HomeMy WebLinkAboutCC Res 1598 1967-09-18
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9-15-67
CITY OF SEAL BEACH
J - fS'
RESOLUTION NO. 1'>'..._
RESOLUTION OF THE CITY COUNOL OF THE CITY OF SEAL BEACH, CALIFORNIA,
AUTHORIZING THE ISSUANCE OF $700,000 WATER REVENUE BONDS OF SAID CITY
AND PROVIDING THE TERMS AND CONDITIONS FOR THE ISSUANCE OF SAID BONDS.
WHEREAS, the City of Seal Beach is a City organized and existing under a Charter duly and
regularly adopted pursuant to the provisions of the Constitution of the State of California; and
WHEREAS, in exercise of the powers reserved to the City, Ordinance No, 725, adding Chapter
4B to the Seal Beach City Code, has been enacted by the City Council of said City; and
WHEREAS, said Chapter 4B provides as follows:
"Chapter 4B. BONDS - REVENUE.
"Section I. The City Council, exercising the powers reserved to the City under Sections 6
and 8 of Article XI of the Constitution of the State of California and Section 200 of the Charter
of the City, may when the public interest and necessity require, by resolution or resolutions, issue
and sell revenue bonds to provide funds for the acquisition, construction, improvement or financing
of a revenue producing improvement, building, system, plant, works, facilities, or undertaking, for
the following purpose; the obtaining, conserving, treating and supplying of water for domestic use,
irrigation, sanitation, industrial use, fire protection, recreation, or any other public or private uses,
including all appurtenances to any of the foregoing."
"Section 2. The procedure for the issuance and sale of revenue bonds shall be the procedure
set forth in the Revenue Bond Law of 1941 (commencing with Government Code Section 54300),
and by this reference, with the exception hereinafter stated, the provisions of said Law are
incorporated herein; provided, however, that no election to authorize the issuance of said bonds
shall be held, and to that end Sections 54380 through 54387 of said Government Code are not
incorporated herein and shall not be applicable to the issuance of said revenue bonds"; and
WHEREAS, said Chapter 4B is now in effect and the public interest and necessity require this
City Council to proceed thereunder and issue and sell $700,000 Water Revenue Bonds for the following
purposes:
The acquisition, construction and financing of additions to and extensions of the waterworks
system of the City of Seal Beach, including installation of additional storage facilities, wells, pumping
stations, main pipe lines, interconnection facilities and the acquisition of land and rights of way, and
including all engineering, inspection and legal fees, fiscal agent's fees, costs of the issuance of the bonds,
and bond reserve funds, and other costs and expenses incidental to or connected with such acquisition,
construction and financing.
NOW, THEREFORE, the City Council of the City of Seal Beach, California, DOES HEREBY
RESOLVE, DETERMINE AND ORDER as follows:
Section 1. Definitions. As used in this resolution the following terms shall have the following
meanings, unless the context otherwise requires:
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(a) "City" means the City of Seal Beach, California.
(b) "City Council" or "Council" means the City Council of said City,
(c) "Chapter 4B" means Chapter 4B of the Seal Beach City Code, the text of which is set
forth in the recitals hereof,
(d) "Revenue Bond Law" means the Revenue Bond Law of 1941 as cited in Chapter 4B,
(e) "Charter" or "City Charter" means the Charter of the City of Seal Beach.
(f) "Bonds" means the bonds authorized by this resolution,
(g) "Enterprise" means the entire waterworks system of the City of Seal Beach as such
system now exists together with all additions to be acquired, constructed and financed with funds
derived from the sale of revenue bonds authorized to be issued by this resolution, together with
all improvements and extensions to said system later constructed or acquired.
(h) "Gross revenues of the enterprise" means all revenues (as defined in Section 54315
of the Government Code, which include all charges received for and all other income and receipts
derived by the City from the operation of the enterprise or arising from the enterprise) received
by the City from the services, facilities and water of the enterprise, excepting therefrom all
reimbursable charges and deposits to secure service, and further excepting therefrom all payments
required to be made by the City pursuant to the Agreement with Golden Rain Foundation dated
March 19, 1962, as supplemented by the Supplemental Agreement dated June 27, 1966, and the
Agreement with S & S Construction Co. Inc. dated January 18, 1965.
(i) "Necessary and reasonable maintenance and operation costs of the enterprise" includes
the reasonable expenses of management and other expenses necessary to manage, operate, maintain
and preserve the enterprise in good repair and working order, excluding depreciation,
(j) "Net revenues of the enterprise" means the amount of gross revenues of the enterprise
remaining after payment therefrom of the necessary and reasonable maintenance and operation
costs of the enterprise,
(k) "Maximum amount of annual debt service" means the maximum sum required to be
paid in any fiscal year in which bonds are outstanding by totaling the following for such fiscal year:
(1) The principal amount of all outstanding serial bonds of this issue and any parity
bonds payable in such fiscal year;
(2) The minimum principal amounts of term bonds of this issue and any parity term
bonds scheduled to be called and redeemed in such fiscal year, together with the premium
thereon, if any be payable; and
(3) The interest which would be due during such fiscal year on the aggregate principal
amount of bonds which would be outstanding in such fiscal year if the bonds are retired as
scheduled, but deducting and excluding from such aggregate amount the amount of bonds
already retired.
(I) "Serial bonds" means bonds, falling due by their terms in specified years which are
not term bonds,
(m) "Term bonds" means bonds which are scheduled to be called and redeemed prior to
maturity through the use of the sinking fund established for that purpose.
(n) "Parity bonds" means revenue bonds, revenue notes or other similar evidences of
indebtedness issued for the acquisition, construction and financing of extensions of, additions to,
and improvements of the enterprise, payable out of the revenues derived from the enterprise and
which, as provided in this resolution, rank on a parity with the bonds of this issue,
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(0) "Subsequent resolution" means any resolution of issuance for any parity bonds.
(p) "Fiscal year" means the year period beginning on July 1st and ending on the next
following June 30th.
(q) "Authorized investments" mean~ any securities in which the City may legally invest
funds subject to its control.
(r) "Fiscal Agent" means the Bank of America National Trust and Savings Association,
Los Angeles, California, or its successor, appointed pursuant to Section 10 of this resolution.
Section 2. Equality of Bonds, Pledge of Revenues. Pursuant to the City Charter, Chapter 4B
and this resolution, bonds of this issue shall be equally secured by a pledge, charge and lien upon the
gross revenues of the enterprise without priority for number, date of bonds, date of sale, date of execu-
tion, 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 prior to maturity shall be and are secured by an exclusive
pledge, charge and lien upon the gross revenues of the enterprise, and all of the gross revenues of the
enterprise are hereby pledged, charged and assigned for the security of said bonds, and such gross
revenues and any interest earned on the gross 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 gross revenues and interest thereon shall not be used for any other purpose,
except as permitted by this resolution and any subsequent resolution and shall be held in trust for the
benefit of the bondholders and shall be applied pursuant to this resolution, or to this resolution as
modified pursuant to provisions herein and any subsequent resolution.
Nothing in this resolution or in any subsequent resolution shall preclude: (a) the redemption
prior to maturity of any bonds subject to call and redemption and payment of such bonds from proceeds
of refunding bonds issued under the City Charter, Chapter 4B, the Revenue Bond Law or under any
other law of the State of California as the same now exists or as hereafter amended; (b) the issuance,
subject to the limitations in this resolution of additional indebtedness evidenced by revenue bonds,
revenue notes or similar evidences of indebtedness payable out of the revenues of the enterprise and
ranking on a parity with the bonds of this issue.
Any bond shall be deemed no longer outstanding and unpaid within the meaning of any provision
of this resolution when provision has been made for its payment and diseharge upon or prior to
maturity, or upon redemption prior to maturity, Provision has been made for payment or discharge
of a bond when money sufficient for that purpose has been set apart in the Bond Service Fund or
Redemption Fund or irrevocably segregated for such purposes in a special trust fund or account to
insure the payment or redemption thereof (as the case may be).
Section 3. Amount, Issuance, Pnrpose and Nature of Bonds. The public interest and necessity
require that revenue bonds of the City of Seal Beach in the amount of $700,000 shall be issued for the
purpose stated in the recitals hereof. Said revenue bonds shall be and arc special obligations of the City
of Seal Beach and shall be and are secured by a pledge of and lien upon, and shall be and are a charge
upon, and shall be and are payable as to the principal thereof and interest thereon and any premiums
upon the redemption of any thereof prior to maturity solely from, the gross revenues of the enterprise.
Section 4, No General City Liability. The general fund of the City of Seal Beach is not liable
for the payment of the bonds or their interest, nor is the credit or taxing power of the City of Seal
Beach pledged for the payment of the bonds or their interest. The holder of the bonds or coupons shall
not compel the exercise of the taxing power by the City of Seal Beach or the forfeiture of any of its
property. The principal of and interest on the bonds and any premiums upon the redemption of any
thereof prior to maturity are not a debt of the City of Seal Beach nor a legal or equitable pledge,
charge, lien, or encumbrance upon any of its property, or upon any of its income, receipts, or revenues,
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except the gross revenues of the enterprise which are pledged to the payment of said bonds and interest
and any premiums upon redemption.
Section 5. Description of Bonds. The bonds shall be in the principal sum of $700,000, shall
be 140 in number, numbered I to 140, inclusive, and shall be of the denomination of $5,000 each.
Said bonds shall be designated, 1968 WATER REVENUE BONDS, shall be dated January 1, 1968, and
shall be payable in consecutive numerical order on January I in each year of maturity in the amounts for
each of the several years as follows:
Ye..
DODds
MIIIluIDg
Bonds
MahnIng
Year
1970..mmmnmnmmnnm_n_hm $ 5,000
1971_m_n_mmnnmmmmmmnn 5,000
1972m_hnmnmmnmmnn.n____'. 10,000
I 97Lmmmnnmnmnnm_hhm' 10,000
1974nnmmnh_nmmnmmnmm_ 15,000
1975,mnmm____n___'nnm'nmn'n 15,000
1976_mn_'mnn'__mmnmmmmn 15,000
1977mmmnmmmnnmnmm_nn 15,000
1978...___mmnmnmn___n'mmnn $ 20,000
1979m_h_mmnnmm'_____nnnnm 20,000
1980_,___nmmmmnm..__m'mnm 20,000
I 98Im_nmmnmm'm__mmnnnn 20,000
I 982nmnn'hmmmnn_,.nnnnm' 20,000
1983mnmmnmnmm'mnnm_nn 20,000
1998,mnn'__'nmmnnn___nnmm_ 490,000
The bonds maturing in the years 1970 to 1983, inclusive, are herein sometimes referred to as
serial bonds. The bonds maturing in the year 1998 are herein sometimes referred t9 as term bonds.
Section 6. Interest. The bonds shall bear interest at a rate or rates to be hereafter fixed by
resolution or resolutions, but not to exceed six percent (6%) per annum, payable semiannually. 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
resolution, said bonds 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 main office of Bank of America
National Trust and Savings Association, in Los Angeles, California, or San Francisco, California (or
collectible through any of its branches in 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. 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, The seal of the
City may be impressed, imprinted or reproduced on the bonds.
Section 8, Registration. Said bonds may be registered either as to principal only or as to both
principal and interest, and the form of registration of any registered bond may be changed, or any
registered bond may be discharged from registration in the manner and with the effect set forth in the
provisions for registration contained in the form of bond hereinafter set forth.
Section 9, Redemption of Bonds. The bonds maturing on or prior to January I, 1983, are not
subject to call or redemption prior to maturity. The bonds maturing on January I, 1998, are subject
to call and redemption, at the option of the City, on January 1, 1984, or on any interest payment date
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thereafter prior to maturity, at a redemption price for each redeemable bond equal to the principal
amount thereof, plus a premium as set fonh below if redeemed at the following times:
Premium (slaled Premium (staled
.. a _nlage as a pereeDtage
On or Afler and Prior to of prineipal) On or After and PrIor to of prlndpal)
1984 1985 3~% 1991 1992 1%%
1985 1986 314 1992 1993 1~
1986 1987 3 1993 1994 114
1987 1988 2% 1994 1995 1
1988 1989 2~ 1995 1996 %
1989 1990 214 1996 1997 ~
1990 1991 2 1997 1998 14
All or any of the bonds subject to call may bc called for rcdcmption at anyone time. If less than
all of the bonds are redeemed at anyone time, such bonds shall be redeemed by lot. The interest
payment date on which bonds are to be presented for redemption is hereinafter sometimes called the
"redemption date."
(a) Notice of Redemption. Notice of the intended redemption shall be published by one insertion
in a newspaper of general circulation in the County of Los Angeles, California, 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 date 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 bonds registered as to both principal and interest)
at the main office of Bank of America National Trust and Savings Association, in Los Angeles, Cali-
fornia, or San Francisco, California (or collectible through any of its branches in 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 appropriatc 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 Fiscal Agent shall, on or beforc the date of publication of said notice of redemption, mail a
similar notice, postage prepaid to any person, firm or corporation that originally purchased any of
said bonds from the City,
If any of the bonds designated for rcdemption shall be registered so as to be payable otherwise
than to bearer, the Fiscal Agent 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 book.
The actual receipt by the holder of any bond (hereinafter referred to as "bondholder") of notice
of such redemption shall not be a condition preccdent 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 noticcs required by this section shall be given
by the Fiscal Agent. A cenificate by the Fiscal Agent 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 panies, and no bondholder whose bond or registered bond is called for redemption may
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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.
(b) Redemption Fund. Prior to the redemption date there shall be established by the Fiscal Agent
a redemption fund to be described or known as 1968 WATER REVENUE BONDS REDEMPTION
FUND (herein sometimes referred to as "Redemption Fund"), and prior to the redemption date
there shall be set aside in said Redemption Fund moneys available for the purpose and sufficient to
redeem, at the premiums payable as in this resolution 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 bonds registered as to both principal
and interest) 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 Bond
Service Fund upon presentation and surrender thereof, Any interest due on or prior to the redemption
date upon bonds registered as to both principal and interest shall be paid from said Bond Service Fund.
Each bond presented (if unregistered or registered as to principal only) must have attached thereto
or presented therewith all interest coupons maturing after the redemption 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 Surplus 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.
(c) Effect of the Notice of Redemption. When notice of redemption has been given, 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, the boods designated for redemption shall become
due and payable on the redemption date, and upon presentation and surrender of said bonds and
(except as to bonds registered as to both principal and interest) 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 Fiscal Agent and shall not be reissued,
All interest coupons pertaining to any redeemed bonds, which coupons have matured on or prior
to the redemption date, shall continue to be payable to the respective holders thereof but without
interest thereon, All unpaid interest payable at or prior to the redemption date upon bonds registered
in such manner that the interest is payable only to the registered owners shall continue to be payable
to the respective registered owners of such bonds, or their order, but without interest thereon.
Section 10, Fiscal Agent. The City hereby appoints the Bank of America N. T. & S. A. in the
City of Los Angeles, State of California, as the 1968 Water Revenue Bond Fiscal Agent for the
purpose of paying the principal of and interest on any of the bonds presented for payment at its main
office in Los Angeles, California, or San Francisco, California (or collectible through any of its
branches in California), and for the purpose of performing all other duties assigned to or imposed
upon the Fiscal Agent as in this resolution provided, The Fiscal Agent initially appointed and any
successor thereof may be removed by the City and a successor or successors appointed; provided
that each such successor shall be a bank or trust company doing business in and having an office in the
City of Los Angeles, State of California, Any such Fiscal Agent designated by the City shall continue
to be the Fiscal Agent of the City for all of said purposes until the designation of a successor as such
Fiscal Agent, and the City agrees that it will maintain a Fiscal Agent in said City of Los Angeles so
long as any of said bonds or any parity bonds are outstanding and unpaid. The Fiscal Agent is hereby
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authorized and directed to withdraw from the funds and in the manner provided herein all sums required
for the payment of the principal of and interest on the bonds presented for payment at the places herein
provided at maturity, or on call and redemption or on purchase by the Fiscal Agent prior to maturity.
The Fiscal Agent is hereby authorized to redeem the bonds and the interest coupons appertaining
thereto when duly presented to it for payment at maturity, or on call and redemption or on purchase
by the Fiscal Agent prior to maturity, and to cancel all bonds and coupons upon payment thereof and
to return the same so cancelled to the Treasurer. The Fiscal Agent shall keep accurate records of all
funds administered by it and of all bonds and coupons paid and discharged by it,
The recitals of fact and all promises, covenants and agreements herein and in the bonds of said
authorized issue contained shall be taken as statements, promises, covenants and agreements of the
City, and the Fiscal Agent assumes no responsibility for the correctness of the same, and makes no
representations as to the validity or sufficiency of this resolution or of the bonds or coupons, and shall
incur no responsibility in respect thereof, other than in connection with the duties or obligations herein
or in the bond assigned to or imposed upon the Fiscal Agent. The Fiscal Agent shall be under no
responsibility or duty with respect to the issuance of the bonds for value. The Fiscal Agent shall not
be liable in connection with the performance of its duties hereunder, except for its own negligence
or default.
Any Fiscal Agent appointed hereunder may resign at any time. Upon the merger, consolidation
or other reorganization of any Fiscal Agent, the City shall appoint a new Fiscal Agent, which may
be the corporation resulting from such reorganization,
Section 11. Funds. Under and pursuant to said Chapter 4B and said Revenue Bond Law there
are hereby created the following funds which shall be applied pursuant thereto and to this resolution:
(1) 1968 Water Revenue Bonds, Acquisition and Construction Fund (herein sometimes
referred to as "Acquisition and Construction Fund," held by the Treasurer);
(2) 1968 Water Revenue Bonds, Water Revenue Fund (herein sometimes referred to as
"Revenue Fund," held by the Fiscal Agent);
(3) 1968 Water Revenue Bonds, Bond Service Fund (herein sometimes referred to as "Bond
Service Fund," held by the Fiscal Agent);
(4) 1968 Water Revenue Bonds, Sinking Fund (herein sometimes referred to as "Sinking
Fund," held by the Fiscal Agent);
(5) 1968 Water Revenue Bonds, Reserve Fund (herein sometimes referred to as "Reserve
Fund," held by the Fiscal Agent);
(6) 1968 Water Revenue Bonds, Maintenance and Operation Fund (herein sometimes
referred to as "M & 0 Fund," held by the Treasurer);
(7) 1968 Water Revenue Bonds, Surplus Fund (herein sometimes referred to as "Surplus
Fund," held by the Treasurer),
Section 12. Disposition of Bond Proceeds. The proceeds of the sale of the bonds shall be received
by the Fiscal Agent and deposited as follows:
( I) The accrued interest, if any, shall be placed in the Bond Service Fund,
(2) A sum equal to maximum annual debt service shall be placed in the Reserve Fund.
(3) The balance shall be deposited with the Treasurer and placed in the Acquisition and
Construction Fund.
The City may deposit money received from any source in the Acquisition and Construction Fund.
The moneys set aside and placed in the Acquisition and Construction Fund shall remain therein
until from time to time expended for the purposes for which the bonds were issued.
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Moneys in the Acquisition and Construction Fund may be invested in any authorized investments,
provided that the maturity or maturities thereof shall not be later than the date or dates on which
moneys must be available to meet scheduled Acquisition and Construction Fund expenditures. If any
sum remains in said Acquisition and Construction Fund after the full accomplishment of the purposes
for which the bonds were issued, it shall be transferred to and placed in the Revenue Fund.
Section 13. Revenue Fund. The Treasurer shall, on or before the fifth day of each calendar
month next succeeding the calendar month in which the gross revenues of the enterprise have been
collected, deposit the gross revenues with the Fiscal Agent. Said gross revenues shall be placed by
the Fiscal Agent in the Revenue Fund and shall be held in trust by the Fiscal Agent, The Fiscal Agent
shall transfer moneys from the Revenue Fund to the funds and in the amounts and priority set forth
in Sections 14 to 18.
Section 14. Bond Service Fund. On or before the tenth day of each calendar month so long as
any of the bonds are outstanding the Fiscal Agent shall set aside out of the Revenue Fund into the
Bond Service Fund, the following amounts: (1) One-sixth (1/6th) of the interest which will become
due and payable on the outstanding bonds within the next ensuing six (6) months, except that for the
first six (6) months after the date of the bonds, the monthly sum transferred shall be the interest
which will become due and payable at the end of the first six (6) months less the amount of any
accrued interest placed in the Bond Service Fund divided by the number of months remaining in said
period; (2) One-twelfth (1/12th) of the principal amount which will 'mature and be payable on the
outstanding serial bonds within the next ensuing twelve (12) months. In the event that the transfer or
transfers for each calendar month as aforesaid are less than the amounts required for that month
because of lack of funds or for any other reason the deficiency shall be added to and become a part of
the transfer or transfers required for the following calendar month,
Such sums shall be transferred so that the full amount required to pay, as it becomes due, the
interest on said bonds and any maturity or installment of principal on said bonds shall be set aside in
the Bond Service Fund at least fifteen (15) days prior to the dale the installment of interest and/or
principal becomes due.
Any moneys required to be set aside, transferred to and placed in the Bond Serviee Fund may be
prepaid in whole or in part by being earlier set aside, transferred to and placed in the Bond Service
Fund, and in that event the monthly transfer which has been so prepaid need not be made at the
time appointed therefor, In any event at least fifteen (15) days prior to the due date of any installment
of interest and/or principal on such bonds all sums required for the payment thereof must be in the
Bond Serviee Fund.
Moneys in the Bond Service Fund may be temporarily invested in any authorized investments
provided that the maturity or maturities thereof shall not be later than the date or dates on which
money must be available for the payment of interest and principal.
The interest coupons shall recite that they are payable from the Revenue Fund, but said coupons
notwithstanding such recital shall be paid from the Bond Service Fund which is derived from the
Revenue Fund,
If after all of the bonds and any parity bonds have been redeemed and cancelled or paid and
cancelled there are moneys remaining in the Bond Service Fund said moneys shall be transferred to the
Surplus 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 the principal of
and interest on such refunding bonds,
Section 15. Sinking Fund. For the payment of the term bonds the Fiscal Agent shall set aside
out of the Revenue Fund and transfer into the Sinking Fund on or before the tenth day of each
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calendar month commcncing in December of 1982 an amount not less than the minimum amount herc-
inafter specified. Such transfers shall in no cvent be less than amounts (hereinafter referred to as
"minimum term bond payments") which will be sufficient to call and redeem term bonds (including
premiums thereon) in the following respective minimum principal amounts on January I in each of
the following years:
Ye..
Minimum Amount
Eaeh Year
1984 - 1988,mmnmm'____nnmnmmnmm'______nm_m, $25,000
1989 - 199L_mnmnmmnn'nnmmnmmnm'__'________ 30,000
1992 - 1994mnmnmm'______nmmnmmnmnn___'n__'n_ 35,000
1995 - 1996mnm'____nmnmnnmmm'_'nnn___'nnn_m' 40,000
1997 -199Lnmmm'_n_'___nmmmnmnmnnm_'__n___ 45,000
The minimum term bond payment to be made on or before the tenth day of each calendar month
as aforesaid shall be one-twelfth (t/12th) of the amount needed to call and redeem the minimum amount
of term bonds (including premiums thereon) according to the above table and the same shall be
transferred to the Sinking Fund at least fifty (50) days before the redemption date, In the event
that the transfer made for any month is less than the minimum term bond payment for that month
because of lack of funds or for any other reason the deficiency shall be added to and become a part
of the minimum term bond payment required for the following month.
Any moneys required to be set aside, transferred to and placed in the Sinking Fund may be prepaid
in whole or in part by being earlier set aside, transferred to and placed in the Sinking Fund, and in that
event the monthly transfer which has been so prepaid need not be made at the time appointed therefor.
If on December 10, 1982, there shall be in said Sinking Fund, as a result of moneys being prepaid, an
amount sufficient (including premiums) to call bonds of this issue subject to call, the moneys in the
Sinking Fund may be used to call bonds at the next available call date in the amount which can be
called with the moneys available. Moneys in the Sinking Fund to be used to call bonds shall for that
purpose be transferred to the Redemption Fund prior to the redemption date.
Except as hereinafter provided, moneys in the Sinking Fund shall be used solely for the purpose
of purchasing or calling and redeeming bonds of this issuc prior to maturity. Moneys in the Sinking
Fund which have not been set aside in the Redemption Fund for the purpose of calling or redeeming
bonds may be used to purchase from time to time on the open market any of the outstanding bonds of
this issue 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, but the purchase
price (including brokeragc or other charges, but excluding accrued interest) shall not exceed 103Y.z %
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 thc next redemption date of the bonds so purchased.
If on December 10, 1982 or on any December 10 of any year thereafter there shall be in said Sink-
ing Fund an amount at least sufficient (including premiums) to call bonds of this issue subject to call,
the moneys in the Sinking Fund shall be used to call bonds at the next available call date in the required
amount which can be called ,with the moncys available. Moneys in the Sinking Fund to be used to
call bonds shall for that purpose be transferred to the Redemption Fund prior to the redemption date,
Moneys in the Sinking Fund may be temporarily invested in any authorized investments, provided
that the maturity or maturities thereof shall not be later than the date or dates on which money must
be paid from the Redemption Fund.
If after all of the bonds and any parity bonds have been redeemed and cancelled or paid and
cancelled there arc any moneys remaining in the Sinking Fund, said moneys shall be transferred to
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the Surplus Fund; provided, however, that if said moneys are part of the proceeds of refunding bonds
said moneys shall be transferred to the fund or aeeount created for the payment of the principal of
such refunding bonds.
In the event any subsequent resolution provides for the issuance of term bonds, the minimum
term bond payments to be placed in the sinking account for any parity term bonds shall rank on
a parity with the minimum term bond payments to be placed in the Sinking Fund for the redemption
of term bonds of this issue,
Section 16. Reserve Fund. From the proceeds of the sale of the bonds, or from other available
funds of the city, there shall be placed in the Reserve Fund an amount equal to maximum annual
debt service, and thereafter there sball be maintained in said Reserve Fund by transfers from the Surplu!
Fund or the Revenue Fund an amount equal to maximum annual debt service.
From the proceeds of the sale of any parity bonds, or from other available f!lnds of the City,
there sball be immediately placed in the Reserve Fund an amount which, together with any moneys in
the Reserve Fund and any moneys transferred from the Surplus Fund to the Reserve Fund on the same
day, will make the Reserve Fund equal to maximum annual debt service and thereafter there sball be
maintained in said Reserve Fund an amount equal to maximum annual debt service,
Moneys in the Reserve Fund shall be used solely for the purpose of paying the principal of and
interest on the bonds or any parity bonds in the event that the moneys in the Bond Service Fund'
are insufficient therefor and for that purpose the Fiscal Agent shall withdraw and transfer moneys from
the Reserve Fund to the Bond Service Fund. Whenever moneys are withdrawn from the Reserve
Fund an equal amount of moneys shall be placed in the Reserve Fund by transfers from the Surplus
Fund or from the first available moneys in the Revenue Fund,
Moneys in the Reserve Fund may be invested in any authorized investments provided that the
maturity or maturities thereof shall not be later than twelve years from the date of the investment. Any
interest earned from investment of money in the Reserve Fund or other earnings hereof shall be deemed
to be part of the gross revenues of the enterprise and shall be placed in the Revenue Fund.
Moneys in the Reserve Fund may be used to pay the principal of and/or interest on the last
outstanding maturity of the bonds or any parity bonds.
Seetion 17: M & 0 Fund. AU moneys remaining in the Revenue Fund on or before the tenth
business day of each calendar month, after setting aside and transferring from the Revenue Fund all
the sums required to be set aside and transferred pursuant to Section 14, 15 and 16, shall be transferred
by the Fiscal Agent to the Treasurer and the Treasurer shall deposit in the M & 0 Fund an amount
necessary to pay from said M & 0 Fund the necessary and reasonable maintenance and operation costs
of the enterprise,
Section 18, Surplus Fund. Any moneys in excess of the amount necessary to be deposited in the
M & 0 Fund pursuant to Section 17, shall be deposited by the Treasurer in the Surplus Fund,
After all covenants of the City contained herein have been duly performed, moneys in the Surplus
Fund may be: (1) used for extensions and betterments of the enterprise; (2) used for mainte-
nance and operation expenses; (3) invested in any authorized investments; (4) transferred to the
Redemption Fund or Sinking Fund to be used for the redemption of any of said bonds which are
subject to call and redemption prior to maturity or to the purchase from time to time in the open
market of any outstanding bonds whether or not subject to call and redemption (irrespective of the
maturity or number of such bonds) at prices and in such manner, either at public or private sale, or
otherwise, as the City in its discretion may determine, but such purchase price (including brokerage and
other charges, but excluding accrued interest) shall not exceed 103 'h % of the principal amount or the
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redemption price of the callab1c bonds on the next redemption date; or (5) used for any lawful
purpose of the City.
Section 19, Investments. Exccpt as hereinbefore provided, obligations purchased as investments
of moneys in any of the funds in which investments are authorizcd shall be deemed at all times
to be a part of such funds and any income realized from such investments shall be credited to such
funds and any losses resulting from such investments shall be charged to such funds. The Fiscal Agent
or Treasurer, as the case may be, shall sell at the best price obtainable or present for redemption any
obligations so purchased whenever it may be necessary to do so in order to provide moneys to meet
any payment or transfer from such funds. For the purpose of determining at any given time the balance
in any such funds any such investments constituting a part of such funds shall be valued at the then
estimated or appraised market value of such investments.
Section 20, Warranty. The City 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 21. Covenants. So long as any of the bonds issued hereunder are outstanding and unpaid,
the City makes the following covenants with the bondholders (to be performed by the City or its proper
officers, agents or employees), which covenants are necessary, convenient and desirable to secure the
bonds and tend to make them more marketable; provided, however, that said covenants do not require
the City to expend any funds other than the revenues received or receivable from the enterprise,
Covenant 1. Punctual Payment. The City covenants that it will duly and punctually payor
cause to be paid the principal of and interest on every bond issued hereunder, together with 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 resolution, and that the payments into the Bond
Service Fund and the Reserve Fund will be made, all in strict conformity with the terms of said
bonds and of this resolution, and that it will faithfully observe and perform all of the conditions,
covenants and requirements of this resolution and all resolutions supplemental thereto and of the
bonds issued hereunder, and that time of such payment and performance is of the essence of the City's
contract with the bondholders.
Covenant 2. Dischmge Claims. The City covenants that in order to fully preserve and protect
the priority and security of the bonds the City shall pay from the Revenue Fund and discharge all
lawful claims for labor, materials and supplies furnished for or in connection with the enterprise which,
if unpaid, may become a lien or charge upon the revenues prior or superior to the lien of the bonds
and impair the security of the bonds. The City shall also pay from the Revenue Fund all taxes and
assessments or other governmental charges lawfully levied or assessed upon or in respect of the enterprise
or upon any part thereof or upon any of the revenues therefrom,
Covenant 3. Commence Acquisition and Constmction. The City covenants that as soon as
funds are available therefor, the City will commence the accompli~hment 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 4. 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 5. Against Sale, Eminent Dumain. Except as provided herein, the City covenants that
the enterprise shall not be mortgaged or otherwise encumbered, sold, leased, pledged, any charge
placed thereon, or disposed of as a whole or substantially as a whole unless such sale or other
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disposition be so arranged as to provide for a continuance of payments into the Revenue Fund
sufficient in amount to permit payment therefrom of the principal of and interest on and premiums, if
any, due upon the call and redemption thereof, of the bonds, payment of which is required to be
made out of the revenues of the enterprise, and also to provide for such payments into the funds
as are required under the terms of this resolution. The City further covenants that the revenues from the
enterprise or any other funds pledged or otherwise made available to secure payment of the
principal of and interest on the bonds shall not be mortgaged, encumbered, sold, leased, pledged,
any charge placed thereon, or disposed of or used except as authorized by the terms of this resolu-
tion. The City further covenants that it will not enter any agreement which impairs the operation
of the enterprise or any part of it necessary to secure adequate revenues to pay the principal and
interest of the bonds or which otherwise would impair the rights of the bondholders with respect to
the revenues of the operation of the enterprise, If any substantial part of the enterprise is sold the
payment therefor shall either be used for the acquisition and/or construction of improvements and
extensions of the enterprise or shall be placed in the appropriate funds and shall be used to payor
call and redeem said bonds and any parity bonds in the manner provided in this resolution and any
subsequent resolution,
The City covenants that any amounts received as awards as a result of the taking of all or any
part of the enterprise by the lawful exercise of eminent domain, if and to the extent that such right
can be exercised against such property of the City, shall either be used for the acquisition and/or
construction of improvements and extension of the enterprise or shall be placed in the appropriate
funds and shall be used to payor call and redeem said bonds and any parity bonds in the manner
provided in this resolution and any subsequent resolution.
Covenant 6. Insurance. The City covenants that it shall at all times maintain with responsible
insurers all such insurance on the enterprise as is customarily maintained with respect to works and
properties of like character against accident to, loss of or damage to such works or properties. If any
useful part of the enterprise shall be damaged or destroyed, such part shall be restored to use. The money
collected from insurance against accident to or destruction of the physical enterprise shall be used for
repairing or rebuilding the damaged or destroyed enterprise, and to the extent not so applied, shall be
applied to the retirement of said outstanding and unredeemed bonds and any parity bond issued for
the enterprise and for such purpose paid into the appropriate funds.
The City shall also maintain with responsible insurers workmen's compensation insurance and
insurance against public liability and properly damage to the extent reasonably necessary to protect
the City and the bondholders.
Covenant 7. 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,
The City covenants that it will cause the books and accounts of the enterprise to be audited
annually by an independent certified public accountant or firm of certified public accountants and will
make available for inspection by the bondholders at the office of the Treasurer and at the office of the
Fiscal Agent, a copy of the report of such accountant or accountants.
The City covenants that it will cause to be published annually, not more than 120 days after the
close of each fiscal year a summary statement showing the amount of gross revenues and the amount
of all other funds collected which are required to be pledged or otherwise made avaliable as security
for payment of principal of and interest on the bonds, the disbursements from such revenues and other
funds in reasonable detail, and a general statement of the financial and physical condition of the
enterprise, The City shall furnish a copy of the statement to the Fiscal Agent and, upon request, to
any bondholder.
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,
Covenant 8. Collection of Charges. The City covenants that, except to the extent that the City
is required under agreements and/or contracts existing on the date of delivery of the bonds, no water
or other service from the enterprise may be furnished or rendered to the United States of America, the
State of California, the City, any municipal or public corporation or district or public agency or any
private corporation or person free, and that, except to the extent that the City is required under
agreements and/or contracts existing on the date of delivery of the bonds, no such service shall be
rendered to the United States of America, the State of California, the City, any other municipal or public
corporation or district or any private corporation or person at rates lower than those charged other
persons for similar service, except that charges to the City for water used for street or sewer flushing and
for fire hydrants may be made at rates lower than those charged private persons, and all rates for service
rendered to the City shall be a reasonable charge for the service rendered. No building or other real
property of the enterprise shall be furnished free to the City, but the City shall pay into the Revenue
Fund the reasonable rental value of any property so used, and reasonable and proper charges for service
rendered or quarters furnished to the enterprise shall be paid to the City from the Revenue Fund (except
City may make a reasonable use without compensation of any property for park purposes to the
extent such use is not inconsistent with use for water purposes). The City covenants that it shall at
all times during the period any of the bonds are outstanding maintain and enforce valid regulations
for the payment of bills for water service and that such regulations shall at all times during such
period provide that the City shall discontinue water service to any user whose water bill has not been
paid within the time fixed by said regulations, which shall not be more than two months from the date
the water bill became delinquent.
Covenant 9. Rales and Charges. The City shall and hereby covenants that it shall prescribe,
revise and collect such charges for the servic:s and facilities of the enterprise which, after making
allowances for contingencies and error in the estimates, shall be at least sufficient to pay the following
amounts in the order set forth:
(a) The interest on and principal or minimum term bond payments of the outstanding
bonds as they become due and payable;
(b) All payments required for compliance with this resolution including payments required
to be made into the Reserve Fund;
(c) All payments required to meet any other obligations of the City which are charges, liens,
encumbrances upon or payable from the revenues of the enterprise;
(d) All current expenses for the necessary and reasonable maintenance and operation costs
of the enterprise;
and the charges shall be so fixed that the gross revenues shall be at least equal to the total of the
following: (1) 1.30 times the amounts payable under (a), and (2) 1 times the amounts payable
under (b), (c) and (d).
Covenant 10. No Priority for Additional Bonds. The City covenants that no additional bonds
shall be issued pursuant to said City Charter, Chapter 4B, the Revenue Bond Law or any other law
of the State of California having any priority in payment of principal or interest out of the revenues
of the enterprise over the bonds hereby authorized to be issued and payable out of said revenues.
Covenant 11. Limits on Additional Debt. The City covenants that, except for bonds issued
to refund these bonds, no additional indebtedness evidenced by revenue bonds, revenue notes or any
other evidences of indebtedness payable out of the Revenue Fund and ranking on a parity with these
bonds shall be created or incurred unless:
First: The City is not in default under the terms of this resolution.
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Second: The net revenues of the enterprise, calculated on sound accounting principles, as
shown by the books of the City for the latest fiscal year or the last completed 12 months period
ended not more than 90 days prior to the adoption of the resolution of issuance for such additional
indebtedness as shown by an audit certificate or opinion of an independent certified public account-
ant or firm of certified public accountants employed by the City, plus, at the option of the Oty, any
or all of the items hereinafter in this covenant designated (a) and (b), shall have amounted to at
least 1.30 times the maximum annual debt service in any fiscal year thereafter on all indebtedness
I
to be outstanding immediately subsequent to the incurring of such additional indebtedness.
For the purposes of this covenant, the net'revenues of the enterprise shall not include any sum
transferred from the Acquisition and Construction Fund under the provisions of this resolution. The
items any or all of which may be added to such net revenues for the purpose of applying the restriction
contained in this covenant are the following:
(a) An allowance for net revenues from any additions to or improvements or extensions of the
enterprise to be made with the proceeds of such additional indebtedness, and also for net revenue
from any such additions, improvements or extensions which have been made from moneys from any
source but which, during all or any part of such fiscal year or last completed 12 month period, were
not in service, all in an, amount equal to 75% of the estimated additional average annual net
revenues to be derived from such additions, improvements and extensions for the first 36 month
period in which each addition, improvement or extension is respectively to be in operation, all as
shown by the certificate or opinion of a qualified independent engineer employed by the City.
(b) An allowance for earnings arising from any increase in the charges made for service
from the enterprise which has become effective prior to the incurring of such additional indebted-
ness but which, during all or any part of such fiscal year or last completed 12 month period, was
not in effect, in an amount equal to 75 % of the amount by which the net revenues would have
been increased if such increase in charges had been in effect during the whole of such fiscal year
or last completed 12 month period, as shown by the certificate or opinion of a qualified independent
engineer employed by the City.
Section 22. Lost, Stolen, Destroyed or Motilated Bonds. In the event that any bond or any
interest coupon pertaining thereto is lost, stolen, destroyed or mutilated, the City will cause to be
issued a new bond or coupon similar to the original to replace the same in such manner and upon
such reasonable terms and conditions, including the payment of costs and the posting of a surety
bond if the City deems such surety bond necessary, as may from time to time be determined and
prescribed by resolution, The City may authorize such new bond or coupon or coupons to be signed
and authenticated in such manner as it determines in said resolution,
Section 23, Cancellatioo of Bonds. All bonds and coupons surrendered to the Treasurer or any
paying agent of the City for payment upon maturity or for redemption shall upon payment therefor be
cancelled immediately. Any bonds purchased by the City as authorized herein together with all unpaid
coupons pertaining thereto shall be canceUed forthwith and shall not be reissued. AU of the cancelled
bonds and interest coupons shall be transferred to and shall remain in the custody of the Treasurer,
Section 24. Couseot of Bondholders. Any act relating to the amendment, waiver or modification
of any of the said provisions of this resolution 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 resolution, 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 resolution, and after such consent relating to
such specified matters has been given, no bondholder or holder of any interest coupon, whether attached
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to a bond or detached therefrom, shall have any right or interest or 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.
Bondholders may consent by affirmative vote at a bondholders' meeting or may consent in writing
without a meeting, all as hereinafter provided.
No such amendment, waiver or modification shall be made which will permit (a) a change in
the maturity or term of redemption of the principal of any bond or any installment of interest thereon;
(b) a reduction in the principal amount of or redemption price or redemption premium or rate of
interest upon any bond without the consent of the holder of such bond; or (c) a reduction of the
percentage of the principal amount of bonds the vote or consent of which is required to effect any
such amendment,
(a) Calling Bondholders' Meeting. If the City shall desire to obtain any such consent it may
call a meeting of bondholders, by resolution, for the purpose of considering the action, the consent
to which is desired.
(b) Notice of Meeting. Notice specifying the purpose, place, date and hour of such meeting
shall be published once in a financial newspaper or journal of national circulation published in the
City of New York, New York, not less than sixty (60) days and not more than ninety (90) days
prior to the date fixed for the meeting. Such notice shall set forth the nature of the proposed
action, consent to which is desired. If any of the bonds shall be so registered as to be payable
otherwise than to bearer, the City Clerk of the City shall, on or before the first publication of
such notice, mail a similar notice, postage prepaid, to the respective registered owners thereof
at their addresses appearing on the bond registry books, The place, date and hour of holding
such meeting and the date or dates of publishing and mailing such notice shall be determined by
the City, in its discretion,
The actual receipt by any bondholder of notice of any such meeting shall not be a condition
precedent to the holding of such meeting, and failuro to receive such notice shall not affect the
validity of the proceedings thereat. A certificate by said City Clerk, approved by resolution of the
City Council that the meeting has been called and that notice thereof has been given as herein
provided shall be conclusive as against all parties and it shall not be open to any bondholder to
show that he failed to receive notice of such meeting.
(c) Voting Qualifications. Any bondholder may, prior to any such meeting, deliver his
bond or bonds to any agency designated by the City for the purpose, and shall thereupon
be entitled to receive an appropriate receipt for the bond or bonds so deposited, calling for the
redelivery of such bond or bonds at any time after the meeting, The Treasurer shall prepare
and deliver to the chairman of the meeting a list of the names and addresses of the registered
owners of bonds, with a statement of the maturities and serial numbers of the bonds held and
deposited by each of such bondholders, and no bondholder shall be entitled to vote at such meeting
unless his name appears upon such list or unless he shall present his bond or bonds at the meeting
or a certificate of deposit thereof, satisfactory to the City, executed by a bank or trust company.
No bondholders shall be permitted to vote with respect to a larger aggregate principal amount of
bonds than is set against his name on such list, unless he shall produce the bonds upon which he
desires to vote, or a certificate of deposit thereof as above provided,
(d) Issuer-owned Bonds. The City covenants that it will present at the meeting a certificate,
signed and verified by one member of the City Council and by the Treasurer stating the maturities
and serial numbers of all bonds owned by, or held for account of, the City, directly or indirectly.
No person shall be permitted at the meeting to vote or consent with respect to any bond appearing
upon such certificate, or any bond which it shall be established at or prior to the meeting is owned
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by the City, direetly or indirectly, and no such bond (in this resolution referred to as "issuer-owned
bonds") shall be counted in determining whether a quorum is present at the meeting,
(e) Qoomm and Procedure. A representation of at least sil<ty per cent (60%) in aggregate
principal amount of the bonds then outstanding (el<clusive of issuer-owned bonds) shaH be
necessary to constitute a quorum at any meeting of bondholders, but less than a quorum may
adjourn the meeting from time to time, and the meeting may be held as so adjourned without further
notice, whether such adjournment shaH have been had by a quorum or by less than a quorum.
The City shall, by an instrument in writing, appoint a temporary chairman of the meeting, and the
meeting shaH be organized by the election of a permanent chairman and a secretary. At any meeting
each bondholder shaH be entitled to one vote for every $5,000 principal amount of bonds with
respect to which he shaH be entitled to vote as aforesaid, and such vote may be given in person or by
prol<Y duly appointed by an instrument in writing presented at the meeting. The City, by its duly
authorized representative, may attend any meeting of the bondholders, but shall not be required
to do so.
(f) Vote Required. At any such meeting held as aforesaid there shaH be submitted for the
consideration and action of the bondholders a statement of proposed action, consent to which is
desired, and if such action shall be consented to and approved by bondholders holding at least
sil<ty per cent (60%) in aggregate amount of the bonds then outstanding (exclusive of issuer-
owned bonds) the chairman and secretary of the meeting shall so certify in writing to the City,
and such certificate shall constitute complete evidence of consent of bondholders under the provisions
of this resolution. A certificate signed and verified by the chairman and the secretary of any such
meeting shaH be conclusive evidence and the only competent evidence of matters stated in such
certificate relating to proceedings taken at such meeting.
(g) Written Consent of Bondholders. If the City shall desire to obtain any such consent in
writing, without a meeting of bondholders, the City Council may, by resolution, propose the action,
to which consent is desired, A copy of such resolution, together with a request to bondholders
for their consent to the action proposed therein, shaH be published once in a financial newspaper
or journal of national circulation published in the City of New York, New York. If any of the
bonds shall be so registered as to be payable otherwise than to bearer, the City Clerk of the City
shaH, on or before the publication of such resolution and request, mail a copy thereof to each
registered owner at the address appearing on the bond registry books.
The actual receipt by any bondholder of such resolution and request shall not affect the validity
of the proceedings for the obtaining of such consent. A certificate by said City Clerk, approved by
resolution of the City Council, that said resolution and request has been published and mailed
as herein provided shall be conclusive as against all parties, and it shall not be open to any
bondholder to show that he failed to receive such resolution and consent,
Each written consent shall be accompanied by proof of ownership of the bonds for which such
consent is given. Proof of ownership shall be made in such manner as shall be prescribed by the
resolution proposing the action. Any such written consent shaH be binding upon the holder of the
bonds giving such consent and on any subsequent holder (whether or not such subsequent holder
has notice thereof) unless such consent is revoked in writing by the holder giving such consent or
by the subsequent holder. To be effective, any revocation of consent must be filed before the
adoption of the resolution accepting consents as hereinafter provided,
After the holders of at least sixty per cent (60%) in aggregate principal amount of the
bonds then outstanding (exclusive of issuer-<>wned bonds) shall have consented in writing, the
City Council shall adopt a resolution accepting such consents and such resolution shall constitute
complete evidence of the consent of bondholders under this resolution.
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(h) Publication of Consent. Notice specifying the amendment, wa;ver or modification that
has received the consent of bondholders as required by this section shall be published once in
a financial newspaper or journal of national circulation published in the City of New York,
New York, not less than sixty (60) days following the final action in the proceedings for the
obtaining of such consent. Said notice is only for the information of bondholders and failure
to publish such notice or any defect therein shall not affect the validity of the proceedings theretofore
taken in the obtaining of such consent.
Section 25, 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
1968 WATER REVENUE BOND
NO.n.','.nn...........
$5,000
TIIE CITY OF SEAL BEACH, a municipal corporation situated in the County of Orange,
State of California, FOR VALUE RECEIVED, hereby promises to pay, solely from the Water
Revenue Fund, as hereinafter provided, to the bearer or, if this bond be registered, to the registered
owner hereof, on January I, 19_00"" upon presentation and surrender of this bond, the sum of
FIVE THOUSAND DOLLARS, with interest thereon at the rate of ........ % per annum, payable
semiannually on the first days of January and July 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 prior to maturity and shaIl 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
resolution 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 main office of
Bank of America National Trust and Savings Association, in Los Angeles, California, or San
Francisco, California (or collectible through any of its branches in 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 designated "1968 Water Revenue
Bonds," hereinafter called "the bonds," all of which have been issued pursuant to the Charter
of the City, Chapter 4B of the Seal Beach City Code and the Revenue Bond Law of 1941 (Chapter
6, Part 1, Division 2, Title 5 of the Government Code of the State of California) for the purpose of
the acquisition, construction and financing by said City of additions to and improvements of the
water system of said City and the creation of said issue and terms and conditions of the bonds are
provided for by the resolution of the City Council of said City authorizing the bonds adopted
...'.._______00............" 19__00"'" designated Resolution No. 00"""00__' and this reference incorporates said
resolution and said Revenue Bond Law of 194 I herein to the extent that the same is applicable
under said Chapter 4B and by acceptance hereof the holder of this bond and the coupons hereto
attached assents to said terms and conditions. Said resolution is adopted under, and this bond and
the interest coupons hereto attached arc issued under and arc 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 not a
debt of the City of Seal Beach, nor a legal or equitable pledge, charge, lien or encumbrance
upon any of its property or upon any of its income, receipts, or revenues except the revenues of
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Resolution Number
the water system pledged to its payment, and the principal and interest of this bond and any
premium upon the redemption hereof are payable solely from the revenues pledged to its payment,
to wit, gross revenues from the water system of the City and said City is not obligated to pay
such principal and interest and premium except from said gross revenues. The Water Revenue Fund
is established under and pursuant to the Charter of the City, said Chapter 4B and said Revenue
Bond Law of 194 I, and under the provisions of the resolution authorizing the issuance of this
bond the gross revenues received from the services, facilities and water of the City (except for
reimbursable charges and deposits to secure service) are required to be deposited to the credit
of said Water Revenue Fund and used only for the purposes authorized by said resolution,
including the payment of principal and interest of the issue of bonds of which this is one and the
payment of the necessary and reasonable maintenance and operation costs of the water system,
By the terms of covenant expressed in said resolution, the City is obligated to levy and collect
charges for services, facilities and water of the water system of the City such as to provide revenues
sufficient to pay the principal of and interest on the bonds as they become due and payable in
addition to all other payments required for compliance with said resolution and the necessary and
reasonable maintenance and operation costs of the water system, is prohibited from issuing bonds
having any priority with respect to payment from the water system revenues, and is subject to
conditions with respect to any sale of said water system. In the manner provided in the resolution,
any or all of the obligations referred to in this paragraph and certain other obligations mentioned
in said resolution may be amended, waived or modified with the consent of the holders of 60% in
aggregate principal amount of the outstanding bonds, exclusive of issuer-{)wned bonds,
Unless this bond matures on or prior to January I, 1983, it is callable and redeemable prior
to maturity in accordance with the provisions for redemption endorsed hereon.
This bond and the coupons hereto attached are negotiable instruments and shall be negotiable
by delivery. This bond may be registered as to principal only or as to both principal and interest,
in accordance with the provisions for registration 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 indebtedness 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 laws of the State of California
and the Charter and ordinances of the City, and that this bond, together with all other indebtedness
of the City pertaining to the aforesaid water system, is within every debt and other limit prescribed
by the Constitution and Statutes of the State of California and the Charter and ordinances of
the City.
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 the corporate seal . to be reproduced hereon, and the
interest coupons hereto attached to be signed the City Tr surer by his facsimile signature,
and has caused this bond to be dated the of J a u!!"y,
Countersigned:
He~<A:tA~
ity Clerk of the City of
Seal Beach, California
4CV~4.t::;~
City Treasurer of the City of
Seal Beach, California
(SEAL)
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Resolution Number
9-15-67
(COUPON FORM)
On the first day of
THE CITY OF SEAL BEACH, CALIFORNIA, will pay to the bearer, at the
Main Office of Bank of America National Trust and Savings Association, Fiscal
Agent for the City, in Los Angeles, California, or San Francisco, California, or,
at the option of the holder, at any paying agent of the City in Chicago, Illinois,
or in New York, New York, out of the Water Revenue Fund of said City
and not out of any other fund or moneys of the City, the sum of
in lawful money of the United States of America, being the interest then due on
1968 WATER REVENUE BOND, No.
dated January I, 1968, subject to tbe
provisions on the reverse hereof.
m____",__ 19___m
Coupon No.
$nmnnmo_,on
~~{~~
City of Seal Beach, California
On the reverse side of the coupon there shall be printed substantially the following:
(REVERSE OF COUPON)
If the bond to which this coupon is attached is callable and redeemable prior to maturity and is
duly called for redemption on a date prior to the maturity date of this coupon, this coupon will be void,
PROVISIONS FOR REDEMPTION
Unless this bond matures on or prior to January I, 1983, it is redeemable in the manner and
subject to the terms and provisions, and with the effect, set forth in the resolution referred to on the
face of this bond, at the option of the City, on January I, 1984, or on any interest payment date
thereafter prior to maturity, upon at least 30 days' prior notice published in a newspaper circulated in
the County of Los Angeles, California, and in a financial newspaper or journal of national circulation
published in the City of New York, New York, at a redemption price for each redeemable bond equal
to the prineipal amount thereof, plus a premium as set forth below if redeemed at the following times:
Premlom (staled Premium (staled
as a perceolage as a perceolage
00 or After and Prior to of principal) On or After and Prior to of prIoclpal)
1984 1985 3~% 1991 1992 1%%
1985 1986 3~ 1992 1993 1~
1986 1987 3 1993 1994 I~
1987 1988 2% 1994 1995 I
I 1988 1989 2~ 1995 1996 %
1989 1990 2~ 1996 1997 ~
1990 1991 2 1997 1998 ~
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~
.
I
I.
9-15-67
Resolution Number
PROVISIONS FOR REGISTRATION
This bond may be registered in the name of any person as the registered owner hereof, either as
to principal only or as to both principal and interest, and, jf registered in either of said forms may be
transferred, changed to registration in the other of said forms or discharged from registration.
Each registration, transfer after registration, change of form of registration, or discharge from
registration of this bond shall be entered by the Fiscal Agent in books kept by it for the purpose and
noted by it in the registration blank below, Registration as to principal only shall not affect the
negotiability by delivery of the coupons pertaining hereto. Upon registration as to both principal
and interest, all unmatured coupons pertaining hereto shall be surrendered to the Fiscal Agent and
may be preserved or cancelled in his discretion.
So long as this bond is registered no transfer hereof shall be valid for any purpose unless made by
the registered owner and entered and noted as herein provided, and the principal hereof and any
redemption premium shall be payable only to the registered owner, or to his order, Interest on this
bond, if registered as to both principal and interest, shall be payable to the person whose name appears
upon the registry books as the registered owner hereof at the close of business on the tenth day preceding
the interest payment date, or to his order. If this bond is registered as to both principal and interest
and its registration is changed to registration as to principal only, or if it is discharged from registration,
there shall be attached hereto coupons representing interest hereon to become due thereafter to the
date of maturity hereof, If requested by the registered owner, in lieu thereof, and upon surrender
and cancellation thereof, the Fiscal Agent may issue in exchange therefor a new bond, with such
coupons attached, identical with this bond except for the previous notations on the registration blank
hereon, and except that the signatures on the new bond sIiall be those of the persons holding the
offices at the time of affixing such signatures. The issuance of any such new bond or new coupons
shall be at the expense of the registcred owner,
Each discharge hereof from registration shall be effected by an entry on the registry books, and
a notation in the blank below, that this bond is payable to bearer, whereupon this bond shall become
an unregistered bearer instrument, negotiable by delivery as if it had never been registered. Each
request for registration, transfer, change or discharge must be in form satisfactory to the Fiscal Agent
and must be made in writing, signed by the registered owner, or by his agent duly authorized in writing,
or by the bearer, as the case may bc,
Date of In Whose Name MaDDer of Slgoatore of
Reglslralloa Reg/skred RqIolrallon Fls<aJ Agent
O______..n_.nnn_hu__n....u_... _'_'___O.._nn_n______.__nn..__.__ ____un...._u_n_..._n___..._...... ____n.....u._nnn..............._.
nno____n_________________n______._ .....n_n..........___..._____....n_ n.___n_no_______o....____....___.__ ____n______.._n"On.._______.__.___..
__no____nO_____n_..._____..___n_._ _____.__e_____nn..____..______.___.. n_.._nonOnnn_..u__n_u_u___n nun_~___________n_._un__.nnn_
nno_nn_.___unn_______u___n_.. __n_n_~____n_nu_u__n_u_Onn_. un._uno___u_n.n___nou_u___u .n_n_~o._n_.~__n____u_h_.unn_
Section 26. Proceedings Constitute Contract. The provisions of this resolution and of the resolu-
tions 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 provisions
thereof shall be enforceable by any bondholder for the equal bencfit 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.
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Resolution Number
9-15-67
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 the Revenue Bond Law of 1941 or
any other law of the State of California, No waiver of any default or breach of duty or contract by any
bondholder 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 or exercise any remedy shall
be brought or taken and the bondholder shall prevail, said bondholder shall be entitled to receive
from the 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 bond-
holders 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 resolution shall be irrepealable, but shall be
subject to modification to the extent and in the manner provided in this resolution, but to no greater
extent and in no other manner.
Section 27. 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 other than the revenues of the enterprise as defined
herein, and from and after the sale of the bonds the general fund of the Oty shall not include the
revenues of the enterprise and no contract or olhcr obligation payable from the general fund of the
City shall be payable from the revenues of the enterprise, except as provided herein.
Section 28, SeverabRity. If any covenant, agreement or provision, or any portion thereof, con-
tained in this resolution, or the application thercof to any person or circumstance, is held to be unconsti-
tutional, invalid or unenforceable, the remainder of this resolution and the application of any such
covenant, agreement or provision, or portion thereof, to other persons or circumstances, shall be deemed
severable and shall not be affected thereby, and this resolution and the bonds issued pursuant hereto
shall remain valid and the bondholders shall retain all valid rights and benefits accorded to them
under this resolution and the Constitution and laws of the State of California, If the provisions relating
to the appointment and duties of a Fiscal Agent are held to be unconstitutional, invalid or unenforceable
said duties shall be performed by the officer of the city performing the functions of a treasurer.
Section 29. Etledive Date. This resolution shall take effect upon adoption.
ADOPTED, SIGNED AND APPROVED thi ,..___.2 .._. ....:k# /"($ ?'
Attest:
Mayor of the City of
Seal Beach, California
~t.,(/.c;;4{~~
Oty Clerk of the City of
Seal Beach, California
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Resolution Number
9-15-67
STATE OF CALIFORNIA 1
~ ss.
COUNTY OF ORAN."GE J
I~~_!l!,!~ity Clerk of the City of Seal Beach, California, DO HEREBY CERTIFY
that the forego!9Jl:!p'olution ;J;;IY adopted by the City Council of said City at a regular meeting
held on the __/..r~ay of __ k" 1967, and that it was adopted by the following vote, to wit:
A t:)j t... _
AYES:~Mlve ~ 7-'____ ~~dn:u~ ~
NOES: ~
ABSENT: ~
~e"a~~
City Clerk of the City of Seal Beach, California
(SEAL)
STATE OF CALIFORNIA }
ss,
COUNTY OF ORANGE
I~~~J!?~" City Clerk of the City of Seal Beach, California, DO HEREBY CERTIFY
that the above and foregoing is a full, true and correct copy of Resolution No/.r..?L_, and that the
same has not been amended or repealed.
DATED: .~~lf.m____, 1967.
/('A).~/~~.__- ~
City Clerk of the City of Seal Beach, California
(SEAL)
22