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CITY OF R=^DL�°^`°=^,
RUSOmJD]ION�.NO.
~~ESO^-U^~'^~ OF THE CITY COUNCIL OF THE CITY OF REDLANDS,
CALIFORNIA, AUTHORIZING THE ISSUANCE OF $1,500,000 WATER
REVENUE BONDS OFSAID CITY AND PROVIDING THE TERMS
AND CONDITIONS FOR T14E ISSUANCE OF SAID BONDS.
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Recitals -._~__-___~_===`=-==_=_-_.____^-_---__.,._.-~_.---~~=~__==,=-`=_-^="__-___-`...-__'
Section 1. Definitions....__.............._'-_.... ------ ......-........=-.....................~............ ........
--__--~ �
Section 2. Equality of Bonds, of ----- ,w~~-______�_------------____----..........~ 2
Section 3. Amount, Issuance, Purpose and Nature of Bands._..__ ................ -.............. 3
Section 4. No General City __-__-__-___.^--~__,__^__+____~_-____`=__'^__.- �3
Section f. Description of Bonds.---- ........ __....___` ---------------------- ........... ~_---^........... ..........=- 3
- _ 4
`Section� 6. ,n^eres�_---.-_�~-=___~-=-----e-�^------`-~^~--~_-~^~-~_~=-=---~--_=_-°~~^-
Section 7. Execution of .__----- .......__--_.~__~_.........__------- ..............- .........- 4i
Section0. -------___-____--___------------_............____............ 4
Section 9. Redemption of Bonds._~__........____...... ..... _ ------- - 4
(a) Notice ofRedemption.... _- ............... ............ __=____-_-_......... -`__...... 4
(b) Redemption Fund................ .....`-----------_~----------- ......... -_-~-~---~~' 5
(c) Effect of the Notice of ..........._._°-----------_= -`�-. �5
Section 10, ]Fiscal ^.. ............-~_.__._�'_=._==-�......___-�_=.=- ._ 6
Section11,` _-.........+___------ '�.~~_°-------____�=°__.......__��__' ___,__."~__�^_� 6
Section 12. of Bond Proneeds.....____......._--- ------_-_~....... .____.~=_°`._.-_=- 7
Section 1$. Revenue Fund...... ----_=.............. ........ .......~~....._........ ~-.~==__--------- - -_- 7
Section 14. BondiService ........._'...... ~___._~~_~_~ -7
Section 15^ Sinking Fund,_-- ......_ ------------ ...............____-----------'__-___'.__°~........—~=~,--``e~, 0
Section 16. Reserve lFund_.................._~______ _.........____-------,==.__^_____,__. ....... __ �9
Section 17. M 4c0 Fond~_.......... .....__..= ------------___.--- ^�.'=-"---------__^= _,~_-_-__'^^._.,------ to
|Section 18, Surplus Furd__.._____ ------......................... =_.._.__=_-__-__-....... .__-_,_.............. 10Section '
' 19� ............_-._^=_.........~_____._ .__.......... _-- __---------`���-e-^.......-- 10
Section20' Warranty ^_~=_'............._-_ _..__��-~~__=_^~=�----------._=-----------_..--------------- .. to
Section 21� _ -------- ......____=~_______ ........ _^ 10
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Covenant q. Commence_Acquisitionand .--- _------------- ------------= 11
Covenant 4. Operate Enterprise in Efficient and _....... It
Covenant 5. Against Sale, Eminent Dwomabm-__------- -------____---------__ ---.__ 11
Covenant 6. --------- ==,. 11
Covenant 7, Records and ----------------~ ------~-------- ------------ --_- �12 -
Covenant 8. Collection of ___~-_-__--_._-_------____------ ---------- 12
"Covenant 9. Rates and Charges..-----_ .......___----------- -.__=~=.=_------ 12
`Covenant 10. No Priority for Additional Bonds.--------- ----------------------------------_ 13
'Covenant 11~ Limits on Additional Debt...........'—... ..............- .....°---......_-- 13
Section 22. Lost, Stolen, Destroyed or Mutilated Boodm_._............. -------_.---____.~-........ 14
Section 23. Cancellation of .......................... ___-~__-__-_-....... '................. 14
Section 24. Consent of _________ ______`=, 14
(a) Calling Bondholders' Meeting--------------------_^-------^................... ------------ _._~~` 14
- - Y�md��m� Meeting__ 14
,
— --------------------------------- ___ 15
(d) Issuer-owned 15
(=)'` and Procedure-----~_ ................ _ ,~-= 15
-- Vote Required.-____...... ------ .........- _,-� 15
~) Written Consent of - ...__--__~--_ .....-....... __-...... - 15
(b) Publication of Consent...........____------------.__..-------- ........ 16
Section 25, Bond and Coupon Fomzom__ --------------'---------------___,__---------__-____^______ ------- 16
Section ^26. ------- .........____............_.................._=___...... ...... 19
Section 27. Future Contracts-----~_.--------- ........~---_-------- ................................._~-_--_-_.__~--__ 20
Section28. ------------ _=.=__-------------=~�=_==_~.-_..=.=.................... =,--------------- ...'= 20
Section 29. '___-_ 20
MY OF REDLANDS
RFSOLUTION NO. .2. 88........
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS,
CALIFORNIA, AUTHORIZING THE ISSUANCE OF $1,500,000 WATER
REVENUE BONDS OF SAID CITY AND PROVIDING THE TERMS
AND CONDITIONS FOR THE ISSUANCE OF SAID BONDS.
WHEREAS, pursuant to Resolutions Nos. 2541 and"2544, a special municipal election was held
in the City of Redlands on October 18, 1466; for tate purpose of submitting to the qualified voters of
said city the proposition of issuing water revenue;bonds of said city in the amount of $3,00,00
pursuant to the Revenue Bond Law of 1441 (Chapter 6, Fart 1, Division 2, Title 5 of the Govern-
ment Code of the Stag of California) for the following purposes, to wit:
The acquisition, construction and financing of additions to the waterworks system of the City of
Redlands„ including works and facilities for the production, treatment, storage, transmission and
distribution of coater, including water storage. reservoirs, water wells, water treatment plants, water
transmission mains, pumping stations; and for the foregoing appurtenances and appurtenant works;
and including the acquisition of all water rights, lands, easements, pipe, pumps, valves, fittings, meters,,
machinery, equipment, materials,, apparatus and rather property necessary therefor, and including all
fees, costs and expenses incidental to and connected with such acquisition and financing.
and
WHEREAS, said proposition was approved by the votes of more than; a majority of all the
voters voting on said proposition at said special municipal election, and this City is now authorized
to issue said bonds as provided in said revenue Bond Law of 1441; and
WHEREAS, this City Council deems it necessary to issue and sella portion of said bonds;
NOW THEREFORE, the City Council of The City of Redlands, California, IDES HEREBY
RESOLVE; DETERMINE AND ORDER as follows
Section 1. Definitions. As used in this resolution the following terms shall have the following
meanings
(a) "City" means the City of Redlands, California.
(b) "City Council" or "Council" means the City Council of said City.
c) "Treasurer" means the City Treasurer of said City.
(d) "Revenue Bond 'Law" means the Revenue Mond Law of '1441 as cited in the recitals
hereof.
(e) "The bonds" or "said bonds," or "this series" means the bonds authorized by this
resolution.
(f) "Enterprise" means the enterprise defined in resolution No. 2541 calling said election
as follows:
"That the enterprise referred to herein [See, 5, Resolution No. 25411 is defined to he the .
entire waterworks system of the City of Redlands, including, without limitation; all works and>
facilities to be acquired, constructed and financed with funds derived from the sale of the
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revenue bonds herein proposed to be issued and all improvements and extensions to said
system later constructed or acquired."
( ) "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 ether 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 and facilities of the enterprise including all revenues from leases
of property owned by the City for use in connection with the enterprise, but excluding connection
charges.
(h) "Net revenues of the enterprise" means the amount of the gross revenues of tate enter-
prise less the necessary and reasonable maintenance and operation coasts of the enterprise.
(i) "Necessary and reasonable maintenance and operation costs of the enterprise" means the
amount required to pay the reasonable expenses of management, repair and other costs necessary'
to operate, maintain and preserve the enterprise in good repair and working order excluding
depreciation.
()) "Maximum annual debt service shall be the 'maxirnusn sura obtained for any fiscal year
thereafter by totaling the following for such fiscal year.
(1) The principal amount of all outstanding serial bonds of this issue and any parity
serial bonds payable in such fiscal 'year,
(2): The minimum principal amount of all outstanding term bonds of this issue and
any parity term bands 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.
(k) "Parity bonds" means revenue bands, 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.
(I) "Subsequent resolution"' means any resolution of issuance for any parity bonds.:
(m) "Fiscal year" means the year period beginning on July 1 and ending can the next
following .lune 30.
( ) "Authorized investments" means any securities in which the City may legally invest
funds subject to its control.
(o) "Fiscal .gent" 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 revenue Bond Law of 1941
and this resolution, the outstanding bonds 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 execution, or date of delivery, and the payment of the interest on and principal of said out-
standing bonds and any premiums upon the redemption of any thereof 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 (including revenues of improvements and extensions later constructed
or acquired and revenues of existing systems; plants,- works or undertakings to be acquired, unproved
or extended or for the acquisition, improvement or extension of which said bands are to be issued)
are hereby pledged, charged and assigned for the security of said outstanding bands, and such grass
revenues and any interest earned on the. ,gross revenues shall constitute a trust fund for the security
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and payment of the interest on and principal of said outstanding bands 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
prier to maturity of any bonds subject to call and redemption and payment of said bonds from proceeds of
refunding bonds issued under said Revenue Bond Law of 1941 as the same now exists or as hereafter
amended, or under any other law of the State of California; (b) the issuance; subject to the limita-
tions contained herein, of additional indebtedness evidenced by revenue bonds, revenue notes or any
other evidences of indebtedness payable out of the revenues of the enterprise and ranking on a parity with
said bonds.
Any bond for the payment and discharge of which upon or prior to maturity, or upon redemption
prior to maturity, provision has been made through the setting apart in the Bond Service Fund or
Redemption Fund or in a special trust fund or account created pursuant to this resolution to insure the
payment or redemption thereof (as the care may be), of money sufficient for the purpose, or through
the irrevocable segregation for that purpose in some fund or trust account of moneys sufficient;therefor,
shall be deemed to be no longer outstanding and unpaid within the meaning of any provision of this
resolution:
Section 3. Amount, Issuance, Purpose and Nature of Brands. Underand pursuant to said
Revenue Band Law revenue bonds of the City in the amount of $1,500,000 shall be issued for the
purpose stated in the recitals hereof. Said revenue bonds;shall be and are special obligations of the
City 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, stalely from:the gross revenues of the enterprise, such gross revenues being
hereby pledged, charged and assigned for the security of the bunds:
Section 4. No General City Liability. The general fund of the City is not liable for the payment:
of the bonds or their interest, nor is the credit or taxing power of the City 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 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 are not a debt of the City 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 gross revenues of the enterprise which are, under the terms of this
resolution and said Revenue Bored Law, pledged to the payment of said bonds and interest.
Section 5. Description of Bonds. The bonds shall be in the principal sura of $1,500,800. The
bonds shall all be in the denomination of $5,000, and shall be Silt} in number; numbered l to 300,
inclusive. The bonds shall be designated "1967 WATER RE'V'ENUE BONDS, Series A," shall be
dated April 1, 1967„ and shall be payable in consecutive numerical order on April 1 in each year of
maturity in the amounts for each of the several years as follows:
Bonds Binds
Year maturing Year Maturing
1968_..----- $ 25,000 1976______ _______d_ ._.......,.. . $ 35,000
1969.........._. 25,000 1977..:.. ......... ....... ... u 35,0
1970--.......... .. a.-., _ „ ,. 25,000 1978..,---.._----- 40,000
1971. . ... :.. . ..:....... 30,0011 1979. .:.. . _ ._..m. _....;._.._,.: 40,000
1972---------.....--------------- 30,000 1980_..,.. -------- ..__......... 40,000
1973----. ........ .......a, 30,000 1981....:---..._... . ------- _w.: 45,000
1974 ...... .. ......a.. 35,000 1982....... ......... 45,000
1975 ......:.......... _..._..e< 35,000 1997....; _.___.... .__..-..__.. 985,(1W
3
The bonds maturing in the years 1970 to 4982, inclusive, are herein sometimes referred to as
"serial bonds." The bonds maturing in the year 1997 are herein sometimes referred to as "term
bands."`
Section o. 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 (fs%a) per annum, payable semiannually on
the Ist days of August and February of each year; Each bond shall bear interest until the principal
sunt 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 bands and the interest thereon shall be payable i , 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 the office of the City Treasurer„or, at any paying agent
of the City its Chicago, Illinois, or in New York, New York.
Section 7. Execution of Bonds. The Mayor of the City and the Treasurer are hereby authorized
and directed to sign all of the bonds by their printed, lithographed or engraved facsimile signatures,
and the City Clerk of the City is hereby authorized and directed to countersign the bonds and to affix
thereto the corporate seal of the City, and the Treasurer is hereby authorized and directed to sign the
interest coupons sof the bonds by his printed, lithographed or engraved facsimile signature.
Section 8. Registration. The bonds may be registered either as to principal only or as; to both:
principal and interest, and the form of registration may be changed or any registered'; bond may b
discharged from registration in the mangier and with the effect set forth in the provisions for registration
contained in the farm of bond set forth herein.
Section 9. Redemption of Bonds. The bonds maturing on or prior to April 1; 1977, are not
subject to call or;redemption prior to maturity. The bonds mattering on and after ,April 1, 1978, are
subject to call and redemption, at the option of the City, on:April 1, 1977, 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 one-quarter of one per cent of said principal amount for each year or
fraction thereof remaining between the redemption date and the maturity date of such bond.
All or any of the bonds subject to call may be called for redemption at any one time. If less than
all of the bonds are redeemed at any one time, such bonds shall be redeemed in inverse order of
maturity and by lot within each maturity. The interest ;payment date on which bands 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 San Bernardino, California, and in a financial news-
paper or Journal of national circulation published in,the City of New York, New York, said publica-
tions to be at least 30 days but not more than Cstl 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 bands 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 Leis Angeles, California,
or San Francisco, California (or collectible through any of its branches in California) or, at the option
of the holder, at the office of the City Treasurer, or 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 Discal Agent shall, on or before the date of publication of said notice of redemption, retail a
similar notice, postage prepaid to any person, herr or corporation that originally purchased any of
said bonds from the City.
If any of tete bands designated for redemption 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 boots.
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 bands or the cessation of
interest on the date fixed for redemption. The notice or notices required by this section shall be givers
by the Fiscal Agent. A certificate 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 a
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.
(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 -1967 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 boards 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 andsurrender of such bonds and (except as to bonds registered as to bath 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 hand 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
fiend 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 bonds designated for redemption shall become
due and payable on the redemption date; and upon presentation and surrender of said 'bonds and;
(except as to bands 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 data~ shall'look for the payment of
such bands 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 1967 'dater 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 for collectible through any of its branches
in California), and for the purpose of performing all rather 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 Lacs Angeles so
long as any of said bonds or any parity bonds are outstanding and unpaid. "Elie Fiscal Agent is hereby
authorizedand directed to withdraw from the funds and in the manner provided herein all suras 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 prier 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 bands 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 snakes 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, Cather than in connection with the duties or obligations he-rein
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 aa; new Fiscal Agent, which may
be the corporation resulting from such reorganization.
Section 11; Funds. Linder and pursuant to said Revenue Stand Law there are hereby created the
following funds which shall be applied pursuant to this resolution and under and pursuant to said
Revenue Bond Law:
(l) 1967 Water Revenue` Bonds, Acquisition and Construction Fund (herein sometimes
referred to as "Acquisition and Construction bund," held by the Treasurer);
(2) 1967 Water Revenue Bonds, Water Revenue Fund (herein sometimes referred to as
"Revenue Fund," Held by the Fiscal Agent);
( ) 1967 Water Revenue Bonds, Bond Service Fund (herein sometimes referred to as "Bond
Service Fund," held by the Fiscal Agent);,
(4) 1967 Water Revenue Bonds, Sinking Fund (herein sometimes referred to as "Sinking
Fund," held by the Fiscal Agent);
(5) 1967 Water Revenue Bonds; Reserve Fund (herein sometimes referred to as "Reserve'
Fund," held by the Fiscal Agent);
6
(6) 1967 Water Revenue Bonds, Maintenance and Operation Fund (herein sometimes referred
to as "M & 0 Fund," held by the Treasurer);
(7) 1967 Water Revenue-Brands, Surplus Fund (heroin sometimes referred to as "Surplus
Fund," held by the Treasurer).
Section 12, Disposition of Band. Proceeds. ' he proceeds of the sale of the brands shall be received
by the Fiscal Agent and deposited as follows:
(1) The accrued interest and premium, 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 upended for the purposes for which the bonds were issued.
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 slates on wvhich.
moneys must be available to:meet scheduled Acquisition and Construction :Fund expenditures. If any
sutra 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, can or before the fifteenth clay of each calendar
month next succeeding the calendar month in which the grass revenues of the enterprise have been
collected, deposit the cross 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 as follows.
Section 14. Bond Service Fund. On or before the twentieth,day of each calendar month sea 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) Cine-sixth (1/6th) of the interest which will become
dine and payable on the outstanding bands within the next ensuing six (6) months, except that for the
first six (6) months after the date of the brands, the monthly sura 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 Brand 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 bands 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 ether reason the deficiency shall be added to and become a part of the>
transfer lir transfers required for the following calendar month.
Such surras shall be transferred so that the fill 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 Funds at least fifteen (15) days prior to the date the installment of interest and/or
principal becomes due.
Any moneys required to he set aside, transferred to and placed in the Bond Service Fund may be
prepaid in whole or in part by being earlier set aside, transferred to and placed in the Blind 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 Service Fund.
7
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Moneys in the Bond Service Find may be temporarily invested in any authorized investments
provided-that the maturity or maturities thereof shall not be later than the date or elates on which
money trust be available in the Bond Service Fund.
The interest coupons shall recite that they are payable from the Revenue Fund, but said coupons
notwithstanding such recital shall be paid from the Band 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 Fuad 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 Fuad and transfer into the Sinking Fund on or before the twentieth day of each
calendar month commencing in March of 1977, an amount not less than the minimum amount hereinafter
specified. Such transfers shall in no event 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 April I in each of the following
years:
]titinitnntn Amon t
Year Each Year
1983-1985_~..: ................... ------- $50,001
1986-1987...:.. ........ ..... 55,000
1988-1989_...,. ...... m..R _ _. : ------------ 60,000
1990-1991----- ..__._a,. __._ --------- 65,000
1992 ....... ._.-..,., ......... .....a., 70,000
1993-19941 ..... .... .------- . . ..n._..a.__-- 75,000
1995 ---.---. . .: . .........e_. _._ae_.._.v.m.w 80,000
1996' -----------1--.- .., m_.. -------------- 85;000
1997 ...::... .......... .... ......... . . 90,000
The minimum term bond payment to be made on or before the twentieth day of each calendar month
as aforesaid shall be one-twelfth (I/12th) of the amount needed to call and.redeem the minimum amount
of term. bonds (including premium-, 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 terra bond payment for that month
because of lacy 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 February 7, 1976, 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 stalely for the purpose
of purchasing or calling and redeeming bonds of this issue prior to maturity. Moneys in the Sinking
8
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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 brokerage lir Cather charges, but excluding accrued interest) shall not exceed 105
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 redemption date of the bonds so purchased.
If on February 7, 1977; or on any February 7 of any year thereafter there shall be in said Sink-
ing
nk-ing Fund an amount at least sufficient (including premiums) to call bonds of this issue subject to call,
the morays 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 moneys available:. Moneys in the Sinking Fund to be used to
call bonds shall for that purpose be transferred to the Redemption Fuad 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 transferred to the Redemption Fund;
If after all of the bonds and any parity bonds have been redeemed and cancelled or paid and
cancelled there are any moneys remaining in the Sinking 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
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 terra, bonds shall rank on
a parity with the minimum terns bond payments to be placed in the Sinking Fund for the redemption
of terra bonds of this issue.
Section 16. Reserve Fund. From the proceeds of the sale of the bonds there shall be placed in
the Reserve Fund an amount equal to maximum annual debt service, and thereafter there shall be
maintained in said Reserve Fund by transfers from the Surplus Fund or the Revenue Fund-an amount
equal to maximum annual debt service:
From the proceeds of the sale of any parity bonds there shall 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 deserve Fund on the same day, will make the Reserve Fund-
equal to maximum annual debt service and thereafter there shall be maintained in said Reserve Fund
an amount equal to maximum annual debt service.
Moneys in the Reserve Fund shall be used stalely 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 Fuad
are insufficient therefor and for that purpose the Fiscal Agent shall withdraw and transfer moneys from
the Reserve Fund to the Bond :Service Fund. NNIenev r moneys are withdrawn from the Deserve
Fuad 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 moray in the Reserve Fund or other-earnings hereof shall be deemed
to be part of the gross,revenues of the enterprise and shalt 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 brands or any parity bonds;:
9
Section 17. M & 0 Fund. All moneys remaining in the Revenue Fund on or before the t�hth
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 duty 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 105% of the principal amount or the
redemption price of the callable bonds on the next redemption date; or (5) used for any lawful
purpose of the City.
Section 19. Investments. Except as hereinbefore provided, obligations purchased as investments
of moneys in any of the funds in which investments are authorized 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 under the provisions of the Revenue
Bond Law of 1941 (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 pay or
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 tile 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.
10
Covenant 2. Discharge Claims, The City covenants that in order to full= preserve and protect
the priority and. security of the bonds the City shall pay= from the Revenue bund 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 tlac security of the bonds. The City shall also, pay from the Revenue Fund all
taxes and assessments or rather 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 2: Commence Acquisition and Construction. The City covenants that as soon as
furans are available therefor, 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 dispaatch 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 Domain. Except as provided herein, the City covenants that
the enterprise shall not be mortgaged or otherwise encumbered, sold, leased, pledged, any chane;
placed thereon, or disposal of as a whole or substantially as a whole unless such sale or other
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 chane placed thereon, or disposed of or used except as authorized by the terms of this
resolution. The City further covenants that it will not enter into 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 repect to
the revenues of the operation of the enterprise. if any substantial part of the enterprise is solei the pay-
ment 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 flay or 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 plated in the appropriate funds and shall be
used to pay or call and redeem said bonds: ;.and away parity bonds in this manner provided in this
resolution and any subsequent resolution:,
Covenant 6. Insurance. The City covenants that it shall at all tunes maintain with responsible
insurers all such insurance can 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 Dart shall be restored to use. The money
collected from insurance against accident to or destruction of the physical al enterprise shall be used for
repairing or rebuilding the damaged or destroyed enterprise-, and to the extent not so applied, ,shall b
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.
4
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The City shall also maintain with responsible insurers workmen's compensation insurance and
insurance against public liability and property 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 it 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 available 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,
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 per-son free, and that, except to the extent that the City is required under agree-
ments 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, corpo-
ration 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 inake 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. Rates and Charges. The City shall and hereby covenants that it shall proscribe,
revise and collect such charges for the services 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;
12
(b) All payments required for compliance with this resolution including payments required
to be made into the Reserve Fund
(c) All payments requires to meet any rather 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
sof the enterprise,
and the charges shall be so fixed that the gross revenues shall be at least''1,25 times the amounts payable
under (a), and shall be 1 times the amounts payable under (b), (c) and (d)®,
Covenant 10. No Priority for Additional goods. The City covenants that no additional bonds
shall be issued pursuant to said 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 1.1. Limits on Additional Debt. 'rhe 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 pay=able 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.
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 City, any
or all of the items;hereinafter in this covenant designated (u) and (b), shall have amounted to at
least 1.25 times the maximum annual debt service in any fiscal year thereafter on all indebtedness
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 Fuad 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 completes) 12 month period, was
not in effect, in an amount equal to 75% of the amount by which the net revenues would have
been increases) 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',
13
Section 22. Lost, Stolen, Destroyed or Mutilated 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. Cancellation 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 thereforbe
cancelled immediately. Any bonds purchased by the City as authorized herein together with all unpaid
coupons pertaining thereto shall be cancelled forthwith and shall not be reissued. All of the cancelled
bonds and interest coupons shall be transferred to and shall remain in the custody of the Treasurer.
Section 24, Consent 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
(if 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
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 of 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 he 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 failure to receive such notice shall not affect the
validity of the proceedings thereat. A certificate by said City Clerk, approved by resolution of
14
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 bond-
bolder to show that be 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 chairmanof 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 be 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) Ismw-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 persona 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 by the City, directly 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) Quorum and Procedure. A representation of at least sixty per rent (60%) in aggre-
gate principal amount of the bonds then outstanding (exclusive of issuer-owned bonds) shall 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 shall 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 shall be organized by the election of a permanent chairman and a secretary. At any meeting
each bondholder shall be entitled to one vote for every $5,000 principal amount of bonds, with
respect to which he shall be entitled to vote as aforesaid, and such vote may be given in person or
by proxy duly appointed by an instrument in writing presented at the meeting. The City, by its duly
authorized representative, may attend any meeting of the bondholder-,, but shall not be required
to do so,
(f) Vote Required. At any such meeting held as aforesaid there shall 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
sixty 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 shall 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 Don4holders. 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, shall 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
shall, 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 shall be binding upon the bolder 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-owned bonds) shall have consented in writing, the
City Council shall adopt a resolution accepting such consents and such resolution -,hall constitute
complete evidence of the consent of bondholders under this resolution.
(h) Publkation, of Consent Notice specifying the amendment, waiver 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 SAN BERNARDINO
CITY OF DLANDS
1967 WATER REVENUE BOND
Series A
NO. ---........... $5,000
THE CITY OF REDLANDS, a municipal corporation situated in the County of San Bernardino,
State of California, FOR VALUE RECEIVED, hereby promises to pay, solely from the Water Revenue
Fund, as hereinafter provided, to the bearer, on April 1, 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 October and April of each and every year from the date
hereof until this bond is paid, upon presentation and surrender of the respective interest coupons hereto
eem
attached; provided, however, that if at the maturity date of this bond or, if the same is red able and
shall be duly called for redemption, then at the date fixed for redemption,funds are available for the pay-
ment or redemption thereof, as provided in the resolution hereinafter mentioned, this bond shall then
16
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 the office of the City Treasurer, or at any paying agent of the City of
Chicago, Illinois, or in New York, New York.
This is one of a duly authorized series of the City designated "1967 Water Revenue Bond
dries A," hereinafter called "tire bonds," all of which have been issued pursuant to the Revenue Bond
Law of 1941 (being 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 of a water system for said
City and the creation of said issue and the terms and conditions of the bonds are provided for by
the resolution of the City Council of said City authorizing the bonds adopted ................... designated
Resolution No. ............ and this reference incorporates said resolution and said Chapter 6 herein,
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 are issued -under and are to he construed in accordance with the laws of the State of
California=
i a.
This bond and the interest hereon and any premium upon the redemption hereof are not a debt
of the City of Redlands, 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 gross revenues of the
enterprise (as defined in said resolution) pledged to its payment, and the principal of and the
interest on this bond and any premium upon the redemption hereof are payable solely from the gross
revenues of the enterprise pledged to its payment and said City is not obligated to pay such principal,
interest and premium except from said gross revenues. The Water Revenue,Fund is established under and
pursuant to the Revenue Bond Law of 194l, and under the provisions of said resolution authorizing
the issuance of this bond the gross revenues received from the enterprise 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 series of bonds of which this is one.
By the terms of said Revenue Bond Law and by covenant expressed in said resolution, the City
is obligated to prescribe, revise and collect charges for the services and facilities of the water system
of the City such as to provide revenues sufficient to pay the interest on and principal of 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 gross revenues of
the enterprise, and is subject to conditions with respect to any sale of said water system. In the manner
provided in said resolution, any or all of the obligations referred to in this paragraph and certain other
obligations mentioned in said resolution may be waived with the consent of the holders of 60% in
aggregate principal amount of the outstanding bonds, exclusive of issuer-owned bonds.
This bond 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 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 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 laws of the State of California.
17
ri
OMER ME101MM-MMINA
IN WITNESS WHERE-OF, said City of Redlands 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 scaled 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 April, 1967.
Mayor of the City of Redlands, California
COUNTERSIGNED:
City Clerk of the City of Redlands, California City Treasurer of the City of Redlands, California
(SEAL)
(COUPON FORM)
On the first day of 19__
THE CITY OF REDLANDS, CALIFORNIA, will pay to the bearer,
at the Main Office of Bank of America National Trust and Savings Association, Coupon No.
Fiscal Agent for the City,in Los Angeles, California, or San Francisco,California,
or, at the option of the holder, at the office of the City Treasurer,
or at any paying agent of the City of 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
1967 WATER REVENUE BOND Series A, No. A- .
dated
---dated April 1, 1967, subject to the
provisions on the reverse hereof.
Wil Treasurer
�uiei of trite
City of Redlands, 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 redeemable 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 April 1, 1977, 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 April 1, 1977, or on any interest payment date there-
after 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 principal amount thereof, plus one-quarter of one per cent of said principal amount for each
year or fraction thereof remaining between the redemption date and the maturity date of such bond.
18
.._,.. +. f%
t
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, if 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 boobs kept by it for the purpose and
noted by it in the registration blank below. Registration as to principal only shalt not affect the
negotiability by delivery of the coupons pertaining hereto. Upon registration as to both principal
and interest, all unnratured coupons pertaining hereto shall be surrendered to the Discal Agent and
may be preserved or cancelled in his discretion:
So tong 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 provide[, 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 yawner, 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 shall be those of the persons holding
the offices at the time of affixing such. signatures. The issuance of any such new baric# or new coupons
shall be at the expense of the registered 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 fortis satisfactory to the Fiscal Agent
and must be made in writing, signed by the registered owner, or by his;agent dryly authorized in writing,
or by the bearer, as the case may be.
Date of In Whose Name Manner of Signature of
Registration Registered Registration Flwal Agent
------------- ...:.. ---- .....<.., ....._..:, ... ....u;....... - -------
-----------------
__._.._
Section 26, Proceedings Constitute Contract. "e provision of this resolution and of the
k:
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 provisions
thereof shall be enforceable by any bondholder for the equal benefit and protection of all bondholders
similarly situated by mandamus, accounting, mandatory injunction or any other suit, actions or proceeding �
t law or in equity that is now or may hereafter be authorized under the taws 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 lavas 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
19
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exhausting and without regard to any other remedy conferred by the Revenue Bond Law of 1941 or
F any either lav, of the State of California. No waiver of any default or breach of duty or contract by any
W 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 RevenueFund reimbursement for reasonable casts, expenses, outlays and attorney's fees
and should said suit, action or proceeding be abandoned, or be determined adversely to the bond-
holders theta, 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 City shall not include the
revenues of the enterprise and no contract or other obligation payable from the general fund of the
City shall be payable from the revenues of the enterprise, except as provided herein:.
Section 2 , Severability. If any covenant, agreement or provision, or any portion thereof, con-
tained in this resolution,or the application thereof 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. Effective Date, This 'resolution shall take :effect Capon adoption.
ADOPTED, SIGNED AND APPROVED this ._ _tktday of ...Xtit _C11._..e_, 1907:
xa
ATTEST: v Mayor of the City of Redlands, California
,r
o the Ill it R
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(SEAT:,)
tea.:
20
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STATE OF CALIFORNIA
COUNTY OF SAN I3ERNARDINO �; s
CITY OF REDLANDS
MOSELEY, City Clerk of the City of Redlands, California, DO HEREBY CERTIFY
that the foregoing resolution was duly adopted by the City Council of said City at a_regular said City Council held on the _7. h day f X+tr,0'h., l �, and that "
g lar rneetin of
cote, to wit: �t was adopted by the following
Councilmen Marti ez
AYES; : Hartzell, cummin
NOES: None
ABSENT: None
(SEAL) �,
y � the rl� y -_
y as, California:
STATE OF CALIFORNIA
COUNTY OF SAN BERNAR INO ss
CITY OF R DLANDS r
I, PEGGY A. MOSELEY City Clerk of the City of Redlands, California, DO FEE
the above and foregoing is a full, true and correct REl3Y CERTIFY that
same has not been amended or repealed. �� of Resolution lwt�r. 2
. ,5 ..... and that the
DATED: arch
Y
(SEAL,) `
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CY3ty � r the C �Redian - �
California ``
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