84R-396
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Clift OF ARABBDI
USOL1r.rIOa 110. aea- 3"
RESOLU'rIOR i. TIlE CI~ COUIICIL OF ftB em OF
ARABBIII, CAL .toRBIA, .. DftORIIIRG 'l'BB ISsoua
or .',650,000 .~ D~ BOBDB, 1984 SBRtBs
. OF ftB' CI. AID) _IDlE ftB 'DiI.CIII:j AlII)
. . I'.rIORS OF SUCH JDmS
ADQr.rBD: otmBBR 9, 1984
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Section 1.
Section 2.
Section 3.
Section 4.
Section s.
Section 6.
Section 7.
Section 8.
Section 9.
Section 10.
Section 11.
Section 12.
Section 13.
Section 14.
Section 15.
Section 16.
Section 17.
Section 18.
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TABLE OF CORrBHTS
DEFIN I'1'\IiONS.
. . . . . . . . . .
. . .
. 6
EQUALI~ OF 1984 BONDS AND PARITY
BONDS, HaEDGE OF REVENUES. ...
PURPOSE I OF THE 1984 BONDS.
. . . . .
. . 7
SPECIAL; OBLIGATIONS, NO GENERAL CITY
LIABILItt-Y. ............... 7
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. 9
DESCRIptrION OF 'IEE 1984 BONDS.
. . . .
EXECUTIJ)N AND, 'AU~~TICATION OF THE
1984 B~S. . . . . . . . . . . . . . . . 9
. .
. . 9 '
. .10
. .13
PLACE ~ PAYMENT. . . .
. . . .
. .
. .
. .14
. .14
REGIS~ION AND TRANSFER.
. . . . .
. .15
. .
. .15
REDEMPT!tPN,OF 1984 BONDS.
. . . . . .
. .18
. .19
. .20
. .
. .20
FUNDS Atro ACCOUNTS. . . . . .
. .
~ Section 19. INVESTI$~TS . .21
. . . . . . . . . . . . .
Section 20. WARRANTfl. . . . . . . . . . . . . . . . .21
DISPOSIliION OF OE.. RTAIN AVAILABLE
MONEYS D BOND PROCEEDS ,
CONSTRU ' ION ACCOUNTS. .....
REVENUE! ACCOUNT.
M& 0 ACCPONT.
. . . . . . . . . .
. . . . . . . . . . . .
BOND S!WICE ACCOUNT, SINKING
ACCOUNT'. ..........
. .
RESERVEt FUND.
R&R ACCOUNT.
E&I ACCOONT.
. .
. .
. .
. . .
. . .
. . . . . . . . . . . .
. . . . . .
. . . . . .
SURPLUS;MQNEYS IN THE REVENUE
ACCOUNT~ ..........
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Section 21.
Covenant
Covenant
Covenant
Covenant 4.
Covenant 5.
~.
Covenant
Covenant
Covenant
Covenant
Covenant
Covenant
Covenant
Covenant
Section 22.
Section 23.
Section 24.
Section 25.
Section 26.
Section 27.
Section 28.
Section 29.
Section 30.
Section 31.
Section 32.
COVENANtS. .............
1 . tunctual Payment., . . . . . .
2. ~lscharge Claims. ......
3. C9mmence Acquisition and
tQnstructlon. ......... .22
~perate Enterprise in
_fficient and Economical
.~nner. ............ .22
.gainst Sale, Eminent Domain,
tkisting _nd Future
.greements. .........
thsurance. .........
iecords and Accounts. ....
~llection of Charges. ...
ates and Charges. .....
.~ Priority for Additional
thdebtedness. ........
,~lmits on parity Bonds. ...
l~bitrage. .........
'ater Revenue Anticipation
.~tes. ............ .27
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.fj.ga
. .21
. .21
. .22
. .22
. .24
. .24
. .24
. .25
. .25
. .26
. .27
. .
. .27
."27
TA$E OP COftENTS, Continued
6.
7.
8.
9.
10.
11.
12.
13.
LOST, SfOLEN, DES. TROYED, OR
MUTILAT*b 1984 BONDS. . . .
CANCELL.tION OF 1984 BONDS.
. . .
. . . . . .
. .28
. .31
RESOLUTtON CONSTITUTES CONTRACT.
TEMPO~Y 1984 BONDS. . . . . . . . . . .37
. . .
.37
.38
.39
CONSENT OF 1984 BONDHOLDERS.
1984 BO*O FORM.
. . . .
. . .
. .
. . .
. . .
. .39
. .39
. .
. .40
. . .
. . .
DEFEAS~CE. . . .
FUTURE CONTRACTS.
SEVERABILITY.
. . . .
. .
. .
. . .
. . .
. .
. .
. .
. .
. . .
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SUB STITtJTES.
. . . . . . . . . . . .
EFFECTrtE DATE.
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CITY OP ANAHBIM RBSOLftION NO. 84.- 39~
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RBSOL OTION 0 3', Cln ~.', mtCIL OF TIIB CITY OF ARABBIB,
CALIl'O.a, A, ZIIIG -rQB ISSUANtB OF $6,650,000 ~
REYdlJS'BOBDS,'l .. SERIB$, OF TIlE CIT! AND 'PBO\'1J)IR; !III
TERMS AIm CONDIT NS' OP snCH B(R)S ,', , '- ,
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WBBRBAS, thetCity of ~naheim (the "Cityn) is a municipal
corporation organized E' ' d existing under a charter duly and regularly
adopted pursuant to t " provis,ions of the Constitution of the State
of California (the nC . rtern); and
WHBREAS, Se4tion 1210 of the Charter (nSection 1210.) pro-
vides 'as follows:' -
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"Bonds which' pre paYaPle only out of such revenues as
may be specified h such bpnds may be issued when the City
Council by or din ~e shall have established a procedure for
the issuance of sleh bonds,. Such bonds, payable only out
of revenues, shal not constitute an indebtedness or gen-
eral obligation 0 the City. No such bonds payable out of
revenues shall beiissued without the assent of a majority
of the voters vot~ng upon the proposition for issuing the
same at an electipn at whi~h such proposition shall have
been duly submi tt~ to the qualified electors of the City.
It shall be competent for the City to make contracts
and covenants for the benefit of the holders of any such
bonds payable only from revenues and which shall not con-
stitute a general obligation of the City for the establish-
ment of a fund or funds, for the maintaining of adequate
rates or charges, for restrictions upon further indebted-
ness payable out of the same fund or revenues, for restric-
tions upon transf~r out of such fund, and other appropriate
covenants. Money placed in any such special fund for the
payment of principal and/or interest on any issue of such
bonds or to assure the application thereof to a specific
purpose shall not be expended for any other purpose what-
ever except for t!le purpose for which such special fund was
established and sball be deemed segregated from all other
funds of the City and reserved exclusively for the purpose
for which such s~cial fund was established until the pur-
pose of its e~tabli~hment shall have been fully
accomplished.
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Notwithstand~ng the foregoing, the City may sell and
issue at any time land from time to time revenue bond antic-
ipation notes (inqluding renewal revenue bond anticipation
notes) in anticip~tion of the revenue bonds authorized ~
the voters on Jun~ 2, 1981; provided that the aggregate
principal amount Qf such r.venue bond anticipation notes
and revenue bond. outstanding in accordance with their
terms at any one ~1me shall not exceed $92 million. Such
revenue bond antip~pation notes may be sold, issued and
secured in such ~er and subject to such terms and condi-
tions as the City iCouncil may prescribe ~ ordinance; pro-
vided that such rEfvenue bond anticipation notes shall not.
constitute an ind~btedness or general obligation of the
City of Anaheim a$6 are not to be secured by the taxing
power of said Cit~.
Notwithstand 'Qg the foregoing, the City may also sell
and issue at any ~me and from time to time revenue bond
anticipation note (including renewal revenue bond antici-
pation notes) in ticipation of any electric or water rev-
enue bonds there ~fore or hereafter authorized by the
voters; provided e (i) the aggregate principal amount of
such electric rev~, .,.,ue bonds in anticipation of which such
electric revenue ~nd anticipation notes and the electric
revenue bond anti~pation notes were issued outstanding in
accordance with ~heir terms at anyone time shall not
exceed the princi~l amount of such electric revenue bonds
authorized by the ~oters and (ii) the aggregate principal
amount of such wa~r revenue bond anticipation notes and
the water revenue ~nds in anticipation of which such water
revenue bond anti~pation notes were issued outstanding in
accordance with U.eir terms at anyone time shall not
exceed the princi~l amount of such water revenue bonds
authorized by the voters. Such revenue bond anticipation
notes may be sOld" issued and secured in such manner and
subject to such te~s and conditions as the City Council
may prescribe by o~dinance; provided that such revenue bond
anticipation notesishall not constitute an indebtedness or
general obligation. of the City of Anaheim and are not to be
secured by the tax~ng power of said City.
Notwi thstandiAg the foregoing, the City may also sell
and issue at any tf.'le and from time to time revenue antici-
pation notes (inclpding renewal revenue anticipation notes)
in anticipation of'the receipt of revenues of the City's
water and electric utilities; provided that the aggregate
principal amount of such revenue anticipation notes
outstanding in accprdance with their terms at anyone time
shall not exceed, for each of such utilities, an amount
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equal to 25% of t.e gross revenue earned bY the respective
utility during th~ immediately preceding fiscal year as set
forth in the audited financial statements of such utility
for such year. ~Iuch rev~nue anticipation notes may be
sold, issued, andlsecured in such manner and subject to
such terms' and cOJ1cJitions as the City Council may prescribe
by ordinance; protided that such revenue anticipation notes
shall not constit~te an in~ebtedness or general obligation
of the City of An~heim and are not to be secured by the
taxing power of s~id City.-; and
WHBREAS, orC4.pance No. 2933 of the City Council, as amended
by Ordinance No. 4536 ~~ the Cit,y COuncil, incorporating certain sec-
tions of the Revenue ~il,' d Law of 1941 (Chapter 6, Part l, Division 2,
Title 5 of the Govern~~nt Code of the State of California), estab-
lishes a procedure fo~ the issuance of'water revenue bondS as pro-
vided for in Section ~2l0; and
WHEREAS, pUi.. ant to Section l210, Ordinance No. 2933 (as
originally adopted) an . Resol~tion No. 78R-S33 of the City COuncil; a
special municipal 'ele .~, ion was held in' the City on November 7, 1978,
for the purpose of su tting to the qualified voters of the City. the
following proposition~ '
RShall the C~~y of Anaheim be authorized to finance
the aCqUisition~..",nd construction of additions to and
improvements of. water &system of said city ~ the issu-
ance of revenue b lids, not payable fran property taxes, in
an amount not to ,iceed 14 Million Dollars?R; and
WHBRBAS, sa~d propos~tion (the -l978 Proposition-) was
approved ~ the votes q~ more th~n a majority of the voters voting on
the 1978 Proposition ~t said special municipal election; and
WHBRBAS, of ..id autho~ized amount of $14,000,000, the City
has heretofore issue~. $7,350,000 water revenue bonds. 'designated
-Water Revenue Bonds, '];980 Series.; and
WHEREAS, pu~uant to Section 1210, Ordinance No. 2933 (as
originally adopted) an,'ResolutiDn No. 82R-391 of the City Council, a
special municipal ele~ion was held in the City on NOvember 2, 1982,
for the purpose of sUjtting to the qualified voters of the City the
fOllowing proposition: '
.~n order to :provide a more economical market for the
remaining water rdYenue bonds authorized by a majority of
the voters in 19~B to provide more economical water
service, shall c~ty Counoil Resolution No. 78R-533 be
amended to elimin~e from such Resolution the maximum rate
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of interest (eigh~ percent) which may be paid on such bonds
and to provide iqstead in such Resolution that the City
Council shall, atjor prior to the time of sale of any such
bonds, establish ~f resolution a maximum rate of interest
which may be paid ion the bonds then being sold?R, and
WHBREAS, sa~d propoSition (the R1982 PropositionR) was
approved by the votes .t more than a majority of the voters voting on
the 1982 Proposition 4t said special municipal election; and
WHBREAS, thilS City Council deems it necessary to issue for
the. purposes hereinaf~er set f~rth, all of the remaining $6,650,000
principal amount of tW, ".ater rev" enue bonds authorized by the '19"18
Proposition, to be des gnated -Water Revenue Bonds, 1984 SeriesR; and
the Water Revenue Bon ., 1984 Series, shall be on a' parity with the
city's Water Revenueeries 1971 Bonds, Water Revenue Bonds, 1980
Series and any other ~.rity water revenue bonds which may be issued
in the future by the City;
ROlf, TIIBRBPO", the C.. ty Council of the City of ADabeia,
,California, DOES H~ RBSOLVIB, DBTBRIIIRE AND ORDER as follows:
SBCrIOR 1. ~finitiC$8. As used in this Resolution,
unless the context ot~.rwise requires:
(a) .Authori~..d Investments. means any obligations in
which the City ma~lawfully invest its funds.
(b) "1984 Bo~4sR means the $6,650,000 aggregate prin-
cipal amount of B9,~dS authqrized and issued hereunder ,pur-
suant to the 1978 l'roposit1on.
(c) "City. m~ans the City of Anaheim, California.
(d) "City Co~ncil. means the City Council of the
City.
(e) .Enterpr~.e" means the entire waterworks system
of the ,City, inc14ing all additions to, and improvements
and extensions 0 " said system later constructed or
acquired.
Cf) "Fiscal ~ent" means the fiscal agent under the
1971 Bond Resolut~n and the 1980 Bond Resolution.
(g) "Fiscal ~ear" means tbe year period beginning on
July 1 and ending iOn the next following June 30.
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(h) "Maximum, Annual Debt Service. as computed from
time to time unde~ Section 15 and Covenant II of Section 20
hereof means the11argest of the sums obtained for the
Fiscal Year of co~putation or any Fiscal Year thereafter ~
totaling the follq~ing for each such Fiscal Year:
(1) The prinqipal amount of all serial 1984 Bonds and
serial parit1.Bonds p.,yable in such Fisc~ Year and
outstanding 4t the dat.e of such computat1on;
(2) The min~4M sinkin, account payments, if any, pay-
able'in such IPiscal Year with respect to the term 1984
Bonds and anf term Parity Bonds outstanding at the
date of such~~omputation; and
(3) The inte~st which would be due during such Fiscal
Year on the m. gregate principal amount of the 1984
Bonds and pa .t.ty BondS, which would be outstanding'in
such Fiscal.ar if the serial 1984 Bonds and serial
Pari ty Bonds iC)utstan'ding on the date of such canputa-
tion are ret~~ed as they mature and if the term 1984
Bonds and any term Parity Bonds outstanding onth.e
date of suc~ computation, if any, are retired as
scheduled in this Resolution and in the resolution
providing fo~ the issuance of such term Parity Bonds.
(i) "Net Rev~~ues. of the Enterprise means the amount
of the Revenues l~.s the Operating Expenses.
(j) .197l Bpnd ResOlution. means Resolution
No. 7lR-233' of t.e City Council, adopted June 1, 1971,
authorizing' the i~$uance of the 1971 Bonds. '- ','
(k) Rl971 Boq4sR means the $2,000,000 water revenue
bonds designated 'fater Revenue Series 1971 Bonds" referred
to in the recital~hereof.
(l) R1980 B~nd ResolutionR means Resolution
No. 80R-75 of the I~ity Cou~cil, adopted February 26, 1980,
authorizing the i~.uance of the 1980 Bonds. '
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(m) "1980 BO~4s" means the $7,350,000 water revenue
bonds desi9nate~nWater Revenue Bonds, 1990 SeriesR
referred to in th~ recitals hereof.
(n) "Operati~g Expenses. of the Enterprise means the
reasonable and ne1.ssary current expenses of maintaining,
repairing and oprating the Enterprise, including City
administrative epenses directly attributable to water
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system function~, but excluding depreciation and
amortization, andj~ebt service requirements of the City's
general obligation water bends, all computed in accordance
with sound accoun~~ng principles and consistent with exist-
ing accounting pr~4tices of the City.
(0) "Ordinan~e No. 2933" means ,Ordinance No. 2933 of
the City Council, I.dopted Qn June 1, 1971, as amended by
Ordinance No. 453~, adopted on September 4, 1984.
(p) "Par i ty ~Ionds" m.ans the 1971 Bonds, the 1980
Bonds and any oth~~ revenue bonds, revenue notes or othe~
similar evidences ~f indebtedness hereafter issued for the
acquisition, cons~r;uction .nd financing of additions to,
and improvements qf the En~erprise, ~able out of the Net
Revenues and WhiCh~, ., as provided in this Resolution, rank'on
a parity with the tLi984 Bonds.
(q) "parity ,pnd ResolutionR means any resolution
authorizing the i~uance of parity Bonds.
(r) "RegistraF''' means Securities Services Division in
Los Angeles or Sanl iFrancisoo of Bank of America National
Trust and Savings l'issociation.
(s) "ResolutiPnIl means this Resolution No. 84~39' of
the Ci ty Council. .
(t) .Revenue~'! means all rates, fees and charges for
providing water Etrvice t,o persons and real property
(including connectpn fees) and all other fees, rents and
charges and othe~income derived by the City, from the
ownership, operatibn, use or services of the Enterprise.
(u) RTreasur_r" means the Treasurer of the City.
SECTION 2. ~ity o. 1984 BoDcJs and Parity Bonds; PJledge
of Revenues. Pursuan~to Section l210 and Section l2l0.l of the
City Charter, ordinanc~.., " No. 2933 and this Resolution, the 1984 Bonds
and all parity Bonds shf1~Ll be equally secured by a pledge, charge and
lien upon the Net Reve~pes of the Enterprise without priority for
number, date of bonds, date of sale, date of execution, or date of
delivery, and the paym.nt of the interest on and principal of the
1984 Bonds and all Parity Bonds and any premiums upon the redemption
of any thereof shall be' and are secured by an exclusive pledge of and
charge and lien upon t.e Net Revenues of the Enterprise, and all of
the Net Revenues of the Enterprise are hereby pledged, charged and
assigned for the securi~y of the 1984 Bonds and all parity Bonds, and
such Net Revenues and .ny interest earned on the Net Revenues shall
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constitute a trust fund for the security and paYment of the interest
on and principal of, ~e 1984 Bonds and all parity Bonds, and so long
as any of the 1984 BPinds, Patity Bonds or interest thereon are
unpai d, the Net ReventtEts and interest thereon shall not be used for'
any other purpose, ex~~pt as permitted" by this Resolution or any
parity Bond Resolution,] and shall be held in trust for the benefit of
the bondowners and sh~1l be applied pursuant to this Resolution, or
to this Resolution as imodified pursuant to provisions herein, and to
any Parity Bond Resol~tion.
Nothing in t~jJs Resolu~ion shall preclude: (a) the redemp-
tion prior to maturit~of any l~84 Bonds subject to call and redemp-
tion or payment of saijd Bonds at maturity from proceeds of refunding
bonds issued under sec~$on l2l0.l of the City Charter 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 limitations contained
herein, of Parity Bon~; or (c) the issuance of additional indebted-
ness payable solely frq. surplus moneys in the Revenue Account pursu-
ant to Section 18 her~f.
SBcrIOI1 3. ~rpose' of the 1984 Bonds. Under and pursu-
ant to Section l2l0 of I~e City Charter and Ordinance No. 2933 and in
accordance with the aUt" :,orizatiO$s stated in the recit~s hereof, the
1984 Bonds shall be is, .ued for the purpose of financ1ng the cost of
the acquisition and co structio1'l of additions to and improvements of
the Enterprise.
SBC'fIOR 4. iial (l)J.igationsJ Ro General City Liability.
The 1984 Bonds Shall'.', special obligations of the City and shall be
payable as to the prin , 'pal thertof and interest thereon and any pre-
mium upon the redem~ion of any thereof solely from the Net
Revenues. The general.. d of the City is not liable for the payment
of the 1984 Bonds or ~~eir interest, nor is the credit or taxing
power of the City pledged for the payment of the 1984 Bonds or their
interest. The holders' of the 1984 Bonds shall not be entitled to
compel the exercise of ~e taxing power ~ the City or the forfeiture
of any of its property. The principal of and interest on the 1984
Bonds and any premium upon the redemption of any thereof are not a
debt of the City or 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 Net Revenues and the funds and
accounts established o~ maintained by this Resolution.
SBC'lIOR 5. ~scription of the 1984 Bonds. The I 9 8 4
Bonds sha~l all be in the denomination of $5,000 or any integral
multiple of $5,000, an~numbered consecutively from ~l upwards. The
1984 Bonds shall be de.ignated .WATER REVENUE BONDS, 1984 SERIESR.
The 1984 Bonds shall b, payable on April 1 in each year of maturity
in the amounts for each of the several years, shall bear interest
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payable semi-annually on the first days of April and October of each
year, commencing Apri~ l, 1985, as follows:
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Year
of Maturity
118'
1'187
",S
1'1.'
,,90
11"
11' J.
1f13
''11'1
1fI~5
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'f'7
Iff 8
If"
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b'1
uoz
U.$
"UtI'!
u>> so
ZMJ"
~7
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pr ~cJ,pa1 :a..-nunt
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''''c,o
/61t!11,eHIfO
I't:)~_o
,~~ ~o~
I~,_~D
I "'r;~,,-
, $61~_.
/,.8,0..
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2.( $, .-
1.,3 S', '-
~s; .'D
" If"~ ...
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J 7", IUIO
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fs--, ,..
"'SJ (U'O
~"s, -~
1.05',_0
.6G', tloO
Interest
Rate
7. '10 ~
7.75
B.DO
6. '2.'>
8.S'D
8..,$
'..0
'I. )oS
'.511
'1.610
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The City Council here~,. deter.mi~es that the maximum rate of interest
which may be paid on .. e 1984 Bbnds equals the highest interest rate
set forth above. Eac 11984 Bona shall bear interest from the inter-
est payment date nex. precedihg the date of its authentication,
unless such 1984 Bond I~uthenticated on an interest payment date, in
which event from such ifnterest payment date or unless such 1984 Bond
is authenticated as of fa day during the period from the day after the
record date immediate~ preced1ng an interest payment date to,such
interest payment date, 'inclusive, in which event such 1984 Bond shall
bear interest from su~h interest payment date1 provided, however,
that if the date of auttnentication of any 1984 Bond shall be prior to
March 15, 1985, such ~984 Bond shall bear interest from October 1,
1984: provided, furth~r, that if, as shown by the records of the
Registrar, interest on the 1984 Bonds shall be in default, 1984 Bonds
issued in exchange fbr 1984 Bonds surrendered for transfer or
exchange shall bear i~terest from the interest payment date to which
interest has been paid ,in full on the 1984 Bonds surrendered or if no
interest has been pai~, October l, 1984.
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The 1984 Bonds maturing in the years
/98fD 1/-0 2..oDlj J ~~S;tNLJ . are
sometimes referred tOiherein as .serial 1984 Bonds" and the 1984
Bonds maturing in --::j , are sometimes referred to herein as'
-term 1984 Bonds. - '-Lt.,,&. ~4- '^-4D -k.v-.-.- ICle"l 8.....ds.
SBCTIOR 6. ,-lace of PaYEDt. If at the maturity date of
any 1984 Bond ot if t~. same is redeemable and has been duly called
for redemption, funds !.re avai!able for the payment or redemption
thereof in full accor44nce wi tla the terms of this Resolution, said
1984 Bonds shall then tt': ase to bear interest. The 1984 Bonds and the '
interest thereon sha, be payable in lawful money of the United
states of America. T~e princij>al of the 1984 Bonds and any premium
upon the redemption ~hereof shall be payable at the Securities
Services Division of Bank of America National Trust and Savings
Association in Los An~eles or San Francisco, California, or 'at any,
other paying agent of the City' in New York, New York. Interest on
the 1984 Bonds shall ije payable by check or draft mailed to the reg-
istered owner on th+ registration records maintained by the
Registrar, determined 'as of ~e close of business on the 15th day of
the calendar month i~ediately preceding an interest payment date
(including the date on which the principal of a 1984 Bond is,to be
paid) . '
SBCrIOR 7. ~ecution and Authentication of the 1984 Bonds.
The Mayor of the City I~,nd the ~reasurer are hereby auth~rized and
directed to sign the l~84 Bonds ~ their printed, lithographed or
engraved facsimile si~~atures, and the City Clerk of the City is
hereby authorized and ~irected to countersign the 1984 Bonds ~ his
or her facsimile sign~ure and to affix thereto or otherwise repro-
duce thereon the cor~iate seal of the City.
The 1984 Bon1 shall bear thereon a certificate of authen-
tication, , in the form ,t forth in Section 25 of the Resolution, exe-
cuted manually by the .egistrar. Only such 1984 Bonds as shall bear
thereon such certifica~e of authentication shall be entitled to any
right or benefit under ~e Resol~tion and no 1984 Bond shall be valid
or obligatory for any purpose until such certificate of authentica-
tion shall have been dply executed by the Registrar. Such certifi-
cate of the Registrar ppon any 1984 Bond executed on behalf of the
City shall be conclusiv(e evidence that the 1984 Bond so authenticated
has been duly authentipated and delivered under the Resolution and
that the owner thereof is entitled to the benefits of the
Resol ution.
, .
SE~IOR 8. *gistratton and Transfer. The 1984 Bonds
shall be issued in fUt!llLj' '. registered form. The 1984 Bonds shall be
transferable only upon. e books of the City, which shall be kept for
such purposes at theurities Services Division in San Francisco of
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the Registrar, by the registered owner thereof in person or ~ his
attorney duly authori~ed in writing, upon surrender thereof together
with a written instr~ent of transfer satisfactoEy to the Registrar
duly executed by thel registe~ed owner or his duly author ized
attorney. Upon the t~~nsfer of any such registered 1984 Bond, the
Registrar shall issue iin the name of the transferee a new registered
Bond or 1984 Bonds of 'the same aggregate principal amount and matu-
rity as the surrender~d 1984 Bond. The Registrar may, with the con-
cur rence of the City, !qesignate an addi tional office where transfer
of registered 1984 BondS may be effected ~ the Registrar provided in
this Section.
The City an~ each paying agent may deem and treat the
person in whose name ~' 1984 Bo~d shall be registered upon the books
of the City as the abs :,lute owner of such 1984 Bond, whether such
1984 Bond shall be ov , ,due or not, for the purpose of receiving pay-
ment of, or on account !of, the principal or redemption price, if any,
of and interest on suc~ 1984 Bona and for all other purposes, and all
such payments so made ~o any such registered owner or upon his order
shall be valid and eff~ctual to satisfy and discharge the liability
.upon such 1984 Bond tojthe extent of the sum or sums so paid, and
neither the City nor ~ paying agent shall be affected py any notice
to the contrary. The Pity agrees to indemnify and save each paying
agent harmless from ~nd against any and all loss, cost, charge,
expense, judgment or liability incurred ~ it, acting in good faith
and without negligence under the Resolution, in so treating such reg-
istered owner.
In all cases in which the privilege of exchanging 1984
Bonds or transferrin, registered 1984 Bonds is exerc~sed, the
Registrar shall authen~icate and deliver 1984 Bonds in accordance
wi th the provisions of l~e Resoltation. All 1984 Bonds surrendered in
any such exchanges or ~~ansfers shall forthwith be delivered to the
Registrar and cancelle~ by the Registrar and returned to the City.
For every such exchang~ or transfer of 1984 Bonds, whether temporary
or definitive, the City' or the Registrar may make a charge suffi9ient
to reimburse it for any tax, fee or other governmental charge
required to be paid ~ith respect to such exchange or transfer.
Neither th~ City nor tpe Registrar shall be required to transfer or
exchange any 1984 Bond~ for a period of 15 days next preceding any
selection of 1984 Bond$ to be redeemed or thereafter until after the
first publication or m~iling of any notice of redemption or any 1984
Bonds called for redemption.
SECTION 9. Rtadeaptlon of 1984 Bonds. The 1984 Bonds
maturing on or after Ap~~l l, 1995 maybe redeemed prior to maturity,
at the option of the C~ty, on and after April 1, 1994, in whole at
any time or in part on any interest payment date, at the following
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redemption priCes, exPt~ssed as a percentage of the principal amount,
together with accrued 'interest to the date of redemption:
Redemptioni ~eriod
(Dates In~usi"e)
Red~tion Price
"........
April l, 199,4 and Mar~',h 3l, 199,,5 103'
April l, 1995 and Marij 31, 1996 102'
April 1, 1996 and Mar ~ 31, 1997 101
April l, 1997 and thett_after" , , lOO
The term 198~'Bonds a~e also subject to mandatory sinking
fund redemption prior i1;o matur~ty at the principal amount thereof
plus accrued intere~t to th~ redemption date as provided in
Section 14 hereof. T.. term 1984 Bonds to be so redeemed shall be
selected by lot wi th n the m'a'turi ty to which such redemption
relates.
..-...
Allor any o~the 1984 Bonds subject to redemption at the
option' of the City may! ibe caIi'eC! for redemption at anyone time. If
less than'all of the 1~84 Bonds are redeemed at the option of the
City at anyone time, ~u,' ,uch 1984 Bonds shall be. redeemed in ~nverse
order of maturity and ~ lot wtthin each matur1ty.
The interestj"ayment 4ate on which 1984 Bonds which are
called are to be prese~ted for redemption is herein sometimes called
the R redemption date..:
(a) Notice OMi~Pt~n. Notice of the intended redemp-
tion shall be pub1ishe , jonce in . newspaper of general circulation in
the City of Anaheim, C ifornia, and once in a daily newspaper or
financial journal publ' ished in Cbr near the Borough of Manhattan, New
York, said pUblicationi' to be at least 30 days but not more than '60
days prior to the red , tion date. The 'not1ce of redemption shall
Ca) state the redempti date; (b) state the redemption price; (c)
state the numbers an4date of maturity of the 1984 Bonds to 'be
redeemed; provided, ho~ever, that whenever any call includes all of
the outstanding 1984 Bpnds subject to redemption, the numbers of the
1984 Bonds need not be: stated; Cd) require that such 1984 Bonds be
surrendered at the Sec~tities Services Division of Bank of America
National Trust and S_vings Association in Los Angeles or San
Francisco, California, or at the option of the holder, at any other
paying agent of the Ci~y in New York, New York; and Ce) give notice
that further interest on such 1984 Bonds will not accrue after the
designated- redemption ~ate. The Registrar shall, on or before the
date of publication of said notice of redemption, mail by first-
class, postage prepa~d a similar notice postage prepaid to the
respective registered Owners thereof at the addresses appearing on
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the registration reco~ds maintained ~ the Registrar, as of the date
of such notice. .
The actual rqeipt by the holder of any 1984 Bond of notice
of such redemption sh~l not be a condition precedent to redemption,
and failure to receiv . 'such not;.ice shall not affect the validity of
the proceedings for re .ption of such 1984 Bonds or the cessation of
interest on the redeption date. The mailed notice or notices
required by this sect '..on shall be given by the City.
(b) Red~ti~ Pund. Prior to the redemption date there
shall be established ~redempt~on fund to be described as the ,Water
Revenue Bonds Redempt!.,O" ."."n Fund (b" erein referred to as the RRedemption
FundR), and prior to .'e redemp~ion date there shall be set aside in
the Redemption Fund m 'eys available for the purpose and sufficient
to redeem, at the pri ' s payable as in this Resolution provided, the
1984 Bonds designated,1n such notice of redemption. Said moneys
shall be set aside in ~e Redemption Fund solely for that purpose and
shall be applied on or'after tbe redemption date to payment of the
1984 Bonds to be rede!..,.,ed upon presentation and surrender of such
1984 Bonds. Any accr .d interest due on or prior to the redemption
date shall be paid fro, . the Bond Service Account. Any interest due
on or prior to the red~ption date upon 1984 Bonds shall be paid from
the Bond Service Acco~. If, after all of the 1984 Bonds have been
redeemed and cancell,d or paid and cancelled, there are moneys
remaining in the Redem~ion Fund, said moneys shall be transferred to
the Revenue Account; p~iovided, however, that if said moneys are part
of the proceeds of refUnding bonds said moneys shall be transferred
to the fund or accounticreated for the payment of principal of and
interest on such refun~ing bonds. The Redemption Fund m~y also be
used to provide for the redemption of Parity Bonds.
(c) Bffect of, the Notice of Redeaption. When notice of
redemption has been g~ven, and when the amount necessary for the
redemption of the 1984i Bonds called for redemption is set aside for
that purpose in the Re~mption Fund, the 1984 Bonds designate~ for
redemption shall becom~ due and payable on the redemption date, and
upon presentation and sPrrender of said 1984 Bonds at the ~ace spec-
ified in the notice of redemption, such 1984 Bonds shall be redeemed
and paid at said redemption price out of the Redemption Fund, and no
interest will accrue otl such 1984 Bonds called for redemption after
the redemption date speFified in such notice, and the holders of said
1984 Bonds so called fbr redemption after such redemption date shall
look for the payment of such 1984 Bonds only to said Redemption
Fund. All 1984 Bonds redeemed shall be cancelled forthwith and shall
not be reissued.
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All unpaid i~terest payable at or prior to the redemption
date shall continue t01be payable to the respective registered owners
of such 1984 Bonds, o~ their order, but without interest thereon.
SE~IOR 10. . 'unda ana Accounts. A. The Treasurer shall
continue to maintain ~~,e follo~ing funds and accounts, heretofore
created pursuant to S~etion 12lD of the City Charter, under the 1971
Bond Resolution and r~4esignat.d under the 1980 Bond Resolution;-so
long as any of the 19~4 Bonds remain outstanding:
(l) Water En~erprise Fund (the RWater Enterprise
FundR)i' and the fq110wing accounts within said fund:
(a) Wat~r System Revenue Account (the RRevenue
Account<<); a~d ' -
(b) Wat~r Syste~ Maintenance and Operating
Account' (the !~M&O AccountR); and
(c) watetz, System Renewal and Replacement Account
{the .R&R'Ac~unt.); and
I
(d) Wat.~ Syste~ Extension and Improvement
Account' (the !-iE& I Account R) .
B. The Fiscap., Agent spall continue to maintain the follow-
ing funds so long as ~ of the 1971 Bonds and the 1980 Bonds remain
outstanding:. ,
(1) Water Sys~em Revenue Bond and Interest Fund (the
RBond Service Fundrl);, and ' -
(2) Water Sy'tem Revenue Bond Reserve Fund (the
wReserve FundR). .
From and afte~ the retirement of all of the 1971 Bonds and
the 1980 Bonds (or the\date on which provision for such retirement
has been made so that ~.e 1971 B$nds are no longer outstanding within
the meaning of the 197 Bond Resolution and the 1980 Bonds are no
longer outstanding wit in the meaning of the 1980 Bond Resolution)
the Reserve Fund shall: be maintained ~ the Treasurer so long as any
of the 1984 Bonds rema~n outstanding.
c. The Fisca~ Agent shall continue to maintain the Water
System Revenue Bond Sin~;i.ng Fund (the "l980 Sinking Fund") so long as
any of the 1980 Bonds temain outstanding.
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D. The foll~ing additional accounts are hereby created in
the Water Enterprise F~d and shall be maintained by the Treasurer so
long as any of the 19* Bonds J:'emain outstanding:
(l) Water Sy~~em Revenue Bond and Interest Account
(the -Bond Servic~ 'AccountR) 1
(2) Water Sy.tem Revenue Bond Sinking Account (the
- Sinking Account -) f;, and
(3) Water Sy~~em Revenue Bond, 1984 Construction
Account (the nl984i iConstrudtion Account").
E. Additiona~: account$ in the Water Enterprise Fund may be
created by subsequent ~Iesolutions of the City Council. '
SECTIOR 11. ~i8po8it~on of Certain Available Moueysand
Bond Proceeds; Con8tr~tion Accounts.
A.The proce~~ of the 1984 Bonds shall be transferred and
,deposited as follows:
(1) An amountl$ufficient to cause the amount in the
Reserve Fund to eq,,"~, 1 the M~ximum Annual Debt Service for
the 1971 Bonds, th" 1980 Bonds and the 1984 Bonds shall be
transferred to t~ Fiscal Agent and deposited in the
Reserve Fund.
(2) The rema~~,der shall be deposited in the 1984
Construction Accou*t.
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B. The City t~y dePOs:i.t moneys, received from any source,
in the 1984 Constructio j Account. The moneys set aside and placed in
the 1984 Construction ,~count snall be expended solely for the pur-
poses for which the 194 Bonds were issued.
C. If any s~ remains in the 1984 Construction Account
after the full accampli.bment (as certified by the General Manager of
the Public. utilities ~artment of the City) of the purposes for
which the 1984 Bonds w~re issued, it shall be transferred to the
Redemption Fund to be ,eed to pay, by redemption or purchase at a
purchase price (includi.g broker~ge and other fees) not exceeding par
plus accrued interest, 1984 BondS, or parity Bonds issued for one or
more of the same purpbses for which the 1984 Bonds were issued.
SECTIOR 12. .evenue Account. The Revenues of the
Enterprise shall be deposited with the City Treasurer to the credit
of the Revenue Accoun~. On or before the twentieth day of each
calendar month, there sJlaall be withdrawn from the Revenue Account the
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entire amount on depo~it in the Revenue Account and there shall be
allocated and deposit~a such amount in the indicated priority to the
fOllowing accounts an4 funds.
SB~IOR 13. ! ~'O Acc~t. Fir s t, so long as any of the
1984 Bonds are outst~'.l~. ding, ~'" ere shall be allocated to the M&O
Account amounts suffi ,~ent for the payment of the Operating Expenses'
of the Enterprise as aid expenses become due and pay~e. Amounts
in the M&O Account sh1l be used solely to pay Operating Expenses.
SE~IOR 14. ~nd Se"ice Account, Sinking Accotmt.
Second, so long "as" any i<>f the 1984 Bonds are outstanding, in ad4J,tion
to but on a parity wi#h the tr~nsfers to the Bond Service Fund and
the 1980 Sinking Fun~ requi red by Section 15 of the 1971 Bond
Resolution and Section l6 of the 1980' Bond Resolution:
A. There sh~l be allocated to the Bond Service Account
the following' amounts:!
(l)one-sixtbjof the i.nterest which will become due
and payable on the! ioutstanQing 1984 Bonds and Parity Bonds
(other than the 19t1!1 Bonds and the 1980 Bonds) within the
next ensuing six 1., "..nths, e~cept that, with respect to any
interest payment ,te, the monthly sum allocated shall be
the interest whi . will become due and payable on such
interest payment ,_te less any portion of such interest
which has been pro~,ided for (a) ~ transfers required with
respect to the 198.' Bonds by any Parity Bond Resolution,
and (b) in the case of any other Parity Bonds, aqy trans-
fers required wi~h respect to such Parity Bonds by. any
other parity Bond Resolution; and
(2) one-twelt,th of the principal amount which will
mature and be paya~e on the outstanding serial 1984 Bonds
and serial Parity onds (other than the 1971 Bonds and the
1980 Bonds) within the next ensuing twelve months.
B. There sha~l be allocated to the Sinking Account, each
month during the twelv,~month period preceding the dates set forth
below, in addition toiany amounts which may be specified in any
parity Bond Resolution! with respect to any term Parity Bonds to be
issued by the City in the future, one-twelfth of the amount set forth
below in order to pay tbe principal of the respective amounts of 1984
term Bonds which shall be called and redeemed on the dates set forth
below, unless such amounts are used to purchase 1984 term Bonds as
provided in this Secti<>n:
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Sinking Accountt
Redellllptlon oat.
(~ril 1) .
~,
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principal &mnunt
1984 Ter~ Bonds,M*turing A
Sinking ACcoun~,
Red8llptlon Da~
(.-prill) I principal &~nftt:.
"'.........,
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Sinking Account
Redemption Date
(.i1 1)
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1984 Term ~onds
Sinkin9 Account .
R.ec:1ellption Date f
(~ri1 II
Pr incipa1 &w.n1V1t:
1,
Pr iDciW &w.nunt:
c., In any ev~.t, such sums shall be allocated from the
Revenue Account to the ~ond Ser~ice Account and the Sinking Account
so that the full amOUi'tf required to pay, as it becomes due, the
interest on said 1984 ", ., ds and .,parity Bonds (other than the 1971
Bonds and the 1980 Bon ,I) and aqy installment of principal on said
1984 Bonds and Parity ~nds (ot~er than the 1971 Bonds and, with
respect to sinking fund! payments, the 1980 Bonds) shall be set aside
in the Bond Service Acc~unt and the' Sinking Account at least five
days prior to the date the installment of interest or principal
becomes due.
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If for any ..ason in any month the~e are insufficient
amounts in Revenue Acqount to make all required deposits in the Bond
Service Account, the B,~d Service Fund, the 1980 Sinking Fund and the
Sinking Account, then i the amounts available shall be allocated pro'
rata towards the requli,red deposits and- the deficiencies shall be
added to and become a 'part of the allocations required for the fol-
lowing calendar month.
Any moneys r,guired to be set aside in the Bond Service
Account or the Sinking Account may be prepaid in whole or in 'part ~
being earlier set asi4. therein" and in that event the monthly allo-
cation which has bee~ so prepaid need not be made at the time
appointed therefor. !~ach monthly transfer may be reduced by an
amount equal to any iI1vestment income received during its preceding
calendar month on mon~ys in the Bond Service Account or the Sinking
Account.
The 1984 Bonqs shall recite that they are payable from the
Water Enterprise Fund, I ~ut not,ti'thstanding such recital shall be paid
from the Bond Service i~ccoun~, or from the Redemption Fund estab-
lished in accordance with Section 9(b) of this Resolution.
Moneys in th~ Sinking Account shall be used to redeem ~
term 1984 Bonds and tt:t.m Parity bonds (other than the 1971 Bonds and
the 1980 Bonds) at th~ times and in the amounts as provided in this
Section and any Parity$ond Resoaution. Any such call and redemption
of term 1984 Bonds Sh~l be made in accordance with Section 9 hereof,
and for that purpose m~eys in the Sinking Account may be transferred
to the Redemption Fun ,.for the payment of principal upon redemption
of any term 1984 Bon~s called for redemption prior to maturity.
Moneys in th~ Sinking Account may also be used, prior to
the date when any term 1984 Bonds or term Parity bonds (other than
1971 Bonds or 1980 BO~,',S) are selected by lot, in lieu of (or par-
tially in lieu of) man4_tory call and redemption on the next succeed-
ing sinking fund rede~tion date, for the purchase of any such term
1984 Bonds or term parity bonds (other than 1971 Bonds or 1980 Bonds)
at a purchase price (~ncluding brokerage and other fees) not exceed-
ing par plus accrued ~nterest.
If after all ,of the 1984 Bonds and any parity Bonds have
been redeemed and can~elled or paid and cancelled (or provision is
made therefor) there are moneys remaining in the Bond Service
Account, the Sinking ~acount or the Reserve Fund, said moneys may be
transferred to the Re~enue Account.
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SBCrIOR 15. .eserve fUnd. Third, so long as any of the
1984 Bonds are outstanding, there shall be transferred to the Reserve
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Fund an amount suffic~.nt to provide a balance in the Reserve Fund
equal to Maximum Annu~l Debt Service.
Moneys in th~ Reserve Fund shall be used solely for the
purpose of paying the f-=incipal of and interest on the 1984 Bonds and
a~y Parity Bonds, in he event that moneys in the Bond Service Fund
(1n the case of the 1 11 Bonds) or the Bond Service Fund or the 1980 .
Sinking Fund (in the4se of tae 1980 Bonds), or the Bond Service
Account or the Sinking i4ccount (in the' case of the 1984 Bonds 'and any
other parity Bonds) ar,'insufficient therefor. For'that purpose, the
Fiscal Agent or the T~easurer, as appropriate; shall withdraw and
transfer sufficient mqneys from the Reserve Fund to the Bond S~rvice
Fund, the BondServic~ Account, the 1980 Sinking Fund or the Sinking
Account, as the case, may be. If at - any time 'the moneys 'in the
Reserve Fund are insu~licient to make all such required transfers,
the available moneys ~n the Reserve Fund shall be distributed pro
rata towards the requ~red deposits. ' Whenever moneys are withdrawn
from the Reserve Fund 14n equal amount of moneys shall be placed in
the Reserve Fund by t~ansfers from the first available moneys in the
Revenue Account.
Prior to thetnitial transfer from the Revenue Account pur-
suant to Section l2 hi,eof in each month, moneys in the Reserve Fund
in excess of Maximum ,',nual Debt Service may be withdrawn from the
Reserve Fund and tran ' erred to the Revenue Account.
- If on the fi~~t day of a Fiscal Year in which the Maximmn
Annual Debt Service c " ',culated "eXClUding such Fiscal Year is less
than the Maximmn Annu ,'Debt Service calculated including such Fiscal
Year (in both cases at ,r giving effect to any proposed red~ption or
refunding of any 1984 nds or Parity Bonds during such Fiscal Year),
then in each month du~~ng such Fiscal Year, prior to the transfer
from the Revenue Accoqnt pursuant to Section 12 in each month, there
may be transferred frqm the Reserve Fund to the Revenue Account an
amount equal to one-t~lfth of the difference between the two calcu-
lations of Maximum An~Ual Debt Service. For purposes of calcul~ting
amounts required to be in the Reserve Fund during such Fiscal Year,
the amounts so transf~rred shall be deemed to be on deposit in the
Reserve Fund. Such ~unts shall be used only for the purposes set
forth in Section 3 he~eof or to pay the principal of 1984 Bonds or
parity Bonds at matur~ty, ~ redemption or ~ purchase at a purchase
price (including brok~rage and other fees) not exceeding par plus
accrued interest.
SECTION 16. It&R Account. Fourth, so long as any of the
1984 Bonds are outst_nding, there'shall be allocated to the R&R
Account an amount eqpal to 2' of the Revenues received in the
preceding calendar ~~nth until a balance is established, or
reestablished, therei~ equal to 2% of the depreciated book value of
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the land, general pl~nt and equipment which" constitute tbenet
utility plant of the ~terpriseor such other balance as the consult-
ing engineer may reco~end. The moneys contained in the R&R Account
shall be used for traIll$fer to the Bond Service Account, to the Bond'
Service Fund, to the ~980 Sinking Fund or to the Sinking Account, as '
the case may be, to p~.vent default in payment of the principal and
interest on the 1984 aonds or any Parity Bonds, or for extraordinary
maintenance and repair., renewals and replacements to the Enterprise,
but not for additions :to and extensions of the Enterprise.
If at any ti~e the balance in the R&R Account exceeds the
minimum balance herei~ identified, said excess may be transferred to
the Revenue Account.
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SBCl'IOll17. *&1 AccolIIDt. Fifth, so long as the 1984
Bonds are' outstanding'jthere shall be set aside out of the Revenue
Account into the E&I ~qcount sUch amounts as shall be deemed desir-
able by the city Coun~~l or appcopriate city staff ~ appointment of
the City Council. The !Jt\Oneys contained in said Account shall be used
for transfer to the Bq~d Sery'ice Account, to the Bond Service Fund,
to the 1980 Sinking F~d or to the Sinking Account, as the case may
be, to prevent defaul~ in payment of principal and interest on the
1984 Bonds or any Parilty Bonds, or for extension and improvement of
the Enterprise.
SBCrIOR 18. !4urplus Joneys in the Revenue Account. All
moneys remaining in t~ Revenue Account after all transfers required
hereunder have been m4~e, shall be applied to the payment of the
principal of and inte~st on the City's Water Revenue Anticipation
Notes issued pursuan~ to Section l2l0 of the City Charter and
Ordinance No. 4415 and iOrdinance No. 4530 of the City Council, to the
extent required by the :1;esolution (s) pursuant to which such Notes are
issued, and thereafter!, to the extent available, may be (1) used for
the redemption of any ~984 Bonds or parity Bonds which are subject to
call and redemption p~ior to maturity or for the purchase from to
time in the open marke~ of any outstanding 1984 Bonds or Parity Bonds
whether or not subject to call and redemption (irrespective of the
maturity or number of such 1984 Bonds or parity Bonds) at prices and
in such manner, either at public or private sale, or otherwise, as
the Treasurer in his oIr her discretion may determine, but such pur-
chase price (including brokerage and other charges, but excluding
accrued interest) sh~ll not exceed the principal amount or the
redemption price of t~ callable 1984 Bonds or parity Bonds on the
next redemption date, whichever is less; or (2) used for any lawful
purpose of. the City, i~cluding but not limited to the security and
payment of other ind~btedness incurred in connection with the
Enterprise.
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SECTION 19. Investmeats. Obligations purchased as
investments of money~in any of the funds and accounts in which
investments are autho~~ed shall be deemed at all times to be a part
of such funds and acco!qnts and any income realized from such invest-
ments shall be credit~ to such funds and accounts and any losses
resul ting from such injvlestments shall be charged to such funds and
accounts. The Fiscal i1igent or the Treasurer, as the case may be, '.
shall sell at the best !,~rice obt~inable or present for redemption any
obligations so purcha~d whenever it may be necessary to do so in
order to provide money~ to meet any payment or transfer from such
funds and accounts. Fqr the purpose of deter.mining at any given time
the balance in any such funds ana accounts, any such investment$ con-
stituting a part of suqh funds and accounts shall be valued at the
then estimated or appr~ised market value of such investments. Moneys
in all funds and accou~ts described in Section lO hereof shall be
invested only in Autho~ized Investments; except that so long as any
of the 1971 Bonds and ~e 1980 Bonds are outstanding, amounts in the
Revenue Account, the MI&O Account, the R&R Account, the E&I Account,
the 1980 Sinking Fund, the Bond Service Fund and the Reserve Fund
shall be invested only in direct obligations of or obligations guar-
.anteed by the United S~tes of ~erica, or certificates of deposit of
recognized banks or trUSt companies fully secured by direct obliga-
tions of or obligation~ guaranteed by the United States of America.
All investments of moneylS in such funds and accounts shall mature not
later than such times ai5 the Treasurer estimates such moneys shall be
needed for the purposes for which such moneys are held.
.
SEC'.rIOR 20. ~arranty. The City shall preserve and pro-
tect the security of t~~ 1984 Bonds and the rights of the owners of
the 1984 Bonds and warr~t and defend their rights against ~ll claims
and demands of all per.pns.
S~IOR 21. qovenants. So long as any of the 1984 Bonds
are outstanding, the dity makes the following covenants with the
bondowners under the ptOvisions of Section 1210 of the City Charter
(to be performed by ~he City or its proper officers, agents or
employees) which covenants are n_cessary, convenient and desirable to
secure the 1984 Bonds .nd tend to make them more marketable; pro-
vided, however, that said covenants do not require the City to expend
any moneys other than the Revenues of the Enterprise.
Covenant 1. t?Unctua1 pa~t. The City covenants that it
w ill duly and Punctually payor cause to be paid the principal of and
interest on every 1984 Bond issued hereunder, together with the pre-
mium thereon, if any be' payable, on the date, at the place and in the
manner mentioned in the 1984 Bonds and in accordance with this
Resolution, and that t.e payments into the Bond Service Account, the
Sinking Account and the Reserve Fund will be made, all in strict
conformity with the tetms of the 1984 Bonds and of this Resolution,
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and that it ~ill f~ithfully observe and ~erform all of the
conditions, covenants !~nd requirements of this Resolution and all
resolutions supplement~ thereto and of the 1984 Bonds issued hereun-
der, and that time of i$uch payment and performance is of the essence
of the City's contracbwith the Bondowners.
Covenant 2. ill>>iscbarge Claims. TheCi ty covenants that in
order to preserve andiSirotect t,he priority and security of the 1984
Bonds the City shall y from amounts available in the O&M Account
and discharge all law ' 1 claims for labor, materials and supplies
furnished for or in c~nection with the Enterprise which, if unpaid,
may become a lien or ~~arge upon the property or Revenues of the
Enterprise prior or su .rior to the lien of the 1984 Bonds and impair
the security of the 19 ',., Bonds. The City shall also pay from amounts
available in the O&M . count all taxes and assessments or other gov-
ernmental charges lawf.lly levted or assessed upon or in respect of
the Enterprise or upon! any part thereof or upon any of the revenues
thereof.
Covenant 3. Iqo_n~e Acquisition and Construction. The
Ci ty covenants that as i.oon as funds are available therefor, the City
will commence (to the ~xtent not already conunenced)the accomplish-
ment of the purposes fpr which the 1984 Bonds are issued and will
continue the same to cbtmpletion with all practicable dispatch and in '
an economical manner. .
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Covenant 4. .rate .terprise in Efficient and Bconoatcal
Kanner. The City cove~nts to operate the Enterprise in an efficient
and economical manne .,.,and to operate, maintain and preserve the
Enterprise in good re ir and working order.
Covenant S.Against Sale, Bainent Doaain, Existing and
Puture Agreeaents. Exdept as provided herein, the City covenants
that the Enterprise shia!ll not be mortgaged or otherwise encumbered,
sold, leased, pledged, ~y charge placed thereon, or disposed of as a
whole or substantially, as a whole unless such sale or other di~si-
tion be so arranged as! !to provide for sums adequate to provide for
the immediate payment qf the principal of and interest on and premi-
ums, if any, due upon ~e call and redemption thereof, of the 1984
Bonds. The City fu~ther covenants that the Revenues of the
Enterprise or any othelr funds pledged or otherwise made available to
secure payment of the principal of and interest on the 1984 Bonds
shall not be mortgagedr encumbered, sOld, leased, pledged, any charge
placed thereon, or disposed of or used except as authorized ~ the
terms of this Resolutibn. The City further covenants that it will
not enter into any agreement which impairs the operation of the
Enterprise or any part Qf it necessary to secure adequate revenues to
pay the principal of and inter.at on the 1'84 Bonda or which
otherwise would impair the rights of the bondownera with r.apect to
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the Revenues of the ~nterprise. If any substantial part of the
Enterprise is sold, th~ payment therefor shall either be used for the
acquisition and/or con.~ructionof improvements and extensions of the
Enterprise or shall b~' ,placed in the appropriate funds or accounts
and shall be used to ,'y or call and redeem the 1984 Bonds and any
parity Bonds in the m tmer provided in this Resolution or in any'
parity Bond Resolutio~.
The Ci ty cov~qants that any amounts received as awards as a
result of the taking j'f all or any part of the Enterprise by the
lawful exercise of em,~4',ent domctin, if and to the extent that. such
right can be exercis,la against such property of the City, shall
either be used for th ,acquisit;,ion and/or construction of improve-
ments and extension ,f the Enterprise or shall be placed in the
appropriate funds or ~ccounts and shall be used to payor call and
redeem the 1984 Bonds Ictnd any parity Bonds in the manner provided in
this Resolution or in I~ny Parity Bond Resolution.
The City wil+ not sell, lease or otherwise encumber any
,part of the Enterpris4t except properties or facilities no longer
useful or necessary k:IO its efficient and economical operation.
Notwithstand~~g any other provisions contained herein, the
City may: (1) sell o~dispose of customer connections (and related
distribution lines) lqq, ated outside the City limits, (2) take all
action necessary to fu1till itscommdtments under its existing agree-
ments with Yorba Lind, County Water District, and any subsequent
implemental agreements~ and (3) enter into, and take all actions nec-
essary to fulfill its commitments under, contractual agre~ents con-
cerning water service 11;,0 all or part of any areas which are annexed
to the City of Anaheim ,after the sale and delivery of the 1984 Bonds,
with parties organized 11;,0 provide water service to all or part of any
such area. Any proce~ds from the sale or disposition of any part of
the Water System or t~e granting of any service rights or privileges
pursuant to the prece~ing sentence shall be used to defray the,cost
of renewals, replaceme,~s, additions and extensions to the Enterprise
or shall be held for ~he redemption prior to maturity or open market
purchase of 1984 Bond~ or Parity Bonds then outstanding, but such
purchase price (incluqing brokerage and other charges, but excluding
accrued interest) sha~l not exceed 104% of the principal amount or
the redemption price Qf the callable bonds on the last redemption
date, whichever is leSs. Any proceeds from the sale or disposition
of any part of the Enterprise shall be placed in the Revenue
Account.
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Covenant 6. ~nsurance. The City covenants that it shall
at all times maintain ~~th respQnsible insurers all such insurance on
the Enterprise as is c~tomarilY"maintained by similar utilities sys-'
tems with respect to ~~:ks and properties of like character against
accident to, loss of1"or damag,. e to such works or properties and
against loss of revenu"fS. If aqy useful part of the Enterprise shall
be damaged or destroy.d such part shall be restored to use. The
money collected from ip$urance against accident, loss or damage shall
be used for repairing,~r rebuilding the lost, damaged or destroyed
works and properties, and to the extent not so applied, shall be
applied to the retir~., nt of 0\1tstanding1984 Bonds and any Parity
Bonds issued for the $~terprise and for such purpose paid into the
appropriate funds or a~~ounts. The money collected from loss of rev-
enues insurance shall~e deposited in the Revenue Account.
The City sh~ll also maintain with responsible insurers
workers' compensation 'insurance and insurance against public liabil-
ity and property damag+to the, ~xtent reasonably necessary to protect
the City and the Bondqwners.,
Notwithstand~~g the foregoing, the City may provide any
insurance required b~' this Covenant 6 through a self-insurance
program. '
Covenant 7.,..ecords ""d,AccOUDts. The City covenants
that it shall keep P~ioper books of record and accounts of the
Enterprise, separatet,om all ~tber records and accounts, in which
complete and correct e ~ries sha~l be made of all transactions relat-
ing to the Enterprise.i Said books shall at all times be subject to
the inspection of the ijQlders of not less than 10% of the outstanding
1984 Bonds or their r~presentatives authorized in writing.
The City co~enants that it will cause the books and
accounts of the Entera~ise to be audited annually ~ an independent
certified public acco~rltant or firm of certified public accountants
and shall furnish a cqpy of the audit report, upon request, to any
bondholder.
Covenant 8. i~ollection of Charges. The City will permit
no free connections .ith, or use and services of the Enterprise
except for the follow~ng: (l) public fire qydrants; (2) public fire
flows; (3) watering of 'public street dividers; and (4) to the extent,
if any, provided in the City's existing agreements with Yorba Linda
County Water District. The City will pay promptly into the Revenue
Account from the City'!s General Fund (or other available funds) for
all City connections w~th, use and services of, the Enterprise except
the foregoing. The Ci~ will not grant or establish within any class
of service preferenti~ or discriminatory rates, fees or charges for
connections with, and use and serv~ces of, the Enterprise except as
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provided in the CitY~4 existing agreements with Yorba Linda COunty
Water District and S2~sequent implemental agreements. For the pur-
poses of setting suc . irates, 1"ees and charges, connections located
outside the city lim~s of tht City of Anaheim may be considered as
separate classes of S~' tvice. 1.'be City covenants that it shall at all
times during the per '()d any of the 1984 Bonds are outstanding main-
tain and enforce vali. regulations for the payment of bills for water
service and that sucb regulations shall at all times during such
period provide that ~ne City shall discontinue water service to any
user whose water bill ))as not been paid within the time fixed by said
regulations.
Covenant 9. . . Rates a~d Charges. The City shall and here~
covenants that it Sh~:,~.l prescribe, revise and collect such charges
for the services and f.cilities of the Enterprise which, after making
allowances for contiqgencies and error in the estimates, shall be at
least sufficient to pay the following amounts in the order set
forth:
(a) All curIMnt expenses for the necessary and rea-
sonable OperatiQ. Expenses of the Enterprise as said
expenses become 4/e and ~yable;
(b) The int$iest on and principal payments (including
any sinking'accoup~ paymenus) of the outstanding 1984 Bonds
and Parity Bonds .s they become due and payable;
(c) All paYW~nts required for compliance with this
Resol ution inclu ,tlg transfers required to be made fr<?JD the
Revenue Account 'other funds and accounts; and
(d) All pay~!nts required to meet any other obliga-
tions of the CitYi iwhich are charges, liens or encumbrances
upon or payable ftiom the Revenues of the Enterprise;
and the charges shal~ be so fixed that the Net Revenues shall at
least equal l.50 timers the amounts payable under (b). For PlU'poses
of this Section, Net Revenues shall include all investment income on
all accounts establi~qed in the Water Enterprise Fund and on all
other funds establish.a for the benefit of the holders of the 1984
Bonds or Par i ty Bonds!.
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Covenant 10~ No priority for Additional Indebtedness.
The City covenants th.~ no additional indebtedness shall be incurred
pursuant to Section l~lO and other 'provisions of the City Charter or
any law of the State of California having any priority in payment of
pr incipal or interest out of the Revenues of the Enterprise over the
1984 Bonds.
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Covenant ll~ Liaits on parity Bonds. (a) Parity bonds
may be issued to fin4~ce or re-finance any repairs, improvements,
enlargements or extei,ions of the Enterprise, provided that the City
covenants that, exce t for bonds issued to refund any 1984 Bonds or-
Parity Bonds, no suc 'additional indebtedness evidenced qy revenue
bonds, revenue notes ~r any other evidence of indebtedness payable
out of the Revenues ~f the Enterprise and ranking on a parity with
the 1984 Bonds shall 'be created or incurred unless:
Pi r 8 t . The City is not in defa ul t under the
terms of th~$ Resolution.
The ~et Revenues of the Enterprise,
calculated '~sound apcounting principles, as shown by
the books 0 the City for each of the last two com-
pleted Fisc Years p~ior to the adoption of the reso-
lution appr~ing the sale of such additional indebted-
ness as sh ~ an audit certificate or opinion of an
independent! icertified public accountant or firm of
, certified p~lic ac~untants employed by the City,
plus, at th, option of the City, the allowance for
earnings h~...'.'., inafter set forth in subparagraph (b) "of
this covena~, shall have amounted to at least 1.50
times the ~imum Annual Debt Service in any Fiscal
Year therea ter on all indebtedness to be outstanding
immedia tely . $ubsequent to the incurring of such addi-
tional inde~tedness.
Cb) For the ipurposes ,of this oovenant, the following may be
added to the Net Rev84,es, of the Enterprise for the purpose of apply-
ing the restrictions !<:ontained in this covenant:
An all~ance for earnings arising from any
increase i~ the cha~ges made for service from the
EnterpriselPich has become effective prior to the
incurring 0 .'such adqitional indebtedness but which,
during all ,or any part of said last two completed
Fiscal Years~ was not in effect, in an amount equal to
75' of the ~ount by which the Net Revenues should
have been iQcreased if such increase in charges had
been in eff~ct during the whole of said last two co~
pleted Fisc~ Years, as shown by, the certificate or
opinion of ~ independent certified accountant or firm
of certified public accountants employed qy the City.
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(c) For pur~oses of this Section, Net Revenues shall
include,all investme~t income on all accounts established in the
Wa ter Enterprise Fund! ~d on a1J. other funds established for the ben-
efit of the holders Qf the 1984 Bonds or parity Bonds.
(d) Junior ~ten bonds Cpayablein whole or in part from the
Net Revenues) may be' issued to finance or refinance any repairs,
enlargements, extens~C,~ns or i$provements of the enterprise, but no
Revenues may be use~! for th~ payment of such junior lien bonds
(interest, princi~41, red~mption premium or sinking fund
installments) or the 'establishment or maintenance of any funds or
accounts created in conjunction with their issuance, unle"ss and
until: (1) the City '4as complied fully with all provisions of the
Resolution and has m~4e all payments required to that time by the
Resolution; (2) the ~_serve Fund contains an amount equal to no less
than the maximum com~~ned annual principal and interest requirements
of all 1984 Bonds and parity Bonds then outstanding.
Covenant 12. Arbitr.ge. The City covenants that under no
circumstances shall ~y initi~ investment, subsequent investment or
reinvestment 'of the etoceeds (/)f the 1984 Bonds be made in such a
manner as to result iIi-the loss of exemption from federal income tax-
ation of interest on ithe 1984 Bonds.
Covenant 13., Water .evenue Anticipation Rates. The Ci ty
covenants that it wil~ . retire its Water Revenue Anticipation Notes so
that no such Note or ~otes will remain outstanding under Ordinance
No. 4415 of the City iuncil, as amended by Ordinance No. 4530 of the
City Council, after .e 1971 Bonds and the 1980 Bonds are no longer
deemed to be outstand',g in accordance with their terms and under the
1971 Bond Resolution and the 1980 Bond Resolution, respectively.
SECTION 22. Lost, Stolen, Destroyed, or Mutilated 1984
Bonds. In the event ~at any 1984 Bond is lost, stolen, destroyed
or mutilated, the Ci tv will cause to be issued a new 1984 Bond simi-
lar to the or iginal tp replace the same in such manner and upon such
reasonable terms and pondi tions, including the payment of costs and
the posting of a surety bond if the City deems such surety bond nec-
essary, as may from ~fme to time be determined and prescribed by
resolution. The City may authorize such new 1984 Bond to be signed
and authenticated in such manner as it determines in said
resolution.
SECTION 23. Cancellation of 1984 Bonds. All 1984 Bonds
surrendered to any pay~g agent of the City for payment upon maturity
or for redemption ~hall upon payment therefor be cancelled
immediately. Any 19~ Bonds purchased by the City as authorized
herein shall be canCelled forthwith and shall not be reissued.
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SEC'l'ION 24. i Consent of 1984 Bondholders. The consents
of bondowners provide~: for in t;his Section shall relate solely to the
amendment, waiver dr modification of the covenants specified in
Section 20 hereof an~. shall n<>t be effective to waive or modify any'
other provisions ofbis Resolution or aqy other proceedings for the
issuance of the 198,' Bonds. Any act relating to the amendment,
waiver or modificatiqn of any of the said covenants consented to by
bondowners holding 6~ 2/3% in aggregate principal amount of the out-
standing 1984 Bonds, exclusive of 1984 Bonds, if any, owned ~ the
City, shall be bindincj upon the holders of all of the 1984 Bonds, and
shall not be deemed 4~ inf ringement of any of the provisions of this
Resolution, whatever the character of such act may be, and may be
done and performed a~ fully and freely as if expressly permitted by
the terms of this Re~lution, and after such consent relating to such
specified matters has been given, no bondholder shall have any right
or interest to object to such action or in any manner to question the
propriety thereof or ,to enjoin or restrain the City or any officer
thereof from taking ~~y action pursuant thereto.
'Bondholder. may'cansent by affirmative vote at a
bondowners' meeting ~~ may consent in writing without a meeting, all
as hereinafter proviqed. .
No such amet~ent, waiver or modification shall be made
which will permit (a)i;a change in the maturity or term of redemption
of the principal Ofa~y 1984 Bond or any installment of interest
thereon or a reductio' j in the pirincipal amount of or redemption price
or redemption premi . jor rate 0,: f interest upon any 1984 Bond w~thout
the consent of the hder of such 1984 Bond; or (b) a reduct10n of
the percent;age of the [principal amount of 1984 Bonds the vote or con-
sent of which is req~ired to effect any such amendment.
Notwithstan~ing the foregoing, this Resolution may be
amended without 1984 ~ondowner approval to supplement and amend this
Resolution to permit itihe 1984 Bonds to be issued in coupon form pro-
vided that the City r~~eives an opinion of nationally recognized Bond
Counsel that the is41j1ance of the 1984 Bonds will not affect the
exemption from Feder~ income taxation of the interest on the 1984
Bonds, and the City ~all mail or cause to be mail ed notice to the
owners of the 1984 Bo~cBs of the availability of exchanging registered
1984 Bonds for couponi 1984 Bonds.
(a) calling JJpndbolders I lleeting. If the C i t Y shall
desire to- obtain any such consent it may call a meeting of bondow-
ners, by resolution, !for the purpose of considering the action, the
consent to which is d~sired.
(b) NOtice o~ Meeting. Notice specifying the purpose,
place, date and hour pf such meeting shall be published once in a
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financial newspaper ~t journal of national circulation published in
or near ,the City of lJ_w York, New York, not less than sixty days and
not more than ninety i4ays priQr to the date fixed for the meeting.
Such noti ce shall se~. forth the nature of the proposed action, con-
sent to which is des~Jted. The City Clerk of the City shall also on
or before the first! publication of such notice, mail a similar
notice, postage prePi'.,i,d,to the respective registered owners thereof
at their addresses apearing on the 1984 Bond registry books. The
place, date and hour If holding such meeting and the date or dates of
publishing and mailiQg such notice shall be determined ~ the City,
in its discretion.
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The actual Ifeceipt by any bondholder of notice of any such
meeting shall not be ia condit~on precedent to the holding of such
meeting, and failureito receive such notice shall not affect the
validity of the pr=~edingS thereat. A certificate by the City
Clerk, approved by r "olution of the City Council, that the meeting
has been called andt notice thereof has been given as herein pro-
vided shall be concl qaive as against all parties and it shall not be
open to any bondhold~r to show that he failed to receive notice of
such meeting.
(c) Voting I'alifica~ions. Any bondholder may, prior to
any such meeting, deli~ver his 1984 Bond or 1984 Bonds to any agency
designated by the Ci . for the purpose, and shall thereupon be enti-
;led to receive an a ~",ropriate receipt for the 1984 Bond or 1984
Bonds so deposited, lling for the redelivery of such 1984 Bond or
1984 Bonds at any ti~ after the meeting. ~e Treasurer shall pre-
pare and deliver to tbje chairman of the meeting a list of the names
and addresses of the ~Iegistered owners of 1984 Bonds, with a state-
ment of the matur i ti$ and serial numbers of the 1984 Bonds held and
deposited by each of ',uch bondowners, and no bondholder shall be
entitled to vote at ~'.Ch meeting unless his name appears upon such
list or unless he sh '1 present his 1984 Bond or 1984 Bonds at the
meeting or a certifi ,ate of deposit thereof, satisfactory to the
City, executed by a btlnk or trust company. No bondholder shall be
permitted to vote with respect to a larger aggregate principal amount
of 1984 Bonds than is set against his name on such list, unless he
shall produce the 1984 Bonds upon which he desires to vote, or a cer-
tificate of deposit tbereof as above provided.
(d) Issuer-otned 1984 Bonds. The City covenants that it
will present at the m~'" ting a certificate, signed and verified ~ one
member of the City Co ncil and by the Treasurer stating the maturi-
ties and serial numrs of all 1984 Bonds owned by, or held for
account of, the City,' directly or indirectly. No person shall be
permitted at the meettng to vote or consent with respect to any 1984
Bond appearing upon sbch such certificate, or any 1984 Bond which it
shall be established at or prior to the meeting is owned ~ the City,
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~;~~~~lld 0:0 i~~i~~ct.rt;su~nrC:o~nesduclh9i:8:O:~~)d ~~~l{h~: ~~~~~:~i~~
determining whether ~. quorum is present.
...-..,.~ (e) ODOr1Dl ~d Proc~ure. A representation of at least
66 2/3% in aggregateJ,princiPaU amount of the 1984 Bonds then out-
standing (exclusive ,~t" issuer-owned 1984 Bonds) shall be necessary to
constitute a quorum ~!,~, any meeting of bO,ndowners, but less than a
quorum may adjourn ~ meeting from time to time, and the meeting may
be held as so adjour~d without further notice, whether such adjourn-
ment shall have been! ~ad by a quorum or by less than a quorlDD.. The
City shall, by an in4it.rument in writing, appoint a temporary chaiman
of the meeting, and tJ1e meetin, shall be organized by the election of
a peromanent chairman iand a secretary. At any meeting each bondholder
shall be entitled to I one vote for every $5,000 principal amount of
1984 Bonds with res~ct to which he shall be entitled to vote as
aforesaid, and such Mote may be given in person or by proxy duly
appointed by an instfument' in writing presented at the meeting. ibe
City,' by its duly au~horize~ representative, may attend any meeting
of the bondowners, b~t shall not be required to do so.
(f) Vote R~~ired. At any such meeting held as aforesaid
there shall be submi ',ted for the consideration and action of the
bondowners a state ,entof proposed action, consent to which is
desired, and if suchi~ction shall be consented to and approved by
bondowners holding a~ least 66 2/3% in aggregate amount of the 1984
Bonds then outstandi.g (exclu$ive of issuer-owned 1984 Bonds) the
chairman and secretafY of the meeting shall so certi~ in writing to
the City, and such certificate shall constitute complete evidence of
consent of bondowner, under the provisions of this Resolution. A
certificate signed a,a verified ~ the chairman and the secretary of
any such meeting sha!l be conclusive evidence and the only competent
evidence of matters $tated in such certificate relating to proceed-
ings taken at such m,eting.
(g) Written iC:Onsent of 1984 Bondholders. If the City
shall desire to obtai~ any such consent in writing, without a meeting
of bondowners, the ~ity Council may, by resolution, propose the
action, to which con~ent is desired. A copy of such resolution,
together with a requef;t to oondowners for their oonsent to the action
proposed therein, sh~l be published once in a financial newspa~ or
journal of national birculation published in or near the City of
New York, New York. The City Clerk of the City shall also, on or
before th-e publicati~n of such resolution and request, mail a copy
thereof to each regis~ered owner at the address appearing on the bond
registry books.
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The actual ~~ceipt, ~ any bondholder of such resolution and
request shall not aff~ct the validity of the proceedings for the
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obtaining of such 40nsent. A certificate by said City Clerk,
approved by resoluti~i' of the City Council, that said resolution and
request has been pub jished and mailed as herein provided shall be
conclusive as agains . all par"ties, and it shall not be open to any
bondholder to show hat he failed to receive such resolution and
consent.
Each writt n consent shall be accompanied by proof of
ownership of the 198 i Bonds for which such consent is given. Proof
of ownership shall b i made in such manner as shall be prescribed by
the resol ution propo tLng the acti,on. Any such written consen~ shall
be binding upon the lder of the 1984 Bonds giving such consent and
on any subsequent ho, ~er (whether or not such subsequent holder has
notice thereof) unl~s such consent is revoked in writing by the
holder giving such c~sent or by the subsequent holder. To be effec-
tive, any revocation of COnseDt must be filed before the aCbption of
the resolution accept~ng consents as hereinafter provided.
After the h~llders of at least 66 2/3\ in aggregate princi-
pal amount of the ~'984 Bonds then outstanding (exclusive of
issuer-owned 1984 Bo,ds) shall have consented in writing, the City
Council shall adopt ~." resolution accepting such consents and such
resolution shall con . iitute coaplete evidence of the consent of bond-
owners under this Re~lution.
- (h) Publicai~on of C>>nsent. Notice specify ing the amend-
ment, waiver or modi . tion t1)at has received the consent of bondow-
ners as required by . is section shall be published once in a finan-
cial newspaper or jo~nal of national circulation publ~shed in or
near, the City of New ~rk, New York, not less than sixty days follow-
ing the final actioniln th_ proceedings for the obtaining of such
consent. said notic. is only for the information of bondowners and
failure to publish su~ notice or aqy defect therein shall not affect
the validity of the ~ceedings theretofore taken in the obtaining of
such consent.
S~IO. 25. 1984 Bond Por.a. Subject to the provisions
of the Resolution, t'~ form of the 1984 Bonds and the Registrar's
Certificate of Authelritication shall be substantially as follows:
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,<""''''''''''""",,,
[B~ND PORIIJ
"ITBD S$Hs OP AllBRIm
!' SDTB ~F CALlPO.xA,
coDJr.f!r 01' ORASE
. ' CITY OP AlWlBIB
WAT~ RBVEIIU* BORD, 1984 8BRIP3
No. R-_
$_,000
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The CITY OF ~BIK,a municipal corporation situated in
the County of orange~'i.,.iState o~""" California (the "City"), FQ.R VALUE
REClIVED, hereby pro . ses to ~y, sOlely from the Water Enterprise
Fund, as hereinafter, rovided, to or registered assigns, on
April, 1, _, upon ,esentatiQn and surrender of this bond, the sum
of ' DOLLARS, . i th intetest thereon at the rate of , per
annum, payable semia~uallY on the first day of April and October of
each and every year, . nmencing April 1, 1985, until the City's obli-
gation with respect t . the payment of such principal sum shall be
discharged. Such in_rest sh.ll be payable from the most recent
interest payment dateinext pre~ding the date hereof to which inter-
est has been paid, unfLiess the flate hereof is an April 1 or October 1
to which interest hasllbeen paicli, in which case from the date hereof,
or unless the date he~~of is prior to March 15, 1985, in which case
from October l, 1984,' ,or unless the date hereof is between a record
date and the next suc~eding interest payment date, in which case
f rom such interest paw.ent date; provided, further, that if, as shown
by the records of the! Registrar, interest on the 1984 Bonds shall be
in defaul t, 1984 Bond~ issued in exchange for 1984 Bonds surrendered
for transfer or excha~ge shall bear interest from the interest pay_
ment date to which int:erest has been paid in full on the 1984 Bonds
surrendered or if no interest has been paid, October l, 1984.
The terms an~ provisions of this bond and definitions of
certain terms used hefein may be continued on the reverse side of
this bond and such co~tinued terms and provisions and definitions
shall f or all purposes have the same effect as though fully set forth
on the front of the bOnd.
~his bond s~all be negotiable, subject with respect to
transfer to the provi~lons for registration set forth on the reverse
hereof and in the Resolution.
It is hereby,certified and recited that any and all acts,
conditions and thin~$ required,to exist, to happen and to be
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performed precedent, to and in the incurring of the indebtedness
evidenced by this bo~, ~ and in issuance of this bond exist, have hap-
pened, and have be .. performed in due time, form and manner as
requi red by the Cons. ~ tution and laws of the State of California and
the City Charter and j that this bond, together with all other indebt-
edness of the City ~~, taining to the City I s water system, is within
every debt and other ~d.mit prescribed ~ the Constitution and laws of
the State of Califor~ia and the City Charter.
This bond Sl_ll not ~e entitled to any benefit under the
Resolution or be val ~ or become obligatory for any purpos~ until
this note shall hav . been authenticated by the execution by the
Registrar of the Reg$trar's Certificate of Authentication hereon.
1M WITNESS "BRBOP, the City of Anaheim has caused this
bond to be signed by j~e Mayor and the City Treasurer of the City ~
their facsimile signdtures, countersigned ~ the City Clerk of said
City by her facsimilEt signature, and sealed with the corporate seal
of the City, and has 1caused t~is bond to be dated October 1, 1984.
"~
COI8ft'BRSIGIIBD:
(SBAIJ
City Clerk
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Mayor
City Treasurer
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[FORM OF CERTI"ICATE OF AUTHENTICATION ON ALL BONDS]
REGIS~.S CERTIFICATE OF AUTHENTICATION
This bond i~, one of the Bonds delivered pursuant to the
within-mentioned Resqlution. '
BANK OF AMERICA NATIONAL TRUST
AND SAVINGS ASSOCIATION
Registrar
By:
Authorized Officer
Date of Autbenticatiqn
and, Registration:
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[REVEltSE OF BOND]
Both princi~l of an4 interest on this bond are payable in
lawful money of the ~ited Sta~es of America. 1'he principal on this
bond and any premium iqpon the redemption thereof are payable at the
/~ Securities Services d~vision of Bank of America National Trust and
Savings Association iJri Los An~les or San Francisco, California, or,
at the option of the ~~lder, at any other paying agent of the City in
New York, New York. ,:Dnterest on this bond shall be payable ~ check
or draft mailed to t~ registered owner on the registration records
maintained by the Re~strar, qetermined as of the close of ~siness
on the l5 th day of th.' calendar month iDmediately preceding an inter-
est payment date (incl~ding the date on which the principal of a Bond
is to be paid).
This bond is! one of a duly authorized issue of bonds of the
City designated .wai~r Revenue Bonds, 1984 SeriesR (the -l984
Bonds.), all of which! !have been issued pursuant to Section 1210 of
the City Charter an;ordinance No. 2933 of the City Council, as
amended (the "Ordinan, R), for the purpose of financing the mat of
the acquisition and c nstructi~n of additions to and improvements of
the Ci ty' s water syst., and the creation of said issue and the terms
and' condi tions of the, 1984 Bonds are provided for ~ the resolution
of the City Council apthorizin9 the 1984 Bonds adopted October 9,
1984, designated ResoJt1.Jtion No. 84~ _ (the "ResolutionR), and this
reference incorporate~ the ResOlution and Section 1210 of the City
Charter and the Ordi~nce, and by acceptance hereof the holder of
this bond assents to ~id term,s and conditions. The 1984 bonds are
hereinafter referred to as the "bonds.. The Resolution, is adopted
under, and this bond, is issued under and, is to be construed in
accordance with, the t:i. ty Charter, the Ordinance and the laws of the
State of California.
This bond an~, the interest hereon and any premium upon the
redemption hereof are! ,p,ot a debt of the City, nor a legal or equita-
ble pledge, charge, l~~n or encumbrance upon aqy of its property or
upon any of its incqme, receipts, or revenues, except the Net
Revenues (as defined !n the Resolution) of the City's water ~stem
pledged to its payment~ and the principal of and the interest on this
bond and any premium ~pon the redemption hereof are payable solely
from the Net Revenues' of the City's water system pledged to its pay-
ment and said City is not obligated to pay such principal, interest
and premium except fr~ said Net Revenues. The Water Enterprise Fund
is established under and pursuant to Section 1210 of the City
Charter, the Ordinance and the Resol ution, and under' 'the provisions
of the Resol ution the Revenues of the Ci ty' s water system are
required to be deposi~ed to the credit of the Water Enterprise Fund
and used only for the purposes authorized by the Resolution,
including the payment of principal and interest of the bonds.
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By the term~,of Section 1210 of the City Charter and the
Ordinance and by cov~~ant exptessed in the Resolution, the City is
obligated to prescri., revise., and collect charges for the services
and facilities of thwater ~stem of the City such as to provide
revenues sufficient tq:~ the interest on and principal of the bonds
as they become due a*a payable in addition to all other payments
required for comPlia1~e with the Resolution and the necessary and
reasonable maintena ce and operation costs of the City's water
system, is prohibi te 'from iS$uing bonds having any priority with
respect to payment fr~m the Revenues of the City's water system, and
is subj ect to condi 1;ions wi th respect to any sale of said water
system. In the manneir provide<i in the Resolution, any or all' of the
obligations referred ~o in this paragraph and certain other obliga-
tions mentioned in th~ Resolution may be waived with the consent of
the holders of 66 2/3~ in aggregate principal amount of the outstand-
ing bonds, exclusive of issuer-owned bonds.
If this ~on . matures on or after April 1, 1995, it is
recieemabl e in the 'r and subj ect to the terms and provisions, and
wi th the effect, set iorth in the Resolution referred to on the face
of this bond, at the pption of the City, on and after April 1, 1994,
in whole at any time qr~ in part on any interest payment date. Notice
of such redemption s~~l be m~led first-class, postage prepaid to
the owner of record of: this bond as of the date of such notice, which
shall be at least 30 a~ys' prior to the date fixed for redemption.
Notice of such redem,,' tion shall also, at least 30 days prior to the
date fixed for redemp,.ti.. on, be ~ ublished in a newspaper of general
circulation in the Ci . of Anah<<Um and in a daily newspaper or finan-
cial journal pUblis . d in or. near the Borough of Manhattan, New
York,. Such redempt On shall occur at the following 'redemption
prices, expressed as . percentage of the principal amount, together
with accrued interest to the date of redemption:
Reduapt:io" DamA
RedeDWtioD Price
April 1,
April 1,
April 1,
April 1,
1994
1995
1996
1997
and Oct,per l,
and Oct.t:>er 1,
and Oct4t>er 1,
and thet~after
1994
1995
1996
l03%
102
101
100
, t
subject
on
The Bonds ate issuable in the form of registered Bonds
without coupons in the. denominations of $5,000 or any integral multi-
.~. pl e of $5,000. The ow"r of any Bond or Bonds may surrender the same
(together with a writ~tn instrument of transfer satisfactory to the
Registrar duly exec.ted by the registered owner or his duly
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authorized attorney).t the Securities Services Division of Bank of
America National Tr~st & Savings Association in San Francisco,
California, as Regist~ar, in ~xchange for an equal aggregate princi-
pal amount of re4~, stered Bonds ~f any other authorize~
denominations. Such ,_changes shall be in the manner, subject to the
condi tions and upon; 'the paYJllent of the charges provided in the
Resol ution.
This bond i. transferable, as provided in the Resolution,
only upon the books! ,of the Ci ty kept for that purpose at the
above-mentioned Secur!~ies Services Division of the Registrar, ~ the
registered owner her~qf inpetson, or ~ his duly authorized attor-
ney, upon surrender qf this bond together with a written instrument
of transf er satisfact'~ to the Registrar duly executed by the regis-
tered owner or his ~1 authori~ed attorney, and thereupon a new reg-
istered bond or bonds! ~f this series, without coupons and in the same
aggregate principal ..ount, s~all be issued to the transferee in
exchange therefor as ;provided in the Resolution, and upon payment of
the charges therein E~escribed. The City and the paying agents of
the City may deem an~treat' the person in whose name this bond is
registered as the ab~lute owner hereof for the purpose of receiving
payment of, or on acqaunt of, the principal and interest due hereon
and for all other purposes.
SBCrIOR 26. . Teaporatt 1984 Bonds. Any 1984 Bonds may be
ini tially issued in t;\$1porary form exchangeable for definitive 1984
Bonds. The temporary 1984 Bonds may be printed, lithographed or
typewritten, shall bel of such denominations as may be determined ~
the Ci ty , shall be w i~hout coupons and may contain such reference to
any of the provision$ Qf this Resolution as may be appropriate.
Every temporary 1984 ~nd shall be executed and sealed by the City
and authenticated by~he Registrar in substantially the same manner
as provided in Section 7 hereof. If the City issues temporary 1984
Bonds it will executel and furnish definitive Bonds without del~ and
thereupon the tempora~ 1984 Bonds may be surrendered for cancella-
tion at the office of the Treasurer, and the Treasurer shall deliver
in exchange for such temporary 1984 Bonds an equal aggregate princi-
pal amount of definit1~e 1984 Bonds of the same interest rates and
maturities. Until so exchange,d, the temporary 1984 Bonds shall be
entitled to the same benefits under this Resolution as definitive
1984 Bonds issued hereunder.
SBCl'IOR 27. Resolution Constitutes Contract. The pro-
visions ~f this Resolution shall constitute a contract between the
City and the bondowne~s and the provisions hereof shall be enforce-
able by any bondowner'for the equal benefit and protection of all
.~ bondowners similarly situated by mandamus, accounting, mandatory
injunction or any otber suit, action or proceeding at law or in
equi ty that is now or may hereafter be authorized under the laws of
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the State of CalifornILa in any court of canpetent jurisdiction. Said
contract is made und.~ and is to be construed in accordance with the
laws of the State of!talifornla.
No remedy c ~ferred pereby upon any bondholder is intended
to be exclusive of a ~ other Jtemedy, but each such remedy is cumula-
tive and in addition p every Other remedy and may be exercised with-
out exhausting and w ~hout regard to any other remedy conferred by
the Charter, Ordi ,nce No. 2933 or any law of the State of
California. No waiv t of any default or breach of duty or contract
by any bondholder sh 1 affect any subsequent default or breach of
duty or contract or ,l1al1 impcUr any rights or remedies on said sub-
sequent default or br",ch. No delay or anission of any bondholder to
exercise any right o~ power accruing upon any default shall impair
any such right or pow.~ or shall be construed as a waiver of any such
defaul t or acquiesceIi~e therein. Every substantive right and every
remedy conferred upon! the bondawners may be enforced and exercised as
often as may be deemed expedient. In case any suit, action or pro-
ceeding to enforce ai!~ right or exercise any remedy shall be brought
or taken and the bon bolder shall prevail, said bondholder shall be
entitled to receive~om the Water Enterprise Fund reimbursement for
reasonable costs, exg.nses, outlays and attorneys' fees and should
said suit, action o~ proceeding be abandoned, or be determined
adversely to the bonqowners then, and in every such case, the City
and the bondowners _hall be restored to their former positions,
rights and remedies ~s if such suit, action or proceeding had not
been brought or taken.
Prior to th,e issu~nce of any 1984 Bonds under this
Resolution, the te~..",$"., and conditions of this Resolution and the
rights and obligatio., of the City and of the holders of the 1984
Bonds and coupons t ereunder may be modified or amended in any
respect without the . nsent of any person, upon the adoption by the
City of one or more s!upplemental resolutions.
After the i.,uance and delivery of the 1984 Bonds, this
Resolution shall be ilrirepealable, but shall be subject to modifica-
tion to the extent anqin the manner provided in this Resolution, but
to no greater extent ~d in no other manner.
SECTION 28. Defeasance. Allor any portion of the 1984
Bonds shall no longer. ~e deemed to be outstanding and unpaid if the
City shall have made ~equate provision for the payment, in accor-
dance with the 1984 ~Qnds and this Resolution, of the principal,
interest and premium" if any, to become due thereon at maturity or
upon call and redempt~on prior to maturity. Such provision shall be
~ deemed to be adequate! if the City shall have irrevocably set aside,
in a special trust fupd or account, moneys which when added to the
interest earned or to be earned from the investment or deposit
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thereof shall be su~icient to make said payments as they become
due. Moneys so set ;~ide may be invested in any direct obligations
of, or obligations g~ranteed by, the United States of America, i~
which the City may 1 wfully invest its money. ,
SBCTION 29. PutureContracts. Nothing herein contained
shall be deemed to r.~trict ot prohibit the City from making con-
tracts or creating bo d or o~er indebtedness payable from the gen-
eral fund of the Ci t or front taxes or any source other than the
Revenues of the Ente prise, and from and after the sale of the 1984
Bonds the general fu a of the City shall not include the Revenues of
the Enterprise and n contract or other obligation payable from the
general fund of the ity shall be payable from the Revenues of the
Enterprise, except a. providea herein.
SBC.rION 30. i ,Severability. If any provision, or any por-
tion thereof, cont~ned in this Resolution, or the application
thereof to any person br circUDastance is held to be unconstitutional,
invalid or unenforce~~le" the remainder of this Resolution and the
application of any S~~,~,h proViS,ion, or portion thereof, to other per-
sons or circumstance, shall be deemed severable and shall, not be
affected thereby, and! this Resolution and the 1984 Bonds shall remain
valid and the bondow~'rs shall retain all valid rights and benefits
accorded to them und.r this Resolution, the City Charter and the
Constitution and law$ of the $tate of California.
SBC'l'IOR 31. SubstitJtes. The Mayor Pro-Tempore, any
Deputy City Clerk, .~d any duly authorized substitute for the
Treasurer, may act i, the place and stead of the Mayor, the City
Clerk and the Treasui.r" respectively, in the perfor.mance of aqy and
all things authorize., or provided for in this Resolution, including
the signing of the 1 .84 Bonds.
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, SBC'.rIOII 32. EffectiYe Date. This Resolution shall take
effect immediately.
ADOP'fSO, SI~ AIID 'APPROVBD this ninth day of October,
1984 .
[ SEAL]
Attest:
~~a~~~
~ec/{J;:.u-
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City Clerk
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, LEONORA N. SOHL, City Cler'k of the City of Anaheim, do hereby certify that
the foregoing Resolution No. 84R-396 was introduced and adopted at a regular
meeting provided by law, of he City Council of the City of Anaheim held on
the 9th day of October, 1984~ by the following vote of the members thereof:
~\
AYES:
COUNCIL MEMBERS: Kaywood, Bay, Overholt, Pickler and Roth
NOES:
COUNCIL MEMBmS: None
ABSENT:
COUNCIL MEMBERS: None
AND I FURTHER certify that t~e Mayor of the City of Anaheim signed said
Resolution No. 84R-396 on th, 9th day of October, 1984.
IN WITNESS WHEREOF, I have h~reunto set my hand and affixed the seal Of. the
City of Anaheim this 9th daylof October, 1984. '_
(SEAL)
I, LEOWORA. N., SOHL, City Cle~k. of the City of Anaheim, do hereby certify that
the foregoing is the origina of Resolution No. 84R-396 duly passed and
adopted by the Anaheim City ouncil on October 9, 1984.
~'L 1t~
CITY CLERK
"