Resolution Number SJCPFA 09-03-17-01RBSOLL 11101` NO. SJCPRAI 09-03-17-01
A RBSOLL MOP OR TH9 BOARD OR DIRECTORS OR TF a .IAIP JUAN
CAPI%cIIIRAINO FIL BLICI RIP FIP CIII` G AU-IFORI-IN PILTHORIZING THE
BXBCIL MOP APD DELIVERY OF NOT TO BXCBBO 112,000,000
RBVM L B CaRTIFICATES OR PARTICIFATION, SBRIE:I 200c.1 (WAVER
RBVEP LIB), AIF F ROVIN G TH9 BXECL MOP AND D9LIVERY OR
CIBRTAIIIS DOCUM9P TSI AND A PR9LIMIP AIRN ORRICIAL STAlIEM91\ T,
APPROVING THE TIME AND FLACE POR TAk lb G ELEC7RO1+ IC BIDS,
AFPROVING TFS NOl11C19 INVITING BID.I MPCU AUTHORIZING
CIBRTAIN AC111OP S IP CONNECTION TF 9RBWITH
VI IF 9RBA"1I, the .Ian Juan Capistnano F ublic Rinancing Authadly is a joint
exencisEi all powers authanily anganized and exisling under the laws of 1hEi Stalle of
Califonnia (the "Aulhoniily"', with Ihe aui4 ari-ly la assisil in -It a financing and nefinancing cil
capilal impiioveimeints an behalf of lhei City of San Juan Clapisiranci (It a "Clity'l; and
WF BRBAS, -Ihe Authariiy has 'Ihe aulhoiilly is assisl in 1Ihe financing cif 'It a
acquisitlian of cer ain local Wale systEirni public capi-Ial impiiavernents and to nairniburse
-Ihe Ciily fan certain E xpenses incuured in coin nection 'Ihe iiewilh cm behalf all the Ci'Iy; and
WHEIRBAS, the Clity Council cif 1Ihe Citly has dE terminE d to acquine and cansliiuel
certain local wateu system resaunce supply, staiiage and distribUlian impnovemenls
consis'ling of CE rtain water E nterpnisE capi'lal irripnovemE nil pnojE cts of the City (thE "2009
F iiajeGl'", MCME particularly descuibed in the InstlallmE nt Purchase Ac1reE mE nt (identified
bElaw) and subject to adjusimen-1 as descuibed therein; and
WHaRSAS, the City has dEterminEd 'Ihat it would be in the bEst inteiesls oil the
Clity and cilizE ns of Ihe community to aulhanize 1hE pieparatian and delivery a-1 RevenuE
Cler ificalE s all F arl icipatian in an aggnE gailE pain cipal amount not la excE E d 1'12,000,000
(1 he "CE ri illicates"), ila linan ce -Ihe 200c.1 F rajE ct and dE erns i'I propE r, and nE cessily
nequiies lhat, (subjE ct 1I0 Section 6(E) belawl, bids be inviiE d fan the sale oil the
Cler ificales and ill ail if bids are salislactar)l, said CE rtifica'les be sold in the mannen and
all 'Ihe lime and placE heiieinaftei sett for h; and
WHEREAS, the Ci-ly and the Authority have previously enteiEd intla a certain
2002 Insiallmentl Furchase Agieemen-1 and a 2004 Inslallmernl FunchasE Agreement
with the Aulha ly (thE "Fanily Inslallrnien'l Furchase Agieemenils"', and causEd to be
exE culed and dE livened certain Revenue CE rtilicailes a'l Pariicipatian relaled ilo each
agrEE me ni, la linance certain watea system capital impnavemE nils; and
WF 9REAS, in ondE n tci accamplis h the financing o'I the 2009 Piojecl, the Ci'ly and
the Authority desire 'lo entE n inla That cer ain Ins1allmE nt Furchas a AgnE emenl, by and
be tweE n tlhe Cilly and 'It a Authariiy (the "2009 InstallmE nil F unchase AgneE man1"), la be
dated as of Apiul 1, 2009, the llanm all which is an file witlh the -IRE asuien cil the Aulhahty;
and
-1- 3-17-2009
VIIF 9F EA"1I, punsuanl) to It a 20011 InslalIMEinl Purchase Agneemen1l, 1hEi Aulhunily
will ague u la acquinei and sell 1a thEi Clity the 2009 Rrajeicl, all cif which cansis-1 all facilities
akin Iha prciduclion, slaragEi, 'Inansmission an *aalMent of waten or necyclad walen within
the meaning of Gavennman'l Clade 11aclion a58a.5Qc); and
WF 9REA9, pursuant 'la 11he 20011 InslallmEml PunchaSe AgreEiman-I, 1hEi Ciiy
punchasas 'It a pnojEicls idEintifliad (herein with Installment Raymenls (the "Installmeni
Raymenls") payable 11rom N ell REivenues of the Waller 'System, as defined (herein; and
WF BREA9, 11he Clily's obliga-lians unden 1hEi InstallmEinl Runchase FlguEiemEinl la
make Installment Paymen-Is from N ell F eventias will bEi on a parily wilh ills abligatian la
make nemaining Inslallmen-1 Raymenils room Nei Revenues unden the Ranily InstallmEinl
Ruuct asE1 plgneemenis; and
WF BREA9, 1hEi AItithonily will assign certain nigt is unden the Inslallmeni
Runct ase Agneemenil, including its nigh-) 11a nEi(leive such Installment Raymenls flim 'It a
City, to The Bank cit New Yari Mellon llnusll Clampany. N.A., as lnftistee illhe "Tnuslee")
punsuanl -lo an plssignmen-1 Agneument betweEin the Alulhonily and thEi TiltisieEI (111he
"AssignmEini Agreeman'l") and the TnusteE1 will cause to be executed and delivered
lhosa aer ain F evanue Clar ifiaales cif Par iaipallian, 9E111iEis 2009 +1thEi "CEirtillicates")
punsuanl la a 7nusl Agneemenll Ilhe "Trust AgneemE n1") by and amang -It a TuusleE , 'Ihe
Aluihonily and the Clily, the corms of which ane an file will the 1lreasunE r; and
WHER9AI9, the Ault ari-ly will cause the Cifly 1la ccinslrLicl and improve -IhE 2009
Rnoject punsuanl -la the Ins'lallmE n1 Punchase AIgnE emeni; and
WHER9FI9, 1hE ne has beE n pnESE nled la the Aulhanily fan approval the lkirm all a
RnEliminar� Offlaial Sialemenl and Cantinuing Disclosune AgreemEn'l to bE delivered to
puospE ctive pwichasE rs oil the Cleri HicatE s; and
NOW, 11F BREFURI3, E 9 111 R990L% 8D, 1ha1 ilhe Boand o1 Direclars (it the
Flrilhonily does t eneby resolvE as follaws:
HH(ITION I. Each all 'IhE fonegaing necilals is -Inue and carnEcl.
SWITION 2. In arder lo ilacili'lalE 1hE linancing o111he 2009 RnajE Cl, 1lhe Aulhority
has dE tenmined -It all ill would be in the best inlE neslls cif the Aulhodly, 'IhE City and the
aitizens of the community and nesull in significant public benelils within the meaning of
GavE nnrnien'l Code SEclion 65861la)-old), inclusive, -lo auffianize and the Ault arily henE by
au'll anizes the prepana-lion, sale and delivery 01 -It a CE diilicates in an aggregate pnincipal
amaunl not -lo Eixaead $12,000,000 in accardanae wilt -It a tarms and pravisians of the
nrusi AgneErnienl. ThE piioceEds of the Clerlificales shall be e)ipEndGd Io linancEl an
nEfinance the 2009 RnajEcl and -lo pnavidfi kin a neserniE Hund, if nEquired, and Ion
payrnian'l all -It a casts of 1hEi sales and EIEllivEiry cif the Clar ifiaalE S.
SOCTION 3. 1ha Flufficinily hereby appncives -It a appoinlmean-1 by 1hE City all Thu
Bank cif New N auk Mallon Trust Campany, N.A., 1Io act as Tnus11E1Ei an behalf all the
4- 3-17-2009
awnElns o1 'IhEI Cler ificalEIS, wish 1h(i dUlies and pawers a11hE1 llnuslee as sE1t 'kirl h in thEl
Trust Agneomeni.
SEICITION ,e . ThEI failms a'I 'IhEI Installment Purchase AgiiElemen1, 'It a 7rusl
Agimerrienl, Assignmen'I Agimemen1, thEl Assignmen'I Agimemenl and Clan-Iinuincl
DisclasunEl AclnEiUmonl pnEISUNEld al this mEIE11ing ane I eireby appnavEld. Bach and any of
the ChainpEinsan, 11he VicE1-ClhairpElrsan, IhEi Elxeculive Direcian, Timasuren and Secilelary
(It e1 "AulhonizEld Offlcer:i") all thEi Aulharit� anti heneby aulhcinized ICI EMICUIE1,
acl, nawlEldga and dEllMin any and all dciaumenis neiquinEul ICI can: urrimallEl 1ho
lransaclicins canlElmiplated by the In: tallrrieni Purchase A(INCemE10, llrus'l AdreElment,
the AssignmiElnI AclreElmen'l, the Cantinuing Disclasuno Agiieerrieni, thEl � aticEI all Sale an
Corlilicaie Rrinchase Agimer enil, as applicable and this Reiscilulian. Elach and any cit
the Au'lhanized OfficEini a'I thEi Auihariiy ane t eneby auihanizEld 'km and in iho namE1 cifl 11he
Ault aniiy Ila MCCU1EI and deliver and the SEICnErlaryl is hEinElby aulhar'zed and dinecled la
attest, the InslallmElnt Punchase AclnEI(ImiElnl, thEi lnus'I Agreomein'I and thEi AssignmElnl
AgreElmeint in substan'Iially the foiirris heilElby appravEld, with such additions thElnellcl and
chancles thElreiin as (i) ane nElcessary lo reflElCt 11he purchase cifl band inSLiiianCEI lar 11he
CE10ificates, if sci punchased a1 thEi City's Elleclian, cin (ii) a: are reccimmendEld cin
appravEld by Sliiadling Yacca Canlscin & Rault , a Rralossional Carparalicin, as Special
Counsel to 1hEi Cily ("Sp(icial Caunsel"), and Authanity CaunsEll and appiiaved by 'It e
cifficElr on afficers Elxeculling thEl samEi, such appncival is bEI canclusivE1Iy Elvidenced by
'Ihe Elxecutian and delivElryl 1heMEI01.
SBC7101� 5. 7hEi farm cifl the Cert ificates as set for h in thEi llrusi AgMemiElni (as
IhEI Tnusl Agneemeni may be madified pursuan'I to 11he pnEICEulind ; ecilcin hElnElcif) is
he iieby appravEld.
SOCTI01S 6. (a) SubjElct 11(i subsElctian (e) hanual, prapasals faii ihEl punchasEl col
thEl CElrlificales in IhEI amciuni cif nal ICI EIxceed 9I'Ia,acla,acia (1hE1 E1xacl amaunt to bEi
dErlen-ained by thEl Clity TnElasuren al the Clity cir his an hEm written dElsi(lnElEl iklllawing thEi
nElceipl at elecilranic bids via Rarilyoi lcir the CElrlificates) shall bEI iieceiivEld by the Bciarc
a1 Direcllars of the Aulharity a IhEI affices (it Hieldman, Ralapp & Asscia ialEis, ("Rinancial
Advisar") 'mwa McAr hur Ellvd., SUHEI 'I iaa, lruinEl, Calilkinnia �1'9161,k (NGI) Ma-85CI{I an
Manch 31, ximi cir cin an atlennalEl date and at thEl iirrie to bEI delEirmined by 1h(1 Ciiy
-IlreasunEm cif thEl Clity cir his cin heli wnidEln dEls ignEle.
(b) Subjecl to subseclicin (a) heVElai, 1hEi Financial Advisaii is hElreby aL1lhcirizEid
and dinEICIed to publish a no1iCE1 inviting Stich sealEld pncipasals by ane inser ion in ThEI
Eland Buyuu, a nElwspapou at gElneiial ciraulallicin, cinculated within 11he Slate, said
publicallicin 11a bEI al leasl livEi (5) days pnicir la IhEI date cif cipening Elleciiianic bids slaked
in said ncrlice cin la be determined by llhe Cliiy 7nElasuii(in of ihEl Clity cir his cir hEln writtEln
dEls ignEle attached heii(ita a: i bihibill A.
(c) Elubject to subsecticin (a) h0ffial, IhEI Financial Advisar is hEInElby aulhoiiizEld
and diilElcted ki caLIse la bEI lumished la prospElative bidders cap ies of thEl PNElliminaryl
Official 191alemlElnl and a natice inviting piiapasals ('$ alicEl all Sale"). Said ll� aticEl a'I Sale
shall bEI substan'lially as ; at fart in thEl faiim an 1HEI wilh 11he TnElasunen wilt such
-3- 3-17-2009
changes lhenelo as are deemed necessar)l by hen to reillecl the ienms of sale, on
ollherwiise. The failure, in whole on in pari, 110 comply wilt this flecllion 6(b) and 6(a)
heneof shall no11 in any mannen affect the validity of the sale of said Certilicalles .
(d) llhe Ci11y Treasuner of the City on his or hen written designee is hereby
authorized to awand the Cediilicates to 11he lowest nesponsible bidder Ion 11he Cedilicales
(on, in accordance wi-1 t subsection (e) below, -lo exE cute a cE r1 iilicate punchas e
agneE me nt will the underwnilen) providE d the pan amount of the Ce rtilica'lE s does not
excEed $'12,0C10,000, the true interest cast does not exceed 7.ao/. per annum, the final
matuni-ly occurs on or bellone calE War yEan 2x'15 and 11he punchaser's discount does not
excE ed 1.25%, excluding oniginal issue discount.
(e) Ncrlwi-lt standing 11he fanegoing, the Board ail DinEctans hE neby aulhoilizes the
Cler ifiaales to be scdd cin a negotiailE d basis to an underwirilen selected by N llneasuiien
upan 1E advicE al the Flinancial Adviscin, in the evernl Thal Eillhen (i) na bids are
submitlEd at 1 a campElli'live sale or (ii) all submitlEd bids anE nE jetted pursuan-1 to the
terms crl IhE Naliae all Sale or (iii) prion 1a -Ite sale daile the TnEasuren and the Clity
Managen delenmine in goad 'laith 'It ail aamgetillivE salE is nat likely la resuhl in an
accEptable It id an a bid mone llavonablE Than that obtainable by campelitive salE, suct
de'lerrriinailion 'lo be final and conclusive. In suah oases, 11he Cleri-licales shall bE sold
pure uant -lo a CE riilica'le Runchas a AgnEemE nt betvuE en the City and the undE rwniier -lu
be prepanEd by Special Counsel, which contains -It a matenial 11E nms and provisions cif
the CertilicailE s as sE t for h in the INciticE all dale. The 7neas unen is henE by aulhonized
and diredEd 110 select an undE rvuri-len fnam among the tap ten underwinilErs of municipal
obligations in Calilkinnia lion 2CI08, HE nor ed by the California Debt InvE slmenl AIdvisary
Clommissian, will 1hE advicE of the Ainancial Adviscir based on her delErminatian cif
ability -lo pE ricinm an a timely basis an the tE rms mas'l favanable to the Clity, hen sE leclian
la be linal and canclusivE and to accep-I a pnoposal friam an undenniriten far the purchase
o1 the Ceriilicales (pnavidE d such bid is acoep'lablE la 11he TreasunEr and is wi'lhin ihE
ganametens sell larth in subsecllion (d)) and llci ExeautE and dE liven 'IhE final fanm of such
Cera Hicate Runchas a Agree me nl an behalf all the &land.
SOC110P 7. llt a corm all the Rreliminaryl Official Sia-lemE n1 pnesEnted hE nEwillh
is henEby appiicived, subject to such ahangEs may bE apprcived by the Clity Manager cir
Ci-ly 1lreastinE n pnion to -It a distnibulion the necif. ThE Autharity ccinsEnls to the disinibuticin
by the City o11 a RnE lirvinary Official !1_Itallement 'lo pros pE dive q unchasE ns a1 the
CE rl Ficates in t he form dE E ME d final by t he Cli ly far punpases o-1 Rule '15c2-12 of 1hE
SeCL11iiilies and Exct ange Camrnission and to the pneparalicin all a final Oflicial
S1laterrienll in substantially the ikinm of It a PnE liminarA Offialal S1a-lemenl, wiilh such
addi-lions ll hE nelo and ct anges llheiiE in as ane HEcommended cir appnoved by the Ci-ly
ManagEin, and approved by 11he aflicE n on officeiis exEiauling -It a same on bEhall o1 the
Ci-ly.
SEC111CIIP 8. -the Autharized Oflicens and allhar afGcens al the AIulhcinity are
henE by aulharized, jointly and severally, to dci any and all Things and to execu-le and
delivEr any and all documenls which They may deEm necEissar)j and advisable in andEr
la aansurnmalE 11hei salE and dEdiver)i cif 'It a CertificalEis and cilheirwiise eflEictuale the
-4- 3-17-2909
purpases all this Resolution and suct aclions previously tal en by such officers are
hEireby iialified. the plulhcmily is herEiby aulharized la salicit bids tram municipal bond
insureiis, tci sE1lEK t an insunEin 10 provide municipal bond insurance wish nEispecl to
Cler ificalEis, and lci exec utEi and nEigoliale any agneEimEints necessary) in canneclian with
the pncicunEimenl cif su( h insurancEi, provided that such insurance provide debt serriice
savings on cither benefils to ilhe piKiposed tiiansactian, as delerrnined by ilhe City, thEi
City's execution cif an insurance corrimilment to be conciusivEi EividEince of such
dEiterminalion. Ela( h cr1 the above-iielerenced cifficeiis is hEireby aulharized is dinEict
E pEicial Counsel andiar It a Clity Ationney 'Io makEi any necessar)) Kivisions to thEi legal
dcicumenils and Rrelirriinaryl Official E'IaiElmenl to effEicltiaile 1hEi piiocurerrient of
municipal band insunancE1.
EEC-91ON 9. In the EivEinl an AIulhcniizEid Officeii is unavailablEi on Finable lo
Eixecule and dEdivEin any all the above-nErfenenced documents, any othEin member crf the
Baand all thEi Alulhcmity may validly executEi and dEiliveu such dacurrienils, and any
docunien-Is required to be signed by the E EIcnEitarl may be signed by any deputy
sEIcnEf 1 a r]l.
E BClIICIN '10.111 a Authorized Oflicers and such olhen officEirs of ilhe Aulharily are
aulhodZEid and direclEid, acling singly, to da any and all things and to execute and
deliver any and all da(uments which such officens may dEiern neces saol ar advisable in
onden la (onsumrrialEi 'Ihe sale and dEilivEiryl cd the CEirlillicates, and the delivEiryl and
perfanmance of 1hE Inslallmenl Purchase Agreemenl, AIssignmenl AIgiiE emenil, Trusl
AcIrE E mE M, Continuing DisclasunE AgnE ement, Notice cif E ale and if applicable,
Cerii-licale RunchasE AgnEE men) and othE rwise effE cluate 'It a purposes o'1 this
Resalution, including aclions wilh respect to senicin on parity lien obligalions oil the City
and such aclicros previciuslytalen by suct officens ane hEreby nalified and conllirmEd.
HCTION -11. This Resalullion shall lake effect irriimE dialely.
PAE E BD, APPROV810, AN D ADOPIIEID 'It is 17th day o-1 March, 2CI[19.
ARRROVED:
MA K IBLEEN, CFAIFiMAN
A- 3-17-2009
SIIAT9 OR CIpIL IRORfN IAI )
COUNTN OR ORAS GE )3s.
CIT)1 OR SAN JL AN CAPISIIRANO )
I, MARGARIIII R. MOM AF AN, appainled Agency Secnelaryl cif 1 he San Juan Cap isinana
Public Rinancing Auihoniiy al the Clity all San Juan Clapisinana, da heneby certify Thai the
ikmegoing Rusaluticin Na. 9JCRRA 09-031-171.01 was duly adapled by the 9ciaud all
Dinea tare crf the Elan Juan Capistnan a Rublic Rinancing Autharity all a special MEE lin g
llheneol, held -It a 17tr day cif Manch 2CI(19 by the fallowing voile:
AN 13S: DIR CTORcl: ME vata, F niban, Usa, RneE se and Chainman Nielsf n
NOE'EI CTORS: N c ine
A89&IM CTORS: IN cine
MARGARETR.LMONAH4N, Ageflcy S,&�Fetary
4- 3-17-2009
NOTICE C R SA IL 9
$111,13151000'
C ITM C R SAN JL A[1 CAPISIRM 0
Revenue CFiri ificialcis cif Pairtlairlalion, Series) 210091
Dale of Safe
Tuesday, M a nch 31, 9 a 09
10:00 a.m., Pacific Daylight Time
S113S 11CI 9E RECIEIV EDV 1�1 PAR1
Foo 1lurlhei information, please conlaal:
Jim Fabian, Poinaipal
Rieldrnan, Rlolapp &Aslsociales
'199 8 0 MacArl hur Boulevard, Suile ,111 G
Irvine, Oaliforuia 92612
Pt one: (949) 660-7317 Ham: (949) 414-8173
IS 0111CIE CIF SAILE
Preliminary, subjeat to change.
1 4f 13
$11,135,000'
CITY OR SAN JUAN CARISTRANO
Revenue Certificates cif Farliciplalicin, 1lenies 2009
NCITICIE IS H EREBN CIIVEP tt at all -or -none bids will be re c eivecl t y the Clity a l San Juan
Clapistrano (I o re in, the "Clity"), ibr the purct ase of $11,1 11,00G' par value c ertific ates of partic spatia n
des ignated " CIITY CIF SAN JUMN WIPISTRAN CI AEb ENUE CIERTIFICIATES CIF PARTICIIP�ITICIN,
SERIES 2009" (t erein, the "Clertifi(a tes"). /III ele (tra r is bids must t e submitted via AamitA, the electronic
bidding s)lstem, tip to the time and at the place speajfied as -bllows:
TIN E: 10:00 a.m., Pa( iilic Daylight Time
DATE: Tuesda)l, March 31, 1009
pro) ilded, hotniever, tha t witt a tit -lurther advertis ing, an d s o long a s an els c tra nic bid has not k een ac( e p ted
b) I tt a Clity, ele c tron is bids 1 iia Aanrty(E will be accepts d a t st i( I tim e a n d p lace on N arch 31, 2009 and
ea c h succ eeding Bus in ess Day tt a re a fter cin til tl o e a Hier of f'Ip ril 14, 24 a 9 or re c eipt b) I the Clity Clouncil of
a n a ccepti t le elec tra n is bid for tt e C to rti'licates .
Bids for the purchase oll the Clertific ates will k e recenied and can sit lered subject to the terms and
conditions des( ribed herein.
Plea s e note that tt a Clib l re serves tt is rigt t to can( el or rescl ecltile the sale of the Clertifica to s upon notice
given through D a mson Muni( ipal Nexis by 5:00 p.m., Clalifa rn is time tl a c la )l p ria r to the clay bids are
scheduled to t e received, and H tt a sale is rescheduled, notice ofl the new sale clate and time, ii an)l, will
k o given tt rotig I T1 a mson Municipal Nevis no later 0 an 5:00 p.m. Claiiflornia time the c lad prior to the n e w
clay bids are to k e received, and bids will t e received in the manner set ibrth above at the rescl ecltiied
da to and time as the Clity Clouncil may determine.
IIIESCIRIP110 CIH THE CERTIFICIA7IES
ISSUE. TI a Clertiilica to s will be issued in the original print !pal amount of $11,115,000', and bear
interest from the clate of tt eir issue, in still t oa lk-entry only lorm in denominations a l $5,00 0 and any
integral multiple thereof, maturing as shown below Linder the caption "MATL RITM SCIH EDL LE." The
Clertific ates a re subje c t to option a I redem ption and I spec ial m a n datory re cle m p tion p rior to m aturity as
shown below under tt a caption "OPTIONAL REDEMPTION." Pros n ectir ie bidders should note that the
to rm s of sale g e rm it adjustment of individual la I maturities. See "ADJL STN ENTS OF PRIP CIIPAL
PMCIU P TS" below.
Referen(e is made to the Preliminary Official Statement prepared in connection to the oflering of the
(lertiflic ates flor a c omplete dascriptian of the Clerti'licatos.
IN TE REST RATE. I n tere st will be calc uIatec l on the ba s is o1 a 360 -da) I dear com pos e d o 112 3 0 -day
months. The ClerIificates shall t aar interest from their clate at a rate or rates to t e determined at tt a sale
ttereo-1, but not to e;ioeed ten percent (10°/,) per anntirn. Interest on the Clarlificates is pa)lable
semianntiall)l on June 1 and December 1 in eact dear (tte "Interest Pa)lment Dates"); aommencing June
1, 7 0 0 9. Biddo la rs m a) I s n ecil ani I a t i rn t er ofl separate into res t rates, and I am I rate may be repeated as
' Priliminar}j, 81 it to of ante.
often a! (Ie: ired; provide (1, I owever, that (i) each intere: t rate speoi-lied must be in a multiple of 'IA Q of
1% or 118 a f '11A; (ii) a zero rate of interest can n at t e spec i -lied; (iii) each Clertifia ate shall tear interest from
it: (late to its stated maturity (late at tF a interest rate specified in the bid; (M) all Certifiaates oil the same
maturity date shall tear tl a same rate oil intere: t; (�i) tl a interest rate on any Clertiilicato rr mt be equal to
or t igher tt an tl a intere: t rate design a to d ton tl a preae ding rr aturity; and (vi) n a bic I will tea o cepted
mihicl provides -lor tl a aancellation and surrender oil any intere: t pa)lment or la r 0 a miaive r of intere: t or
othen ca ncess ion by tt at idder as a s ut stitt Ite lar p a yment in hill of the ptira hase prig a of the Certificate or
Cle rtilica to s . Bids Mail co, not conibrm to Me Bern s oA this ganagr ilh twu 11 tie n,'ecled.
PMMENT. Prinaipal of and interest on tl a Clertiliaates will be payat le ty Bank o1 Nevi Yorl N ellon
Trust Company, tl a trustee for tl a Certificates (l a rein, the "Trustee"), in lawful money tl ra sigh the
ilacilities of Dep a s itory Tru: t Clom pan � 1, or its n a rr inee.
PROCIEE[ IN CIS, CITM MIR I.ISUANCIE AN[ PURP0.19. Tl a aertiicates are t eing i:: ued t y the
City pursuant a Trtist Agreement dated as of Marct 1, 2009 (the "Indenture"), t etween the Clity and the
Trustee and pur:want to the provisions al tle California Clavernment Clode. The proceeds o-1 the
Certilicates will be used to (i) pa71 the costs of acgltiisitian and aonstruction of improvements to tl a Clitys
wate r s ystem ; (ii) lund a reserve lund for the Clerti-licate s, and (iii) pay the aosts of issuin gl the Ce rti licates .
C ENCIN IN,iITICIN S. The Ce rttlicates will be is s ued and delivered as hilly negi: tered Certificates in the
denomination of $5,00 C each or an, i integral rr ultiple tt ereol.
CATE OF CERIIIFICIATES. The Certilicates will I a slated tl air (late of delivery (tt a "Cllosing ❑ate"),
which is anticipated to be on or at ( tit April 14, 2009.
N AITII RITY S(3HE[ ULEI'), Tl a Certilicates will mature, or t o sut jest to mandatory sinl ing fund
redemption, on June 'I in eael of the years, and in the amounts, as set forth in tl a following tat ie. Tte
linal principal amotiat o-1 the Certificate,,, and tta final amount o1 eaal mattirit� of tie Clertificates, is
subjeat to inarease or neduation as descrited telow tinder the heading "AI[ JUSIN EN7 ON PRINUIPAIL
AMCIUNIIS." Bach bidder mu., t speaify in it; bid vitether, for any particular year, tie Clertificates will
rn a ture or, alteanatiNiely, t e subjeat to mandatory s inking -lund redemption in s tiah year.
fu aturity
% a ttirity
(Uaaember 1'
Princii)a I An G Lint
(DeaernterI
Prinair)alAlmount
2010
$270,100
2025
$470,000
2011
270,000
2026
495,000
201J
280,000
2027
520,000
2019
285, 00 0
2028
550,000
2014
295,000
2029
580,000
2015
305,000
2030
615,000
2019
315,000
2031
650,000
2011
325,000
2032
690,000
2018
340,000
2033
130,000
20,19
350,000
2034
115,000
2020
365,000
2021
385,000
2022
405,000
2023
425,000
2024
445,000
M Preliminiary, aut }eat to al a ng e. See also "A( ji it tmen I a f Pninai jaI Amaunts" he reir. .
AC JII SIMMENII OF PRIh UIPAIL AMCIU N TIS. The princip al amotints set forth in tl is Notice o1 Sale for
the Clertifiaates reflect aertain a;timatea of the Cit) and its financial a(hlisor NARI respect to the likely
intere: t rates al a winning lid and the piemiumldNcount spa aifiecI in such a winning bid described belaw
under the a aption "IIERMS OF SALE."
3 of 12
The total peina ipal amount of the C le rVicates an d tl e g nin cipal am a u n is paya t le in each of the yea rs s e t
north above are s ubjea t to adjustment, in $5,000 increrm en t , to rel e a t tl e a a tual interest rates and ani l
pnemitvrnlcliscount contained in tte winning bid, and to maintain substantiall)l level annual debt service
payments on the Clerli-licates. Tl a Clityl neserves the rigl t to increase or docrease the prinaipal amaunt of
am l rn a turity of the Clertilia a tes (or, in the case o l tl a term Certificates, tl a principal amount tl are of whin l
is suI jest to mandatory sinking Hund redemption an December 1 in anal )rear) in onder to aalievs seat
intention. The winning bidderwill be notified o1 any a(Ijv.ustment in principal amounts at or prion to the tiro e
the Clerti-licate <, are awanded. /Idjus trn e n t al tl a principal amounts will not affle c t tl a determination a l tte
winning bid. AI sucae:slul bidder may not witldraw its t id as a result of any al anges made within tl ase
flim its.
OPTIONAL REDEMPTION. The Certificates maturing on or after sea a rn t er 1, 2019 are subject to
prepa)lment prior to m aturity at tl a option oil the Cit}, among mattirities as directed t y the Clity and brl lot
within maturibl in whole at any time or in part, on any (late on or after Deaornter 1, 2018 in integral
multiples of 95,000 Ira rn ani l source of ilunds, upon notice as prop aided l ere in, at a prepays m e n t p rine
equal I to tl s principal amount tt ere o 1, witt a v.ut premium, together with interes t aeaev.ved to such date fried
Ior prepay Im ent.
MANOAT(IRY SINIIINCI FUNO REDEMPTION. Piny tidder may, at its option, speaify tlat one or
more maturities oil the Certificates will aonsis t ofterm certilicates wihia l are s ut jest to mans la to r) sinl ing
liun(I redemption in aonsectutive years imme(liately preceding tl a rnatv.urity thereof, a designated in tl a t id
ofl sial t idder; provided tt at na Clertiliaate may have si0ing fund pa)lments prion to Deaember 1, 2019.
In the event that the t id o1 0 a suaeessful t idder specifies that any maturity ofl Clertificates will be term
a a rtificates, suct term ce rtilicates will be subject to mandatory sinking fund iiedemptia n an Deco rn t er 1 in
eaah year so designated in tte bid, in tt a respective amount3 for shah years as set lorth abode Linder the
I eading "NATURIITII SCIHEDULE — THE CIERTIFICIATE:I", at a radarnption price equal to the principal
a m a un t thereof to be paid togett or w itl a a (rued in to rest thereon to tt a redemption (late, witl out prem ii urn .
SPECIAL MANOAITORY REONN PTKIN FROM NET PRCICEEOS CIF INSURANCE CIR EN IN ENT --
DOMAIN AWARD. TI a Clerli-licatos are also subject to vvedernption a; a whole, or in part an a pro rata
I a s is among rn a tv.vritiei, on any (la to , from tt a net p raceeds oil a n in sured a asualty or any aware I in
eminent domain proceedings with respect to the leasecl propert)l, whiah net praceeds are required to be
Med ilor sua t purpose un da r tl a Indenture, ata rede m p tion prise equal to 1001h oil the principal amount of
tl a Clertiilica to s to be viedeemed plus in to res t aaaviued tl ere on to the date fixe (I fon redemption, without
premium.
BOON EPTRII SII STEM. The Certificates wlen issued wiill be registerecl in the name of CIEDE 81
CIO., as nominee of T1 Depositary Trust Clarnpany, Nevi Yorl, New `earl ("DTCI"), and will to initially
issi ved a one co rtificate Ion ea a h oil the rn a twrities ofl 1:1 a Certificates. DTC I will be appoin ted depos itory Ior
tl a Clertiliaates and registered ownership ofl the Cie rtificates ra ayl not tl ere after I e trans lerre (I e)iaept as
A ra Odei I in tl a procedures, n vle s and nequirem a n is estat lisl a (1 I y I]TCI. The Trustee w sill p ay payor e n is of
principal and interest to OTC for subsegivent disILvrsement to DTC Participants wlo will vvemit such
p a yments to the Benellia ial Clviners of tl a Certificates.
SECURITN . Tl a Clertilic ates ane s go a ial of ligatia n soil the Clity, pa)lable s a lel} I Ira rn Reve n Lies, wl ich
consist Arimaril)l of Installment Purchase Paylments to be received by the Flutoeity from the Clity under an
Installm en t Pi urcl ase Ag rea m e n t slated as oil N arch 1, 2009 (tl a "Algreem en t"), by and bet) een the Clity
and the Alutl a rity and I amounts an hand Ira rn time to time in the kinds a s tabli< hed under r tl a Trust
Agneem a nt. TI a Instaiiment PLvral ase Paym ant; avie payat le by tl a Cit) l -horn net system revenv.ves of the
ait) I's 'A ate r .lystem . TI e Clity has pledg a (I wiateiv s e rvice cha ages as the sot raa ofl funds to m ake its
payments clue under tle Installment Pt. rahase Pig reement. The Clertificates are special of ligations of the
Clityl, payable from the Revsnv.ves, consisting primarily of Installment Purchase Payments to I e received
Ira rn tl a City, and are not secured b� l a legal a r e q ultabls pledge of, a r a hauge or lion upon, awl property ofl
U e Cit) or any of its income on receipts, e)iaept the Re\ienues. Neither the Itul -faith aa(I are(Iit oil the CIity,
or tl a At vtt a nity is pledged ilor the payor e n t a tt a interest on a n tl e p rin cipa I a I tt a Certiflicates a or Ion the
payment of Installment Purcl ase Pa) lrnents. Neither tle payment of tle prinaipal of a interest on the
4013
Clertiilic�tes nor the obligation of the Clit)l to make In:tallmant Purchase Pa)lments constitutes a debt,
liability or obligation of the Clity, a r the Aluthorit� ilor which any ; Lich entit�l is of ligated to levy or pledge any
form of taxation or for wl ich am l % uch entity t as I& fled or p ledged am l fa rrn of twiation. 11he City has no
ta)iing powier.
MUN ICIPAII CIER-iiniaAIIE INSU RANCIE. TI a Clity has provided in larmation to AS.' Lired Cluaranty
Clarp. in orden to pre -q tialify for munlaipal certificate in., tis nae, I: ut the Agency make., no repres antation
as to whethen gtic lifioation sl all oeaur •lor any municipal certificate insurance 4 n bid: :hall not be
conditioned upon tt a issti< nae o1 any.- tach poliay. Payment of anal in: tirance premium and s atisfaotion of
any conclitiom to the issuance a I a muniaipal certificate in, ur< nae palic)l t rid I<yrrent o1 any additional
rating agenc)l flee s l all to tt e s ale re: ponsit ilit� of the bidder. In partiaular, the Clit7 Hill not amens/ or
supplement the document: authorizing is: dance in arnl way < nd will not agree to enter into an}l additional
agreement with re, pact to tt a provision of any stia t l a lici 1. Failure of 0 a insurer 110 Issue ifs policy
shall not const illu-le cause for a failure or i eilusal by ,Ihe winning bidder ,lo a ccep delivery of or pay
fon the issue. Ilhe winning kidder ptircl<:ing insurance mti!t provide the Clity with the municipal
certifiaate instiranae aommitment, including tte amount of the policy Irereitirn, as well as infarrnation with
re: pest to the rntiniciii l aerti'licate in; Lirance polia)l and the in: Lir< nce provider 'lor inclusion in tt a find
Official Sty to m ent within Wo (7) business day: Hollowing tl a awiard of s ale t y the Citi and : t all pail all
cost, as., a a iated witt any deci: ion o'I the City to amend, supple m e nt, reprint and/or N ticker" tt a fin a l
C flicial Sty to m ent E s a re, Lilt a] � failure t )1 the win n ing t idden to timel)l I roNiide informatia n fa n the fin< I
Official Ht, tement or < ny sub: ec Lient event wihicl re., tilts in the m unicipal aertificate insurance discla a ure
printed in tt a final Official Statement being inacctir< to or ather inadeq mate.
IM EA EN P111ON . In tt e a pinion of Stradlin g, Ya aca, Cla rlson 81 Rai itt , AI Pra lessia nal Lawi
aorporation, Newport Beacl , Cali-Iornia, (lertifiaate Clounsel, subject, I aweve r to the qualificatia ns t et
fa rtt below, under existing law, the interes t on the Clertiilici to : is exa luded •Irom g ra € s inca m e fa r federal
income t.- x purpo,- a: and - uch interest is not < n item a 1 tax p re fe re n a for I tirpa! es of tt a fedenal
< Iternative rninimum ta)i imposed an indhiidual; and corporations, provide(/, toweNier, that, ilorthe purpo: e
of computing tl a altenn ative minimum tax imposed on corporation: (as defined Ior ilederal ina a m e taxi
purpaees), such interest is taken inta aacount in determining certain income and earning:. In the ILirtter
opinion of Clerti-licate Clounsel, interest on 0 a Clertifioates i,, e)iempt Irom personal income taxation by the
State of CIE Iiforni< . Bidden; are refereed to the Preliminary Ofllaial Sltato m a nt for E de; aription oI the
I roe o; ed opin ion oil Cie rtificate Clounsel.
Ilhe a p inions set fa rtl in the preceding paragraph are : ubject to the condition that the Clity ar d the
Aluthonit} comply with all requirement! of the Internal Revenue Codd oI 1986 that must to satisilied
s Lit . equent to the is: Liance oil the ClertHiaates in order that suct interest be, or c ontinise to be, e;ic luded
from gross inaa rne far federal income tax purpose:. Ilhe C1it)l and tic Aluthorit� will coven i nt to ca m p iy
with east s tich requirement. Failure to compl)l Witt aertain of stia t requirements m < )l caul a tt a ftkv ion
of stiah interest in gros t income for iledenal income tax ptirlm es to be retroacthie to the date oil is % uance
of the Clertific* tes.
DELIVERY CIN SECIU RITIIES. Delivery a I tt a Certificate: will be made to tt a succe s sful t idder at Ilhe
Ile p ository Ilrust Ciorn panel in New I ori, N ew 1 ori (on at a n )l a tt e r mutually agreeable location) a n on
aboutApril 1Al, 7009. Pa�Iment mu: t t e rn ade in ca: h, Flederal Re: erve Bank fund; , a att er immediate ly
ava ilable ftin cls.
ClALINCIRN IA OEST AN 0 INV ESTN ENT ADVISCIRN CIOMMISSICIN FEE. i1ttention of t idders is
directed to Clalilornia Government Codd Ellectiori 8856, whiah 1ro`iides that tta lead underwriter or the
purchas e r of tl a Certificates will be charged tt a Cali•lornia Debt and lmiestment Aldvi: cry Clommis: ion fee.
Qu SIP N UMBERS. It is < nticil� ted that CIU SIP num t an will t e printed on the Certificates, t ut
neither tt a ilailtire to print : uch ntirn t ers on a ny Clertifiaates nor a ny enroe with re: pest tt a rata she II
I V 13
ca n s titute cause for laiItire or re- lusal by tt a purcl a s er thereol to acne p t delivery al and p ay fa r the
Clertilicates in accordance with the terms thereof. All enpenses in relation to tte printing of QUSIP
nurn t e rs an tic Qertiliaates shall t e paid Ilor t y the Clity; provided, t owe rier, tt at the ordering oil and the
CIUSIP Service Bllre a u a harge for tl a assignment of said n tarn t ers shall t e the responsibility of and sl all
be paid for by tl a winning bidder.
Na LITICIATICIN CIERTIRICIAITE. Omar Sandmial Esq., Clity, Alttorney, Will furnish to the jurat aser of
tl a Qertiliaates at closing a "no litigation" ce rtilicate an t ehall of tt a Citi, certifjing tl at tt ere is me litigation
panding or threatened oancerning the validity oil the Qertilioates or of the title of the officers of the Clity
Clouncil or the Clity to tt eir respective ofliaes.
BIGHT OF OAINCIELLAITION, TI a success lul t idder will I aNie tt a rigt t, at its option, to cancel its
ptirctase o1 tta Clertilioates i-1 tIe Clity fails to amecute the Clerti-licates and tender the same for delimery
Ruthin e0 clays from the date of aviard tl ere al. In such e)ient, the sucoesslul t idder will be entitled to the
rete i nm of tt a deposit accorn pa n yin g tt a bid.
PRELIMINARY CIFRICIIAL STAITEN EN T AND FINAL CIFRICIIAIL STAITEN EN T. Tt a preliminary
official statement, distributed in connection with tte sale o1 tie Clertillica to s , dated TI urs day, Marct 19,
7 0 0 9 (tte "Preliminary (lfficial Statement") t as been deemed final t y the Clity council for purpa s es of Rule
19c2-12 ai tte Securities Excl ange Qonimisslon (the "Rule"), I tit is subject to reriisian, amendment and
completion in a lin a I aflicia I statement (tte "Final Official Statement") as p roriided in the Ride. The Clity
Clounail has auttorized a Preliminary (3filicial Eltatement and Ainal Official Statement relating to the
Clertiliaates, a cap)l of wt ich is amailatle on the Internet at wwvi.fieldman.com. Upon request, limited
qt antitia s o1 the Preliminary Oflia ial Statement will be lurnis t ed upon reQtiest made to Fieldman, Rolap n &
Associates, 19900 MacAlrthur Boulevard, Suite 1100, Irvine, Cali-lornia, 92612, (949) 660-7340. The Clity
Qouna it will da liver to tie puichas e r a f tie Certificates a certilia ate date! I tic ale s ing Uate to the e f to ct that
the Qityl Oloumail has reviewed each o1 the Preliminary Official Statement and Final Clflicial Eltatement and
I as determined tt at as at tt a (late oil eact tl ereol, to the best o1 its I nawledge and belied, that a ash of the
Preliminary Chia ial Sita to m e n t and Final Oflia ial Statement dae s not contain an untrue statement o1 a -
material laat an omit to state amyl material chat necessary in order to male tte statements made, in lightol
tie a ircumsta nces under whish ttey were made, not misleading. Up to 100 copies of the Flinal Official
Sta to men t will t o turn ished to the s ua cesslul bidder at no cha rge within 7 bus iness da)ls all the awa nd ofl
tt a (le rtificates .
CION TINUINCI CIISCILOSURE. The Clity will covenant to provide, byl not lateii tt an eight months after
tt a end of the Qity's fiscal year (p re gently June 30) am(1 commencing March 1, 7010, with the report for the
licca I )leai a n cling June 30, 2009, an annual report whin t stall contain pertinent operating and I lim a n a ial
inlormation al the Clity relating to tla Clerlilicates as mare dully desorited in tie Preliminary Official
Sta to rnent (tt a "Annual Report"), and to provide notices of tt a occurrena a a1 certain en urn a ra ted material
events. The Alnnual ReportNull be filed by tt a Trustee os a dissemination agent (i1 the Clity has appointed
such a disc e rninatio n agent) on behalf of the Cit)l with eact Nationally Rea ognize d N un icig al Sea urities
In-lormatiom Reposita ry . Tie n a tices of material events will be filed t y the Trustee or dissemination agent
on Wall l all al t1 a Clity with tic N un icipa I Securities Rulemaking Clity Cla un cil. Tl a specific nature of the
inlosmatian to be contained in tte Annual Report or tie notices of material events is summarized in the
Preliminary Clflicia I Statement under the o a p tion " OON TINUIN CI DISCLCISURE." These covenants have
been made in older to assist the Underwriter in complying with Securities and Eaichan g e Qom m ission Rule
15c2 -12(b)(5).
TERN S CIF SALE
BASIS OF A1f4AIRII. The Clerti'lica to s will t e awa rdec I to the nese a n s ible bidder whos e t id produces
the lowest true in to re s t cost on t1 a Qertilia ates. The true into res t cost s p e cilia (I in any t id will be tha t ra to
wl ich, when us a (I in earn puting the present value of prina ipal and interest to be p aid on all Certificates
-Irom the expea ted date of delivery (wt ich N assurn a cl fa r a omputatio n a I puaposes to be Alp ril 14, 20 0 9 ), to
their respective maturity elates, or mandatory sin l ing ilund redemption elates in the case al term
certificates, prodtiaes an amount egtal to the purctase price (including any prernitrn or (liscaunt)
6of1:
specified in such Lid. Fon purposes of compriting the true interest cost rreprresented ky any bid, the
pt ret ase pi ice s pecdlecI in suet k id shall t e equal to tie par am aunt oil the Cle rti-licates plus an) I piemiurm
specified in stah bic or less any viscount specified in such bid, and tie true intenest rate shall be
as Iculi tec by the use o-1 a sem iannual interval of corn p a ending interes t bas e d on the Intei est Pa yment
Elates for the Certificates. In the erient o-1 a tied bid, the pnooec ure lar (letermining the winning t id will be
the toss oil a coin to k e condua tec k y the Clity Clouncil among sum l k iddens whose bids have p no(luaed the
tie.
ALL CIR WINE BIC. An)l piospective purcl aser may submit a bid fon the Clertificites, plovlclecl that if
any o-1 the Cle rtificates i ret id fora, then all of the Clertiilicates must k a k id fon.
DISIC IC]UN 7. A dis a ount may k e proposed; howe`ier, no bic I will be considered fon less than ninety
Eight Point "leventy-Fine perrcent (98.a5'/a) oil tle parr value of tto Clertificates offerred fon sale. Alny
discount will be base(I on an c e a n sidene(I as it relates to the aggnegi to principal amount oil the
Clerti-licates, as set fortl in this Notiaa of "li le.
HORN CIF 9110. Mll bids rntist to unconditional. Each bW must to in accon(lanae witl tie terms and
conditions set -lorth I enein. Bids will only be accepted Niia RAR17-W ptimtrint to this Notice until 10:00
a.m., Paoi-lic Daylight Time an the date set fortl ilon nec(iipt al bi(s. To the extent any instruations oar
dirrection s set forth in FV RITY® conflict with this Notice, ti a to rm s a I tl is Notice sl all contnol. Fon ilurthei
inionmatian about AARITW, potential bidders ma}I contact tie Financial AOiison, Fieldman, Rolapp 81
Is socia tes at (949) 660-7300 a r FIA RITW at (71 a ) 84 9-9000.
C ELIVERY AIN E PAYN ENT. It is estimated tt i t delivery of the Clertificates will be made to the
Pura l asea on or abo t t Alpnil 14, 31C4. Payment a I t1 e p urahase puc(i (less the amount of the good faith
deposit mentione(I below) mast k e made in Binds irnniec iately available to tt a ait� Cot nail.
ELECTRCINICI BIC S. Eleatra nic Bids Niia FIS RITY(N (the "Electronic Bidding system") will k e accepted
in accondanae witl this Notiae a I sale tintil 10:00 a.m. Pacifia Day ight Time, Mancl 31, 2004 , but no bid
will ke reaeived affen this time. To the extent an)l instnuctions ou c$iections set -lorth in AARITYC aonfliat
witt this Notice of Sale, tl a tenms of this Notice shall aantial. Fon lurthei inlarmation akout FIARITW,
potential biddeus may contain t Fie Idman, Rolapp & Alssoa iates on PARITYCI 8t 1399 Bnoadwiay, 2r' Floo i,
Nevi Ya n1 , Nevi Yo n1 10018, telep hone (212) 849-5000.
WARNINCI REGARDING ELECrIRONIC BIDS. THE CIITY CIOUNCIII WILL ACCEPT Bills IN
ELECITRON ICI FCIRM SIOLE0 THROUGH PARITY CIN TFE OFFICIIAL BIO FORN CIREAITEEI FOR
TFAIT PU RPOSIE. EAICF BIDEIER SUBN ITTING AN ELECITRON Q 13117 UN DERSITAN US AIN D AIGFIEE51
Bl DCIINCI SO THAIT IT IS SOLEL) RESPCINSIIBL E FOR A11.1 ARRAN CIEN ENTH VI ITH PAIRITII, THArr
TF E CITY CICIUN CIL N EITHER EN DCIRSES N CIR EXPLICIITL Y EN CIOURAIGESI THE UHE OF PARITY,
AN D THAT PAIRIT'd IS N CIT AICITIN G AS ;IN AIGENT CIF TF E CIITY CIOU NCIIL . IN STRUCITICIN s AIN II
FCIRM9 FIC]R SU BMIT-91N G ELECITRON IC BIDS ML ST BE CIBTAIIN EO FRON PAIRITA, AND THU CIITY
CIOL NCIIL ASIclU MESI N O RESIPCINSIIBIL ITY FOR EN SIL RIN G OR V ERI FMIN G BIDDER CIOMPLIAINCIE
W ITH Th E PRCKIEDI_ RES CIF PARITY. THE GITY CIOL NCIIL SIHAILL AISSUN E THAT AIN Y BIO
REC]EIVEEI THRCIUGH PAIRITYI HAS BEEN MAIDE BY AI DLJ L Y AUTHORIZED ACIEN T CIF THU
BIDDER.
THE CUTIN CCIU N OIL "ILL N AIKE ITS BESIT EFFORTS TCI AICICIOMMCIDAITE ELECTRON ICI BIOS;
HOVI EV ER THE CITY! CCIUN CIIL, THE FINAIN CIVIL ADV ISCIR AINII CIERTIFICIATE CCIL. N SEL AISISUN E
NO REIcIPCINSIBII ITYI F C]R AINY ERRCIR CIONTAINED IN AINY BID SUBN ITTED EL ECITRCINICIALL Y,
CIR FICIR FA III. UAE OF ANN BIO TO BE TRAN SN IT -IED, RECIEIVEII CIR OPEN ED AIT TH E OFFICIIAL
TIME FOR RECIEIPT OF BIDS. THE OFFICIAL TIME FICIR RaCIEIRT CIF Bills V< ILL BE LIETERN INED
BY TF E CIITII CIOUNCIIL AT THE PLAICE OF BID OPENIN G, AND THE CITU CCIUN CIIL sHAILL N OT BE
RRQU IRED TO AICCIEPT THE TIME KEPT BY PAIR" As TF E CIFFICIIAIL TIN E.
GCICID FAITH DEmIIT. A good -laith deposit (tl a "Deposit") in tt a i mount of 9110,000, payable to
the order of tie "Clity a'I Alin Juan CN p sitnano" is iequined from the p urahasen of the series 2009
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Clertificates ("Purchaser") stil Sequent to award of sale. llhat purct aser is required to wire tnansfer such
arnaunt W later tt an 3AQ PM N a Yarl Clity time on tt a 110it t usiness day 11ollowing tt a award, to the
Clity per wire in structia n s tote Ara Aded by tI a Clity to the Purchas a r. III suet Deposit is not receb ied t y
tl at time, tt a award of sale maybe rescinded by the Clity. No interest an 0 a Deposit will accrue to the
Purchaser. The Deposit will be applied I to the purchase price of tt a 2009 Certificates. The Deposit
aacompamling any acaepted bid stall be casted and the procea(Is thereon applied to the purchase price.
In 0 a event the s uccess-lul bidder -lails to t onor its aacepted I id, the Deposit will be rretaina (I by the Clit}I as
and for lull liquidated damages.
TIRUE INTIERESIT CIOSIX Bidders are requested to supply a calculation of the true interest cost on the
Clertiliaates to tte Git)l Ca yin cil an the basis of their re s pecth a bids, wt ich s t all be aonside re d as
in'lormative only and nat binding on either the t idder or the Clity Clouncil. It a true interest cost specilied in
an11 bid viill be tl at nate whict , when used in compriting the present �ralue of all pays ents on principal and
interest to be pais I on all Caertificates from the date of origlir at delivery (v it ich is a n ticip a ted to be � Ip ril 14,
7 Q Q 9) to tt eirr respective matt irit)I dates or m an da tory sin l ing fund redo m p tion dates, p roduces a n amount
eq nal to the p urahase prise (including and quem ium on discount) sF ecilia cl in sriah bid.
UNDMRIMRITIING CIROUA. Each tidder is nequested to lumish the names of all joint managers
participating 1n the bid. Tlhe 3Liccess lul bid(ler\Aiill t req Lured to sribmit a list of all s!lndicate rnarntels in
addition to tt a managers n a t later than ail t ours after receiving a verbal avuard.
RIGHT OF CIANCIELUITION OF 6V It E ON TIHIII CITm CIOUNCIIL. Tt a Clity Cotinail reserves the
rigt t, in its sale disaretion, at any time to aancel tt e F ublia sale of the Clertificates. In suct e\lent, the Clity
Clounail shall cause notice of aancellation of this invitation for bids and the ptik lic sale of the Clertiliaates to
I: e aammUnicated tl rougI Thomsan M(micip, i News as promf tly as practicable. Hawever, no -lailure to
ALIt list 3Lich notiae ar an51 de-lect or omission thenein shall afloat the cancellation a I tt a ALiblia sale of the
Clertiliaates.
RIGHT TICI N aDIFN OR AMEND. It a Cit}I Council reserves the riglt t, in its sole discretion, to madify -
ar amend tt is Clf icial Notice o-1 Sale inclLuling, t Lit not limited to, tt a rigl t to adjust and change the
principal amount and prinaipal amortization sahedule oil the Certificates being ofered, hmiever, such
rnodilioations or ameodments shall be made not later tt an 9:00 p.m., Clalilornia time, on tl e t miners day
prior to the bi(I apening and communicated through Tharnson Municipal Nevnis.
RIGHT CIF POSI7PCINEMENTI ON ThE CIITY CCIUNCIL. Tie Clity Clauncil reserves the right, in its
s ole discretion, to postpone, Irom time to time, tt a (late es to k Iia t e (I for tt a reoe ipt a I bids . / In y s uch
F ostponem e n t will be corn rn unicated tt ra ugh Thomson Monicipal News n a t later than 5:Q(I F .m ., Ca lilornia
time, on tte k Lisiness day prior to any announeed (late fan receipt a I bids. I -I any date is postponed, any
alternathie sale date will to announced N iia Thomson Mc nicipa 1 Nems by 5:90 g .m . (Jaii'loin is Mime on the
t usiness day g ria r to such alternative sale date. Cin any st is h alternative sale date, any t idden may submit
a bid for the p urchase of the Clertiflrcates in conform ity in a II respects with the provis ions of tt is Ofliaial
Notiae on Sale, except for the date of sale and except for the ct anges annOLInced by Thomson Muniaipal
hews at the time the Gale date and time are announced.
RIGHT CIF REJEUTIICIN. TI a Clity (launcil reserves 0 a riglt t, in its discretion, to reject any and all
k ids and to waive aml irrregularit)l or informality in any bid.
PROMPT AMARO. Ain authorised ofllice r of tt a Caitrl Caounail ►mill tail a action awarding 0 a Clertiflicates
or rejecting all bids not laten than 3:QO p.m. PS11 on N arch 31, 2009 F roNilded that tt a award ma}I be made
alter tt a expiratian a I tt a specified time if the winning I idden has not ghien to the City Clauncil a notice in
wniting oil the withdeavial of such bid.
CIERTIIFI(IPMION OF RE(]FNERINCI PRiaE. Tihe sucaessflril I idder will, as a I tl a date the
Certificates are sold pursuant to tl is Notice o-1 Sale, certify to tt a Clity Caounail tt a prices at whiah it
reasonabi)I e�ipects to initiall)l offer each matririt� of tte Clertificates to tte genenal public (the "Initial
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Offering Prices"). For ttis purpose, tte general public Claes aat inalude certificate hooses, trol,ers or
s irn flan persa n s or organizations acting in tt a capacity of umda rwriters or v,it olei a lers.
The s ucce s silul t idder agrees tt at, on or prior to the C]Ios ing Date, it will as ttiall� I ofleo 1000/i of each
mattirit)I of tt a Clerti-licates to the general public in a ton fide publia offering lar prices equal to or less
than tt a Initial Oflering Price s .
The Underwriter agrees that, prior to tt a Cllosing Date, it v+iill deliver a aertiliaate slated as of tt a Cllos ing
Date in loom anfl substance attached as Exit ibit 1 and satisfactory to Clertilicate (Iounsel.
AUDIT ICINA11 IN FORMAT ICIN AVAIILABLE. Req rye s is for additional in-lorm ation at out the
(lertificates , tt a Clit) Caounail or the Ci) maybe dire ated to the Clity's Flinance Clepartment, Clindy Russell,
/Issistant Enecuthie Direator, telephone (f d <) i 4J-9301; on the Clitys Certificate Clounsel, Sltradling,
Y occa, Claris on & Rautl , attention: Kort Yeager, telephone (f � fl 725-4169; or, tl e City's Flinancial
/ldvisor, Fieldman, Rolapp S Plssooiates, attention: dim Rabian, telephone (949) 660-7397.
APPROVED by tt a Clity Clouncil of tt a Clity oll :Ian Juan Clap istrano by resalution adopted N arch 17,
2009.
Alss istant Clit! I N anager
E af12
9XH 19111 .I
Recrfferiing Mice Cler iiica- e
CITY OF SAN JUAN CIARISIIRAN Cl
Revenue Cie ri iiical es all Rarticipatian, Slenies 2009
CIBRTIFICA119 CIF RL RCH AIS9R
The undersigned, on behalll oil , as underwrriteii (tl a "L nderwniten") of tie
above -captions d cer i'licates (the "Cer ificates"), hereby conliiiirna oLin advice that:
(i) Has( cl upon neasonat le expectations and actual ilacts which existed on
being the date upon wl is l the Cit71 o-1 plan Juan
Capistnano (the "Issuer") sold the Cer ilicates to tl a Underwrite n (the "dale
Date"), the L riderwrriteii neasonat Ill expected to sell a slit stantial amoLint 0.1
each m� tunity o-1 the Cer dicates (being at least 100% o1 eaa t maturity) to the
general publia (1011 pLinposes oil this Cer ilicate, "g eneiial pLit lic" excludes
cer illicate houses, brokers ou sirn ilan pens ons or oirgi nim tions acting in the
capacity o-1 underwritens oir mil olesalens) in � bona Hide pLit lic opening � t the
puices, on in the a � a( o l obligations sold on a yield basis, at tl a uespeative
yie Ids (tog ether the "Initial Of erin g Prices") set for l in 8xhibit A attached
hereto and by tl is neleiienae incorporated herein (these gnices ane also
shown oil the a ogre n o1 tl a Oflicif 19tatern ent).
(ii) The a g gnega to oil the Initial C flening Rnices is $,
(iii) PIs of the di to hereol, 100% o f the Cer i-licates of each maturity wene
actually offened to the genera I put lic in a bona hide public oflening ton the
Initial Offering Rnices.
(iv) Pis o1 the dale []ate , the L nde rwniten, to king into a aaoiint market conditions,
had no neason to believe � ny oil tt a Cert iilicates would t e initia Ily sold to the
genes I publia at puices greaten tl an the Initial C ffening Pnices.
(v) PIs oil the dale [late, other than the , and
maturities oil tl a Cer ificate s , at k as t 10% of each matuirity
of ti a Clertifrcate s was initially sold to tl a ge ne11al public 'br the nespea tive
Initial Opening Rnices.
(vi) In our opinion, tl a Initial Of Bring Rnices do not exceed tt a lain rn� nket value
of said ru atunities o-1 the Cer ificates to tl e g enenal public as of 0 e dale
Date.
(vii) The a stablis t ra ent of the Reserve Fund in the amount of the Reserve
Req uinement was �rital to the ma0eting of the Cer illicates and neasonat ly
nequire d to assure the payment oil det t service on the Clerliliaates.
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Clanitalized terms U.'ad heiiein and nat otherwise dellined shall have the meanings
ascribed theiieto in tt at certain Indenture ofl 7nust, dated as of Manct 1, 2009, b}I and between
the Is s Bien and E anl' of l� ern Yo4 N ellon lliim t Clom pany, as trustee, mitt onizing the issuan c a of
the Clertific ates.
Dated: , 2009
as Lnc erwriteli
Ey
IS a me,
ilitle
11 of 13
N atunity Date
June 1
" Stated a9 a percentage of pan.
EM IRIT A
Rnincipal Interest Aeofleiiing
Amount Ra to Rnice
$ % 5i
9XH 19171 B
AIltact compulations oil arbitnage yield underr Ileclion 148, Fonm 8438 -CI ca n putations and
CIDIACI aorn pulations