Resolution 11764CITY OF ALAMEDA RESOLUTION NO. 11764
A RESOLUTION EXPRESSING THE INTENT OF THE CITY OF
ALAMEDA TO ISSUE REVENUE BONDS IN AN AMOUNT NOT
TO EXCEED $20,000,000 IN ORDER TO FINANCE CERTAIN
FACILITIES OF KQED, INC. OF SAN FRANCISCO AND
APPROVING RELATED ACTIONS
WHEREAS, the City of Alameda (the "City") is a municipal
corporation and charter city duly organized and existing under a
freeholders' charter pursuant to which the City has the right and
power to make and enforce all laws and regulations in respect to
municipal affairs and certain other matters and to exercise all
rights, powers and privileges granted by the Constitution and
general laws of the State in accordance with and as more
particularly provided in Sections 3, 5, and 7 of Article XI of
the Constitution of the State of California and Section 1-2 of
the Charter of the City (the "Charter"),
WHEREAS, Section 37110.5 of the Government Code of the
State of California provides that the City Council may authorize
and provide for contributions to nonprofit educational radio and
television stations, provided all of the following conditions
exist:
(i)
The purpose of the contribution is to enable the
citizens of the City to enjoy greater educational
and cultural advantages,
(ii) A substantial number of the residents of the City
live within the reception area of the station,
(iii) The station regularly broadcasts programs which
have educational or cultural significance,
(iv) The contribution is to the general funds of the
station and not for or in connection with any
particular program;
(v) The contribution is not accompanied, directly or
indirectly, by any direction of, sponsorship of,
control of, or restriction of any program or the
content of any program;
and providing financing assistance to nonprofit educational radio
and television stations satisfying the foregoing requirements is
a proper means for the City to provide for contributions to such
stations and is a public purpose in which the City has an
interest.
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WHEREAS, KQED, Inc., a nonprofit educational television
station which serves the City and satisfies the requirements
specified in the preceding paragraph, has contacted the City to
propose that the City assist KQED, Inc. in the financing of a new
facility located in San Francisco, California by issuing revenue
bonds of the City on behalf of KQED, Inc.;
WHEREAS, bond counsel has indicated to the City that,
under existing laws, the interest on such revenue bonds would be
excluded from gross income of the owners thereof for federal
income tax purposes and be exempt from California personal income
taxation;
WHEREAS, KQED, Inc. would benefit from the issuance of
such revenue bonds by the City by being able to finance at
tax-exempt interest rates and the granting of such benefit by the
City to KQED, Inc. is a proper contribution of the City to a
nonprofit educational television station;
WHEREAS, the City Council on this date introduced a
procedural ordinance, entitled "AN ORDINANCE PROVIDING FOR THE
CITY OF ALAMEDA TO ISSUE REVENUE BONDS FOR THE PURPOSE OF
PROVIDING FINANCING TO PARTICIPATING PARTIES FOR ECONOMIC AND
EDUCATIONAL DEVELOPMENT PURPOSES, AND CERTAIN OTHER SUPPLEMENTAL
PROVISIONS, INCLUDING DEFINITIONS, GENERAL PROVISIONS, POWERS AND
PROCEDURES", which procedural ordinance would authorize the City
to issue revenue bonds on behalf of KQED, Inc.;
WHEREAS, each issue of revenue bonds issued pursuant to
such procedural ordinance, including the proposed revenue bonds
to be issued on behalf of KQED, Inc., will be a limited
obligation of the City payable from all or any specified part of
the revenues and the moneys and assets authorized in the
procedural ordinance to be pledged or assigned to secure payment
of bonds; such revenues, moneys or assets shall be the sole
source of repayment of such issue of bonds; bonds issued under
the provisions of the procedural ordinance shall not be deemed to
constitute a debt or liability of the City or a pledge of the
faith and credit of the City but shall be payable solely from
specified revenues, moneys and assets; the issuance of bonds
shall not directly, indirectly, or contingently obligate the City
to levy or pledge any form of taxation or to make any
appropriation for their payment;
NOW, THEREFORE, THE COUNCIL OF THE CITY OF ALAMEDA DOES
HEREBY RESOLVE AS FOLLOWS:
Section 1. Intent to Finance. The City hereby expresses
its intent to issue educational development revenue bonds
pursuant to the provisions of Ordinance No. in an
aggregate principal amount of not to exceed $20,000,000 on behalf
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of KQED, Inc. Such revenue bonds shall not directly, indirectly,
or contingently obligate the City to levy or pledge any form of
taxation or to make any appropriation for their payment.
Section 2. Appointment of Bond Counsel. Brown & Wood,
San Francisco, California, is hereby appointed to serve as bond
counsel in connection with the issuance of educational
development revenue bonds by the City on behalf of KQED, Inc.
The fee of bond counsel shall be paid by KQED, Inc. or by
proceeds of such bond issue.
Section 3. Appointment of Placement Agent. Bank of
America, San Francisco, California, is hereby appointed to serve
as placement agent in connection with the issuance of educational
development revenue bonds by the City on behalf of KQED, Inc.
The fee of the placement agent shall be paid by KQED, Inc. or by
the proceeds of such bond issue.
Section 4. Approval of Preliminary Agreement. Mayor is
authorized to execute the preliminary agreement between the City
and KQED, Inc. wherein KQED, Inc. agrees to cover all costs of
the City associated with the Financing under this resolution.
I, the undersigned, hereby certify that the foregoing
Resolution was duly and regularly adopted and passed by
the Council of the City of Alameda in regular meeting
assembled on the 5th of July, 1989,
by the following vote to wit:
AYES: Councilmembers Arnerich, Thomas, Withrow and
President Corica - 4.
NOES: None.
ABSENT: None.
ABSTENTIONS: Councilmember Camicia - 1.
IN WITNESS WHEREOF, 1 have hereunto set my hand and
affixed the official seal of said City this 6th day of
July, 1989,
City Clierk of the City of Alameda