (the '"Not ice of Sa] e')
for publica.tion as herein provided. a copy of which is hereto
attBched and incorporate..i her'?in b'/ !"f;'ferel'.ce .as Exhi.bit 0;
SECTION {; _ Autrl~'ri:-,at ion of Sale. '-::Jnday, Janu3r".t-2 3, 1995,
~t the hour of 10:00 a.m, i?acitlc St~nd3rd T~me). or if (he City
does not af:cept prcJ:;os:.=.ls recoei .. 'ed en suer, dote or if no prov.'sals
are rec(;ived on such date, tJ'lE':) ieb:cu3Y)-> &, )'i'j5. ~t the hCU1-of
10:00 a .• ,_ (Facitic Stdi-:: .. Ln-d 7i,p~" is t-Ie:recy U:-;!';'d.as the lir:~e,
~nd t'he otf:'ce' c,t UI/2 !:L::,nci i .. ~':i·_:r'5f'l, FV,"l' t-:~al-:>\:jE'r(; (I"!fiter, 19th
Floor, $;in FI-Mlcj.::~CO, C""llL)Jrl.l.<"" 9';2.11, lS hele',-')' llXEd as r.h-e
pl~c~ Gt ",'-bieh {nd:; .... ':.. 11 l:f:' I ,,:-eel. \'-:j t(:~ t r-,":' ~::Hchlse or t.he ~-3(mds
a.3 JescI'ibcd ':"n ,ir,d sub)Jf-..-:t lQ t.r'.e t,E'r:-:~c d;-,'j con,-;" .. tlc>:l'O of the
(,tt1(,:1.3J ;':otlCE' of S31e. -:-Lf.~ i3.';I..l-3.,.':-c (',t th~· P,::-,,,ds ' .. :ill bE:
""uthOr.1.7eO ,:-!nd trIe s"l~; ',;~_:1 to:' a-,.,'<J,-rif:i ['-I 1-':=51)1'.1t10:1 of thO:'
Coc.:rlcil to be a.uopted ,:,t it::· r";:·er:::1n'~ L,:, !:,€ held on Jilfl:..:ary 23,
1995, {nr Feb:r:lary f. 19~1S, ('1", the ~)~'"'" -r-.ay be) dot 7:00 P.IT1_ to
the bidder whose respon5ible bid fur Lhe B~nds resuJts in the
Iv ... ·e.sl tru.e interest cost to the Ci.t:.,', to be detE:rrr~ined in
accordanCE' · .... ith th('! Otficial "~'."tiCE of S~le. 'Ine prillC"ip~j am::mnt
oi trl€" B~flds shall.. nc:t E!xceed ~S, ~c)(';, 1,);:',1:1, ',,·l.ich pXlncip:;,;l aJ'D .. ml
may be deczeased befole the glVlnq cf n,,::,t.ice of the sa.le 0': the
Bends a.'3 hel-ein provided and tl-t'2 do:::ur,ents referenced in Section 5
hereof shall b<:! revist~.:j ,:lCcordinglj-·.
SP"TIQN 7 _ r~otice of Inte~ticn. Tbe D.H~ctor of Finance of
the City is authorized and directed to cause to ~ publ ished the
notice of lntention in the fQrm hereto attached as E.Y.J'1ibit C once
in Th@ Bond a'wet, Q financial publication generally ci7:culated
throughout the State of California, such publica.tion to be not
later tp~ January 6. 1995.
SECTION 8_ Notice of Sa.le, 'The Director of finance is.
hereby authorized and chrect",:j to ColEe to be p-i.lb11.snea the sbort
form ot NoticE' of S(ile hereto atta.ched ;;'$ E..xh.i.bi;: DonE' t,im'2 in
the PaIn IHrq W.cek'y, being a newspape~' of general circulation
circulated within the boundd.rie~ of the City, such publication to
bt2' not lat.er than January 6, 19'-15.
'sFr'T'Tml q Official State~er.t _ The-preliminary Official
Statemer:t nescrlbing th,~ ECf;;d~.; :.n substa."t.idll;,: the ~orIT';
heretotOl:'e 5Ut).1,itte.::i to thE' 1,::':>',ir.Cll i~' tH::"n>by Ci.d'~)p·~,,~d, subject to
what evE:' 1-additions, del et lons and correct: lons >T:ay be deemed
advisable by the Fl.n.ance Direccor 01 the Ci~y Manager (the
-, -
.-'_~ __ :;:!c;"
·.~~tho:d;::ed Ofticial"), upon consultat.ion with the Firlancial
Adviser, ~ond Counsel and the City A.ttorney. The AuthcI-izE'o
Official 1 s hereby separat ely aut.hori 'Zed and directed, up0n
consultation with the F'ina"J.cial AdvisQI', Bond Counsel .end the City
Attorney, to approve such chang-es to the preliminary-Offici~'l
Statement as shall be nec~ssaly to cause S1..lch p:r.elic'tinary Official
Statement: to be brought into the form of a fin~l Of!j cia1
Statement, and the Au.thorized Official is hereby authorized and
directed to execute and d~liver copies of the final Official
Stateme."lt to the purch;;!ser. of the Bonds, ",t t,he tirr.e of delivery
of the Bonds.
The Cc.uncil hereby approves, and hereb".!" de€'.!'"l$ neo2!Tly tl.nal
within the meaning of Rule 15c2-12 of the Securities Exchange Act
of 1934 (the -Rule-), thE: prelirninllry-Officidl Statel:'.ent. The
Authorized Official is hereby cuthori7.ej to exeC'.lte an a~pn)p:riate
certificate st.ating the Council' -:.=> detetmino.tion that 'Cr.'?
prelimin;ary Official Statement has been dee;T,eo r'E3!"ly tined '.d thj r,
the ~aning of tne Rule.
SECTION 10. Distribution of Offici-'ll St,'it['-::,e~lt dlld (J!:r::'ciol
Notice of Sala. Tha Firlancial Advisor is hel·~t~' 6~t!1Drized and
directed to cause copie::; c.£ the pl.-elirr.ina.I"Y OU:ici,;;} St:d[:e::O;'r~r. U.
be printe'd and iTl,liled to pr,:)spectivf! bidJer-::; (01 the-EDnds,
togetc.er witt) copies of thE' Offi.cial Noticf2 Qr Salc~.
SSCTION 11. Prepa~atiDn of Bonds. The Qirector of Finance
is directed to cause the Bonds to be prepaced in C1cco.o::dance ""'i;::o
the provisions of the supplern-ental indent'.ln-: of. trust t,.' he
app"{"o\~ed by the Counc~l as part of the authDrizir.g of tl"it:' S_SSi-,co.nce
of the Bonds, and to cause t~ei:r execution by t.he proper office-x:;;
of the City and authenticati<:}n by the tru3t€E! na,ned in che
supplemental indenture of trust (the -T!"ustee-) and to t'e caused
the Ecnds he delivered whe. ..... so i::".xecuted and al.!thant.icat€d to o-r--.:>n
behalf of the purchaser or purchasers t.hf!reof, upon the receipt of
the purchase price therefor,
SECTION 12" Execution of Documents _ Tr.e ~.ayor. V.lce Mayor.
City Manager, City Clerk, Director of Finance, Assistant Director
of Finance, Director of Utilities, Director of Public Works, C~ty
Attorney and any and all other officers of t.he City are each
authorized and directed in the name and on behalf of cr.e Cit~· to
ma.k.e any ~nd all cert.ificates, requi::.itions, agreements, not~.;:es,
consents, warrants and other aOcUITientS, .... 'hish they or a~y of the:~,
might deem flecessa:J:y or appr-opr-iate in Qrde::s." to U.HlSWT.:T.ale thE'
lawf.ul issuance, sale and delivery of the Bonds to t.he original
purchaser thereof, subject to the adoption by tb: Council of a
resolution aut.hori zing the issuance and awarding sale of the
Bonds.
SECT;:QN 1'),. E.ffectiv~ Ca~e. 'This teSolULion sI1311 be
effective upon the date of its ~doption.
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SECTION 14. C.E,Q.A. The City Council finds that the action
hereby approved does not constitute a project under the California
Environmental Qwality Act.
INTRODUCED MID PASSED:
~.YES:
NOES:
ABSENT:
ABSTF..NTICN3 :
City Cled~
APPROVED AS 'II') f'O.RM
JO~res HALL RILl, & WHITE,
A Profcssiomd J.:elw Corpor~tiOJl
B}' '-,._--,;--;::_
Stephen R. Casaleggio,
Bond Couns e 1
JI..PFROVED :
-------------------City Manager
Director of Finance
Senior Assistant City Attorney
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PULIXItlAaY OFPICIAL STA'!'EK'IN'r
[TO COME}
Exhibit A
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.-""<:
K.l:BI.I!' ..
OI'r%CUL lOOT IClI: 01' SAL"
$9.BO.OOO
C.I'rY OF i'A.LO AL~
(s.urrA ClJUU ~~l7JI'l"f • CALI70IUUA)
O':'Il.I!l'Y ~ .OIrDB
1995 BD.%ZS A
N-YiICE IS HEBESY Gnro.," i:~.:.t sealed prc';.'c$als .... ·ill be l:eceived
cy hE> City of Pa.le· :;.ltO Ithe ~CitJ.'·) at the C'ffices elf Jor,es Hall
Ail .& '~,~Jli,>?, te;,;r 2"'J':lrcaie:-c, r'::er.r_E'l-, Su~,t(:> 1901), San Fr .. u1c.isco,
CC1~ forniJ 9 .. 1.11, ,-,;",
HO:.roAY, JA.NUA;RY 2"), 1995
,:u:j (,.,ithc'l..:t further-ad\'ertis.ln~. dnd so long as a pJ:'oposal
has n~t th~r'?tof.:J("~ beer. accept.ed hy the ci ty en Mer.day, Fe::>l"Uazy
6. 19S'.s;, .at the r;::.ur of 10:(,0 a.m. [Pacific Stand!l.rd Time) for
thE purchase of $9, ':'50, COO principcd amount of the captioned
IJt"ility re-;enue b(J;--ds cf thi~ City (the "B':mds'J. IT'J:Jxe pa.:rticularly
de-scribe::! belc.,.,. ~i(U""rs sh,:rclld refe!" to the Drelimin.al), Official
5ta.tl;!-:c.ent f01 detinitions {"It te:r-rns and c:n;dit information
re9'eu:ding the B0r.ds_
"eMf or "' J!QBPB
.LS..S..U.E.. ThE', Bo;.ds wi 11 be in the prj ncipal amount of
$9.450,000 designated 'City of Palo Alto Utility Revenue Bones,
1995 Series A," consisting of f;;lly-registered bends, without
coup.:;ns, executed and delivered in book-entry only form and
reqi$tered in the name of Cede & Co., as nominee for The
Depository Trust. Co:":".pany ('[1T("I, in t.he dellomination of five
thc>usdnd ($5.000) each or an~' int.egra,l rr:llitiple thereof; prQl{ided
that no pond .... ·ill have principal becoming payable on !T'Cre than one
payment date.
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£Xlllbit B
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pA.TE MATIJRITIES UID AMOmn::::. The 8onJs, .... il1 be d~ted
February 1, 1995, with interest fram thi:'l d~te t',t the rate-or
rates fixed upon the sale thereof ~nd \Oo'ill rr.atUI"E! seriel1y on June
1 in each year a~ s~t forth in tne fe:llO\riing table:
!"'.aturity Date Principal ¥..aturity D~tc Pri:J.cipal
t.l·me 1 ) ~ (JEDr , ' .' ~
1996 $165,000 200~ $ 2cD,ODO
1997 175, DOO 2005 275,000
1998 180,000 2006 2' 9!), Cl;) (r
1999 190,000 2007 310,000
2000 205.000 2C08 DC), COO
2001 215, 000 ,009 355,000
2002 23[),OOD
2003 240,000 2D2(1 $6. '025, 0(,0
ADJlJ.c.:n:J:l.''T Of PRTl')~I?;'L ;"v.~,·p.!'"':'"~ TI: .... c,t .. l p:rir'('ir-~l i3r--~!',:I,t
of the Bonds and the prir:cip~l a~~unts p~~'ab10 O~ the ~~turi:~'
Dates t1E'!rein siJf:citied I-eflect E·::;r:.HT_~::E'S (,r \.~1'2 C::.tv ond Ule
Financial Advisor · .... 'idl respect to thr-s'..;ccesst",l bid. j\ft:::or
se] ecting s\l.ch bid. the t·~,;tal r·rin'':'lp;:l i:>..;-:-y,l:,t ar.d tfjF.' ~nincir-il.l
amounts l>:tyab~€ on each ~atl.lrity Pate a.r'2 5.ubjf,C: ~." . .:dj\.:.stl~.e:1t hi
the City in incre:..',ents u[ $5, (!OO t.O l,"<?tle.::t aclu':11 intr~n;',st L"Il"E'S
and d!lY 'p:re..'l'li~'T~ or dis('clllnt :;.n tbe ~llccessfl;l hir::', tv ("!"€<3':e a r-~re
level debt service on the Bonds; provided that such adjustment
will not change the t.otal pI-incipal a..r·:mnt by r'r.,)re th:!n $200,000
and will not incz.>easp ur decreas.-;! pr-inclpiil Dn ar.y ¥ .... :H.ur ... ty Ddte,
{}r any Mandator-;,' S.inK~ng Fund Ir.sta.llrr.ent, by IT·::n:e than 10t fro;"1
the amounts sho'tl'11 in the toble:;; hE'rein. 7fH:: success.ful bidder
·...-ill be ll':Jtified of any such adj'...lst:Tlent with:n 3 hours ()f t.id
opening and may not \I.'i thdraw its bid bec .. :H..iSE' of any adj ustme:1t
n-.ade within the for€goiilQ limits.
PRIOR ESDf21PTl(;N,
'a) Opt-jppal B""demptiop. The Bonds matu.ring on or befoce
June 1, 2004, art! not slJbj ect to opt ional rfodenpt ion prior to
m.~turity. The Bonds mctturing on or .. J.iter June 1, 2005, are
subject to redemption prior to their respective i-:-~turity d3.te5, at
the option of the City, as 5 whole on any date, or-in part in
inverse order of mat ut"i ties and by lot wi thin a reaturi ty on a!1y
Interest. Pa~7:€'nt Date or: or aft er June 1, 20 rl';', fro:;', ar,y sCI.neE-,;.f
available fJ.mds, at the follo .... 'ing respectivE' RedeIl':ptiCJn Prices
{expressed as percentage:..: of the pr.incipal amo'_H'!.t of the Bor:.ds to
be r-edeerned), plus accrued intE'T."est ther-eo."l to the date of
:!:'edempt.ion:
Redempt i on Per i Qds
.. iur.e 1, 200'~ tJ"iHH..lgh X,ay 31, 21)O~,
June 1, 2005 :-.hrollgh May :n, 2006
June 1, 2006 and thereafter
E.,xhi. bi t B
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Rcde~ptjQn Price;;
l02't!
iOn
100%
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(bj Special MandatQtL Redemption From Insurance Qr
Cond~mnatiop Proceeds, The Bonds are also subject to red~tion
as a whole or in part on any date prior to ~~turity. in inverse
order of lMturity and Uy lot within a matuL i ty, to the extE'nt c·f
the Net Proceeds of hazard insurance not used to repair or reb-ui Id
the Enterprise or the Net Proceeds of condemnation awards received
with respect to the Enterprise to be used for such purpose, at a
Redemption Price equal to the pz-incipal amou."1t of the Bonds plus
interest accrued thereon to the: date fi>:ed fo'! redeIrpticn, without
prexnium.
(c:} Mapdatory Sjpkjpq F1!Od Rede.mn~iQn. The Bonds tialturing
on Ju.ne 1. 2020 (the • Tem. Bonds· J are also subj ect to mandatory
rede:nption in part by lot, on JUl1e 1 in e~ch year co;:;vnencing .June
1, 2{)lO, from Mandatory Sinkl.r.g Fund Installments, at a R€de.Ti"{'lticn
Price equal t.o the principal amount thereof to be H?deemed,
without p=emiwn, in the aggregate respective principal ';;'ril")unts and
in che respective years as set forth in the follo'..;ing tables (,[\~::;
adjusted according to the pro'/isions 0f ·AD..rusTHE~;r OF FRU::rPAL
AMOt.'N7·S L aoove):
,C)inkj ng f'l.U10 .i!l.ccoun l
He.1e!l"lPt ion Date
.LJ.IJllJLll
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020 {1".aturit.y}
~anddtO!y
~in~~.....I.n.s.~..;,,;.~
$180,0(:0
4D5, DOD
435,000
465,000
500,000
53.5,00(1
575,000
615,000
65~"DOO
705,000
755,000
PAYMENT, Int.erest on the Bonds is payable semiannually on
eacn June 1 emd Decembe:t-1 (each, and "Interest Pa:)"ment Dare" or
-Payment Date), commencing June 1, 1995, So long as Cede & Co.
is the registered hwlder of th!'; Eonds, principal of and pre:niUrtl,
if any, and interest evidenced and t:epr€sent2d Dy the Bonds will
be paid by Bank of Arr,erica National Tn.J.st &: Savings As.sociation,
San Francisco, California, as Trust.ee (the -Trustee-), at its
principal corporate tl"Ust of~ice directlj.' to D'K, '.·.rhich will in
turn remit such principal, premium, it any, and interest to its
participants for subsequent disbursement to the beneficial owneI'S
of the Bonds.
pIrnpQSE OF ISSUE, The Bonds are to be issued by the Council
of the Cit.y in t.he name i::md on behalf of the City and are
E.x.'1,ibH. B
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au~horized pursuant to the charter of the City and the provisions
of Chapter 12.28 (commencing with Section 12.2B.OIOi. of the Palo
Alto Municipal Code, tor the purpose of financing capital
improvements to ana expansion of the storm and surface water
cottJ:lonent ef the City'::I utility Enterprise.
SEf"URITX_ The City has transferred, placed" charge upon,
assigned and set over-to the Trustee, for the be-nefi t of the
C1.omers. that portion of the Net Revenues of the Ente~rise which
is nece'S ~ary to pay the principal or redemption price of and
interest en the Bonds in any Fiscal 'lear, together with all IOOneys
on deposit in the Debt Service Fund, and such portion of the Net
Revenues has been irrevocauly pledged to the punct.ual payment of
the principal or redemption price of and interest on the Bonds.
The Net Revenues cannot be used for any other purpose while any of
the Bonds rema in Out.~tanding. except th.at OLlt of Net Revenues
there may r.e apportioned and paid such swr..s for such purposes, as
are expressly perrrdtted ~! the Indenture. Sdid pledge constitutes
il first, direct ~nd e."<clusiv€ cbarge and lien on the Net Revenues
fOl-the payment of th~ pr-incipa 1 or redemption pl:ice of and
interef;t on the Bonds and any bDnds issued on a pa_rity therewith,
all in acc'::Jrdanc€' with the terms thereof.
Tho::c }h:!t Revenues constitute a trust fund for the sec1..lrity and
pa~Lent of the principal or redempcion prj ce of and interest on
the Bonds. The general fund of the City is not liable cmd the
credit or taxing power of the City is not. pledged tor the payment
of the principal or redemption price of and interest. on the Bonds.
The G~er of the Bonds cannot compel the exercise of the taxing
po",,'er by the C;ty or the forfeiture of its propert}'. ThE:
principal or redemption price of and interest on the E-onds are not
a debt of the City, nor a legal or eqtlitable pledge, charge, lien
or encum.brance, upon any of its property, or upon any of its
income, rsceipts. or revenues except the Net Revenues of the
Enterprise.
NEITIlER TI!E FAITH AND CREDIT NOR THE TAXING POIiER OF THE CITY
OF PALO ALTO, THE ST~_TE OF CALIFORNIA.. OR ANY POLITICAL
S\IBDIVI510N THEREOF IS PLEDGED TO ~'HE PAYMENT OF THE BONDS. THE
BONDS ARE NOT GENERAL OBLIGATIONS OF THE CITY, BUT ARE LIMITED
OBLIGATIONS PAYABLE SOLELY FROM CERTAIN Ftj'NDS HELD PURSUANT 'TO THE
INDENTURE. NEITHER THE CITY OF PALO ALTO NOR THI': STATE OF
CALIFORNIA SHALL BE OBLIGIITIID TO PAY THE PRINCIPAL OF THE BONDS,
OR '!'HE INTEREST THEREON AND NEITHER ?HE FAITH ~WD CREDI'T NOR THE
TA..XING POWER OF THE CITY OF PALO ALTO, THE S'rATE: OF CALIFORNIA OR
ANY OF ITS POLITICAL SUBDIVISIONS THEREOF IS PLEDGED TO THE
PAYMENT OF' THE PRlhlClfAL OF OR THE INTEREST ON THE BONDS.
TAX-EXEMPT STATns. In the opinion of Jones Hall Hill &:
White, A Professional Law Corporation, San Francisco, California.
Bond Counsel, subj ect. however to certa in qual i fications, under
existing law, the interest on the Bonds is excluded from gross
income for federal income tax pur.poses and is not an item of tax
preference for pU:l:poses of the federal al ternative minirnwn tax
Exhibit B -. -
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i~osed on individ~als and corporations. although for the purpose
Qf computinq the alte-rnative rnin imu..", tax. imposed on certain
corporations, such inten!st is taken into account in determining
certa.ln income and earnings. Ir. the further-opinion of Bond
Counsel, such interest is exempt from california persona.l income
t6.Xes
In the event that. prior to the delivery of thE Bonds fa) the
interest en ot:t"!er cbligat.lons of t.he same type and chal'acter shall
~ declar~ tQ be subjec~ to taxation (eith~r at the time of such
decl~rat: ion 0,( at a.ny future date) under ~ny federal income tax
laws, either: b'.1 the terlM of such laws or by rulinq of a federal
income 'tax authority or official which is followed bj' the rntern~l
Revenue Se~ic~. or by decision of any federal court/ or {b~ any
federal income tax law is enacted which will have a subst~ntial
adv~"rs~ eff-ect upon the owneI-S of the Bonds as such, the
stlcces-! ful bidder r:'.a~t, at it s opt ion, prior to the tender of the
P-o:".ds. b.,; .eel i~..,ed of its Qbligat ion to purchase the Bonds, and in
:::; • ..!::r-. caSL~ the de';:'-':'1s1t dCCO~il=-,.ying :its bid .... 'ill be ret.urr.ed.
1.;(,,\:, n?njIC'~ 'Ti'I-:> 1.I;'gal opinion of ,1~mes H811 Hill & 'tlhite,
t-, P!-'Y~r,s.3'.on."\l La,-,", Co:q:ot-ar.ion, S2.n Fra.ncisco, C'3.1iforr,ia, Bowl
,:»:.msc·."l, app!'"Ovl r.g th'"~ \',,,d idi ty of the Bond~ and l"ega:r-ding • TA.:W;
E:-O:f]>~i'l' S"i".';';":..IS' aby.'e will 0:2 fUr-nishecl to the successful bidder
",.,-i. tr-:':.ut e·::::::t"_.
M.i.fNJrTPbI oONL INsrrRN;~ The City has applied for a
con-mitment for a policy ot fi'unicipal bond debt service insuranc~
en tht' a.::mds dnd at lease 24 hours prior tv the time for receipt
t0~ t,ids .,.:i 11 ad'\'is"e un the X\mifacts. Ne"rl5 Senice \"hether such
cN'''.m tr.-:er:t h.3S be-en o: . .ltaine,j snd from ..... hom it has been obtained.
If it has b~en cctalned. any bidde(" may e1en to purchase such
: ns!..:.rance [or all or part ot the Bonds; provided that the cost of
such insurance 'Will be p~id h-.I such bidder and the ins~..ll'ance
prell'liur. will b~ treated a.s a discount in determining the best
price for the Bonds (subject to a 2% limit on underwriting
discc~,t) 45 descrlbed in "BASIS FOR AW,~' her~in. The City will
accep~ bids ~hich are based upon the issuance of a municipal bond
insurance policy but only by the entity described in the Munifact~
News Se:rvice as set forth above, Jiowever. bids shall not be
conditioned upon the issuance of any such policy. The City makes
no represent at:..on as to whether the Sondt;. will qualify for
TTll.lnlcipal b::md insurance. Payme-nt of rtny insurance premiu.'f, and
satisfaction of ,~.'ly conditions ';lpon the issuance of a municipal
b1:!nd insuI-ance pDlicy shall be the sole responsibility of the
bichle:r. In particula:f f the City wi 11 not amend nor supplement the
Indenture in any way flO!.-will it agree in advaJ'lce of the sale of
tnE-Bonds to enter J.nto any additional agreernent:-s with respect to
the provi~ion at any s1)ch policy.
FJ._IUJRE. OF T".rlE HT..nnC!p;'_l, SO:"JD DEBT SERVICS U,lS'lJRANCE PROVIDER
TO ISSUE ITS POLICY SJ'lkLL NOT CONSTIWTE CAUSE FOR A FAILURE OR
REFUSAL BY THE SUCCESSFUL BIDDER 'l\') ACCEPT DELlv'ERl' OR PAY THE
PURCHASE PFtICE BID FOR THE BONDS. 'r-he success ful bidder must
Exhibit B
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proyide the City ""'itil the rm,,mic:l.p:;'ll bond insurance cOm:t'.itment,
including the amount of the p:)licy pre:r:l.il.L'n, as well as infonnation
with respect to t_he :r.unicipal bond insur.ance policy and the
insurance provider for the inclusi,;.n in the final Official
Statement within t\>,"O ,2) business days follO'\oo:'ing the aWi'.cd of the
hid by the City. The City will req'..liz-c a certificate from the
insurance provider on 0:::: ~):-ic't to tr.e d3te ot delivery of th~
Bonds rel ating t-o any infonMtion Tel at ing to such insurance
provider included in the fina 1 Of fleial Statement, together with
&11 opinion of CGuns",] to t ne lnSllrance p.rovide:r regarding the
enforceahility of the tt.\mici?dl bend insurance policy in form
reasonably satisfactory tc the Cl ty.
%".6 Of SUI
ORr: !~r RF';' !<,.}, .. ~:pr.f"l,. p" ':::.-'-:"£0'. Bid::; ;,-:jst be for all of the
BO:ld.:s, a.nd I!U~'iI: CoE fe-!:' <lot less t:rJ;i{1 njr_~::)'-(l.lqh~ percent (9S%) of
the p~r val~e t~er~at pl\lS dccr~ej i~ter€st ~~ch bid, togethel
with the bidder's I:ertified or cashtpr's chec~, ~~s~ ~e enclosed
in the sealed er),,'elc~.:; .:3ddre:3~,::,:j to 'City of Pale: .;11;0' at the
address r.,en'.:.ion.2.:l. at:·",;; r,,:) l11ter l.fl::'.11 ID:{i{-d.n. 0:-. said dOlte (If
"5;'ll1e, "nd e.,do.;:'""""'-"] • rT()~ ::-,:,~l fvr C.l t.''" 0f Pdlo !-d to I)t.i 1 ir:}' Revenue
:Sonds, 1'99'5 Serif's _;,' Ec:ch bid ~ol~t b~.." in ,5CCol-d2.nce i'o'lth the
terms and. conditior.s set [(,)rth h!-~leln, --3:--,,') ;-usr be sub7J.itted on,
or in .substantial acco~dance .... 'ith, th'2 Officla.l Bid Forrr~ attached
hereto,
.Ib7fSr:ST S;TE. 'T'!le IC'.dxirr,un interest r~te bid n ... ."y not exceed
twelv-e percent i1.:2%.) pe::: a:1r.~"'!1, payable s':;J'TI.i-ennually on each June
1 ~nd Dec~r 1, c01W1£ncing June 1, 1995 (eacIl, an "Interest
Pa-yment Date"}. Siddel-s r.':ust speci fy the x.-a.te of interest .,..hich
the Bonds bid upor. shal1 bear, p~c'l"'.lded t.hat: (i) ~ach bid must
be on the Official Bid Fol.""n" (iii each bid must state in B
:m.J.ltiple of one-eighth (llBl or one·-tlWentieth (1;'20) of one
percent (1') o! the rate or r,ues of interest per anrlUffi which the
Bonds ot the several maturities are to bear and a ;z:e:-o rate of
inte~est ca.nnot be specified; (iii) onl~' one inte:rest rate may be
stated for Bonds of the SClrne maturit.y; (iv) each Bond bid upcn
shall bear interest fror:-. its date to its stated rn.:-.tm:ity at the
interest rate-sp~c.l.fied in tbe bid; Iv) tr-.€" interest rate 101:
Bonds of any l!~turity rr:ust b~ equal to or lC"I'I'er than the il1terest
rate on Bonds of the next succeeding maturity; and (vi) the spread
between the lowest and the highest inte:r:-est ra.t e shall not exceed
thxe~ percent '3%},
FSTtM,ATE5 OF ___ Ih"TEEEST_C0C;7S. Bidders a.ye reO'...:ested (but nct
required) to supply .:ill -:st.i:TO<1c€' of t.:h" true iw:.erest cost I'TIC) on
the basis of their respecti ve bids (deterrr;ined in accorda.nce 'wit,h
the pa.rdgrapn "BASIS Of' Av,'AP,n" belm .. I), which esc.ir:-.at ion shall :be
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considered as informative only clnd not binding on either the
bidder or the City.
BASIS Qf !wABD. Bids must be for the purchase of 411 of the
Bonds, The Bonds will be awarded to the highesl respons ~bl.e
bidder therefor, considering the interest .I."ate or rate:; specified
dna the premium or d~scount offered, if any_ If any bidder elect~
to purchase a policy of municipal bond debt servicp insur~nce on
the Bond!:> (as described in "M',r.UCIFAL BOND INS!..1P.t\lIfC"E· herel:O), the
cost of such insurance will be treated as " discount \ sul,je·:-t to
the 2% limit) in deterucining the best price for th~ Bonds ~d ~ill
be borne by the bidder and disclosed to the Ci ~y. The highest
responsible bidder will be the bidder submitting th.o:o ~st price
for the Bonds, which best price ..... ill result in the lowest
effective interest ratE. or true interest cost.
The lowest effective interest rate 'Will :b.,. cOr;'.put.ed In
accordance witt>. the true interc;;st cost cc~ute:.j LJ/ d.~\jbJ ir.? tr;f~
semiannual inter~st r.;lt,; (compounded se~ianra.all:il neCf<333ry t.=:.
discou.nt debt ser.,rice paYF.ents fro::: theil" i..e3.p€ctlvc r<'!YJ'e-n{ ual€s
to the expected closing date of the B~_'.nd5 ·:lnl~ to t)'-l.,::. p.r:. C'2 bl'l
(inclu.ding any pre:rliuIn or dis(;ount) aT.,j a~:'cr"Jed "interest Ere;,: tL2
dated de.te of the Bonde t<:J February 1::, LI9~,. t.r:o'; dnt!.C.l.r',~tE:::;' d,,",>c'
of delivery of the Botlcls.
Fot" purposes of c:alculating the true-intere.st {""or"t, the
principal amount of the Bonds designated do'.> I1:.d.~1.J.J.t0ry sin:..;in.c: fund
installments as part of the Ternl Bonds '''''ill be treated 2tS a seridl
maturity in each ye.:ar. In the event t· ... ·o or ri.ore bids of !er U,e
sarr.e lowest true inter.€st ccst, the C"ity re'.5erv€s the I ig'nt to
exercise its own discretion and judgmenl in making lhli; o.,.;,:;rd.
TIle successful bidder must pay accrued interest, it any,
computed on a 360-day year (30-day month) basis, frorrt the d3te of
the Bonds to the date of delivery. ChangE'S made in tbe total
principal amount or amortization schedule will not. dffect t"~he
determination of the winning bidder or give the winning bidder 3rry
right to reject the Bonds. No bid tor less than ninety-eight
percent (98%) of the par value of th~ Bonds and accrued intel'est
(which interest shall be computed on a basis of a 360-day year
cOIrposed of twelve 30-da:;.. .. rronthsl will be entertained.
BID DSPO$IT: A good faith deposi t (. Deposit') in th2 tc~, cf
a certified or cashier I scheck Ot" a t i.r:anci,;l ::>urety b~)nd t a
-Financial Surety Bond-) in the am·;,unt of $25,000.00, puyallle to
the order the ·City of Palo Alto., is iequired for each bid to be
considered. If a check is used l it must aCCo..-'T'lpany each bid. If a
Financial Surety Bond is used, it must be from an insurar.ce
company licensed to issue such a bond in the State of California,
and such bond must be submitted t-o the City or the City'S
financial advisor prior :0. the opening of t:.l1e vid::;. 'ThE' Fina.n-:-.l':: 1
Surety Bond must identify each bidder-whose Dep,Jsi t is guaranteed
by such Financial Surety Bond.
Exhi.hit B -, -
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I
I
I
If the Bonds e;re a--.'drded to a bidder utilizing a Financial
Surety Bond. then that purchaser (' Put"chasel.·) is required to
subnUt its Deposit to the City in the form of a ca~hier's check
(or wire transfer such amount as instructed l:rt the City) not later
than 3: 30 p ,m. Paci fic St~ndard Time, on the next busines~ day
following the award. If such Deposit is not received by tha.t
time, the Fin;:.ncial Surety Bond may be dra\o\.'l1 by the City to
satisfy the Deposit req-..lire;nent. In the event the PurchaseI' fails
to honor its accepted bid, the Deposit will be retained b-.t tt"le
City.
1f the Bonds are awarded to a bidder utilizing a certified or
cashier's check,. the check acco~any.ing any accepted proposal will
be held by the City following t.he award to t.he successful bidder.
If, after the award of the Bonos the successful bidder fails to
complete its purchase on the t.€"tmS stated in its proposal, tt.e
check will be cashed by t.he City and the proceeds thereof will be
retained by the City as liquidated darr~ges.
If the successful bidder cOJT!pletes its purchase of the Bond,;;
Qn the terms stated in its proposal, its Deposit will be applied
Lo the purchasf' of the Bonds on tbe date of delive:ry of the S.~nds.
'Tile check accOlnpanying eacb lmo.ccE;pted proposal will be returned
by the City by personal deliVery c·r by Jr>.dil promptly c:!te:: the
date ot sale to the address specii: i ed by the bidder in the
Of ticial Bid Fol."lT'.. No interest will be paid upor; the depo::.i t IT.a.de
by any bidd~r.
RIGHT OF REJf:CTIQN. The Ccuncil reserves the right, in .i.ts
discretion, to reject any and all bids and to wa)..ve any
irregulari 'Cy or infonnali ty in an)' bid.
fnmt'l' OF CANCELlATION OF SALE BY CITY. Tile Ci ty reserves the
right, in its sale discretion, at any time to cancel the publi::
sal~ of the Bonds. In such event, the City shall cause notice of
cancellation of this invitation for bids and the public sale of
the Bonds to be communicated through !o!unifacts News Service as
promptl}~ as practicable. However, no failure to p';.lblish such
notice or any defect or omission therein shall af feet the
cancellation of the public sale of the Bonds.
PROMPT AWARD. The Council will take action awarding the
Bonds or rejecting all bids not later than thirteen (3) hours
after the expiration of the tilr,e hert8in pr~scr\bed for the receip!..
of proposals unless such time of 3w.:nd is t",aived t..y the successful
bidder.
DELIVERY j!\ND P?YMEN1'. The Bonds will be delivered to D'l"C in
New York, Neyl York for deposit on or about February 15, 1995. 'The
successful bidde:r will pay the Trustee for the Bonds on the date
of. deliv€xy in Foederal Reserve Bank funds or equivalent
irrunediately available funds to the City. Payment on the delivery
date will be made in an amount equal to the pri~e bid for th~
Bonds plus accrued interest, if any, less the amount of the good
Exhibit B -, -
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i Ii
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faith deposi t as described in the paragraph captioned • BID
DSPOSIT, ~
RIGHT OF CA.JoJCf'I L,XION: '!'he successful bidder shall have the
right, at its option. to cancel its purchase of the Bonds if the
City shall fail to cause the e..,,<ecution and delivery of the Bonds.
and tender the s~~e for delivelY within sixty (60) days from the
date of sale the.reof, and in such event, the sut.'cessful bidder
shall be entitled to the return of the deposit accompanying its
bid.
CERTIFICATION OF BEQFEERING t>RICE. Simultaneously with or
before delivery of the Bonds, t.he successful bidder will furnish
to the District a written statement in form and substance
acceptabl@ to Bond counsel (a) stating the initial reoffering
pricEs on e-ach fr..5turity of the Bonds, \bJ certifying that a bona
fide offer:..ng of the Bonds has been made to the public {e:xc}uding
bond hQuses, bt.·oKers and other intenr1ediaries), (el statu:.g the
prices at whicb al least ten peI"cenl (i.01!) of each maturity of the
Eo~ds were sold to the public (excluding bond houses, brokers and
other i.ntcrrr,Ediar.i..es), and (d) staling the pr.ice at \<,'hich ec..ch
BDnd ' ... ·as sold, or will be sold, to institutional 01-other
invcstors with concession3 or at a Ji~count f~0m the prices at
whi.ch Ronds were, or will be, sold to the g~neral public. Such
wriclen stdte.n~ent will state that it is made on the best
knm'o'ledge, inforiT'lcltion and belief of the successtul bidder after
appropriate investigation .
.cA..I...lF.QRNIA p;;RT .ADVISQRY CQMMI S~ rm; The Ci t~' has duly
notified the C~lifoxnia. Debt. J~.dvj sory Comrr,ission of the proposed
sale of the Bonds. payment of all tees to the California Debt
Advlso!"'.1 COlNnissl.on in connection with the exeC:.ltioH, se:.le and
delivery of the Bonds shall be the sole responsibility of the
successful bidder, and not of the City.
NO l.lTIGAITQN There is no litigation pending concerning the
v,:11idity of the Bonds, the existence or the City or the
entitlement. of the officers thereof to their respective offices,
and the sl.lccesf>ful bidder will be furnished a no-litigation
cel'tificate certifying to the foregoing as of and at the time of
deli very of the Bonds.
~ Ie is anticipated that CUSIP numb€rs .... 'ill be
pr1nted on the Bonds, but neither the failure to print such
numbers OIl any Bonds nor any 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 with the
terrr~ h~reof. All expenses in relation to the printing of CUSIP
numbers on the Bond shall be paid tor by the City; provided,
ho~'ever. that t.he CUSIP Service Bureau charge for the assignment
of soid Hl.ur.bers sha 11 bE: thE' re.sporlsibility of and shall be paid
for 0 .. ' the purchaser.
Exhibit B
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OFfICI"'!. STATfJiEN''t A copy of the preliminary Official
Statement and the Official Notice of Sale will be furnished upon
request to the financial advisor of the City, Stone' Youngberg,
50 California Street, Suite 3500, SCIon F-rar.c;'sco, CA 9-4111,
telephone (415) 981-13l4, Such preliminary Official Statement is
in d fol'l!'l "deemed fin.,]. ~ t..y lhe City for purposes of SEC Rule
15c:2-12 ib) III but is subject to revision, amendment and
cClftlletion. The City will pro ... ·ide the successful bidder up to 200
print2d copies of the fin"-l Official Statement without charge,
with arrJ lIcditional copies to be turnished ~t the expense of the
successful bidder.
plc;C'-pSljRE CE'BT!F1rlt:TE. The City will deliver to the
purcMser -;:.! the Bonds a. certificate of an official of the City,
d:5.ted the date of Bond delivEry, stating that as of the date
thet'"e<:'t, to the best of the knowledge and belief of said :::fficia1,
the Officl.al 5t:ite .. r.~nt does not (:(1l".tain ;,in wltrue statement. of a
<::"'..J\te:ri31 fact or O"-,l;: to state arLy r:-.a.terial f."lct necessary in
l-,::::jer (0 t',ti\:-': thE' stClt.e:;~ents r;'.':l.:;le ~he:rein, in the light of the
ClieU--,,,",,3tances \..:"o!?'! .... -!llch t:lO:)' ..... ·€re T".ade, not rr.islead.lng, and
fllrtt',e-r ce:rtii::"i"g .l.-!c:J.t. the sigr,Clt.or/ l<'Jl" ...... ':;,; of no material adverse
ch.i.ng~ :n tht '_'C~dition {)f ::hot' Cit.y "'''chich '""o\lld mak~ it
'-"r.:re,~~Lm3bl", fCJ;--thi~ rlJr':-n'Js~r-,;)f the B'.)nJs Lo rely upon t.he
OfflC'i,:l St~tc':",":,nt: .101 ,~{·'nne-ct:i.I.)" '."itri the I-es·:ile of the Bonds.
INF0?Vij'YW'j ~"j:.r: ~;HE: F:eql1Cscs for information concel:ning
th~ City should 0e adtires&ed to:
Stur:e £. Yo'c.>ngb-2rg
5G California Street,
35th Floc!·
Sdo Franci~co, c;., 9"-111
Attr-., Ed Schilling or
So}-l.ail Ber.gali
IUS) "8l-1311
CI'n·:
Cit::' of Palo Alto
ci ty Hall
250 Ha~lton Avenue
Palo Alto, C~ 94301
,littn: E:mily Ha:rrison,
Director of Finance
14151 329-2533
GIV£.l,J' purs~ant to resolut i';)n of the Council of the City of
Pale Alto adopted Deceti'.ber 19,199-4.
Dated: Dece;;-Coer H, 199~
~f--------~,7C--~~-----------City Clerk
Extubit B
• }. 0 -
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t
onxcUL 8XD !'ON<
PROPOSAL FOil 'fU P'tJ1lCUSZ OF
H,450,OOO
eIn or PALO Al.!'O
(SAlr.!'A c:t.All comrn, CALXI'OJOl'lA)
tlTILI'I'T UVZ1I'01t BOWDS
1"5 8lDU.. A
Cit:.~ of Palo Alto
cle, Jonss Ht\ll H~ll &-'~nit€'
Bond Counsel
:four E.nb<,u·cade:rc C~Jlter, 19~:h [=,] c<n
San Francisco, Californi.3 9';J !.1
1415) -391-5780
We offer to purchase the $J,~~0.000 (it~' of F~lo Alto Utility
Revenue Bonds, 1995 Series l-. In ttle p:rinc'spc..l arK" ... ,m'.:S·, ill such
denom.inatioT"'s, dar-.ed February 1, 1995, r..;.tuIil-'~ en June 1 in the
years and b~arin·g interest as £0110 ...... ·',:
'l"2:urity Date rT ir,,:ip. 1 Jr;' .. r<>,. t i"':~1 ,; r it" :-'l' -':~ ,] l!~·.'-,"l C3i:
~ ~_-.... \-t ~ ~ =-c: .L.>:.l:
1996 5165,0·00 LOO~ $260.000
1997 1,5,000 2005 27~, OOG
1998 180,000 ,006 290,0 r)O
1999 190,(JOO 2007 31'.),000
2000 205,000 200. 335,000
2001 215,000 20G9 355,000
2002 230,000
2003 240,000 2020 $6,025,000
and to pay then-for the pt"incipaJ arn~)unt thereof. plus a
premium of $ (or r..iTiu::~ a disccunt of $-,..~:;-__ -:-.) .. plu",
interest accrued on such Bonds from February 1. 1995. to the date
of delivery thereof, which i~ estirnat~d to be February 15, 19~5.
Exhibit B
-11 -
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This proposal is made subject to dll the terms and conditions
of the Official Notice of Sale of such Bonds dated Dec~~er 19,
1994. all of which terms and conditions are made a part h~reof as
fully as though set forth in full in this proposal.
This proposal is subject to acceptance, in whole :n in part.
within thirteen (13) hours aftex-the expiraotioll of the time for
the receipt of proposals, as specified in said Official Notice of
Sale; we agree that it may not be ""'ithdrawn prior to the
expiration of said time.
There is enclosed heorewi th a (_l certified or cashier's
check or [_I surety bond for S25, 000.00 payable to the order of
th~ City of Palo Alto,
We have ( __ 1 have not t __ l verified the qualified D)nd debt
servicE' insurance ..... ·1 th ~:unifacts
Ne-..... s Service:.
Vie will t_l will not [_) obtain insurance. If so, •. ie'dill
obtdin insl..lran::'~E:' for B:;r;ds '[';"atllr
ing :in
Our computation ~d8 as pr{';· ... ider1 in the Officia.l '·:ot.!ce of
Sale, b'Jt~ not ,":onsti tuting any pert of the foregoing, of t.he tI-IJ~
interest cost to the City for the Bonds is ______ %, assu.!"!',ing
delivery of the Bonds on February 15 r 1995,
lf we are the succes.st\ll bidder, we will \1l ""'it-hin one hour
after being notified of the award of the J;londs, advise the City of
the initial public offering pricE::s of the Eonds and, (2) prior to
d::;.liver.l of the Bonds furnish a certificate, acct!ptable to 80nd
Counacl. as to the -issue price" of the Bonds within the meaninq
of section 12'}3 of the Internal Revenue Code of 1986. as Ame_nded.
If this is the purchasing bid, we hereby request that __
printed copies of the Official Statement pertaining to the Bonds
be furnished to us in acc(')rd4.'1ce with the tenns of said Official
Notice of Sale.
We represent that we have full and complete author-ity to
suh~t this bid on behalf of our bidding syndicate and that th~
undersigned will serve as the lead manaqe:r tor the group if the
scnds are awarded pursuant to this bid. -
Following is a list of the members of our account on whose
behalf this bid is made,
Exhibir 8
-12 -
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lIB
Respectfully submitted.
Name of Firm
By
Address
City State Zip
D6te of Submission:
If this is not the purchasing bid, the good fair,h deposit
chr:-c:, should be returned to (name, address and t.elephone nUi1'\berj;
Exhibit B
-13 -
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ZUIBIT C
$9,450,000
eIn OF PALO ALTO
(S1oJr'rA ('!.AU ('OllJlft. C'JoLIPOUU)
17TIL In UVJIIroIE 1I0Jll)S
1"5 SUUS A
NOTICE IS H"ERE'8Y GIVEN, pursuant to Callf()rnia Government
Code S~ction 53692, that the City of Palo Alto intends to sell, at
public sale-, $9,450,000 Utility Revenue Bonds, 1995 Series A.
Bids ..... ill be received on
~onday. ,January 23, 199'5
6nd ~wlth0Ut further advertising ~nd so long as a proposal
h..'\s ri':lt th~!.-E:toto:(E: been accepted by the Cu:.y of Pello Alto on
K.:nd~~ .. , Feb::.uacy 6, 1995), &C 10:00 ·~.m. (Pacific Standard 'rime)
a~_ t,::€ cffi·i.:e of tilE' b~)nd callns~'l to the City, Jcne3 Hall Hill &.
',-;j-,i te, Fou:r E!r.barc.:ldel'O Cen~er, 19th Floor. San franc i sec,
Ca11forn:ia 94111, and the sale \!Io'ill be awarded by the Council of
the \~ity of PC).lo .;!"lto within thirteen \13) hours aft.el.' t.hl3
expi nl.tion of time prescribed to:r the receipt of bids. The
official noticE: ot sale and officia.l statement pertaining to the
Bonds may be obt~ined from the City's financia,l advisor, Stone &
Youngberg, SO California Street., 35th Floo:c, San Francisco,
Calito'!"nia 9Jlll, telephone l·BS) 981-1314.
Dated: L~~~r 19. 1994
City Clerk
City of Palo Alto
'.
•
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,
i
$9,.50,000
CITY or .1ol.O AlifO
I SAlftll CloAJ'.1I COInlTY, CALlFOJIJOIA)
trl'IloIn U'\"'&B'l:TX aowes
1995 BUllIS A
NCTICE IS HEREBY GPlEN. pursu.5nt to Cali forni.a Government
Cod~ Section 1102, that the City of PlI:lo AltD ...... ill receive bids
for the s31~ of S9,~50FOOO Utility Revenue &.r,ds, 1995 Series A,
on
and Iwitho~t further ad\'ertisinq dnd so lODg as a p~cpo~al
has nc)t ther'2::of':,re be~"-F cc':;e~J:ed b: .. trliO-Ci ty of 1',::,.10 Alto (In
?"'.:O:l'J.a.'r', F'ebnlor'/ E" .LS?S), .Jt lli:O(1 d,;:-,. tP]/.:if:ic St.~nd3t"d 'Iii'!'.!";:)
Cit tr"2 officE' 0f. U~e :t:):l--J cC'cl,~~pl to 1;fL"" CjJY, ,Jones H.3.11 Hill &.
.... 'nitE', FO'.lt" E,-:.b~L:,)der,) C""!iLE.>l", 14t~l Fl'~:::'l·, San Fr~ncisco,
Cal:l.tQrni~ 94111, and the s;)l( ',",'ii1 tn;; a'yja,rdea. bv the CDuncil of
the Cit~' of Pdlo Alt,o .. ·::thin trnrteen (13) tlDU::-'5 after the
expir~tion of t.ime p!"e.'3=cr.1ced for the r-e,:eipt of bidS, The
official notice of sale and otfic~al ~t~t~~ent pertaining to the
Bonds r.ay be obtained t"--Or:1 the Cit')"s financial advi30r, Stone &.
Youngberg, 5~~ Californid Street, 3~,th FloClr, San Fr.a.ncisco,
Cnliforrlia Cfnll, t.ei..ephone (4,.1:» 9~1-1314.
By
City Cle:ck
City of Palo Alto
Exhibit D
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