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HomeMy WebLinkAboutCC Ord 629 1963-06-17 .' . ._,~ .-.nc~=;;'!."',~" ~.'c:'.._ ..-...J...l.M.":.....'...or;o.=lI.~l 1 r'-'''''I''' .'0 :"";;; ,'ooy . t . .' _.... . , ~' I; ., . ",.: ',: :j,',\ ~ . '. ~ . .. .. . , .. ....r.. Tr...:. c. i. {....._ .......J ...... ..(....1:: t :::r::::I.""iS"'T--.....--- -. ~_......-...':._~'W!:'Ir'.';.......u!:N1' II' CITY OF SEAL BEACH ORDINANCE NO. h~"~ AN ORDINANCE OF THE CITY OF SEAL !:lEACH, CALIFORNIA. AUTHORIZING THE ISSUANCE OF $750,000 GENERAL OBLIGATION BONDS OF SAID CITY AND PRO- VIDING THE TERMS AND CONDITIONS FOR THE ISSUANCE OF SAID BONDS. I L t WHEREAS, pursuant to Ordinance No. 602, a special municipal election was held in the City of Seal Beach on April 10, 1962, for the purpose of submitting to the qualified voters of said city the proposition of issuing general obligation bonds of said city in the amount of $750,000 pursuant to the City Bond Act of 1901 (Article 1, Chapter 4, Division 4, Title 4 of the Government Code of the State of California) for the following purpose, to wit: The acquisition and construction by the city of a certain municipal improvement, to wit: additions to and improvements of the water system of the city, specifically including water transmission pipelines, a new main reservoir and an interest in a water transmission pipeline, to be used jointly with other public corporations, for the transmission of water from the Metro- politan Water District of Southern California, and including the acquisition of land, rights of way, easements, pipe, pumps, valves, fittings, meters, machinery, equipment and other property necessary therefor. WH EREAS, the City Council determined in said Ordinance No. 602 that it intended to exercise the powers granted by Article 4, Chapter 3, Part I, Division 2, Title 5 of the Government Code of the State of California when providing for the issuance and sale of the bonds; and WHEREAS, said proposition was approved by the votes of more than two-thirds of all the voters voting on said proposition at said special election, and this City is now authorized to issue said bonds; and WHEREAS, this City Council deems that it is necessary to issue and sell said bonds at this time; NOW THEREFORE, the City Council of the City of Seal Beach, California, DOES ORDAIN as follows: I Section 1. Definitions. As used in this ordinance the following terms shall have the following meanings: (a) "City" means the City of Seal Beach, California. (b) "City Council" or "Council" means the Council of said City. (c) "Article 4" means Article 4, Chapter 3, Part I, Division 2, Title 5 of the Government Code of the State of California (commencing with Section 53500). (d) "The bonds" or "said bonds" means the bonds authorized by this ordinance. (e) "Enterprise" or "Revenue-producing facility" means the entire water system of the City, including all improvements and extensions later constructed or acquired. 1 I I I Ordinance Number' ..' ..' (f) "Gross revenues of the enterprise" means all revenues received by the City from the services, facilities and water of the enterprise, excepting therefrom all reimbursement charges and deposits to secure service. (g) "Necessary and reasonable maintenance and operation costs of the enterprise" means all expenses necessary and reasonable to manage, operate, maintain and preserve the enter- prise in good repair and working order. (h) "Net revenues of the enterprise" means the amount of gross revenues of the enter- prise remaining after payment therefrom of the necessary and reasonable maintenance and operation costs of the enterprise. (i) "Fiscal year" means the year period beginning on July 1st and ending on the next following June 30th. Section 2. Amount, Issuance, Purpose and Nature of Bonds. That under and pursuant to the City Bond Act of 1901 and Article 4 bonds of the City of Seal Beach in the amount of $750,000 shall be issued for the purpose stated in the recitals hereof. Said bonds shall be and are general obligation bonds of the City and shall be and are additionally secured by a pledge of and lien upon the net revenues of the enterprise, such net revenues being hereby pledged, charged and assigned for the security of the bonds. Section 3. Payment of the Bonds. That for the purpose of paying the principal and interest of said bonds, the City Council shall at the time of fixing the general tax levy, and annually thereafter until said bonds are paid or until there is a sum in the treasury of said city set apart for that purpose sufficient to meet all payments of principal and interest on said bonds as they become due, levy and collect a tax sufficient to pay the interest on said bonds as it falls due and to constitute a sinking fund for the payment of the principal thereof on or before maturity. Said tax shall be in addition to all other taxes levied for municipal purposes and shall be levied and collected as other city taxes, and shall forthwith be turned Over and paid into a fund of the City hereby created and designated Water Bonds, 1963, Interest and Sinking Fund (herein sometimes called the "Interest and Sinking Fund"). To the extent that, pursuant to Section 15 hereof or otherwise, moneys are actually placed in said fund from a source other than said annual tax levy, the tax hereinbefore required to be levied may be reduced, and if all of the moneys required to be raised by any such tax levy have actually been placed in said fund from some such other source, the tax levy hereinbefore required for such year need not be made. Said fund shall be used for no other purpose than the payment of said bonds and interest thereon until said bonds and interest are fully paid. Section 4. Equality of Bonds, Pledge of Revenues. Pursuant to Article 4 and this ordinance the bonds shall be equally secured by a pledge, charge and lien upon the net revenues of the enterprise without priority for number, date of bonds, date of sale, date of execution, or date of delivery, and the payment of the interest on and principal of such bonds and any premiums upon the redemption of any thereof shall be and are additionally secured by a pledge, charge and lien upon the net revenues of the enterprise, and all of the net revenues of the enterprise (including revenues of improvements and extensions later constructed or acquired) are hereby pledged, charged and assigned for the security of said bonds, and such net revenues and any interest earned on the net revenues shall constitute a trust fund for the security and payment of the interest on and principal of said bonds, and so long as any of the bonds or interest thereon are unpaid said net revenues and interest thereon shall not be used for any other purpose, except as permitted by this ordinance and shall be held in trust for the benefit of the bondholders and shall be applied pursuant to this ordinance, or to this ordinance as modified pursuant to provisions herein. 2 I .1 I Ordinance Number' '. Nothing in this ordinance shall preclude: (a) the redemption prior to maturity and payment of bonds of this issue from proceeds of refunding bonds issued under the City Bond Act of 1901 as the same now exists or as hereafter amended, or under the charter of said City (in the event the City adopts a charter) or under any other law of the State of California; (b) the issuance of additional indebtedness evidenced by general obligation bonds, revenue bonds, revenue notes or similar evidences of indebtedness payable out of the gross or net revenues of the enterprise. Section 5. Description of Bonds. Said bonds shall be in the principal sum of $750,000, shall be 750 in number, numbered 1 to 750, inclusive, and shall be of the denomination of $1,000 each. Said bonds shall be designated WATER BONDS, 1963, shall be dated Augnst I, 1963, and shall be payable in consecutive numerical order, $15,000 on August 1 in each of the years 1965 to 1970, inclusive, and $20,000 on August I in each of the years 1971 to 2003, inclusive. Section 6. Interest. Said bonds shall bear interest at a rate or rates to be hereafter fixed by resolution or resolutions, but not to exceed six per cent (6%) per annum payable annually for the first year and semi-annually thereafter, on the 1st days of February and Augnst of each year. Each bond shall bear interest until the principal sum thereof has been paid, provided, however, that if at the maturity date of any bond, or if the same is redeemable and has been duly called for redemption, funds are available for the payment or redemption thereof in full accordance with the terms of this ordinance, said bond shall then cease to bear interest. Said bonds and the interest thereon shall be payable in lawful money of the United States of America at the United California Bank, Seal Beach, California, or, at the option of the holder, at any paying agent of the City in Chicago, Illinois, or in New York, New York. Section 7. Execution of Bonds. The Mayor of the City and the City Treasurer of the City are hereby authorized and directed to sign all of said bonds by their printed, lithographed or engraved facsimile signatures, and the City Clerk of the City is hereby authorized and directed to countersign said bonds and to affix thereto the corporate seal of the City, and the City Treasurer of the City is hereby authorized and directed to sign the interest coupons of said bonds by his printed, lithographed or engraved facsimile signature. Section 8. Redemption of Bonds. The bonds maturing on or prior to August I, 1978, shall not be subject to call or redemption prior to maturity. The bonds maturing on and after August I, 1979, or any of them, may be called before maturity and redeemed, at the option of the City, on August I, 1978, or on any interest payment date thereafter prior to maturity, at a redemption price for each redeemable bond equal to the principal amount thereof plus the following premiums (percentage of par value) if redeemed at the following times: REDEMPTION DATES AND PREMIUMS On or after AucI prior to On orafter And prior to Augustl August 1 Premium August 1 Augustl Premium 1978 1980 3 'fa 1992 1994 ly,!% 1980 1982 2r.170 1994 1996 1 70 1982 1984 27'.70 1996 1998 r.I'fo 1984 1986 2)4% 1998 2000 7'.% 1986 1988 2 5'" 200D 2002 1'4% 1988 1990 Ir.I% 2002 Maturity 0 1990 1992 1'7'.?'e All or any of the bonds subject to call may be called for redemption at anyone time. If less than all of the bonds are redeemed at anyone time, such bonds shall be redeemed only in inverse 3 I 1 I Ordinance Number .. order of maturity and number, beginning with the highest numbered bond. The interest payment date on which bonds are to be presented for redemption is hereinafter sometimes called the "redemption date," Section 9. Notice of Redemption. Notice of the intended redemption shall be published by one insertion in a newspaper of general circulation in the City and in a financial newspaper or journal of national circulation published in the City of New York, New York, said publications to be at least 30 days but not more than 60 days prior to the redemption date. The notice of redemption shall (a) state the redemption date; (b) state the redemption price; (c) state the numbers and dates of maturity of the bonds to be redeemed, provided, however, that whenever any call includes all of the outstanding bonds subject to call the numbers of the bonds need not be stated; (d) require that such bonds be surrendered with all interest coupons maturing subsequent to the redemption date (except that no coupons need be surrendered on registered bonds) at the United California Bank, Seal Beach, California, or, at the option of the holder, at any paying agent of the City in Chicago, Illinois, or in New York, New York: (e) require that bonds which at the time of call are registered so as to be payable otherwise than to bearer shall be accompanied by appropriate instruments of assignment duly executed in blank; and (f) give notice that further interest on such bonds will not accrue after the designated redemption date. The City Treasurer shall, on or before the date of publication of said notice of redemption, mail a similar notice, postage prepaid to any person, firm or corporation that originally purchased bonds from the City. If any of the bonds designated for redemption shall be registered so as to be payable other- wise than to bearer, the City Treasurer shall, on or before the date of publication of said notice of redemption, mail a similar notice, postage prepaid, to the respective registered owners thereof at the addresses appearing on the bond registry books. The actual receipt by the holder of any bond (hereinafter referred to as "bondholder") of notice of such redemption shall not be a condition precedent to redemption, and failure to receive such notice shall not affect the validity of the proceedings for the redemption of such bonds or the cessation of interest on the date fixed for redemption. The notice or notices required by this section shall be given by the City Treasurer. A certificate by the City Treasurer that notice of call and redemption has been given to original purchasers and to holders of registered bonds as herein provided shall be conclusive as against all parties, and no bondholder whose bond or registered bond is called for redemption may object thereto or object to the cessation of interest on the redemption date fixed by any claim or showing that he failed to actually receive such notice of call and redemption. ~1.' .1/ Section 10. Redemption AeesIIAt. Prior to the date fixed for redemption there shall be estab- lished in the City Treasury in a redemption fund to be described or known as Water Bonds, 1963 Redemption Fund (hereinafter sometimes referred to as "Redemption Fund"), and prior to the redemption date there must be set aside in said Redemption Fund moneys available for the purpose and sufficient to redeem, at the premiums payable as in this ordinance provided, the bonds designated in such notice for redemption. Said moneys must be set aside in said fund solely for that purpose and shall be applied on or after the redemption date to payment (principal and premium) for the bonds to be redeemed upon presentation and surrender of such bonds and (except as to registered bonds) all interest coupons maturing after the redemption date, and shall be used only for that purpose. Any interest coupon due on or prior to the redemption date shall be paid from the Interest and Sinking Fund provided in Section 3 hereof upon presentation and surrender thereof. Any interest due on or prior to the redemption date upon registered bonds shall be paid from said Interest and Sinking Fund. Each bond presented (if unregistered) must have attached thereto or presented therewith all interest coupons maturing after the redemption 4 I I I Ordinance Number " date. If after all of the bonds have been redeemed and cancelled or paid and cancelled there are moneys remaining in said Redemption Fund, said moneys shall be transferred to the Water Revenue Fund; provided, however, that if said moneys are part of the proceeds of refunding bonds said moneys shall be transferred to the fund or account created for the payment of principal of and interest on such refunding bonds. Section 11. Effect of the Notice of Redemption. When notice of redemption has been given, substantially as provided in Section 9 hereof, and when the amount necessary for the redemption of the bonds called for redemption (principal and premium) is set aside for that purpose in the Redemption Fund, as provided in Section 10 hereof, the bonds designated for redemption shall become due and payable on the date fixed for redemption thereof, and upon presentation and surrender of said bonds and (except as to registered bonds) all interest coupons maturing after the redemption date, at the place specified in the notice of redemption, and, if any of said bonds be registered, upon the appropriate assignment thereof in blank, such bonds shall be redeemed and paid at said redemption price out of the Redemption Fund, and no interest will accrue on such bonds called for redemption or on any interest coupon thereof after the redemption date specified in such notice, and the holders of said bonds so called for redemption after such redemption date shall look for the payment of such bonds and the premium thereon only to said Redemption Fund. All bonds redeemed and all interest coupons thereof shall be cancelled forthwith by the paying agent and shall not be reissued. All interest coupons pertaining to any redeemed bonds, which coupons have matured on or prior to the time fixed for redemption, shall continue to be payable to the respective holders thereof but without interest thereon. All unpaid interest payable at or prior to the date fixed for redemption upon registered bonds shall continue to be payable to the respective registered owners of such bonds, or their order, but without interest thereon. Section 12. Disposition of Bond Proceeds. For the purpose of insuring the application of the proceeds received from the sale of the bonds to the purposes set forth in the recitals hereof, for which said bonds are to be issued, the proceeds of the sale of the bonds (except for the premium and accrued interest paid by the purchasers of the bonds. if auy, which shall be placed in the Interest and Sinking Fund) shall be placed in a fund hereby created and designated Water Bonds. 196.l. Construction Fund (herein sometimes referred to as the "Construction Fund"). The City may deposit money received from any other source in the Construction Fund. The money set aside and placed in the Construction Fund shall remain therein until from time to time expended for the purposes for which the Bonds were authorized. Money in the Con- struction Fund may be invested in any investment authorized by law for the investment of city funds, provided that the maturity or maturities thereof shall not be later than the date or dates on which money must be available to meet scheduled Construction Fund expenditures. If any sum remains in said fund after the full accomplishment of the purposes for which the bonds were issued, it shall be transferred to and placed in the Interest and Sinking Fund. Section 13. Water Revenue Fund. Thcre is hereby created in the City Treasury of the City a fund designated UWater Revenue Fund." All gross revenues of the enterprise shall, on the effective date of this ordinance, be transferred to and placed in the Water Revenue Fund and thereafter so long as any of said bonds arc ol1tstauding the gross revenues of the enterprise shall be paid into the Water Revenue Fund, and payments from said fund shall be made only as provided by law and this ordinance. Section 14. Maintenance and Operation. Monthly sums sufficient for the necessary and reasonable maintenance and operation costs of the water system shall first be apportioned from the revenues in the Water Revenue Fund. 5 I I I Ordinance, Numb.er Section 15. Bond Service. During the twelve months period next preceding the date each year on which the City makes its annual tax levy there shall be set aside and transferred, monthly on or before the first day of each month during such period and in appropriate equal monthly installments, from the Water Revenue Fund to the Interest and Sinking Fund created in Section 3 hereof, moneys clearly sufficient to produce in said Interest and Sinking Fund before the date of said annual tax levy an amount equal to the amount for which the City would otherwise be required to levy a tax as provided in Section 3 hereof. No transfer need be made prior to the actual delivery of the bonds to the purchaser thereof but from and after the date of such delivery monthly transfers shall be made calculated to produce in said Interest and Sinking Fund before the time the first interest is payable on said bonds an amount sufficient to pay said interest and also calculated to produce in said Interest and Sinking Fund before the date of the first annual tax levy snbsequent to the issuance of the bonds the amount hereinbefore in this section required. The monthly transfers required by this section shall be made each month after the apportionments required by Section 14 hereof have first been made. Money transferred to said Interest and Sinking Fund shall remain therein until from time to time expended for the payment of the principal and interest on the bonds, and shall not be used for any other purpose whatever, except that any such money so set aside in said Interest and Sinking Fund which at any time may be in excess of the amount which at that time is required by the terms of this section to be in the Interest and Sinking Fund in cash may be invested in any investment authorized by law for the investment of City funds, provided that the maturity shall not be later than the date or dates on which money must be available in said Interest and Sinking Fund in cash at the time required by the terms of this section. Section 16. Surplus. After the monthly apportionments and transfers required by Sections 14 and 15 hereof have been made and all other covenants of the City contained herein have been duly performed, any money remaining in the Water Revenue Fund may be designated as surplus. Surplus may be invested in any securities in which the City may legally invest funds subject to its control, and may also be used for the redemption of any of said bonds which are subject to redemp- tion prior to maturity or for the purchase from time to time on the open market any of the out- standing bonds whether or not subject to call (irrespective of the maturity or number of such bonds) at such prices and in such manner, either at public or private sale, or otherwise as the City in its discretion may determine, but the purchase price (including brokerage or other charges, but excluding accrued interest) shall not exceed 103'70 of the principal amount thereof, or if the bonds are subject to call and redemption prior to maturity shall not exceed the redemption price on the next interest payment date of the bonds so purchased; and said surplus may also he used for an)" other lawful purpose. Section 17. Warranty, The City of Seal Beach shall preserve and protect the security of the bonds and the rights of the bondholders and warrant and defend their rights against all claims and demands of all persons. Section 18. Covenants. So long as any of the honds issued hereunder are outstanding and unpaid, or so long as provision for the full payment and discharge thereof at maturity or upon redemption thereof prior to maturity through the setting apart of the Interest and Sinking Fund or in the Redemption Fund or in a special trust fund to insure the payment or redemption thereof (as the case may be) of money sufficient for that purpose has not been made, the City makes the following covenants with the bondholders under the provisions of said Article 4 (to be performed by the City or its proper officers, agents or employees) which covenants are neces- sary, convenient and desirable to secure the bonds and tend to make them more marketable. Covenant 1. Punctual Payment. The City covenants that it will duly and punctually pay or cause to be paid the principal of and interest on every bond issued hereunder, together with 6 I' 1 I Ordinance Number the premium thereon, if any be payable on the date, at the place and in the manner mentioned in the bonds and coupons and in accordance with this ordinance, and that the payments into the I nterest and Sinking Fund will be made, all in strict conformity with the terms of said bonds and of this ordinance, and that it will faithfully observe and perform all of the conditions, covenants and requirements of this ordinance and all ordinances supplemental hereto and of the bonds issued hereunder, and that time of snch payment and performance is of the essence of the City's contract with the bondholders. Covenant 2. Commence Acquisition and Construction. As soon as funds are available there- for, the City will commence the accomplishment of the purposes for which the bonds are issued and will continue the same to completion with all practical dispatch and in an economical manner. Covenant 3. Operate Enterprise in Efficient and Economical Manner. The City covenants and agrees to operate the enterprise in an efficient and economical manner and to operate, maintain and preserve the enterprise in good repair and working order. Covenant 4. Records and Accounts. The City covenants that it shall keep proper books of record and accounts of the enterprise, separate from all other records and accounts, in which complete and correct entries shall be made of all transactions relating to the enterprise. Said books shall at all times be subject to the inspection of the holders of not less than 10% of the outstanding bonds or their representatives authorized in writing. Covenant 5. Rates and Charges. The City shall and hereby covenants that it shall prescribe, revise and collect such charges for the services, facilities and water of the enterprise which, after making allowances for contingencies and error in the estimates, shall be at least sufficient to pay the following amounts: (a) The necessary and reasonable maintenance and operation costs of the enterprise: (b) The interest on and the principal of the bonds as they become due and payable and the interest on and the principal of any other general obligation bonds, revenue bonds, revenue notes or similar evidences of indebtedness payable out of the gross or net revenues of the enterprise. Section 19. Deposit of Moneys. All moneys held by the City Treasurer shall be On deposit in a bank which is a member of the Federal Deposit Insurance Corporation and shall be secured at all times by such obligations and to the extent required by law, except to the extent that such moneys are invested as hereinbefore provided. Said moneys may be deposited in a bank in a savings or commercial account, inactive or time deposit, or any other form of account that will be appropriate to carry out the provisions in this ordinance. The City Treasurer shall make all transfers from the Water Revenne Fund as required by this ordinance by appropriate entries on the books of record and accounts of the enterprise. Section 20. Investments. Obligations purchased as an investment of money in any fund which are herein authorized to be invested shall be deemed at all times to be a part of such fund and any profit realized from the investment shall be credited to such fund and any loss resulting from such investment shall be charged to such fund and the interest accruing thereunder shall be credited to such fund. The City shall sell at the best price obtainable or present for redemption any obligations so purchased whenever it shall be necessary to do so in order to provide moneys to meet any payment or transfer from such fund. Section 21. Cancellation of Bonds, All bonds and coupons surrendered to any paying agent of the City for payment upon matnrity or for redemption shall upon payment therefor be cancelled 7 I 1 I Ordinance Number' immediately and forthwith transmitted to the Treasurer. Any bonds purchased by the City as authorized herein together with all unpaid coupons pertaining thereto may be cancelled forth- with at the discretion of the City and if cancelled said bonds shall not be reissued. All of the can- celled bonds and interest coupons shall remain in the custody of the Treasurer until destroyed pursuant to due authorization. Section 22. Consent of Bondholders. The consent of bondholders provided for in this section shall relate solely to the amendment, waiver or modification of the covenants specified in Section 18 hereof and shall not be effective to waive or modify any other provisions of this ordinance or of any of the proceedings for the issuance of said bonds. Any act relating to the amendment, waiver or modification of any of the said covenants consented to by bondholders holding sixty per cent (60%) in aggregate principal amount of the outstanding bonds, exclusive of bonds, if any, owned by the City, shall be binding upon the holders of all of the bonds and interest coupons, whether such coupons be attached to bonds or detached therefrom, and shall not be deemed an infringement of any of the provisions of this ordinance or of said Article 4, whatever the character of such act may be, and may be done and performed as fully and freely as if expressly permitted by the terms of this ordinance, and after such consent relating to such specified matters has been given, no bondholder or holder of any interest coupon, whether attached to a bond or detached therefrom, shall have any right or interest to object to such action or in any manner to question the propriety thereof or to enjoin or restrain the City or any officer thereof from taking any action pursuant thereto. If the City shall desire to obtain any such consent it shall determine by resolution the manner of obtaining such consent, the form and manner of giving notice to the bondholders and any other procedure that it deems necessary to carry out the provisions of this section. Section 23. Bond and Coupon Forms. Said bonds shall be payable to bearer, shall be issued in negotiable form, and shall be negotiable, and the form of said bonds and interest coupons thereof shall be substantially as follows: UNITED STATES OF AMERICA STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF SEAL BEACH WATER BOND, 1963 N O..'..mmnnn.mm' $1,000 THE CITY OF SEAL BEACH, a municipal corporation situated in the County of Orange. State of California, FOR VALUE RECEIVED, hereby promises to pay to the bearer or, if this bond be registered, to the registered owner hereof, on August 1, 19nn, upon presen- tation and surrender of this bond. the sum of ONE THOUSAND DOLLARS, with interest thereon at the rate of n..% per annum, interest for the first year payable at the end of said year and interest thereafter payable semiannually on the first days of February and August of each and every year from the date hereof until this bond is paid, upon presentation and surrender of the respective interest coupons hereto attached; provided, however, that if at the maturity date of this bond or, if the same is redeemable and shall be duly called for redemption, then at the date fixed for redemption, funds are available for the payment or redemption thereof, as provided in the ordinance hereinafter mentioned, this bond shall then cease to bear interest. Both principal and interest are payable in lawful money of the United States of America at the United California Bank, Seal Beach, California, or, at the option of the holder, at any paying agent of the City in Chicago, Illinois, or in New York, New York. This is one of a duly authorized issue of bonds of the City issued pursuant to the provisions of Article I, Chapter 4, Division 4, Title 4 of the Government Code of the State 8 '. Ordinance Number I of California and Article 4, Chapter 3, Part I, Division 2, Title 5 of said Code. The terms and conditions of the bonds are provided for by the ordinance of the Council of said City author- izing the bonds adopted mmmh,h__,_h__, 19__.., designated Ordinance No. ................, and this reference incorporates said ordinance, and by acceptance hereof the holder of this bond and the coupons hereto attached assents to said terms and conditions. Said ordinance is adopted nnder, and this bond and the interest coupons hereto attached are issued under and are to be construed in accordance with the laws of the State of California. This bond and the interest hereon and any premium upon the redemption hereof are general obligations of the City of Seal Beach. The payment of the principal and interest of this bond and any premium upon the redemption hereof are additionally secured by a pledge of the net revenues from the water systcm of the City of Seal Beach. Under the provisions of said ordinance the net revenues received from the services, facilities and water or arising from the entire water system of the City are required to be deposited in the City Treasury to the credit of the Water Revenue Fund and used only for the purposes authorized by said ordinance, including the payment of the necessary and reasonable maintenance and operation costs of the water system and the payment of principal and interest of the issue of bonds of which this is one. By the terms of said ordinance, the City is obligated to levy and collect charges for .ervices from the water system of the City such as to provide revenues sufficient to pay the necessary and reasonable maintenance and operation costs of the water system and the principal of and interest on the bonds as they become due and payable. In the maner provided in the ordinance, any or all of the obligations referred to in this paragraph and certain other obligations mentioned in said ordinance may be amended, waived or modified with thc consent of the holders of 60% in aggregate principal amount of the ontstanding bonds, exclusive of issuer-owned bonds. Unless this bond matures on or prior to August 1, 1978, it is callable and rcdeemable prior to maturity in accordance with the provisions for redemption endorsed hereon. It is hereby certified and recited that any and all acts, conditions and things required to exist, to happen and to be performed precedent to and in the incurring of the indebtednes~ evidenced by this bond and in the issuance of this bond exist, have happened, and have been performed in due time, form and manner as required by the Constitution and Statutes of the State of California, and that this bond, together with all other indebtedness of the City, is within every debt and other limit prescribed by the Constitution and Statutes of the State of California. IN WITNESS WHEREOF, said City of Seal Beach has caused this bond to be signed by the Mayor and the City Treasurer of said City by their facsimile signatures, countersigned by the City Clerk of said City, and sealed with the corporate seal of said City, and the interest coupons hereto attached to be signed by the City Treasurer by his facsimile signature, and has caused this bond to be dated the first day of August, 1963. I Mayor of the City of Seal Beach, California COUNTERSIGNED: City Treasurer of the City of Seal Beach, California I City Clerk of the City of Seal Beach, California (SEAL) 9 I I I Ordinance Number '. (COUPON FORM) Coupon NO...n...... On the first day of THE CITY OF SEAL BEACH, CALIFORNIA, will pay to the bearer, at United California Bank, Seal Beach, California, or, at the option of the holder at any paying agent of the City in Chicago, Illinois, or in New York, New York, the sum of $....m........'...n.......n...n.................,.....................n in lawful money of the United States of America, being the interest then due on WATER BOND, 1963, No. dated August 1, 1963, subject to the provisions on the reverse hereof. 19..............., $.................... n........n__n..nn........_...____n......_...._........_n..................._..un City Treasurer of the City of Seal Beach, California On the re\'erse side of the coupon there shall be printed substantially the following: (REVERSE OF COUPON) If the bond to which this coupon is attached is redeemable and is duly called for redemp- tion on a date prior to the maturity date of this coupon, this coupon will be void. Substantially the following provisions for redemption and for registration shall be printed on the reverse side of the bond: PROVISIONS FOR REDEMPTION Unless this bond matures on or prior to August I, 1978, it is redeemable in the manner and subject to the terms and provisions, and with the effect, set forth in the ordinance referred to on the face of this bond, at the option of the City, on August 1, 1978, or on any interest payment date thereafter prior to maturity, upon at least 30 days' prior notice published in a newspaper circulated in the City of Seal Beach, California, and in a financial newspaper or journal of national circulation published in the City of New York, New York, at a redemption price equal to the principal amount thereof plus the following premiums (percentage of par value) if redeemed at the following times: REDEMPTION DATES AND PREMIUMS aD or aft..- And prior to aD or aft..- And prior to August 1 Augu&t1 Premium August 1 AUllll8t1 Premium 1978 1980 3 % 1992 1994 Iy.(% 1980 1982 2WYo 1994 1996 I % 1982 1984 2)12ro 1996 1998 t:'I% 1984 1986 2)4% 1998 2000 Yoro 1986 1988 2 % 2001) 2002 J4'fi, 1988 1990 I~ro 2002 Maturity 0 1990 1992 rYo% Section 24. Proceedings Constitute Contract. The provisions of this ordinance and of the resolutions providing for the sale of the bonds and awarding the bonds and fixing the interest rate or rates thereon shall constitute a contract between the City and the bondholders and the 10 I 1 I Ordinance Number .. '. provisions thereof shall be enforceable by an)" bondholder for the equal benefit and protection of all bondholders similarly situated by mandamus, accounting, mandatory injunction or any other suit, action or proceeding at law or in equity that is now or may. hereafter be authorized under the laws of the State of California in any court of competent jurisdiction. Said contract is made under and is to be construed in accordance with the laws of the State of California. No remedy conferred hereby upon any bondholder is intended to be exclusive of any other remedy, but each such remedy is cumulative and in addition to every other remedy and may be exercised without exhausting and without regard to any other remedy conferred by any law of the State of California. No waiver of any default or breach of duty or contract by any bond- holder shall affect any subsequent default or breach of duty or contract or shall impair any rights or remedies on said subsequent default or breach. No delay or omission of any bondholder to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed as a waiver of any such default or acquiescence therein. Every substantive right and every remedy conferred upon the bondholders may be enforced and exercised as often as may be deemed expedient. In case any suit, action or proceeding to enforce any right 01' exercise any remedy shall be brought or taken and the bondholder shall prevail, said bondholder shall be entitled to receive from the Water Revenue Fund reimbursement for reasonable costs, expenses, outlays and attorney's fees and should said suit, action or proceeding be abandoned, or be determined adversely to the bondholders then, and in every such case, the City and the bondholders shall be restored to their former positions, rights and remedies as if such suit, action or proceeding had not been brought or taken. After the issuance and delivery of the bonds this ordinance and supplementary ordinances thereto shall be irrepealable, but shall be subject to modification to the extent and in the manner provided in Section 22 of this ordinance, but to no greater extent and in no other manner. Section 25. Future Contracts. Nothing herein contained shall be deemed to restrict or prohibit the City from making contracts or creating bonded or other indebtedness payable from the general fund of the City or from taxes or any source, including the revenues of the enterprise as defined herein. From and after the sale of the bonds the general fund of the City shall not include the revenues of the enterprise. Section 26. Severability. If any covenant, agreement or provision, or any portion thereof, contained in this ordinance, or the application thereof to any person or circumstance, is held to be unconstitutional, invalid or unenforceable, the remainder of this ordinance and the application of any such covenant, agreement or provision, or portion thereof, to other persons or circum- st;ances, shall be deemed severable and shall not be affected thereby, and this ordinance and the bonds issued pursuant hereto, shall remain valid and the bondholders shall retain all valid rights and benefits accorded to them under this ordinance and the Constitution and laws of the State of California. Section 27. That the City Clerk shall certify to the passage and adoption of this ordinance by a vote of at least two-thirds of all the members of the City Council of said city, and shall cause this ordinance to be published once in the SEAL BEACH POST & WAVE, a newspaper of general circulation in said city. Section 28. Effective Date. This ordinance shall take effect thirty (30) days after its adoption. 11 I I I Ordinance Number . .. a each, Cali forma ATTEST: ISI ht:U/,~4 ~/a..~.... City Clerk of the City of Seal Beach. California (SEAL) 12 '. .- F'- , '. STATE OF CALIFORNIA} COUNTY OF ORANGE ss. CITY OF SEAL BEACH . Ordinance Number . ... I, F. W. Hickman, City Clerk of the City of Seal Beach, California, DO HEREBY CERTIFY that the foregoing ordinance was introd5c d and read,at a.m ......mm.m.. regular meeting of the City Council duly held on the/P!day of , , _ _"J!o.I9"~ a~~ter at a.... ................., regular meeting of said City Council duly held n the17.,:totlay of . ....., 1~" was reread, duly passed and adopted by said City Council and signed and pproved by the Mayor of said city, and that said ordinance was passed and adopted by a vote of two-thirds of the members of said City Council, to wit: (SEAL) STATE OF CALIFORNIA 1 COUNTY OF ORANGE ~ ss. CITY OF SEAL BEACH J councilmen~,~~,1't.~~,~II'U..,f ~ ~..,,~.,~~~- .m.m................m.7...................m.mm_ NOES: Councilmen ..~~e-',(.~m..._'mm...m........,....., ABSENT: Councilmen m~,~..'..'..mmm................ AYES: h'c.tJ.?~~.K-e1.~-- City Clerk of the City of Seal Beach, California. I, F. W. Hickman, City Clerk of the City of Seal !:leach, California, DO HEP.EBY CERTIFY that the above and foregoing is a full, true and correct copy of Ordinance N o."-~~._ of said city and that said ordinance was adopted at the time and by the vote stated on the certificate attached thereto, and has not been amended or repealed. Dated ~...o......, 1965" (SEAL) /~~~---.., r City Clerk of the City of Seal Beach, California. 13