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HomeMy WebLinkAboutMINUTES - 03311987 - 1.49 RESOLUTION NO. 87/182 RESOLUTION APPROVING AGREEMENT FOR LEGAL SERVICES ASSESSMENT DISTRICT 1987-1, PLEASANT HILL BART STATION AREA REFUNDING The Board of Supervisors of the County of Contra Costa resolves: This Board approves that certain agreement between the County of Contra Costa and STURGIS , NESS , BRUNSELL & SPERRY a professional corporation, for services of that firm as Special Bond Counsel for Assessment District 1987-1, Pleasant Hill BART Station Area Refunding, dated March 31, 1987 , and on file with the Clerk of the Board. The Chairman of the Board is authorized to sign the agreement and the County Clerk is authorized to attest its execution. I HEREBY CERTIFY that the foregoing resolution was duly and regularly adopted by the Board of Supervisors of the County of Contra Costa, State of California, at a regular meeting thereof, held on the 31st day of March, 1987. ATTEST: March 31 , 1987 PHIL BATCHELOR, Clerk of the Board of Supervisors and County Administrator By a 1 Z'4-�-o RESOLUTION NO. 87/182 RESOLUTION NO. 87/183 RESOLUTION APPROVING AGREEMENT FOR ENGINEERING SERVICES ASSESSMENT DISTRICT 1987-1, PLEASANT HILL BART STATION AREA REFUNDING The Board of Supervisors of the County of Contra Costa resolves: This Board approves that certain agreement between the COUNTY of CONTRA COSTA and RICHARD NYSTROM for his engineering services in Assessment District 1987-1, Pleasant Hill BART Station Area Refunding , dated the 31st day of March, 1987 , and on file with the County Clerk. The Chairman of the Board is authorized to sign the agreement and the County Clerk is authorized to attest its execution. I HEREBY CERTIFY that the foregoing resolution was duly and regularly adopted by the Board of Supervisors of the County of Contra Costa, State of California, at a regular meeting thereof, held on the 31st day of March, 1987. ATTEST: March 31 , 1987 PHIL BATCHELOR, Clerk of the Board of Supervisors and County Administrator By _ a q*444 Depivy RESOLUTION NO. 87/183 RESOLUTION NO. 87/184 RESOLUTION APPROVING AGREEMENT FOR FINANCIAL CONSULTING SERVICES ASSESSMENT DISTRICT 1987-1, PLEASANT HILL BART STATION AREA REFUNDING The Board of Supervisors of the County of Contra Costa resolves: This Board approves that certain letter agreement by and between the COUNTY OF CONTRA COSTA, CONTRA COSTA CENTRE ASSOCIATION, AND JOHN G. KERNS for his financial consulting services in Assessment District 1987-1, Pleasant Hill BART Station Area Refunding, dated February 17, 1987. The Director of Community Development is authorized to sign said letter agreement. I HEREBY CERTIFY that the foregoing resolution was duly and regularly adopted by the Board of Supervisors of the County of Contra Costa, State of California, at a regular meeting thereof, held on the 31st day of March, 1987. ATTEST: March 31 , 1987 PHIL BATCHELOR, Clerk of the Board of Supervisors and County Administrator By RESOLUTION NO. 87/184 RESOLUTION NO. 87/185 RESOLUTION OF INTENTION TO CONDUCT REASSESSMENT PROCEEDINGS IN ASSESSMENT DISTRICT 1987-1, PLEASANT HILL BART STATION AREA REFUNDING The Board of Supervisors of the County of Contra Costa, State of California resolves: This Board hereby determines that the public interest and necessity requires the refunding of all outstanding bonds previously issued as Pleasant Hill BART Station Area (Assessment District No. 1983-1) , dated April 5, 1984. This Board hereby declares its intention to refund said outstanding bonds and to levy reassessments pursuant to the Refunding Act of 1984 for 1915 Improvement Act Bonds (the "Act") as security for said refunding bonds. This Board hereby directs Richard Nystrom to prepare and file with the County Clerk of the County of Contra Costa a written report containing each of the items specified by Section 9523 of the Act. Serial bonds representing unpaid reassessments, and bearing interest at a rate not to exceed twelve percent (12%) per annum, will be issued in the manner provided by the Act, and the last installment of the bonds shall mature not later than September 2, 2004. The County will not obligate itself to advance available funds from the County Treasurer to cure any deficiency which may occur in the bond redemption fund. A determination not to obligate itself shall not prevent the County from, in its sole discretion, so advancing funds. Until September 2, 1991, the procedure for the collection of reassessment and advance retirement of bonds under the Act shall be as provided in parts 8-11, Division 10 of the RESOLUTION NO. 87/185 r .J a,•• Streets and Highways Code of the State of California. Thereafter those proceedings will be taken under part 11.1 of said Division 10. The amount of any surplus remaining after completion of the refunding shall be transferred to the reserve fund for the refunding bonds. I HEREBY CERTIFY that the foregoing resolution was duly and regularly adopted by the Board of Supervisors of the County of Contra Costa, State of California, at a regular meeting thereof, held on the 31st day of March, 1987. ATTEST: March 31 , 1987 PHIL BATCHELOR, Clerk of the Board of Supervisors and County Administrator By fit 4t-� Depugy 2 RESOLUTION NO. 87/185 RESOLUTION NO. 87/186 RESOLUTION APPROVING REASSESSMENT REPORT AND CONFIRMING REASSESSMENTS ASSESSMENT DISTRICT 1987-1, PLEASANT HILL BART STATION AREA REFUNDING BE IT RESOLVED by the Board of Supervisors of the County of Contra Costa, California, as follows: The Engineer of Work filed the written report prescribed by Section 9523 of the Streets and Highways Code. The Board of Supervisors hereby determines that no hearing on this proposed reassessment is required, in that the owners of all land subject to reassessment have signed and filed with the - Board a written consent and waiver of any requirement of notice or hearing and further have waived the right to contest the reassessment by litigation. Accordingly, this Board of i Supervisors is authorized to proceed with approval and confirmation of the report and with authorized issuance and sale of the proposed refunding bonds without notice to the affected landowners or hearing on the report. This Board hereby approves and confirms the Reassessment Report, including Exhibits A thr.ough I thereof. All assessments originally levied in Assessment District 1983-1, Pleasant Hill BART Station Area Refunding shall be deemed supplanted and superseded by the reassessments proposed hereby, except for any installments of principal and interest on the original assessments which are delinquent on the date of this resolution. Installments of principal and interest on the original assessments which are now posted to the County tax roll, but do not become delinquent until April 10, 1987 , are not superseded and supplanted by the proposed reassessments. RESOLUTION NO. 87/186 RESOLUTION NO. 87/187 RESOLUTION AUTHORIZING ISSUANCE OF REFUNDING BONDS ASSESSMENT DISTRICT NO 1987-1, PLEASANT HILL BART STATION AREA REFUNDING BE IT RESOLVED by the Board of Supervisors of the 0 County of Contra Costa, State of California: Section 1. RECITALS. On March 31, 1987, the Board of Supervisors of the County of Contra Costa adopted its resolution of intention to conduct reassessment proceedings and issue refunding bonds under the provisions of the Refunding Act of 1984 for 1915 Improvement Act Bonds (the "Act") . Proceedings taken under the Act led to the levy of reassessments by the Board of Supervisors against parcels of land within the reassessment district in the total amount of $8,785,000. These reassessments will be recorded in the office of the County Recorder of the County of Contra Costa and thereupon will become a lien upon each of the reassessment parcels. The refunding bonds are being issued in the amount of the total reassessment. Section 2. ISSUANCE OF BONDS. The Board of Supervisors hereby authorizes the issuance of refunding bonds and supplemental interest certificates under the provisions of the Act to be secured by the reassessments. The bonds shall be designated, "Assessment District 1987-1, Pleasant Hill BART Station Area Refunding Bonds, County of Contra Costa, California, Series No. 1987-1, Without Obligation to Advance Funds. " In all respects not specified in this resolution, the bonds shall be issued in the manner prescribed by the Act. Bonds shall be issued in denominations of $5000 or integral multiples thereof, and shall be dated April 16, 1987. Bonds shall mature and shall bear interest (other than as described in RESOLUTION NO. 87/187 M1 � t Section 4.1 hereof) at the rates set forth in the table attached as Exhibit A-1. The bonds shall bear additional interest, represented by the supplemental interest certificates as described in Section 4.1 hereof. Section 3. APPOINTMENT OF PAYING AGENT, REGISTRAR AND TRANSFER AGENT. The Board of Supervisors hereby appoints the Bank of America National Trust & Savings Association as paying •agent, registrar and transfer agent for the bonds in accordance with an agreement between the County and the Bank heretofore approved by the Board of Supervisors. Section A. FORM AND EXECUTION. Bonds shall be issued as fully registered bonds substantially in the form set forth in Exhibit B to this resolution. In addition, supplemental interest certificates as described in Section 4-1 shall be issued as fully registered certificates substantially in the form set forth in Exhibit B-1 to this resolution. The bonds and supplemental interest certificates shall be signed by the Treasurer and the Clerk of the Board and the seal of the County shall be affixed thereto. All signatures and the seal may be reproduced on the bonds and supplemental interest certificates by facsimile but upon its registration or reregistration each bond or supplemental interest certificate shall be authenticated by the manual signature of the registrar. The paying agent shall assign to each bond or supplemental interest certificate authenticated and registered by it a distinctive letter , or number , or letter and number , and shall maintain a record thereof which shall be available to the County for inspection. Section 4.1. SUPPLEMENTAL INTEREST CERTIFICATES. A portion of the interest payable on each bond maturing in an 2 1 even-numbered year shall be represented by separate supplemental interest certificates. The rate of interest represented by each such certificate and the maturities of the bonds to which the supplemental interest certificates pertain shall be as set forth in Exhibit A-2. The supplemental interest certificates represent a portion of the interest payable on the even-numbered years, payable on each interest payment date from and including March 2, 1988 to and including March 2, 1990. Supplemental interest certificates shall be redeemable at the option of the County in advance of any bond interest payment date and the normal maturity by payment to the registered certificate owner of the interest with respect to any such certificate to the date of redemption of the bonds to which they relate. Section 4.2 ADVANCE PAYMENT OF ASSESSMENTS AND ADVANCE REDEMPTION OF BONDS. Assessments may be paid in full at any time in accordance with the provisions of Part 8, Part 9, and Part 11 or Part 11.1 of the Improvement Bond Act of 1915. In the event of a prepayment of any assessment prior to March 2, 1990, the Treasurer shall select for advance redemption only bonds which mature in odd numbered years, so far as such bonds are available for advance redemption. It is the intent of this provision that the supplemental interest certificates issued with respect to bonds maturing in even numbered years shall not be called for advance redemption unless and until all bonds maturing in odd numbered years have been called for advanced redemption. Payment in full of assessments after March 2, 1990 shall be governed by the provisions of Part 11.1 of the Improvement Bond Act of 1915. Section 5. ESTABLISHMENT OF SPECIAL FUNDS. For administering the proceeds of the sale of bonds and payment of 3 interest and principal on the bonds and supplemental interest ;certificates, there are hereby established five funds to be ..known as the escrow fund, the redemption fund, the special reserve fund, the investment earnings fund and the excess .investment earnings fund, respectively, for Assessment District 1987-1, Pleasant Hill BART Station Area Refunding. Section 5.1. ESCROW FUND. Except as provided in Section 5.3, proceeds of sale of the bonds and supplemental interest certificates, together with the redemption fund and :-.special reserve fund for the outstanding bonds for Assessment .,District 1983-1, Pleasant Hill BART Station Area shall be deposited with the County Treasurer . Disbursements from the ..escrow fund shall be made in accordance with the Reassessment - for eassessment for these proceedings. The amount of any surplus. : remaining in the Escrow Fund after completion of the refunding; . : of the bonds being refunded in these proceedings shall be transferred to the Special Reserve Fund. Section 5.2. REDEMPTION FUND. The redemption fund . ,shall be maintained by the County Treasurer . All payments of ,_principal and interest installments on the reassessments, together with penalties, if any, shall be deposited in the redemption fund , which shall be a trust fund for the benefit of the bondholders. Payment of the bonds at maturity, or at . redemption prior to maturity, and all interest on the bonds - (including that with respect to the supplemental interest -:; certificates) shall be made from the redemption fund. Section 5.3. SPECIAL RESERVE FUND. The special reserve fund shall be maintained by the County Treasurer . There shall be transferred into the special reserve fund the amount of ,. $263,550.00 from the special reserve fund established for the 4 bonds being refunded with the proceeds of the bonds authorized herein. The special reserve fund shall be administered as follows and as described in Exhibit C hereto: A. During the term of the bonds, the amount in the special reserve fund shall be available for transfer into the redemption fund in accordance with Section 8808 of the Streets and Highways Code. The amount so advanced shall be reimbursed .to the special reserve fund from the proceeds of redemption or sale of the parcel for which payment of delinquent reassessment installments was made from the special reserve fund. B. If any reassessment is prepaid before final maturity of the bonds, the amount of principal which the assessee is required to prepay shall be reduced by an amount which is in the same ratio to the original amount of the special reserve fund, together with accrued interest, as the original amount of the prepaid reassessment bears to the total amount of reassessments originally levied in Assessment District 1987-1. This reduction in the amount of principal prepaid shall be balanced by a transfer from the special reserve fund to the redemption fund in the same amount. C. The amounts deposited in the reserve fund will never exceed 10% of the proceeds or maximum annual debt service, whichever is less. D. When the amount in the special reserve fund equals or exceeds the amount required to retire the remaining unmatured bonds (whether by advance retirement or otherwise) , the amount of the special reserve fund shall be transferred to the redemption fund, and the remaining installments of principal and interest not yet due from assessed property owners shall be 5 T 1 cancelled without payment. Section 5. 4. INVESTMENT EARNINGS FUND. The investment earnings fund will be administered by the Treasurer in the manner described in Exhibit C. Section 5. 5. EXCESS INVESTMENT EARNINGS FUND. The excess investment earnings fund will be administered by the Treasurer in the manner described in Exhibit C. Section 6. PAYMENT ON BONDS. The principal and interest on the bonds and interest with respect to the supplemental interest certificates shall be payable at the office of the Bank of America National Trust & Savings Association San Francisco, California. Principal and interest _ shall be paid by check, draft or warrant mailed to the registered owner of each bond and supplemental interest certificates at the owner ' s address appearing on the register maintained by the registrar on the 15th day preceding the date of interest payment or maturity of each bond. Section 7. REREGISTRATION. Any bond and supplemental interest certificates may be registered to a new owner by completing the assignment certificate on the reverse of the document and delivering the document to the registrar . Upon reregistration, any bond may be replaced by one or more bonds of the same maturity and aggregate amount in denominations of $5000 or any integral multiple thereof. Section 8. COVENANTS . In the event of a default in the payment of any bond or any installment of interest thereon, bondholders and owners of supplemental interest certificates shall have the remedies set forth in the Act. In addition, the Board of Supervisors makes the following covenants, which shall constitute a contract with the bondholders and owners of 6 ' 4 supplemental interest certificates: Section 8.1. FORECLOSURE OF LIENS. If any installment of the principal or interest of any reassessment levied in Assessment District 1987-1 becomes delinquent, the Board of Supervisors shall cause an action to be filed in the Superior Court of the County of Contra Costa to foreclose the lien of the delinquent reassessment under the authority of Section 8830 and following of the Streets and Highways Code of the State of California. This action shall ' be filed not later than one hundred fifty (150) days after the date of delinquency. Section 8. 2. ARBITRAGE. During the term of the bonds, the County will make no use of bond proceeds or the proceeds of the supplemental interest certificates which, if such use had been reasonably expected at the date the bonds are issued, would have caused the bonds to be "arbitrage bonds" within the meaning of Section 148 of the United States Internal Revenue Code of 1986 , and regulations of the Internal Revenue Service authorized thereby. The detailed provisions of the Arbitrage and Rebate Covenants are set forth in Exhibit C. Section 8.3. MAINTENANCE OF TAX EXEMPTION. The County will take all reasonable actions required to maintain the status of the interest on the bonds (other than that represented by the supplemental interest certificates) as interest which is exempt from federal income taxes and State of California personal income taxes. -7- I HEREBY CERTIFY that the foregoing resolution was duly and regularly adopted by the Board of Supervisors of the County of Contra Costa, State of California, at a regular meeting thereof , held on the 31st day of March, 1987. ATTEST: March 31 , 1987 PHIL BATCHELOR, Clerk of the Board of Supervisors and County Administrator By _ 0 S�4� Dep t 8 I BOND MATURITY SCHEDULE Assessment District 1987-1, Pleasant Hili BART Station Area Refunding, Contra Costa County, California SEPT 2 MATURITY PRINCIPAL INTEREST DATE AMOUNT RATE*' 1987 - 1988 5 ,000. 00 4 . 750 1989 5 , 000. 00 5 . 250 1990 5 ,000. 00 5 . 500 1991 5 ,000. 00 5 . 750 1992 245 ,000 . 00 6 . 00% 1993 480 ,000 . 00 6 . 200 1994 515 , 000. 00 6 . 40% 1995 545 , 000 . 00 6 . 60% 1996 580,000. 00 6 . 80% 1997 615 , 000 . 00 7 . 00% 1998 665 , 000. 00 7 .15% 1999 710 , 000 . 00 7 . 20% 2000 760 ,000 . 00 7 . 30% 2001 820 ,000. 00 7 . 40% 2002 875 ,000 . 00 7 . 50% 2003 945 ,000 .,00 7 . 50% 2004 1 , 010 . 000 . 00 7 . 50% TOTAL: $8 ,785 ,000 . 00 * Does not include interest with respect to the Supplemental Interest Certificates as shown in Exhibit A-2 . EMBITA - _ SUPPLEMENTAL INTEREST CERTIFICATES INTEREST RATE SCHEDULE (interest to be payable on each March 2 and September 2 commencing March 2 , 1988 and ending March 2 , 1990 or the date of redemption of the bonds to which they relate , if earlier) : SUPPLEMENTAL SEPT. 2 INTEREST BOND CERTIFICATE; MATURITY INTEREST DATE RATE* 1988 3.150% 1990 3.1500 1992 3.1500 1994 3. 1500 1996 3.1500 1980 3.1500 2000 3.150% 2002 3. 150% 2004 3.150% * Such interest rate is in addition to the interest rate for the related maturities of the bonds shown in Exhibit A-1. United States of America State of California County of Contra Costa REGISTERED REGISTERED Number $ REFUNDING BOND COUNTY OF CONTRA COSTA Assessment District 1987-1, Pleasant Hill BART Station Area Refunding SERIES NO. 1987-1 Without Obligation to Advance Funds (Section 8769 (b) , Streets and Highways Code) INTEREST RATE MATURITY DATE BOND DATE CUSIP NUMBER REGISTERED OWNER: PRINCIPAL SUM: Under and by virtue of the Refunding Act of 1984 for 1915 Improvement Act Bonds, Division 11. 5 of the Streets and Highways Code, (the "Act") , the County of Contra Costa, State of California, (the "County") , will , out of the redemption fund for the payment of the bonds issued upon the unpaid portion of reassessments made for the refunding of all outstanding 1915 Act bonds in Assessment District 1987-1, Pleasant Hill BART Station Area Refunding, more fully described in the Resolution of Intention adopted by the Board of Supervisors of the County of Contra Costa on the 31st day of March, 1987 , pay to the registered owner stated above or registered assigns, on the maturity date stated above, the principal sum stated above, in lawful money of the United States of America and in like manner will pay interest from the interest payment date next preceding the date on which this Bond is authenticated, unless this Bond is authenticated and registered as of an interest payment date, in which event it shall bear interest from such interest payment date, or unless this Bond is authenticated and registered prior to March 2, 1988, in which event it shall bear interest from its date, until payment of such principal sum shall have been discharged, at the rate per annum stated above, payable semiannually on March 2 and September 2 in each year commencing on March 2, 1988 . Both the principal hereof and redemption premium hereon are payable at the principal corporate trust office of Bank of America National Trust and Savings Association-Corporate Agency Division, or its successor , as Transfer Agent, Registrar and Paying Agent, in San Francisco, California, and the interest hereon is payable by check or draft mailed to the owner hereof at the owner ' s address as it appears on the registration books of the Bank, or at such address as may EX1HU BU U V have been filed with the Bank for that purpose, as of the fifteenth day immediately preceding each interest payment date. REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH IN THE REVERSE SIDE HEREOF WHICH SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS THOUGH FULLY SET FORTH HEREIN. This bond will continue to bear interest after maturity at the rate above stated, provided , it is presented at maturity and payment thereof is refused upon the sole ground that there are not sufficient moneys in said redemption fund with which to pay same. If it is not presented at maturity, interest thereon will run until maturity. This Bond shall not be entitled to any benefit under the. Act or the Resolution Authorizing Issuance of Bonds (the "Resolution of Issuance") , or become valid or obligatory for any purpose , until the certificate of authentication and registration hereon endorsed shall have been dated and signed by the Bank. IN WITNESS WHEREOF, said. County of Contra Costa has caused this bond to be signed in facsimile by the Treasurer of said County and by its Clerk, and has caused its corporate seal to be reproduced in facsimile hereon all as of the 16th day of April, 1987. COUNTY OF CONTRA COSTA - Clerk of the Board Treasurer (SEAL) Certificate of Authentication and Registration This is one of the Bonds described in the within mentioned Resolution of Issuance, which has been _ authenticated and registered on BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION as paying agent, transfer agent and registrar By Authorized Officer 2 (REVERSE OF BOND) COUNTY OF CONTRA COSTA ASSESSMENT DISTRICT 1987-1, PLEASANT HILL BART STATION AREA REFUNDING ADDITIONAL PROVISIONS OF THE BOND This bond is one of several annual series of bonds of like date, tenor and effect, but differing in amounts, maturities and interest rates, issued by the County of Contra Costa under the Act and the Resolution of Issuance , for the purpose of refunding bonds described in said proceedings, and is secured by the moneys in said redemption fund and by the unpaid portion of said reassessments made for the payment of said improvements, and, including principal and interest, is payable exclusively out of said fund. This Bond is transferable by the registered owner hereof, in person or by the owner ' s attorney duly authorized in writing, at said office of the Bank, subject to the terms and conditions provided in the Resolution of Issuance, including the payment of certain charges, if any, upon surrender and cancellation of this Bond. Upon such transfer , a new registered Bond or Bonds, of any authorized denomination or denominations, of the same maturity, for the same aggregate principal amount, will be issued to the transferee in exchange therefor . Bonds shall be registered only in the name of an individual (including joint owners) , a corporation, a partnership or a trust. Neither the County nor the Bank shall be required to make such exchange or registration of transfer of bonds during the fifteen (15) days immediately preceding any interest payment date. The County and the Bank may treat the owner hereof as the absolute owner for all purposes, and the County and the Bank shall not be affected by any notice to the contrary. This bond or any portion of it in the amount of $5,000 .or any integral multiple thereof, may be redeemed and paid in advance of maturity upon the second day of March or September in any year by giving at least 60 days' notice by registered mail to the registered owner hereof at such owner ' s address as it appears on the registration books of the Bank and by paying principal and accrued interest together with a premium equal to three percentum of the principal. . This bond is not subject to refunding pursuant to the procedures of Division 11 (commencing with Section 9000) or Division 11. 5 (commencing with Section 9500) of the Streets and Highways Code prior to March 2, 1990. I hereby -certify that the following is a correct copy of .the signed legal opinion of STURGIS , NESS , BRUNSELL & SPERRY a professional corporation, Emeryville, California, on file in my office. Clerk of the Board UNITED STATES OF AMERICA STATE OF CALIFORNIA COUNTY OF CONTRA COSTA ASSESSMENT DISTRICT 1987-1, PLEASANT HILL BART. STATION AREA REFUNDING SERIES NO. 1987-1 WITHOUT OBLIGATION TO ADVANCE FUNDS (SECTION 8369 (b) , STREETS AND HIGHWAYS CODE) REGISTERED SUPPLEMENTAL INTEREST CERTIFICATE REGISTERED SUPPLEMENTAL INTEREST CERTIFICATE RELATING TO BOND NO. Maturity Date Par Value: $ REGISTERED OWNER: REGISTERED. SUPPLEMENTAL INTEREST CERTIFICATE INTEREST RATE: On the dates listed below, except to the extent the - related bond referred to above shall have been duly called for prior redemption and payment of the redemption price made or duly provided for , the County of Contra Costa, California, will pay to the registered owner identified above, or registered assigns, but only out of the sources referred to in said bond , in lawful money of the United States of America, the amount (s) shown below, being partial semi-annual interest on the related bond referred to above, at the Registered Supplemental Interest Certificate Interest Rate per annum identified above, on its Refunding Improvement Bonds, Assessment District 1987-1, Pleasant Hill BART Station Area Refunding, Series No. 1987-1 (the "Bonds") numbered as indicated above. Such payments (other than the final payment hereon) will be made on or before each interest payment date commencing March 2, 1988 to and including March 2, 1990, to the registered owner of this registered Supplemental Interest Certificate by check or draft mailed to such registered owner at the address appearing on the registration books kept for that purpose at the office of Bank of America National Trust and Savings Association, San Francisco, California, as Agent, at the close of business on the fifteenth day preceding the interest payment date. The related bond referred to above, will continue to bear interest after maturity at the rate above stated provided that it is presented at maturity and payment hereof is refused upon the sole ground that there are not sufficient moneys available to pay same. If this Supplemental Interest Certificate is not presented at maturity interest represented hereby will run only until maturity. Final payment on this Supplemental Interest Certificate shall be made to the registered owner hereof upon presentation and surrender at the office of the Agent. This registered Supplemental Interest Certificate may be transferred and reissued, all in accordance with the Resolution of Issuance referred to in said bond, and the provisions of said Resolution of Issuance are hereby incorporated herein by reference. Pursuant to the provisions of the Resolution of EXHUBQT B Issuance this supplemental Interest Certificate may be redeemed and paid in advance of the above stated maturity date if the bond to which this certificate relates is redeemed in advance of its maturity prior to March 2, 1990 , in which case the interest represented hereby to the maturity date of the bond to which this certificate relates shall be paid to the registered owner hereof, without premium. This Supplemental Interest Certificate shall not be valid or obligatory for any purpose until the Agent shall have manually signed the certificate of authentication hereon. REGISTRATION DATE: County of Contra Costa (SEAL) Clerk of the Board of County Treasurer of the County of Contra Costa County of Contra Costa CERTIFICATE OF AUTHENTICATION This is the registered Supplemental Interest Certificate described in the within-mentioned Resolution of Issuance, and this registered Supplemental Interest Certificate has been duly registered on the registration books kept by the undersigned as Agent for such bonds. Bank of America National Savings and Trust Association as Transfer Agent, Registrar and Paying Agent By Authorized Officer Interest Interest Payable Payment Date (s) 2 ASSIGNMENT For value received the undersigned do(es) hereby sell, assign and transfer unto the within-mentioned Supplemental Interest Certificate and hereby irrevocably constitute (s) and appoint (s) attorney, to transfer the same on the books of the Bank of America National Savings and Trust Association as Transfer Agent, Registrar and Paying Agent with full power of substitution the premises. Dated: Signature (s) must correspond exactly to name (s) on face hereof Signature Guaranteed 3 EXHIBIT C ARBITRAGE AND REBATE COVENANTS Section 1. Definitions Applicable to These Covenants (a) Bonds. The term "Bonds" means the refunding improvement bonds, issued in the par value of $8,785,000 , dated April 16 , 1987, by the County of Contra Costa for Assessment District 1987-1, Pleasant Hill BART Station Area Refunding. (b) Bond Year . The term "Bond Year" means the twelve month period beginning on April 16 of each year and ending on April 15 of the following year , commencing with the period beginning on April 16, 1987 and ending on April 15, 1988. (c) Code. The term "Code" .means the Internal Revenue Code of 1986. (d) Debt Service. The term "Debt Service" means the scheduled amount of interest and amortization of principal payable on the Bonds during the period of computation, excluding amounts scheduled during such period which relate to principal which has been retired before the beginning of such period. (e) Excess Investment Earnings. The term "Excess Investment Earnings" has the meaning ascribed to it in Section 3 (b) hereof . (f) Excess Investment Earnings Fund. The term "Excess Investment Earnings Fund" means the account by that name created by, and held by the County pursuant to this Certificate. (g) Gross Proceeds. The term "Gross Proceeds" means the sum of the following amounts: (i) original proceeds, namely, net amounts (after payment of all expenses of issuing the Bonds) received by or for the -County as a result of the sale of the Bonds, excluding original proceeds which become transferred proceeds (determined in accordance with applicable Regulations) of obligations issued to refund in whole or in part the Bonds; (ii) investment proceeds, namely, amounts received at any time by or for the County, such as interest and dividends, resulting from the investment of any original proceeds (as referenced in clause (i) above) or investment proceeds (as referenced in this clause (ii) in Nonpurpose Obligations, increased by any profits and decreased (if necessary, below zero) by any losses on such investments, excluding investment proceeds which become transferred proceeds (determined in accordance with applicable Regulations) of obligations issued to refund in whole or in part the Bonds; (iii) transferred proceeds, namely, original proceeds of the Prior Bonds, and interest earnings and profits less losses resulting from investment of such original proceeds in Nonpurpose Obligations, which are deemed to become proceeds of the Bonds ratably as original proceeds EXHIBIT of the Bonds and interest earnings and profits resulting from investment of such original proceeds in Nonpurpose Obligations, discharge the outstanding principal of the Prior Bonds, all on the date of such ratable discharge; (iv) sinking fund proceeds, namely, amounts, other than original proceeds, investment proceeds or transferred proceeds (as referenced in clauses (i) through (iii) above of the Bonds, which are held in the Redemption Fund and any .other fund to the extent that the County reasonably expects to use such other fund to pay Debt Service on the Bonds; (v) amounts in the Reserve Fund and in any other fund established as a reasonably required reserve or replacement fund; (vi) Investment Property pledged as security for payment of Debt Service on the Bonds by an ultimate obligor or a related person or by the County; (vii) amounts received with respect to loans made with original proceeds of the Bonds, financing leases entered into for property acquired with original proceeds of the Bonds and other obligations acquired to carry out the governmental purposes of the Bonds; (viii) amounts, other than as specified in this definition, used to pay Debt Service on the Bonds; and (ix) amounts received as a result of investing amounts described in this definition. (h) Investment Earnings Fund. The term "Investment Earnings Fund" means the account by that name created by, and held by the County pursuant to the provisions hereof . (i) Investment Property. The term "investment ,property" means any security as said term is defined in section 165 (g) (2) (A) or (B) of the Code) , obligation, annuity or investment-type property, excluding, however , obligations the interest on which is exempt from income tax under section 103 of the Code. (j) Nonpurpose Obligation. The term "Nonpurpose Obligation" means any Investment Property which is acquired with the Gross Proceeds of the Bonds and is not acquired in order to carry out the governmental purpose of the Bonds. (k) Prior Bonds. The term "Prior Bonds" means the improvement bonds of the County of Contra Costa which are being refunded and called for redemption on July 2, 1987 , in the total principal amount of $8,785 ,000 as a result of issuance of the Bonds . (1) Purchase Price. The term "Purchase Price ," for the purpose of computation of the Yield of the Bonds, has the same meaning as the term "issue price" in sections 1273 (b) and 1274 of the Code, and , in general, means the initial offering price to the public (not including bond houses and brokers , or 2 similar persons or organizations acting in the capacity of underwriters or wholesalers) at which price a substantial amount of the Bonds are sold or , if the Bonds are privately placed, the price paid by the first buyer of the Bonds or the acquisition cost of the first buyer. The term "Purchase Price," for the purpose of computation of the Yield of Nonpurpose Obligations, means the fair market value of the Nonpurpose Obligations on the date of use of Gross Proceeds of the Bonds for acquisition thereof, or if later , on the date that Investment Property constituting a Nonpurpose Obligation becomes a Nonpurpose Obligation of the Bonds. . (m) Regulations. The term "Regulation" means temporary and permanent regulations promulgated under section 148 of the Code. (n) Resolution. The term "Resolution" means the Resolution Authorizing Issuance of Bonds adopted by the Board of Supervisors of the County on March 31, 1987. (o) Treasurer . The term "Treasurer" means the County Treasurer of the County of Contra Costa. (p) Yield. The term "Yield" means that. yield which, when used in computing the present worth of all payments of principal and interest (or other payments in the case of Nonpurpose Obligations which require payments in a form not characterized as principal and interest) on a Nonpurpose Obligation or on the Bonds, produces an amount equal to the Purchase Price of such Nonpurpose Obligation or the Bonds, all computed as prescribed in applicable Regulations. For the purpose hereof, the yield on a Nonpurpose Obligation that consists of variable rate Investment Property shall be- - determined as of the date the Nonpurpose Obligation is acquired and as of the first day of each Bond Year by assuming that the rate of interest will be the weighted average rate of interest for such Investment Property during the preceding one-year period (or portion .thereof in which the Nonpurpose Obligation _was outstanding) . With respect to a Nonpurpose Obligation purchased on its date of issue, the Yield for the first Bond Year shall be determined by assuming that the rate of interest will be the initial rate of interest for such Nonpurpose Obligation as determined under the prescribed formula on such date of issue (without regard to any fixed rate initially applicable to such Nonpurpose Obligation) . Section 2. No Arbitrage Covenant. The County shall not take, nor permit nor suffer to be taken by any other person, any action with respect to the Gross Proceeds of the Bonds which if such action had been reasonably expected to have been taken, or had been deliberately and intentionally taken, on the date of the issuance of the Bonds would have caused the Bonds to be "arbitrage bonds" within the meaning of section 148 (x) of the Code and Regulations promulgated thereunder . At no time will the amounts deposited in or credited to the Excrow Fund , the Redemption Fund , the Reserve Fund, the Investment Earnings Fund, and the Excess Investment Earnings Fund be invested in any form of investment which produces a yield greater than the bond yield. 3 Section 3. Rebate Covenant. (a) Creation of Funds. There are hereby created, to be held by the Treasurer as separate funds distinct from all other funds and accounts held by the Treasurer under the Resolution, the Investment Earnings Fund and the Excess Investment Earnings Fund. All interest earnings and profits on amounts in all funds established under the Resolution, other than interest earnings on the Redemption Fund and any other funds referenced in subsection (c) (5) hereof if such earnings in any Bond Year are less than $100 ,000 , shall, upon receipt by the County, be deposited in the Investment Earnings Fund. In addition, all interest earnings and profits on Gross Proceeds in funds held by the County shall upon receipt, be deposited in the Investment Earnings Fund. Annually, on the last day of each Bond Year or on the preceding business day in the event that such last day is not a business day, the Treasurer shall transfer from the Investment Earnings Fund to the Excess Investment Earnings Fund for purposes of ultimate rebate to the United States an amount equal to Excess Investment Earnings, all as more particularly described in this Section. Following the transfer referenced in the preceding sentence, the Treasurer shall transfer all amounts remaining in the Investment Earnings Fund to the Redemption Fund to be used for the payment of Debt Service on the Bonds on the next interest payment date and for such purpose, Debt Service due from the County on such date shall- be credited by an amount equal to the amount so transferred. (b) Definition of Excess Investment Earnings. The County shall calculate Excess Investment Earnings in accordance with subsection (b) and shall assure payment of an amount equal to Excess Investment Earnings to the United States in accordance with subsections (c) and (d) . The term "Excess Investment Earnings" means an amount equal to the sum of: (i) the excess of (A) the aggregate amount earned from the date of delivery of the Bonds on all Nonpurpose Obligations in which Gross Proceeds of the Bonds are invested (other than amounts attributable to an excess described in this paragraph (i) , over (B) the amount that would have been earned if the Yield on such Nonpurpose Obligations (other than amounts attributable to an excess described in this paragraph (i) ) had been equal to the Yield on the Bonds, plus (ii) any income attributable to the excess described in paragraph (i) . (c) Calculation of Excess Investment Earnings. Prior to the last day of the first Bond Year , the County shall calculate the Excess Investment Earnings referenced in paragraph (i) of subsection (b) . Thereafter , prior to the last day of each Bond Year and on the date of the retirement of the Bonds, the County shall calculate the amount of Excess Investment Earnings referenced in paragraphs (i) and (ii) of subsection (b) . Said calculations shall be made or caused to be made by 4 the County in accordance with the following: (1) Except as provided in (2) , in determining the amount described in paragraph (i) (A) of subsection (b) , the aggregate amount earned on Nonpurpose Obligations shall include (i) all income realized under federal income tax accounting principles (whether or not the person earning such income is subject to federal income tax) with respect to such Nonpurpose Obligations and with respect to the reinvestment of investment receipts from such Nonpurpose Obligations (without regard to the transaction costs incurred in acquiring, carrying, selling or redeeming such Nonpurpose Obligations) , including, but not limited to, gain or loss realized on the disposition of such Nonpurpose Obligations (without regard to when such gains are taken into account under Section 453 of the Code relating to taxable year of inclusion of gross income) , and income under Section 1272 of the Code (relating to original issue discount) and (ii) any unrealized gain or loss as of the date of retirement. of the Bonds in the event that any Nonpurpose Obligation is retained after such date. (2) In determining the amount described in paragraph. (i) of subsection (b) , Investment Property shall be treated as acquired for its fair market value at the time it becomes a Nonpurpose Obligation, so that gain or loss on the disposition of such Investment Property shall be computed with reference to such fair market value as its adjusted basis . (3) In determining the amount described in paragraph - (i) (B) of subsection (b) , the Yield on the Bonds shall be determined based on the actual Yield of the Bonds during the period between the date of issuance of the Bonds and the date the computation is made (with adjustments for discount or premium) . (4) In determining the amount described in paragraph (ii) of subsection (b) , all income attributable to the excess described in paragraph (i) of subsection (b) must be taken into account, whether or not that income exceeds the Yield on the Bonds, and no amount may be treated as "negative arbitrage" . (5) In determining the amount described in subsection (b) , there shall be excluded any amount earned on any fund or account which is used primarily to achieve a proper matching of revenues and Debt Service within each Bond Year and which is depleted at least once a year except for a reasonable carryover amount not in excess of the greater of one year ' s earnings on such fund or account or one-twelfth of annual Debt Service as well as amounts earned on said earnings if the gross earnings on all such funds and accounts for the Bond Year is less than $100,000. (d) Payment to United States. The Treasurer shall pay from the Excess Investment Earnings Fund an amount equal to Excess Investment Earnings to the United States in installments 5 with the first payment to be made not later than thirty (30) days after the end of the fifth Bond Year and with subsequent payments to be made not later than five (5) years after the preceding payment was due. The Treasurer shall assure that each such installment is in an amount equal to at least 90 percent of the Excess Investment Earnings with respect to the Bonds as of the close of the computation period. Not later than sixty (60) days after the retirement of the Bonds, the Treasurer shall pay from the Excess Investment Earnings Fund to the United States 100 percent of the theretofore unpaid Excess Investment Earnings of the Bonds. In the event that there are any amounts remaining in the Excess Investment Earnings Fund following the payment required by the preceding sentence, the Treasurer shall pay said amounts to the County to be used for any lawful purpose of the County. The Treasurer shall remit payments to the United States at the address prescribed by the Regulations as the same may be in time to time in effect with such reports and statements as may be prescribed by such Regulations. In the event that, for any reason, amounts in the Excess Investment Earnings Fund are insufficient to make the payments to the United States which are required by this subsection (d) , the Treasurer shall assure that such payments are made to the United States, on a timely basis, from any funds lawfully available therefor . (e) Further Obligation of Treasurer . The Treasurer shall assure that Excess. Investment Earnings are not paid or disbursed except as required herein. To that end, the Treasurer shall assure that investment transactions are on an arm' s length basis. In the event that Nonpurpose Obligations consist of certificates of deposit or investment contracts, investment in such Nonpurpose Obligations shall be made in accordance with the procedures described in applicable Regulations as from time to time in effect. (f) Maintenance of Records. The Treasurer shall keep, and retain for a period of six (6) years following the retirement of the Bonds, records of the determinations made pursuant to the provisions hereof. (g) Independent Consultants. In order to provide for the administration of these Arbitrage and Rebate Covenants, the Treasurer may provide for the employment of independent attorneys, accountants and consultants compensated on such reasonable basis as the Treasurer may deem appropriate. 6 RESOLUTION NO. 87/188 RESOLUTION AUTHORIZING SALE OF BONDS ASSESSMENT DISTRICT 1987-1, PLEASANT HILL BART STATION AREA REFUNDING The Board authorizes the Chair of the Board, the Vice Chair of the Board , the County Administrator and the Director of Community Development, or any one of them, to accept on behalf of the County the offer of Dean Witter Reynolds Inc. to purchase all of the improvement bonds .in Assessment District 1987-1, Pleasant Hill BART Station Area. Refunding, if such offer is submitted prior to April 7, 1987 , and if the total debt service to be paid on the bonds does not exceed the total debt service set forth in the Reassessment Report heretofore approved - by this Board. I HEREBY CERTIFY that the foregoing resolution was duly and regularly adopted by the Board of Supervisors of the County of Contra Costa, State of California, at a regular meeting thereof, held on the 31st day of March, 1987. ATTEST: March 31 , 1987 PHIL BATCHELOR, Clerk of the Board of Supervisors and County Administrator By Dep y RESOLUTION NO. 87/188