HomeMy WebLinkAboutItem 4.12 Dublin Blvd Extension Bonds (2) CITY OF DUBLIN
AGENDA STATEMENT
City Council Meeting Date: April 27, 1992
SUBJECT: Dublin Boulevard Extension Assessment District -
Determination of Unpaid Assessments, Approval of Preliminary
Official Statement, Authorization to Issue Bonds, and Order
to Sell Bonds
Report by: Public Works Director Lee Thompson
EXHIBITS ATTACHED: 1) Resolution Determining Assessments Remaining Unpaid
(including Paid and Unpaid List of Assessments)
2) Preliminary Official Statement
3) Resolution Approving Preliminary Official Statement
4) Resolution Authorizing Issuance of Bonds (including
form of Limited Obligation Improvement Bond)
5) Resolution Ordering Sale of Bonds
6) Purchase Contract with Rauscher, Pierce, Refsnes
RECOMMENDATION: Adopt resolutions
FINANCIAL STATEMENT: The proposed improvement bonds will be issued with a face
value of $2,350,000. The firm of Rauscher, Pierce, Refsnes, Inc. , is the bond
underwriter for this issue and will withhold 2% of the issue as a bond discount to
cover their work in the process, the sale of the bonds, and their guarantee that
they will purchase the bonds if the bonds can't be sold on the open market. The
property owners within the District will pay off the bonds over 20 years (collected
through property tax bills) with the interest at the sale market rate.
DESCRIPTION: This is the next step in the process for sale of the bonds
to finance a portion of the Dublin Boulevard Extension.
Following recordation of the Engineer's Report and Assessment Diagram approved at
the February 24th City Council meeting, the property owners to be assessed were
allotted 30 days by law to pay the amount of the assessment. Any property owner who
elected to pay the amount of the assessment would then not be included in the
District, and the bonds representing that assessment would not be issued. None of
the property owners paid their assessment outright. . The paid/unpaid list indicates
that all property owners are "unpaid." Resolution Exhibit 1 declares and transmits
the unpaid assessments to the County Auditor for collection.
The Preliminary official Statement is a document prepared by the City's Bond
Underwriter, Rauscher, Pierce, Refsnes, which provides information regarding the
assessment district and bonds and the properties to be assessed.
Resolution Exhibit 3 approves the Preliminary Official Statement, subject to the
appraised value of the assessed parcels being a minimum of three times the
assessments on each individual parcel.
Resolution Exhibit 4 authorizes issuance of the bonds for this assessment district
and includes as "Exhibit B" a typed copy of the language shown on the Limited
Obligation Improvement Bonds themselves. Resolution Exhibit 5 orders sale of the
bonds.
Exhibit 6 is the Purchase Contract with Rauscher, Pierce, Refsnes.
Staff recommends that the City Council adopt the four resolutions. This action will
allow Staff, Legal Counsel, and the Bond Underwriter to proceed with the sale of the
bonds.
a:(dbx)\ad\aasthond ---
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ITEM NO 20 COPIES TO: Bob Brunsell CITY CLERK
Pam Babbe, RPR FILE EEO-TQ1J
RESOLUTION NO.
RESOLUTION DETERMINING ASSESSMENTS REMAINING UNPAID
DUBLIN BOULEVARD EXTENSION ASSESSMENT DISTRICT 91-1
CITY OF DUBLIN
The City Council of the City of Dublin resolves:
The City Treasurer has filed a list of all payments received
on account of assessments levied in Dublin Boulevard Extension
Assessment District 91-1, and a list of all assessments or portions
of assessments unpaid after thirty (30) days following the
recordation of the assessments.
A copy of the Paid and Unpaid List is attached to this
resolution as Exhibit A and included in it. The City shall issue
improvement bonds under the provisions of the Improvement Bond Act
of 1915 of the State of California upon the security of the
assessments . shown as unpaid on the attached list.
The City Clerk shall transmit a copy of this resolution to the
County Auditor. The County Auditor is requested to comply with the
provisions of Section 8682 of the Streets and Highways Code in the
collection of installments of these assessments on the assessment
roll for taxes.
*
PASSED, APPROVED, AND ADOPTED this 27th day of April, 1992, by
the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
MAYOR
ATTEST:
City .Clerk
tip , .. ,
�eSD(,u-Ezax 'arc �v►��-s,
PAID AND UNPAID LIST
OF ASSESSMENTS IN
DUBLIN BOULEVARD EXTENSION ASSESSMENT DISTRICT 91-1
CITY OF DUBLIN
I HEREBY CERTIFY that the attached list of Paid and Unpaid
Assessments correctly reflects (1) all amounts received by me on
account of assessments in Dublin Boulevard Extension Assessment
District 91-1 within thirty (30) days after the assessments became
due and payable and (2) all amounts remaining unpaid on each of the
assessments in Dublin Boulevard Extension Assessment District 91-
1, City of Dublin, Alameda County, California. L
Executed at nn California, on Zj 1992 .
PHILLIP MOLINA, City Treasurer,
City of Dublin, Alameda County,
California
EXH1BiTA
OF 2�so�uz�aJ
04/16/92
Page 1
PAID AND UNPAID LIST
CITY OF DUBLIN
Dublin Blvd. Extension Assessment District 91-1
-----------------------------------------------------------------------
Assessment Assessment Cash Amount Unpaid
Number Amount Paid Credited Balance
-------------------------------------------------------------------------
1 $ 448 , 270. 00 $ 0. 00 $ 0. 00 $ 448, 270. 00
2 334 ,708 . 00 0. 00 0. 00 334 , 708 . 00
3 340, 685. 00 0. 00 0. 00 340, 685. 00
4 264, 977 . 00 0. 00 0. 00 264 , 977 . 00
5 195, 247 . 00 0. 00 0. 00 1951247 . 00
6 314 , 785. 00 0. 00 0. 00 314 , 785. 00
7 135 , 171. 00 0. 00 0 . 00 135, 171. 00
8 101, 378 . 00 0. 00 0. 00 101, 378 . 00
9 0. 00 0. 00 0 . 00 0. 00
10 144 , 990 . 00 0. 00 0. 00 144 , 990. 00
11 69, 789 . 00 0. 00 0. 00 69, 789 . 00
12 0. 00 0. 00 0. 00 0. 00
13 0. 00 0. 00 0. 00 0. 00
$ 2 , 350, 000. 00 $ 0. 00 $ 0 . 00 $ 2 , 350, 000. 00
PRELIMINARY OFFICIAL STATEMENT DATED , 1992
NEW ISSUE NOT RATED
In the opinion of Bond Counsel, under existing laws, regulations, rulings and judicial decisions and
assuming compliance with certain covenants described herein, the interest on the Bonds is
excluded from gross income for federal income tax purposes and is exempt from California
personal income taxes. In the opinion of Bond Counsel, such interest is not a specific
preference item for purposes of the federal individual or corporate alternative
minimum taxes, although it is included in adjusted current earnings in
calculating corporate alternative minimum taxable income.
See 'TAX EXEMPTION"herein.
$2,350,000*
LIMITED OBLIGATION IMPROVEMENT BONDS
CITY OF DUBLIN, CALIFORNIA
DUBLIN BOULEVARD EXTENSION ASSESSMENT DISTRICT 91-1
SERIES 91-1
(Bank Qualified)
Dated: Date of Delivery Due: September 2 as shown below
The Bonds are being issued by the City of Dublin (the "City') pursuant to provisions of the
Improvement Bond Act of 1915 (Division 10 of the California Streets and Highways Code). All of
the construction of improvements shall be undertaken as provided by the Municipal Improvement Act
of 1913 (Division 12 of the California Streets and Highways Code).
The Bonds are issued only as fully registered Bonds in denominations of $1,000 or any integral
multiple thereof. Principal of, and premiums, if any, on the Bonds are payable at Bank of America
National Trust and Savings Association, San Francisco, California, Paying Agent, Registrar, and
Transfer Agent (the "Agent'). Interest is payable by check or draft mailed to the registered Owners
thereof semiannually on March 2 and September 2 commencing on March 2, 1993.
The Bonds are subject to redemption on any March 2 or September 2 in advance of maturity
upon giving 30 days prior notice and upon payment of the principal and interest accrued thereon to
the date of redemption or date of payment if surrendered earlier, plus a redemption premium of three
percent (3%) of the principal amount of the bonds to be redeemed. See 'THE BONDS -
Redemption" herein.
Under the provisions of the Improvement Bond Act of 1915, installments of principal and interest
sufficient to meet annual debt service are included on the regular county tax bills sent to owners of
property against which there are unpaid Assessments. These annual installments are to be paid into
the Redemption Agency Fund, to be held by the City and used to pay debt service on the Bonds as
it becomes due. See 'SECURITY FOR THE BONDS - Assessment Installments" herein.
To provide funds for payment of the Bonds and the interest thereon as a result of any delinquent
installments, the City will establish a Special Reserve Fund, to be held by the Agent, and deposit
therein Bond proceeds in the original amount of five percent (5%) of the initial principal amount of
the Bonds. The City's liability to advance funds to the Redemption Agency Fund in the event of
delinquent installments shall not exceed the balance in the Special Reserve Fund. See "SECURITY
FOR THE BONDS - The Special Reserve Fund" herein. Additionally, the City has covenanted to
initiate judicial foreclosure under certain conditions in the event of a delinquency, and to commence
the procedure not later than the succeeding October 1.
The Bonds are not secured by the general taxing power of the City, the County of Alameda, the
State of California, or any of its political subdivisions, nor is the full faith and credit of the City,
the County of Alameda, the State of California, or any of its political subdivisions pledged to the
payment of the Bonds. The interest on and principal of the Bonds are payable solelv from monevs
1
*Preliminary, subject to change. _..:., ,_.. ,- a , _,....
?2Eutit �34R-Y CFRC'GA L -S-ATEMI✓I)
in the Redemption Agen.., r'und established In connection with .___ issuance of Bonds and are
- secured by unpaid Assessments and the Special Reserve Fund established with Bond proceeds. The
City shall not be obligated to use available funds (including any surplus funds) Io purchase
delinquent parcels or pay the delinquent installments and future Installments of the Assessments
on delinquent parcels. The owners or the Bonds must assume, therefore, that the sole source of
funds for the payment of the Bonds will be the Redemption Agency Fund and the Special Reserve
Fund,
THE BONDS ARE NOT RATED AND HAVE A SUBSTANTIAL DEGREE OF RISK. SEETHE
SECTION OF THIS OFFICIAL STATEMENT ENTITLED 'SPECIAL RISK FACTORS" FOR A
DISCUSSION OF SPECIAL FACTORS WHICH SHOULD BE CONSIDERED, IN ADDITION TO .
THE OTHER MATTERS SET FORTH HEREIN, IN EVALUATING THE INVESTMENT QUALITY
OF THE BONDS.
This cover page contains certain information for quick reference only. It is not a summary of
this issue. Thus, investors must read the entire Official Statement to obtain information essential to
the making of an informed investment decision. ..
MATURITY SCHEDULE*
Maturity Principal_ Interest Maturity. Principal . Interest
(September'2) Amoun t Rate September 2) Amount ,Rate.
1994 $63.000 % 2001 $98.000 °lo
1995 661000 2002 105,000
1996. 70,000 2003 113,000
1997 75,000 2004 121,000
1998 80,000 2005 131,000
1999 86,000 .2006 141,000
2000 911000 2007 152,000
$9:58,000 % Term Bonds Due September 2, 2012.
(Price 100%)
The Bonds are offered when, as and if issued and delivered to the Underwriter subject to the
approval as to their legality by Sturgis, Ness, Brunsell& Sperry, a professional corporation, Emeryville,
Califorilia. it is expected that the Bonds in temporary or def attivo form will be available for delivery
in New Yorl� New York on or about 1992.
Rauscher Pierce Refsnes, Inc.
Dated: 1992.
*Preliminary, subject to change.
CITY OF DUBLIN, CALIFORNIA
CITY COUNCIL
Peter W. Snyder
Mayor
Linda J. Jeffery
Vice Mayor
David C. Burton
Lisbeth A. Howard
Paul C. Moffatt
CITY STAFF
Richard C. Ambrose, City Manager
Paul S. Rankin, Assistant City Manager
Phillip S. Molina, Finance Director
Lee Thompson, Director of Public Works
Elizabeth Silver, City Attorney
PROFESSIONAL SERVICES
Sturgis, Ness, Brunsell & Sperry
Emeryville, California
Bond Counsel
John H. Heindel
Saratoga, California
Engineer of Work
Hector, Leslie and Associates
Walnut Creek, California
Appraiser
Bank of America
National Trust and Savings Association
San Francisco, California
Registrar, Transfer and Paying Agent
i
No dealer, broker, salesperson or other individual has been authorized by the Underwriter
to give any information or to make any representations in connection with the offer or sale of the
Bonds, other than those contained in the Official Statement, and, if given or made, such other
information or representations must not be relied upon as having been authorized by the Underwriter.
The Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor
shall there be any sale of the Bonds described herein by any person in any jurisdiction in which it is
unlawful for such a person to make such offer, solicitation or sale. The information set forth herein
has been obtained by the Underwriter from the City and from certain other sources which are
believed to be reliable, but is not guaranteed as to accuracy or completeness. The summaries and
references to the Bond Act, the Resolution and to other statutes and documents in this Official
Statement do not purport to be comprehensive or definitive, and are qualified in their entireties by
reference to each such statute and document. The information herein is subject to change without
notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under
any circumstances, create any implication that there has been no change in the affairs of the City or
the District since the date hereof.
The information set forth herein has been furnished by the City and from certain other
sources which are believed to be accurate and reliable, but is not guaranteed as to accuracy or
completeness. Statements contained in this Official Statement which involve estimates, forecasts, or
other matters of opinion, whether or not expressly so described herein, are intended solely as such
and are not to be construed as representations of fact. Further, the information and expressions of
opinion contained herein are subject to completion or amendment.
The Official Statement is not to be construed as a contract between the City or the
Underwriter and the purchasers or owners of any of the Bonds.
Neither the full faith and credit nor the taxing power of the City, the County of Alameda, the
State of California, or any political subdivision thereof is pledged to the payment of the Bonds.
The information set forth in this Official Statement, including information in the section
herein entitled 'SPECIAL RISK FACTORS" should be read in its entirety.
In connection with this bond underwriting, the underwriter may overallot or effect
transactions which stabilize or maintain the market price of the Bonds described herein at a level
above that which might otherwise prevail in the open market. Such stabilizing, if commenced, may
be discontinued at any time. The underwriter may offer and sell the Bonds described herein to
certain dealers and dealer banks and banks acting as agent and others at prices lower than the
public offering prices stated in this Official Statement and said public offering prices may be
changed from time to time by the underwriter.
ii
TABLE OF CONTENTS
Page
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
TheCity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
TheDistrict . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
The Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
TheAppraisal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Other Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
THEBONDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Description of the Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Authority for Issuance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Establishment of Special Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Use of Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Denominations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Redemption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Refunding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Defeasance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Debt Service Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
SECURITY FOR THE BONDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Assessment Installments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Special Reserve Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Investment of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Limited Obligations of the City Upon Delinquency . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Covenant to Commence Superior Court Foreclosure . . . . . . . . . . . . . . . . . . . . . . . . . . 8
TheAppraisal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Direct and Overlapping Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
SPECIAL RISK FACTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Limited City Obligation Upon Delinquency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
PropertyTaxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Factors Which May Affect Land Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Concentration of Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Disclosures to Future Purchasers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Failure to Develop Properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Appraised Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Parity Taxes and Special Assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Tax Delinquencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Bankruptcy and Foreclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
THE ASSESSMENT DISTRICT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
TheDistrict . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . . . . . . . . . 14
The Property Owners. . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . . . . . . . . . . 14
The Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Method of Spreading Assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Environmental Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Land Use and Zoning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
iii
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Location Map
OFFICIAL STATEMENT
$2,350,000*
LIMITED OBLIGATION IMPROVEMENT BONDS
CITY OF DUBLIN, CALIFORNIA
DUBLIN BOULEVARD EXTENSION ASSESSMENT DISTRICT 91-1
SERIES 91-1
(Bank Qualified)
INTRODUCTION
The bonds designated Limited Obligation Improvement Bonds, City of Dublin, California, Dublin
Boulevard Extension Assessment District 91-1, Series 91-1 (the 'Bonds'), are being issued by the City
of Dublin (the "City') pursuant to its Resolution of Intention No. 135-91, adopted December 23, 1991
by the City Council of the City and proceedings related thereto, and its Resolution of Issuance No.
_ adopted LLate authorizing the issuance of the Bonds (the 'Resolution'), and pursuant to the
provisions of the Municipal Improvement Act of 1913 (the 'Improvement Act'), the Improvement
Bond Act of 1915 (the 'Bond Act'), Division 10 of the Streets and Highways Code of the State of
California, and all laws amendatory thereof or supplemental thereto.
The Bonds are not general obligations of the City and neither the faith and credit nor the taxing
power of the City, the County of Alameda, the State of California, or any political subdivision hereof
is pledged to the payment of the Bonds. The inclusion of information regarding the City in this
Official Statement does not imply that the City has any obligation for payment of the Bonds from any
of its funds.
The Bonds are issued only as fully registered Bonds in denominations of $1,000 or any integral
multiple thereof. Principal of, and premiums, if any, on the Bonds are payable at Bank of America
National Trust and Savings Association, San Francisco, California, Paying Agent, Registrar, and
Transfer Agent (the "Agent'). Interest is payable by check or draft mailed to the registered Owners
thereof semiannually on March 2 and September 2 commencing on March 2, 1993.
This Introduction is not a summary of this Official Statement. It is only a brief description of
and guide to, and is qualified by, more complete and detailed information contained in the entire
Official Statement, including the cover page and appendices hereto, and the documents summarized
or described herein. A full review should be made of the entire Official Statement. The offering of
the Bonds to potential investors is made only by means of the entire Official Statement.
The City
The City of Dublin is located in the Tri-Valley area of Alameda County. The City is bordered
to the south by the City of Pleasanton and to the north by the City of San Ramon. The City is 35
miles southeast of San Francisco, 395 miles north of Los Angeles and is within a twenty-five minute
drive from San Jose and Oakland. Interstate Freeways 580 and 680 intersect in Dublin and allow easy
access to the stable economy of the San Francisco Bay Area.
The City was incorporated on February 1, 1982. The City Council has five members each elected
at large for a term of four years. The Mayor is selected by the City Council from among its members.
1
The District
Dublin Boulevard Extension Assessment District (the 'District') was created by the City pursuant
to the Improvement Act. The District consists of developed and undeveloped land zoned for
commercial and industrial use and is owned by four property owners. The Assessment calculations
are based on the benefits to be derived from the proposed improvements (see 'THE ASSESSMENT
DISTRICT - The Improvements') by the properties within the District (the "Assessment Parcels').
The Improvements
The Bonds are being issued to fund the acquisition of right-of-way and to construct certain street
improvements. See 'THE BONDS - Purpose of Issue" and 'THE ASSESSMENT DISTRICT - The
Improvements" herein.
The Appraisal
An appraisal of the land within the District (the "Appraisal') has been prepared by Hector Leslie
and Associates (the "Appraiser'). According to the Appraisal, the aggregate value of the real property
assessed in the District as of ' is $ . The Appraisal is based upon
a variety of assumptions and limiting conditions. See 'SECURITY FOR THE BONDS - The
Appraisal" herein.
The ratio of the aggregate land value to the total confirmed unpaid assessment lien for the
respective parcels assessed in the District is times. A summary of the Appraisal, which
contains conclusions of retail market value estimates and sets forth assumptions of the Appraisal, is
contained in "APPENDIX B - SUMMARY OF THE APPRAISAL." A complete copy of the Appraisal .
is available for inspection at the office of the City Clerk of the City during the period of the offering.
Other Information
This Official Statement and any continuing disclosure documents of the City are intended to be
made available through the office of the City Clerk. The City has not, however, entered into any
contractual commitment to provide information on a continuing basis to investors or any other party,
except to the extent such information is required to be provided pursuant to the City's contracts with
nationally recognized statistical or rating organizations.
Copies of documents referred to herein and information concerning the Bonds are available from
the office of the City Clerk of the City of Dublin, 100 Civic Plaza, Dublin, California 94568 (510)
833-6650. The City may impose a charge for copying, mailing, and handling.
THE BONDS
Description of the Bonds
The Bonds are serial and term bonds and mature in various amounts on each September 2,
commencing on September 2, 1993 and ending on September 2, 2012. Interest is payable commencing
on March 2, 1993, and semiannually thereafter on March 2 and September 2 of each year until
maturity (each an 'Interest Payment Date').
2
Authority for Issuance
The proceedings for the assessment and issuance of the Bonds were initiated by adoption of
Resolution of Intention No. 135-91 by the City Council of the City on December 23, 1991 and the
proceedings were conducted pursuant to the Improvement Act. The Bonds are being issued pursuant
to Resolution of Issuance No. (the 'Resolution'), authorizing the issuance thereof adopted by
the City Council of the City on fdatel.
Establishment of Special Funds
Upon receipt of the proceeds of sale of the Bonds on the Closing Date, the proceeds thereof
shall be forthwith set aside, paid over, deposited, and invested by the City and the Agent, as set forth
in the Bond Purchase Agreement, Receipt of Proceeds, and the Resolution, into the following funds:
Capital Projects Fund. The Resolution creates a separate fund to be known as the "Limited
Obligation Improvement Bonds, City of Dublin, Dublin Boulevard Extension Assessment District 91-1,
Series 91-1 Capital Projects Fund" (the "Capital Projects Fund'), which will be held in trust by the
City. Disbursements from the Capital Projects Fund will be subject to the provisions of the
Resolution. Any surplus remaining after payment of all said costs and expenses will be used as set
forth in the proceedings pursuant to the Resolution, and applicable provisions of the Bond Act and
the Capital Projects Fund shall be closed.
Special Reserve Fund. The Resolution creates a special fund known as the 'Limited Obligation
Improvement Bonds, City of Dublin, Dublin Boulevard Extension Assessment District 91-1, Series 91-1
Special Reserve Fund" (the "Special Reserve Fund'), which will be held by the Agent. The amount
of the Special Reserve Fund will not exceed the Reserve Requirement. The moneys in the Special
Reserve Fund will constitute a trust fund for the benefit of the registered Owners of the Bonds and
will be administered by the Agent in accordance with and pursuant to the provisions of the Resolution
and the Bond Act; provided that proceeds from redemption or sale of the properties with respect to
which payment of delinquent Assessments and interest thereon was paid from the Special Reserve
Fund, will be credited to the Special Reserve Fund; and provided further that for the purposes of
maintaining the Reserve Requirement and providing for any required reduction of the amount of
money in the Special Reserve Fund during the term of the Bonds pursuant to Section 8887 of the
Improvement Bond Act of 1915, Division 10 of the Streets and Highways Code of California, and
applicable provisions of the Tax Code and the Tax Regulations, all proceeds from investment of
moneys in the Special Reserve Fund in excess of the Reserve Requirement shall be transferred to the
Redemption Agency Fund and used for the advance retirement of bonds or as a credit on the next
installment of assessment payments.
Redemption Agency Fund. The Resolution creates a special fund known as the "Limited
Obligation Improvement Bonds, City of Dublin, Dublin Boulevard Extension Assessment District 91-1,
Series 91-1 Redemption Agency Fund" (the 'Redemption Agency Fund'), which will be held in trust
by the City. All payments of principal and interest installments on the assessments, together with
penalties, if any, shall be deposited in the Redemption Agency Fund. The City shall deposit into the
Redemption Agency Fund, from the proceeds of the sale of the bonds, the amount of $117,500, which
shall be applied against the March 2, 1993 payment of interest on the bonds.
3
Use of Proceeds
The proceeds of the Bonds will be used to fund the construction of public improvements
consisting of the construction of the extension of Dublin Boulevard, the widening of Dougherty Road
and the construction of one-half of Chabot Channel Road, together with the acquisition of the
necessary right-of-way to construct these improvements. Bids for construction were received by the
City in February, 1992. The contract was awarded on February 24, 1992 to Les McDonald
Construction, Inc. Construction completion is estimated for September 30, 1992. This work is
required for two reasons: first, as a Federal requirement to provide frontage road access to the
recently completed Hacienda interchange; and second, to provide access to the approved East
Dublin/Pleasanton BART (Bay Area Rapid Transit District) station located at Interstate 580 between
the Hacienda Interchange and the Dougherty Road Interchange.
Construction of the extension of BART from the existing Bayfair Station in San Leandro will
proceed east in the medians of I-238 and I-580, terminating in the Dublin/Pleasanton area. The
following table summarizes the project status of the 12.8 mile Dublin/Pleasanton Extension, which
is illustrated on the map on the following page.
Item Date
Environmental Impact Report approved 2/90
by BART Board of Directors
Dublin/Pleasanton Extension Project 2/90
adopted by BART Board of Directors
Preliminary engineering 3/90
Final design In Progress
Right-of-way acquisition In progress
Start of Construction 9/91
Scheduled start of service Late 1995
During the offering of the Bonds, the complete Engineer's Report is on file and available for
inspection in the office of the City Clerk. See also the section entitled 'THE ASSESSMENT
DISTRICT - The Improvements" herein.
Payable
Both principal of, and redemption premium; if any, on the Bonds are payable in lawful money
of the Bank of America National Trust and Savings Association, San Francisco, California, or its
successor, as Registrar, Transfer Agent, and Paying Agent (the "Agent'). Interest is payable by check
or draft mailed to the owner of record at the address as shown by the registry records of the Agent
or to such address as may have been filed with the Agent for that purpose, as of the fifteenth day next
preceding an Interest Payment Date.
Registration
The Bonds will be issued only as fully registered bonds.
The Bonds may be transferred or exchanged at the aforesaid office of the Agent. For every
exchange or transfer of any Bonds, the Agent may make a charge sufficient to reimburse itself for any
tax or governmental charge required to be paid with respect to such exchange or transfer, and may
4
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make a charge equal to the customary fee charged by the Agent for such transfers or exchanges.
If any Bond is mutilated, lost, stolen, or destroyed, the Agent shall execute a new Bond or Bonds
of authorized denominations in replacement thereof in the same aggregate principal amount and of
the same maturity, as the case may be. In the case of a lost, stolen, or destroyed Bond, the Agent
shall require, and in the case of any mutilated Bond may require, satisfactory indemnification prior
to authenticating a new Bond. The Agent will charge the owners of the Bonds for its reasonable fees
and expenses in connection with replacing mutilated, lost, stolen, or destroyed Bonds.
Denominations
The Bonds will be issued in multiples of $1,000 denominations or any integral thereof, except that
one bond may contain any odd amount.
Redemption
Any bond, or any portion thereof in the amount of$1,000 or any integral multiple thereof, may
be called for redemption prior to maturity on any March 2 or September 2 upon payment of 103
percent (103%) of par value, plus accrued interest to the date of the redemption or date of payment
if surrendered earlier. No interest will accrue on a bond beyond the March 2 or September 2 on
which said bond is called for redemption. If a bond is presented for payment and payment is refused
because of lack of available funds, however, the bond will continue to accrue interest. Notice of
redemption will be given by registered or certified mail or personal service at least 30 days prior to
the redemption date. The provisions of part 11.1 of the Bond Act are applicable to the advance
payment of Assessments and to the calling of the Bonds.
Refunding
The Bonds may also be subject to refunding in accordance with provisions of the California
Streets and Highways Code.
Defeasance
The Bonds and the original Assessments shall-remain in full force and effect and the Bonds shall
be secured by the original Assessments until (1) the Bonds mature, (2) Assessments are prepaid and
the Bonds are redeemed, (3) apportionment of the original Assessment occurs pursuant to the Bond
Act, or (4) the original Assessments are superseded and supplanted by reassessments and refunding
bonds issued pursuant to Division 11 or Division 11.5 of the Streets and Highways Code, at which time
the refunding escrow shall become the security for any outstanding Bonds not exchanged for refunding
bonds. Any proceeds of sale of any refunding bonds or authorized investment securities purchased
with such proceeds may be deposited in escrow, trust, or safekeeping with a bank or trust company
and shall be secured in accordance with the laws applicable to funds of the City and shall be invested
in Federal Securities.
5
Sources and Uses of Funds
The uses of funds shown below relate to the total Assessments levied in the District.
SOURCES:
Par Value
USES:
Capital Projects Fund 1,986,394.79
Incidcntals(l) 128,605.21
Capitalized Interest Fund 117,500.00
Special Reserve Fund(2) _ 117,500.00
TOTAL TO ASSESSMENT $2,350,000.04
(1) Incidentals include legal, administrative, printing, underwriting, and other costs associated with
the issuance of the Bonds,
(2) Investment earnings to remain in the Special Reserve Fund until the total amount deposited in
the Special Reserve Fund equals the Reserve Requirement.
*Preliminary, subject to change.
Debt Service Schedule
The table below sets forth the annual debt service on the Bonds:
Maturity
September 2 P l_S n6ya InttC e9_t Total
1994 5 63,000
1995 66,000
1996 70,000
1997 75,000
1998 80,000
1999 86,000
2000 91,000
2001 98,000
2002 105,000
2003 113,000
2004 121,000
2005 131,000
2006 141,000
2007 152,000
2008 163,000
2009 176,000
2010 191,000
2011 206,000
2012 222,000
TOTALS 52,350,000 $ S
SECURITY FOR THE BONDS
Assessment Installments
The Bonds are issued and secured by the unpaid Assessments together with interest thereon, and
6
SECURITY FOR THE BONDS
Assessment Installments
The Bonds are issued and secured by the unpaid Assessments together with interest thereon, and
said unpaid Assessments together with interest thereon constitute a trust fund for the redemption and
payment of the principal of the Bonds and interest thereon. In addition, all the Bonds are secured
by any moneys in the Redemption Agency Fund and the Special Reserve Fund created pursuant to the
Resolution and by the unpaid Assessments levied to provide for payment of the principal of and
interest on the Bonds. Principal of and interest on the Bonds are payable exclusively out of said
Redemption Agency Fund into which all unpaid Assessments will be deposited by the City.
Although the unpaid Assessments constitute fixed liens on the lots and parcels assessed, they do
not constitute a personal indebtedness of the respective owners of said lots and parcels. Furthermore,
there can be no assurances as to the ability of the owners to pay the unpaid Assessments.
The unpaid Assessments are payable in annual installments, together with interest on the
declining balances on the tax roll on which general taxes on real property are collected, and are
payable and become delinquent at the same time and in the same proportionate amounts and bear the
same proportionate penalties and interest after delinquency as do said general taxes.
For additional pertinent information, the reader is referred to the sections herein entitled
"SPECIAL RISK FACTORS."
Special Reserve Fund
Out of the proceeds of the sale of Bonds, the City will set aside the Special Reserve Fund in an
amount equal to five percent (5%) of the par value of the Bonds. The Special Reserve Fund will be
held by the Agent and will constitute a trust fund for the benefit of the Bondowners. The Special
Reserve Fund will be maintained, used, transferred, reimbursed, and liquidated as follows:
(a) Whenever there are insufficient funds in the Redemption Agency Fund to pay the next
maturing installment of principal of or interest on the Bonds, an amount necessary to
make up such deficiency will be transferred from the Special Reserve Fund, to the extent
of available funds, to the Redemption Agency Fund. The amounts so advanced will be
reimbursed from the proceeds of redemption or sale of the parcel for which payment of
delinquent installments of the Assessments and interest thereon has been made from the
Special Reserve Fund.
(b) If any Assessment or any portion thereof is prepaid prior to the final maturity of the
Bonds, the amount of principal of the Assessment to be prepaid will be reduced. The
proportional reduction of the Assessment shall equal the ratio of the total amount
initially provided for the Special Reserve Fund to the total amount represented by bonds
in the improvement proceedings. The reduction in the amount of principal prepaid shall
be compensated for by a transfer of like amount from the Special Reserve Fund to the
Redemption Agency Fund.
(c) All proceeds from investment of moneys in the Special Reserve Fund will remain in the
Special Reserve Fund until the balance therein is equal to, as of any date of calculation,
an amount not to exceed $164,000 (the 'Reserve Requirement'). Thereafter, all such
7
proceeds in excess of the Reserve Requirement will be transferred to the Redemption
Agency Fund.
(d) When the balance in the Special Reserve Fund is sufficient to retire all Bonds then
outstanding (whether by advance retirement or otherwise), the amount of the Special
Reserve Fund will be transferred to the Redemption Agency Fund, and the remaining
installments of principal and interest not yet due will be canceled without payment, and
the Special Reserve Fund will be liquidated upon the retirement of the Bonds.
Investment of Funds
Moneys in the Capital Projects Fund, Redemption Agency Fund, and the Special Reserve Fund
will, whenever practicable, be invested in Authorized Investments, maturing on a date prior to which
such moneys are expected to be required. Any income therefrom or interest thereon will accrue to
and be deposited in the fund from which said moneys were invested, subject to the provisions of the
Resolution.
Limited Obligations of the City Upon Delinauencv
Under the Bond Act, the City can determine, prior to issuing the Bonds, whether or not it will
obligate itself to advance available funds from the City treasury to cure any deficiency which may
occur in the Redemption Agency Fund.
The City has determined, pursuant to Section 8769(b) of the Bond Act, that it will not obligate
itself to advance available funds from the City treasury to cure any deficiency which may occur in
the Redemption Agency Fund.
If a delinquency occurs in the payment of any Assessment installment, the City has a duty to
transfer from the balance, if any, in the Special Reserve Fund to the Redemption Agency Fund, the
amount of the delinquency. This duty of the City continues during the period of delinquency, until
reinstatement, redemption, or sale of the delinquent property. If, during the period of delinquency,
there are insufficient funds in the Special Reserve Fund to meet all such delinquencies, a delay may
occur in payment to the Owner of the Bonds or there may be insufficient funds to make such
payments. See also the following section entitled "SECURITY FOR THE BONDS - Covenant to
Commence Superior Court Foreclosure" herein.
Covenant to Commence Superior Court Foreclosure
The Bond Act provides that in the event any Assessment or installment is not paid when due,
the City may order the institution of a court action to foreclose the lien of the unpaid Assessment.
In such an action, the real property subject to the unpaid Assessment may be sold at judicial
foreclosure sale. This foreclosure sale procedure is not mandatory. In the Resolution, however, the
City covenants with and for the benefit of the Owners of the Bonds that it will order, and cause to
be commenced and thereafter diligently prosecuted, an action in the Superior Court to foreclose the
lien of any Assessment or installment thereof not paid when due, pursuant to and as provided in
sections 8830 to 8836, inclusive, of the Bond Act, subject to the following procedures:
Not later than the succeeding October 1, the City will institute civil actions in Superior Court
to foreclose the lien of Assessment on all properties delinquent in an amount of $1,000 or more
8
(including penalties and interest) if the sum of uncured Assessment delinquencies exceeds five percent
(5%) of the Assessments posted to the tax roll for the preceding fiscal year, and if the amount in the
Special Reserve Fund is less than the Reserve Requirement, and thereafter will vigorously prosecute
the same to completion. The Assessments levied in these proceedings shall have the same lien priority
as ordinary ad valorem property taxes.
All of the foregoing notwithstanding, the City may, in any particular case, elect to advance the
amount of any delinquency (excluding penalties and interest) to the Redemption Agency Fund. In that
event, the City need not initiate the foreclosure"action. In such a case, the City may reimburse itself
from the payment of delinquent Assessments that are paid on the property for its advance plus
penalties and interest.
Prior to July 1, 1983, the right of redemption from foreclosure sales was limited to a period of
one year from the date of sale. Under legislation, effective July 1, 1983, the statutory right of
redemption from such foreclosure sales has been repealed. A period of 120 days must elapse after
a court adjudges and decrees a lien against the lot or parcel or land covered by an Assessment, before
the notice of the sale of such parcel can be given. Furthermore, if the purchaser at the sale is the
judgment creditor, i.e. the City, an action may be commenced by the delinquent property owner within
six months after the date of sale to set aside such sale. The constitutionality of the aforementioned
legislation which repeals the one-year redemption period has not been tested and there can be no
assurance that, if tested, such legislation will be upheld.
In the event such Superior Court foreclosure or foreclosures are necessary, there may be a delay
in payments to Bondowners pending prosecution of the foreclosure proceedings and receipt by the City
of the proceeds of the foreclosure sale; it is also possible that no bid for the purchase of the
applicable property would be received at the foreclosure sale. See the section entitled 'SPECIAL
RISK FACTORS" herein.
The Aaaraisal
An appraisal of the land within the District (the "Appraisal') has been prepared by Hector Leslie
and Associates (the "Appraiser'). According to the Appraisal, the aggregate value of the real property
assessed in the District as of , is $ . The Appraisal is based
upon a variety of assumptions and limiting conditions. Such assumptions and limiting conditions
include the following:
A. Preparation was based upon available data that appeared to be reasonably correct.
B. Information in the Appraisal was carefully checked and is believed to be correct. In the
event that any inaccuracies or inconsistencies occur, the appraiser reserves the right to
review his final value conclusion.
C. No responsibility is assumed for legal matters. It is presupposed that title to the
property is marketable and that it is free and clear of all liens and encumbrances unless
otherwise specified in the body of this report.
D. The fee paid for this appraisal is in no way contingent upon the final value conclusion
and the appraiser states that he had no direct or indirect interest in the subject property.
E. Parcel area calculations are based upon the Alameda County Assessor's records and the
engineering firm of Wilsey and Ham, as to the size of the subject parcels.
9
F. A legal description or title report for the subject parcels under appraisal was furnished.
Supplied data was relied upon in the appraisal.
G. Unless otherwise stated, the existence of hazardous substances, including without
limitation asbestos, polychlorinated biphenyls, petroleum leakage, or agricultural
chemicals, which may or may not be present on the property, or other environmental
conditions, were not called to the attention of nor did the appraiser become aware of
such during the appraiser's inspection. The appraiser has no knowledge of the existence
of such materials on or in the property unless otherwise stated. The appraiser, however,
is not qualified to test that such substances, such as asbestos, urea formaldehyde, foam
insulation, or other hazardous substances or environmental conditions, may affect the
value of the property. The value estimated is predicated on the assumption that there
is no such condition on or in the property or in such proximity thereto that it would
cause a loss in value. No responsibility is assumed for any such condition, nor for any
expertise or engineering knowledge required to discover them. The client is urged to
retain an expert in the field of environmental impacts upon real estate if so desired.
The ratio of the aggregate land value to the total confirmed unpaid assessment lien for the
respective parcels assessed in the District is times. A summary of the Appraisal, which
contains conclusions of retail market value estimates and sets forth assumptions of the Appraisal, is
contained in "APPENDIX B - SUMMARY OF THE APPRAISAL." A complete copy of the Appraisal
is available for inspection at the office of the City Clerk of the City during the period of the offering.
Direct and Overlapping Debt
CITY OF DUBLIN ASSESSMENT DISTRICT #91-1
1991-92 Assessed Valuation: $6,695,144
DIRECT AND OVERLAPPING BONDED DEBT: % Applicable Debt 5/1/92
San Francisco Bay Area Rapid Transit District 0.004% $12,616
Alameda County Superintendent of Schools 0.011 859
Alameda County Building Authorities 0.011 27,001
Oakland-Alameda County Coliseum 0.006 749
Alameda County Flood Control District, Zone #7 0.064 355
Dublin Joint Unified School District 0.469 18,289
Dublin Joint Unified School District
Certificates of Participation 0.469 2,275
City of Dublin Certificates of Participation 0.475 77,734
City of Dublin Assessment District #91-1 100. - (1)
East Bay Regional Park District 0.006 3,491
Bay Area Pollution Control District 0.002 2
TOTAL GROSS DIRECT AND OVERLAPPING BONDED DEBT $143,371
Less: Oakland-Alameda County Coliseum 749
TOTAL NET DIRECT AND OVERLAPPING BONDED DEBT $142,622
(1) Excludes 1915 Act Bonds to be sold.
Ratios to Assessed Valuation:
Direct Debt 0.%
Total Gross Debt . . . . . . . . . . . . . . . . . 2.14%
Total Net Debt . . . . . . . . . . . . . . . . . . . 2.13%
10
SPECIAL RISK FACTORS
General
The Bonds are limited obligation improvement bonds of the City payable from installment
payments of principal and interest on the Assessments on the Assessment Parcels levied annually and
collected at the same time and in the same manner as property taxes.
In order to pay debt service on the Bonds, it is necessary that unpaid installments of Assessments
on land within the District are paid in a timely manner. The City will establish a Special Reserve
Fund in the amount of five percent (5%) of the original proceeds of the Bonds, which will be used
to pay delinquent Assessment installments should they occur. All proceeds from investment of moneys
in the Special Reserve Fund will remain in the Special Reserve Fund until the balance therein is equal
to the Reserve Requirement. The Assessments are secured by a lien on the parcels of land and the
City can institute foreclosure proceedings to sell land with delinquent installments for the amount of
such delinquent installments in order to obtain funds to pay debt service on the Bonds.
Failure by owners of the parcels to pay installments of Assessments when due, depletion of the
Special Reserve Fund, or the inability of the City to sell parcels which have been subject to
foreclosure proceedings for amounts sufficient to cover the delinquent installments of Assessments
levied against such parcels may result in the inability of the City to make full or punctual payments
of debt service on the Bonds and Bondowners would therefore be adversely affected.
The Assessments are obligations of the Assessment Parcels. Unpaid Assessments do not
constitute a personal indebtedness of the owners of the lots within the District. There is no assurance
the owners will be able to pay the Assessment installments or that they will pay such installments even
though financially able to do so.
The City has no obligation to advance funds to pay debt service on the Bonds in the event
Assessment installment collections are insufficient except from amounts on deposit in the Special
Reserve Fund.
The values of the Assessment Parcels may be adversely affected by a number of factors including,
for example, a failure to complete the Improvements; lack of progress and development of the
Assessment Parcels; naturally occurring conditions such as earthquakes, destructive storms, or drought;
and imposition of legal restrictions to development.
Development of parcels within the District, transfers of property ownership, and certain other
circumstances could result in prepayment of Assessments. Such prepayment would result in
redemption of all or a portion of the Bonds prior to their stated maturities.
Limited City Obligation Upon Delinquency
The City's liability to advance moneys to pay debt service on the Bonds in the event of delinquent
Assessment installments shall not exceed the balance in the Special Reserve Fund. The City has
determined, pursuant to Section 8769(b) of the Bond Act, that it will not obligate itself to advance
available funds from the City treasury to cure any deficiency which may occur in the Redemption
Agency Fund.
11
Property Taxes
All property taxes are paid current on all parcels in the District as of the date of this Official
Statement.
Factors Which May Affect Land Development
The majority of the property within the District is undeveloped. The proposed development of
this property and property values may be affected by changes in general economic conditions,
fluctuations in the real estate market, and other factors. No assurance can be given that the
development proposed in the District and described herein will be completed. In addition, the
proposed development is subject to local, state, and federal regulations. Approval may be required
from various agencies from time to time in connection with the layout and design of proposed
development in the use, zoning, and other matters. Although no such delays are anticipated, failure
to meet any such future regulations or obtain any such approvals in a timely manner could delay or
adversely affect the proposed development in the District which, in turn, could, depending upon the
circumstances, adversely affect property values.
Concentration of Ownership
All of the property within the District to be assessed is owned by four property owners (the
'Property Owners'). Three of the four property owners intend to develop their land consistent with
current zoning requirements. For more information about the Property Owners, see 'THE
ASSESSMENT DISTRICT - The Property Owners"herein.
There may be subsequent transfers of ownership of the property prior to development. Failure
of the owners of undeveloped property to pay the annual assessments could result in the rapid
depletion of the Special Reserve Fund prior to replenishment from delinquency redemptions after a
foreclosure sale. In that event, there could be a default in payments of the principal of, and interest
on, the Bonds.
Disclosures to Future Purchasers
The District has recorded a notice of the Assessment lien in the Office of the Treasurer-Tax
Collector of the County of Alameda. While title companies normally refer to such notices in title
reports, there can be no guarantee that such reference will be made or, if made, that a prospective
purchaser or lender will consider such Assessment obligation in the purchase of a parcel of land or
lending of money thereon. Failure to disclose the existence of the Assessments may affect the
willingness and ability of future owners of property within the District to pay the Assessments when
due.
Failure to Develop Properties
Failure to develop all or some of the properties within the District could adversely affect the
desire of the Property Owners to pay the annual assessments. In that event, there could be a default
in the payment of principal of, and interest on, the Bonds.
Appraised Value
The Appraisal was prepared for the purpose of estimating the retail and market value of the fee
12
simple interest in the property in the District as of In arriving at the estimate of
retail value, the Appraiser assumed that the property in the District will be developed in accordance
with existing land use approvals and that the Developers will obtain all necessary approvals for such
development.
Should future conditions and events develop such that the assumptions made by the Appraiser
are not realized, the value of the property within the District would likely be reduced from that
estimated by the Appraiser. See "APPENDIX B - Summary of the Appraisal" herein for a description
of other assumptions made by the Appraiser.
No assurance can be given that should one or more parcels become delinquent in the payment
of Assessments, and be foreclosed upon and sold for the amount of the delinquency, that any bid
would be received for such property or, if a bid is received, that such bid would be sufficient to pay
such delinquent Assessments.
Parity Taxes and Special Assessments
The Assessments and any penalties thereon will constitute a lien against the lots and parcels of
land on which they will be annually imposed until they are paid. Such lien is on a parity with all
special taxes levied by other agencies and is co-equal to and independent of the lien for general
property taxes regardless of when they are imposed upon the same property. There are no existing
fixed special assessment liens or special taxes on the parcels in the District. The Assessments have
priority over all future special assessments and other private liens imposed on the property except,
possibly, for liens or security interests held by the Resolution Trust Corporation or the Federal
Deposit Insurance Corporation. See 'Bankruptcy and Foreclosure" below.
The City has no control over the ability of other entities and districts to issue indebtedness
secured by special taxes or assessments payable from all or a portion of the property within the
District. In addition, the property owners within the District may, without the consent or knowledge
of the District, petition other public agencies to issue public indebtedness secured by special taxes or
assessments. Any such special taxes may have a lien on such property on a parity with the
Assessments. See 'SECURITY FOR THE BONDS - Direct and Overlapping Debt" herein.
Tax Delinquencies
Assessment installments, from which funds necessary for the payment of annual installments of
principal of and interest on the Bonds are to be derived, will be billed to each property against which
there is an unpaid Assessment on the regular property tax bills sent to the owners of such property.
Such Assessment installments are due and payable at the same time, and generally bear the same
penalties and interest for nonpayment, as regular property tax installments. Assessment installment
payments generally cannot be made separately from property tax payments. Therefore, the
unwillingness or inability of a property owner to pay regular property tax bills, as evidenced by
property tax delinquencies, may also indicate an unwillingness or inability to make regular property
tax payments and Assessment installment payments in the future. As of date according to the
records of the County Treasurer-Tax Collector's Office, there were no delinquencies in the payment
of property taxes within the District.
13
Bankruptcy and Foreclosure
The payment of property owners' Assessment installments and the foreclosure by the City of the
lien on a delinquent unpaid Assessment may be limited by bankruptcy, insolvency, or other laws, local,
state, or federal, generally affecting creditors' rights, or by the laws of the state relating to judicial
foreclosure.
Although bankruptcy proceedings would not cause the Assessment liens to become extinguished,
bankruptcy of a property owner could result in a delay in the City instituting Superior Court
foreclosure proceedings. Such delay could increase the likelihood of a delay in payment of the
principal of and interest on the Bonds, and the possibility of delinquent Assessment installments not
being paid in full.
Bond Counsel's approving legal opinion, to be delivered concurrently with the delivery of the
Bonds, will be qualified as to the enforceability of the various legal instruments by bankruptcy,
reorganization, insolvency, or other similar laws affecting the rights of creditors generally.
THE ASSESSMENT DISTRICT
The District
The property to be assessed within the District consists of developed and undeveloped land zoned
for commercial and industrial use and is owned by four property owners. The Assessment calculations
are based on the benefits to be derived, from the improvements (see 'THE ASSESSMENT DISTRICT
- The Improvements'), by the Assessment parcels. See "APPENDIX A - BOUNDARY MAP AND
ASSESSMENT DIAGRAM" herein.
The Property Owners
BJ Dublin Commercial, a California Limited Partnership, owns the largest property included in
the Assessment District. The property consists of 13.38 gross acres and was subdivided into six legal
parcels and one half of unimproved Sierra Lane. A final map was approved by the City Council on
1992 and recorded by the County of Alameda on . 1992. The property is
undeveloped and has been held for investment purposes by the partnership and related entities since
1978. Current development plans include 40,000 square feet of retail at the western end of the
property fronting onto Dougherty Road, 72,000 square feet of multi-use/auto service space, and 52,000
square feet of mini-warehouse space on the most northern section of the property which is removed
from the street frontage.
The General Partners of the partnership have long time business ties to the area. Arthur Bridges
owned four car dealerships in the Fremont and Hayward areas and has extensive residential
development experience in Fremont, Martinez, Fairfield, Fresno, and commercial development
experience in Hayward and Fremont. Before establishing his own land development company, John
Moore headed the Northern California Division of Shapell Industries, Inc., a major homebuilder and
commercial developer based in Milpitas. Presently, his development company is handling both
residential and commercial development projects in Alameda and Contra Costa Counties.
Dublin Commercial II, a California Limited Partnership, is the owner of a 1.88 acre property
within the Assessment District. The property is currently undeveloped and was acquired by the
partnership in 1988 at the time that the City of Dublin began discussing the extension of Dublin
Boulevard. The construction of the road will transform the property from one with no visibility and
14
insignificant frontage to a property with good road frontage on two sides. The property is proposed
to be marketed to an end user immediately following the ground breaking for the construction of the
Dublin Boulevard Extension.
D.M. Nohr owns an improved 1.40 acre parcel within the Assessment District. The site is
improved with a vacant automobile dealership and related facilities totaling 9,967 square feet. Current
plans are for the conversion and renovation of this property into a recreational vehicle sales and rental
facility.
Kanaris Vongelatos, et. al. is the owner of two legal parcels totalling 0.66 acres. A long-term
lease on the property has been signed with Chevron, which plans to construct a service station
following the completion of the Dublin Boulevard extension. The triple net lease will provide an
annual revenue stream of $96,000.
The Improvements
The proceeds of the bonds will be used to acquire right-of-way and to construct certain roadway
improvements, as described below.
1. The construction of the westerly one-half of the road which is to be on either side of the
Chabot Channel. The limits of these improvements are from the end of the existing cul-
de-sac north to the improvements of Dublin Boulevard extended, the reconfiguration of
the cul-de-sac to a through street and changing of the driveway entrance at Scarlett Court
to street curb returns.
2. The construction of the extension of Dublin Boulevard from Dougherty Road to Tract
4978.
3. The five foot widening on the east side of Dougherty Road from Dublin Boulevard
extended north to Tract 4978.
4. All those proposed public improvements within Tract 4978 and the proposed Tract 5900,
including curbs, gutters, sidewalk, pavement, street monuments, drainage, street lights,
landscaping, signs, striping, irrigation and related miscellaneous improvements on
Dougherty Road and Dublin Boulevard extended.
Method of Spreading Assessments
The Assessments are apportioned in the following manner:
The amounts to be assessed against the parcels of property to pay the costs and expenses of the
work and improvements are based upon the benefits to be derived by the properties within the
District. See "APPENDIX A - Boundary Map and Assessment Diagram."
The total Assessment to be levied against any parcel of land in the District shall be the sum of
the amounts determined by the following formula:
1. Parcels owned or to be acquired by public agencies shall not be assessed.
2. Construction costs to be assessed against each parcel shall be equal to the estimated
15
costs of the public improvements that have been or would be required by the City as a
condition of development of said parcels. In the case of a group of parcels that will be
treated as a single development, the assessment computed for that development shall be
spread to each parcel in proportion to parcel area. All construction costs in excess of
those described above shall be contributed to the District by the City.
3. Right of way acquisition costs to be assessed against each parcel shall be equal to the
estimated value of rights of way that have been or would be required by the City to be
dedicated as a condition of development of said parcels. In the case of a group of
parcels that will be treated as a single development, the assessment computed for that
development shall be spread to each parcel in proportion to parcel area. All right of way
acquisition costs in excess of those described above shall be contributed to the District
by the City.
4. Incidental expenses related to construction shall be spread to each parcel in the District,
and to the City, in proportion to the total amounts assessed to said parcels and
contributed by the City, under 2 above.
5. Incidental expenses related to the acquisition of right of way from parcels being assessed
shall be spread to each parcel in the assessment district in proportion to the total
amounts assessed to said parcels under 3 above. All right of way incidental expenses in
excess of those described above shall be contributed to the District by the City.
6. Incidental expenses related to the assessment district proceedings shall be spread to each
parcel in the District in proportion to the total amounts assessed to said parcels for all
other items.
A summary of the spread of Assessments, the appraised valuation of the assessed properties
within the District as of , and the value-to-lien ratio of the properties are shown below:
Value-
Assessment/ Assessor's Unpaid Appraised to-Lien
Diagram No. Owner Parcel No. Assessments Valuation Ratio(')
1 BJ Dublin Commercial 941-0550-036-00 $448,270.00 $
2 BJ Dublin Commercial 941-0550-040-00 334,708.00
3 BJ Dublin Commercial 941-0550-041-00 340,685.00
4 BJ Dublin Commercial 941-0550-042-00 264,977.00
5 BJ Dublin Commercial 941-0550-043-00 195,247.00
6 BJ Dublin Commercial 941-0550-044-00 314,785.00
7 Kanaris Vongelatos, et.al. 941-0550-009-15 135,171.00
8 Kanaris Vongelatos, et.al. 941-0550-010-13 101,378.00
10 D.M. Nohr 941-0550-012-07 144,990,00
11 Dublin Commercial II 941-0550-039-00 69,789.00
Environmental Review
Procedures of the California Environmental Quality Act which are applicable to the
Improvements have been completed.
16
Land Vse and Zoning
The City's General 'Plan designates the parcels within the District as commercial and industrial
zoned for retail, warehouse and light industrial,
Utility Services
It is expected that utility service will be available for development of the undeveloped parcels of
the District. Current plans are to extend all utility lines to the undeveloped property concurrently
with the construction of the road improvements (see 'THE ASSESSMENT DISTRICT - The
Improvements').
Water Sp ply
The availability of water permits can greatly affect property values in the City. The Dublin San
Ramon Services District currently plans to extend water lines to the undeveloped property of the
District concurrently with the construction of the proposed road improvements (see 'THE
ASSESSMENT DISTRICT - The Improvements'). It is expected that water permits will be granted
for development of the undeveloped property of the District. See "APPENDIX B - Summary of the
Appraisal" herein.
Earthquakes
There are active earthquake faults throughout the San Francisco Bay Area creating some level
of seismic risk for all properties. The nearest fault to the District is the Calaveras fault, lying
approximately one and one-half miles west of the District.
CONCLUDING INFORMATION
Legal Opinion
All proceedings in connection with the issuance of the Bonds are subject to tile approval of
Sturgis, Ness, Brunsell & Sperry, a professional corporation, Emeryville, California, Bond Counsel for
the City. The opinion of Sturgis, Ness, Brunsell, & Sperry, attesting to tile. validity of the Bonds, shall
be supplied free of charge to the original purchaser of the Bonds. A copy of the legal opinion,
certified by the official in whose office the original is filed, will be printed on each Bond.
The statements of law and legal conclusions set forth in the Official Statement under the heading
'THE BONDS" herein have been reviewed by Bond Counsel. Bond Counsel's engagement is limited
to a review of the legal procedures required for the authorization of the Bonds and the exemption of
interest on the Bonds from income taxation. See 'Tax Exemption" herein. The opinion of Bond
Counsel will not consider or extend to any documents, agreements, representations, official statements.
or other material of any kind concerning the Bonds, including this Official Statement, not mentioned
in this paragraph. Payment of Bond Counsel's fee in connection with this issuance of the Bonds is
contingent upon the issuance and delivery of the Bonds. For the complete text of the Bond Counsel
Opinion, see "APPENDIX D - Opinion of the Bond Counsel" hereto.
17
HVK_C1-dz Iut i f -.uf Nhuo�)ncn r1cnuE acrcirca rnn [IV 1`t1:)000UClu 1 . UJ
Tax Exemption
In the opinion of .Bond Counsel, subject, however, to the qualifications set forth below, under
existing law, interest*on the Bonds and received by the owners of the Bonds is excluded from gross
income for federal income tax purposes and such interest is not an item of tax preference for purposes
of the federal alternative minimum tax imposed on individuals and corporations, provided, however,
that for the purpose of computing the alternative minimum tax imposed on such corporations (as
defined for federal income tax purposes), such interest is taken into account in determining certain
income and earnings, and the Bonds are "qualified tax-exempt obligations" within the meaning of
section 265(b)(3) of the Internal Revenue Code of 1986 (the "Code') such that, in the case of certain
financial institutions (within the meaning of section 265(b)(5) of the Code), a deduction for federal
income tax purposes is allowed for 80 percent of that portion of such financial institutions' interest
expense allocable to the interest on the Bonds,
The opinions set forth in the preceding sentences are subject to the condition that the City
comply with all requirements of the Internal Revenue Code of 1986 (the "Code') that must be satisfied
subsequent to the delivery of the Bonds in order that Stich interest be, or continue to be, excluded
from gross income for federal income tax purposes. The City has covenanted to comply with certain
restrictions designed to assure compliance with each such requirement. Failure to comply with certain
of such requirements may cause the inclusion of such interest In gross income for federal income tax
purposes to be retroactive to the date of delivery of the Bonds. Bond Counsel expresses no opinion
regarding other federal tax consequences arising with respect to the Bonds.
Prospective purchasers of the Bonds should also be aware that, under existing law, an amount
equal to 75 percent of the amount (referenced below as the "Adjusted Current Earnings Preference')
by which adjusted current earnings exceed alternative minimum taxable income is added to alternative
minimum taxable income. Interest otherwise excluded from gross income, such as interest on the
Bonds, is included in adjusted current earnings.
Prospective purchasers of the Bonds should also be aware that (i) section 265 of the Code denies
a deduction for interest on indebtedness incurred or continued to purchase or carry the Bonds or, in
the case of a financial institution, that portion of the Bond Owner's interest expense allocated to
interest payable with respect to the Bonds, (ii) with respect to insurance companies subject to the tax
imposed by section 831 of the Code, for taxable years beginning after December 31, 1986, section
832(b)(5)(B)(i) reduces the deduction for loss reserves by 15 percent of the sum of certain items,
including interest payable with respect to the Bonds, (iii) for taxable years beginning before January
1, 1992, interest payable with respect to the Bonds earned by some corporations could be subject to
the environmental tax imposed by section 59A of the Code, (vi) interest payable with respect to the
Bonds earned by certain foreign corporations doing business in the United States could be subject to
a branch profits tax imposed by section 884 of the Code, (v) passive investment income, including
interest payable with respect to the Bonds, may be subject to federal income taxation under section
1375 of the Code for subchapter S corporations that have subchapter C earnings and profits at the
close of the taxable year if greater than 25 percent of the gross receipts of Stich subchapter S
corporation is passive investment income, and (vi) section 86 of the Code requires recipients of certain
Social Security and certain Railroad Retirement benefits to take into account, in determining gross
income, receipts or accruals of interest payable with respect to the.Bonds.
In the further opinion of Bond Counsel, such interest on the Bonds is exempt from California
personal income taxes.
18
11111 L1 VL IVL 11 VV laltV..iVl.u.a 1 au.avu .au wi..uv . .... alV. a IaVVVVVUaV I 1 V 1
Absence of Litigation
There is no action, suit, or proceedings known by the City to be pending or threatened restraining
or enjoining the delivery of the Bonds or in any way contesting or affecting the validity of the Bonds
or any delivery thereof. A no litigation certificate executed by the authorized representatives of the
City will be delivered to the Underwriter simultaneously with the delivery of the Bonds.
No Ratin
The City has not applied for, and does not contemplate making, application to any rating agency
for the assignment of a rating to the Bonds.
Underwriting
The Underwriter of the Bonds has purchased the Bonds from the City at a price of $
The purchase agreement relating to the Bonds provides that the Underwriter will purchase all of the
Bonds if any are purchased, the obligation to make Stich purchaser being subject to certain terms and
conditions set forth in said purchase agreement, the approval of certain legal matters by Bond Counsel
and certain other conditions. The public offering prices may be changed from time to tirne by the
Underwriter, The Underwriter may offer and sell Bonds to certain dealers and others at prices lower
than the offering prices stated in the section entitled 'THE BONDS."
Mlscellaneous
All quotations from., and summaries and explanation of, the Resolution and other statutes and
documents contained herein do not purport to be complete, and reference is made to said documents,
Resolution, and statutes for full and complete statements of their provisions.
This Official Statement is submitted only in connection with the sale of the Bonds by the City.
All estimates, assumptions, statistical information, and other Statements contained herein, while taken
from sources considered reliable, are not guaranteed by the City or the Underwriter. The information
contained herein should not be construed as representing all conditions affecting the City or the
Bonds.
The execution and delivery of this Official Statement have been authorized by the City.
CITY OF DUBLIN
By; .
City Manager
19
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I HEREBY CERTIrT THAT THIS MAP WAS APPROVED By THE COUNCIL Or IID>a! EXTENSION ASSESSMENT DISTRICT 91-1
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NTY RLLO SA
LpU ID ASSESSMENT OIACRAN AND THE ASSESSMENT ROLL WE E RECORDED .L
OFFICE Or THE DIRF�:TOR Or PU C NOI0.l1Ajb/CITT ENGINEER, Or THE CITT OF
DUBLIN ON THE 145CJL DAT OF OIt C.C. , IFS• REFERENCE IS MADE
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\� I 14-.-42 f*/M�•'ff f'r^D' LtVILD AGAINST EACH PARCEL OT LAND SHOWN ON THIS ASSESSMENT DIAGRAM.
ti
0
TILED IN THE OFFICE OF THE CLERK OF THE CITT O U ILIN, _ \��_ Z /vuvo bucveypoNl1/•/E'F/75
CO T OF ALAMLDA, STATE OT CALIFORNIA THIS DAY of G✓ ( �Ir
• 19 •. \'p` (N f!•2�n 6
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Id, \ /2,N7G,RGQL 15(.O/7.4i1GE X19. STATE Ol CALIFORNIA
MKA C r-city CLERK F THE CITY Or DUBLIN,
CO ALAMEDA, STATE OF CALIFORNIA. \ '—"-'—� P7u7puts4o 6TRBCT RIW
FILED THIS SI/„ DAY OF �°l.,w , 102- , AT THE ASSESSMENT DIAGRAM OF
eeciGOINEER,ITHISL OFFICE Or THE D CTOA O PULLi199�s/CITT A65C$BMENI'.A�ND COMNUNCIT7FACILITIES DISTRICTSIATPPAD ECORDE DUBLIN BOULEVARD
1/ I?A IN TIE orrice DI THE COUNTY RECORDER OF THE cDDNrT {�........,4, EXTENSION ASSESSMENT DISTRICT 91-1
OF ALANEDA, STATE Or CALIFORNIA. fff:L.fb SERIE5:'71Dygpgy
• s' ca-,,i I�
z �,c CITY OF DUBLIN.ALAMEDA COUNTY.CALIFORNIA
b TNOMPS , D RECTOR F UBLIC WORKS ITT ENGINEER �1 II., ✓41�1L� a '•. .:7fJ+41•�./
l DUBLIN, DA COUNTY, CALIFORNIA M! Dk �� O/wvIS; / • �1t ''�`� i d'
RCNE DAVIOSON. COUNTY COIIDCR OT TN
WNF.DA, STATE OF CALIFORNIA 'nIA rnul� �YIISEY SC I1t13ti1 JAN. 1992
COUNTY OF A
SCALE 7'
: n 100'
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APPENDIX B - SUMMARY OF THE APPRAISAL
APPENDIX C - GENERAL ECONOMIC AND
DEMOGRAPHIC INFORMATION OF THE CITY
CITY OF DUBLIN
General Economic and Demographic Information
The following information about the City of Dublin is presented as general background
information. The Bonds are payable solely from the Assessments and other sources as described in
the Official Statement and are not a debt of, nor payable by, the City.
General
The City of Dublin is located in the Tri-Valley area of Alameda County. The City is bordered
to the south by the City of Pleasanton and to the north by the City of San Ramon. The City is 35
miles southeast of San Francisco, 395 miles north of Los Angeles and is within a twenty-five minute
drive from San Jose and Oakland.
The City was incorporated on February 1, 1982 and is governed by a Council-Manager form
of government. The City Council has five members all elected at large, each councilmember serving
a term of four years. The Mayor is selected by the City Council from among its members.
Interstate Freeways 580 and 680 intersect in Dublin and allow easy access to the stable
economy of the San Francisco Bay Area. Residential areas are located 125 to 360 feet above sea level
with average temperatures of 80 degrees in the summer and 60 degrees in the winter.
City Growth
At the time of its incorporation in 1982, the City covered 4.1 square miles. Since that time,
the City has annexed 434 acres of land to the west which is primarily residential in nature and
2,713.47 acres of primarily governmentally-owned land to the east and now covers 9.02 square miles.
Population
The following table presents population data for the City, Alameda County and the State of
California since 1987.
CITY, COUNTY AND STATE POPULATION DATA
Year City of Dublin Alameda County State of California
1987 20,918 1,215,033 27,331,099
1988 21,940 1,235,587 27,995,773
1989 23,554 1,252,425 28,662,249
1990 23,408(1) 1,274,712 29,557,835
1991 23,500(2) 1,293,036 30,351,029
Source: California Department of Finance Annual Reports.
(1) Disputed 1990 Census results.
(2) Estimate.
C-1
Labor Relations
The City currently contracts with public and private entities to provide many of its services.
The City has 36 full-time positions. The City's Recreation Department uses temporary part-
time employees. Its staffing level varies between 20 - 35 employees. Additionally, the City has 52
persons providing services pursuant to four contracts.
The City does not have any labor organizations which represent City employees.
Prouerty Taxation
City property taxes are assessed and collected by Alameda County (the "County') at the same
time and on the same rolls as the County, all special district and school district taxes are collected.
Assessed valuations are based upon 100 percent of market value at the time of sale and are limited
to an increase of two percent per year. The value of improvements to property is added to assessed
value at 100 percent of cost.
For assessment and collection purposes, property is classified either as "secured" or
"unsecured", and its listed, accordingly, on separate parts of the assessment roll. The "secured roll"
is that part of the assessment roll containing State assessed property, and property the taxes on which
are a lien on real property, are sufficient, in the opinion of the County Assessor, to secure payment
of the taxes. All other property is assessed on the 'unsecured roll".
The following table presents a summary of assessed valuations in the City for fiscal years
1988-89 through 1991-92.
ASSESSED VALUE
Fiscal Year SECURED UNSECURED UTILITY
1988-89 $ 962,867,790 $84,339,466 $1,812,200
1989-90 1,086,479,184 94,717,004 1,812,200
1990-91 1,195,196,327 90,697,434 4,536,700
1991-92 1,313,093,355 92,332,101 4,536,700
Source: Alameda County Auditor-Controller.
Economic Structure
The City has approximately 800 commercial businesses serving the Tri-Valley area ranging
from large department stores and discount stores to small individualized service stores. The
Stoneridge Shopping Center is located across I-580 approximately one mile from the City.
Employment
The table on the page shows the major employers in the City.
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MAJOR EMPLOYERS
Employer Industry Employees
County of Alameda County Jail 500
Dublin Unified School District Education 375
Lucky Store Inc. Headquarters for Retail Grocery Co. 300
Hexcel Corporation Mfg. Honeycomb Resins, Adhesives & Glass 300
United States Dept. of Justice Federal Correctional Institute 295
Smith-Kline Beecham Medical Laboratory 201
Unisource Wholesale Paper Products Distribution 200
Montgomery Wards Department Store 190
Target Stores Retail Department Store 167
Mervyn's Department Store 115
Tele-Vue Systems, Inc. Cable Television 100
Shamrock Ford Auto Dealer 86
National Food Laboratory Food Laboratory 85
Source: City of Dublin, Dublin Chamber of Commerce
The following table shows employment figures for Alameda County for the years 1986 through
1990.
ALAMEDA COUNTY EMPLOYMENT
Annual Average
(in thousands)
1986 1987 1988 1989 1990
Civilian Labor Force 638.0 639.8 662.9 692.0 675.7
Employment 599.3 607.2 632.2 662.8 647.6
Unemployment 38.7 32.6 30.7 29.2 28.1
Unemployment Rate 6.1% 5.1% 4.6% 4.2% 4.2%
Source: California Employment Development Department.
Commercial Activity
The following table summarizes the annual volume of taxable transactions within the City since
1986.
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CITY OF DUBLIN
TAXABLE TRANSACTIONS
(Thousands of Dollars)
1986 1987 1988 1989 1990
Apparel Stores $ 11,681 $ 13,968 $ 14,920 $ 16,011 $ 17,630
General Merchandise Stores 39,746 43,183 56,072 62,383 68,573
Drug Stores 7,042 8,724 (1) (1) (1)
Packaged Liquor Stores (1) (1) (1) (1) 3,658
Food Stores 32,780 15,821 15,443 16,397 14,885
Eating & Drinking Places 24,356 26,305 30,233 27,541 26,548
Home Furnish and Appliances 23,439 28,565 43,231 48,688 51,211
Building Material and Farm 27,705 26,765 31,305 36,188 33,098
Implements
Auto Dealers and Auto 128,390 120,050 116,696 113,929 121,088
Supplies
Service Stations 15,088 15,737 16,748 17,417 19,752
Other Retail Stores 38,409 41,844 62,285 63,476 67,687
Retail Stores Totals 348,636 340,962 386,933 402,030 424,130
All Other Outlets 59,131 68.800 82.793 87,248 88,221
Total All Outlets $ 407,767 409,762 469,726 489,278 507,351
Source: California State Board of Equalization.
(1) Sales omitted because their publication would result in the disclosure of confidential
information.
Building and Construction
The following table shows the value of building permits issued in the City between 1987 and
1991.
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CITY OF DUBLIN
BUILDING PERMIT VALUATION
(Thousands of Dollars)
1987 1988 1989 1990 1991
Residential
New single-dwelling $ 28,482 $ 4,182 $ 12,803 $ 0 $ 0
New multi-dwelling 32,974 7,740 21,025 5,320 5,500
Additions, alterations 1,442 2,299 3,278 2.553 1,900
Total Residential 62.898 14,221 37.106 7,873 7.400
Non-Residential
New commercial 4,309 550 602 3,790 1,128
New industrial 350 0 0 0 0
Other 782 1,359 496 870 979
Additions, alterations 11,509 6,172 4.315 5,213 4,249
Total Non-Residential 16,950 8,082 5.413 9,873 6,356
TOTAL VALUATION $ 79,848 $ 22,303 $ 42,519 $ 17,746 $ 17,756
Number of new dwelling unit
Single dwelling 251 25 73 0 0
Multi dwelling 492 204 430 66 69
Total Units 743 229 503 66 69
Source: Economic Sciences Corporation.
Community Facilities
The Dublin Library is one of the 12 branches of the Alameda County Library System. The
Library is a well-used resource in the community and, as a result of City funding and support, the
facility is open seven days a week. The entire system provides access to approximately 800,000
volumes.
The City also operates the Shannon Community Center and Dublin Senior Center. These
facilities provide space to accommodate various community meetings, instructional classes, and
recreational activities. These facilities are also rented to area residents for social functions, such as
wedding receptions and public dances. The Dublin Civic Center also provides meeting space for
community groups.
In addition to the public facilities located in Dublin, several privately owned businesses provide
recreational opportunities for area residents. Due to the City's location, it has become a central
point for the location of various entertainment-related businesses. This includes an ice skating rink,
a bowling alley, and two large movie theater complexes containing a total of 14 screens.
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Hospitals
The City does not have a hospital within City limits; however, nearby hospitals such as San
Ramon Regional Medical Center located in San Ramon, Valley Memorial Hospital located in
Livermore, Valley Care Medical Center located in Pleasanton and Kaiser Permanente hospital located
in Walnut Creek are among those serving the City of Dublin.
Churches
Churches located in the City include the following:
Church of Jesus Christ of Latter-Day Saints
Dublin Christian Church
Eagles Nest Christian Fellowship of No. California
John Knox Presbyterian Church
Lutheran Church of the Resurrection - ELCA
Parkway Baptist Church
St. Phillip Lutheran Church
St. Raymond's Catholic Church
Tri Valley Chinese Bible Church
Tri Valley Church of God
Valley Christian Center
Valley Bible Church
Financial Institutions
Financial institutions located in the City include the following:
Bank of America
Community First National Bank
Great Western Bank
Home Savings of America
Homestead Savings
Sanwa Bank of California
Security Pacific Bank
Tri-Valley National Bank
Wells Fargo Bank
Education
The Dublin Unified School District provides kindergarten through 12th grade education within
the City. Its boundaries are contiguous with those of the City. The district operates Dublin High
School, Wells Intermediate School, and Fredericksen, Nielsen, and Murray Elementary Schools.
There are also three private schools located within the City. -Valley Christian Center operates
the Valley Christian School, a kindergarten through 8th grade program, located at a former public
school site. The Valley Christian Center also operates a high school located on Christian Center
property in the western foothills. St. Raymond's Catholic Church has recently implemented a school
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which operates a kindergarten through 5th grade program. St. Raymond's has plans to increase its
curriculum through the 8th grade in the upcoming years. St. Phillips Lutheran Church operates an
elementary school.
Los Positas College provides post-secondary education and is operated by the South County
Community Colleges District. East Bay colleges and universities include the University of California
at Berkeley, California State University at Hayward, Mills College, St. Mary's College, Holy Names
College and John F. Kennedy University in Orinda. In addition, Stanford University, the University
of Santa Clara and Hastings College of Law are all within an hour's drive of the City.
Transportation
The City is located at the intersection of Interstate 580 and Interstate 680. These interstates
serve as major transportation corridors to and from the City. Oakland International Airport is within
a 20 minute drive.
BART has approved the extension of a line from Hayward to the City. Current projections
are that the service could be in place as early as 1995. BART currently provides express bus service
from the City to its Hayward station.
Local bus service and Para-Transit service is provided by the Livermore Amador Valley Transit
Authority (LAVTA). This is a joint powers authority with representatives from the cities of Dublin,
Livermore, and Pleasanton and from Alameda County.
Utilities
Gas & Electric - Pacific Gas and Electric
Telephone - Pacific Bell
Cable Television - Viacom Cablevision
Garbaize Service - Dublin-Livermore Disposal, which is a division of Oakland Scavenger
Company ("OSC'). OSC is currently owned by Waste Management Inc., which provides collection
services and operation of the sanitary landfill. The landfill is not located in the City.
Water and Sewer - These services are provided by Dublin San Ramon Services District.
Parks and Recreation
The City's Recreation Department is responsible for providing recreation programs for the
residents of the City. Programs are offered on a quarterly basis and are publicized through the
'Schedule of Recreation Classes and Programs" mailed to residents four times a year.
The Department currently offers programs in the following areas:
Preschool Classes (2-5 year)
Leisure Enrichment (All ages)
Afterschool Playground Program (1-6 grades)
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Summer Playground Program (6-12 years)
Summer Youth Employment Program (13-21 years)
Special Events
Volleyball Leagues (Adult)
Teen Programs (trips & Dances)
Senior Citizen Programs
There are currently 57 acres of developed parkland within the City, as follows:
Alamo Creek Park
Dolan Park
Dublin Sports Grounds
Kolb Park
Mape Park
Shannon Park & Community Center
Stagecoach Park
Dublin Swim Center
In addition, 100-acres of open space has been designated for a future park. The City has also
entered into a Facility Use and Development Agreement with the Dublin Unified School District
which has resulted in improvement and maintenance of selected school district athletic facilities by
the City.
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APPENDIX D - FORM OF OPINION OF BOND COUNSEL
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Law Offices of
STURGIS, NESS,BRUNSELL&SPERRY
EUGENE K.STURGIS a professional corporation (800) 543-6500
(1692-1976)
EDWIN N.NESS (510) 652-7588
ROBERT BRUNSELL 2000 Powell Street,Suite 1690
SAMUELA.SPERRY Post Office Box 8808 FAX:(510)652-0190
DANIEL C.BORT Emeryville,California 94608-1804
PHILIP D.ASSAF
OPINION OF BOND COUNSEL
LIMITED OBLIGATION IMPROVEMENT BONDS
CITY OF DUBLIN
DUBLIN BOULEVARD EXTENSION ASSESSMENT DISTRICT 91-1
SERIES NO. 91-1
We have acted as bond counsel for the City of Dublin for the
issuance of improvement bonds representing unpaid special
assessments in Dublin Boulevard Extension Assessment District 91-
1. We have examined the law and such certified proceedings and
other documents as we deem necessary to render this opinion.
We have not independently verified questions of fact but have
relied on the certifications of public officials. Nor have we
reviewed the accuracy or sufficiency of the offering material
related to the sale of the bonds.
Based on our examination, we are of the following opinion:
1. The unpaid assessments in Dublin Boulevard
Extension Assessment District 91-1 were validly levied and now
constitute a lien on the parcels of land assessed, as provided in
the Municipal Improvement Act of 1913 of the State of California.
Bonds representing the unpaid assessments were validly issued
under the provisions of the Improvement Bond Act of 1915 of the
State of California.
2 . The bonds are valid special obligations of the City
of Dublin payable solely from the redemption fund, into which are
placed all sums received from the collection of installments of
principal and interest on the unpaid assessments. The bonds are
enforceable in accordance with the Improvement Bond Act of 1915.
.3 . Interest on the bonds is not includable in the
gross income of the bondholder for purposes of federal income
taxes under existing statutes, regulations and court decisions.
Interest on the bonds is not a preference item for federal
individual or corporate alternative minimum taxes, but is
included in adjusted current earnings when calculating corporate
alternative minimum taxable income. Interest on the bonds is
exempt from State of California personal income taxes. The
Opinion of Bond Counsel
Page 2
federal tax-exempt status of bond interest depends upon
continuing compliance by the issuer with the arbitrage covenant
contained in the Resolution Authorizing Issuance of Bonds.
4 . The rights of the bondholders and the
enforceability of the bonds may be subject to bankruptcy,
insolvency, reorganization, moratorium and other similar laws
affecting creditors' rights, heretofore or hereafter enacted.
Enforcement of the bonds may be subject to the exercise of
judicial discretion in accordance with general principles of
equity.
STURGIS, NESS, BRUNSELL & SPERRY
a professional corporation
By: Robert Brunsell
Dated as of May 27, 1992
RESOLUTION NO.
RESOLUTION APPROVING PRELIMINARY OFFICIAL STATEMENT
DUBLIN BOULEVARD EXTENSION ASSESSMENT DISTRICT 91-1
The City Council of the City of Dublin resolves:
As a part of the proceedings for the sale of improvement
bonds in Dublin Boulevard Extension Assessment District 91-1,
City of Dublin, Alameda County, California, this City Council
hereby approves the Preliminary Official Statement dated
1992, and a Final Official Statement derived substantially
therefrom. Distribution of the Preliminary Official Statement
and the Final Official Statement is hereby authorized.
This Official Statement is final except for certain
information which will not be known until the time of sale and is
therefore "deemed final" within the meaning of Rule 15c2-12 of
the Securities and Exchange Commission.
The City Manager is authorized to sign the Preliminary
Official Statement and the Final Official Statement.
PASSED, APPROVED, AND ADOPTED this 27th day of April, 1992 ,
by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
MAYOR
ATTEST:
City Clerk i
��SO APP20VI K)G Raj M. ORIC�A.STMT'
RESOLUTION NO.
RESOLUTION AUTHORIZING ISSUANCE OF BONDS
DUBLIN BOULEVARD EXTENSION ASSESSMENT DISTRICT 91-1
The City Council of the City of Dublin resolves:
SeCtion 1. RECITA On December 23, 1991, the City Council
of the City of Dublin adopted its resolution of intention to order .
improvements in Dublin Boulevard Extension Assessment District 91-
1, city of Dublin, Alameda -County, California, under the provisions
of the Municipal Improvement Act of 1913 (the "Act") , as amended.
Proceedings taken under the Act led to the levy of a special
assessment by the City -Council against parcels of land within the
assessment district in the total amount of $2,350,000. 00. These
assessments were recorded in the office' of the County Recorder of
the County of Alameda, and thereupon became a lien on each parcel
assessed. The period within which parcel owners might pay their
assessments in cash without interest expired on April 6, 1992.
SectjQn_ . ISSUANCE OF BQNDS. The City Council hereby
authorizes• the issuance of improvement bonds under the provisions
of the Improvement Bond Act of 1915 to represent unpaid assessments
in the amount of $2, 350, 000. 00. Each bond shall be designated,
"Limited Obligation Improvement Bond, City of Dublin, Dublin
Boulevard Extension Assessment District 91-1, Series No. 91-1. 11
Bonds shall be -dated approximately the date of delivery and issued
in denominations of $1000 or integral multiples thereof. Bonds may
be issued as serial bonds, term bonds, or any -combination thereof.
Bonds shall mature in the principal- amounts set forth in the table
attached as Exhibit A. The bond date and interest rates on the
bonds shall be as set forth in the bond purchase agreement.
v
`�,:.•7c1 Chi
• ,Ac,.IT"te_ATjN)G OF BoQDS
Se 2. 1. TERM $ONDS. MANDATORY ADVANCE REDEMP11 . Bonds
maturing on September 2 in the years 1993 to 2007, inclusive, shall
be issued as serial bonds. Bonds maturing on September 2, 2012,
shall be issued as term bonds. The term bonds are subject to
mandatory advance redemption on September 2, by lot, at a
redemption price equal to the principal amount to be redeemed,
together with accrued interest to the date of redemption, without
premium, in accordance with the following schedule and in the
following amounts:
dear Amount to Be -Redeemed
2008 $165,000
2009 180,000
2010 195, 000
2011 210,000
2012 230, 000
Assessment installments sufficient to make these mandatory
advance redemptions shall. be collected by the City, deposited in
the Redemption Agency Fund and used by the Bank for the mandatory
advance redemption or payment of the term bonds. All other advance
redemptions of term bonds or serial bonds shall be as provided in
the Improvement Bond Act of 1915- -
Section 3 . APPOINTMENT OF PAYING AGENT, FISCAL AGENT,
REGISTRAR AND TRANSFER AGENT. The City Council hereby appoints the
Bank of America National Trust and Savings Bank (the "Bank") as
paying agent, fiscal agent, registrar and transfer agent for the
bonds in accordance with an agreement between the City of Dublin
and the Bank.
2
Sect_ on 4 . FORM ANp EXEgUTION, Bonds shall be issued as
fully registered bonds substantially in the form set forth as
Exhibit B to this resolution. The bonds shall be signed by the
City Treasurer and the City Clerk and the seal of the City shall be
affixed. Both signatures and seal may be reproduced on the bonds
by facsimile, but upon its registration or reregistration each bond
shall be authenticated by the manual signature of the Bank.
The Bank shall assign to each bond authenticated and
registered by it a distinctive letter, ' or number, or letter and
number, and shall maintain a record thereof which shall be
available to the City for inspection.
Section 5. ESTABLISHMENT OF SPECIAL FUNDS. For administering
the proceeds of the sale of bonds and payment of interest and
principal on the bonds, there are hereby established three funds to
be known. as the capital projects fund, the redemption agency fund
and the special reserve fund, respectively, for Dublin Boulevard
Extension Assessment District 91-1.
Section 5, 1. CAPI OJECTS FUND, Except as provided in
Section 5. 3, proceeds of sale of the bonds, together with all
amounts paid on the assessments before bond issuance, shall be
deposited in the capital projects fund to be maintained by the City
Treasurer. Disbursements from the capital projects fund shall be
made by the City Treasurer in accordance with the budget of =
estimated costs and expenses set forth in the amended engineer's
report he approved by the City Council, which report and
3
budget are subject to modification by the City Council from time to
time as prescribed by the Act.
Section 5.2 . RE EMPTION AGENCY FUND,. The redemption agency
fund shall be maintained by the City Treasurer. All payments of
principal and interest installments on the assessments, together
with penalties, if any, shall be deposited in the redemption agency
fund, which shall- be an agency fund for-. the benefit of the
bondholders. Payment of the bonds at maturity, or at redemption
before maturity, and all interest on the bonds shall be made from
the redemption agency fund. The City Treasurer shall deposit into
the redemption agency fund, from the proceeds of the sale of the
bonds, the amount of $117, 500. 00, which shall be applied to payment
of the first payable interest on the bonds until fully expended.
Section 5 .3,. SPECIAL RESERVE FUND. There shall be deposited
into the special reserve . fund the amount of $117 ,500.00 (the
"Initial Reserve") from the proceeds of the sale of bonds. The
special reserve fund shall be maintained by the Bank, which shall
invest funds at the written direction of the City received at least
two (2) business days in advance and- in accordance with the City
statement of investment policy to be provided to the Bank by the
City Treasurer. Earnings on these investments shall accrue to the
special reserve fund until it equals $164 , 500. 00 (less any amounts
transferred to the redemption agency fund pursuant to paragraph B
hereinafter) (the "Reserve Requirement") . Amounts in excess of the
Reserve Requirement shall be transferred to the redemption agency
fund and shall be used for the advance retirement of bonds or as a
4
credit on the next installment of assessment payments, at the
discretion of the City Treasurer.
A. During the term of the. bonds, the amount in the special
reserve fund shall be available for transfer into the redemption
agency fund in accordance with Section 8883 and 8808 of the Streets
and Highways Code. The amount so advanced shall be reimbursed to
the special reserve fund from the proceeds of redemption or sale of
the parcel for which payment of delinquent assessment installments
was made from the special reserve fund.
E. If any assessment is prepaid before final maturity of the
bonds, the amount of principal which the assessee is required to
prepay shall be reduced by an amount which is in the same ratio to
the original amount of the special reserve fund as the original
amount of the prepaid assessment bears to the total amount of
unpaid assessments originally securing the Bonds. This reduction
in the amount of principal prepaid shall be balanced by a transfer
from the special reserve fund to the redemption agency fund in the
same amount in accordance with the instructions of the City.
C. The amount maintained in the special reserve fund will
never exceed the Reserve Requirement.
D. When the amount in the special reserve fund equals or
exceeds the amount required to retire the remaining unmatured bonds
(whether by advance retirement or otherwise) , the amount of the
special reserve fund shall be transferred to the redemption agency
fund, and the remaining installments of principal and interest not
5
yet due from assessed property owners shall be cancelled without
payment.
Section 5.4 RE'T'URN OF UNCLAIMED FUNDS. other provisions of
this resolution to the contrary notwithstanding, the Bank shall
return to the City any funds held by it -hereunder not later than
thirty (30) days before those funds would escheat to the State of
California under any law now or hereafter enacted.
Section 6_,, pAYMENT ON BONDS-.- The principal and interest on
the bonds shall be payable at the office of the Bank of America
National Trust and Savings Association, 55 Hawthorne Street, Floor
6, San Francisco, California 94105. Principal and interest shall be
paid by check and mailed on the interest payment date to the
registered owner of each bond at the owner's address appearing on
the register maintained by the Bank as of the 15th day preceding
the date of payment.
Section 7 . ADVANCE RETIREMENT--OF BONDS, Any Bond or portion
thereof in the amount of $1, 000 or any integral multiple thereof
may be redeemed and paid in advance of maturity on the second day
of March or September in any year by giving at least 30 days'
notice by registered or certified mail or by personal service to
the registered bond owner at the owner's address appearing on the
registration books of the Bank and by paying principal and accrued
interest together with a premium equal to three percentum of the
principal.
Section _I, REREGISTRATION. Any bond may be registered to a
new owner by completing the assignment certificate on the reverse
6
of the bond and delivering the bond to the Bank. Upon
reregistration, any bond may be replaced by one or more bonds of
the same maturity and aggregate amount in denominations of $1000 or
any integral multiple thereof.
Section 9 . COVENANTS. In the event of a default in the
payment of any bond or any installment of interest thereon,
bondholders shall have the remedies set forth in the Improvement
Bond Act of 1915. In addition, the city Council makes the
following covenants, which shall constitute a contract with the
bondholders:
Section 9. 1. FORECLOSURE OF LIENS:_ Not later than October 1
in any year, the City shall file an action in the Superior Court to
foreclose the lien of each delinquent assessment if the sum of
uncured assessment delinquencies for the preceding fiscal year
exceeds five percent (5%) of the assessment installments posted to
the tax roll for that fiscal year, and if the amount of the special
reserve fund is ' less than the Reserve Requirement.
Section 9. 2 . ARBITRAGE. During the term of the bonds, the
city will -make no use of bond proceeds which, if such use had been
reasonably expected at the date the bonds are issued, could have
caused the bonds to be "arbitrage bonds" within the meaning of
Section 148 of the United States Internal Revenue Code of 1986, and
regulations of the Internal Revenue Service adopted thereunder.
Section_93 MAINTENANCE OF TAX EXEMPTION. The City will take
all reasonable actions required to maintain the status ' of interest
on the bonds as excludable from gross income for federal income tax
purposes and as exempt from the State of California personal income
taxes.
Section 9 . 4. DESIGNATION AS QUALIFIED TAX-EXEMPT OBLIGATIONS.
The City, together with its subordinate entities, has issued less
than $5 million of governmental purpose bonds in calendar year
1992 , and has no intention at this time of iaauing more than CS
million of governmental purpose bonds in 1992, nor does the City
believe that there is any reasonable prospect that it will do so.
The City hereby designates the Bonds "Qualified Tax-Exempt
Obligations" for purposes of Section 265 (b) (3) of the Internal
Revenue Code of 1986.
The City Council also hereby states that this issue qualifies
for relief from the rebate requirements of the Internal Revenue
Code under Section 148 (f) (4) (C) of that Code.
PASSED, APPROVED, AND ADOPTED this 27th day of April, 1992, by
the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
MAYOR
ATTEST:
city Clerk
8
United States of America
State of California
County of Alameda
REGISTERED
Number REGISTERED
$
LIMITED OBLIGATION IMPROVEMENT BOND
CITY OF DUBLIN
DUBLIN BOULEVARD EXTENSION ASSESSMENT DISTRICT 91-1
SERIES N0. 91--1
INTEREST RATE MATURITY DATE BOND DATE CUSIP NUMBER
REGISTERED OWNER:
PRINCIPAL SUM: DOLLARS
Under and by virtue of the Improvement Bond Act of 1915,
Division 10 (commencing with Section 8500) , of the Streets and
Highways Code (the "Act") , the City of Dublin, County of Alameda
State of California (the "City") , will, Out of the redemption agency
fund for the payment of the bonds issued upon the unpaid portion of
assessments made for the acquisition, work and improvements more
fully described in proceedings taken pursuant to Resolution of
Intention No. 135-91, adopted by the City Council of the City of
Dublin on the 23rd -day of December, 1991, pay to the registered
owner stated above or registered assigns, on the maturity date
stated above, the principal sum stated above, in lawful money of the
United States of. America and in like manner will pay interest from
the interest payment date next preceding the date on which this Bond
is authenticated, unless this Bond is authenticated and registered
as of an interest payment date, in which event it shall bear
interest from such interest payment date, or unless this Bond is
authenticated and registered prior to March 2, 1993, in which event
it shall bear interest from its date, until payment of such
principal sum shall have been discharged, at the rate per annum
stated above, payable semiannually on March 2 and September 2 in
each year commencing on March 2, 1993 . _Both the principal hereof
and redemption premium hereon are payable at the principal corporate
trust office of Bank of America National Trust and Savings
Association, or its successor, as Paying Agent, Registrar and
Transfer Agent, in San Francisco, California (the "Bank") , and the
interest hereon is payable by check mailed on each interest payment
date to the owner hereof at the owner's .address as it appears on the
registration books of the Bank, or at such address *as may have been
filed with the Bank for that purpose, as of the fifteenth day
immediately preceding each interest payment date.
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET
FORTH OIL THE REVERSE SIDE HEREOF WHICH SHALL FOR ALL PURPOSES HAVE
THE SAME EFFECT AS THOUGH FULLY SET FORTH HEREIN.
This Bond will continue to bear interest after maturity at
the rate above stated, provided, it is presented at maturity and
payment thereof is refused upon the sole ground that there are not
sufficient moneys in said redemption agency fund with which to pay
9
same. If not presented at maturity, interest on the Bond will run
until maturity.
This Bond sha not be entitled 'to any be it under the
Act or the Resolution Authorizing Issuance of Bonds (the "Resolution
of Issuance") , or become valid or obligatory for any purpose, until
the certificate of authentication and registration hereon endorsed
shall have been dated and signed by the Bank.
IN WITNESS WHEREOF, the City has caused this
Bond to be signed in facsimile by the Treasurer of said City and by
its Clerk, and has caused its corporate seal to be reproduced in
facsimile hereon all as of the 27th day of May, 1992 .
CITY OF DUBLIN
Clerk Treasurer
(SEAL)
CERTIFICATE OF AUTHENTICATION AND REGISTRATION
This is one of the Bonds described in the within mentioned
Resolution of Issuance, which has been authenticated and registered
on
BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION
as paying agent, registrar and transfer agent
By
Authorized Officer
10 - --
(REVERSE OF BOND)
LIM1,+cD OBLIGATION' IMPROVEMENT bvLID
CITY OF DUBLIN
DUBLIN BOULEVARD EXTENSION ASSESSMENT DISTRICT
SERIES NO. 91-1
ADDITIONAL PROVISIONS OF THE BOND
Except for the term bonds maturing in the year 2012, each
bond of this Series No. 91-1 is one of several annual series of
bonds of like date, tenor and effect, 'but differing in amounts,
maturities and interest rates. The Series No. 91-1 bonds have been
issued by the City of Dublin under the Act and the Resolution of
Issuance, for the purpose of providing means for paying for the
improvements described in said proceedings, and are secured by the
moneys in said redemption agency. fund and by the unpaid portion of
said assessments made for the payment of said improvements, and,
including principal and interest, are payable exclusively out of
said fund.
This Bond is transferable by the registered owner hereof, in
person or by the owner' s attorney duly authorized in writing, at
.said office of the Bank, *subject to the terms and conditions
provided in the Resolution of Issuance, including the payment of
certain charges, if any, upon surrender and cancellation of this
Bond. Upon such transfer, a new registered bond or bonds, of any
authorized denomination or denominations, of the Same maturity, for
the same aggregate principal amount, will be issued to the
transferee in exchange therefor.
Bonds shall be registered only in the name of an individual
(including joint owners) , a corporation, a partnership or a trust.
Neither the City nor the Bank shall be required to make such
exchange or registration of transfer of bonds during the fifteen
(15) . days immediately preceding any interest payment date.
The City will not obligate itself to advance available funds
from the City treasury to cure any deficiency which may occur in the
bond redemption agency fund. A determination not to obligate itself
shall not prevent the City from, in its sole. discretion, so
advancing funds.
The City and the Bank may treat the registered owner hereof
as the absolute owner for all purposes, and the City and the Bank
shall not be affected by any notice to the contrary.
This Bond or any portion of it in the amount of $1, 000 or any
integral multiple thereof, may be redeemed and paid in advance of
maturity upon the second,-day of March or September in any year by
giving at least 30 days ' notice by registered or certified mail or
by personal service to the registered, owner hereof at such owner's
address as it appears on the registration books of the Bank and by
11
paying principal and trued interest together W a premium equal
to three percentum c ie principal.
By resolution duly adopted by the City, this Bond has been
designated as a "Qualified Tax-Exempt Obligation" within the meaning
of Section 265 (b) (3) of the Internal Revenue Code of 1986, as
amended.
The term bonds maturing in the year 2012 are subject to
mandatory advance redemption, by lot, without premium, on September
2 in accordance with the following schedule and in the following
amounts, on or after September 2, 2008.
Amount to be
Year Redeeme
2008 $ 165,000
2009 180,000
2010 195,000
2011 2101000
2012 230,000
I hereby certify that the following is a correct copy of the
signed legal opinion of STURGIS, NESS, BRUNSELL & SPERRY a
professional corporation, Emeryville, California, on file in my
office.
city Clerk
12
MATURITY'SCHEDULE*
Maturity Principal .Interest 'Maturity .. Principal Interest
September M)_ mount Rate September 2) Amount �te
1994 $63,000 % 2001 $98.000 %
1995 66,000 2002 105,000
1996 . 70,000 2003 113,000
1997 75,000 2004 121,000
'1998 80,000 2005 131,000
1999 86,000 2006 141,000
2000 91,000 2007 152,000
$958,000 rJo Term Bonds Due September 2, 2012,
(Price 100%)
The Bonds are offered.when, as and if issued and delivered to the Underwriter subject to the
approval as to their legality by Sturgis, Ness, Brunsell& Sperry, a professional corporation, Emeryville,
California. It is expected that the .bonds in temporary or definitive.form Kill be available for delivery.
in New York, New York on or-about 1992,
Rauscher Pierce Refsnes, Inc.
Dated: 1992.
'`Preliminary, subject to change.
L,� XHIBI
A
cry reso lufi w\
RESOLUTION NO.
RESOLUTION ORDERING SALE OF BONDS
DUBLIN BOULEVARD EXTENSION ASSESSMENT DISTRICT 91-1
The City council of the City of Dublin resolves:
The City Council accepts the offer of Rauscher, Pierce,
Refsnes, Inc. (the "Underwriter") to purchase all of the improvement
bonds to be issued in Dublin Boulevard Extension Assessment District
91-1 in accordance with the purchase contract of said Underwriter
attached hereto as Exhibit A 'and by reference incorporated herein.
The City Treasurer of the city is authorized to execute the
agreement, approve the maturity schedule, interest rates, bond date
and closing date for the delivery of bonds provided that the net
interest rate on the bonds does not exceed 8.5% per annum.
The City Council directs the sale and delivery of the
bonds to the offeror in accordance with the terms and conditions
stated in the offer.
PASSED, APPROVED, AND ADOPTED this 27th day of April, 1992 , by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
MAYOR
ATTEST:
city Clerk
1
jo
$2,350,000
LIMITED OBLIGATION IMPROVEMENT BONDS
CITY OF DUBLIN
DUBLIN BOULEVARD EXTENSION ASSESSMENT DISTRICT 91-1
Series 91-1
PURCHASE CONTRACT
May _, 1992
Honorable City Council
City of Dublin
P.O. Box 2340
100 Civic Plaza
Dublin, CA 94568
Dear City Councilmembers:
Rauscher Pierce Refsnes, Inc. (the "Underwriter'), acting not as fiduciary or agent for you,
but on behalf of itself, offers to enter into this Purchase Contract with the City of Dublin (the "City'),
which upon acceptance will be binding upon the City and upon the Underwriter. This offer is made
subject to the City's acceptance by the execution of this Purchase Contract and its delivery to the
Underwriter at or before 5:00 p.m., local time, on the date set forth hereinabove, and, if not so
accepted, will be subject to withdrawal by the Underwriter upon notice delivered to the City at any
time prior to the acceptance hereof by the City.
1. Purchase, Sale and Delivery of the Bonds.
(a) Subject to the terms and conditions and in reliance upon the representations,
warranties and agreements herein set forth, the Underwriter hereby agrees to purchase from the City,
and the City hereby agrees to sell to the Underwriter, all (but not less than all) of the Limited
Obligation Improvement Bonds, City of Dublin, Dublin Boulevard Extension Assessment District 91-1,
Series 91-1 (the 'Bonds'), in an aggregate principal amount of $ , dated as of May _,
1992, earning interest from said date (payable on March 2 and September 2 in each year commencing
on March.2, 1993) at such rates per annum and maturing on such dates in such amounts as set forth
in Exhibit "A" hereto. The purchase price for the Bonds shall be $ , which is the
aggregate principal amount of the bonds, less an underwriting discount of $ . The
Bonds shall be substantially in the form described, shall be issued upon satisfaction of the
contingencies set forth in, shall be secured under the provisions of, and shall be payable and subject
to redemption as provided in a resolution adopted by_the City on . 1992 (as amended from time
to time, the 'Resolution'), the Official Statement dated May _, 1992, relating to the Bonds (the
"Official Statement') and the Improvement Bond Act of 1915, constituting Division 10 of the Streets
and Highways Code of the State of California (the 'Bond Act').
(b) By its acceptance of this proposal, the City approves the Official Statement relating
to the Bonds, with such changes as may be made thereto, with the approval of the City's Bond
Counsel and the Underwriter, from time to time prior to the Closing Date. The City hereby
authorizes the Underwriter to use and distribute in connection with the offer and sale of the Bonds:
the Official Statement, the Resolution, this Purchase Contract and all information contained herein,
and all other documents, certificates and statements furnished by the City to the Underwriter in
connection with the transactions contemplated by this Purchase Contract.
(c) Except as the City and the Underwriter may otherwise agree, the City will deliver to
�Q��"/"�,"�`,,,3,+�14t�^���±Stt�t31/�✓���--�—�j(�/1 _,_m.a.�►.see
the Underwriter in New York, New York, the Bonds, in definitive form, duly executed by the City in
the manner provided for in the Resolution and the Act at 8:00 a.m. local time, on May _, 1992, or
such later date as may be acceptable to the Underwriter (the "Closing Date'); and the Underwriter
will accept such delivery and pay the purchase price of the Bonds as set forth in paragraph (a) of this
section by wire transfer of immediately available funds (such delivery and payment being herein
referred to as the "Closing'). The Bonds shall be made available to the Underwriter not later than
24 hours prior to the Closing Date for purposes of inspection and packaging. The Bonds shall be in
fully registering form and shall be registered in accordance with instructions to be supplied to the
City by the Underwriter.
2. Representations Warranties and Agreements of the City. The City represents and warrants
to and agrees with the Underwriter that:
(a) The City is duly organized and validly existing as a general law city under the
Constitution and laws if the State of California and has, and at the Closing Date will have, full legal
right, power and authority (i) to enter into this Purchase Contract, (ii) to issue, sell and deliver the
Bonds to the Underwriter as provided herein, and (iii) to carry out, give effect to and consummate
the transactions contemplated by this Purchase Contract, the Resolution, the Official Statement and
any City ordinances, resolutions or agreements referred to therein.
(b) The City has complied, and will at the Closing Date be in compliance, in all material
respects with the agreements on its part contained in the Resolution, the Act, and all other applicable
laws and the agreements referred to in subsection (a) hereof.
(c) The City has, or prior to the Closing Date, will have, duly and validly: (i) adopted the
Resolution and approved and authorized the execution and delivery of the Bonds, this Purchase
Contract, the Official Statement and any other applicable agreements; and (ii) authorized and
approved the performance by the City of its obligations contained in, and the taking of any and all
action as may be necessary to carry out, give effect to and consummate the transactions contemplated
by, each of said documents; and at the Closing Date (assuming due authorization, execution and
delivery by the respective other parties thereto, where necessary) the Bonds, the Resolution, this
Purchase Contract, and any other applicable agreements will constitute the valid, legal and binding
obligations of the City, enforceable in accordance with their respective terms, subject to bankruptcy,
insolvency and other laws affecting the enforcement of creditors' rights in general and to the
application of equitable principles if equitable remedies are sought.
(d) The City is not, and at the Closing Date will not be, in any respect material to the
transactions referred to herein or contemplated hereby, in breach of or default under any law or
administrative rule or regulation of the State of California, the United States of America, of any
department, division, agency or instrumentality of either thereof, or any applicable court or
administrative decree or order, of any loan agreement, note resolution, indenture, contract, agreement
or other instrument to which the City is a party or is otherwise subject or bound; and the adoption
of the Resolution, and the execution and delivery of the bonds, this Purchase Contract, any other
applicable agreements and the other instruments contemplated by any of such documents to which
the City is a party, and compliance with the provisions of each thereof, will not, in any respect
material to the transactions referred to herein or contemplated hereby, conflict with or constitute a
breach of or default under any applicable law or administrative rule or regulation of the State of
California, the United States of America, or of any department, division, agency or instrumentality
of either thereof, or any applicable court or administrative decree or other or any loan agreement,
note, resolution, indenture, contract, agreement or other instrument to which the City is a party or
is otherwise subject or bound.
2
(e) All approvals, consents, authorizations, elections, and orders of or filing or
registrations with any governmental authority, board, agency or commission having jurisdiction over
the City which would constitute a condition precedent to, or the absences of which would materially
adversely affect, the performance by the City of its obligations hereunder and under the Resolution,
the Bonds and any other applicable agreements have been obtained.
(f) The Bonds, the Resolution, and other applicable agreements conform as to form and
tenor to the descriptions thereof contained in the Official Statement; and the Bonds, when delivered
to and paid for by the Underwriter on the Closing Date as provided herein, will be validly issued and
outstanding and entitled to all the benefits and security of the Resolution.
(g) The special assessments referred to in the Official Statement have been duly and
lawfully levied under and pursuant to the Municipal Improvement Act of 1913, being Division 12 of
the Streets and Highways Code of the State of California, and such assessments constitute valid and
legally binding liens on the properties on which they have been levied, all as described in the Official
Statement.
(h) Except as disclosed in the Official Statement, there are no outstanding assessment
liens against any of the properties within the City's Dublin Boulevard Extension Assessment District
91-1, Series 91-1 (the 'District') which are senior to the assessment liens referred to in paragraph (g)
hereof.
(i) To the best knowledge of the City, the Official Statement is, and will be, as of the
Closing Date, true, correct and complete in all material respects; and, to the best knowledge of the
City, the Official Statement does not, and will not, as of the Closing Date, contain any untrue
statement of a material fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they were made, not
misleading.
(j) The City (i) certifies to the Underwriter, as of the date hereof, that the Official
Statement dated May _, 1992, furnished on such date in relation to the proposed sale of the Bonds,
was "deemed final" (within the meaning of Rule 15c2-12 promulgated under the Securities Exchange
Act of 1934 ('Rule 15c2-12')) by the City on . 1992, with permitted omissions, subject to
change without notice and to completion or modification in the final Official Statement; (ii) agrees
to provide the Underwriter with as many copies as may be requested of the final Official Statement
adopted by the City in relation to the sale by the City of the Bonds within 7 business days after the
date hereof, at the sole cost and expense of the Dublin Boulevard Extension Assessment District 91-1;
and (iii) agrees to provide the Underwriter, by written notice, of any "developments that impact the
accuracy and completeness of the key representations" (within the meaning of the Rule 15c2-12)
contained in the final Official Statement, which may occur in the period commencing as of the date
hereof and ending on the 90th day next following such date of acceptance, unless such final Official
Statement is available from a "nationally recognized municipal securities information repository"
(within the meaning of Rule 15c2-12), in which event such period shall end on the 25th day next
following such date of acceptance.
(k) The Resolution creates a valid pledge of, lien upon and security interest in the unpaid
assessments in the District and the interest thereon and the monies in all funds and accounts
established pursuant to the Resolution, including the investments thereof, subject in all cases to the
provisions of the Resolution permitting the application thereof for the purposes and on the terms and
conditions set forth therein.
(1) The best knowledge of the City, no action, suit, proceeding, inquiry or investigation,
3
at law or in equity, before or by any court, regulatory agency, or public board of body is pending or
threatened, in any affecting the existence of the City or the titles of its officers to their respective
offices or seeking to restrain or to enjoin the issuance, sale or delivery of the Bonds, the applications
of the proceeds thereof in accordance with the Resolution, the collection or application of
assessments pledge or to be pledged to pay the principal of and interest on the Bonds, or the pledge
thereof, or in any way contesting or affecting the validity or enforceability of the Bonds, the
Resolution, any other applicable agreements, this Purchase Contract, or any action of the City
contemplated by any of said documents, or in any way contesting the completeness or accuracy of the
Official Statement or the powers of the City or its authority with respect to the Bonds, the
Resolution, any other applicable agreements, this Purchase Contract or any action of the City
contemplated by any of said documents, or in any way seeking to enjoin or restrain the City from
approving the development of any of the property within the District, or which would adversely affect
the exclusion from gross income of interest paid on the Bonds from federal income taxation or
exemption under California personal income taxation; nor to the best knowledge of the City, is there
any basis therefor.
(m) The City will furnish such information, execute such instruments and take such other
action in cooperation with the Underwriter as the Underwriter may reasonably request to qualify the
Bonds for offer and sale under the 'blue sky" or other securities laws and regulations of such states
and other jurisdictions of the United States as the Underwriter may designate; provided, however,
that the City shall not be required to consent to service of process outside of California.
(n) Any certificate signed by any official of the City authorized to do so, in connection
with the transaction contemplated hereby, shall be deemed a representation and warranty by the City
to the Underwriter as to the statements made therein.
3. Conditions to the Obligations of the Underwriter. The Obligations of the Underwriter to
accept delivery of and pay for the Bonds on the Closing Dates shall be subject, at the option of the
Underwriter, to the accuracy in all material respects of the representations and warranties on the part
of the City contained herein as of the date hereof and as of the Closing Date; to the accuracy in all
material respects of the statements of the officers and other officials of the City, as well as of the
other individuals referred to herein, made in any certificates or other documents furnished pursuant
to the provisions hereof; to the performance by the City of its obligations to be performed hereunder
at or prior to the Closing Date; and to the following additional conditions:
(a) At the Closing Date, the Resolution, and any other applicable agreements, shall be
in full force and effect, and shall not have been amended, modified or supplemented, except as may
have been agreed to in writing by the Underwriter, and there shall have been taken in connection
therewith, with the issuance of the Bonds and with the transactions contemplated thereby and by this
Purchase Contract, all such actions as, in the opinion of Sturgis, Ness, Brunsell & Sperry, a
professional corporation ('Bond Counsel'), shall be necessary and appropriate;
(b) At the Closing Date, taxes and assessments shall not be delinquent on properties
within the Assessment District which bear more than five percent (5%) of the aggregate amount of
the assessments then remaining unpaid except as specifically approved by the Underwriter;
(c) Between the date hereof and the Closing Date, the market price or marketability of
the Bonds shall not have been materially adversely affected, in the judgment of the Underwriter
(evidence by a written notice to the City terminating the obligation of the Underwriter to accept
delivery of and pay for the Bonds), by reason of any of the following:
(i) legislation introduced in or enacted by the Congress or recommended to the
4
Congress by the President of the United States, the Department of the Treasury, the Internal
Revenue Service, or any member of the Congress, or favorably reported for passage to either
House of Congress by any committee of such House to which such legislation has been
referred for consideration, or a decision rendered by a court established under Article III of
the Constitution of the United States of America or by the Tax Court of the United States
of America, or an order, ruling, regulation (final, temporary or proposed), press release or
other form of notice issued or made by or on behalf of the Treasury Department of the
United States of America or the Internal Revenue Service, with the purpose or effect, directly
or indirectly, of imposing federal income taxation upon such interest as would be received by
any Owners of the Bonds in a manner contemplated in the Official Statement;
(ii) legislation introduced in or enacted (or resolution passed) by the Congress or
an order, decree or injunction issued by any court of competent jurisdiction, or an order,
ruling, regulation (final, temporary or proposed), press release or other form of notice issued
or made by or on behalf of the Securities and Exchange Commission, or any other
governmental agency having jurisdiction of the subject matter, to the effect that obligations
of the general character of the Bonds, including any or all underlying arrangements, are not
exempt from registration under or other requirements of the Securities Act of 1933, as
amended, or that the Resolution is not exempt from qualification under or other requirements
of the Trust Indenture Act of 1939, as amended, or that the issuance, offering or sale of
obligations of the general character of the Bonds, including any or all underlying
arrangements,as contemplated hereby or by the Official Statement or otherwise, is or would
be in violation of the federal securities law as amended and then in effect;
(iii) a general suspension of trading in securities on the New York Stock Exchange
or the American Stock Exchange, the establishment of minimum prices on either such
exchange, the establishment of material restrictions (not in force as of the date hereof) upon
trading securities generally by any governmental authority or any national securities exchange,
a general banking moratorium declared by federal, State of New York or State of California
officials authorized to do so, or a war or other national calamity only if such event, in the
opinion of the Underwriter, adversely affects the price of the Bonds;
(iv) the withdrawal or downgrading of any rating of any securities of the City by
a national rating agency;
(v) any amendment to the federal or California Constitution or action by any
federal or California court, legislative body, regulatory body or other authority materially
adversely affecting the tax status of the City, its property, income, securities (or interest
thereon), the validity or enforceability of the Assessments;
(vi) the New York Stock Exchange or other national securities exchange or any
governmental authority, shall impose, as to the Bonds or obligations of the general character
of the Bonds, any material restrictions not now in force, or increase materially those now in
force, with respect to the extension of credit by, or the charge to the net capital requirements
of, underwriters; or
(vii) any event occurring, or information becoming known which, in the judgment
of the Underwriter, makes untrue in any material respect any statement or information
contained in the Official Statement, or has the effect that the Official Statement contains any
untrue statement of material fact or omits to state a material fact required to be stated
therein or necessary to make the statements therein, in the light of the circumstances under
which they were made, not misleading;
5
(d) At or prior to the Closing Date, the Underwriter shall have received two counterpart
originals of certified copies of the following documents, in each case satisfactory in form and
substance to the Underwriter:
(i) The Official Statement, executed on behalf of the City by its City Manager or
such other official as may be authorized by the Resolution;
(ii) The Resolution, together with a certificate of the City Clerk, dated as of the
Closing Date, to the effect that it is a true, correct and complete copy of the one duly
adopted by the City and that it has not been amended, modified or rescinded (except as may
have been agreed to by the Underwriter) and is in full force and effect as of the Closing
Date;
(iii) An opinion, dated the Closing Date and addressed to the City, of Bond
Counsel to the effect that the Bonds are valid, legal, binding obligations of the City and that
the interest thereon is excluded from gross income for purposes of federal income taxes, is
not a specific preference item for purposes of federal individual and corporate alternative
minimum taxes and is exempt from personal income taxes of the State of California, all as
provided in the Official Statement together with an unqualified opinion of Bond Counsel,
dated the Closing Date and addressed to the Underwriter, to the effect that such opinion
addressed to the City may be relied upon by the Underwriter to the same extent as if such
opinion was addressed to it;
(iv) An opinion, dated the Closing Date and addressed to the Underwriter, of Bond
Counsel to the effect that (1) this Purchase Contract has been duly authorized, executed and
delivered by the City, and, assuming due authorization, execution and delivery by the
Underwriter, constitutes a legal, valid and binding agreement of the City, enforceable in
accordance with its terms, subject to bankruptcy, insolvency and other laws affecting the
enforcement of creditors' rights in general and except as such enforceability may be limited
by the application of equitable principles if equitable remedies are sought; (2) the Bonds are
not subject to the registration requirements of the Securities Act of 1933, as amended, and
the resolution is exempt from qualification under the Trust Indenture Act of 1939, as
amended, (3) based upon the information made available to them in the course of the
preparation of the Official Statement and without having undertaken to determine
independently or assuming any responsibility for the accuracy, completeness or fairness of the
statements contained in the Official Statement, such counsel do not believe that the Official
Statement, as of its date and as of the Closing Date, contains any untrue statement of a
material fact or omits to state a material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which they were made,
not misleading (except that no opinion or belief need be expressed as to any appendices and
any other financial and statistical data contained in the Official Statement); and (4) the
Resolution creates a valid pledge of, lien upon and security interest in the proceeds of the
Bonds, the unpaid assessments in the District and the interest thereon, and the monies if all
funds and accounts established pursuant to the Resolution, including the investments thereof,
subject in all cases to the provisions of the Resolution permitting the application thereof for
the purpose and on the terms and conditions set forth therein;
(v) A certificate, dated the Closing Date and signed by the City Manager of the
City or such other officer of the City as may be authorized.by the Resolution, to the effect
that (1) the representations and warranties of the City contained herein are true and correct
in all material respects on and as of the Closing Date with the same effect as if made on the
Closing Date; (2) to the best knowledge of said officer, no event has occurred since the date
6
of the Official Statement which should be disclosed in the Official Statement in order to make
the statements and information therein not misleading in any material respect; and (3) the
City has complied with all the agreements and satisfied all the conditions on its part to be
performed or satisfied under this Purchase Contract, the Resolution. and the Official
Statement at and prior to the Closing Date;
(vi) An opinion, dated the Closing Date and addressed to the Underwriter, of the
City Attorney, to the effect that (1) to her best knowledge after diligent inquiry no action,
suit, proceeding, inquiry or investigation, at law or in equity, before or by any court,
regulatory agency, public board or body, is pending or threatened in any way affecting the
existence of the City or the titles of its officers to their respective offices, or seeking to
restrain or to enjoin the issuance, sale or delivery of the Bonds, the application of the
proceeds thereof in accordance with the Resolution, the collection or application of the
Assessments and the interest thereon to pay the principal of and interest on the Bonds, or
in any way contesting or affecting the validity or enforceability of the Bonds, the Resolution,
this Purchase Contract, or any other applicable agreements or any action of the City
contemplated by any of said documents, or in any way contesting the completeness or
accuracy of the Official Statement or the powers of the City or its authority with respect to
the Bonds, the Resolution, this Purchase Contract, or any other applicable agreement, or any
action on the part of the City contemplated by any of said documents, or in any way seeking
to enjoin or restrain the City from approving the development of any of the property within
the District, or which challenges the exemption of interest paid on the Bonds from federal
income taxation or California personal income taxation, nor to her knowledge is there any
basis therefor; (2) the City is duly organized and validly existing as a general law city of the
State of California under the Constitution and laws thereof with full legal right, power and
authority to issue the Bonds and to perform all of its obligations under this Purchase
Contract, the Bonds, and all other applicable agreements; (3) the City has duly and validly
adopted the Resolution, and it is in full force and effect; (4) the City had duly authorized,
executed and delivered this Purchase Contract and the Official Statement; and (5) the
statements contained in the Official Statement, to the best of her knowledge after diligent
inquiry, do not contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading;
(vii) A transcript of all proceedings relating to the authorization, issuance, sale and
delivery of the Bonds;
(viii) A certificate, dated the Closing Date and signed by an authorized
representative of the property owner(s) of "the District", as identified in the Official
Statement for the Bonds, to the effect that (1) such representative is authorized to execute
said certificate on behalf of said owner(s); and (2) as it pertains to the development and
developers of property within the Assessment District, the Official Statement does not contain
any untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances under which
they were made, not misleading;
(ix) Such additional legal opinions, certificates (including a non-arbitrage
certificate), instruments and other documents as the Underwriter may reasonably request to
evidence the truth and.-accuracy, as of the date hereof and as of the Closing Date, of the
City's representations and warranties contained herein and of the statements and information
contained in the Official Statement and the due performance or satisfaction by the City at or
prior to the Closing of all agreements then to be performed and all conditions then to be
7
satisfied by the City in connection with the transactions contemplated hereby and by the
Resolution and the Official Statement.
If any of the conditions to the obligations of the Underwriter contained in this section or
elsewhere in this Purchase Contract shall not have been satisfied when and as required herein, all
obligations of the Underwriter hereunder may be terminated by the Underwriter at, or at any time
prior to, the Closing Date by written notice to the City.
4. Expenses.
(a) Whether or not the Underwriter accepts delivery of and pays for the Bonds as set
forth herein, it shall be under no obligation to pay, and the City shall pay or cause to be paid (out
of proceeds of the Bonds or any other legally available funds of the City) all expenses incident to the
performance of the City's obligations hereunder, including, but not limited, to the cost of preparing,
printing, engraving and delivering the Bonds to the Underwriter; the cost of preparing (including
Counsel fees in connection therewith), printing, distribution and delivery of the Preliminary Official
Statement and the Official Statement and any supplement or amendment thereto which may
hereinafter be required, in reasonable quantities as requested by the Underwriter; the fees and
disbursements and Bond Counsel, accountants, engineers, appraisers, economic consultants and any
other experts or consultants retained by the City in connection with the Bonds; and any other
expenses not specifically enumerated in paragraph (b) of this section incurred in connection with the
issuance of the Bonds.
(b) Whether or not the Bonds are delivered to the Underwriter as set forth herein, the
City shall be under no obligation to pay, and the Underwriter shall pay, all expenses paid or incurred
to qualify the Bonds for sale under any 'blue sky" laws; and all other expenses paid or incurred by
the Underwriter in connection with its offering and distribution of the Bonds not specifically
enumerated in paragraph (a) of this section.
5. Notices. Any notice or other communication to be given to the City under this Purchase Contract
may be given by delivering the same in writing to the City Manager, City of Dublin, P.O. Box 2340,
100 Civic Plaza, Dublin, CA 94568, and any notice of other communication to be given to the
Underwriter under this Purchase Contract may be given by delivering the same in writing to Rauscher
Pierce Refsnes, Inc., One Market Plaza, 1100 Steuart Street Tower, San Francisco, CA 94105.
6. Parties in Interest. This Purchase Contract is made solely for the benefit of the City and the
Underwriter (including successors or assignees of the Underwriter) and no other person, including,
but not limited to, any owner of land within the District, shall acquire or have any right hereunder
or by virtue hereof.
7. Survival of Representatives and Warranties. The representations and warranties of the City, set
forth in or made pursuant to this Purchase Contract, shall not be deemed to have been discharged,
satisfied or otherwise rendered void by reason of the Closing or termination of this Purchase
Contract, regardless of any investigations made by or on behalf of the Underwriter (or statements
as to the results of such investigations) concerning such representations and statements of the City
and regardless of delivery of and payment for the Bonds.
8. Offering by Underwriter. It is understood that the Underwriter proposes to offer the Bonds for
sale to the public (which may include selected dealers) as set forth in the Official Statement.
Concessions from the public offering price may be allowed to selected dealers. It is understood that
the initial public offering price and concessions set forth in the Official Statement may vary after the
initial public offering. It is further understood that the Bonds may be offered to the public at prices
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other than the par value thereof after the initial public offering. The net premium on the sale of the
Bonds, subsequent to the initial public offering, if any, shall accrue to the benefit of the Underwriter.
The City hereby confirms the authority and use by the Underwriter of the Official Statement.
9. Time. Time shall be of the essence of the Agreement.
10. Counterparts. This Agreement may be executed in any number of counterparts.
11. Effective. This Purchase Contract shall become effective and binding upon the respective parties
hereto upon the execution of the acceptance hereof by the City and shall be valid and enforceable
as of the time of such acceptance.
Very truly yours,
RAUSCHER PIERCE REFSNES, INC.
By:
Managing Director
ACCEPTED:
City of Dublin
City Manager
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EXHIBIT "A"
MATURITY SCHEDULE
Due September 2 Principal Amount Interest Rate
1993 $ %
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
(Price 100%)
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