HomeMy WebLinkAbout1986-402
.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
RESOLUTION NO. ~02
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF
THE CITY OF SAN BERNARDINO PROVIDING FOR THE
SALE OF NOT TO EXCEED $2,875,000 PRINCIPAL
AMOUNT OF CERTIFICATES OF PARTICIPATION
(CITY OF SAN BERNARDINO 1986 PROJECTS)
WHEREAS, the Mayor and Common Council of the City of San
Bernardino (the "City") have adopted its Resolution entitled:
"Resolution of the Mayor and Common Council of the City of San
Bernardino Authorizing Execution and Delivery by the City of Lease
Agreement, Trust Agreement and Agency Agreement with Respect to
the Issuance and Sale of Certificates of Participation (City of
San Bernardino 1986 Projects), Appointing Trustee and Authorizing
Issuance of Such Certificates in an Amount Not to Exceed
$2,875,000"; and
WHEREAS, the City deems it necessary to provide for the
sale at this time of $2,875,000 principal amount of Certificates
of Participation (City of San Bernardino 1986 Projects) Evidencing
a Proportionate Interest of the Holder Thereof in Lease Payments
to be made by the City Pursuant to the Lease Agreement approved by
the Resolution mentioned above.
NOW, THEREFORE, BE IT RESOLVED, AND ORDERED by the Mayor
and the Common Council of the City of San Bernardino as follows:
SECTION 1.
Sale Authorized.
The sale of Two Million
Eight Hundred and Seventy-Five Thousand Dollars ($2,875,000)
principal amount Certificates of Participation (City of San
Bernardino 1986 Projects) Evidencing a Proportionate Interest of
the Holder Thereof in Lease Payments to be made by the City of San
Bernardino Pursuant to a Lease Agreement with the Redevelopment
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Agency of the City of San Bernardino (herein sometimes referred to
as the "Certificates"), in accordance with law, is hereby autho-
rized.
SECTION 2. Official Notice of Sale. The invitation for
bids for the purchase of the Certificates is hereby authorized,
such invitation to be substantially in accordance with (i) the
Official Notice of Sale attached to and incorporated herein as
Exhibit "A" (the "Official Notice of Sale) and Iii) the Bid Form
attached to and incorporated herein as Exhibit "B" (the "Bid
Form"), with both of said forms being subject to such changes and
modifications as may be deemed appropriate or necessary by City
Staff and the City Attorney.
SECTION 3. Publication of Official Notice of Sale. The
City Clerk shall cause the Official Notice of Sale to be published
once in The Sun, a newspaper published and of general circulation
in the City of San Bernardino, California, at least ten (10) days
prior to the day fixed for the receipt of bids.
SECTION 4. Terms and Conditions of Sale. The terms and
conditions of the offering and the sale of the Certificates shall
be as specified in said Official Notice of Sale, including such
modifications thereto as permitted pursuant to Section 2 hereof.
SECTION 5. Official Statement Authorized. The City
hereby approves the form of official statement (the "Official
Statement") prepared by Miller & Schroeder Financial, Inc. (the
"Financial Consultant"), as presented to this meeting, and
authorizes its distribution in connection with the sale of the
Certificates, with such changes, omissions, insertions and
revisions as the Mayor may deem advisable and as shall be approved
-2-
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
by Special Counsel.
SECTION 6. Furnishing of Official Notice of Sale and
Official Statement. The City Clerk and the Financial Consultant
are hereby authorized and directed to cause to be furnished to
prospective bidders a reasonable number of copies of the Official
Notice of Sale (including the Bid Form) and a reasonable number of
copies of the Official Statement.
SECTION 7. Publication of Intention to Sell. The
publication of a Notice of Intention to Sell in the Bond Buyer,
One State Street Plaza, New York, New York, substantially in the
form attached hereto as Exhibi t "c" wi th such changes and
modifications as may be deemed appropriate and necessary by City
Staff and the City Attorney is hereby authorized and approved,
which publication shall be at least 15 days prior to the date
fixed for the receipt of bids.
SECTION 8. Financial Consultant to Bid. Pursuant to
Government Code Sections 53690 to 53692, inclusive, the Financial
Consultant has given the City written notice that it intends to
bid on the Certificates, and the City hereby consents to the
Financial Consultant acting as underwriter at such sale.
SECTION 9. General Authorization. The Financial
Consultant and/or Special Counsel are hereby authorized and
directed to open the bids at the time and place specified in said
Official Notice of Sale and to present the same to the City. The
Financial Consultant and/or Special Counsel are hereby authorized
and directed to receive and record the receipt of all bids made
pursuant to said Official Notice of Sale, to cause said bids to be
examined for compliance with said Official Notice of Sale, to
-3-
1 cause computations to be made as to which bidder has bid the
2 lowest net interest cost to the City and to present such bids to
3 the City, as provided in said Official Notice of Sale, along with
4 a report as to the foregoing and any other matters deemed per-
5 tinent to the award of the sale of the Certificates and the
6 proceedings for the issuance thereof.
7
SECTION 10. Effective Date. This Resolution shall take
8 effect upon adoption.
9 I HEREBY CERTIFY that the foregoing resolution was duly
10 adopted by the Mayor and Common Council of the City of San
11 Bernardino at a
reaular
meeting thereof, held on the
12 6th day of October , 1986, by the following vote, to wit:
13
14
AYES:
Council Members Estrada. Reilly Hernandez,
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Marks. Ouiel. Frazier Strickler
NAYS:
None
ABSENT:
None
~/~~/
Ci ty' Clerk
The foregoing resolution is hereby approved this It( day
of October , 1986.
Ma or 0 the Clty
San Bernardino
A~l~~
Cl ty At orney
-4-
__________ ___u_
~ni --:;;:;;t.~~;:;'--::i'.1I~~!~.~~&12~?S:il;;:? .:;~:~:;i;~~:~:: !=:J:.::~;} ':jit.:;':';'!','j!>!\L" ;::J.~t.L '!';;1t.~,'_:;'_-;;','i.~~~,~_}:i!~iL':f.~1~\i.:'i'_fJi;j\,-.:,
~~j
l,t11 CALIFORNIA LAND TITLE ASSOCIATION
Ir~1! STANDARD COVERAGE POLICY 1973
~ , 'I !
:;;1',
~I
- ----- - -- "'lIl
c,~;~ -- ",~,c:' -'c"'''' ",,,,c. "'~~~ -ria
ilil" ;)0_<1:
1,r:1
j I
I .
"I
.}I
';"'i:':\''''
CHICAGO
INSURANCE
TITLE
COMPANY
SUBJECT TO SCHEDULE B AND THE CONDITIONS AND STIPULATIONS HEREOF,
CHICAGO TITLE INSURANCE COMPANY, a Missouri corporation, herein called the Company,
insures the insured, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding
the amount of insurance stated in Schedule A, and costs, attorneys' fees and expenses which the
Company may become obligated to pay hereunder, sustained or incurred by said insured by reason of:
1;(;:
I:;'
1":-
I.
i::',.
i"
1. Title to the estate or interest described in Schedule A being vested other than as stated therein;
2. Any defect in or lien or encumbrance on such title;
3. Unmarketability of such title; or
4. Any lack of the ordinary right of an abutting owner for access to at least one physically open street
or highway if the land, in fact, abuts upon one or more such streets or highways;
and in addition, as to an insured lender only:
~;
5. Invalidity of the lien of the insured mortgage upon said estate or interest except to the extent that
such invalidity, or claim thereof, arises out of the transaction evidenced by the insured mortgage
and is based upon
"
~,.
a. usury, or
b. any consumer credit protection or truth in lending law;
,',
~;;
6. Priority of any lien or encumbrance over the lien of the insured mortgage, said mortgage being shown
in Schedule B in the order of its priority; or
...1
r:~:::
IJ
1'1'
I~,;
1'!1
f-!
,]
~"I
"!
'-'1
f",j
t"'i
II';:;
.1
.;:'1
"j
7. Invalidity of any assignment of the insured mortgage, provided such assignment is shown in
Schedule B.
In Witness Whereof, CHICAGO TITLE INSURANCE COMPANY has caused this policy to be
signed and sealed as of the date of policy shown in Schedule A, the policy to become valid when
countersigned by an authorized signatory.
CmCAGO TITLE INSURANCE COMPANY
Issued by:
CHICAGO TITLE COMPANY
306 West Second Street
San Bernardino, California 92402
(714) 884-0448
I:{,'
r,
~_ .' ,.j / AA!zt!"
. I ,{L~ I
;i:,.LiI'
. t/
v
if~!~
Secretary .
CONDITIONS AND STIPULATIONS
1. Deflnltlon of Term.
The following terms when used in this policy mean:
(a) "insured": the insured named in Schedule A, and, subject
to any rights or defenses the Company may have had against the
named insured, those who succeed to the interest of such insured
by operation of Jaw as distinguished from purchase including, but
not limited to, heirs, distributees, devisees, survivors, personal
representatives, next of kin, or corporate or fiduciary successors.
The term "insured" also includes (i) the owner of the indebted-
ness secured by the insured mortgage and each succe~;sor in
ownership of such indebtedness (reserving, however, all rights
and defenses as to any such successor who acquires the indebted-
ness by operation of law as described in the first sentence of
this subparagraph (a) that the Company would have had against
the successor's transferor), and further includes (ii) any govern-
mental agency or instrumentality which is an insurer or guarantor
under an insurance contract or guaranty insuring or guaranteeing
said indebtedness, or any part thereof, whether named as an
insured herein or not, and (iii) the parties designated in para-
graph 2(a) of these Conditions and Stipulations.
(b) "insured claimant": an insured claiming loss or dam-
age hereunder.
(c) "insured lender": the owner of an insured mortgage.
(d) "insured mortgage": a mortgage shown in Schedule 8,
the owner of which is named as an insured in Schedule A.
Ce) "knowledge": actual knowledge, not constructive knowl-
edge or notice which may be imputed to an insured by reason
of any public records.
(f) "land": the land described, specifically or by reference
in Schedule A. and improvements affixed thereto which by law
constitute real property; provided, however, the term "land" does
not include any area excluded by Paragraph No.6 of Part I of
Schedule 8 of this Policy.
(g) "mortgage": mortgage, deed of trust, trust deed, or
other security instrument.
(h) "public records": those records which by law impart
constructive notice of matters relating to the land.
2. (a) Continuation of Insurance after Acquisition af Title by
Insured Lender
If this policy insures the owner of the indebtedness secured
by the insured mortgage, this policy shall continue in force as
of Date of Policy in favor of such insured who acquires all
or any part of the estate or interest in the land described in
Schedule A by foreclosure, trustee's sale, conveyance in lieu of
foreclosure, or other legal manner which discharges the lien of
the insured mortgage. and if such insured is a corporation, its
transferee of the estate or interest so acquired, provided the trans-
feree is the parent or wholly owned subsidiary of such insured;
and in favor of any governmental agency or instrumentality which
acquires all or any part of the estate or interest pursuant to a
contract of insurance or guaranty insuring or guaranteeing the
indebtedness secured by the insured mortgage. After any such
acqubition the amount of insurance hereunder, exclusive of costs,
attorneys' fees and expenses which the Company may be obligated
to pay, shall not exceed the least of:
(i) the amount of insurance stated in Schedule A;
(ii) the amount of the unpaid principal of the indebted-
ness plus interest thereon, as determined under para-
graph 6(a) (iii) hereof, expenses of foreclosure and
amounts advanced to protect the lien of the insured
mortgage and secured by said insured mortgage at
the time of acquisition of such estate or interest in
the land; or
(iii) the amount paid by any governmental agency or
instrumentality, if such agency or instrumentality is
the insured claimant, in acquisition of such estate or
interest in satisfaction of its insurance contract or
guaranty.
(b) Continuation of Insurance after Conveyance of Title
The coverage of this policy shall continue in force as of Date
of Policy, in favor of an insured so long as such insured retains
an estate or interest in the land, or owns an indebtedness secured
by a purchase money mortgage given by a purchaser from such
insured or so long as such insured shall have liability by reason
of cov~nants of warranty made by such insured in any transfer
or conveyance of such estate or interest; provided, however, this
policy shall not continue in force in favor of any purchaser from
such insured of either said estate or interest or the indebtedness
secured by a purchase money mortgage given to such insured.
3. Defense and Prosecution of Actlons-Notlce of Claim to be
Given by an Insured Claimant
(a) The Company, at its own cost and without undue delay,
shall provide for the defense of an insured in litigation to the
extent that such 'litigation ~involves an alleged defect, lien, encum-
brance or other matter insured against by this policy.
(b) The insured shaH notify the Company promptly in
writing (i) in case of any litigation as set forth in (a) above,
(ii) in case knowledge shall come to an insured hereunder of
any claim of title or interest which is adverse to the title to the
estate or interest or the lien of the insured mortgage, as insured,
and which might cause loss or damage for which the Company
may be liable by virtue of this policy, or (iii) if title to the estate
or interest or the lien of the insured mortgage, as ins'lred, is
rejected as unmarketable. If such prompt notice shall not be
given to the Company, then as to such insured all liability of
the Company shall cease and terminate in regard to the matter
or matters for which such prompt notice is required; provided,
however, that failure to notify shall in no case prejudice the
rights of any such insured under this policy unless the Company
shall be prejudiced by such failure and then only to the extent
of such prejudice.
(c) The Company shall have the right at its own cost to
institute and without undue delay prosecute any action or pro~
ceeding or to do any other act which in its opinion may be neces-
sary or desirable to establish the title to the estate or interest or
the lien of the insured mortgage, as insured; and the Company
may take any appropriate action, whether or not it shall be liable
under the terms of this policy, and shall not thereby concede
liability or waive any provision of this policy.
(d) Whenever the Company shall have brought any action
or interposed a defense as required or permitted by the provisions
of this policy, the Company may pursue any such litigation to final
determination by a court of competent jurisdiction and expressly
reserves the right, in its sole discretion, to appeal from any adverse
judgment or order.
(e) In all cases where _ this policy permits or requires the
Company to prosecute or provide for the defense of any action
or proceeding, the insured hereunder shall secure to the Company
the right to so prosecute or provide defense in such action or
proceeding, and all appeals therein, and permit the Company to
use, at its option, the name of such insured for such purpose.
Whenever requested by the Company, such insured shall give the
Company, at the Company's expense, all reasonable aid (I) in any
such action or proceeding in effecting settlement, securing evidence,
obtaining witnesses, or prosecuting or defending such action or
proceeding, and (2) in any other act which in the opinion of the
Company may be necessary or desirable to establish the title to
the estate or interest or the lien of the insured mortgage, as insured,
including but not limited to executing corrective or other docu-
ments.
4. Proof of Loss or Damage-Limitation af Action
In addition to the notices required under Paragraph 3 (b) of
lhese Conditions and Stipulations, a proof of loss Or damage, signed
and sworn to by the insured claimant shall be furnished to the
Company within 90 days after the insured claimant shall ascertain
or determine the facts giving rise to such loss or damage. Such
proof of loss or damage shall describe the defect in, or lien or
encumbrance on the title, or other matter insured against by this
policy which constitutes the basis of loss or damage, and, when
appropriate, state the basis of calculating the amount of such loss
or damage.
Should such proof of loss or damage fail to state facts sufficient
to enable the Company to determine its liability hereunder, insured
claimant, at the written request of Company, shall furnish such
additional information as may reasonably be necessary to make
such determination.
No right of action shall accrue to insured claimant until 30 days
after such proof of loss or damage shall have been furnished.
Failure to furnish such proof of loss or damage shall terminate
any liability of the Company under this policy as to such loss or
damage.
5. Options to Pay ar Otherwise Settle Claims and Options to
Purchase Indebtedness
The Company shall have the option to payor otherwise settle for
or in the name of an insured claimant any claim insured against, or
to terminate all liability and obligations of the Company hereunder
by paying or tendering payment of the amount of insurance under
this policy together with any costs, attorneys' fees and expenses
incurred up to the time of such payment or tender of payment by
the insured claimant and authorized by the Company. In case loss
or damage is claimed under this policy by the owner of the
indebtedness secured by the insured mortgage, the Company shall
have the further option to purchase such indebtedness for the
amount owing thereon together with all costs, attorneys' fees and
expenses which the Company is obligated hereunder to pay. If the
Company offers to purchase said indebtedness as herein provided,
the owner of such indebtedness shall transfer and assign said
indebtedness and the mortgage and any collateral securing the same
to the Company upon payment therefor as herein provided. Upon
such offer being made by the Company, all liability and obligations
of the Company hereunder to the owner of the indebtedness
AlSO
CLTA OWNER LEASEHOLD POLICY
. CHICAGO TITLE INSURANCE COMPANY
SCHEDULE A
PolicV No. 892B6S-3
Date of PolicV
NOVEMBER 2~. 1986
12: 22 P. M.
Amount of
Insurance: .1.1~0.OOO.OO
Charge .2.6B7.~0
1. Name of Insured:
Tt-jE CITY OF SAN BERNARDINO. A CHARTERED CITY. DULY OROANIZED AND EXISTINO
UNDER THE CONSTITUTION AND LAWS OF SAID STATE AND SECURITY PACIFIC
NATIONAL BANK. A NATIONAL BANKINO ASSOCIATION DULY OROANIZED AND EXISTINO
UNDER THE LAWS OF THE UNITED STATES OF AMERICA. AS TRUSTEE
2. The estate or interest in the land described herein and which is covered bV
this policV is:
A LEASEHOLD ESTATE CREATED BY THAT CERTAIN LEASE AOREEMENT RELATINO TO
CITY OF SAN BERNARDINO 19B6 PRO~ECTS. DATED AS OF OCTOBER 01. 1986 BY AND
BETWEEN THE REDEVELOPMENT AOENCY OF THE CITY OF SAN BERNARDINO AS LESSOR
AND THE CITY OF SAN BERNARDINO. AS LESSEE. RECORDED NOVEMBER 25. 19B6 AS
INSTRUMENT NO. B6-357444.
THE LESSEE'S INTEREST IN SAID LAND HAS BEEN ASSIONED BY THAT CERTAIN
ASSIONMENT AOREEMENT BY AND BETWEEN THE REDEVELOPMENT AOENCY OF THE CITY
OF SAN BERNARDINO AND SECURITY PACIFIC NATIONAL BANK. AS TRUSTEE DATED
OCTOBER 01. 19B6 AND RECORDED NOVEMBER 25. 19B6 AS INSTRUMENT
NO. B6-357445.
3. The estate or interest referred to herein is at Date PolicV vested in:
SECURITY PACIFIC NATIONAL BANK. A NATIONAL BANKINO ASSOCIATION DULY
OROANIZED AND VALIDLY EXISTINO UNDER THE LAWS OF THE UNITED STATES OF
AMERICA. AS TRUSTEE
4. The land referred to in this POlicV' in the Countv of San Bernardino. State
of California. is described as follows:
SEE LEOAL ATTACHED
,~-""
\
This PolicV valid onlV if Schedule B is attached.
Page
1
I
FORM3&4lI.05
. CHICAGO TITLE INSURANCE' COMPANY
SCHEDULE A (Continued) PolicV No. 89286S-3
LEQAL DESCRIPTION:
THAT PORTION OF LOT 31. TRACT NO. 12034. PER MAP ON FILE IN BOOK 168 OF
MAPS, PAQES 75-87. RECORDS OF BAN BERNARDINO COUNTY. STATE OF CALIFORNIA.
MORE PARTICULARLY DESCRIBED AS:
BEQINNINQ AT THE SOUTHWEST CORNER OF LOT 31. THENCE NORTHERLY ALONQ THE
WEST LINE OF SAID LOT. A DISTANCE OF 290.00 FEETI THENCE SOUTH 89 DEQREES
58' 58" EAST. A DISTANCE OF 225.00 FEETI THENCE SOUTH 00 DEQREES 01' 02"
WEST. A DISTANCE OF 190.00 FEET I THENCE SOUTH 21 DEQREES 15' 19" WEST. A
DISTANCE OF 143. 18 ,FEET I TO A POINT ON A NON-TANQENT CURVE THROUQH WHICH A
RADIAL LINE BEARS NORTH 21 DEQREES 15' 19" EAST WITH A RADIUS OF 493.00
FEETI SAID POINT BEINQ ON THE NORTH RIQHT OF WAY OF VANDERBILT WAYI THENCE
NORTHWESTERLY ALONQ SAID CURVE THROUQH A CENTAL ANQLE OF 20 DEQREES 36'
16". A DISTANCE OF 177.29 FEET TO THE TRUE POINT OF BEQINNINQ.
This PolicV velid onlV if Schedule B is etteched.
Pege
2
FORM3&48-05
~.
. CHICAGO TITLE INSURANCE COMPANY
SCHEDULE B
PolicV No. B9286S-3
Thi. policV do.. not in.ur. .g.in.t 10.. or d.m.g., nor .g.in.t co.t.,
.ttorn.v.' f... or .xp.n..., .nv or .11 or which .ri.. bV r...on of the
follollling:
PART I
1. T.x.. or ......m.nt. which .r. not .hown .. .xi.ting li.n. bV the r.cord.
of .nv t.xing .uthoritv th.t l.vi.. t.x.. or ......m.nt. on r..l prop.rtv
or bV the publiC r.cord..
2. AnV '.ct., right., int.r..t or cl.im. which .r. not .hollln bV the public
r.cord. but IIIhich could b. ..c.rt.in.d bV .n in.p.ction of the l.nd or bV
m.king inquirv of p.r.on. in po.....ion th.r.of.
3. E...m.nt., li.n. or .ncumbr.nc.., or cl.im. th.r.o', IIIhich .r. not .hown bV
the public r.cord.
~ Di.cr.p.nci.., conflict. in bound.rv lin.., .hort.g. in .r..,
.ncro.chm.nt., or .nv oth.r f.ct. IIIhich . corr.ct .urv.v would di.clo..,
.nd which .r. not .hown bV the public r.cord..
5. (.) Unp.t.nt.d mining cl.im.l (b) r...rv.tion. or .xc.ption. in p.t.nt. or
in Act. .uthorizing the i..u.nc. th.r.ofl (c) ..t.r right., cl.ims or
title to w.t.r, .h.th.r or not the _tt.r. .xc.pt.d und.r (.), (b) or (c)
.r. .hown bV the public r.cord..
6. AnV right, titl., int.r..t, ..t.t. or ....m.nt in l.nd b.vond the lin.. of
the .r.. .p.cific.llV d..crib.d or r.f.rr.d to in Sch.dul. A, or in
.butting .tr..t., ro.d., .v.nu.., .11.V.' l.n.., III.V. or w.t.r~v., but
nothing in this p.r.gr.ph .h.ll modifv or limit the .xt.nt to which the
ordin.rv right of .n .butting ollln.r for .cc... to . phV.ic.llV op.n .tr..t
or high~V i. in.ur.d bV this policV.
7. Anv I.., ordin.c. or gov.rnm.nt.l r.gul.tion (including but not limit.d to
building .nd zoning ordin.nc..) r..tricting or r.gul.ting or prohibiting
the occup.ncv, u.. or .nJovm.nt of the l.nd, or r.gul.ting the ch.r.ct.r,
dim.n.ion. or loc.tion of .nV improv.m.nt nOIll or h.r..ft.r .r.ct.d on the
l.nd, or prohibiting. ..p.r.tion in own.r.hip or . ch.ng. in the
dim.n.ion. or .r.. of the l.nd or .nv p.rc.l of which the l.nd i. or III.S .
p.rt, wh.th.r or not .hollln bV the public r.cord. .t D.t. of PolicV' or the
.ff.ct o. .nv viol.tion of .nv .uch l.w. ordin.nc. or gov.rnm.nt.l
r.gul.tion, wh.th.r or not .hown bV the public r.cord. .t D.t. of PolicV.
B. Right. of .min.nt do_in or gov.rnm.nt.l right. o. polic. pow.r unl...
notic. o. the .x.rcis. of .uch right. .pp..r. in the publiC r.cord..
9. D.f.ct., li.n., .ncumbr.nc.., .dv.r.. cl.ims, or oth.r _tt.r. (.) IIIh.ther
or not .hollln bV the public r.cords .t D.t. of PolicV' but cr..t.d,
.u".r.d, ..sum.d or .gr..d to bV the in.ured cl.im.nti (b) not shown bV
the public record. .nd not oth.rllli.. .xclud.d from cover.g. but knollln to
the in.ur.d cl.im.nt .ith.r .t D.t. of PolicV or .t the d.te .uch cl.i..nt
.cquir.d .n est.te or int.rest in.ured bV this policV or .cquir.d the
in.ured mortg.g. .nd not di.clo.ed in IIIriting bV the in.ur.d cl.i_nt to
the Comp.nv prior to the d.t. .uch in.ur.d clai_nt b.c.m. .n in.ur.d
P.g. 3
FORM 3648-05
,CHICAGO TITLE INSURANCE COMPANY
SCHEDULE B (Continu.d) Polic\l No, '89286S-3
h.r.und.rl (c) r.sulting in no loss or d...g. to the insur.d cl.im.ntl
(d) .tt.ching or cr..t.d .ub..~u.nt to D.t. of Polic\ll or (.) r..ulting in
10.. or d.mag. which would not h.v. b..n .u.t.in.d if the in.ur.d cl.i..nt
h.d b..n . purch...r or .ncumbr.nc.r for v.lu. without knowl.dg..
PART I I
1. An ......nt for the h.r.in.ft.r d..crib.d purpo... .nd right. incid.nt.l
ther.to .. cont.in.d in .n In.tru..nt
R.cord.d: IN BOOK '81 PAQE 2'. OF DEEDS
For: DITCHES AND CONDUITS FOR THE CONVEYANCE OF
WATER
Aff.ct.: CANNOT BE LOCATED FROM THE RECORD AND AFFECTS
A PORITON OF SAID LAND
2. An ......nt for the h.r.in.ft.r d..crib.d purpo... .nd right. incid.nt.l
th.r.to .. cont.in.d in .n In.tru..nt
R.cord.d: DECEMBER 10. 1923 IN BOOK 816 PAQE 369, OF
DEEDS
For: PIPELINES
In f.vor of: THE RIVERSIDE ORANQE COMPANY, LIMITED, A
CORPORATION
Th. .x.ct 10c.tion .nd .xt.nt of ..id ......nt i. not di.clo..d of r.cord,
NOTE: SAID DEED CONTAINS THE FOLLOWINQ RESERVATION
THE RIQHT TO ALL WELLS AND APPLIANCES NOW IN OR UPON SAID LAND FOR THE
PURPOSE OF DEVELOPINQ OR OBTAININQ WATER THEREFROM, AND RIQHT AT NN AND
ALL TIMES TO DEVELOP AND TAKE WATER FROM SAID LAND BY MEANS qF SAID WELLS
AND APPLIANCES. OR OTHER WELLS OR APPLIANCES THAT HAY BE BORED OR
INSTALLED, AND TO CONDUCT ALL SUCH WATER THEREFROM INTO SAID CANAL. WITH
RIQHT TO MAINTAIN. REPAIR OR RENEW SUCH WELLS OR APPLIANCES AND WITH RIQHT
OF ENTRY UPON SAID LAND FOR ANY AND ALL OF SAID PURPOSES.
3. An ......nt for the h.r.in.ft.r d.scrib.d purpo... .nd right. incid.nt.l
th.r.to .. cont.ined in .n In.trument
Recorded: HAY 24, 1961 IN BOOK '440 PAGE 102, OFFICIAL
RECORDS
For: POLE LINES. CONDUITS AND INCIDENTAL PURPOSES
In f.vor of: THE GENERAL TELEPHONE COMPANY OF CALIFORNIA.
A CORPORATION
Aff.ct.:
DESCRIBED AS FOLLOWS:
P.ge 4
FORM3648-05
-
. CHICAGO TITLE INSURANCE COMPANY
SCHEDULE B (Continu.d) PolicV No. 892868-3
A STRIP OF LAND, 10 FEET IN WIDTH, LYING WITHIN THE EAST 442.87 FEET OF
THE NORTH 965 FEET OF SAID LOT 8, AND IN THE NORTH 500 FEET OF SAID LOT 7,
THE NORTHWESTERLY AND NORTHERLY LINE OF SAID STRIP IS DESCRIBED AS
FOLLOWS:
BEGINNING IN THE EAST LINE OF WATERMAN AVENUE (AS IT NOW EXISTS) AT IT'S
INTERSECTION WITH THE SOUTHERLY LINE OF THE SAN BERNARDINO COUNTY FLOOD
CONTROL. DISTRICT RIGHT OF WAY, SAID INTERSECTION BEING 527.46 FEET
SOUTHERLY ALONO SAID EAST LINE FROI'l THE NORTHWEST CORNER OF SAID LOT
81 THENCE EASTERLY AND NORTHEASTERLY ALONO THE SOUTHERL V AND SOUTHEASTERL V
BOUNDARY LINE OF SAID FLOOD CONTROL DISTRICT RIGHT OF WAY. SAID LINE
HAVING A RADIUS OF 3,013.76 FEET TO THE NORTHERLY LINE OF SAID LOT
71 THENCE EAST ALONO SAID NORTHERLY LINE 530 FEET.
ALSO, AN EASEI'ENT OVER THE WESTERLY 2 FEET OF THE NORTHERLY 25 FEET OF
THAT PORTION OF LOT 8, DESCRIBED ABOVE, LVING SOUTH OF SAID FLOOD CONTROL
DISTRICT RIGHT OF WAV. AFFECTS LOTS 31, 32, 33 AND 34 OF TRACT
NO. 12034. SAID EASEI'ENT IS SHOWN ON THE RECORDED MAP OF TRACT NO. 12034.
4. THE OWNER'S CERTIFICATE OF TRACT MAP NO. 12034, RECITES IN PART:
"WE GRANT TO THE CITY OF SAN BERNARDINO AN EASEMENT FOR PARK PURPOSES OYER
THOSE AREAS SHOWN ON THE MAP. AND AN EASEMENT FOR INGRESS AND EGRESS TO
SERVICE SAID PARK AREAS. "
~. An ......nt fo~ PARK AND RECREATION pu~po... .nd ~ight. incid.nt.l th.~.to
.. .hown on th. ~.co~d.d ..p of ..id l.nd.
Aff.ct.: AS SHOWN ON THE MAP OF SAID TRACT
6. THE MAP OF TRACT NO. 12034, DELINEATES THE FOL.LOWING ON LOTS 30, 31, 32,
33 AND 341 APPROXIMATE LIMITS OF OLD DUMP SITE, PER PIONEER CONSULTANTS
~. N. 3256-002, AUGUST 3, 1981.
7. AN AOREEI'IENT BY AND BETWEEN PARK CENTRE PROPERTIES, A CALIFORNIA GENERAL
PARTNERSHIP, AND THE CITY OF RIVERSIDE, A MUNICIPAL CORPORATION FOR THE
PURPOSE OF CONSTRUCTION AND rIAlNTENANCE OF IMPROVEMENT ON THE QAQE CANAL,
DATED SEPTEMBER 19, 1983 RECORDED SEPTEMBER 26, 1983 AS INSTRUI'lENT
NO. 83-224509 RECORDS OF SAN BERNARDINO COUNTY CALIFORNIA.
NOTE: REFERENCE IS HEREBY MADE TO SAID DOCUMENT FOR FURTHER AND OTHER
PARTICULARS.
8. Cov.n.nt., condition. .nd ~..t~iction. .. ..t fo~th in .n in.t~u..nt
~.co~d.d NOVEMBER 29, 1983 AS INSTRUMENT NO. 83-279883, OFFICIAL RECORDS,
but d.l.ting ~..t~iction., if .nv, b...d upon ~.c., colo~, ~.ligion o~
n.tion.l o~igin.
P.g. ~
FORM 3645-05
...
. CHICAGO TITLE INSURANCE COMPANY
SCHEDULE B (Continu.d) PolicV No. 89286S-3
Said inst~u..nt p~ovid.s that a violation th.~.o' shall not d.'.at no~
~.nd.~ invalid th. li.n 0' anv mo~tgag. o~ d..d 0' t~u.t ..d. in good
'aith and 'o~ valu..
Said cov.nants. conditions and ~.st~ictions ~.~. pu~po~t.dlV .odi'i.d bV
an in.t~u..nt ~.co~d.d JUNE 17. 1985 AS INSTR~NT NO. 85-144845. OFFICIAL
RECORDS.
9. THE EFFECT OF A DOCutENT ENTITLED "ORANT DEED AND AQREEI'ENT RECONVEYANCE
OF PROPERTY. EXECUTED BY AND BETWEEN PARK CENTRE PROPERTIES. A CALIFORNIA
QENERAL PARTNERSHIP. RANCHO CONSULTANTS REALTY FUND IV. A CALIFORNIA
LIt'IITED PARTNERSHIP. AND THE CITY OF SAN BERNARDINO. A MUNICIPAL
CORPORATION. DATED APRIL 01. 1985 AND RECORDED APRIL 22. 1985 AS
INSTRUI1ENT NO. 85-085510. OFFICIAL RECORDS. WHICH DOCUI'IENT CONVEYS ALL
SIDEWALKS. SEWERS. STROI1 DRAINS. WATER MAINS. CURBS. ClUTTERS. PAVINQ.
ELECTRDLIERS. STREET LIQHTS. STREET NAtE SIQNS. TRAFFIC SIQNALS AND ALL
APPURTENANCES AND APPURTENANT I....ROVEPENTS WITHIN ASSEBSIIENT DISTRICT
NO. 961. IN THE CITY OF SAN BERNARDINO. ALL OF WHICH ARE LOCATED WITHIN.
UNDER OR ADJACENT TO THE PUBLIC THOROUQHFARES WITHIN TRACT NO. 12034.
10. THE EFFECT OF THAT CERTAIN DOCUMENT ENTITLED NREQIONAL FACILITIES
AQREEI"IENTN. DATED SEPTEf1IIER 22. 1986 BY AND APtONQ THE REDEVELOPI'IENT MENCY
OF THE CITY OF SAN BERNARDINO. A PUBLIC BODY CORPORATE AND POLITIC. AND
RANCON REALTY FUND IV. AND RANCON REALTY FUND V. EACH A CALIFORNIA LUUTED
PARTNERSHIP. AND THE CITY OF SAN BERNARDINO. A MUNICIPAL BODY CORPORATE
RECORDED NOVEMBER 4. 1986 AS INSTRUl"lENT NO. 86-327622. OFFICIAL RECORDS.
SAID INSTRUl'ENT SETS FORTH THE TERI'IS AND CONDITIONS UNDER WHICH VARIOUS
PUBLIC II'IPROVEl"lENTS OF ~ SIGNIFICANCE WILL BE MADE BY THE PARTIES
THERETO. Q .L
Autho~iz.d Signato~v ~~ ~.~r~~~
Pag. . 6
FORM 36405
~
"
. CHICAGO TITLE INSURANCE COMPANY
ENDORSEMENT 2697
D.t.d
NOVEMBER 2~, 1986
Att.ch.d to Pol ie, No.
89286S
Th. Co.p.n" ~.cognizing the cu~~.nt .ff.ct of infl.tion on ~..l p~op.~t,
v.lu.tion .nd int.nding to p~ovid. .ddition.l .on.t.~, p~ot.ction to the
Insu~.d CWn.~ n...d in ..id Pol ie" h.~.b, modifi.. ..id Pol ie" .. follo~.:
1. Notwith.t.nding .n,thing cont.in.d in ..id Pol ie, to the cont~.~"
the ..ount of in.u~.nc. p~ovid.d b, ..id Pol ie" .. .t.t.d in Sch.dul. A
th.~.of, i. .ubJ.ct to cu..ul.tiv. .nnu.l up~.~d .dJu.tm.nt. in the ..nn.~
.nd to the .xt.nt h.~.in.ft.~ .p.cifi.d.
2. "AdJu.tm.nt 0.10." i. d.fin.d, fo~ the pu~po.. of this Endo~....nt,
to b. 12:01 .... on the fi~.t ~.nu.~, 1 which occu~. .o~. th.n .ix .onth.
.ft.~ the 0.10. of Pol ie" .. .hown in Sch.dul. A of the Pol ie, to which
this Endo~....nt i. .tt.ch.d, .nd on ..ch .ucc..ding ~nu.~, 1.
3. An up~~d .dJu.t..nt will b. mad. on ..ch on the AdJu.t..nt 0.10..,
.. d.fin.d .bov., b, inc~...ing the ..ximu. ..ount of in.u~.nc. p~ovid.d b,
..id Pol ie, <.. ..id .mount ma, h.v. b..n inc~....d th.~.tofo~. und.~ the
t.~.. of this Endo~....nt) b, the .... p.~c.nt.g., if .n" b, which the
Unit.d St.t.. D.p.~t..nt of Co...~c. Co.po.it. Con.t~uction Co.t Ind.x
<b... p.~iod 1967) fo~ the .onth of S.pt.mb.~ imm.di.t.l, p~.c.din. .xc..d.
.uch Ind.x fo~ the .onth of S.pt..b.~ on. ,..~ ..~li.~l p~ovid.d, how.v.~,
th.t the ..xi.um .mount of in.u~.nc. in fo~c. .h.ll n.v.~ .xc..d 1~
p.~c.nt of the ..ount of in.u~.nc. .t.t.d in Sch.dul. A of ..id Pol ie"
1... the ..ount of .n, cl.i. p.id und.~ ..id Pol ie, ~hich, und.~ the t.~m.
of the Condition. .nd Stipul.tion., ~.duc.. the ..ount of in.u~.nc. in
fo~c.. Th.~. .h.ll b. no .nnu.l .dJu.t..nt in the .mount of in.u~.nc. fo~
,..~. in ~hich th.~. i. no inc~.... in ..id Con.t~uction Co.t Ind.x.
4. In the ..ttl...nt of .n, cl.im .g.in.t the Co.p.n, und.~ ..id
Pol ie" the ..ount of in.u~.nc. in fo~c. .h.ll b. d..m.d to b. the ..ount
~hich i. in fo~c. .. of the d.t. on ~hich the in.u~.d cl.i..nt fi~.t
l..~n.d on the ..s.~tion o~ po..ibl. ....~tion of .uch cl.i., o~ .. of the
d.t. of ~.c.ipt b, the Comp.n, of the fi~.t notic. of .uch cl.im, .hich.v.~
.h.ll fi~.t occu~.
PROVIDED, HOWEVER, this .ndo~..m.nt .h.ll b. .ff.ctiv. onl, if on. of the
following condition. .xi.t. .10 0.10. of Polic,:
.. Th. l.nd d..c~ib.d in this pol ie, i. . p.~c.l on which th.~.
i. onl, . on.-to-fou~ f..il, ~..id.nti.l .t~uctu~., including .11
imp~ov.m.nt. on the l.nd ~.l.t.d to ~..id.nti.l us., in which the In.u~.d
CWn.~ ~..id.. o~ int.nd. to ~.sid., o~,
b. Th. l.nd con.ist. of . ~.sid.nti.l condominium unit, tog.th.~
~ith the common .l.m.nts .ppu~t.n.nt th.~.to .nd ~.l.t.d to ~..id.nti.l us.
th.~.of, in which the In.u~.d Own.~ ~..id.. o~ int.nd. to ~.sid..
Thi. Endo~..m.nt i. mad. . p.~t of the pol ie, o~ commitm.nt .nd i. .ubJ.ct to
.11 the t.~m. .nd p~ovi.ion. th.~.of .nd of .n, p~io~ .ndo~..m.nt. th.~.to.
Exc.pt to the .xt.nt .xp~...l, .t.t.d, it n.ith.~ modifi.. .n, of the t.~ms .nd
p~ovi.ions of the pol ie, o~ com .nt .nd p~io~ ndo~..m.nt.. if .n" no~ do..
it .xt.nd the .ff.ctiv. d.t. th pol ie, ~co itm 10 .nd p~io~ .ndo~..m.nt.
o~ inc~.... the f.c. .mount 10 .~.o ,~~_
Autho~iz.d Sign.to~,
FORM3648-Q5
...
I .
""I.
10'
{ 3/
A" _7'-,,/tz,N
r" /&,7.-f4 '
':-6rr.85'
"'''-#-':1- ...-=..
:-~.s.t:t:J""'-
.-$rti.15'
= /(". 6()'
...
. ~..
~ o1-5Cr/,phb/7
~ S?~~/ Ab. $
-.!S7~'1o'4N (. .'
.'r~,/.N .2N./~~.._
#"-9StJ.a:r ...-
~r:r~. 7/'
'1!?1!53'
.. .
,
.... ~.
VW4Y'
.-
h'"
~'
S~6' Od-/fi'/7 H ~
7/7/5 5A~t!'/..
'"
~ c*5Cr;?lton
On 57#/1.6. 3.
,
~
i
~
.;
~
tfw ~~rr.f7nM .
0/7 .5/7~~/ It&. 2.
ItPck
5t
",/
/
1'20~4:-
~.
.!l\
.~ ~
- t.i
"\~
8/
tJ. ~ "fC/'~.&
(/VeT)
~
.\
~
~
~.
o
Q
.
()
~
". ~.:#"oro.K/mci"/C" /1/77/1.7 or
OCld/ ob/77,' ..j. . '..
~ . ~5//~f?ttr /~M6'6'r
t't.Vl5vIYI715 d# .J?5~ -aJ?
190/' 3, 1!l8/.........................
'.
",-<"' I
/
I
,
.
,
,
.
"4-_
,-~.
'"'L~ ~~~
€ .
I -
'*-
.
CONDITIONS AND STIPULATIONS, Continued'
secured by said insured mortgage, other than the obligation to
purchase said indebtedness pursuant to this paragraph, are ter-
minated.
6. Determination and Payment of LOll
(a) The liability of the Company under this policy shall in
no case exceed the least of:
0) the actual loss of the insured claimant; or
(ii) the amount of insurance stated in Schedule A. or, if
applicable, the amount of insurance as defined in para.
graph 2(a) hereof; or
(iii) if this policy insures the owner of the indebtedness
secured by the insured mortgage, and provided said
owner is the insured claimant, the amount of the un-
paid principal of said indebtedness, plus interest there-
on, provided such amount shall not include any
additional principal indebtedness created subsequent
to Date of Policy, except as to amounts advanced to
protect the lien of the insured mortgage and secured
thereby.
(b) The Company will pay, in addition to any loss insured
against by this policy, all costs imposed upon an insured in
litigation carried on by the Company for such insured, and all
costs, attorneys' fees and expenses in litigation carried on by
such insured with the written authorization of the Company.
(c) When the amount of loss or damage has been definitely
fixed in accordance with the conditions of this policy, the loss or
damage shall be payable within 30 days thereafter.
7. Limitation of Liability
No claim shall arise or be maintainable under this policy
(a) if the Company, after having received notice of an alleged
defect, lien or encumbrance insured against hereunder, by litiga-
tion or otherwise, removes such defect, lien or encumbrance or
establishes the title, or the lien of the insured mortgage, as
insured, within a reasonable time after receipt of such notice:
(b) in the event of litigation until there has been a final deter-
mination by a court of competent jurisdiction, and disposition
of all appeals therefrom, adverse to the title or to the lien
of the insured mortgage, as insured, as provided in paragraph 3
hereof; or (c) for liability voluntarily admitted or assumed by
an insured without prior written consent of the Company.
8. Reduction of In.urance; Termination of Liability
All payments under this policy, except payment made for
costs, attorneys' fees and expenses, shall reduce the amount of
the insurance pro tanto; provided, however, if the owner of the
indebtedness secured by the insured mortgage !s an insured here-
under, then such payments, prior to the acquisition of title to
said estate or interest as provided in paragraph 2(a) of these
Conditions and Stipulations, shall not reduce pro tanto the
amount of the insurance afforded hereunder as to any such
insured, except to the extent that such payments reduce the
amount of the indebtedness secured by such mortgage.
Payment in full by any person or voluntary satisfaction or
release of the insured mortgage shall terminate all liability of
the Company to an insured owner of the indebtedness secured
by the insured mortgage, except as provided in paragraph 2(a)
hereof.
9. Liability Noncumulative
It is expressly understood that the amount of insurance under
this policy, as to the insured owner of the estate or interest
covered by this policy, shall be reduced by any amount the Com-
pany may pay under any policy insuring (a) a mortgage shown
or referred to in Schedule B hereof which is a lien on the estate
or interest covered by this policy, or (b) a mortgage hereafter
executed by an insured which is a charge or lien on the estate
or interest described or referred to in Schedule A, and the
amount so paid shan be deemed a payment under this policy.
The Company shall have the option to apply to the payment
of any such mortgage any amount that otherwise would be
payable hereunder to the insured owner of the estate or interest
covered by this policy and the amount so paid shall be deemed
a payment under this policy to said insured owner.
The provisions of this paragraph 9 shall not apply to an owner
of the indebtedness secured by the insured mortgage, unless such
insured acquires title to said estate or interest in satisfaction of
said indebtedness or any part thereof.
10. Subrogation Upon Payment or Settlement
Whenever the Company shall have paid or settled a claim
under this policy, all right of subrogation shall vest in the Com-
pany unaffected by any act of the insured claimant, except that
the owner of the indebtedness secured by the insured mortgage
may release or substitute the personal liability of any debtor or
guarantor, or extend or otherwise modify the terms of payment,
or release a portion of the estate or interest from the lien of
the insured mortgage, or release any collateral security for the
indebtedness, provided such act occurs prior to receipt by such
insured of notice of any claim of title or interest adverse to the
title to the estate or interest or the priority of the lien of the
insured mortgage and does not result in any loss of priority of
the lien of the insured mortgage. The Company shall be subro-
gated to and be entitled to all rights and remedies which such
insured claimant would have had against any person or property
in respect to such claim had this policy not been issued, and
the Company is hereby authorized and empowered to sue, com-
promise or settle in its name or in the name of the insured to
the full extent of the loss sustained by the Company. If requested
by the Company, the insured shall execute any and all documents
to evidence the within subrogation. If the payment does not cover
the loss of such insured claimant, the Company shall be subro.
gated to such rights and remedies in the proportion which said
payment bears to the amount of said loss, but such subrogation
shall be in subordination to an insured mortgage. If loss should
result from any act of such insured claimant. such act shall not
void this policy, but the Company, in that event, shall as to such
insured claimant be required to pay only that part of any losses
insured against hereunder which shall exceed the amount, if any,
lost to the Company by reason of the impairment of the right
of subrogation.
11. Liability Limited to this Policy
This instrument together with all endorsements and other
instruments, if any, attached hereto by the Company is the entire
policy and contract between the insured and the Company.
Any claim of loss or damage, whether or not based on negli-
gence, and which arises out of the status of the lien of the
insured mortgage or of the title to the estate or interest covered
hereby, or any action asserting such claim, shall be restricted to
the provisions and conditions and stipulations of this policy.
No amendment of or endorsement to this policy can be made
except by writing endorsed hereon or attached hereto signed by
either the President, a Vice President, the Secretary, an Assistant
Secretary, or validating officer or authorized signatory of the
Company.
No payment shall be made without producing this policy for
endorsement of such payment unless the policy be lost or de.
stroyed, in which case proof of such loss or destruction shall be
furnished to the satisfaction of the Company.
12. Notices, Where Sent
All notices required to be given the Company and any statements in
writing required to be furnished the Company shall be addressed to it at
the issuing office or to Chicago Title Insurance Company, Claims
Department, 111 West Washington Street, Chicago, Illinois 60602.
13. Fee
THE CHARGE SPECIFIED IN SCHEDULE A IS THE
ENTIRE CHARGE FOR TITLE SEARCH, TITLE EXAMINA-
TION AND TITLE INSURANCE.
\ r-c~ -' ~~-:-,-:=' ->~~~ ~-:--o,='~-:~-:-: '-:-:'-~l
l" 1::: ~ ~ ~ u.:l Z 0 <: >-0 vi> · A^,~~ d
f"; ~ ~ ~ ~ UI--l ~ ) -< 0 ~ z III i-9, :"1
I:., ~ 1::: ~.... I--l <: ,...., <: " ,. I
!~:, i~ ~g c5 0 t ~ i ~ ~ \~~. LLJ :::1.
1..1 ~ ~ t::I ii: ~ ~ C/) U""-l U ."... ' Ii
f\'1 ~ ::s Z...J <") · INS\) :','1' -
f' - ~ . d;;:
I'::i ~ '" I--l E "~
~ l. ~
I^ i , ~
iZ!ii;~,~'i:.V~2'.'~~P::'i:' -,~;'i;>"": ~;:~~;,:~':t~f~~~C-:2:~~~~~~~~:~'!~CL::2~':;:C::C::~!".;~ "::.""i:~~,>~;,~:, -:~;:9:~~',,"'-.C~~~2~!::;L~,;j;9!z-~~1',:;: ,;~~~;~,~;;::T:~;::"'-'~;~;:::;~~;7-!~J~~~~"1 ~
~,
EXHIBIT "A"
OFFICIAL NOTICE OF SALE
$2,875,000
CERTIFICATES OF PARTICIPATION
(CITY OF SAN BERNARDINO 1986 PROJECTS)
EVIDENCING A PROPORTIONATE INTEREST OF THE HOLDER
THEREOF IN BASE RENTAL PAYMENTS TO BE MADE
BY THE CITY OF SAN BERNARDINO AS RENTAL
FOR CERTAIN PROPERTY PURSUANT TO A
LEASE AGREEMENT WITH THE REDEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO
NOTICE IS HEREBY GIVEN that sealed proposals will
be received and opened by a representative of the City of
San Bernardino, California (the "City"), at the office of
the Trustee, Security Pacific National Bank, Corporate Trust
Department, 333 South Beaudry Avenue, 24th Floor (W24-30),
Conference Room C, Los Angeles, California 90017, on
November 6, 1986
at 11:00 o'clock A.M. (Pacific Standard Time) for the
purchase of $2,875,000 Certificates of Participation (City
of San Bernardino 1986 Projects) Evidencing a Proportionate
Interest of the Holder Thereof in Base Rental Payments to be
Made by the City of San Bernardino as Rental for Certain
Property Pursuant to a Lease Agreement with the
Redevelopment Agency of the City of San Bernardino, (the
"Certificates"), authorized to be executed and delivered
under the provisions of the Constitution and Laws of the
State of California and pursuant to the provisions of
Resolution No. 3/,,1~'/., adopted by the City ~M ~ ,
1986. The Cert~f~cates are more particularly escribed in
the Resolution (which is incorporated herein by reference),
and are generally described as follows:
ISSUE: $2,875,000 aggregate principal amount
consisting of fully registered Certificates of Participation
in the denomination of $5,000 or any integral multiple
thereof not exceeding the principal amount of Certificates
of Participation maturing at anyone time, all dated
October 1, 1986.
INTEREST RATE: Maximum not to exceed the maximum
interest rate permitted by law, which is twelve percent
(12%) per annum, payable on April 1, 1987 and semi-annually
thereafter on October 1 and April 1 of each year. Bidders
must specify the rate or rates of interest which the
Certificates shall bear; provided that (a) all Certificates
maturing by their terms in anyone year must bear the same
rate of interest; (b) each interest rate specified must be
in a multiple of 1/20 or 1/8 of 1% and a zero rate of
interest cannot be specified; (c) except for the rate of
interest bid for the initial maturity, any rate of interest
bid for any matur i ty must be equal to or higher than the
interest bid for the preceding maturity; (d) no Certificate
shall bear more than one rate of interest; (e) each
Certificate shall bear interest from its date to its stated
maturity date at the interest rate specified in the bid; and
(f) any premium must be paid in immediately available moneys
as part of the purchase price and no bid will be accepted
which contemplates the waiver of any interest or other
concession by the bidder as a substitute for payment in full
of the purchase price in immediately available moneys. Bids
which do not conform to the terms of this paragraph will be
rejected.
MATURITIES: The Certificates will mature as
follows:
(October 1) Maturity Date
1988
1989
1990
1991
1992
1993
1994
1995
1996
Principal Amount
$ 240,000
255,000
275,000
290,000
310,000
335,000
360,000
390,000
420,000
REDEMPTION: Certificates maturing on or before
October 1, 1991, are not subject to redemption before their
stated maturities. Certificates maturing by their terms on
or after October 1, 1992, are subject to redemption as a
whole or in part (but not less than $20,000) such that, as
nearly as practical, approximately equal principal and
interest payments prevail with respect to the Certificates
in each fiscal year following such redemption (and by lot
within anyone maturity) prior to their respective maturity
dates, at the option of the City, on any interest payment
date on or after October 1, 1991, from moneys derived by the
City from any source, at the following redemption prices
(expressed as a percentage of the principal amount of
-2-
Certificates called for redemption) together with accrued
interest thereon to the date fixed for redemption:
Redemption Dates
Redemption Price
October 1, 1991 and April 1, 1992
October 1, 1992 and April 1, 1993
October 1, 1993 and thereafter
101%
100H
100%
NOTICE OF REDEMPTION: Notice of any redemption
will be mailed to the respective registered owners of the
Certificates designated for redemption as provided in the
Trust Agreement.
PAYMENT: The principal of and premium, if any,
with respect to the Certificates are payable in lawful money
of the united States of America at the corporate trust
offices Security Pacific National Bank in Los Angeles,
California, the Trustee with respect to the Certificates.
Interest with respect to the Certificates will be payable in
like money by check or draft mailed to the registered owners
of the Certificates at the addresses shown on the registra-
tion books of the Trustee on the fifteenth day of the month
before each interest payment date or at such other addresses
as may have been filed by the registered owners of the
Certificates with the Trustee for that purpose.
REGISTRATION: The Certificates will be issued in
fully registered form, and will be exchangeable upon the
terms set forth in the Trust Agreement.
PURPOSE: The Certificates are being issued by the
City to provide funds to aid in financing the acquisition
and construction of a fire station to be located in the City
and the acquisition and installation of a computer-aided
dispatching system and other projects for the City.
CITY'S BUDGET: The obligation of the City to make
Lease Payments under the Lease Agreement constitutes a
current expense of the City. The City shall covenant in the
Lease Agreement, however, to include and maintain all rental
payments due under the terms of the Lease Agreement during
any fiscal year in its budget for such year, commencing in
the 1987-88 Fiscal Year, and continuing each year there-
after, and further covenants to make the necessary appro-
priations therefor. The Lease Agreement provides that the
several actions required by such covenants will be construed
to be ministerial duties imposed by law and it will be the
ministerial duty of the officials of the City to carry out
and perform the covenants in the Lease Agreement agreed to
be carried out and performed by the City.
-3-
TAX EXEMPT STATUS: In the event that prior to the
delivery of the Certificates (a) the income received by any
private holder from bonds or obligations of the same type
and character shall be declared to be taxable (either at the
time of such declaration or at any future date) under any
federal income tax laws, either by the terms of such laws or
by ruling of a federal income tax authority or official
which is followed by the Internal Revenue Service or by
decision of any federal court, or (b) any federal income tax
law is adopted which will have a substantial adverse tax
effect upon holders of the Certificates as such, the
successful bidder may, at his option, prior to the tender of
the Certificates by the City, be relieved of his obligation
under the contract to purchase the Certificates, and in such
case the deposit accompanying his bid will be returned.
LEGAL OPINION: The legal opinion of Best, Best &
Krieger, Riverside, California, approving the validity of
the Certificates, will be furnished to the successful bidder
without charge. A copy of the legal opinion, certified by
the official in whose office the original is filed, will be
printed on each Certificate without charge to the purchaser.
BOND INSURANCE: The Financial Consultant,
Miller & Schroeder Financial, Inc., has taken steps to
qualify the Certificates for insurance through Municipal
Bond Insurance Association ("MBIA") and AMBAC Indemnity
Corporation ("AMBAC"). Bidders on the Certificates may
elect to purchase bond insurance, if qualification is
obtained, through MBIA or AMBAC at their own expense. The
cost of obtaining such insurance will not be considered by
the City in determining the bid with the lowest net cost to
the City.
TERMS OF SALE
HIGHEST BID: The Certificates will be awarded to
the highest bidder, considering the interest rate or rates
specified and the premium offered, if any, or the discount
specified, if any. The highest bid will be determined by
deducting the amount of the premium offered (if any) from,
or by adding the amount of the discount specified (if any)
to, the total amount of interest which the City would be
required to pay from the date of the Certificates to their
respective maturity dates at the rates specified in the bid
and the award will be made on the basis of the lowest net
interest cost to the City. The purchaser must pay accrued
interest from the date of the Certificates to the date of
delivery. All interest will be computed on a 360-day year
-4-
basis. The cost of printing the Certificates will be borne
by the City.
FORM OF BID; MAXIMUM DISCOUNT: Each bid must be
for not less than all of the Certificates hereby offered for
sale and accrued interest to the date of delivery, plus such
premium as is offered or less such discount as is specified
in the bid; provided that the amount of discount specified
in any bid shall not exceed 3% of the principal amount of
the Certificates. Each bid, together with bidder's check,
must be enclosed in a sealed envelope addressed to the City
of San Bernardino and delivered to its representative at the
address above mentioned with the envelope clearly marked:
"PROPOSAL FOR PURCHASE OF CERTIFICATES OF PARTICIPATION
(CITY OF SAN BERNARDINO 1986 PROJECTS)."
RIGHT OF REJECTION: The City reserves the right,
in its discretion, to reject any and all bids and to waive
any irregularity or informality in any bid.
PROMPT AWARD: The City will take action awarding
the Certificates or rejecting all bids not later than 26
hours after the expiration of the time herein prescribed for
the receipt of proposals, unless such time of award is
waived by the successful bidder. Notice of the award wi 11-
be given promptly to the successful bidder.
DELIVERY AND PAYMENT: Delivery of the Certifi-
cates will be made to the successful bidder at Los Angeles,
California, as soon as the Certificates can be prepared,
which delivery date is presently estimated to be within
thirty days of the date of sale. Payment for the
Certificates must be made in moneys immediately available to
the City in Los Angeles, California. Any expense of
providing immediate Los Angeles funds, whether by transfer
of Federal Reserve Bank funds or otherwise, shall be borne
by the purchaser.
RIGHT OF CANCELLATION: The successful bidder
shall have the right, at his option, to cancel the contract
of purchase if the City shall fail to execute the
Certificates and tender the same for delivery within 60 days
from the date of sale thereof, and in such event the
successful bidder shall be entitled to the return of the
deposit accompanying his bid.
BID CHECK: A certified or cashier I s check drawn
on a bank or trust company transacting business in the State
of California, in the amount of $30,000 payable to the order
of the City, must accompany each proposal as a guaranty that
the bidder, if successful, will accept and pay for the
-5-
Certificates in accordance with the terms of his bid. The
check accompanying any accepted proposal shall be applied to
the purchase price. The check shall be cashed and the
amount thereof retained by the City if, after the award of
the Certificates, the successful bidder fails to complete
his purchase on the terms stated in its proposal. The check
accompanying each unaccepted proposal will be returned
promptly. No interest will be paid upon the deposit made by
any bidder.
STATEMENT OF NET INTEREST COST: Each bidder is
requested, but not required, to state in his bid the total
net interest cost in dollars to the City and the percentage
net interest rate determined thereby, which shall be
considered as informative only and not binding on either the
bidder or the City.
NO LITIGATION: There is no litigation pending
concerning the validity of the Certificates, the existence
of the City or the title of the officers thereof to their
respective offices, and the City will furnish to the
successful bidder a no-litigation certificate certifying to
the foregoing as of and at the time of delivery of the
Certificates.
CUSIP NUMBERS: It is anticipated that CUSIP
identification numbers will be printed on the Certificates,
but neither the failure to print such number on any
Certificate nor any error with respect thereto shall
constitute cause for a failure or refusal by the purchaser
thereof to accept delivery of and pay for the Certificates
in accordance with the terms of the purchase contract. All
expenses in relation to the assignment of CUSIP numbers and
the printing of CUSIP numbers on the Certificates shall be
paid for by the issuer; provided, however, that the CUSIP
Service Bureau charge for the assignment of said numbers
shall be the responsibility of and shall be paid for by the
purchaser.
CALIFORNIA DEBT ADVISORY COMMISSION FEE: Atten-
tion of bidders is directed to California Government Code
Section 8856, which provides that the lead underwriter or
the purchaser of the Certificates may be charged the
California Debt Advisory Commission fee, which is 1/80th of
I percent of the principal amount of the Certificates.
OFFICIAL STATEMENT: The City has caused an
official statement to be prepared, copies of which (together
with the Lease Agreement and Trust Agreement) may be
obtained at the offices of the City's financing consultant,
Miller & Schroeder Financial, Inc., 505 Lomas Santa Fe
-6-
Drive, Suite 100, P.O. Box 946, Solana Beach, California
92075-0819, (telephone (619) 481-5894). The City at its
expense will provide not to exceed 500 copies of the
official statement to the successful bidder.
CERTIFICATE: The City will provide to the pur-
chaser of the Certificates a certificate, signed by an
official of the City, confirming to the purchaser that, at
the time of the acceptance of the bid for the Certificates
and at the time of delivery thereof, to the best of the
knowledge of said official, the official statement does not
contain any untrue statement of a material fact or omit to
state a material fact necessary in order to make the
statements made therein, in the light of the circumstances
under which they were made, not misleading, and that there
has been no material adverse change in the financial
condition or affairs of the City between the date of sale
and the date of delivery of the Certificates.
~~~~
SHAQNA CLARK, C~ty Clerk
of the City of San Bernardino,
California
DATED: &J.Jw ~ 11!?
-7-
JRR0278A
--
EXHIBIT "B"
PROPOSAL FOR
$2,875,000
CERTIFICATES OF PARTICIPATION
(CITY OF SAN BERNARDINO 1986 PROJECTS)
EVIDENCING A PROPORTIONATE INTEREST OF THE
HOLDER THEREOF IN BASE RENTAL PAYMENTS TO BE
MADE BY THE CITY OF SAN BERNARDINO AS RENTAL
FOR CERTAIN PROPERTY.PURSUANT TO A LEASE
AGREEMENT WITH THE REDEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
November 6, 1986
City of San Bernardino
300 North "0" Street
San Bernardino, California 92418
~~f.. Pursuant to the Official Notice of Sale dated
~ C. , 1986 (the terms of which are made a part of
th1s b1d) we offer to purchase $2,875,000, principal amount,
all or none, of the "$2,875,000 Certificates of Participa-
tion (City of San Bernardino 1986 Projects) Evidencing a
Proportionate Interest of the Holder Thereof in Base Rental
Payments to be Made by the City of San Bernardino as Rental
for Certain Property Pursuant to a Lease Agreement with the
Redevelopment Agency of the City of San Bernardino" at the
par value thereof plus a premium of $ or minus a
discount of $ (making an aggregate sum of
$ ) plus interest accrued on such Certificates from
their date to the date of delivery thereof.
The Certificates are to bear interest at the rates
set forth in the following schedule:
Maturity (October 1)
1988
1989
1990
1991
1992
1993
1994
1995
1996
Principal Amount
$ 240,000
255,000
275,000
290,000
310,000
335,000
360,000
390,000
420,000
Rate
~-..~.~
.
This proposal is subject to acceptance not later
than 26 hours after the expiration of the time for the
receipt of proposals as specified in the Official Notice of
Sale.
cashier's
City.
There is enclosed herewith a certified or
check for $30,000, payable to the order of the
,
We hereby request that printed copies of
the Official Statement (not to exceed 500 copies) be fur-
nished us in accordance with the terms of the Notice of
Sale.
Our calculation of the net interest cost and net
interest rate, which is considered to be informative only
and not a part of the bid, is as follows:
Total Interest
Less Premium or Plus Discount
Net Interest Cost
Net Interest Rate
%
Respectfully submitted,
Name
Account Manager
By:
Address
City
State
-2-
JRR0278B
EXHIBIT "c"
NOTICE OF INTENTION TO SELL
$2,875,000
CERTIFICATES OF PARTICIPATION
(CITY OF SAN BERNARDINO 1986 PROJECTS)
EVIDENCING A PROPORTIONATE INTEREST OF THE
HOLDER THEREOF IN LEASE PAYMENTS TO BE
MADE BY THE CITY OF SAN BERNARDINO AS
RENTAL FOR CERTAIN PROPERTY PURSUANT TO
A LEASE AGREEMENT WITH THE REDEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO
NOTICE IS HEREBY GIVEN that the City of San
Bernardino, California (the "City") intends to sell
$2,875,000 "Certificates of Participation (City of San
Bernardino 1986 Projects) Evidencing a Proportionate
Interest of the Holder Thereof in Lease Payments to be Made
by the City of San Bernardino as Rental for Certain Property
Pursuant to a Lease Agreement with the Redevelopment Agency
of the City of San Bernardino" (the "Certificates' of
Participation") for the purpose of financing the acquisition
and construction of a fire station to be located in the City
and the acquisition and installation of a computer-aided
dispatching system and other equipment for the City, and
that sealed proposals for the purchase of Two Million Eight
Hundred and Seventy-Five Thousand Dollars ($2,875,000)
principal amount of Certificates of Participation will be
received by the City up to the time and at the place
specified:
DATE AND November 6, 1986
TIME: 11:00 A.M. Pacific Standard Time
PLACE: Security Pacific National Bank
Corporate Trust Department
333 South Beaudry Avenue (W24-30)
Conference Room C
Los Angeles, California 90017
ISSUE: $2,875,000
DENOMINATION: $5,000 or any integral multiple
thereof
DATED:
October 1, 1986
/tJ-~
~&,~
~W-t~
~ e)dJ lie II
FINAL
MATURITY:
October 1, 1996
~ .~,)-
-
. .
INTEREST RATE AND DISCOUNT: The bonds shall bear
interest from their date at the rate to be fixed upon the
sale thereof but not to exceed twelve percent (12%) per
annum. The minimum bid will be ninety-seven percent (97%)
of the principal amount of the Certificates.
BID RECEIPT AND AWARD: The bids will be received
and opened at the above time and place and presented to the
City at its meeting later that day. The City will take
action awarding the Certificates, or rejecting all bids not
later than twenty-six (26) hours after the time prescribed
for the receipt of bids.
NOTICE OF SALE AND OFFICIAL STATEMENT: The City
has caused to be prepared a detailed Notice of Sale and
Official Statement, copies of which will be furnished upon
request from any of the following:
Miller & Schroeder Financial, Inc.
505 Lomas Santa Fe Drive, Suite 100
P.O. Box 946
Solana Beach, California 92507-0819
(619) 481-5894
Given by order of the City of San Bernardino, this
~ day of ~, 1986.
..b~~Pb
Sh~na Clar , C~ty Clerk of
the City of San Bernardino,
California
-2-
JRR0278C
I..
o
o
o
...." ,.
NEW ISSUE
;}
,{....~ Vo-
Ratings: Moody's_
Standard & Poor's
(See "Ratings" herein)
DRAFT
In the opinion of Special Counsel, under existing laws, regulations,
rulings and judicial decisions, the interest portion of payments made by the
City under the Lease Agreement received by the Certificate holders is exempt
from federal income taxation and from present California personal income taxes.
$2,875,000
CERTIFICATES OF PARTICIPATION
(City of San Bernardino 1986 Projects)
Evidencing a Proportionate Interest of the Holder Thereof in
Base Rental Payments to Be Made by the
CITY OF SAN BERNARDINO
As Rental for Certain Property Pursuant to a
Lease Agreement with the
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
Dated: October I, 1986
Due: October 15, as shown below
The Certificates are being sold, executed and delivered to finance the
purchase of equipment and the acquisition, construction, improvement and
equipping of Park Centre'Fire Station on real property located within the City
of San Bernardino, California, which Project will be leased to the City by the
Redevelopment Agency of the City of San Bernardino.
Interest on the Certificates will be payable on April 1 and September 15
of each year commencing April I, 1987. The Certificates will be delivered as
fully registered Certificates in the denomination of $5,000 each or any
integral multiple thereof. Principal of Certificates is payable at the
corporate trust office of the Trustee, Security Pacific National Bank, Los
Angeles, California. Interest on Certificates is payable by check or draft
mailed to the registered owner thereof. The Certificates are subject to
redemption prior to maturity as described herein.
MATURITY SCHEDULE
Maturity
(Sept. 15)
1988
1989
1990
1991
1992
Principal
Amount
$240,000
255,000
275,000
290,000
310,000
Interest
Rate
1
Yield or
Price
1
Maturity
(Sept. 15)
1993
1994
1995
1996
Principal
Amount
$335,000
360,000
360,000
420,000
Interest
Rate
1
Yield or
Price
1
(Plus accrued interest from June I, 1986)
A O/'-U/J t, ;;" s-- ~,.
\ .'.~ t.,
10
o
o
The obligation of the City to make payments under the Lease Agreement
constitutes an absolute and unconditional obligation of the City only for the
original and the then current fiscal year of the City, payable from the
general revenues of .the City lawfully available therefor. Neither the
Certificates nor the obligation of the City to make rental payments under the
Lease Agreement constitute an indebtedness of the City of San Bernardino, the
Redevelopment Agency of the City of San Bernardino, the State of California or
any political subdivision thereof, within the meaning of the Constitution of
the State of California or otherwise.
The Certificates are offered when, as and if sold, executed and delivered,
subject to the approval as to their legality by Best, Best , Krieger,
Riverside, California, Special Counsel. It is anticipated that the
Certificates in definitive form, will be available for delivery in Los
Angeles, California, on or about August 18, 1986.
Draft: Dated 6/19/86
1 I'. '.
.0
I
o
o
CITY OF SAN BERNARDINO
SAN BERNARDINO COUNTY, CALIFORNIA
Mayor and Common Council
Evlyn Wilcox,
Esther Estrada
Dan Frazier
Ralph Hernandez
Stephen C. Marks
Mayor
Gordon Quiel
Jack Reilly
Jack Strickler
City Staff
Raymond D. Schweitzer, Acting City Administrator
Craig A. Graves, City Treasurer
Shauna Clark, City Clerk
Ralph H. Prince, City Attorney
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
Evlyn Wilcox,
Ester Estrada
Dan Frazier
Ralph Hernandez
Stephen C. Marks
Chairwoman
Gordon Quiel
Jack Reilly
Jack Strickler
Glenda Saul, Executive Director
SPECIAL SERVICES
Special Counsel
Best, Best & Krieger
Riverside, California
Trustee
Security Pacific National Bank
Los Angeles, California
Financial Consultant
Miller & Schroeder Financial, Inc.
Solana Beach, California
, , . .
TABLE OF CONTENTS
Page
Introduction 1
0 The Project . 2
Estimated Sources and Uses of Funds 3
The Certificates 3
Optional Redemption 3
Mandatory Redemption 4
Notice of Redemption . 4
Nature of the Certificates 5
Rental Payments 6
Flow of Funds - Certificate Proceeds 6
Ground Lease . 7
Lease Agreement 7
Deposit of Proceeds 7
Acquisition and Construction of Project; COllllllencement of Rental 7
City's Budget 7
Lease Payments; Abatement 8
Maintenance, Utilities, Taxes and Modifications . 8
Insurance 8
Eminent Domain . 9
Assignment; Subleases 9
Default by the City . . 9
Option to Purchase . . 10
Assignment and Trust Agreement 11
Trustee 11
Funds . . . 11
Asaignment . 12
0 Title Insurance 12
Insurance and Condemnation Awards 12
Events of Default 13
Amendment . 14
Defeasance . 14
City Financial Information . 14
City's Taxable Valuation 14
Tax Levies and Delinquencies 15
Direct and Overlapping Debt 17
Financial Statements . 18
Appropriations Limit . . . 18
The Redevelopment Agency of the City of'San Bernardino 18
General 18
Members and Officers . . . . 19
Agency Powen . 19
Concluding Information . 20
Underwriting . . 20
Pending Federal Tax Legislation 20
Legal Opinion . 22
Tax Exempt Status 22
No Litigation 22
Ratings . 22
Municipal Bond Insurance . . . . . . . 23
Legality for Investment in California 23
Audited Financial Statements . . . . . . . . 23
Miscellaneous . . . . . . . 23
0 Supplemental Information - The City of San Bernardino . 25
1 !,'
o
o
o
. .
No dealer, broker, salesperson or other person has been authorized by the
the City of San Bernardino to give any information or to make any
representations other than those contained herein and, if given or made, such
other information or representation must not be relied upon as having been
authorized by the City of San Bernardino. This 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 Certificates by a person in any jurisdiction in which
it is unlawful for such person to make such an offer, solicitation or sale.
This Official Statement is not to be construed as a contract with the
purchasers of the Certificates. Statements contained in this Official
Statement which involves estimates, forecasts or matters of opinion, whether
or not expressly so described herein, are intended solely as such and are not
to be construed as a representation of facts.
The information set forth herein has been obtained from official sources
which are believed to be reliable but it is not guaranteed as to accuracy or
completeness. The information and expression of opinions herein are subject
to change without notice and neither delivery of this Official Statement nor
any sale made here'mder will, under any circumstances, create any implication
that there has been no change in the affairs of the City or Agency since the
date hereof. All summaries of the Lease Agreement, Reimbursement Agreement,
Site Lease, Assignment and Trust Agreement, or other documents, are made
subject to the provisions of such documents respectively and do not purport to
be complete statements of any or all of such provisions. Reference is hereby
made to such documents on file with the Agency for further information in
connection therewith.
The Official Statement is submitted in connection with the sale of the
Certificates referred to herein and may not be reproduced or used, in whole or
in part, for any other purpose.
.'
o
o
o
'. .
..
$2,875,000
CERTIFICATES OF PARTICIPATION
(City of San Bernardino 1986 Projects)
Evidencing a Proportionate Interest of the
Holder Thereof in Base Rental Payments to be Made by the
CITY OF SAN BERNARDINO
As Rental For Certain Property Pursuant to a
Lease Agreement with the
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
INTRODUCTION
The purpose of this Official Statement is to provide certain information
concerning the sale and delivery of Certificates of Participation (City of San
Bernardino 1986 Projects) (the "Certificates"), in the aggregate principal
amount of $2,875,000. The Certificates represent the direct and proportionate
interest of registered owners (collectively, the "Holders") thereof in
payments to be made by the City of San Bernardino, California (the "City") as
the Base Rental for certain equipment to be used by the City and The Park
Centre Fire Station (the "Station") all as hereinafter referred to as (the
"Project") to be acquired, constructed and equipped pursuant to a Lease
Agreement, dated as of June I, 1986 (the "Lease Agreement"), between the City
and the Redevelopment Agency of the City of San Bernardino (the "Agency").
The Certificates are being prepared pursuant to a Trust Agreement, dated as of
June I, 1986 (the "Trust Agreement") by and between the City, the Agency and
Security Pacific National Bank, (the "Trustee"). The Certificates evidence
the proportionate interest of the Holder thereof in Base Rental payments
payable by the City, as lessee, to the Agency, as lessor. Payment on the
Certificates will be made through the Trust Agreement. The Agency has
assigned to the Trustee for the benefit of the Holders of the Certificates (i)
its rights to amounts payable by the City under the Lease Agreement and (ii)
its rights to enforce amounts payable upon default by sale of the Project,
subject to the Ground Lease, or otherwise.
In accordance with a Ground Lease between the City and the Agency, the
City has agreed to lease to the Agency (the "Ground Lease") certain real
property, upon which the Agency has agreed to construct the Station. The
Agency then will lease the Project, including the Station, to the City.
In accordance with the Lease Agreement. the City is required to pay to the
Trustee specified Base Rentals for the Project which are designed to be
sufficient in both time and amount to pay. when due, the interest on the
Certificates due on April 1. 1987, and October 1. 1987. and as Additional
Rental. any taxes, assessment charges. utility charges. maintenance and repair
costs of the Projects. Interest on the Certificates from this date through
and including October 1. 1987, will be provided for from the proceeds of the
Certificates.
1
, I, ~
o
o
o
..
The City has covenanted in the Lease Agreement to take such action as may
be necessary to include all such total Base Rental payments and pursuant to
the Lease Agreement to pay the principal of and interest on the Certificates
in its annual budgets and has further covenanted to make the necessary annual
appropriations for all such rental payments. Said covenants on the part of
the City are deemed to be and will be construed to be duties imposed by law.
The Lease Agreement is deemed by Special Counsel to be a valid and legally
binding instrument enforceable against the City in accordance with its terms,
subject to the limitations on legal remedies against cities in California,
which include the limitation that judgments may not be enforced against funds
held by a city which serve the public welfare and interest, and subject to the
limitation that the enforceability thereof may be limited by bankruptcy or
insolvency or other laws affecting creditor's rights. The obligation of the
City to make rental payments does not constitute a "debt" of the City within
the meaning of any statutory or constitutional debt limitations.
For certain historic financial information with respect to the City, see
"City Financial Information". For a discussion of certain amendments to the
Constitution of the State of California and their impact on the City, see the
heading "California Constitution Article XIII A" and "Appropriations Limit"
under "City Financial Information".
THE PROJECT
The Project consists of the purchase of a computerized dispatch system for
the City's Police and Fire Departments and a new telephone system for City
Hall.
The Project also consists of the land acquisition, design, construction,
furnishing and equipping of the Station. The Station will be located in the
Agency's Tri-City Redevelopment Project Area located at the south central
portion of the City at the confluence of Interstate lS and Interstate 10. The
land on which the Station is to be built is being purchased from-the Agency by
the City.
2
, ' .
o
o
o
,.,
Estimated Sources and Uses of Funds
The proceeds to be received from the sale of the Certificates (excluding
accrued interest which will be deposited in the Certificate Fund), together
with other moneys, are anticipated to be applied as follows:
Sources of Funds
Principal Amount of Certificates
Less: Certificate Discount (1)
Investment Earnings (2)
Total Sources
$2,875,000
(86,000)
10,540
j2.799.290
Application of the Funds
Acquisition and Construction
Advance Rental (3)
Reserve Fund
Costs of Issuance
Total Application of Funds
$2,103,900
210,167
431,250
53 973
i2..799:290
(1) Based upon an assumed discount of 31.
(2) Based upon .an assumed rate of 71 all available monies during the
construction period including amounts in the Reserve Fund and amounts for
Advance Rental.
(3) Interest from June I, 1986 through and including October 1, 1987.
THE CERTIFICATES
The Certificates will be sold, executed, and delivered in the aggregate
principal amount of $2,875,000. The Certificates will be dated June I, 1986
and will mature on October 1 as shown on the cover of this Preliminary
Official Statement.
The Certificates are deliverable in fully registered form, in the
denominations of $5,000 or any integral multiple thereof. Principal will be
payable only at the corporate agency office of the Trustee in Los Angeles,
California. Payment of interest with respect to the Certificates will be made
by check or draft mailed to the registered owner.
Optioua1 Redemption
The Certificates maturing on October 1, 1992 are subject to optional
redemption prior to maturity, at the option of the City, as a whole on any
interest payment date on or after October 1, 1991 from amounts deposited with
the Trustee by the City in accordance with the City's Option to Purchase the
Project or as a whole or in part (but not less than $20,000). Certificates so
called for redemption will be redeemed at the principal amount thereof and the
following redemption prices expressed as percentages of the principal amount
to be redeemed plU8 accrued interest to the redemption date:
3
. t I,. ".
o
Period of Redemption
(both dates inclusive)
Redemption Prices
(expressed as a percentae:e of par)
October 1, 1991 and April 1, 1992
October 1, 1992 and April 1, 1993
October 1, 1993 and thereafter
101 l
100 1/2l
100 l
Mandatory Redemption
The Certificates are subject to mandatory redemption on any date prior to
maturity in whole or in part, at par plus accrued interest, without premiwn.
from a payment made by the City on the purchase price of the Project from the
proceeds of insurance or condemnation if such proceeds are insufficient to
repair or replace the Project and the City has elected to apply such proceeds
to the payment of all or a portion of the purchase price for the Project
rather than pay the cost of repairing or replacing the Project. The
Certificates are also subject to mandatory redemption prior to maturity on any
date, at par plus accrued interest, upon a default by the City under the Lease
Agreement, from moneys on deposit in the Certificate Fund, and from proceeds
of the sale of the Project. Should such a mandatory redemption occur, it is
possible that there may be insufficient moneys available to the Trustee from
the Certificate Fund and the subsequent sale of the Project to pay all
outstanding Certificates in full. In such event, the outstanding Certificates
will be paid on a pro rata basis, first to the payment of interest past due
with respect to all Certificates and second to the payment of the unpaid
principal balance with respect to each Certificate which is then past due.
o Notice of Redemption
When redemption of the Certificates is authorized or required, the Trustee
will give notice of redemption to the Holders of the Certificates at the
expense of the City. Such notice will specify: (a) that the whole or a
designated portion thereof is to be redeemed, (b) the date of redemption, (c)
the place or places where the redemption will be made, and (d) the redemption
price. Such notice will further state that on the specified date there will
become due and payable upon each Certificate to be redeemed, the principal
thereof and premium, if any, together with interest accrued to said date, and
that from and after such date interest thereon will cease to accrue and be
payable.
Notice of such redemption will be mailed, after the moneys therefore have
been deposited in the Certificate Fund, to the respective registered Ro1ders
of any registered Certificates designated for redemption at their addresses
appearing on the Certificate registration books, at least twenty-five days but
not more than sixty days prior to the redemption date, which notice will, in
addition to setting forth the above information, set forth, in the case of
each registered Certificate called only in part, the portion of the principal
thereof which is to be redeemed; provided that neither the failure to receive
such notice nor any defect in any notice so mailed will affect the sufficiency
of the proceedings for the redemption of such Certificates.
o
4
. I.'.' ,".
o
o
o
Nature of the Certificates
Each Certificate represents a proportionate interest in payments to be
made by the City under the Lease Agreement the Agency. The Agency, pursuant
to the Trust Agreement, will assign its rights to receive Base Rental payments
under the Lease Agreement to the Trustee for the benefit of the Holders. The
obligation of the City to make such rental payments is payable by the City
from annual appropriations of the City from funds lawfully available therefor
during the earth fiscal year. Neither the full faith and credit nor the
taxing power of the City, the Agency, the State of California or any political
subdivision thereof is pledged to make payments under the Lease Agreement.
The Lease Agreement provides that the City will take action for each
fiscal year as may be necessary to include all rental payments in its annual
budget, beginning with fiscal year 1987-88, and to make annual appropriations
for.all rental payments. The Base Rental payable to the Trustee is calculated
to be sufficient to pay, when due, the principal and interest on the
Certificates. Additional Rental payments due from the City to the Trustee
include in each year amounts sufficient to pay for (i) all taxes and
assessments and (ii) all expenses incidental to the execution. sale and
delivery of Certificates and (iii) all administrative expenses of the Trustee
and the A*ency required to be paid by them in order to comply with the terms
of the Lease Agreement or Trust Agreement and (iv) all costs and expenses the
Agency may incur due to any default by the City under the Lease Agreement.
Should any such payments .be made later than the date due, as specified in the
Lease Agreement. the City will pay interest on the delinquent payments,
calculated at a rate equal to the average interest rate par annum on the
Certificates, from the due date to the payment date.
Should the City default, the Trustee, as assilllee of the Agency, may
either terminate the Lease Agreement and re-enter, effect all parties then in
possession and lease or sell the Project, subject to the Ground Lease, or may
enforce the Lease Agreement and hold the City liable for all rental payments
on an annual basis while re-entering, ejecting all parties then in possession
and re-letting the Projects. Such re-entry and re-letting will not effect a
surrender of the Lease Agreement. The City, in the event of default, waives
all rights to any rentals received by the Trustee through re-letting of the
Project should such rentals be in excess of rentals due from the City under
the Lease Agreement. The City agrees to pay any and all costs, loss or
damage, howsoever occurring, as a result of any re-entry or re-letting.
Should the Trustee terminate the Lease Agreement upon an event of default, the
Trustee may sell the Project and assilll to the buyer thereof the Agency's
interest in the Ground Lease.
The City may not mortgage. pledge. assign or transfer its interest in the
Lease Agreement without the consent of the Agency. The City has the right to
sublet the Project from time to time with the approval of the Agency.
A policy or policies of leasehold title insurance will be provided at or
prior to delivery of the Certificates insuring the City's leasehold interest
in the Project.
5
o
o
o
" .
The Project is also insured to the extent set forth herein under the
heading "Lease Agreement - Insurance" and insurance proceeds are required to
be applied to the repair of the Project, or if the proceeds are insufficient
to repair or replace the Project, the City may either pay any additional
amounts required to repair the Project or purchase the Project and thereby
cause the redemption of any outstanding Certificates.
Rental Payments
The Lease Agreement requires, in addition to Base Rental and Additional
payments, an advance rental payment from the proceeds of the sale of the
Certificates, which, together with any accrued interest, equals the interest
on the Certificates from October 1, 1986 to the date of delivery. On or
before each June 15 and/or December 15 commencing December 15, 1987, the City
will deposit to the Certificate Fund, an amount equal to the interest payments
due on the Certificates on the succeeding April 1 and October 1 of the same
fiscal year ("Base Rental"). Such Base Rental payments are for the annual
period commencing on July 1 of each year and terminating on the following June
30.
The Trust Agreement requires that the Base Rental payments be deposited in
the Certificate Fund on or before July 1 and applied on a semi-annual basis to
make principal and interest payments due with respect to the Certificates:
Flow of Funds - Certificate Proceeds
From the proceeds of the sale of the Certificates, $210,167 will be
deposited in the Certificate Fund, representing the advance rental payments
equal to the amount of interest due from the date of delivery of the
Certificates to and including October 1, 1987, plus accrued interest from June
1, 1986 to the date of delivery of such Certificates. The balance of the
proceeds, less costs of the sale of the Certificates and the Certificate
discount, will be deposited in the Construction Fund.
Pursuant to the tel"llUl of the Trust Agreement, all Base Rental payments
received by the Trustee from the City, any proceeds from the lease or sale of
the Project by the Agency after a default by the City, and any other moneys
required to be deposited pursuant to the Lease Agreement or Trust Agreement
will be deposited in the Certificate Fund, except to the extent required to be
deposited in the Reserve Fund to remedy a deficiency therein resulting from a
prior withdrawal to make payments on the Certificates.
On April 1, 1987, and each April 1 and October 1 thereafter, the Trustee
will promptly use the funds on deposit in the Certificate Fund to pay to the
Holders of the interest or principal of the Certificates then due.
If on any April 1 or October 1, the funds on deposit in the Certificate
Fund are insufficient to pay the interest when due, the Trustee will apply
moneys on hand in the Certificate Fund first to the payment of inter~st past
due with respect to all Certificates, pro rata if necessary, and second to the
payment of the unpaid principal balance with respect to each Certificate which
is then past due, pro rata if necessary.
6
o
o
o
" .
After redemption and payment of all Certificates of Participation,
including premiums and accrued interest (if any) and payment of any applicable
fees to the Trustee, or after having made provision for such redemption or
payment having been made to the satisfaction of the Trustee, any surplus
remaining in the Certificate Fund, will then be remitted to the City.
The following are brief outlines of certain provisions contair._d in the
financing and legal documents relating to the delivery of the Certificates and
the acquisition and construction of the Project and are not to be considered
full statements pertaining thereto. Reference is hereby made to such
documents on file with the Agency for further information in connection
therewith.
GROUND LEASE
In accordance with the Ground Lease as included within the Lease Agreement
and dated as of June 1, 1986, the City will lease the site of construction for
the Station to the Agency for the purpose of the Agency constructing the
Station thereon. The term of the Ground Lease will end one (1) day after all
the Certificates have been fully paid or retired but in no event later than
July 16, 1996.
LEASE AGREEMENT
Deposit of Proceeds
The Agency agren under the Lease Agreement to deposit or cause to be
deposited with the Trustee, into the Certificate Fund, the Advance Rental
payment of interest due on the Certificates from the date of delivery of the
Certificates to and including October I, 1987, and accrued interest from June
1, 1986, to the date of delivery of the Certificates, with the balance to be
transferred to the Construction Fund.
Acquisition BIJd Construction of Project; Commencement of Rental
The cost of acquisition and construction of, as well as progress payments
for each component of the Project (to include the contract price and any
engineering, administrative, legal and financial costs incurred by the Agency
contractors and the City) will be made from amounts held by the Trustee in the
Acquisition and Construction Fund. The Acquisition and Construction Fund will
be held and applied by the Trustee and the City will supervise and cause the
construction of the Project as agent of the Agency. The City has agreed to
take possession of the Project upon the completion of the Project.
City's Budget
The City covenants to include and maintain all rental payments due under
the terms of the Lease Agreement during any fiscal year in its budset for such
year, commencins in the 1987-88 fiscal year, and continuins each year
thereafter, and further covenants to make the necessary appropriations
therefor. The Lease Asreement provides that the several actions required by
7
o
o
o
. .
such covenants will be construed to be ministerial duties imposed by law and
it will be the ministerial duty of the officials of the City to carry out and
perform the covenants in the Lease Agreement agreed to be carried out and
performed by the City.
Lease Payments; Abatement
The City has agreed to pay to the Trustee, as assignee of the Agency, as
rental for the use of the Project, the Base Rental payments.
The rental payments will be abated during any period in which the Project
are unusuable due to damage or destruction, there is a substantial
interference with the City's use of the Project. Such abatement will be in an
amount that represents the fair market rental value of the remainder of the
Project not damaged or destroyed.
Maintenance, Utilities, Taxes and Modifications
The City, at its own expense, has agreed to maintain, or cause to be
maintained, the Project in good repair; the Agency has no responsibility for
such repair. The City has the power to make additions and improvements to the
Project provided the use of the Project for its intended purposes is not
impaired. Any such additions or' improvements to the Project that constitute
fixtures will automatically become subject to the Lease Agreement. The Agency
has agreed to take whatever steps are necessary, upon the City's written
request, to contest any proposed tax or assessment to be levied upon the
Project, or to take steps necessary to recover any tax or assessment paid.
The City agrees to reimburse the Agency for any and all costs and expenses
thus incurred by the Agency.
Insurance
The Lease Agreement requires the City to maintain or ,cause to be
maintained such policies of insurance and or sufficient reserves as the City
customarily maintains with regard to other public improvements similar in
nature to the Project including public liability insurance against claims for
bodily injury or death, or damage to public property occurring upon, in or
about the Project, and such other insurance as may be agreed upon from
time-to-time by the City and Agency. All policies will name the City, the
Agency and the Trustee as named insureds.
Notwithstanding the generality of the foregoing, the City will not be
required to maintain or cause to be maintained more insurance than is
specifically referred to above or any insurance unless the same is insurance
which is available from reputable insurers on the open market. The phrase
"insurance which is available from reputable insurers on the open market"
means standard policies of insurance with standard deductible offered by
reputable insurers in a competitive market.
8
.'
o
Effective July I, 1986 the City will officially J01n the California
Agencies Risk Management Authority ("CARMA") to provide insurance for all
public liability. CARMA will be comprised of the cities of San Bernardino,
San Diego, Anaheim, Santa Ana, Huntington Beach and Burbank which have a
combined population in excess of 1,864,000. Each member City will pay 1001 of
all claims costs up to $500,000. CARMA will pay all claims between $500,000
and $10 million dollars. CARMA will purchase excess insurance for all claims
costs from $10 to $50 million dollars per claim. The City will budget in its
Fiscal Year 1986/87 budget funds sufficient to cover membership costs in CARMA.
Eminent Domain
In the event of the exercise of eminent domain with respect to the
Project, the City is required to deposit the net proceeds of any condemnation
award in the Acquisition and Construction Fund held by the Trustee. Such
proceeds will be applied to the prompt repair or improvement of the Project by
the City, or will be transferred from the Acquisition and Construction Fund to
the Certificate Fund for redemption of outstanding Certificates, pursuant to
the Trust Agreement. In the event less than all of the Project is to be
condemned, the Lease Agreement shall continue in full force and effect and the
rental payments will be abated in part, provided that the ensuing Base Rental
payments shall in no event be less than the amount required to pay the
principal on Certificates remaining after the application of any award in
eminent domain proceedings to the redemption of the Certificates and the
interest thereon as they come due and payable.
o Assignment; Subleases
The Agency may assign any of its rights under the Lease Agreement, but the
City may not assign, pledge, mortgage or transfer any of its right under the
Lease Agreement without .the prior written consent of the Agency, provided that
the City may sublease the Project in whole or in part without the prior
written consent of the Agency under the conditions contained' 'in the Lease
Agreement, including the condition that such sublease or other permitted use
not cause the interest component of the lease payments to be subject to
federal or California income taxes. The City will at all times remain liable
for the performance of the covenants and conditions on its part to be
performed notwithstanding any assigning, transferring or subletting which may
be made.
Default by the City
Anyone of the following constitutes a default by the City under the Lease
Agreement:
(i) Failure by the City to make any payment required under the Lease
Agreement 15 days after when due;
o
9
'--'~\'''''i,~
o
o
o
. .
(ii) Failure by the City to comply with the proVlS1ons of the Lease
Agreement or default in the performance or observance of the
covenants, agreements or conditions on its part contained therein,
other then default described in (1) above, and the continuance of
such failure, refusal or default for a period of twenty-five (25)
days after written notice thereof by the Agency to the City;
(iii) The City abandons or vacates the Project;
(iv) The City's interest in the Lease, in whole or in part, is assigned or
transferred without the written consent of the Agency, either
voluntarily or by operation of law, or;
(v) Certain events relating to bankruptcy of the City or the inability of
the City to pay its debts.
Should the City, after notice of default, fail to remedy the default
within thirty (30) days of the date of such event of default, the Trustee, as
assignee of the Agency, may either terminate the Lease Agreement and re-enter,
eject all parties then in possession, and lease or sell the Project, subject
to the Ground Lease, or may enforce the Lease Agreement and hold the City
liable for all rental payments on an annual basis while re-entering and
re-letting the Project. Such re-entry and re-letting shall not effect a
surrender of the Lease Agreement. The City, in the event of default, waives
all rights to any rentals received by the Trustee through re-letting of the
Project should such rentals be in excess of rentals due from the City under
the Lease Agreement. Notwithstanding any re-entry or re-letting, the City
agrees to pay all costs, loss or damage howsoever occurring, including, but
not limited to, necessary renovation and alteration of the premises,
reasonable attorney's fees, and any real estate commissions actually paid, if
the rents received by the Trustee on re-letting the premises are insufficient
to pay such costs, loils or damage. Should the Trustee terminate the Lease
Agreement upon an event of default, the Trustee may sell the' Project and
assign to the buyer thereof the Agency's interest in the Ground Lease. (See
also the .ection entitled "ASSIGNMENT AND TRUST AGREEMENT - Event of Default".)
Option to Purchase
The City will have the option to purchase the Project, but only if it is
not in default with respect to the Project. The City may exerci.e its option
to purchase the Project on any "Prepayment Date" by paying the "Prepayment
Price" as shown in Table 1, together with the interest component of the Base
Rental payment to be paid on such Prepayment Date. Such Prepayment Price will
be deposited by the Trustee in the Certificate Fund to be applied to the
redemption of the Certificates.
10
. .. '.I
o
o
o
,. .
The City or its assignee will give the Trustee notice of its intention to
exercise its option not less than sixty (60) days in advance of the date of
exercise.
Table 1
OPTION TO PURCHASE, PREPAYMENT SCHEDULE
Preoayment Date
Preoayment Price.
October 1, 1991 and April 1, 1992
October 1, 1992 and April 1, 1993
October 1, 1993 and thereafter
101 '1
100 1/2
100
.. Expressed as a percentage of the principal amount of Certificates
outstanding on the applicable Prepayment Date.
Upon exercise of the option to purchase and the redemption of the
Certificates, all right, title, and interest of the Agency in the Project will
be transferred to the City or its assignee as the case may be.
ASSIGNMENT AND TRUST AGREEMENT
Trustee
The Truatee is appointed pursuant to the Trust Agreement (the "Trust
Agreement") to prepare, execute and deliver the Certificates and to act as a
depository of amounts held thereunder. The Truatee is required to make
deposits into and withdrawals from funds, and invest moneys held under the
Trust Agreement in Qualified Investments (defined below) in accordance with
the City's instructions. The Trustee will act in a ministerial and passive
capacity, except to the extent that, in the event of a default in payment of
the rental payments or in other obligations of the City under the Lease
Agreement, the Trustee will exercise the rights of the Agency with respect to
such default.
Funds
The Trust Agreement creates the Acquisition and Construction Fund,
Certificate Fund and the Reserve Fund to be held by the Trustee. Payment for
the cost of the Project will be made from disbursements from the Acquisition
and Construction Fund upon direction of the Truatee as agent of the Agency.
Upon payment of the total cost of the Project, any moneys remaining in the
Acquisition and Construction Fund are required to be transferred to the
Reserve Fund so as to satisfy the Reserve Requirement, with any funds
thereafter remaining to be transferred to the Certificate Fund to be applied
against the principal portion of the Base Rental payments.
11
, "
o
o
o
. .
The Trustee is required to invest and reinvest all IIIOneys held under the
Trust Agreement in permitted Investments at the highest yield the Trustee
deems practicable giving due regard to the safety of such IIIOneys and the date
upon which the IIIOneys will be required. Qualified Investments consist of
direct general obligations of, or guaranteed by, the United States of America
or any federal agency, certificates of deposit or time or demand deposits with
any qualified bank or savings institution (including the Trustee) which
deposits are insured by the Federal Deposit Insurance Corporation or the
Federal Savings and Loan Insurance Corporation or secured by obligations
described above.
AssigJllllent
Pursuant to the Trust Agreement, the Agency has assigned to the Trustee
for the benefit of the Holders of the Certificates (i) its right to receive
Base Rental payments by the City under the Lease Agreement, and (H) its
rights to receive 8IIIOunts payable upon default through the sale of the
Project, and (Hi) its rights under the Ground Lease, and (iv) its rights as
beneficiary of all security granted to it under the Lease Agreement.
Title Insurance
The City will obtain a policy of title insurance from a recognized title
insurance company in the principal 8IIIOunt of the Certificates. The Policy
will insure the City's fee title in the leasehold estate created by the GroUnd
Lease and the Lease Agreement. All net proceeds received under the policy
will be deposited by the Trustee in the Acquisition and Construction Fund and
disbursed in the manner set forth in the Trust Agreement. Such policy will be
in form satisfactory to the Trustee and in the 8IIIOunt of not less than two
million eight hundred seventy-five thousand dollars ($2,875,000).
Insurance and Condemnation Awards
The Trust Agreement creates an Acquisition and Construction Fund into
which the net proceeds of certain insurance benefits and eminent domain
proceedings with respect to the Project are to be deposited by the Trustee
into the Acquisition and Construction Fund.
As stated above, the City must provide upon the delivery of the
Certificates a title insurance policy payable to the Trustee in an amount at
least equal to the aggregate prineipal amount of the Certificates. The
Trustee is required to deposit in the Acquisition and Construction Fund all
proceeds derived from the policy of leasehold title insurance. The net
proceeds of such insurance are to be used as follows: (a) if the Trustee
determines that the title defect has not materially affected the operation of
the Project or the City's obligations under the Lease Agreement, to be
transferred to the Certificate Fund as a credit against the Base Rental
payments not required to be paid by the City; or (b) if all or a portion of
the Project is affected by such title defect and the Trustee determines that
such title defect has materially affected the operation of the Project or the
City's ability to meet its obligations under the Lease Agreement, to the
Certificate Fund to be used to payor prepay Base Rental payments and to
redeem Certificates. .
12
. "
o
o
o
,. .
The Trustee is also required to deposit any net proceeds of insurance
against destruction of the Project into the Acquisition and Construction Fund
to be used to rebuild or repair the Project, if requested by the City, or to
be used to redeem outstanding Certificates.
If all or any part of the Project will be taken by eminent domain
proceedings, the net proceeds therefrom will be initially deposited in the
Acquisition and Construction Fund and then disbursed as follows: (a) to the
Certificate Fund as a credit against the next Base Rental payments if the
Trustee determines that such proceedings have not materially affected the
operation of the Project or the City's ability to meet its obligations under
the Lease Agreement have not been impaired, and if the Trustee determines that
such proceeds are not needed for repair or rehabilitation of the Project and
the City has not disclaimed any award in condemnation; (b) to be used to
redeem Certificates or rebuild or repair the Project if less than all of the
Project and Site are taken and the Trustee determines that such proceedings
have materially affected the operation of such Project or the City's ability
to meet its obligations under the Lease Agreement; and (c) to be used either
to redeem Certificates if all of the Project is taken and condemnation award
proceeds, together with any other moneys then available to the Trustee for the
purpose, are sufficient to so redeem the Certificates, or to pay Base Rental
payments as the same become due if such proceeds are insufficient to redeem
all of the outstanding Certificates. After all Certificates have been retired
and the entire amount of principal and interest with respect to the
Certificates have been paid in full and after any other required payments to
the Trustee, the Trustee will pay the remainder of net proceeds to the City
and the Agency in the proportions set forth in the Lease Agreement. The
Trustee may obtain, at the City's expense, the report of an independent
engineer or other independent consultant in order to make any determination
with respect to the application of such net proceeds.
Events of Default
.'
Upon the occurrence of an event of default by the City under the Lease
Agreement, the Trustee may take all actions necessary to eliminate such
default, to recover damages therefor, and to deposit any moneys received from
the City into the Certificate Fund. In the event the Trustee fails to take
any action to eliminate such default, the Bolders of a majority in aggregate
dollar amount of the Certificates then outstanding may institute any suit,
action, I8llndamua or other proceedings in equity or at law for the protection
or enforcement of any right under the Lease Agreement or Trust Agreement, if
and only if the Certificate Bolders have first _de written request of the
Trustee after the right to exercise such powers or right of .action shall have
occurred, and will have afforded the Trustee a reasonable opportunity either
to proceed to exercise the powers therein granted or granted under the law or
to institute such action, suit or proceeding in its name, and in addition,
unless the Trustee will have been offered reasonable security and indemnity
against the costs, expenses and liabilities to be incurred therein or thereby,
and the Trustee will have refused or neglected to comply with such request
within a reasonable time. Neither the Lease Agreement nor the Trust Agreement
contains an express default remedy of acceleration of Base Rental payments or
principal and interest with respect to the Certificates.
13
o
o
o
,
. .
Amendment
The Trust Agreement may be amended only by written agreement among the
City, the Trustee and the Agency but no amendment will become effective as to
the Holders of the Certificates then outstanding without the approval of a
majority in aggregate principal amount of the Certificates provided that no
such amendment will impair the right of any such Holder to receive his
proportionate share of Base Rental payments in accordance with his
Certificate. Notwithstanding the foregoing, the Trust Agreement may be
amended without such Holders' consent but only for the purpose of curing any
ambiguity, correcting defects, or in regard to questions arising under the
Trust Aareement, provided that such amendment does not adversely affect the
interests of the Holders of the Certificates.
Defeasance
Upon payment of all outstanding Certificates, either at or before
maturity, or upon the deposit of money (from the exercise of the option by the
City to purchase the Project) or Qualified Investments with the Trustee
sufficient with other available funds to retire the Certificates either at or
before maturity, upon giving or providing for notice required by the Trust
Agreement, the Trust Agreement will at the election of the City be terminated.
CITY FINANCIAL INFORMATION
The following information is
Neither the obligation of the City
will constitute a debt of the City.
presented as general background data.
to pay Base Rentals nor the Certificates
City's Taxable Valuation
Taxable valuations within the City are established by the San Bernardino
County Assessor, except for utility property, which is assessed-by the State
Board of Equalization. Article XIII A of the State Constitution provides
that, beginning with the 1978-79 fiscal year, property taxes in California are
limited to one percent of full cash value, except for taxes to pay debt
service on indebtedness approved by the voters prior to July 1, 1978. Article
XIII A defines full cash value as the County Aase88or's valuation of real
property as shown on the 1975-76 tax bill (''base year'), except in the case of
newly-constructed property or property which undergoes a change in ownership
which must be valued as of the date of completion of construction or of the
change in ownership. Yearly taxable value increases following the base year
are limited to the growth in the Consumer Price Index, but may no' exceed two
percent annually.
Prior to the 1981-82 fiscal year, property was assessed at twenty five
percent (25%) of cash value, and therefore, Article XIII A imposed a maximum
tax rate of $4.00 per $100 of taxable valuations, except for taxes to meet
debt service on indebtedness approved by the electorate prior to July 1,
1978. Beginning in 1981-82, property is assessed at one hundred percent
(l00%) of cash value and property tax rates are expressed in terms of their
ratio to such full cash value.
14
o
o
o
.,
. .
The taxable valuations reflect homeowner's and business inventory
exemptions. Tax revenues lost as a result of the homeowner's exemption is
reimbursed by the State based on the total taxes which would be due on the
taxable valuation of the property qualifying for the exemption, without
allowance for delinquencies. The homeowner's exemption is $7,000 of the
taxable valuation of an owner-occupied dwelling, providing the owner files for
the exemption.
For asseument and collection purposes, property is classified either as
"secured" or "unsecured", and is 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 sufficient, in the opinion of the County Assessor, to secure
payment of the taxes. Other property is assessed on the "unsecured roll".
A 5-year sUlllllary of the City's taxable valuations are set forth below.
These figures are presented for historical comparison, with reference only to
the time frame of the years shown, inasmuch as Article XIII A of the
California Constitution, discussed previously, will have an effect upon future
taxable valuation of the City.
Fiscal
Year
1980-81
1981-82
1982-83
1983-84
1984-85
1985-86
City of San Bernardino
Summary of Taxable ValuatioDS
Before
Redevelopment
Adjustment
$1,841,243,820
2,167.924,312
2,481,468,627
2.678,131,336
2,840,386.578
3,124,769,829
After
Redevelopment
Adiustment
$1,604,768,472
1,817 ,954,228
2,009,235,979
2,103,610,435
2,221,712,071
2,383',367,863
Source: California Municipal Statistics.
Tax Levies and Delinquencies
The San Bernarelino County Tax Collector collects secureel tax levies for
each fiscal year representing taxes levied for each fiscal year on taxable
real and personal property which is situateel in the County as of the preceding
March 1. Unsecureel taxes are assesseel anel payable on March 1 anel become
delinquent on August 31 in the next fiscal year. One-half of the secureel tax
levy is elue November I, and becomes delinquent December 10; the seconel
installment is elue February 1 anel becomes delinquent April 10. A ten percent
(101) penalty is added to any late installment. On June 30 delinquent
properties are solei to the State.
15
. 'J
o
o
o
. .,
Property owners may redeem property upon payment of delinquent taxes and
penalties. Properties sold to the State incur a redemption penalty of one and
one-half percent (1 l/2~) per month of the tax due. Properties may be
redeemed under an installment plan by paying current taxes, plus twenty
percent (20~) of delinquent taxes for five years. Interest accrues at one and
one-half percent (1 l/2~) per month on the unpaid balance. If no payments
have been made on delinquent taxes at the end of five fiscal years, the
property is deeded to the State. Such properties may thereafter be conveyed
to the County Tax Collector as provided by law.
16
.' ."
o
o
o
. .
Direct and Overlapping Debt
Set forth is a statement of the City's direct and overlapping bonded debt
as of May IS, 1986.
City of San Bemardino
1985-86 Assessed Valuation: $2,383,367,863 (after $741,401,966 redevelopment
tax allocation increment)
% Applicable
8.2171
73.902
Direct and Overlapp~ Bonded Debt:
San Bernardino County Building Authorities
San Bernardino City Unified School District
Colton Joint Unified School District
(Various Issues)
Rialto Unified School District
Redlands Unified School District
City of San Bernardino Building Authorities
San Bernardino Valley Municipal Water District
San Bernardino Valley MWD Cert. of Participation
South San Bernardino County Water District
City of San Bernardino 1915 Act Bonds (Estimate)
TOTAL GROSS DIRECT AND OVERLAPPING BONDED DEBT
Less: City of San Bernardino Public Safety Authority
San Bernardino MWD Certificates of Participation
San Bernardino Co. Water System Acquisition
Certificates of Participation
TOTAL NET DIRECT AND OVERLAPPING BONDED DEBT
4.046- 8.891
11.893
0.880
100.
30.716
30.716
10.259
100.
Ratio to Assessed Valuation:
Gross Direct Debt ($24:110,000)
Net Direct Debt ($19,380,000)
Total Gross Debt
Total Net Debt
1.011
0.811
2.471
2.171
SHARE OF AUTHORIZED AND UNSOLD BONDS:
San Bernardino Unified School District . . . . . .
South San Bernardino County Water District . . . .
. . . . . .
. . . . . .
STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/85: $6,189,175
(1) Includes San Bernardino County certificates of participation.
(2) Excludes tax allocation and revenue bonds.
(3) Excludes refunding bonds to be sold.
Source: California Municipal Statistics.
17
Debt 05/15/86
$ll,582,173 (l)
1,507,600
101,916
359,287
14,828
24,llO,OOO (2)
4,162,018
1,750,812
3,590
15.325,000
$58,917,224
4,730,000
1,750,812
833.203
$51,603,209
$169,975
$ 2,075
'J . .
o
o
o
Financial Statements
The City is audited annually by an independent auditor. Governmental
funds, including the General Fund are maintained on a modified accrual basis
of accounting which provides that revenues are recorded in the accounting
period in which they become measurable and available to finance expenditures
of the current period.
Included as Appendix A is the City's Annual Financial Report for the
fiscal year ended June 30, 1985.
Appropriations Limit
An initiative constitutional amendment entitled "Limitation of Government
Appropriations" (sometimes referred to as the "Gann Initiative") was approved
by California voters on November 6, 1979. Under the amendment, which adds
Article XIII B to the California Constitution, state and local government
agencies are subject to an annual "appropriations limit" and are prohibited
from spending "appropriations subject to limitation" above the limit.
"Appropriations subject to limitation" consist of "tax revenues", state
subventions and certain other funds (together herein referred to as proceeds
of taxes). The amendment does not affect the appropriations of money excluded
from the definition of "appropriations subject to limitation", such as debt
service on indebtedness existing or authorized by January I, 1979, or
subsequently authorized by the voters and appropriations mandated by the
court. The amendment allo excludes appropriations subject to limitation the
appropriation of proceeds from regulatory licenses, user charges, or other
fees to the extent that such proceeds equal "the cost reasonably borne by such
entity in providing the regulation, product, or service".
In general terms, the initiative provides that the appropriation limit
will be based on 1978/79 authodzations to expend proceeds of taxes and will
be adjusted annually to reflect changes in cost of living, population, and
transfer of financial responsibility of providing services from one
governmental unit to another. This amendment allo provides that if an
Agency's revenues in any fiscal year exceed the amount which is appropriated
by such agency in compliance with the initiative, the excess must be returned
during the next two fiscal years by a revision of tax rates or fee schedules.
In the opinion of the City, appropriations to pay Base Rentals pursuant to
the Lease will not cause the City to exceed its appropriations limit.
THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
General
The Agency was established pursuant to the Law and activated by
appropriate resolutions of the Mayor and CODlllOn Council of the City of San
Bernardino in 1952. The Agency is responsible for redeveloping and upgrading
blighted areas of the City.
18
..' "
o
o
o
,. ,
Pursuant to the Law, the legislative body of a city is authorized to adopt
an ordinance declaring itself to be a redevelopment agency. Upon the taking
of such action, all rights, powers, duties, privileges and illlDUllities vested
by the Law in a redevelopment agency are then vested in the legislative body
of the city. The Mayor and Common Council of the City adopted an ordinance
effective July 1, 1978 declaring themselves to be the Redevelopment Agency of
the City of San Bernardino.
Members and Officers
The members and officers of the Agency, their occupations and the
expiration date of their terms are as follows:
Name and Office
Evlyn Wilcox
Esther Estrada
Ralph Hernandez
Dan Frazier
Stephen C. Marks
Gordon Quiel
Jack Reilly
Jack Strickler
OcCUll8tion
Expiration
of Term
June, 1989
June, 1989
June, 1987
June, 1987
June, 1989
June, 1987
June, 1989
June, 1987
Mayor
COlllDUllity center manager
Retired'civil service worker
Pastor
University of California business administrator
Businessman
Land planner
Real estate broker
Agency Powers
All powers of the Agency are vested in its seven members who are elected
members of the Common Council. Pursuant to the Law, the Agency is a separate
public body and exercises governmental functions in planning and implementing
redevelopment projects.
The Agency may exercise broad governmental functions and authority to
accomplish its purposes, including, but not limiting to, the rilht of eminent
domain, the right to issue bonds or notes for authorized purposes and to
expend their proceeds and the right to acquire, sell, rehabilitate, develop,
administer or lease property. The Agency may demolish buildings, clear land,
and cause to be constructed certain improvements including streets, sidewalks
and utilities. and can further prepare for use as a building site any real
property which it owns or administers.
The Agency may, from any funds made available to it for such purposes, pay
for all or part of the value of land and the cost of buildings, facilities, or
other improvements to be publicly owned and operated, provided that such
improvements are of benefit to a redevelopment project area and cannot be
financed by any other reasonable method. The Agency may not construct or
develop buildings, with the exception of public buildings, and must sell or
lease cleared property which it acquires within a redevelopment project area
for redevelopment in conformity with a particular redevelopment plan, and may
further specify a periOd within which such redevelopment must begin and be
completed.
19
. .
o
o
o
\. .
CONCLUDING INFORMATION
Underwriting
The Certificates have been sold at a net interest rate of '1. the
original purchase price to be paid for the Certificates is $ , plus
accrued interest. The underwriter(s) intend(s) to offer the Certificates to
the public initially at the prices and/or yields set forth on the cover page
of this Official Statement, plus accrued interest from June 1, 1986, which
prices or yields may subsequently change without any requirement of prior
notice.
The underwriter(s) reserve the right to join with dealers and other
underwriter. in offering the Certificates to the public. The underwriter(s)
may offer and .ell Certificates to certain dealers (including dealers
depositing Certificate. into investment trust.) at price. lower than the
public offering price., and .uch dealers may reallow any such discounts on
sales to other dealers.
In reoffering Certificates to the public, the underwriter(s) may
overallocate or effect transactions which stabilize or maintain the market
prices for Certificate. at levels above those which might otherwise prevail.
Such stabilization, if commenced, may be di.continued at any time.
Pending Federal Tax Legislation
On December 17, 1985, the Bouse of Repreaentative. of the United States
Congress pa.sed B.R. 3838, the Tax Reform Bill of 1985 (the "Bouse Tax
Bill"). The Bouse Tax Bill would make a number of changes in the provisions
of the Internal Revenue Code that relate to tax-exempt obligations issued by
state and local governmental entities. Because of these changes, the tax
exemption of interest. on the Certificates offered hereby may be adversely
affected if the Bouse Tax Bill were to apply to such Certificates;
Under its terms, the Bouse Tax Bill would apply to all state and local
government obligations i.sued after December 31. 1985. Bowever. on March 14,
1986. a statement was issued by the Chairman and Ranking Members of the House
Ways and Means Co_ittee and the Senate Finance Co_it tee. and the Secretary
of the Treasurer (the "Statement") which endorsed a postponement of the
effective date of the Bouse Tax Bill with respect to certain of its tax-exempt
bond provisions until the earlier of September 1. 1986. or the date of final
enactment of tax reform legislation (i.e. the date on which a bill is signed
by the President). The Statement would apply this postponement of the
effective date to any obligations to be issued by state or local governments
which. under pre.ent law. are not (i) industrial development bonds. (ii) bonds
that would be industrial development bonds if Section 50l(c)(3) charitable
organizations were nonexempt persons within the meaning of Section 103(b)(3)
of the Internal Revenue Code. as amended. (Hi) student loan bonds. (iv)
mortgage subsidy bonds. (v) "private loan bond.... (vi) "pension bonds." or
(vii) certain other bonds which under current law might be treated as
industrial development bonds but for application of the security interest
20
"
o
o
o
"
test. The Statement further indicates that any obligations to which it
applies would be exempted, until the new effective date, from essentially all
proposed new provisions and restrictions of the House Tax Bill. In
particular, proposed new provisions of the House Tax Bill concerning rebate of
arbitrage profits and a requirement to expend a minimum amount of proceeds of
the obligations within thirty days of issuance of the obligations would be
postponed pursuant to the Statement.
The Statement would not alter the proposed effective date of Sections 1022
and 1023 of the House Tax Bill, dealing with the tax treatment of tax-exempt
obligations held by certain insurance companies. Under the House Tax Bill,
interest represented by any Certificates held by property or casualty
companies may reduce the company's deduction for loues incurred and, for
years after 1987, may be subject to a minimum tax.
It is the opinion of Special Counsel that the obligations represented by
the Certificates are the type of Obligations described in the Statement for
which certain effective dates of the House Tax Bill would be postponed, with
the effect that most provisions of the House Tax Bill would not apply to the
Certificates, and that the City has complied with the remaining provisions of
the House Tax Bill. Special Counsel, however, will express no opinion on the
effect of certain sections of the House Tax Bill concerning the tax treatment
of tax-exempt obligations held by certain insurance companies. A copy of the
opinion which Special Counsel expects to deliver at the closing is set forth
in Appendix C hereto.
On May 7, 1986, the Finance Committee of the United States Senate
unanimously approved a tax reform proposal (the "Proposal"). On May 29, 1986,
the Finance CODlllittee relea8ed the detailed text and the cODlllittee Report
explaining the Proposal. According to the text and the Committee Report, the
provision. in the Code pertaining to the tax-exempt status of interest on
state and local government obligation. would be modified; however, these
modification. generally would apply only to obligation. i..ued after the date
of enactment of a bill incorporating the terms of the Proposal and thus
(consi.tent with the Statement) generally would not apply to the
Certificates. However, the Proposal includes provisions for a corporate
alternative minimum tax that would treat as a preference item 50% of the
excess of a corporation' s pre-tax adjusted net book income over its "pre-book
alternative minimum taxable income". Tax-exempt interest on all state and
local obligations, whenever issued or acquired (including interest on the
Certificates) IIIIlY be includable in adjusted net book income for this purpose
according to the Committee Report. The House Tax Bill would not subject
interest represented by the Certificates to an alternative minimum tax. If
the Proposal 18 passed by the full Senate, its provisions would have to be
reconciled with the House Tax Bill in a Joint Conference Committee.
The City cannot predict whether the House Tax Bill or the Proposal will be
enacted into law, either in their present form or in a revised form, or what
the effective date of any legislation IIIIlY be, or whether any other proposal to
amend the federal tax law. may be IIIIlde or enacted. There can be no assuranceî
21
. .
o
o
o
'.
that legislation enacted or proposed after the date of issuance of the
Certificates will not have an adverse effect on the tax-exempt status or the
market price of the Certificates; and the City has not covenanted to comply
with any new requirements imposed by such legislation in order to preserve the
tax-exempt status of the Certificates.
Legal Opinion
The opinion of Best, Best , Krieger, Riverside, California, Special
Counsel, approving the validity of the Certificates, stating that interest on
the Certificates is exempt from income taxes of the United States of America
under present federal income tax laws, such interest is also exempt from
personal income taxes of the State of California under present State income
tax laws. Compensation for Special Counsel's services is in part contingent
upon the sale and delivery of the Certificates.
A copy of such opinion, certified by an officer
facsimile signature, will be printed on the back
Certificate. No charge will be made to the purchaser
certification.
of the City by his
of each definitive
for such printing or
The legal opinion is only as to legality and is not intended to be nor is
it to be interpreted or relied upon as a disclosure document or an express or
implied recommendation as to the investment quality of the Certificates.
Tax Exempt Status
In the opinion of Special Counsel, interest on the Certificates is exempt
from federal income taxes and from State of California personal income taxes
under existing statutes, regulations, rulings and court decisions.
No Litigation
The City will furnish a certificate of the City Attorney certifying that
there is no direct litigation pending against the City of San Bernardino
affecting the validity of the Certificates.
Ratings
The City has received ratings from Moody's Investor's Service, Inc. and
Standard , Poor's Corporation as shown on the cover of this Official
Statement. These ratings reflect the views of the respective rating agency
and explanations can be obtained from Moody's Investor's Service, Inc., 99
Church Street, New York, New York 10007, (212) 553-0300 or Standard' Poor's
Corporation, 25 Broadway, New York, New York 10004 (212) 208-8000. There is
no assurance that such rsting will remain for any given period of time or they
will not be lowered or withdrawn entirely if, in the judgment of either rating
agency, circumstances so warrant.
22
o Municipal Bond IDsurance
The City has provided information regarding the sale of the Certificates
to the American Municipal Bond Assurance Corporation ("AMBAC"), the Municipal
Bond Assurance Corporation (MBIA) and Financial Guaranty Insurance Corporation
(FGIC). The City will not have any obligation or duty to provide any such
policy or to pay any insurance premium. Bowever, the City has requested each
of the respective insurers listed above to make its insurance available for
the Certificates with a premium to be paid, at the option of the bidder, by
bidder submitting a bid for the Certificates.
The Certificates will be awarded to the responsible bidder submitting the
best bid to the City, as described in the official Notice Inviting Bids,
without consideration of insurance.
Legility for Investment in California
The California Government Code providea that obligations authorized and
issued under the Law shall be legal inveatments for all banks, trust companies
and savings banka, insurance companies, and varioua other financial
institutions, aa well as for trust funds. The Certificates are also
authorized security for public deposita under the Community Redevelopment Law.
o
The Superintendent of Banks of the State of California has previously
ruled that obligations of a redevelopment agency are eligible for savings bank
investment in California.
Audited Financial Statements
The financial atatements of the City for the year ended June 30, 1985 have
been examined by Thomas, Byrne " Smith, Riverside, California. The
accountants' report, the financial atatements and the notes to the financial
statements are included as Appendix A of thia Official Statement."
Miscellaneous
All of the preceding summaries of the a.aolution, the California
Government Code, other applicable legislation, the Lease Agreement, the
Project, the City, the Agency, agreements and other documents are made subject
to the proviaiona of auch documenta respectively and do not purport to be
complete statements of any or all of such proviaiona. Reference is hereby
made to auch documenta on file with the City for further information in
connection therewith.
Thia Official Statement does not conatitute a contract with the purchasers
of the Certificates.
o
23
o
o
o
"
Any statements made in this Official Statement involving matters of
opinion or estimates, whether or not so expressly stated, are set forth as
such and not as representations of fact, and no representation is made that
any of the estimates will be realized.
The execution and delivery of this Official Statement by the Mayor has
been duly authorized by the Mayor and Common Council of the City.
THE CITY OF SAN BERNARDINO, CALIFORNIA
/s/ Evlyn Wilcox
Mayor
24
o
o
o
"
SUPPLEMENTAL INFORMATION
THE CITY OF SAN BERNARDINO
The following information concerning the City of San Bernardino and
surrounding areas are included only for the purpose of supplying general
information regarding the community. The Bonds are not a debt of the City of
San Bernardino, State of California or any of its political subdivisions, and
neither said City, said State nor any of its pOlitical subdivisions is liable
therefor.
General
The City of San Bernardino, county seat of San Bernardino County,
California, is located at the base of the San Bernardino. Mountains, 58 miles
east of Los Angeles. The City was incorporated on April 13, 1854. The City
operates under a charter form of government, directed by the Mayor and Common
Council of seven councilmen elected from their respective wards and the Mayor
elected at large by the voters.
Transportation is provided by several major freeways, freight lines, the
Atchison, Topeka and Southern Pacific Santa Fe Railroad, Union Pacific
Railroad and Ontario International Airport. San Bernardino is a distribution
center for the inland areas of Southern California.
Population
The City's population according to the 1980 census was 118,092. A summary
of the City's population from 1960 to 1985 is shown below.
1960
1970
1980
1981
1982
1983
1984
1985
92,050 (1)
106,892 (1)
118,092 (1)
121,900 (2)
129,400 (2)
128,800 (2)
131,000 (2)
134,700 (2)
(1) U.S. Bureau of the Census,
(2) Estimated by the Population Research Unit, California State Department of
Finance.
25
.' ~, t,
o
o
o
Labor Force
The civilian labor force employment and unemployment for the Riverside-San
Bernardino-Ontario labor market which includes all of Riverside and San
Bernardino Counties is shown below. The total civilian employment for March
1985 was reported by the State Employment Development Department to be
684,600. The total civilian unemployment rate and the unemployment rate as of
March 1985 were reported to be 51,200 and 7.5~ respectively.
1980
1981
1982
1983
1984
1985
Riverside-San Bel'll8l'dino-Ontario Labor Mlll'ket
Civilian Labor Force, Employment and Unemployment
Labor
Force
591,500
606,900
636,235
646,900
651,500
684.600
Unemployment
Rate
7.6~
8.5
12.2
9.3
9.2
7.5
EmploYIllent
546,600
555,400
558,809
587,000
591,400
633,400
Unemployment
44,900
51,500
77,426
59,900
60,100
51,200
Source: State of California, Employment Development Department.
The following lists annual average number of wage and salary employees by
industry within Riverside and San Bernardino Counties for 1980 to March 1984.
Government is the largest employer in the two counties with almost 21 percent
of all wage and salary workers employed by government. The diversified
services industry represents the second largest source of employment with
approximately twenty percent (20~) of all employment. Health services
comprise about one-third of the services industry workers. Retail trade is
the third largest employer. Combined government, services industry and retail
trade companies approximately two-thirds of total nonagricultural employment
in the two counties.
26
" '
0 Riverside and San Be1'll8l'dino Counties
ADnual Average EmploymeDt by Industry (1)
1981 1982 1983 1984 1985(2)
Mining 2,200 1,300 1,000 1,200 1,200
Construction 23,900 21,300 19,100 21,500 26,600
Manufacturing, nondurables 18,200 16,700 17,400 17,500 18,100
Manufacturing, durables 45,900 40,400 39,300 39,000 40,700
Transportation & Public Util. 25,700 25,300 24,900 25,100 26,100
Wholesale Trade 15,400 15,100 16,100 16,700 17,500
Retail Trade 93,300 99,200 92,800 98,500 108,200
Finance, Ins. & Real Estate 19,800 19,600 18,800 19,700 20,000
Service Industries 94,300 97,600 99,000 102,500 105,000
Federal Government 17,300 17 , 700 18,100 18,000 17,800
State & Local Government 83,800 84.300 86,800 86.800 90.500
Total Nonagricultural 439,800 438,500 433,300 446,500 471,700
Agriculture, Forestry & Fisheries 20.900 21,800 21,400 21.700 23,400
Total All Industries 460.700 460.300 454,700 468,200 495.100
o
o
(1) Employment reported by place of work excluding workers involved in labor
disputes, self-employed, unpaid family and domestic workers.
(2) Data as of March 1985.
Source: State of California, Employment Development Department.
EmploymeDt and Industry
Located within San Bernardino's economic area are several major employers.
Norton Air Force Base is the City's single largest employer. Approximately
3,491 civilian employees and 6,130 military personnel contribute to San
Bernardino's economic environment through a gro.. annual payroll of $153.7
million. The principal installation at Norton is the 63rd Military Airlift
Wing, and the base serves as one of the three ports of air embarkation and
debarkation for the Pacific theatre.
Other major employers include wholesale distributors of beverages (alcoholic
and soft), produce, lIIeats, candy, tobacco and sundries to the entire Southern
California inland regions. Some of the leading distributors are: Gate City
Beverage. Glaser Bros., Grand Central Produce, Inland Distributors, and the
distributing firm of Bank, Bohemian and A. Diel.
27
o
o
o
The largest manufacturing firms in the San Bernardino area are:
Name of ComP8DY
Calif. Steel Corp., Fontana
The Sun Company, San Bernardino
California Portland Cement, Colton
Terry Industries, San Bernardino
Weyerhauser Company, Colton
H.M.K. Marketeer, Redlands
Hailey Bros.
Employment
600
450
352
120
145
124
120
Products
Iron and steel
Printing and publishing
Cement
Travel trailers
Shipping cartons
Electric Vehicles
Industrial hardware
The largest nonmanufacturing firms in the San Bernardino area are:
Name of ComP8DY
Norton Air Force Base
Atchison Topeka , Santa Fe Railroad
Southern Pacific Railroad
San Bernardino County
City of San Bernardino
TRW Systems
Inland Center Mall
Central City Mall
Southern California Edison, Co.
Souther California Cas Co.
Ceneral Telephone Company
Pacific Telephone Company
City School System
San Bernardino Valley College
California State College,
San Bernardino
Loma Linda University and Hospital
Veterans Administration Hospital,
Loma Linda
Campus Crusade for Christ
Southland Corporation
Source:
Employment
9,621
2,669
1,200
9,554
865
550
2,340
1,600
224
402
584
420
2,900
1,000
626
6,022
1,240
800
300
San Bernardino Chamber of Commerce.
28
Products
Military
Transportation
Transportation
County Administration
City Administration
Research/program
management
Regional shopping center
Regional shopping center
Electrical - utility
Gas - utility
Communications
Coamunications
Unified School System
Coamunity College
State College
University and Hospital
Hospital
Christian Conference Center
Distribution warehouse
,
.. .
o
o
o
Construction Activity
The following table shows building permit valuation for the City from 1980
through 1984.
Building Permit Valuation
(Valuation in Thousands of Dollars)
1980 1981 1982 1983 1984
Residential
New single-dwelling $22,174 $28,848 $ 5,464 $ 23,709 $ 35,650
New multi-dwelling 25,161 7,156 7,216 10,522 43,906
Additions, alterations 5,286 3,624 4.715 $ 5,301 4,815
Total Residential $52,621 $39,628 $17,395 39,532 $ 84,371
Non-residential
New co_rcial $23,884 $18,200 $19,786 $ 45,511 $ 27 ,798
New industrial 415 1,100 4,249 4,089 1,556
Other 2,375 2,801 5,290 2,670 8,898
Additions, alterations 6,700 8.644 10.969 9.397 15,978
Total Non-residential 33 374 30 755 40.294 61 667 54,230
Total Valuation ;85:995 '70: 383 '57.689 '101:199 *138.601
No. of New Dwelling Units
Single-dwe11ing 444 477 98 412 616
Multi-dwelling 923 ---.ill ---D! ~ 1,377
Total Units Wll -W .....JJ!i ...llJ. 1.993
Source: "California Construction Trends," Security Pacific National Bank.
29
.
.,.. (
o
TraDsportation
Santa Fe Railroad, Union Pacific Railroad and Southern Pacific Railroad
provide regularly scheduled service, with 24-hour switching service and
reciprocal-swi tching agreements between all three Railroads. "Piggy-back"
service is available. San Bernardino is also serviced by AMTRAK.
All major freigh~ lines have terminals in the San Bernardino area,
providing daily-scheduled service to all transcontinental points. Overnight
delivery fa available to Los Angelea, Long Beach, San Diego, San Francisco,
Northern California, Arizona, and Nevada.
Ontario International Airport (20 miles by freeway) is served by nine
commercial airlines, including two intrastate and one commuter airline.
Golden West Airline connects with major carriers at Los Angeles International
Airport. A private and commuter airport, Rialto Airport, provides service for
private and commercial flights.
Greyhound lines and Continental Trailways provide transcontinental
service. The Southern California Rapid Transit District (RTD) provides hourly
service throughout the San Bernardino/Riverside/Ontario Metropolitan Area.
The Omnitrans System operated by a Joint Powers Authority between the County
of San Bernardino and the cities of Chino, Colton, Fontana, Loma Linda,
Montclair, Ontario, Redlands, Rialto, San Bernardino and Upland provides
hourly service within the City of San Bernardino and between the ten cities
and county areas, from Pomona to Calimesa.
o Utilities
The City provides domestic water service and sanitary sewer services. The
natural gas is supplied by Southern California Gas Company. Southern
California Edison Company provides electrical power. Telephone service is
provided by Pacific Telephone and Telegraph Company and Genetal Telephone
Company.
o
Community Facilities
San Bernardino has four general hospitals with 978 total bed capacity, 208
physicians/surgeons, 100 dentists, 31 optometrists, and 27 chiropractors.
There are thirty-seven elementary schools, eight junior high school, four
high schools. San Bernardino Valley College (2 yean). San Bernardino State
College (4 years). twelve parochial schools and twenty-five business. trade,
and professional schools in the City. Other institutions located nearby are
Loma Linda University, the University of Redlands and the University of
California at Riverside.
30
Il.' ..,
o
o
o
There are 125 churches, six libraries, three newspapers, seven radio
stations, eleven TV channels, two TV cable systems, twenty-six banks, fifteen
savings and loans, twenty parks and playgrounds, fourteen theatres and five
public golf courses. Other recreational facilities include the 1,800 seat
California Theatre of Performing Arts, an outdoor bowl seating 5,000, and a
baseball park seating 500. The City has six recreation centers and a cultural
arts center. Thirty-one baseball fields offer Little League, Pony League and
softball. There are organized youth baseball and football teams, after-school
playground programs, senior citizen' s activities, civic and fraternal
organizat!ons.
San Bernardino is the home of the National Orange Show, which is held each
year during the spring. The Show Grounds also host such events as swap meets,
auto racing, concerts, car shows, football, horse shows and rodeos.
San Bernardino is the headquarters for the Western Region Little League,
hosting the tournament between teams from the thirteen Western states each
year.
31