City and County of San Francisco general obligation bonds (branch library facilities improvement bonds, 2000) series 2001E

146 Pages·2001·7.9 MB·English

by  San Francisco (Calif.)

PRELIMINARY OFFICIAL STATEMENT DATEDJUNE6, 2001
NEWISSUE.BOOK-ENTRYONLY RATINGS:
Moody's: Aa3
Standard& Poor's: AA
AA
Fitch:
(See"RATINGS"herein.)
IntheopinionofSidleyAustinBrown& WoodLLP, SanFrancisco, California, andPamelaS.Jue,AttorneyatLaw, SanFrancisco, California,
Co-BondCounsel, basedonexistingstatutes, regulations, rulingsandjudicialdecisionsandassumingcompliancewithcertaincovenantsinthe
documentspertainingto the Bonds andrequirements oftheInternalRevenue Code of1986, as amended (the "Code"), as describedherein,
interestontheBondsisnotincludableinthegrossincomeoftheownersoftheBondsforfederalincometaxpurposes. Inthefurtheropinionof
Co-BondCounsel, interestontheBondsisnottreatedasanitemoftaxpreferenceincalculatingthefederalalternativeminimumtaxableincome
ofindividualsandcorporations. InterestontheBonds, however, isincludedasanadjustmentinthecalculationoffederalcorporatealternative
minimumtaxableincomeandmaythereforeaffectacorporationsalternativeminimumtaxliability. InthefurtheropinionofCo-BondCounsel,
interestontheBondsisexemptfrompersonalincometaxesimposedbytheStateofCalifornia. See "TAXMAITERS"herein.
$17,665,000*
CITY AND COUNTY OF SAN FRANCISCO
GENERAL OBLIGATION BONDS
(BRANCH LIBRARY FACILITIES IMPROVEMENT BONDS, 2000)
DOCUMENTS DEPT.
series 2001E
JUN 9 2CG1
1
SAN FRANCISCO
Dated: DateofDelivery Due:June15,asshownbelow
The $17,665,000* aggregat^Iiiisipal/aLiSRARyVand County of San Francisco General Obligation Bonds (Branch Library
FacilitiesImprovementBonds,2000)Series200IE(the"Bonds")arebeingissuedundertheGovernmentCodeoftheStateofCaliforniaandthe
CharteroftheCityandCountyofSanFrancisco(the"City"). ThespecifictermsandconditionsforissuanceandsaleoftheBondsarecontained
inResolutionNo. 389-01 andResolutionNo.390-01,bothadopt—edbytheBoardofSupervisorsoftheCity(the"Board")onMay14,2001 and
approved by the Mayor on May25, 2001. See "THE BONDS Authority for Issuance." The proceeds ofthe Bonds will be used for the
acquisition,constructionandrenovation ofvariousimprovementsasdescribedhereinandtopay forcertaincosts related tothe issuance ofthe
Bonds.
TheBondswillbeissuedonlyasfullyregisteredbondswithoutcouponsandwhenissuedwillberegisteredinthenameofCede &
Co.,asnomineeofTheDepositoryTrustCompany,NewYork,NewYork("DTC"). IndividualpurchasesoftheBondswillbemadein book-
entryformonly,indenominationsof$5,000oranyintegralmultiplethereof. BeneficialownersoftheBondswillnotreceivephysicaldelivery
ofbondcertificates. Paymentsofprincipal ofandinterestonthe Bondswill bemadebytheTreasurerofthe City, aspaving agent, to DTC,
whichinturnisrequiredtoremitsuchprincipalandinteresttotheDTCParticipantsforsubsequentdisbursementtotheBeneficialOwnersofthe
Bonds. See"APPENDDCE—BOOK-ENTRYONLY SYSTEM." TheBondswillbedatedandbearinterestfromthedateoftheirdeliveryto
the initial purchasers thereof. Interest on the Bonds will be payable semiannually on June 15 and December 15 ofeach year, commencing
December 15,2001. TheBondswillbesubjecttooptionalredemptionpriortotheirrespectivestatedmaturitiesasdescribedherein. See"THE
BONDS—Redemption."
TheBondsrepresentthegeneralobligationoftheCity,payablesolelyoutofadvalorempropertytaxes. TheBoardofSupervisorsof
theCityhasthepowerandisobligatedtolevyadvaloremtaxesforthepaymentoftheBondsandtheinterestthereonuponallpropertywithin
theCity subjecttotaxationbythe City without limitationasto rate oramount(exceptcertain propertythatistaxable at limited rates) forthe
paymentoftheBondsandtheinterestthereon.
MATURITYSCHEDULE*
Maturity Maturity
Date Principal Priceor Date Principal Priceor
(June 15) Amount* InterestRate Yield (June15) Amount* InterestRate Yield
% % % %
2002 $ 530,000 2012 $ 865,000
2003 565,000 2013 905,000
2004 600,000 2014 945,000
2005 635,000 2015 995,000
2006 670,000 2016 1,045,000
2007 705,000 2017 1,095,000
2008 730,000 2018 1,155,000
2009 760,000 2019 1,215,000
2010 795,000 2020 1,280,000
2011 825,000 2021 1,350,000
TheBondsareofferedwhen,as,andifissuedbytheCityandacceptedbythepurchasers,subjecttotheapprovaloflegalitybySidley
Austin Brown & Wood LLP, San Francisco, California, and Pamela S. Jue, Attorney at Law, San Francisco, California, Co-Bond Counsel.
CertainlegalmatterswillbepasseduponfortheCitybyitsCityAttorney. Itisexpectedthatthe Bondswillbeavailablefordeliveryinbook-
entryformthroughthefacilitiesofDTCinNewYork,NewYork,onoraboutJuly 12,2001.
Thiscoverpagecontainscertaininformationforgeneralreferenceonly. Itisnotasummaryofthisissue. Investorsshouldreadthis
entireOfficialStatementtoobtaininformationessentialtothemakingofaninformedinvestmentdecision.
Dated:June 2001
,
Preliminary,subjecttochange.
No dealer, broker, salesperson or other person has been authorized by the City to give any
information or to make any representations other than those contained herein and, ifgiven or made, such
other information or representation must not be relied upon as having been authorized by the City. This
Official Statement does not constitute an offer to sell or the solicitation ofan offer to buy nor shall there
be any sale ofthe Bonds by any person in anyjurisdiction in which it is unlawful for suchperson to make
such an offer, solicitation or sale.
This Official Statement is notto be construedas a contract withthe purchaser orpurchasers ofthe
Bonds. Statements contained in this Official Statement which involve estimates, forecasts or matters of
opinion, whether or not expressly so described herein, are intended solely as such and are not to be
construed as representations offacts.
The information set forth herein has been obtained from sources which are believedto be reliable,
but is not guaranteed as to accuracy or completeness. The information and expressions ofopinion herein
are subject to change without notice and neither delivery of this Official Statement nor any sale made
hereunder shall, under any circumstances, create any implication that there has been no change in the
affairs ofthe City since the date hereof.
E
SANFRANCISCOPUBLICLIBRARY
3 1223 05851 9936
OFFICIAL NOTICE OF SALE
$17,665,000*
CITY AND COUNTY OF SAN FRANCISCO
GENERAL OBLIGATION BONDS
(BRANCH LIBRARY FACILITIES IMPROVEMENT BONDS, 2000)
SERIES 2001E
NOTICEISHEREBYGIVENthatsealed, facsimileandelectronicproposalswillbereceivedonbehalf
ofthe City and County of San Francisco (the "City") at 1 Dr. Carlton B. Goodlett Place, Room 336,
San Francisco, California 94102 on
Wednesday, June 20, 2001 at 8:00 a.m.
*$17,665,000* aggregateprincipalamountofCityandCountyofSan
JUN 2 2 ami ;(BranchLibraryFacilitiesImprovementBonds,2000)Series2001
5/S onds"),moreparticularlydescribedhereinafter.See "TERMSOF
orinformationregardingthetermsandconditionsunderwhich
imile or electronic transmission.
3ne or cancel the saleprovidedthatnotice ofsuch change is given
ovef ientinformationcenter* BloombergBusiness News (collectively, the "News Services"),as
SAN FR.•ANCISCO PUBLIC LIBRARY then scheduled for the receipt of such proposals. If the sale is
he place set forthabove onaweekdayon orbeforeFriday, July20,
SAN FRANCISCO hall determine. Notice ofthe new date and time for receipt ofbids
ofthe Bonds) shallbe giventhrough theNews Services as soon as
PUBLIC LIBRARY ent. As an accommodation to bidders, telephone, electronic or
lentand ofthe new saledatewillbe givento anybidderrequesting
e and Associates, 3093 Citrus Circle, Suite 155, Walnut Creek,
156-9797, facsimile [phone], Attention: Darlene Cimino-
REFERENCE
lerose.com)orfromCausewayFinancialConsulting, 150California
BOOK :alifornia 941 1 1, telephone [phone], facsimile (415) 732-
iail:Gobears@flashjiet). Montague DeRose and Associates and
sometimes collectively referred to herein as the "Co-Financial
:
eceive such wire, telephonic, electronic ortelecopiednotice shall
Nol (o be takenfrom the. Library uired notice or the legalityofthe sale.
ereinareauthorizedtobeissuedpursuanttotheCharteroftheCity
o. 389-01 adopted by the Board of Supervisors of the City (the
ouaiu ; on lviay 14, zuui, ana Resolution No. 390-01 adopted by the Board on May 14, 2001 (the
"Series 200IE Resolution" or the "Resolution"). The Bonds are more particularly described in the
Resolution (which is incorporated herein by reference) and copies thereof will be furnished to any
interestedbidderuponrequest.BiddersarereferredtothepreliminaryOfficial StatementdatedJune 6,
2001, for additional information regarding the City, the Bonds and the security therefor and other
matters. See "Terms of Sale - Official Statement," hereinafter.
TERMS RELATING TO THE BONDS
The Bonds are generallydescribed as follows:
Issue $17,665,000*aggregateprincipalamountofCityandCountyofSanFranciscoGeneralObligation
Bonds (Branch LibraryFacilities ImprovementBonds, 2000) Series 200IE. The Bonds will be fully
* Preliminary, subjectto change.
No dealer, broker, salesperson or other person has been authorized by the City to give any
information or to make any representations other than those contained herein and, ifgiven or made, such
other information or representation must not be relied upon as having been authorized by the City. This
Official Statement does not constitute an offer to sell or the solicitation ofan offer to buy nor shall there
be any sale ofthe Bonds by anyperson in anyjurisdiction in which it is unlawful for suchperson to make
such an offer, solicitation or sale.
This Official Statement isnotto be construed as a contract withthe purchaser orpurchasers ofthe
Bonds. Statements contained in this Official Statement which involve estimates, forecasts or matters of
opinion, whether or not expressly so described herein, are intended solely as such and are not to be
construed as representations offacts.
The information set forthherein has been obtained from sources which art
but is not guaranteed as to accuracy or completeness. The information and expre
are subject to change without notice and neither delivery of this Official Stater
hereunder shall, under any circumstances, create any implication that there has
affairs ofthe City since the date hereof.
E
SANFRANCISCOPUBLIC
^ |j||||||jj||j|J
3 1223 05851 9936
OFFICIAL NOTICE OF SALE
$17,665,000*
CITY AND COUNTY OF SAN FRANCISCO
GENERAL OBLIGATION BONDS
(BRANCH LIBRARY FACILITIES IMPROVEMENT BONDS, 2000)
SERIES 2001E
NOTICEIS HEREBYGIVENthatsealed, facsimileandelectronicproposalswillbereceivedonbehalf
ofthe City and County of San Francisco (the "City") at 1 Dr. Carlton B. Goodlett Place, Room 336,
San Francisco, California 94102 on
Wednesday, June 20, 2001 at 8:00 a.m.
Californiatime, forthepurchaseof$17,665,000* aggregateprincipalamountofCityandCountyofSan
FranciscoGeneralObligationBonds(BranchLibraryFacilitiesImprovementBonds,2000)Series2001
(the"Series2001EBonds"orthe"Bonds"),moreparticularlydescribedhereinafter.See "TERMSOF
SALE-FormofBid"hereinafterforinformationregardingthetermsandconditionsunderwhich
bids will be received through facsimile or electronic transmission.
The Cityreserves the right to postpone or cancel the sale providedthatnotice ofsuch change is given
through The Bond Buyer Wire and BloombergBusiness News (collectively, the "News Services"), as
described herein, prior to the time then scheduled for the receipt of such proposals. If the sale is
postponed,bids willbe receivedattheplace set forthabove onaweekdayon orbeforeFriday, July20,
2001, and at such time as the City shall determine. Notice ofthe new date and time for receipt ofbids
(and any change in the terms ofsale ofthe Bonds) shallbe giventhrough the News Services as soon as
practicable following a postponement. As an accommodation to bidders, telephone, electronic or
telecopied notice ofsuchpostponementand ofthe new saledatewillbe givento anybidderrequesting
such notice from Montague DeRose and Associates, 3093 Citrus Circle, Suite 155, Walnut Creek,
California 94598, telephone [phone], facsimile [phone], Attention: Darlene Cimino-
DeRose(e-mail:[email protected])orfromCausewayFinancialConsulting, 150California
Street, Suite 2300, San Francisco, California 941 1 1, telephone [phone], facsimile (415) 732-
7740, Attention: Lisa Siemsen (e-mail:Gobears@flashjiet). Montague DeRose and Associates and
Causeway Financial Consulting are sometimes collectively referred to herein as the "Co-Financial
Advisors."Failureofany bidderto receive suchwire, telephonic, electronicortelecopiednotice shall
not affect the sufficiency ofany required notice or the legalityofthe sale.
The Series2001EBondsdescribedhereinareauthorizedtobe issuedpursuanttotheCharteroftheCity
and the provisions of Resolution No. 389-01 adopted by the Board of Supervisors of the City (the
"Board") on May 14, 2001, and Resolution No. 390-01 adopted by the Board on May 14, 2001 (the
"Series 200IE Resolution" or the "Resolution"). The Bonds are more particularly described in the
Resolution (which is incorporated herein by reference) and copies thereof will be furnished to any
interestedbidderuponrequest.Biddersarereferredto thepreliminaryOfficial StatementdatedJune 6,
2001, for additional information regarding the City, the Bonds and the security therefor and other
matters. See "Terms of Sale - Official Statement," hereinafter.
TERMS RELATING TO THE BONDS
The Bonds are generallydescribed as follows:
Issue $17,665,000*aggregateprincipalamountofCityandCountyofSanFranciscoGeneralObligation
Bonds (Branch LibraryFacilities ImprovementBonds, 2000) Series 200IE. The Bonds will be fully
* Preliminary, subjectto change.
registered bonds without coupons in book-entry form in denominations of $5,000 or any integral
multiple thereof, as designated by the successful bidder (the "Purchaser"), all dated as ofthe date of
deliveryofthe Bonds to the initial purchasersthereof.
Book-Entry Only The Bonds will be registered in the name of Cede & Co., as nominee of The
DepositoryTrust Company("DTC"),NewYork, NewYork. DTCwill act as securities depositoryfor
the Bonds. Individual purchases will be made in book-entry form only, and the Purchaser will not
receive bond certificates representing its interest in the Bonds purchased. As ofthe date ofaward of
the Bonds, the Purchasermust either participate in DTC or must clear through ormaintaina custodial
relationshipwith an entitythat participates in DTC.
InterestRates The maximum interest rate bid shall not exceed twelve percent (12%) per annum, and
interest on the Bonds shall be payable semiannually on June 15 and December 15 of each year,
commencingDecember 15, 2001. Interest shall be calculated on the basis ofa 30-daymonth, 360-day
yearfromthedateofthe Bonds. Biddersmustspecifytherateorrates ofinterestwhichthe Bonds shall
bear; provided, that: (i) each interest rate specified in anybid mustbe a multipleofone-eighth or one-
twentieth ofone percent (1/8 or 1/20 of 1%) per annum and a zero rate ofinterest cannot be named;
(ii) no Bond shall bear more than one rate ofinterest; (iii) each Bond shall bear interest from its date
to its statedmaturitydateatthe singlerateofinterest specifiedinthebid; (iv) all Bondsmaturingatany
onetime shallbearthe same rateofinterest; and (v) the interestrate specified foranymaturityshallnot
be more than three percent higher than the interest rate specified for any other maturity.
PrincipalPayments TheBondsshallbeserialand ortermBonds, as specifiedbyeachbidder,maturing
on June 15, inanyorallyears2002 through 2021,bothinclusive. No serial Bond shallmatureafterthe
first mandatorysinking fund payment for any term Bond. The principal amount ofBonds maturing or
subject to mandatory sinking fund redemption in any year shall be in integral multiples of $5,000.
Subject to adjustment as hereinafter provided, the aggregateamount ofthe principal payment for the
Bonds in each year is initially estimated as follows:
Principal Series 2001E
Payment Date Principal
(June 15) Amount*
2002 S 530,000
2003 565,000
2004 600,000
2005 635,000
2006 670,000
2007 705,000
2008 730,000
2009 760.000
2010 795,000
2011 825.000
2012 865,000
2013 905,000
2014 945.000
2015 995,000
2016 1.045,000
2017 1.095.000
2018 1.155,000
2019 1.215,000
2020 1.280,000
2021 1,350,000
" Subject to adjustment in accordance with this OfficialNotice ofSale.
2
AdjustmentofPrincipalPaymentsTheprincipalamountssetforthinthisOfficialNoticeofSalereflect
certain estimates ofthe Citywithrespectto the likelyinterestrates ofthe winningbid. In orderto size
andstructuretheBondstoachieve substantiallyleveldebtserviceineachBondyearafterthe firstBond
year, the Cityreserves the right to change the principal paymentschedule set forth hereinbeforeafter
thedeterminationofthewinningbidder,byincreasingordecreasingtheprincipalamountofoneormore
maturitiesinincrementsof$5,000,provided, however, thattheaggregateprincipalamountoftheBonds
shall remainthe same. The purchaser may not withdraw its bid or change the interest rates bid as
a result of any changes made to the principal payments of the Bonds in accordance with this
Official Notice ofSale. The dollaramountofthe pricebid will be changed so that the percentage
of net compensation to the successful bidder does not increase or decrease from what it would
have been if no adjustment had been made to the principal amounts shown in the maturity
schedule;provided, however, that the purchase price ofthe Bonds shall not be less than par. The
mandatorysinking fund redemptionpayments (ifany),mustbe specifiedby each bidderin the spaces
provided in the bid form. No mandatorysinking fund redemptionmay occurprior to June 15, 2009.
OptionalRedemption The Bonds maturingon orbeforeJune 15, 2009, shallnotbe subjectto optional
redemption prior to their fixed maturity dates. The Bonds maturing on and after June 15, 2010, are
subject to optional redemption prior to their fixed maturitydates, at the option ofthe City and as the
City shall determine, from any source ofavailable funds, as a whole or in part on any date (with the
maturitiestoberedeemedtobedeterminedbythe Cityandbylotwithinamaturity) onorafterJune 15,
2009, at the following redemption prices (each expressed as a percentage ofthe principal amount of
Bonds to be redeemed), togetherwith accrued interest to the date fixed for redemption:
Redemption Dates RedemptionPrice
June 15, 2009, through June 14, 2010 102%
June 15, 2010, through June 14, 2011 101
June 15, 201 1, and thereafter 100
Mandatory Sinking Fund Redemption Term Bonds, if any, are further subject to mandatory
redemptionprior to their stated maturitydates, on June 15 ofeach year on or after June 15, 2009, for
which a mandatorysinking fund redemption is specified by the Purchaser, by lot within any maturity
ifless than all ofthe Bonds ofsuchmaturityaretoberedeemed,uponpaymentoftheprincipal amount
thereofand accrued interest thereon to the date fixed for redemption, without premium, but only in
amounts equal to, and in accordance with, the schedule of the principal amounts of Bonds to be
redeemed in each such year from mandatorysinking fund redemption.
Payment Principal ofand interest on the Bonds are payable in lawful money ofthe United States of
America. Principal ofthe Bonds is payable at the office ofthe Treasurer ofthe City and County of
San Francisco (the "Treasurer"). Interest on the Bonds is payable by check mailed to the registered
owner at such address as appears on the registration books ofthe Treasurer as ofthe last day ofthe
calendar monthpreceding such interestpaymentdate, or, for holders ofat least $1,000,000 aggregate
principal amount ofthe Bonds, by wire transfer within the continental limits ofthe United States of
America, upon due notice to the Treasurer. As long as the Bonds are registeredinthe name ofCede &
Co., as nominee ofDTC, principal and interest will be paidby wire transfer onlyto Cede & Co.
AuthorityforIssue The Bondswereauthorizedbythevotesofatleasttwo-thirds(2/3) ofthequalified
votersoftheCityvotingatanelectionfortheraisingofmoneyforlawfulmunicipalpurposes,indicated
generallyin theirtitle.
Security The Bonds represent the general obligation ofthe City, and the Board has the power and is
obligated to levy ad valorem taxes for the payment of the Bonds and the interest thereon upon all
property within the City subject to taxation by the City (except certain property which is taxable at
limited rates) without limitation as to rate or amount.
3
Tax Exemption In the opinion ofSidley Austin Brown & Wood llp and Pamela S. Jue, Attorney at
Law, Co-BondCounsel,underexistinglawandassumingcontinuedcompliancewithcertaincovenants
inthe documentsrelatingto theBonds and certainprovisions ofthe Internal RevenueCodeof 1986, as
amended, and certain provisions ofthe Treasury Regulations, interest on the Bonds is excluded from
thegrossincome oftheownersthereofforfederalincome taxpurposesandwillnotbetreatedasanitem
oftax preference in calculating alternative minimumtaxable income ofindividualsand corporations.
However,interest on the Bonds willbe included as an adjustment in the calculation ofa corporation's
alternative minimum taxable income. Interest on the Bonds will be exempt from State ofCalifornia
personal income taxes. See "Tax Matters" in the Official Statement.
LegalOpinion The legal opinionofSidleyAustinBrown & Woodllp and PamelaS. Jue, Attorneyat
Law, Co-BondCounsel approvingthevalidityoftheBonds,willbe furnishedtothe Purchaserwithout
charge. Copies ofsaid opinion will be filed with DTC and with the Treasurer.
TERMS OF SALE
Form ofBid All bidsmustbe forall, andnotless than all, ofthe Bonds herebyoffered forsale, andfor
not less than the aggregateprincipal amountthereof,plus anypremium as maybe specified in the bid.
Allbidsmustbeunconditionalandinwriting. Bidsdeliveredbyhandorbyfacsimiletransmissionmust
be signedbythe bidder. Electronicbids mustconformwiththe procedures established byDalcomp, a
division ofThomson Financial Municipals Group, Inc., BIDCOMPCompetitive Bidding System and
ParityElectronicBidSubmissionSystem(the"BidService"),395 HudsonStreet,NewYork,NewYork
10014, telephone: [phone],facsimile: [phone]. Eachbidmustbe deliveredbyfacsimile
orelectronictransmission,ashereinafterdescribed, ormustbe enclosedinasealedenvelopeaddressed
totheDirectorofPublicFinance, 1 Dr. CarltonB. GoodlettPlace,Room336, SanFrancisco,California
94102, and clearly marked "Proposal for $17,665,000* City and County of San Francisco General
Obligation Bonds," and received by 8:00 a.m. California time on Wednesday, June 20, 2001, or such
other date as is determined in accordance with this Official Notice of Sale, at the Mayor's Office of
Public Finance, Attention: Karen Ribble (Facsimile: [phone]; Telephone [phone]). If
the saleoftheBondsiscanceledorpostponed,allsealedbidsshallbereturnedunopened. Allbidsshall
be deemed to incorporateall ofthe terms ofthis Official Notice ofSale.
Solely as an accommodation to bidders, electronic bids will be received exclusivelythrough the Bid
Service in accordance withthis Official Notice ofSale until 8:00 a.m. Californiatime, but no bid will
be received after the time specified for receivingbids. To the extent any instructions or directions of
the Bid Service conflictwiththis OfficialNoticeofSale, theterms ofthis Official Notice ofSale shall
control.
TheCityretainsabsolutediscretiontodeterminewhetheranybid,whetherhanddeliveredorsent
by facsimile or electronic transmission, is timely, legible and complete. The City takes no
responsibility for informing any bidder prior to the time for receiving bids that its bid is
incomplete, illegible or not received.
Warnings regarding facsimile bids: A bid submitted by facsimile transmission will not be
considered timely unless, at the deadline for submission of bids, the entire bid form has been
received by the receivingfax machine. The receivingfax machinewill be disabled atthe deadline
for receipt of bids. Neither the City, the Co-Financial Advisors, nor Co-Bond Counsel shall be
responsiblefor,andthebidderexpresslyassumestheriskof,anyincomplete,illegibleoruntimely
bid submitted by facsimiletransmission by such bidder, including,without limitation, by reason
3 1223 05851 9936
Preliminary, subjectto change.
4
of garbled transmission, mechanical failure, engaged telephone or telecommunications lines, or
any other cause arising from delivery by facsimile transmission rather than by hand.
Warnings regarding electronic bids: The City will accept bids in electronic form solely through
the Bid Service on the official bid form created for such purpose. Each bidder submitting an
electronicbidunderstandsandagreesbydoingsothatitis solelyresponsibleforallarrangements
with theBid Service,thattheCityneitherendorses norencouragesthe use oftheBid Service,and
that the Bid Service is not acting as an agent ofthe City. Instructions and forms for submitting
electronic bids must be obtained from the Bid Service, and the City has no responsibility for
ensuring or verifying bidder compliance with the procedures ofthe Bid Service. The City shall
assume that any bid received through the Bid Service has been made by a duly authorized agent
ofthe bidder.
TheCity,theCo-FinancialAdvisorsandCo-BondCounselassumenoresponsibilityforanyerror
contained in any bid submitted electronically,orforfailureofanybidto be transmitted,received
or opened at the official time for receipt of bids. The official time for receipt of bids will be
determinedbytheCityatthe placeofbidopening,andthe Cityshallnotberequiredto acceptthe
time kept by Bid Service as the official time.
In the event ofa malfunction in the electronic bidding process, bidders should submittheir bids
by facsimile or hand delivery on the official bid form attached hereto as ExhibitB.
GoodFaith Deposit Each bid must be preceded or accompanied by a cashier's check in immediately
availablefunds drawn on abankortrust companytransactingbusiness in the State ofCalifornia, orby
a financial suretybond, ineach case inthe amountof$300,000payableto the orderofthe Treasurerof
the CityandCountyofSan Francisco, to securethe Cityfromany loss resulting fromthe failureofthe
bidder to complywith the terms ofits bid.
Ifa financial suretybond is used, it mustbe from an insurance companylicensed to issue such a bond
in the State ofCalifornia, whose claims-payingability is rated in the highest rating category(without
regard to subcategories) by Moody's Investors Service and Standard & Poor's, A Division of The
McGraw-HillCompanies. SuchfinancialsuretybondmustbereceivedbytheMayor'sOfficeofPublic
Finance, 1 Dr. CarltonB. GoodlettPlace, Room336, SanFrancisco, California94102, telephone(415)
554-6902,facsimile(415) 554-4864,Attention: Karen Ribbleno laterthan 8:00 a.m. (Californiatime)
on the date bids are to be received. The financial surety bond must identify each bidder whose good
faith deposit is guaranteed by such financial surety bond, and the City has no responsibility for any
failure ofa financial suretybond to list any bidder or to be received on a timelybasis as described in
thepreceding sentence. Ifthe Bonds are awardedto abidderutilizing a financial suretybond, thenthe
Purchasershall deliverits good faith depositto theTreasurerinthe formofacashier'scheck(meeting
the requirementsset forth hereinbefore) orby wire transferno later than 12:00 noon (Californiatime)
on the business day immediately following the award. The wire transfer is to be made to Bank of
America, N.A., ABA 121000358, 555 Capitol Mall, Suite 1555, Northern California Government
Banking, Unit 1436, Sacramento, California95814, to the creditofCityand CountyofSan Francisco,
Account No. 00661-80050, for credit to the City and County ofSan Francisco with notice thereofto
Karen Ribble, telephone [phone], facsimile(415) 554-4864. Ifsuch depositis notreceivedby
that time, the financial suretybond shall be drawn by the Cityto satisfythe depositrequirement.
TheCitywillacceptafinancialsuretybondinlieuofacashier'scheckundertheterms describedherein
solelyasanaccommodationtobidders,anditisunderstoodandagreedbyeachbidderusingsuchabond
that the bidder must make its own arrangements with the provider of the bond. The City does not
encourage or discourage the use ofa financial suretybond or any particular suretybond provider.
No interestwillbe paiduponthe depositmadeby anybidder. Good faithdepositchecks ofall bidders
(except the Purchaser) will be returned by the Citypromptlyfollowing the award ofthe Bonds to the
Purchaser. The deposit of the Purchaser will, immediately upon acceptance of its bid, become the
5
propertyofthe Cityto be heldand investedfor the exclusive benefitofthe City. The principal amount
ofsuch deposit shall be applied to the purchase price ofthe Bonds at the time ofdeliverythereof.
Ifthe purchase price is not paid in full upon tender ofthe Bonds, the Purchaser shall have no right in
orto the Bonds orto the recoveryofits deposit, orto any allowance orcreditbyreasonofsuchdeposit,
unlessitshallappearthatthe BondswouldnotbevalidlyissuedifdeliveredtothePurchaserintheform
and manner proposed. In the event of nonpayment by the Purchaser, the amount of the good faith
depositshallberetainedbytheCityas andforliquidateddamagesforsuchfailurebythePurchaser,and
suchretentionshallconstituteafullreleaseand discharge ofallclaims bytheCityagainstthePurchaser
arising from such failure. The City's actual damages in such eventmaybe greaterormaybe less than
the amount of the good faith deposit. Each bidder waives any right to claim that the City's actual
damages are less than such amount.
Basis ofAward Unless all bids are rejected, the Bonds will be awarded to the bidder whose bid
representsthe lowesttrueinterestcost("TIC")totheCity. The TIC willbethatnominalannualinterest
rate which, when compounded semiannually and used to discount to the dated date ofthe Bonds all
payments ofprincipal and interest payable on the Bonds, results in an amount equal to the principal
amount ofsuch Bonds plus the amount ofany premium, ifany. In the eventthat two or more bidders
offer bids for the Bonds at the same lowest TIC, the City shall determine by lot which bidder shall be
awarded such Bonds. Bid evaluations or rankings by the Bid Service are not binding on the City.
EstimateofTrueInterestCost Eachbidderis requested, butnotrequired,to state initsbidthe amount
of interest payable on the Bonds during the life of the issue and the percentage TIC to the City
determinedas describedhereinbefore),which shallbe considered as informative onlyandnotbinding
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on either the bidder or the City.
Right ofRejection and Waiver ofIrregularity The Cityreserves the right, in its discretion, to reject
any and all bids and to waive any irregularityor informalityin any bid.
PromptAward The Controller ofthe City (the "Controller") will take action awarding the Bonds or
rejecting all bids not later than twenty-six (26) hours afterthe expiration ofthe time hereinprescribed
forthe receipt ofproposals, unless suchperiod forawardis waivedbythe Purchaser. Promptnotice of
the award will be given to the Purchaser.
Qualification for Sale; Blue Sky The City will furnish such information and take such action not
inconsistentwithlaw as the Purchasermayrequest and the Cityshall deemnecessaryorappropriateto
qualifythe Bonds for offer and saleunderthe Blue Sky or othersecurities laws and regulations ofsuch
states and otherjurisdictions ofthe United States ofAmerica as may be designatedby the Purchaser;
provided, however, that the City shall not execute a general or special consent to service ofprocess or
qualifyto do business in connectionwith such qualification or determinationin anyjurisdiction. The
successful bidderwill not offer to sell, or solicit any offerto buy, the Bonds in anyjurisdiction where
it is unlawful for such successful bidder to make such offer, solicitation or sale, and the successful
bidder shall comply with the Blue Sky and other securities laws and regulations of the states and
jurisdictions in which the successful bidder sells the Bonds. Paymentofany fees forthe qualification
ofthe Bonds is the sole responsibilityofthe Purchaser.
Delivery andPayment Deliveryofthe Bonds, in the formofone certificatefor each maturityshall be
made to the Purchaser through the facilities ofDTC inNewYork, New York, or at any other location
mutuallyagreeableto both the City and the Purchaser, as soon as practicable. Paymentfor the Bonds
(includinganypremium) mustbemadebywiretransferinfundsimmediatelyavailableinSanFrancisco.
Any expense formakingpaymentin immediately availablefunds shallbe bornebythe Purchaser. The
costs ofpreparing the Bonds will be borne by the City.
Reoffering Price Certificate The Purchasermust submitto the City a certificate specifying for each
maturitythe reoffering price at which at least ten percent ofthe Bonds ofsuch maturitywere sold (or
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