HomeMy WebLinkAbout02-Water Department
C:;.:v OF SAN BERNARr.:,"O - REQU":ST FOR COUNCIL Ar-'::;ION
From: Bernard C. Kersey, Ex-Officio
Secretary
Dept: Board of Water Commissioners
Subject: Sale of Sewer Revenue Refunding
Bonds- 1986
Date: February 7, 1986
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Synopsis of Previous Council action:
Resolution No. 83-98 - Authorize issuance of Sewer Revenue Refunding Bond
Anticipation Notes Issue of 1983.
Resolution No. 84-97 - Authorize issuance of Renewal Sewer Revenue Refundin~
Bond Anticipation Notes.
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Recommended motion:
SEE ATTACHED
Contact person:
Bernard Kersey
Phone:
383-5393
Supporting data attached:
Yes
Ward:
All
FUNDING REQUIREMENTS:
Amount:
$234,175
Source: 'Sewer Fund C.
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Council Notes:
75.0262
Agenda Item No. d"
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CITY OF SAN BERNARDINO, CALIFORNIA
AGENDA
FEBRUARY 13, 1986
Common Council
1. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, PROVIDING FOR THE SALE OF CITY OF SAN
BERNARDINO, CALIFORNIA, SEWER REVENUE REFUNDING BONDS, ISSUE OF
1986 (REGIONAL WASTEWATER TREATMENT PLANT PROJECT)
2. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO, CALIFORNIA, APPROVING AND ACCEPTING A PROPOSAL
TO PROVIDE BOND COUNSEL, CONSULTING AND UNDERWRITING SERVICES IN
CONNECTION WITH THE ISSUANCE OF THE CITY OF SAN BERNARDINO,
CALIFORNIA, SEWER REVENUE REFUNDING BONDS, ISSUE OF 1986
(REGIONAL WASTEWATER TREATMENT PLANT PROJECT)
3. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AMENDING RESOLUTION NO. 83-93, AS
AMENDED, AND AUTHORIZING THE ISSUANCE OF CITY OF SAN BERNARDINO,
CALIFORNIA, SEWER REVENUE REFUNDING BONDS, ISSUE OF 1986
(REGIONAL WASTEWATER TREATMENT PLANT PROJECT), OF SAID CITY AND
PROVIDING THE TERMS AND CONDITIONS FOR THE ISSUANCE OF SAID
REFUNDING BONDS
1484S
CI1G OF SAN BERNARDH':'1 - REQUEG FOR COUNCIL ACTON
STAFF REPORT
The City Staff has presented to you for your consideration three
resolutions with regard to the sale and issuance of the City of
San Bernardino, California, Sewer Revenue Refunding Bonds, Issue of 1986
(Regional Wastewater Treatment Plant Project) (the "Bonds") by the City
of San Bernardino for the purpose of paying in full the City of
San Bernardino, Renewal Sewer Revenue Refunding Bond Anticipation Notes,
Issue of 1984 (the "1984 Notes"). The three resolutions are the actions
that will be required at this time of the City Council in connection with
the authorization for the issuance of the Bonds in an aggregate principal
amount equal to $2,600,000 for such refunding. The principal amount of
the Bonds has been determined to take into account the amount necessary
to meet the payment of the 1984 Notes on their maturity date, being
March 15, 1986.
The first resolution entitled "Resolution of the Hayor and
Common Council of the City of San Bernardino, California, Approving and
Accepting a Proposal to Provide Bond Counsel, Consul ting and
Underwriting Services in Connection With the Issuance of the City of
San Bernardino, California. Sewer Revenue Refunding Bonds, Issue of 1986
(Regional Wastewater Treatment Plant Project)" appoints the law firm of
Sabo & Gondek as Bond Counsel in connection with this issuance and also
approves Miller & Schroeder Financial, Inc., as Financial Consultant to
the City in connection with the issuance of the Bonds.
The second resolution entitled "Resolution of the ~Iayor and
Common Council of the City of San Bernardino Providing for the Sale of
City of San Bernardino, California, Sewer Revenue Refunding Bonds, Issue
75-0264
cr:,v OF SAN BERNARD[)O - REQUOT FOR COUNCIL ACSON
STAFF REPORT
of 1986 (Regional Wastewate" T"eatment Plant hoject)" is the Resolution
of Sale ....hich authorizes the sale of the Bonds and the invitation for
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bids fo" the pu"chase of the Bonds, consents to the Financial Consultant
acting as unde"write", o"de"s the publication of the Notice Inviting Bids
and the Notice of Intention to Sell Bonds, autho"izes and di"ects the
Financial Consultant to dist"ibute an Official Statement in the fo"m as
submitted to the City and gene"ally authorizes and di"ects eithH the
Financial Consultant and/or Bond Counsel to open the bids, to "eceive and
"eco"d "eceipt of all bids and to p"esent the bids fo" the sale of the
Bonds and any othe" necessa"y documentation "equi"ed fo" the "efunding to
the Mayo" and Common Council.
The Bond sale date has been set fo"
Ma"ch 6, 1986, to enab le the Ci ty to obtain the bes t inte"es t "ates and
the most bids possible. The te"ms and conditions of the sale of the
Bonds a"e set fo"th in the Notice Inviting Bids and are simila" to othe"
publicly sold bonds of the City and the Redevelopment Agency.
The final "esolution entitled "Resolution of the ~Iayo" and
Common Council of the City of San Berna"dino, Califo"nia, Amending
Resolution No. 83-93, As Amended, and Authorizing the Issuance of City of
San Bema"dino, Califomia, Sewe" Revenue Refunding Bonds, Issue of 1986,
of said City and P"oviding the Te"ms and Conditions fo" the Issuance of
Said Refunding Bonds" is the Resolution of Issuance which amends
Resolution No. 83-93 of the ~layo" and Common Council .adopted on ~Ia"ch 24,
1983, as amended by Resolution Nos. 83-97 and 84-98 (collectively, the
"1983 Resolution") which, as initially adopted, authorized the issuance
of seWH "evenue "efunding bonds fo" the pu"pose of "efunding the
outstanding Se~'e" Revenue Bonds, Election 1957, Series 1, 2 and 3 (the
75.0264
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CITe OF SAN BERNARDU:') - REQUEO FOR COUNCIL ACT:;N
STAFF REPORT
"Refunded Bonds") and provides for the proposed terms and conditions of
the issuance of the Boilds. The original proceedings for the sale of
sewer revenue refunding bonds were initiated in 1983 but after receipt of
bids in 1983 and upon consideration of certain circumstances then
occurring in the municipal bond market, the ~layor and Common Council
rejected the bids received for the refunding bonds. Since the refunding
of the Refunded Bonds was required to take place on April I, 1983, the
Mayor and Common Council determined to proceed to issue revenue bond
anticipation notes (the "1983 Notes") to accomplish the refunding that
could not be accomplished under the 1983 Resolution and to pay certain
necessary maintenance and operation costs of the sewer system, and to
sell the refunding bonds at such later time as the municipal bond market
stabilized.
On ~Iarch 21, 1984, the ~layor and Common Council issued
certain renewal sewer revenue refunding notes for the payment of the 1983
Notes and further amended the 1983 Resolution pursuant to Resolution
No. 84-98. The Resolution of Issuance as submitted to you at this time,
by amending the 1983 Resolution, maintains the basic terms and conditions
for the issuance of refunding bonds as set forth in the 1983 Resolution
and the effective date of the 1983 Resolution, being March 24, 1983, but
incorporates necessary technical modifications required at this time.
The issuance of the Bonds is structured so that the 1984 Notes
will be paid in full from the proceeds of the sale of the Bonds on
March 15, 1986, which is the maturi ty date of the 1984 Notes. It is
proposed that the Bonds will be issued in a prIncipal amount equal to
$2,600,000, dated as of March I, 1986, bearing interest at the rates per
annum to be bid by the successful bidder and maturing on March 1 of each
year of maturity through and including March I, 2001.
75-0264
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cn:' OF SAN BERNARDIC:) - REQUE=:T FOR 'COUNCIL ACT:i)N
STAFF REPORT
It is proposed tha t the Bonds wi 11 be issued on Narch 14, 1986,
so that it will then be possible to retire the 1984 Notes on their
maturity date. This requires that the Bonds be issued in a relatively
short period of time after the bids have been received and the Bonds have
been awarded.
The Financial Consultant and Bond Counsel have proposed that the
Bonds be ra ted by ei ther Standard & Poor' s Corpora t ion or :loody' s
Investor Services to assure the City of the lowest possible interest
rate, The Financial Consultant and Bond Counsel will be further pursuing
the obtaining of the necessary rating in connection I'ith this financing
so as to produce the lowest financing cost possible to the City and upon
the most advantageous terms to the City. Additionally, because of the
pending federal tax legislation which would restrict most other types of
municipal bonds, there are virtually no new issues coming to market at
this time. The Bonds as proposed to be issued are not affected by the
pending federal tax legislation.
Staff Recommendation
Staff recommends approval of the attached resolutions which
would permit the City to undertake the sale and issuance of the Bonds and
to retire the 1984 Notes.
75-0264
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02/06/86
RESOLUTION NO. :?t-3%
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO, CALIFORNIA, PROVIDING FOR
THE SALE OF CITY OF SAN BERNARDINO, CALIFORNIA,
SEWER REVENUE REFUNDING BONDS, ISSUE OF 1986
(REGIONAL WASTEWATER TREATMENT PLANT PROJECT)
WHEREAS, the Mayor and Common Council of the City of
San Bernardino, California ("City"), deem it necessary to issue the
City of San Bernardino, California, Sewer Revenue Refunding Bonds,
Issue of 1986 (Regional Wastewater Treatment Plant Project), for the
purpose of paying the full amount due and owing on the City of
San Bernardino, Sewer Revenue Refunding Bond Anticipation Notes,
Issue of 1984 (the "1984 Notes"), on their maturity date being
March 15, 1986.
NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO, CALIFORNIA, DO HEREBY FIND, RESOLVE, DETERMINE AND
ORDER AS FOLLOWS:
Section 1.
Sale Authorized.
The sale of Two Million
Six Hundred Thousand Dollars ($2,600,000) principal amount of CITY
OF SAN BERNARDINO, CALIFORNIA, SEWER REVENUE REFUNDING BONDS, ISSUE
OF 1986 (REGIONAL WASTEWATER TREATMENT PLANT PROJECT) (the "Bonds"),
in accordance with law, is hereby authorized.
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Notice Inviting Bids.
The invitation for
Section 2.
bids for the purchase of the Bonds is hereby author ized, such
invitation to be substantially in accordance with the Notice
Inviting Bids attached hereto as Exhibit A and by this reference
incorporated herein.
Said Notice Inviting Bids and the Bid Form
(including the t1emorandum of Net Interest Cost), attached hereto as
Exhibit B and by this reference incorporated herein, are hereby
approved together with such changes, modifications and amendments as
shall be approved by Bond Counsel and the Financial Consultant.
Section 3.
Publication of Notice Inviting Bids.
The
Notice Inviting Bids is hereby ordered to be published in The Sun, a
newspaper published and of general circulation in the City of San
Bernardino, California, once, at least ten (10) days prior to the
date of sale as set forth in the Notice Inviting Bids.
Section 4.
Publication of
Intention to
Sell.
The
publication of The Notice of Intention to Sell Bonds in The Bond
Buyer, a financial publication generally circulated throughout the
State, is hereby approved to be published by at least one (1)
insertion at least fifteen (15) days prior to the date established
for the receipt of bids.
Said Notice of Intention to Sell Bonds is
attached hereto as Exhibit C and by this reference is incorporated
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herein.
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Section 5.
Terms and Conditions of Sale.
The terms and
conditions of the offering and the sale of the Bonds shall be as
specified in said Notice Inviting Bids.
Section 6.
Official Statement Authorized.
The
City
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hereby approves the draft preliminary Official Statement attached
hereto as Exhibit D and by this reference incorporated herein and
authorizes and directs Miller & Schroeder Financial, Inc. (the
"Financial Consultant"), 1n conjunction with the City Staff, the
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City Attorney and Bond Counsel, to distribute such preliminary
Official Statement to the prospective bidders on the Bonds and to
convert such preliminary Official Statement to the final Official
Statement upon the sale and delivery of the Bonds.
Section 7.
Furnishinq
of
Notice
Invitinq
Bids
and
Official Statement.
The City Clerk and the Financial Consultant are
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hereby authorized and directed to cause
to
be
furnished
to
prospective bidders a reasonable number of
copies of the Notice
Inviting Bids (including the Bid Form) and a
reasonable number of
copies of the Official Statement.
Section B.
Financial Consultant to Bid.
Pursuant to
Government Code Sections 53690 to 53692, inclusive, the Financial
Consultant has given the City notice that it intends to bid on the
Bonds, and the City hereby consents to the Financial Consultant
acting as underwriter at such sale.
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Section 9.
General
Authorization.
Financial
The
Consultant and/or Bond Counsel are hereby authorized and directed to
open the bids at the time and place specified in said Notice
Inviting Bids and to present the sale to the Mayor and Common
Counci 1 for consideration.
The Financial Consultant and/or Bond
Counsel are hereby authorized and directed to receive and record the
receipt of all bids made pursuant to said Notice Inviting Bids, to
cause said bids to be examined for compliance with said Notice
Inviting Bids, to cause computations to be made as to which bidder
has bid the lowest net interest cost to the City and to present such
bids to the Mayor and Common Council in addition to a report as to
the foregoing and any other matters deemed pertinent to the award of
the Bonds and the proceedings for the issuance thereof.
Pursuant to Government Code Section 5369l(c) (2), the City
hereby expressly consents to the submitting of a bid for the sale of
the Bonds as set forth in the Notice Inviting Bids by Miller &
Schroeder Financial, Inc., as the Financial Consultant to the City,
notwithstanding the financial advisory relationship of the Financial
Consultant to the City as was previously authorized and approved by
the City.
Section 10.
This Resolution shall take
Effective Date.
effect upon adoption.
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I HEREBY CERTIFY that the foregoing
adopted by the t1ayor ?n~ Common Counci 1
San Bernardino at a 11 aAI.1Y"l/~~~Q lVJJ-tf1/
held on the /.3 daYd of .
the following vote, to wit:
resolution
oft he
meeting
AYES:
Cou nc i 1 ~lembe r s
~
was duly
City of
thereof,
1986, by
NAYS:
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t"p,,,,,,,,.: {1)/M/(!tU 0;1{t1></~> cxflJ;;/~ ,
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ABSENT:
City Clerk
day of
The foregoing resolution is hereby approved this
, 1986.
Mayor of the City of
San Bernardino
Approved as to form:
City Attorney
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STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss.
CITY OF SAN BERNARDINO ')
I, SHAUNA CLARK, City Clerk in
San Bernardino, DO HEREBY CERTIFY that the
copy of San Bernardino City Resolution No.
true and correct copy of that now on file in
o
and for
foregoing
this office.
the
and
is
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City of
attached
a fu 11.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed
the official seal of the City of San Bernardino this day of
, 1986.
City Clerk
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02/06/86
EXHIBIT A
NOTICE INVITING BIDS
CITY Of SAN BERNARDINO
COUNTY Of SAN BERNARDINO, CALIfORNIA
AN AMOUNT EQUAL TO
$2,600,000
CITY Of SAN BERNARDINO, CALIfORNIA
SEWER REVENUE REfUNDING BONDS
ISSUE Of 1986
(REGIONAL WASTEWATER TREATMENT PLANT PROJECT)
NOTICE IS HEREBY GIVEN that sealed proposals for the
purchase of an aggregate principal amount equal to two million six
hundred thousand dollaIS ($2,600,000) of sewer revenue refunding
bonds of the City of San Bernardino, California (hereinafter
referred to as the "Ci ty"), wi 11 be received by the City up to the
time and on the date and at the place specified:
TIME:
March 6, 1986
11:00 A.M.
PLACE:
Security Pacific National Bank
333 South Beaudry Avenue, 24th floor
Conference Room C
Los Angeles, California 90017
OPENING Of BroS:
time and place, will be
Bond Counsel and will be
at its meeting to be held
The bids wi 11 be received a t the above
opened by the financial Consultant and/or
presented to the Mayor and Common Counci 1
later that day.
ISSUE: An aggregate principal amount equal to two million
six hundred thousand dollars ($2,600,000) designated the City of San
Bernardino, California, Sewer Revenue Refunding Bonds, Issue of 1986
(Regional Wastewater Treatment Plant Project) (the "Bonds"),
consisting of fully registered bonds, numbered from 1 upwards in the
denomination of five thousand dollars ($5,000) each or any integral
multiple thereof, dated as of March 1, 1986.
MATURITY:
following years:
The Bonds will mature on March 1 in each of the
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Year of 1'1 a t u r i t Y princi[lal
(March 1 ) Amount
1987 $100,000
1988 105,000
1989 115,000
1990 120,000
1991 130,000
1992 140,000
1993 150,000
1994 165,000
1995 175,000
1996 190,000
1997 205,000
1998 220,000
I, 1999 240,000
2000 260,000
2001 285,000
INTEREST: The Bonds wi 11 bear interest at a rate to be
fixed upon the sale thereof, but not to exceed twelve percent (12%)
per annum, payable commencing on September 1, 1986, and semiannua lly
thereafter on March 1 and September 1 in each year.
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PAYMENTS: The Bonds and the interest thereon and any
premiums upon the redemption thereof prior to maturity are payable
in lawful money of the United States of America at the principal
corporate trust office of the Trustee in Los Angeles, California,
except for the interest thereon which is payable by check or draft
mailed to the registered owner thereof by the Trustee for the City
in Los Angeles, California.
REGISTRATION: The Bonds are issued as fully registered
Bonds payable to the registered owner. Transfer of ownership of a
Bond or Bonds shall be made by exchanging the same for a new Bond or
Bonds. All of such exchanges shall be made in such manner and upon
such reasonable terms and condi t ions as may from time to time be
determined and prescribed by the City; provided, however, no such
exchange shall be made between the fifteenth (15th) day preceding
any interest payment date and such interest payment date. Such
exchanges shall be free of costs or charges to the person, firm or
corporation requesting such exchange, except for any tax or
governmental charge that may be imposed in connection therewith.
Each Bond issued pursuant to the Resolution shall be of a
denomination which is five thousand dollars ($5,000) or any integral
multiple thereof.
REDEMPTION: The Bonds are subject to redemption in whole
or in part as follows:
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Optional Redemption. Bonds maturing on or before i1arch 1,
1993, shall not be subject to redemption before their stated
maturity. Bonds maturing by their terms on or after March 1, 1994,
are subject to redemption in whole or in part, in inverse order of
maturity and by lot within a maturity, upon notice as provided in
the Resolution, at the option of the City, on any i-larch 1 or
September 1 on or after March 1, 1993, from any available source of
funds, at a redemption price equal to the principal amount thereof
to be redeemed together with accrued interest thereon to the
redemption date, plus a premium (expressed as a percentage of the
principal amount of Bonds to be redeemed) as follows:
Redemption Dates Redemption
(Dates Inclusive) Premium
March 1, 1993, and September 1, 1996 1.5%
March 1, 1994, and September 1, 1997 1.0%
March 1, 1995, and September 1, 1998 0.5%
March 1, 1996 and thereafter 0.0%
Notice of call and redemption shall be given as provided in
the Resolution.
PURPOSE OF ISSUE: The Bonds are to be issued by the City
under and pursuant to the City Charter and the Revenue Bond Law of
1941 (Chapter 6, Part 1, Division 2, Title 5 of the Government Code
of the State of California) for the purpose of paying upon their
maturity on March 1, 1986, any and all amounts due on the City of
San Bernardino, Sewer Revenue Refunding Bond Anticipation Notes,
Issue of 1984 (the "1984 Notes") all pursuant to a Resolution of
Issuance adopted by the City, as amended (the "Resolution"), to
which reference is made for further particulars _ The 1984 Notes
were an extension of the maturity date of the City of
San Bernardino, Sewer Revenue Refunding Bond Anticipation Notes,
Issue of 1983, which refunded the Sewer Revenue Bonds, Election
1957, Series 1, 2 and 3 in the initial aggregate principal amount of
$4,900,000 (collectively, the "Refunded Bonds").
SECURITY: The Bonds are payable both principal and
interest, from, and secured by, Net Revenues of the Enterprise
(which consist of the Gross Revenues of the Enterprise after
deducting therefrom the Necessary and Reasonable Maintenance and
Operation Costs of the Enterprise, all as defined in the
Resolution). The Enterprise is the entire sewer system (including
all buildings, systems, plants, works, facilities or undertakings
used for or useful in the collection, treatment or disposal of
sewage and the reclamation of effluent theref'rom) of the City as
such system existed in 1957, when the Refunded Bonds (as defined
above and in the Resolution) were authorized, together with all
improvements and extensions to said system later constructed or
acquired, including the improvements and extensions made with funds
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derived from the sale of the Refunded Bonds. The Bonds are special
obligations of the City of San Bernardino. The general fund of the
City of San Bernardino is not liable for the payment of the Bonds or
their interest, nor is the credit or taxing power of the City of
San Bernardino pledged for the payment of the Bonds or their
interest. The holders of the Bonds shall not compel the exercise of
the taxing power by the City of San Bernardino or the forfeiture of
any of its property. The principal of and interest on the Bonds and
any premiums upon the redemption thereof are not a debt of the City
of San Bernardino nor a legal or equitable pledge, charge, lien, or
encumbrance, upon any of its property, or upon any of its income,
receipts, or revenues, except the Net Revenues of the Enterprise
which are, under the terms of the Resolution providing for the
issuance of the Bonds and the Revenue Bond Law of 1941, pledged to
the payment of said Bonds and interest thereon.
TERMS OF SALE
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INTEREST RATE: The interest rate bid on the Bonds may not
exceed twelve percent (12%) per annum, payable commencing on
September 1, 1986, and semiannually thereafter on March 1 and
September 1 in each year, and the rate bid must be a multiple of
either one-eighth of one percent (1/8%) or one-twentieth of one
percent (1/20%). All Bonds of the same maturity must carry the same
interest rate as provided above, and bids providing for additional
or supplemental interest payment provisions will be rejected. The
rate bid for any maturity must be the same or higher than the rate
for the preceding maturity. No Bond may bear more than one interest
rate, and each Bond must bear interest at the rate specified in the
bid from its date to its fixed maturity date.
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AWARD: The Bonds shall be sold for cash only. All bids
must be for not less than all of the Bonds hereby offered for sale
and each bid shall state that the bidder offers accrued interest to
the date of delivery, the purchase price, Bonds which shall be
stated as a percentage which shall be equal to ninety-seven percent
(97%) of the principal amount of the Bonds hereby offered, and the
interest rate or rates shall be determined as specified herein, at
which the bidder offers to buy the Bonds. Each bidder shall state
in his bid the total net interest cost in dollars and the net
interest rate determined thereby, which shall be considered
informative only and not a part of the bid.
WINNING BIDDER: The Bonds will be awarded to the highest
responsible bidder considering the interest rate or rates specified
and the premium or discount offered, if any. The winning bid will
be determined by deducting the amount of the premium (if any) from,
or adding the amount of the discount (if any) to, the total amount
of interest which the City would be required to pay from the date of
the Bonds to the respective maturity dates thereof at the interest
rate or rates specified in the bid, and the award will be made on
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the basis of the lowest net interest cost to the City. IE two or
more bids provide the same lowest net interest cost, the City shall
determine by lot which bid shall be accepted, and such determination
shall be final. The purchaser must pay accrued interest from the
date of the Bonds to the date of delivery computed on a 360-day year
basis. The cost of printing the Bonds will be borne by the City.
RIGHT OF REJECTION: The City reserves
discretion, to reject any and all bids and,
prohibited by law, to '.,aive any irregularity or
bid.
the right, in
to the extent
informality in
its
not
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PR0l1PT AWARD: The City will take action a"larding the Bonds
or rejecting all bids not later than twenty-six (26) hours after the
time herein prescribed for the receipt of bids; provided that the
award may be made after the expiration of the specified time if the
bidder shall not have given to the City notice in writing of the
withdrawal of such bid.
CUSIP:
the Bonds.
CUSIP identification numbers shall be imprinted on
DELIVERY AND PAYMENT: Delivery of the Bonds will be made
to the successful bidder in Los Angeles, California, or at such
other place as may be agreed upon by the successful bidder and the
officer of the City making delivery. Payment for the Bonds must be
made in funds immediately available to the City in Los Angeles,
California.
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PROMPT DELIVERY; CANCELLATION FOR LATE DELIVERY: The Bonds
will be delivered to the successful bidder on or about March 14,
1986, and such prompt delivery time is of the essence of the
contract to be made hereunder for the sale of the Bonds. The City,
at its sole option, shall have the right to: (i) deliver the Bonds
in temporary form with the definitive Bonds to be delivered as soon
as such definitive Bonds can be made available, and/or (ii) delay
the delivery of the Bonds beyond said date; provided, however, that
the successful bidder shall have the right, at its option, to cancel
the contract of purchase if the City shall fail to execute the Bonds
and tender them for delivery in either temporary form or in
definitive form within thirty (30) days from the date herein fixed
fo r the recei pt 0 f bids, and in such event the success fu 1 bidder
shall be entitled to the return of the proceeds of the check
accompanying his bid.
FORM OF BID: Each bid, together with the bid check must be
in a sea led enve lope, addressed to the Ci ty'- wi th the enve lope and
bid clearly marked "Bid for an Aggregate principal Amount Equal to
$2,600,000 of the City of San Bernardino, California, Sewer Revenue
Refunding Bonds, Issue of 1986 (Regional Wastewater Treatment Plant
Project}". Each bid must be unconditional and in accordance with
the terms and conditions set forth herein, or permitted herein, and
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permitted herein, and must be submitted on, or in substantial
accordance with, bid forms provided by the City.
BID CHECK: A certified or cashier's check on a responsible
bank or trust company in the amount of fifty thousand dollars
($50,000), payable to the order of the City, must accompany each bid
as a guaranty that the bidder, if successful, wi 11 accept and pay
for the Bonds in accordance with the terms of their bid. The check
accompanying any accepted bid shall be cashed and the proceeds
thereof applied to the purchase price. If such bid is accepted but
not performed, unless such failure of performance shall be caused by
any act or omission of the City, the proceeds of the check
accompanyi ng any accepted bid sha 11 be reta i ned by the Ci ty. The
check accompanying each unaccepted bid will be returned promptly.
CHANGE IN TAX EXEMPT STATUS: At any time before the Bonds
are tendered for delivery, the successful bidder may disaffirm and
withdra<< the bid if the interest received by private holders from
bonds of the same type and character as the Bonds shall be declared
to be taxable income under present federal income tax laws, either
by a ruling of the Internal Revenue Service or by a decision of any
federal court, or shall be declared taxable by the terms of any
federal income tax law enacted subsequent to the date of this notice.
LEGAL OPINIONS: The opinion of the Bond Counsel firm of
Sabo & Gondek, a Professional Corporation, Los Angeles, California,
approving the validity of the Bonds and stating that interest on the
Bonds i's exempt from income taxes of the United States of America
under present federal income tax laws and such interest is also
exempt from personal income taxes of the State of California under
present State income tax laws, will be furnished the successful
bidder at or prior to the time of delivery of the Bonds at the
expense of the City. A copy of the opinion of Bond Counsel,
certified by an officer of the City by his or her facsimile
signature, will be printed on the back of each definitive Bond. No
charge will be made to the purchaser for such printing or
certification.
CLOSING DOCUMENTS: In addition to the opinion of Bond
Counsel referred to above, at the time of payment for and delivery
of the Bonds, the City will furnish the successful bidder the
following documents all to be dated as of the date of delivery:
I..
1. Arbitrage Certificate - A certificate of a responsible
officer of the City certifying that, on the basis of the facts,
estimates and circumstances in effect at the time of delivery of the
Bonds, it is not expected that the proceeds 'of the Bonds will be
used in a manner that will cause the Bonds to be arbitrage bonds,
and in addition, there will be an opinion of Bond Counsel that the
Bonds are not arbitrage bonds under Section 103(c) the Internal
Revenue Code of 1954, as amended (the "Code").
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2. No Litigation Certificate - A certificate of
Attorney certifying that there is no direct litigation
against the City of San Bernardino affecting the validity
Bonds.
the City
pending
oft he
3. Signature Certificate - A certificate of the Mayor and
City Clerk of the City indicating that they have signed the Bonds by
facsimile signature and that they were duly authorized to execute
the same.
4. Fiscal Agent's and City's Receipts - The receipts of
the Trustee and an authorized officer of the City showing that the
purchase price of the Bonds, including accrued interest to the date
of delivery, has been received by the City and the Trustee,
respectively, and the distribution of the funds to be made.
5. Certificate Concerning Official Statement A
certificate of an appropriate officer of the City to the effect that
to the best of such officer's knowledge and belief, and after
reasonable investigation, (a) neither the Official Statement nor any
amendment or supplement thereto contains any untrue statement of a
material fact or omits to state any material fact necessary to make
the statements therein, in light of the circumstances in which they
were made, not misleading; (b) since the date of the Official
Statement, no event has occurred which should have been set forth in
an amendment or supplement to the Official Statement which has not
been set forth in such an amendment or supplement; and (c) there has
not been any material adverse change in the operations or financial
affairs of the City since the date of the Official Statement.
6. Opinion of the City Attorney - An opinion of the City
Attorney that the formation and certain subsequent procedures of the
City (eXClusive of the issuance and sale of the Bonds) have been
taken in accordance with all applicable laws.
OFFICIAL STATEMENT: The City will furnish to the
successful bidder, at no charge, such number of copies of the
Official Statement as they may reasonably request (but not to exceed
500) for this issue for use in connection with any resale of the
Bonds.
INFORMATION AVAILABLE: Requests for copies of the
Resolution and the Official Statement pertaining to the Bonds, or
for other information concerning the City, should be addressed to
the Financial Consultant to the City: Miller & Schroeder Financial,
Inc., 505 Lomas Santa Fe, Suite 100, Solana Beach, California
92075. Telephone (619) 481-5894.
GIVEN by order of the Mayor and Common Council of the City
of San Bernardino adopted on February 13, 1986.
/s/Shauna Clark
City Clerk of the City San Bernardino
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EXHIBIT B
BID
FOR THE PURCHASE OF $2,600,000'
CITY OF SAN BERNARDINO, CALIFORNIA
SEWER REVENUE REFUNDING BONDS, ISSUE OF 1986
(REGIONAL WASTEWATER TREATMENT PLANT PROJECT)
March 6, 1986
City of San Bernardino
City Hall
300 North "D" Street
San Bernardino, California 92418
On behalf of a group which we have formed, consisting of
and pursuant to the Notice Inviting Bids hereinafter mentioned, we
offer to purchase $2,600,000 aggregate principal amount, all or
none, of the Bonds designated as the City of San Bernardino,
California, Sewer Revenue Refunding Bonds, Issue of 1986 (Regional
Wastewater Treatment Plant Project)" particularly described in the
Notice Inviting Bids, of the maturities and interest rate or rates
set forth below:
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Maturity Date
r4a rch 1
Principal
Amount
Interest
Rate
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
$100,000
105,000
115,000
120,000
130,000
140,000
150,000
165,000
175,000
190,000
205,000
220,000
240,000
260,000
285,000
%
o
.,
o
.,
o
.,
o
.,
%
o
'0
%
o
'0
%
o
.,
o
'0
%
%
o
'0
and to pay therefor the aggregate sum of $ ( 11 plus
accrued interest on such Bonds to the date of delivery thereof.
This bid is made subject to all the terms and conditions of
the Notice Inviting Bids heretofore published, all of which terms
and conditions are made a part hereof as fully as though set forth
in full in this bid.
'As specified in the Notice Inviting Bids, this bid is
subject to acceptance not later than twenty-six (26) hours after the
expiration of the time for the receipt of bids, and the opinion of
the Bond Counsel firm of Sabo & Gondek, a Professional Corporation,
Los Angeles, California, approving the validity of the Bonds will be
furnished us (if we are the successful bidder) at the time of
delivery of the Bonds at the expense of the City.
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There is enclosed herewith a certified/cashier's check in
the amount of fifty thousand dollars ($50,000), payable to the order
of the City.
(I) $2,600,000 plus premium or less discount, if any (discount not
to exceed three percent (3%))
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There is submitted here'"ith a Memorandum of Interest Cost
(which shall not constitute a part of this bid) stating the total
net interest cost in dollars on the Bonds during the life of the
issue under this bid, the net interest rate determined thereby.
Respectfully submitted,
Name
(Account Manager)
By:
Address:
City:
State:
Telephone:
Memorandum of Net Interest Cost
The total net interest cost
the issue under the above bid is
interest rate determined thereby is
on
$
the Bonds during the life of
and the net
'l,
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EXHIBIT C
NOTICE OF INTENTION TO SELL BONDS
An Amount Not to Exceed
$2,600,000
CITY OF SAN BERNARDINO, CALIFORNIA
SEWER REVENUE REFUNDING BONDS
ISSUE OF 1986
(REGIONAL WASTEWATER TREATMENT PLANT PROJECT)
The City of San Bernardino, California (the "City") intends
to receive sealed bids for the above-referenced City of
San Bernardino, California, Sewer Revenue Refunding Bonds, Issue of
1986 (Regional \'iastewater TIeatment Plant project), in an aggregate
principal amount equal to $2,600,000 (the "Bonds"), until 11:00 a.m.
on Thursday, March 6, 1986, at the offices of Security Pacific
National Bank, 333 South Beaudry Avenue, 24th Floor, Conference Room
C, Los Angeles, California 90017. The Bonds in an aggregate
principal amount equal to $2,600,000 shall be dated as of March 1,
1986, and shall be part serial Bonds maturing on March 1, 1987, to
March 1, 2001, inclusive, shall bear an interest rate or rates not
to exceed twelve percent (12%) per annum payable on each March 1 and
September 1, commencing on September 1, 1986, and shall be offered
for sale at a price equal to not less than ninety-seven percent
(97%) of the principal amount thereof.
Copies of the Not ice Invi t ing Bids, together wi th the Bid
Form and copies of the Official Statement to be issued in connection
with the sale of the Bonds, may be obtained from either the City or
the Financial Consultant to the City, Miller & Schroeder Financial,
Inc., P.O. Box 946, Solana Beach, California 92075-0819.
Dated: February 13, 1986
/s/Shauna Clark
City Clerk of the City of San Bernardino
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Ralings: ~'OOd~~~:: ;;>
(See "Ratings" herein
In the opinion of Bond Counsel. under existinR statutes. reKulations~
rulin~s and iudicial decisions. interest on the ~otes is exempt from present
federal income taxes and from personal income taxes imposed by the State of
California.
52,600,000
CITY OF SAN BERNARDrNO, CALIFORNIA
SEWER REVENUE REFUNDrNG BONDS
ISSUE OF 1986
(Regional Wastewater Treatment Plant Project>
Dated: March 1. 1986
Due: ~arch 1. as shown below
The Bonds are issued under the State of California Revenue Bond Law of
1941 and in conformance with the Charter of the City of San Bernardino. Bond
proceeds will be used in part to refund all of the City's outstanding Sewer
Revenue Refunding Bond Anticipation Notes. Issue of 1984, which mature on
March 15 t 1986.
The Bonds are payable as to principal and interest from the Net Revenues
of the Enterprise, (which consist of the Gross Revenues of the Enterprise
after deducting therefrom the necessary and reasonable maintenance and
operating costs of the Enterprise). The Bonds will not be payable from nor
secured by any revenues, moneys or assets of the City of San Bernardino other
than such Net Revenues. Neither the faith and credit nor the taxing power of
the City of San Bernardino is pledged for the payment of the principal of, and
interest on the Bonds.
The Bonds are issued as fully registered Bonds in denominations of $5,000
each, or any integral multiple of $5,000. The principal on the Bonds and the
interest due at maturity are payable at the corporate trust office of Security
Pacific National Bank, the Fiscal Agent, in the City of Los Angeles,
California. Interest due on on the Bonds will be payable by check, mailed to
each registered owner.
The Bonds may be called before maturity on any interest payment date at
the principal amount thereof on or after March I, 1993, plus accrued interest
to the redemption date, plus a premium as described herein.
The Bonds are dated March I, 1986, bear interest payable semiannually on
March 1 and September 1, commencing September t, 1986, at the following rates
per annum and mature on each March I, as follows:
MATURITY SCHEDULE
Year of
Maturitv
t987
1988
1989
t990
199t
1991
1993
1994
Principal
Amount
$100,000
105,000
115,000
120,000
130,000
t40,OOO
150,000
165,000
Interest
Rate
t
Yield
-X
Year of
Maturitv
1995
1996
1997
1998
1999
2000
2001
Principal
Amount
$175,000
190,000
205,000
220,000
240,000
260,000
285,000
Interest
Rate
t
Yield
-X
The Bonds are offered when, as, and if issued, subject to the unqualified
opinion of Saba & Gondek, A Professional Corporation, Los Angeles, California,
Bond Counsel, approving the validity of the B9nds and stating that interest on
the Bonds is exempt from present federal income taxes and from California
personal income taxes under existing statutes, regulations and court
decisions. It is anticipated that the Bonds will be available for delivery in
definitive form on March 14, 1986 in Los Angeles, California.
The date of this Official Statement is March 1986
c
7his Official Statement does not constitute an offerin5 of any s~curity
other than th,.~onds specifically ofl~red hereby and such offering is made o,~
solely by mea,-,~f this Official Stal .Jot. ~o dealer, broker, salesp~rson '-'
other person has been authorized by the City to given any inforIT~tion or to
make any representations other than those contained in this Official Statement
and. if given or made, such other information or representations must be
relied upon as having been authorized. This Official Statement does not
constitute an offer by any person to sell or the solicitation by any person of
an offer to buy. and there shall be no sale of the Bonds by any person, in any
jurisdiction in which it is unlawful for that person to make such offer.
solicitation or sale.
The information set forth herein has been obtained from the City of San
Bernardino and other sources which are believed to be reliable, but that
information is not guaranteed as to accuracy or completeness. The information
and expressions of opinion herein are subject to change without notice, and
neither the delivery of this Official Statement nor any sale made hereunder
shall. under any circumstances, create any implication that there has been no
change since the date hereof in the matters which are material to the full and
punctual payment of debt service on the Bonds.
TABLE OF CONTENTS
INTRODUCTION
SOURCES AND APPLICATION OF FUNOS
THE BONDS
Purpose of Issue
Description.
Registration
REDEMPTION PROVISIONS
Notice of Redemption; Effect
SECURITY FOR THE BONDS
THE RESOLUTION
Funds and Accounts
Disposition of Bond Proceeds
Sewer Fund
Maintenance and Operation Account
Bond Service Fund
Reserve Fund
Surplus
Deposit and Investment of Moneys in Funds
Covenants
Additional Bonds
Amendment
Events of Default
Acceleration
THE ENTERPRISE
Governmental Structure
Operational History
Expansion of Wastewater Treatment Plant
Financial Information
Operating Rates and Charges
Sewer Utility Expenses
Revenue Coverage
Public Safety Authority
CONCLUDINC INFORMATION
Financial Consultant
Underwriting
Legal Opinion
Tax Exempt Status
No Litigation
Ratings
Miscellaneous
SUPPLEMENTAL INFO~~TION
Appendix A - Municipal Water Department 1984-85 Financial Report
Pal1:e
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2
2
2
2
3
3
3
4
4
5
5
6
6
6
7
7
7
9
13
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20
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22
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23
24
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25
25
25
25
26
27
IN CONNECTION WiTH THIS OFFERING, THE UNDERWRITERS MA Y OVERALLOT OR
EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF
THE BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE
OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAYBE DISCONTINUED AT
ANY TIME.
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CITY OF_N BERNARD~'10
SAN BERNARDL....COUNTY. CALIFORNIA
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Mayor and Common Cowlcil
Evlyn ~ilcox. ~ayor
Esther Estrada
Dan Frazier
Ralph Hernandez
Stephen C. :-1arks
Gordon Quiel
Jack Re i 11y
Jack Strickler
City Staff
John Matzer, City Administrator
Craig A. Graves. City Treasurer
Shauna Clark. City CLerk
Ralph H. Prince, City Attorney
Board of Water Commissioners
Margaret H. Chandler, President
Robert Bivens
Emil ia Gare ia
James H. Urata
Harold W. Willis
Staff
Herbert B. Wessel, General Manager
Bernard C. Kersey, Administration & finance
Bond Counsel
Saba &: Gondek
A Professional Corporation
Los Angeles, California
Fiscal Agent
Security Pacific National Bank
Los Angeles, California
Financial Consultant
Miller &: Schroeder Financial, Inc.
Solana Beach. California
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Official Statement
$2,600,000
CITY OF SAN BERNARDINO
SEWER REVENUE REFUNDING BONDS
ISSUE OF 1986
(Regional Wastewater Treatment Plant Project)
INTRODUCTION
This Official Statement, including the cover page and appendix hereto, is
provided by the City of San Bernardino, California (the "City") to furnish
information in connection with the issuance of $2,600,000 aggregate principal
amount of the City's Sewer Revenue Refunding Bonds, Issue of 1986 (Regional
Wastewater Treatment Plant Project) (the "Bonds").
The proceeds of the Bonds will be used, together with certain available
monies, to pay at maturity, March IS, 1986 all outstanding Sewer Revenue
Refunding Bond Anticipation Notes, Issue of 1984 (the "Notes"), to establish a
Reserve Fund equal to maximum annual debt service for the Bonds and to pay
costs of issuance for the Bonds.
The Bonds are issued pursuant to the Revenue Bond Law of 1941 (the "Law")
of the State of California (the "State") and the charter of the City (the
"Charter"). The Resolution of Issuance, providing for issuance of the Bonds,
adopted on February . 1986 (the "Resolution"), incorporates and amends
Resolution No. 83-93 (providing for the issuance of the Notes), adopted March
24, 1983.
The enterprise is the entire sewer system including all buildings, plants
and facilities used in the collection of sewage within certain areas of the
City, and the treatment and disposal of sewage and reclamation of effluent in
the City, the East Valley Water District and the Loma Linda Sanitation
District (the "Enterprise"). The Enterprise is governed by the five member
Board of Water Commissioners who are each appointed to staggered six year
terms by the Mayor.
The City is a chartered city, located at the base of the San Bernardino
Mountains approximately 58 miles east of the City of Los Angeles. The City is
a retail distribution center for the inland areas of Southern California. The
City is the county seat of San Bernardino County, the largest county in land
area in the continental United States. The City has an estimated 1986
population of 134,700.
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SOURCES AND APPLICATION OF FUNDS
The proceeds of the sale of the Bonds will be paid to the Fiscal Agent and
will be deposited and expended by the Fiscal Agent as hereinafter set forth.
Sources and Application of Funds
Sources of Funds
Principal Amount of Bonds
Less: Bond Discount (1)
Plus: Amounts from the Fiscal Agent
Plus: Amounts from Enterprise
Total Available Funds
$2,600,000
( )
$
Application of Funds
Payment of Notes
Reserve Fund (2)
Costs of Issuance (3)
Total Application of Funds
$
$
(1) Estimated at 3% of the Bonds.
(2) Estimated maximum annual debt service on the Bonds.
(3) Includes bond counsel, financial consultant and fiscal agent fees, costs
of printing, rating and other miscellaneous items.
THE BONDS
Purpose of Issue
The Bonds are to be issued by the City under and pursuant to the Charter
and the Law for the purpose of refunding the City's $2,600,000 Sewer Revenue
Refunding Bond Anticipation Notes, Issue of 1984 (the "Notes").
Description
The Bonds are dated March I, 1986, and are issued in denominations of
$5,000 each, or any whole multiples thereof, as fully registered Bonds.
Principal is payable on each March I, as shown on the cover page of this
Official Statement. Interest is payable semiannually on March 1 and September
I, commencing on September 1, 1986, at the corporate trust office of Security
Pacific National Bank, Los Angeles, California (the "Fiscal Agent").
Principal and interest due on the Bonds will be paid by the Fiscal Agent by
check or draft mailed to the registered owner.
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RegistratioD
The Bonds are issued as non-negotiable fully registered Bonds payable to
the registered owner ("Fully Registered Bonds"). A fully registered bond or
fully registered bonds may be exchanged for a fully registered bond or fully
registered bonds. Transfer of ownership of a fully registered bond or fully
registered bonds will be made by exchanging the same for a new fully
registered bond or fully registered bonds. All of such exchanges shall be
made in such manner and upon such reasonable terms and conditions as may from
time to time be determined and prescribed by the City; provided, however, no
such exchange shall be made between the fifteenth (15th) day preceeding any
interest payment date and such interest payment date. Such exchanges shall be
free of any costs or charges to the person, firm or corporation requesting
such exchange, except for any tax or governmental charge that may be imposed
in connection therewith. Each fully registered bond issued pursuant to the
Resolution will be of a denomination of five thousand dollars ($5,000) or any
whole multiple thereof.
REDEMPTION PROVISIONS
The Bonds maturing on or before March 1, 1993 are not subject to call and
redemption prior to maturity. The Bonds maturing on or after March 1, 1994,
are subject to call and redemption, as a whole or in part, at the option of
the City, on any interest payment date on or after March 1, 1993 at a
redemption price equal to the principal amount thereof plus a premium of the
principal amount if redeemed on the following redemption dates:
Redemption Dates
March 1, 1993 and September 1, 1993
March 1, 1994 and September 1, 1994
March 1, 1995 and September 1, 1995
March 1, 1996 and thereafter
Redemption Premium
1.51-
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0.5
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Notice of RedemptioD; Effect
If the City elects to redeem the Bonds, the Fiscal Agent must give notice
of the redemption of Bonds to the Bondholders. Such notice shall specify (a)
the serial numbers and maturity date or dates of the Bonds selected for
redemption, (b) the date of redemption, (c) the place or places where the
redemption will be made and, (d) in the case of Bonds to be redeemed only in
part, the portion of such Bonds which are to be redeemed. Such notice must
further state that on the specified redemption date there will become due and
payable 'on each Bond to be redeemed, the principal amount thereof and premium,
if any, and that from and after the redemption date, interest with respect
thereto will cease to accrue and be payable.
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Notice of such redemption must be given, by mail, postage prepaid, to the
Bondholders designated for redemption at their addresses appearing on the Bond
Register, at least 30 days prior to the redemption date. The actual receipt
by the Holder of any Bond of notice of redemption shall not be a condition
precedent to redemption, and failure to receive such notice or any defects in
such notice shall not affect the validity of the proceedings for the
redemption of Bonds or the cessation of interest on the date fixed for
redemption.
If less than all of the Bonds are to be redeemed, Bonds shall be redeemed
in inverse order of maturity and within a maturity by lot.
SECURITY FOR THE BONDS
The Bonds are payable from, and secured by, Net Revenues of the Enterprise
(Gross Revenues of the Enterprise after deducting the necessary and reasonable
maintenance and operation costs of the Enterprise). Gross Revenues of the
Enterprise consist of all charges, except for certain connections fees,
received for sewer service and all other income and receipts derived or
arising from the operation of the Enterprise including charges, fees, rentals,
income and receipts from the operation of a sewage collection system within
the City and from sewage treatment provided to certain areas of the City, the
East Valley Water District and the Loma Linfa Sanitation District.
-'
The Bonds are special obligations of the City of San Bernardino. The
general fund of the City of San Bernardino is not liable for the payment of
the Bonds, nor is the credit or taxing power of the City of San Bernardino
pledged for the payment of the Bonds. The principal of and interest on the
Bonds and any premiums upon the redemption thereof are not a debt of the City
of San Bernardino nor a legal or equitable pledge, charge, lien, or
encumbrance, upon any of its property, or upon any of its income, receipts, or
revenues, except the Net Revenues.
THE RESOLUTION
I':
The Resolutions provide for the creation of special funds for the
administration and use of Bond proceeds and the Net Revenues of the
Enterprise. As stated above, Resolution No. 83-93 adopted on March 24, 1983,
as amended on February 13, 1985, provides for the issuance of the Bonds. The
following brief summary does not purport to be a complete statement of the
Resolutions' provisions.
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Funds and Accounts
The Resolution creates the following funds to be held and administered by
the Fiscal Agent:
1-
2,
3.
4.
5.
Costs of Issuance Fund;
Bond Service Fund;
Reserve Fund;
Proceeds Fund, and included therein the Escrow Account; and
Redempt ion Fund
The Resolution continues in the City Treasury of the City in the Sewer
Fund the following account:
1. Sewer Maintenance and Operation Account (herein sometimes called
IIM&O Account").
So long as any of the Bonds, or the interest thereon remains outstanding
and unpaid (or until the Bonds are defeased), the moneys in the foregoing
Funds and Accounts shall be used for no purpose other than those required or
permitted by the Resolution.
Disposition of Bond Proceeds
For the purposes of ensuring the application of the proceeds received from
the sale of the Bonds to the purposes set forth in the Resolution for which
the Bonds are being issued, the proceeds of the sale of the Bonds will be paid
to the Fiscal Agent and will be deposited and expended by the Fiscal Agent as
follows:
Costs of Issuance Fund: Upon the delivery of the Bonds, the Fiscal
Agent will deposit an amount from the City into the Costs of Issuance Fund
as set forth in a certificate duly executed by an authorized City
representative. All costs of issuance will be paid from the Costs of
Issuance Fund to those persons entitled thereto or to the appropriate City
fund to be reimbursed therefor. Any remaining balance in the Costs of
Issuance Fund after all of the foregoing payments have been made will be
transferred to the Bond Service Fund.
Bond Service Fund: Upon delivery of the Bonds, the Fiscal Agent will
deposit from such proceeds into the Bond Service Fund an amount equal to
the accrued interest on the Bonds from their date to the date of delivery,
and any premium.
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Reserve Fund: Upon delivery of the Bonds, the Fiscal Agent will
deposit in the Reserve Fund an amount equal to maximum annual debt service
on the Bonds.
Proceeds Fund: Concurrently with the delivery of the Bonds, the
Fiscal Agent will deposit in the redemption fund created for the ~otes,
the balance of the proceeds of the sale of the Bonds.
Sewer Fund
The Gross Revenues of the Enterprise will be placed in the Sewer Fund, and
payments from the Sewer Fund will be made only as provided by the Charter and
the Resolution.
Maintenance and Operation Account
Monthly sums sufficient for the Necessary and Reasonable Maintenance and
Operation Costs of the Enterprise and a reasonably required reserve and
replacement fund not to exceed three (3) months of such estimated costs will
be apportioned from the Gross Revenues of the Enterprise, and transferred by
the Treasurer within the Sewer Fund to the M&O Account. Thereafter, from the
Net Revenues of the Enterprise, the Fiscal Agent will be paid at least one
sixth (1/6th) of the interest which will be due and payable on the outstanding
Bonds.
Bond Service Fund
i'
Upon delivery of the Bonds to the purchasers thereof, any accrued interest
paid by said purchasers shall be placed in the Bond Service Fund. On the date
of the Bonds and thereafter, so long as any of the Bonds are outstanding, on
the first day of each calendar month, there shall be set aside and transferred
from the amounts paid to the Fiscal Agent from the Net Revenues of the
Enterprise as set forth above to the Bond Service Fund at least one-sixth
(1/6th) if the interest which will become due and payable on outstanding Bonds
within the next ensuing six (6) months and also at least one-twelfth (1/12th)
of the principal amount of such Bonds and any Parity Bonds which will mature
and be payable within the next ensuing twelve (12) months so that at least the
full amount required to pay, as it becomes due, the interest on such Bonds abd
Parity Bonds and any maturity or installment of principal of such Bonds and
Parity Bonds will be set aside in the Bond Service Fund at lease one (1) month
prior to the date the installment of interest becomes due. At least one (1)
month prior to the due date of any installment of interest and/or principal on
Bonds, all sums required for the payment thereof must be in such Bond Service
Fund in cash. If, at the time, the moneys in the Bond Service Fund are
insufficient to make such payment, money sufficient for such payment shall be
transferred from the Reserve Fund to the Bond Service Fund. Any money
remaining in the Bond Service Fund after payment in full (including interest)
of the Bonds and Parity Bonds, if any, may be transferred to the Sewer Fund.
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Reserve Fund
From the proceeds of,the sale of the Bonds there shall be immediately
transferred in the Reserve Fund an amount equal to one (1) year's interest,
and thereafter there shall be maintained in the Reserve Fund said one year's
interest on the Bonds, which sum shall be increased as provided in the
Resolutions when the proceeds of the Refunding Bonds are used to retire or
defease the Bonds.
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Moneys in the Reserve Fund will be used solely for the purpose of paying
the interest on the Bonds in the event that the moneys in the Bond Service
Fund are insufficient therefor and for that purpose may be withdrawn and
transferred to the Bond Service Fund. No payment need be made into the
Reserve Fund so long as there will be in said Fund a sum at least equal to one
year's interest on the Bonds. Whenever moneys are withdrawn from the Reserve
Fund for the purposes provided in the Resolutions, the amount in the Reserve
Fund shall be restored to the amount required in the Resolutions by transfers
from Surplus. Any amount in the Reserve Fund in excess of the one year's
interest on the Bonds will be transferred to Surplus.
Surplus
After the monthly transfers required or permitted by the Resolutions for
the Maintenance and Operation Account, the Bond Service Fund and the Reserve
Fund have been made, any remaining balance of the amount of Net Revenues of
the Enterprise derived from the Sewer Fund shall be used for the restoration,
if necessary, of the Reserve Fund as provided in the Resolutions.
After the above transfers and uses have been made and all other covenants
of the City contained in the Resolution have been duly performed, any money
derived from the Net Revenues of the Enterprise (sometimes referred to as
"Surplus") shall be used to make the payments required under the Sewage
Treatment Plant Sublease, dated as of August 1, 1970 as amended as of November
1, 1973.
No moneys shall be otherwise paid or transferred therefrom unless all of
the requirements of the Resolution have been fully accomplished.
Deposit and Investment of Moneys in Funds
Subject to the provisions of the Resolution, prohibiting the use of Bond
proceeds in a manner which would cause the Bonds to be arbitrage bonds, all
moneys held by the Treasurer and/or the Fiscal Agent, except such moneys which
are at the time invested, shall be held in time or demand deposits in any
bank, trust company or other company or association authorized to accept
deposits of public funds (including the banking department of the Fiscal
Agent) and shall be secured as required by law.
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Moneys in the Sewer Fund and in the M&O Account may from time to time be
invested by the City Treasurer, and moneys in the other Funds and Accounts
held by the Fiscal Agent may, and, upon written request of the City, will, be
invested by the Fiscal Agent as permitted by law, subject to the following
restrictions:
(a) Moneys in the Sewer Fund and in the M&O Account thereof will be
invested only in obligations which will be their terms mature not later
than the date the City estimates the moneys represented by the particular
investment will be needed for withdrawal from such Fund or Account.
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(b) Moneys in the Bond Service Fund shall be invested only in
obligations which will by their terms mature on such dates as to ensure
that before each interest payment date there will be in such Fund, from
matured obligations and other moneys already in such Fund, cash equal to
the interest payable on such date, as may be recommended from time to time
by the opinion of an Independent Financial Consultant appointed by the
City.
(c) Moneys in the Reserve Fund will be invested only in securities
and investments as authorized by the law of the State of California as
directed by the City Treasurer, which will by their terms mature on such
date as to ensure that before each interest payment date there will be in
such Fund from matured obligations and other moneys already in such Fund,
cash equal to the interest payable on such date, as may be recommended
from time to time by the opinion of an Independent Financial Consultant
appointed by the City.
(d) Moneys in the Sewer Fund at "Surplus" may be invested in any
legally authorized investments in such manner as seems reasonably likely
at the time of investment to maximize the earnings thereon, all at the
discretion of the Treasurer.
Obligations purchased as an investment of moneys in any of said Account
and Funds will be deemed at all times to be a part of such Account or Funds
and the interest accruing thereon and any gain realized from such investment
shall be credited to such Account or Funds and any loss resulting from any
such authorized investment shall Be charged to such Account or Funds without
liability to the City of the officers and employees thereof or to the Fiscal
Agent. The City or the Fiscal Agent, as the case may be, will sell at the
best price obtainable or present for redemption any obligation so purchased
whenever it will be necessary to do so in order to provide moneys to meet any
payment or transfer from any Account or Fund as required by the Resolutions.
For the purpose of determining at any given time the balance in any such
Account or Funds, any such investment shall be valued at the face amount
thereof. Notwithstanding any other provision contained in the Resolution,
interest earnings on the amounts on deposit in the Reserve Fund, to the extent
not otherwise required to maintain the Reserve Fund at the level above stated,
will be considered Surplus under the terms of the Resolution.
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Covenants
So long as any of the Bonds and any Parity Bonds are outstanding, the City
covenants with the Bondholders as hereinafter set forth, under the express
provisions of the Resolutions and in accordance with the City Charter and the
Law (to be performed by the City or its proper officers, agent or employees),
which covenants are necessary, convenient and desirable to secure the Bonds
and tend to make them more marketable; provided, however, that said covenants
do not require the City to expend any funds other than the Gross Revenues of
the Enterprise and/or the Net Revenues of the Enterprise received or
receivable as the context may require:
Covenant 1. Punctual Payment. The City shall duly and punctually
payor cause to be paid the principal of and interest on every Bond and
Parity Bonds, if any, at the place and in the manner mentioned in the
Bonds in accordance with the Resolutions, and that the payments to be made
into the Bond Service Fund and Reserve Fund shall be made, all in strict
conformity with the terms of the Bonds and the Resolutions.
Covenant 2. Discharge Claims. In order to fully preserve and
protect the priority and security of the Bonds, the City shall pay from
the Sewer Fund and discharge all lawful claims for labor, materials and
supplies furnished for or in connection with the Enterprise. The City
shall also pay from the Sewer Fund all taxes and assessments or other
governmental charges lawfully levied or assessed upon the Enterprise.
Covenant 3. Accomplish Purpose. As soon as funds are available
there:or, the City shall commence the accomplishment of the purposes for
which the Bonds are issued and will continue the same to completion with
all practical dispatch and in an economical manner.
Covenant 4. Operate Enterprise in Efficient and Economical Manner.
The City will operate the Enterprise in an efficient and economical manner
and maintain and preserve the Enterprise in good repair and working order.
Covenant 5. Against Sale. The Enterprise will not be mortgaged or
otherwise encumbered, sold, Leased, pledged, any charge placed thereon or
disposed of as a whole or substantially as a whole unless such sale or
other disposition be so arranged as to provide for a continuance of
payments into the Sewer Fund sufficient in amount to permit payment
therefrom of the principal of and interest on and due open the redemption
thereof, of the Bonds and Parity Bonds, if any, which is required to be
made out of the Net Revenues of the Enterprise, and also to provide for
such payments into the Reserve Fund as are required under the terms of the
Resolutions. The Gross and/or Net Revenues of the Enterprise, or any
other funds pledged or otherwise made available to secure payment of the
principal of and interest on the Bonds and Parity Bonds, if any, will not
be mortgaged, encumbered, sold, leased, pledged, any charge placed
thereon, or disposed of or used except as authorized by the terms of the
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Resolutions. If any substantial part of the Enterprise is sold the
payment therefor will either be used for the acquisition and/or
construction of improvements and extensions of the Enterprise or will be
placed in the Bond Service Fund or the Redemption Fund and will be used to
pay outstanding Bonds in the manner provided in the Resolution.
Covenant 6. Insurance. The City will provide the following
insurance protection as provided in the Resolutions:
A. The City will procure and maintain insurance on the
Enterprise with responsible insurers in such amounts and against such
risks (including accident to or destruction of the Enterprise) as are
usually insurable in connection with similar enterprises, which such
insurance shall be in an amount at least sufficient to enable the
City to retire all outstanding Bonds.
B. The City will procure and maintain suitable and adequate
fidelity insurance or bonds.
C. The City will procure and obtain a policy of title
insurance from a recognized title insurance company insuring the City
for the full cost of the acquisition of any real property acquired
comprising any portion of the Enterprise, excluding any improvements
thereon.
D.
insurance
death, or
The City will procure and maintain public liability
covering claims against the City for bodily injury or
damage to property.
E. The City will procure and maintain workers' compensation
insurance against liability for compensation under the Workers'
Compensation Insurance and Safety Act of California.
Covenant 7. Records and Accounts. The City will keep proper books
of records and accounts of the Enterprise, separate from all other records
and accounts of the City, in which complete and correct entries will be
made of all transactions relating to the Enterprise. Said books will be
audited annually and will at all reasonable times be subject to the
inspection of not less than ten percent (10%) of the Bondholders or their
representatives authorized in writing.
The City will cause to be published annually, not more than one
hundred twenty (120) days after the close of each fiscal year a summary
statement showing the amount of Gross Revenues of the Enterprise, the Net
Revenues of the Enterprise and the amount of all other funds collected
which are required to be pledged or otherwise made 'available, if any, as
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security for payment of principal of and interest on the Bonds, the
disbursements from such Net Revenues of the Enterprise and other funds in
reasonable detail, and a,general statement of the financial and physical
condition of the Enterprise.
The City will furnish a copy of the summary statement to any
Bondholder upon request.
Covenant 8. No Free Service. Except to the extent that the City is
required under agreements and/or contracts existing on the effective date
of the Resolution, no service from the Enterprise will be furnished or
rendered to the United States of America, the State of California, any
municipal or public corporation (other than the City) or district or
public agency or any private corporation or person free, and, except to
the extent that the City is required under agreements and/or contracts
existing on the effective date of the Resolution, no such service shall be
rendered to the United States of America, the State of California, any
municipal or public corporation (other than the City) or district or any
private corporation or person at rates lower than those charged other
persons for similar service.
Covenant 9. Rates and Char~es. The City has covenanted that
pursuant to Section 134 of the Charter, it will levy and collect charges
for sewer service which will be at least sufficient to pay the following
amounts in the order set forth:
(a) The necessary and reasonable maintenance and operations
costs of the Enterprise;
(b) The interest on the Bonds as they become due and payable
and payments required to be made into the Reserve Fund for the Bonds;
(c) All payments required for compliance with the Resolutions;
(d) Any other payment or payments specifically authorized or
required by the Resolutions;
and the charges shall be so fixed that, during each Fiscal Year, after the
payment of item designated (a) of this covenant the Net Revenues of the
Enterprise available for the payment of the item designated (b) will be at
least 1.25 times the amount payable under said (b) and at least 1 times
the amounts payable under said (c) and (d) (this requirement to be
considered as a minimum and not as preventing the City from charging any
minimum amounts payable under items (c) and (d)).
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Covenant 10. Compliance with Conditions Precedent. Upon the date of
issue of the Bonds, all conditions, acts and things required by law or by
the Resolutions to exist, to have happened or to have been performed
precedent to or in the issuance of such Bonds will exist, have happened
and have been performed, and such Bonds will be within every limit
prescribed by law.
Covenant 11. Eminent Domain Proceeds. It all or any part of the
Enterprise will be taken by eminent domain proceedings, the net proceeds
realized by the City therefrom shall be deposited by the City with the
Treasurer in a special fund in trust and applied by the City to the cost
of acquiring or constructing or financing improvements to the Enterprise
if the income from such improvements will sufficiently offset the loss of
any Net Revenues so that the City's ability to meet its obligations under
the Resolutions will not be substantially impaired, if the City cannot
make such showing, then such net proceeds will be paid to the Fiscal Agent
for deposit in the Redemption Fund and applied pro rata to the redemption
or purchase of the Bonds outstanding.
If such eminent domain proceedings have had no effect, or at most a
relatively immaterial effect, upon the Net Revenues of the Enterprise and
the security of the Bonds the City will forthwith deposit such net
proceeds in the Sewer Fund.
Covenant 12. Power to Issue Bonds and Make Pled~es. The City is
duly authorized pursuant to the Charter and the Law to create and issue
the Bonds and to adopt the Resolutions and to pledge the Revenues, Funds
and Accounts and other moneys, securities, funds and property purported to
be pledged by the Resolutions in the manner and to the extent provided in
the Resolutions. The Bonds and the provisions of the Resolutions are and
will be valid and legally enforceable obligations Of the City in
accordance with their terms and the terms of the Resolutions. The City
will at all times, to the extent permitted by law, defend, preserve and
protect the pledge of the Revenues, Funds and Accounts and other moneys,
securities, funds and property pledged under the Resolutions and all the
rights of the Bondholders under the Resolutions against all claims and
demands of all persons whomsoever.
Covenant 13. Further Assurances. Whenever and so often as requested
so to do by the Treasurer or the Fiscal Agent, the City will promptly
execute and deliver or cause to be executed and delivered all such other
and further instruments, documents or assurances, and promptly do or cause
to be done all such other and further things, as may be necessary or
reasonably required in order to further and more fully vest in the
Treasurer, the Fiscal Agent and the Bondholders all rights, interest,
powers, benefits, privileges and advantages conferred or intended to be
conferred upon them by the Resolutions.
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Covenant 14. Unconditional Obli~ation. Except only as provided in
the Resolutions for alteration of the Bonds or the Resolutions, nothing in
the Resolutions or in ~he Bonds contained shall affect or impair the
obligation of the City, which is absolute and unconditional, to pay the
principal of and interest on the Bonds to the respective holders of the
Bonds and coupons at the respective dates of maturity, or upon prior
redemption, as provided, or affect or impair the right of action, which is
also absolute and unconditional, of such holders to institute suit to
enforce such payment by virtue of the contract embodied in the Bonds and
in the Law and the Resolutions.
Covenant 15. A~reement and Performance Thereof. The performance of
the duties prescribed in the Resolutions and in the Charter and the Law by
the City or its proper officers, agents or employees, is of the essence of
the City's contract with the Bondholders.
Covenant 16. Non-Arbitra~e. The City hereby covenants that it will
make no use of the proceeds of the Bonds at any time during the term
thereof which, if such use had been reasonably expected on the date of
issue of the Bonds, would have caused the Bonds to be arbitrage bonds
within the meaning of Section l03(c) of the Interest Revenue Code of 1954,
as amended, and any applicable regulations promulgated thereunder.
Additional Bonds
The Resolution permits the issuance of additional Parity Bonds, subject to
the following:
(1) The City must not be in default under the terms of the
Resolution.
(2) The Net Revenues for the latest fiscal year or the preceding
twelve-month period ending not more than 90 days prior to authorization of
the additional Parity Bonds or delivery of additional Parity Bonds must
have amounted to at least 1.25 times the Maximum Annual Debt Service in
any fiscal year on all debt to be outstanding immediately subsequent to
the delivery of such additional Parity Bonds, as shown by an audit
certificate or opinion of an independent certified public accountant.
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In computing Net Revenues, allowances may be made for increases in Net
Revenues from any improvements or extensions which have been made from moneys
from any source but which, during all or any part of the latest fiscal year or
last completed twelve month period, were not in service, and also for Net
Revenues from improvements or extensions to be made with the proceeds of such
additional Parity Bonds, all in an amount equal to 75.percent of the estimated
additional average annual net revenues to be derived from such improvements or
extensions for the first 36 month period in which such improvements or
extensions ate to be in operation. Also, in computing Net Revenues allowance
may be made for any increase in sewer service charges effective prior to the
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incurring of such additional indebtedness but which, during all or any part of
such fiscal year or last completed twelve month period, was not in effect, in
an amount equal to 75 percent of the amount by which the Net Revenues would
have been increased if such increase in charges had been in effect during the
whole of such fiscal year or last completed twelve month period.
If additional Parity Bonds are sold, there will be immediately placed out
of bond proceeds an amount which will increase the Reserve Account to an
amount equal to the Maximum Annual Debt Service on all outstanding Parity
Bonds. The Reserve Account balance can be reduced as the maximum total annual
requirement declines.
The Resolution also provides that refunding bonds may be issued by the
City.
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Amendment
From and after the sale and delivery of the Bonds, the Resolutions may not
be modified in any way which will impair, impede, or lessen the rights of the
Bondholders without the prior consent, written or given at a Bondholder's
meeting, of the holders of at least sixty-six and two-thirds percent (66 2/3%)
of the amount of the affected Bonds then outstanding. No modification or
amendment may extend the maturity of a Bond, change the monetary medium or
reduce the principal, interest thereon or reduce the percent of consenting
Bond ownership required for amendment without the express consent of the
holder of such Bond.
Supplemental resolutions may be adopted without the consent of the
Bondholders for the following purposes:
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(1) To add covenants or agreements or to surrender any right or
power conferred upon the City for the purpose of further securing the
payment of the Bonds;
(2) To cure any ambiguity, defect, or question contained in the
Resolutions, if considered by the City to be necessary or desirable and
consistent with the Resolutions and to not adversely affect the rights and
interests of the Bondholders;
(3) To confirm as further assurance any pledge under the subjection
to any lien, claim or pledge created or to be created by the provisions of
the Resolutions of the Revenues and Funds or of any other moneys,
securities or funds.
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Events of Default
One or more of the following events (herein called "Events of Default")
shall constitute an event of default:
(1) Principal. If default will be made in the due and punctual
payment of the principal of any Bond when and as the same shall become due
and payable, whether at maturity as therein expressed, by declaration, or
otherwise; or
(2) Interest. If default will be made in the due and punctual
payment of any installment of interest on any Bond when as such interest
installment shall become due and payable; or
(3) Covenants. If default will be made in the observation of any of
the covenants, agreements or conditions contained in the Resolutions, or
in the Bonds, and such default will have continued for a period of sixty
(60) days; or
(4) Bankruptcy. If the City will file a petition or answer seeking
reorganization or arrangement under the federal bankruptcy laws or other
applicable laws or statutes of the United States of America, or if a court
of competent jurisdiction shall approve a petition, filed with or without
the consent of the City, seeking reorganization under the federal
bankruptcy laws or any other applicable laws or statutes of the United
States of America, or if, under the federal bankruptcy laws or the
provisions of any other law for the relief or aid of debtors, any court of
competent jurisdiction shall assume custody or control of the City or of
the whole or any substantial part of its property.
Acceleration
In each and every Event of Default, the Fiscal Agent, or the holders of
not less than sixty-six and two-thirds percent (66 2/3%) in aggregate
principal amount of the Bonds at the time outstanding shall be entitled, upon
notice in writing to the City, to declare the principal of all of the Bonds
then outstanding hereunder and the interest accrued thereon to be due and
payable immediately, and upon any such declaration the same will become and
will be immediately due and payable, anything in the Resolutions or in the
Bonds contained to the contrary notwithstanding; provided, however, that no
such acceleration will be made in the case of a default on the payment of
principal and/or interest under (1) or (2) above if such default has been
cured within thirty (30) days of the date of default.
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Application of Funds - When acceleration has been declared under the
Resolutions, all of the Net Revenues of the Enterprise shall be applied by the
Fiscal Agent in the following order:
1. Costs and Expenses. To the payment of the costs and expenses of
the Bondholders in declaring such Event of Default, including reasonable
compensation to their agents, attorneys and counsel, and to the payment of
the costs and expenses of the Fiscal Agent in carrying out the provisions
of these remedies, including reasonable compensation to its agents,
attorneys and counsel;
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2. Interest on Undue Bonds. In case the principal of the Bonds
will not have become due and will not then be due and payable, to the
payment of the interest in default in the order of maturity of the
installments of such interest, with interest on the overdue installments
at the same rate, such payments to be made ratably to the persons entitled
thereto without discrimination or preference;
3. Principal and Interest on Due Bonds. In case the principal of
the Bonds will have become and will then be due and payable, to the
payment of the whole amount then owing and unpaid upon the Bonds for the
principal and interest with interest on the overdue principal and
installments of interest at the same rate; and
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4. Insufficient Funds. In case such moneys will be insufficient to
pay in full the whole amount so owing and unpaid upon the Bonds, then to
the payment of such principal and interest without preference or priority
of principal over interest, or of interest over principal, or of any
installment of interest over any other installment of interest, ratably to
the aggregate of such principal and interest then due.
Procedure for Application to Bonds - No application of funds to the Bonds
of this issue shall be made except upon presentation of the several Bonds, and
the stamping thereon of the payment, if only partially paid, or upon the
surrender thereof if fully paid.
Refundin~ Defaulted Bonds. The City may refund any defaulted Bond as to
which the maturity has been accelerated by the issuance of a new bond maturing
after the maturity of the last Bond issued hereunder, but otherwise on a
parity as to payment 'of interest with the Bonds issued hereunder, and with the
consent of the Holder thereof, exchange such Bonds for such matured Bond, or,
without his consent, issue and sell said refunding bond and pay said defaulted
Bond, and in such event such action shall be deemed to cure such default.
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THE ENTERPRISE
The Enterprise securing the Bonds has two main components, a collection
system serving the City which is operated by the City Department of Public
Services and a regional wastewater treatment plant which is operated by the
Municipal Water Department of the City serving the City and adjacent urban
areas in which sewage collection systems are operated by the East Valley Water
District and the Loma Linda Sanitation District.
The existing regional wastewater treatment plant serves approximately
49,000 customers, of which approximately 32,000 are located within the City.
Governmental Structure
The City operates pursuant to the Charter and is governed by an elected
Mayor and a seven-member Common Council. The City operates the sewer
collection system through its Department of Public Services. In October 1973
the Mayor and Common Council authorized the transfer of the wastewater
treatment plant facilities to the Board of Water Commissioners (the "Board").
The Board consists of five members appointed to staggered six year terms by
the Mayor. The Municipal Water Department is directed by the Board and is a
separate department operated indendently of other City functions. The Charter
gives the Municipal Water Department control over water supply and
distribution for the City and full management and fiscal responsibilities for
the regional wastewater treatment plant and for State and federal grants
applicable to the plant.
In regard to the administration of the regional wastewater treatment
facility the Charter charges the Board with the responsibility of managing the
regional wastewater treatment plant. The Board is empowered to establish and
collect water rates, to hire employees and to maintain, operate and expand the
treatment plant as necessary.
The Municipal Water Department provides regional wastewater treatment for
the City, the East Valley Water District and the Loma Linda Sanitation
District through the operation of its regional wastewater treatment plant.
Each participant provides sewage collection systems.
The East Valley Water District, formerly the East San Bernardino County
Water District, serves an area east and north of the City. In January 1980,
the City, entered into a contract with the East Valley Water District granting
the East Valley Water District the use of the City's regional wastewater
treatment plant.
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The Loma Linda Sanitation District serves the City of Loma Linda and areas
east and south of the City. In November 1980, the Loma Linda Sanitation
District entered into a contract with the City granting the Lama Linda
Sanitation District the use' of the City's regional sewage treatment plant and
other facilities as described in the agreement.
The sewer utility served an average of about single family
equivalent dwelling units (EDU's) in 1984/85, comprised of residential and
commercial users in the City, the East Valley Water District and the City of
Loma Linda. The City served 55,100 EDU's in 1978/79. The following table
shows regional treatment system users by user classification. Of the system's
49,100 users, sixty-six percent (66%) are located within the City.
Regional Treatment System Users
Classification
Residential
Commercial
Laundries
City of
San
Bernardino
East Valley
Water
District
Lorna Linda
Sanitation District
(information to follow)
Restaurants
Schools, churches and halls
Totals
Operational History
In 1969 the City received a federal grant offer, with State approval, for
an expanded secondary wastewater treatment plant. Local funds were raised
through the sale of Public Safety Authority lease revenue bonds.
The sludge disposal system encouraged by EPA and the State is known as
"heat, treat, and incinerate", as opposed to secondary digestion and sludge
drying beds, used in most sewage treatment processes. The heat exchange units
proved incapable of containing the flow of primary digested sludge. The
original plant, with a capacity of 13 million gallons per day, was required to
dispose of sludge generated by plant flows in excess of 20 million gallons per
day. In 1980, the City adopted an interim capital improvement program in an
attempt to meet discharge requirements imposed by the Santa Ana Regional Water
Quality Control Board, and to reduce high operating costs. These interim
capital improvements provided new sludge handling units which included new
aeration, splitters, thickeners, digestors and dewatering units. The interim
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capital improvement program raised the plants treatment capacity to
approximately 20.5 million gallons per day. Upon completion of the interim
improvements the treatment plant's operating costs are consistent with
industry standards.
Expansion of Wastewater Treatment Plant
The City has developed a capital improvement program to expand the
treatment plant's capacity for solids treatment to a reliable 28 million
gallons per day C"mgd"). The proposed improvements are as follows:
Project No.1 -
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General Treatment Plant Expansion - Improvements to be
made in Project No. 1 will bring the plant capacity
for solids treatment up to 24.5 mgd. The State Water
Control Resources Board has awarded a $12,680,000
grant to the City for the construction of these
improvements. The City has been authorized by the
State Water Control Resources Board to formally award
the contract to begin construction. It is estimated
that it will take approximately 2 1/2 years to
complete construction of Project No.1.
In order to properly equip the new facilities, the
City will purchase of $420,000 and sludge transport
equipment for $365,000. These costs are eligible to
be funded by grants from the State Water Control
Resources Board on the following formula: 78% of
estimated costs are eligible for the grant funds, with
the stipulation that the grant will only cover 80% of
the 78% of grant funds approved. The remaining costs
will be paid for by the City through funds set aside
for this purpose.
Secondary Treatment Plant Expansion The City plans to
construct a 3.5 mgd secondary treatment plant
expansion concurrently with the improvements described
in Project No.1. The estimated cost of this
improvement is approximately $2,800,000. Currently
the City has on deposit in the Public Safety Authority
Bond Construction Fund approximately $2,600,000 which
has been budgeted for funding this project. The
balance of the Project No. 2 improvements will be paid
for by other City monies.
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Project No.3 -
Project No.4 -
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Aeration Facilities Project A third major plant
improvement to be constructed concurrently with the
treatment plant expansion is the aeration facilities
project. This project will provide necessary
nitrization of solids in order to meet State discharge
requirements. The estimated cost of this project is
$4,500,000. Grant funds are being sought by the City
from the State Water Control Resources Board to fund
this project. If grant funds are not forthcoming the
City will fund this project out of other monies
currently on hand.
Focused Facility Masterplan Study This study, which
is underway, will analyze the incremental treatment
facility expansion that will be necessary through the
year 2000. The study will project the necessary
future sewage treatment capacity.
Sale of Sewer Capacity Rights - The City sold approximately 19,000 sewer
capacity rights during the period September I, 1984 through October 31, 1984,
to raise revenues for future wastewater treatment plant expansion. Purchasers
paid the City for the wastewater treatment plant capacity rights through cash
payments, letters of credit and term purchases. Under the term purchase
agreement the purchaser was required to put down $300 on each sewer capacity
right purchased with the unpaid balance being financed by the City at 12%
interest over five years. The City requires that all quarterly payments be
received ninety days in advance of the actual payment date. Failure to pay
results in forfeiture to the City of wastewater treatment plant capacity
rights plus any deposit or payments previously made and the City then may
resell the capacity rights.
As of February, 1986 the City has collected the following revenues as a
result of selling wastewater treatment plant capacity rights: cash purchases
_ $7,796,600; Letters of Credit purchases - $7,351,831; and term purchases of
$8,622,800 for a total of $23,771,231.
Financial Information
The Municipal Water Department established a complete fund accounting
system for the Enterprise as of July 1, 1974, when the City transferred to the
Board the management and operation of the wastewater treatment plant and
fiscal responsibility for the Sewer Fund. The Sewer Fund is established and
maintained pursuant to authorization under the Charter. It consists of the
Gross Revenues of the Enterprise from which are paid the necessary and
reasonable costs of maintenance and operation of the Enterprise after which
such Net Revenues of the Enterprise will be remitted by the City to the Fiscal
Agent for the debt service on the Bonds. The Board makes periodic
recommendations for the modification of sewer service charges sufficient to
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fully discharge the obligations for operation of the Enterprise and debt
service on the Bonds. After verifying the need for the additional revenue to
be produced, the Mayor and Common Council then establish the appropriate
charges for sewer services.
Operating Rates and Charges
The Enterprise has two major sources of revenue, service charges and
capacity charges. The City has defined two categories of users, residential
and commercial/industrial. Residential users are single family residences,
duplexes or triplexes charged on a per dwelling unit basis. All other users,
including apartments. trailer courts and commercial/industrial users, must
have a business license to operate and are charged on the basis of flow and
nature of discharge.
The Lorna Linda Sanitation District, which services the City of Lima Linda,
and the East Valley Water District which services portions of the City of San
Bernardino and unincorporated areas north and east of the City, charge their
customers the identical regional treatment charges as those charges within the
City. Both Districts remit the regional treatment revenues they collect to
the City for wastewater treatment services.
Residential Service Char~es - The current service charge per single family
unit is $7.20 per month in the City. The City rate is composed of a regional
wastewater treatment charge of $6.05 and a collection system charge of $1.15.
The Municipal Water Department bills and collects the total amount and rebates
the collection system portion to the City's Department of Public Services.
Commercial/Industrial Service Char~es - Charges for commercial users are
based on actual water consumption as reflected by water readings for a billing
period, and may be reduced for the purpose of establishing charges subject to
seasonal or consumptive use approved by the Board. The current commercial
rate is $0.37 per 100 cubic feet for regional wastewater treatment plus $0.08
for collection within the City.
Capacity Char~es - Wastewater treatment plant capacity charges are
collected from new customers throughout the City as they connect to the
system. The current charge is $1,620.00 per single family dwelling unit or
the equivalent for wastewater treatment plant capacity and $ for
sewer line hookup. The rate is adjusted each October 1 in proportion to the
twelve-month change reflected in the most recently published Construction Cost
Index of the En~ineerin~ News-Record, rounded to the nearest five dollars.
Any increase can be deferred by the Board for the next year. Funds collected
from capacity charges are restricted by ordinance for wastewater treatment
plant capital improvements and are not pledged to the repayment of the Bonds.
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Sewer Utility Expenses
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The Department pays to the City the sewage collection system charges it
collects with the regional ~astewater treatment charge. The sewage collection
system charge has three components, billing, maintenance/operation and
capital improvements. Table 2 shows the billing portion as a deduction from
administration/overhead, to arrive at a regional wastewater treatment expense
total. Collection system expenses (billing plus maintenance/operation) are
then added to the regional expenses to show total operating expenses. The
Public Safety Authority rental as described in the following section is then
added to arrive at total expenses, which, when deducted from total revenues,
shows the utility's Net Revenue.
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Revenue Coverage
Table 2 summarizes revenues and expenses of the sewer utility. The
financial report for the fiscal year ended June 30, 1985 is attached as
Appendix A.
Table 2
Municipal Water Department
Sewer Utility
Revenues and Expenses
1981/82
Fiscal Year
1982/83 1983/84
1984/85
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Revenues
City: Residential $1,409,760 $1,870,475 $2,221,615 $2,369,510
Nonresidential 934,063 1,358,359 1,651,507 1,927,981
Other entities 981,222 1,394, llO 1,664,044 1,815,993
Interest 283,960 33,060 103,658 230,673
Miscellaneous 46,380 126,544 55,631 80,121
Total Revenues $3,685,385 $4,783,208 $5,696,455 $6,424,278
Regional Expenses
Direct salaries $ 447,584 $ 441,597 $ 530,088 $ 552,450
Operations by water utility 86,082 72,982 64,655 40,795
Chemical and materials 1,026,226 1,070,399 951,969 1,070,149
Power and gas 699,Oll 687,910 689,498 734,788
Services and other 124,194 113,283 28,772 72,480
Less extraordinary expenses (512,192) (150,383 ) ( -0-) ( -0-)
Subtotal $1,870,971 $2,279,405 $2,231,982 $2,470,662
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Administration and Overhead
Salaries and benefits
Admin services by water utility
Other overhead
Industrial waste program
Less billing sewer
Subtotal
Total Regional Expenses
Collection System expenses
Total Operating Expenses
Debt Service
Public safety rental
Total expenses
Net Revenue
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Table 2 (cont'd)
1981/82
$ 265,866
92,954
138,954
68,103
(51,800)
$ 514,566
$2,385,547
342,733
$2,728,280
-0-
536,000
$3,264,280
L 391.105
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Fiscal Year
1982/83 1983/84
$ 268,329
93,839
146,320
60,352
(63,000)
$ 505,840
$2,785,245
363,234
$3,148,479
168,293
536,000
$3,852,772
$ 930.436
$ 297,337
125,344
147,546
65,452
(63,000)
$ 572,679
$2,804,661
442,892
$3,247,553
309,822
610,000
$4,167,375
$1. 529 .080
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1984/85
$ 394,617
159,469
168,298
72,209
(63,000)
$ 731,593
$3,202,255
474,676
$3,676,931
231,131
613,816
$4,521,878
$1.902.400
The City entered into a sublease on August I, 1970 with the Public Safety
Authority to maintain and operate sewage treatment facilities. Responsibility
for the lease payments became the responsibility of the sewer utility upon
transfer of the wastewater treatment plant facilities. The Public Safety
Authority issued and sold its lease revenue bonds in the total principal
amount of $7,700,000 for construction of the sewage treatment plant. In 1973
the Public Safety Authority issued $5,790,000 principal amount of refunding
bonds to refund the 1970 bonds. Annual rental for the leased facilities is
$536,000, subject to certain adjustments as were warranted by the agreement.
The rent is due July 1 of each year and paid in installments during the year.
Table 5 shows the remaining annual requirements for the Public Safety
Authority refunding bonds and the balance due, including principal and
interest, at June 30, 1985.
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The San Bernardino Public Safety Authority (the "Authority") is a joint
powers agency formed under the California Government Code by the City and the
County of San Bernardino. Through the use of lease revenue bonds, the
Authority has financed a juvenile hall and a central jail for the County, and
sewage treatment plant improvements for the City. The sewage treatment plant
improvements are leased to the Municipal Water Department and will become the
property of the City in 1998 upon retirement of the $5,790,000 lease revenue
bond debt.
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Table 3
San Bemardino Public Safety Authority
, Refunding Revenue Bonds -
Sewage Treatment Plant
Annual Debt Service Schedule
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Year
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
Total Annual Bond Service
$507,665
514,465
511,985
518,985
519,810
519,705
518,505
526,495
522,795
538,270
521,990
539,310
530,085
534,435
502,075
CONCLUDING INFORMATION
Financial Consultant
Miller & Schroeder Municipals, Inc. ("Miller & Schroeder"), has acted as
financial consultant to the City concerning the Bonds. As financial
consultant, Miller & Schroeder will receive compensation contingent upon the
sale and delivery of the Bonds.
Underwriting
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The Bonds have been sold at a net interest rate of _____to The original
purchase price to be paid is $ for the Bonds, plus accrued
interest. The underwriter(s) intend(s) to offer the Bonds to the public
initially at the prices and/or yields set forth on the cover page of this
Official Statement, plus accrued interest from , which prices
or yields may subsequently change without any requirement of prior notice.
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The underwriter(s) reserve the right to join with dealers and other
underwriters in offering the Bonds to the public. The underwriter(s) may
offer and sell Bonds to certain dealers (including dealers depositing Bonds
into investment trusts) at prices lower than the public offering prices, and
such dealers may reallow any such discounts on sales to other dealers.
In reoffering Bonds to the public. the underwriter(s) may overallocate or
effect transactions which stabilize or maintain the market prices for Bonds at
levels above those which might otherwise prevail. Such stabilization, if
commenced, may be discontinued at any time.
Legal Opinion
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The legal opinion of Sabo & Gondek, A Professional Corporation, Los
Angeles, California, will be furnished to the successful bidder and printed on
each Bond at the City's expense.
The statements of law and legal conclusions set forth in this Official
Statement under the headings "THE BONDS" and "THE RESOLUTIONS" have been
reviewed by Bond Counsel. Bond Counsel's employment is limited to a review of
the legal procedures required for the Bonds and to rendering an opinion that
the Bonds are valid revenue refunding bonds; that the Bonds are not arbitrage
bonds; and that interest on the Bonds is exempt from income taxation.
Tax Exempt Status
In the opinion of Bond Counsel, interest on the Bonds 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 Bonds.
Ratings
As noted on the cover of this Official Statement, the Agency has received
a "_" rating from Standard & Poor's Corporation and a "_It rating from
Moody's Investor's Service, Inc. These ratings reflect the views of the
respective rating agency and explanations can be obtained from Standard &
Poor's Corporation, 25 Broadway, New York, New York 10004, (212) 248-2525 and
Moody's Investor's Service, Inc., 99 Church Street, New York, New York 10007,
(212) 553-0300. There is no assurance that such ratings 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.
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Miscellaneous
All of the preceding summaries of the Resolutions, other applicable
legislation, agreements and 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 City for further information in connection therewith.
This Official Statement does not constitute a contract with the purchasers
of the Bonds.
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Any statements made in this Official Statement involving matters of
opinion or of 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 City will furnish a certificate of an appropriate officer of the City
to the effect that to the best of such officer's knowledge and belief, and
after reasonable investigation, (a) neither the Official Statement nor any
amendment or supplemental thereto contains any untrue statement of a material
fact or omits to state any material fact necessary to make the statements
therein, in light of the circumstances in which they were made, not
misleading; (b) since the date of the Official Statement, no event has
occurred which should have been set forth in an amendment or supplemental to
the Official Statement which has not been set forth in such an amendment or
supplemental; and (c) there has not been any material adverse change in the
operation or financial affairs of the City since the date of the Official
Statement.
The execution and delivery of this Official Statement by the Mayor has
been duly authorized by the Mayor and Common Council of the City.
CITY OF SAN BERNARDINO, CALIFORNIA
Isl
Evl yn Wilcox
Mayor
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SUPPLEMENTAL rNFORMATION
THE CITY OF SAN BERNARDrNO
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 foot 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.
Transportation is provided by several major freeways, freight lines, the
Atchison, Topeka and Santa Fe Railroad, Union Pacific Railroad, the Southern
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 1978 to 1985 is shown below.
1978
1979
1980
1981
1982
1983
1984
1985
105,400 (2)
107,100 (2)
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.
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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 I, 1978. Article
XIII A defines full cash value as the County Assessor'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 not exceed two
percent annually.
Prior to the 1981-82 fiscal year, property was assessed at 25 percent 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 I, 1978. Beginning in
1981-82, property is assessed at 100 percent of cash value and property tax
rates are expressed in terms of their ratio to such full cash value.
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.
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Beginning in 1980-81, the reimbursement was twice the amount of the
1979-80 reimbursement (less the amount corresponding to the tax rates levied
for indebtedness), increased by the State Reimbursement for Inventory Tax
Factor. In computing this adjustment between 1979-80 and 1980-81, the actual
rate of Statewide inflation (based on CPI) was used. In adjusting between
1980-81 and 1981-82, however, the Legislature mandated an inflation adjustment
of only 2.92 percent. Further, the Legislature has mandated that there will
be no increase in business inventory subventions for 1982-83.
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For assessment 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".
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A five-year summary 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.
City of San Bernardino
Summary of Taxable Valuations (1)
1980-81
1981-82
1982-83
1983-84
1984-85
Before
Redevelopment
Adjustment
$1,841,243,820
2,167,924,312
2,481,468,627
2,678,131,336
2,840,386,578
After
Redevelopment
Adiustment
$1,604,768,472
1,817,954,228
2,009,235,979
2,103,610,435
2,221,712,071
Secured Tax Charges & Delinquencies
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1977-78
1978-79
1979-80
1980-81
1981-82
Secured Tax Charge
$ 3,771,120.63 (2)
15,681,293.45 (3)
19,146,676.68 (3)
N/A
27,481,058.39 (3)
Amt. Del. 6/30
$ 127,494.17
305,404.78
679,634.90
% Del. 6/30
3.38'%.
1.95
3.55
2,596,641.33
9.45
(1) Beginning in 1981-82, taxable valuations are based on 100'%. of market value
rather than 25'%. as in previous years.
(2) Taxes collected for the city only.
(3) All taxes collected by the county within the city.
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Source: California Municipal Statistics.
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Tax Levies and Delinquencies
The San Bernardino County Tax Collector collects secured tax levies for
each fiscal year representing taxes levied for each fiscal year on taxable
real and personal property which is situated in the County as of the preceding
March 1. Unsecured taxes are assessed and payable on March 1 and become
delinquent on August 31, in the next fiscal year. One-half of the secured tax
levy is due November I, and becomes delinquent December 10; the second
installment is due February I, and becomes delinquent April 10. A ten percent
penalty is added to any late installment. On June 30, delinquent properties
are sold to the State.
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 per month of the tax due. Properties may be redeemed under
an installment plan by paying current taxes, plus 20 percent of delinquent
taxes for five years. Interest accrues at one and one-half percent 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.
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Direct and Overlapping Debt
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Set forth is a statement of the City's direct and overlapping bonded debt
as of February 1, 1985.
City of San Bernardino
% Applicable
8.425%
73.837
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
Various Issues) 0.032- 1.074
City of San Bernardino Building Authorities 100.
San Bernardino Valley Municipal Water District 31.596
San Bernardino Valley Municipal Water District 31.596
East San Bernardino County Water District 40.752
South San Bernardino County Water District 9.678
City of San Bernardino 90.000-100.
TOTAL GROSS DIRECT AND OVERLAPPING BONDED DEBT
Less: City of San Bernardino Public Safety Authority
East San Bernardino CWD (100% self-supporting)
San Bernardino MWD Certificates of Participation
San Bernardino Co. Water System Acquisition
Certificates of Participation
TOTAL NET DIRECT AND OVERLAPPING BONDED DEBT
4.387-
9.917
12.389
Ratio to Assessed Valuation:
Direct Debt
Total Gross Debt
Total Net Debt
Per Capita (1984 State Estimate: 131,000)
Assessed Valuation
Total Gross Debt
Total Net Debt
SHARE OF AUTHORIZED AND UNSOLD BONDS:
Rialto Unified School District
San Bernardino Unified School District
South San Bernardino County Water District
STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/84:
(1) Includes San Bernardino County certificates of participation.
(2) Excludes tax allocation and revenue bonds.
Source: California Municipal Statistics.
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Debt 02/01/85
$10,755,051 (1)
2,082,203
129,567
439,313
23,631
24,730,000 (2)
4,699,905
1,816,770
16,300
4,839
1,970,000
$46,667,579
4,970,000
16,300
1,816,770
875,357
$38.989.152
1. 1190%
2.1090%
1.7590%
$16,960
$ 356
$ 298
$200,454
$169,825
$ 14,517
$9,249,819
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The following lists annual aveeage numbee of wage and salaey employees by
industey within Riveeside and San Beenaedino Counties foe 1979 to Maech,
1983. Goveenment is the laegest employee in the two counties with almost 21
peecent of all wage and salaey woekees employed by goveenment. Retail teade
is the second largest employer. The diversified services industry represents
the thied laegest source of employment with appeoximately 20 peecent of all
employment. Health seevices compeise about one-thied of the seevices industey
workers. Combined government, services industry and retail trade comprise
appeoximately two-thieds of total nonageicultueal employment in the two
counties.
Annual Average Employment 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
Re tail 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 Goveenment 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
Agricultuee, 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
(1) Employment reported by place of work excluding workees involved in labor
disputes, self-employed, unpaid family and domestic workers.
(2) As of March, 1985.
Source: State of California, Employment Development Department.
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Construction Activity
The following table shows building permit valuation for the City from 1979
through May, 1983.
Building Permit Valuation
(Valuation in Thousands of Dollars)
1980 1981 1982 1983 1984(1 )
Residential
New single-dwelling $22,174 $28,848 $ 5,464 $ 1,390 $ 35,650
New multi-dwelling 25 , 161 7,156 7,216 783 43,906
Additions, alterations 5,286 3,624 4,715 459 4,815
Total Residential $52,621 $39,628 $17,395 $ 2,632 $ 84,371
Nonresidential
New commercial $23,884 $18,200 $19,786 $26,065 $ 27 , 798
New indus trial 415 1,100 4,249 2,150 1,556
Other 2,375 2,801 5,290 734 8,898
Additions, alterations 6,700 8,644 10,969 2,934 15,978
Total Nonresidential 33,374 30,755 40 , 294 31,883 54,230
Total Valuation $85.995 $70.383 $57.689 $41. 312 $138.601
No. of New Dwell ing Uni ts
Single-dwelling 444 477 98 27 616
Multi-dwelling ---..ill 265 236 23 1,317
Total Units 1,367 825 334 50 1,993
(1) Year-to-date, May, 1983.
Source: "California Construction Trends," Security Pacific National Bank.
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,
1982 was reported by the State Employment Development Department to the
629,000. The total civilian unemployment and the unemployment rate as of
July, 1983 were reported to be 70,800 and 11.0% respectively.
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Civilian Labor Force, Employment and Unemployment
Labor, Unemployment
~ Force Employment Unemployment Rate
{ 1980 591,500 546,600 44,900 7.6%
f 1981 606,900 555,400 51,500 8.5
1982 636,200 558,800 77 , 400 12.2
1983 646,900 587,000 59,900 9.3
1984 651,500 591,400 60,100 9.2
1985 684,600 633,400 51 , 200 7.5
(1) Data recorded as of July, 1983.
Source: State of California, Employment Development Department.
Employment and Industry
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Located within San Bernardino's economic area are several major
employers. Norton Air Force Base is the City's single largest employer.
Approximately 3,790 civilian employees and 5,530 military personnel contribute
to San Bernardino's economic environment through a gross annual payroll of
$133.7 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.
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Other major employers include wholesale distributors of beverages
(alcoholic and soft), produce, meats, 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
Distributor, Southwestern Meat and Provision, Desert Provision and the
distributing firm of Bank, Bohemian and A. Diel.
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The largest manufacturing firms in the San Bernardino area are:
Name of Company
Kaiser Steel Corp., Fontana
Steel Manufacturing Div.
The Sun Company, San Bernardino
California Portland Cement, Colton
Colton Manufacturing Inc., Colton
Terry Industries, San Bernardino
Griffin Wheel, Colton
Weyerhauser Company, Colton
H.M.K. Marketeer, Redlands
Employment
2,300
450
352
165
120
175
145
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Products
Iron and steel
Printing and publishing
Cement
Plumbing
Travel trailers
Cast-steel wheels
Shipping cartons
Electric Vehicles
The largest nonmanufacturing firms in the San Bernardino area are:
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 Gas Co.
General 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,
Lorna Linda
Campus Crusade for Christ
9,320
2,821
1,450
9,497
1,050
550
2,300
2,365
224
402
584
420
3,100
1,000
626
5,933
1,155
800
Source: San Bernardino Chamber of Commerce.
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Military
Transportation
Transportation
County Administration
City Administration
Research/program
management
Regional shopping center
Regional shopping center
Electrical - utility
Gas - utility
Communications
Communications
Unified School System
Community College
S ta te Co llege
University and Hospital
Hospital
Christian Conference Center
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Transportation
Santa Fe Railroad, Union'Pacific Railroad and Southern Pacific Railroad
provide regularly scheduled service, with 24-hour switching service and
reciprocal-switching agreements between all three Railroads. "Piggy-back"
service is available. San Bernardino is also serviced by AMTRAK.
All major freight lines have terminals in the San Bernardino area,
providing daily-scheduled service to all transcontinental points. Overnight
delivery is available to Los Angeles, 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. Two private and commuter airports, Tri-City Airport and Rialto
Airport, provide 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. Hours of operation are Monday
through Saturday, 5:30 a.m. to 7:30 p.m.
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 General Telephone
Company.
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 years), 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.
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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
organizations.
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, and the Southern California Gems, women's professional softball team.
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APPENDIX A
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REPORT ON
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MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
SEWER UTILITY
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AS OF
JUNE 30, 1985
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