RES 84176 - Laserfiche WebLink

Proposed Constitutional Amendment: "Jarvis 'Save 13' Amendment" An initiative constitutional amendment commonly referred to as "jarvis 'Save 13' Amendment" ("the Amendment") which would amend Article XIIIA (adopted in 1978 and commonly referred to as "Proposition 13" or the "Jarvis-Gann Initiative") will probably qualify for and be submitted to the voters at the statewide general election in November 1984. If enacted by the voters, the effective date of the Amendment purports to be retroactive to August 15, 1983. It is believed that, if judicially challenged, the purported retroactivity of the Amendment would be held by a court to be not constitutionally applicable to the assessments securing repayment of the Bonds. If, however, a court should hold the Amendment to be so applicable, the City is further of the opinion that the provisions of the Amendment will not impair the validity and enforceability of the assessments and the Bonds. Finally, if for any cause the assessments are declared to be invalid or unforceable by a court, the City is empowered to conduct reassessment proceedings directed to relevying such assessments in accordance with applicable law. LEGAL OPINION All proceedings in connection with the issuance of the Bonds are subject to the approval of Sturgis, Ness, Brunsell & Sperry, Emeryville, California, Bond Counsel for the City of Pleasanton in connection with the Assessment District Project The opinion of Sturgis, Ness, Brunsell & Sperry approving the validity of the Bonds will be printed on each bond. The opinion of Bond Counsel will be qualified as to the enforcability of certain of the proceedings by limitations imposed by bankruptcy, insolvency, moratoria and other similar laws affecting creditors' rights, heretofore or hereafter enacted and by the exercise of judicial discretion in accordance with general principles of equity. Sturgis, Ness, Brunsell & Sperry has been retained by the City as Bond Counsel on a contingent fee, payable solely from the proceeds of the Bond issue. TAX EXEMPTION In the opinion of Sturgis, Ness, Brunsell & Sperry, Emeryville, California, Bond Counsel, interest on the Bonds is exempt from all present Federal income taxes and from State of California personal income taxes under existing statutes, regulations and court decisions and the bonds are exempt from all California taxes except franchise taxes. Interest however, may become federally taxable upon any Bond during any period in which the Bond is held or owned by a substantial user of the facilities financed by the Bond proceeds, or by a related person, within the meaning of Section 103(b) of the Internal Revenue Code. -37-