80R-075
CITY OF ANAHEIM
RESOLUTION NO. 80 R-75
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM,
CALIFORNIA, AUTHORIZING THE ISSUANCE OF $ 7,350,000
WATER REVENUE BONDS. OF SAID CITY AND PROVIDING THE
TERMS AND CONDITIONS FOR THE ISSUANCE OF SAID BONDS
WHEREAS, the City of Anaheim is a City organized
and existing under a Charter duly and regularly adopted
pursuant to the provisions of the Constitution of the State
of California; and
WHEREAS, pursuant to Section 1210 of said Charter,
the City of Anaheim acting by and through its City Council,
is authorized to issue, on behalf of said City, revenue bonds
for water purposes; and
WHEREAS, said Section 1210, Revenue Bonds, of
said City Charter, states as follows:
"Bonds which are payable only out of such reve-
nues as may be specified in such bonds may be issued
1
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when the City Council by ordinance shall have estab-
lished a procedure for the issuance of such bonds.
Such bonds, payable only out of revenues, shall not
constitute an indebtedness or general obligation
of the City. No such bonds payable out of revenues
shall be issued without the assent of a majority of
the voters voting upon the proposition for issuing
the same at an election at which such proposition
shall have been duly submitted to the qualified
electors of the City.
"It shall be competent for the City to make
contracts and covenants for the benefit of the hold-
ers of any such bonds payable only from revenues
and which shall not constitute a general obligation
of the City for the establishment of a fund or funds,
for the maintaining of adequate rates or charges,
for restrictions upon further indebtedness payable
'out of the same funds or revenues, for restrictions
upon transfer 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
2
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for any other purpose whatever except for the purpose
for which such special fund was established and shall
be deemed segregated from all other funds of the
City and reserved exclusively for the purpose for
which such special fund was established until the
purpose of its establishment shall have been fully
accomplished."
WHEREAS, pursuant to said Section 1210 of said
Charter, and Resolution No. 78 R-533 of the City Council
of the City of Anaheim, a special municipal election was
held in said City on November 7, 1978 for the purpose of
submitting to the qualified voters of said City the fol-
lowing proposition of issuing water revenue bonds in the
amount of $l4,000,OOO, pursuant to the provisions of said
Section l2l0:
"Shall the City of Anaheim be authorized to finance
.the ac.quisi tion and construction of additions to and
improvements of the water system of said city by the
issuance of revenue bonds, not payable from property
taxes, in an amount not to exceed 14 million dollars?"
3
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WHEREAS, said proposition was approved by the
votes of more than a majority of all the voters voting
on said proposition at said special municipal election;
whereas Ordinance No. 2933 of the City Council of the
City of Anaheim incorporating certain sections of the
Revenue Bond Act of 1941 (Chapter 6, Part 1, Division 2,
Title 5 of the Government Code of the State of California)
establishes a procedure for the issuance of such bonds as
provided for in said Section 12l0~ and
WHEREAS, said City is now authorized to issue
said Bonds by this Resolution and pursuant to the proce-
dures set forth in said Ordinance No. 2933, and as pro-
vided in said Section 1210; and
WHEREAS, this City Council has accepted a pro-
posal for the purchase of an issue of said Bonds in the
principal amount of $ 7,350,000, designated "Water Revenue
Bond5, 1980 Series";
NOW, THEREFORE, the City Council of the City
of Anaheim, California, DOES HEREBY RESOLVE, DETERMINE
AND ORDER as follows:
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Section 1. Definitions. As used in this Resolu-
tion, the following terms shall have the following meanings:
(a) "Authorized investments" means direct obliga-
tions of or obligations guaranteed by the United States
of America, or Certificates of Deposit of recognized
banks or trust companies fully secured by direct obli-
gat ions of or obligations guaranteed by the United
States of America.
(b) "Bonds" means the bonds authorized by this
resolution.
(c) "City" means the City of Anaheim, California.
(d) "City Council" or "Council" means the City
Council of said City.
(e) "Consulting engineer" means a qualified
,
independent consulting engineer to be employed by
City.
(f) "Enterprise" means the entire waterworks
system of the City of Anaheim, including all additions
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to, and improvements and extensions of, said system
later constructed or acquired.
(g) "Finance Director" means the Finance Direc-
tor of the City.
(h) "Fiscal Agent" means Bank of America NT&SA,
or any successor appointed pursuant to Section 11 hereof.
(i) "Fiscal year" means the year period begin-
ning on July 1 and ending on the next following June 30.
(j) "Maximum annual debt service" means
the maximum sum obtained for any fiscal year of com-
putation, or any fiscal year thereafter by totaling
the following for such fiscal year:
(1) The principal amount of all outstand-
ing serial bonds of this issue and any parity
serial bonds payable in such fiscal year;
(2) The minimum principal amount of all
outstanding term bonds of this issue and any
parity term bonds scheduled to be called and
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redeemed in such fiscal year, together with
the premium thereon, if any be payable; and
(3) The interest which would be due dur-
ing such fiscal year on the aggregate principal
amount of bonds which would be outstanding in
such fiscal year if the bonds are retired as
scheduled, but deducting and excluding from such
aggregate amount the amount of bonds already re-
tired.
(k) "Net revenues" of the enterprise means
the amount of the gross revenues of the enterprise
less the operating expenses of the enterprise.
(1) "Operating expenses" of the enterprise
means the reasonable and necessary current expenses
of maintaining, repairing and operating the enter-
prise, but excluding depreciation and amortization,
debt service requirements of the City's general
obligation water bonds, and pro rata apportionment
of City's administrative expenses (except expenses
directly attributable to water system functions).
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(m) "Parity bonds" means revenue bonds, revenue
notes or other similar evidences of indebtedness hereto-
fore or hereafter issued for the acquisition, construc-
tion and financing of extensions of, additions to,
repairs and replacements to, renewals of, and improve-
ments of the enterprise, payable out of the revenue de-
rived from the enterprise and which, as provided in this
resolution, rank on a parity with the bonds of this issue.
(n) "Parity bond resolution" means any resolu-
tion of issuance for any parity bonds.
(0) "Revenue Bond Law" means the Revenue Bond
Law of 1941 as cited in the recitals hereof.
(p) "Revenues" of the enterprise means rates,
fees and charges for providing water service to per-
sons and real property (including connection fees)
and all other fees, rents and charges and other in-
come derived by the City, from the ownership, opera-
tion, use or services of the enterprise.
(q) "Treasurer" means the City Treasurer of
said City.
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Section 2. Equality of Bonds, Pledge of Revenues.
Pursuant to Section l210 of the City Charter, said Ordinance
No. 2933 and this resolution, the bonds shall be equally se-
cured by a pledge, charge and lien upon the net revenues of
the enterprise without priority for number, date of bonds,
date of sale, date of execution, or date of delivery, and
the payment of the interest on and principal of said bonds
and any premiums upon the redemption of any thereof shall
be and are secured by an exclusive pledge, charge and lien
upon the net revenues of the enterprise, and all of the net
revenues of the enterprise are hereby pledged, charged and
assigned for the security of said bonds, and such net
revenues and any interest earned on the net revenues shall
constitute a trust fund for the security and payment of
the interest on and principal of said outstanding bonds
and so long as any of the bonds or interest thereon are
unpaid said net revenues and interest thereon shall not
be used for any other purpose, except as permitted by
this resolution and any parity bond resolution, and shall
be held in trust for the benefit of the bondholders and
shall be applied pursuant to this resolution, or to this
resolution as modified pursuant to provisions herein, and
any parity bond resolution.
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Nothing in this resolution shall preclude:
(a) the redemption prior to maturity of any bonds sub-
ject to call and redemption and payment of said bonds
from proceeds of refunding bonds issued under said Sec-
tion 1210 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 additional indebtedness evidenced by revenue bonds,
revenue notes or any other evidences of indebtedness pay-
able out of the revenues of the enterprise and ranking
on a parity with said bonds.
Any bond for the payment and discharge of which
upon or prior to maturity, or upon redemption prior to matu-
rity, provision has been made through the setting apart in
the Water System Revenue Bond and Interest Fund or the Re-
demption Fund or in a special trust fund or account created
pursuant to this resolution to insure the payment or redemp-
tion thereof (as the case may be), of money sufficient for
the purpose, or through the irrevocable segregation for
that purpose in some fund or trust account of moneys suf-
ficient therefor, shall be deemed to be no longer outstand-
ing and unpaid within the meaning of any provision of this
resolution.
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Additionally, the bonds shall be deemed to be
no longer outstanding and unpaid within the meaning of
any provision of this resolution, if the City shall have
given to the Fiscal Agent: (a) irrevocable instructions
to publish a notice of redemption (if any bonds are to
be redeemed); and (b) authorized investments maturing
and bearing interest at times and in amounts sufficient
to pay when due the principal and interest or redemption
price (if any) to become due on all the bonds.
Section 3. Amount, Issuance, Purpose and Nature
of Bonds. Under and pursuant to Section 1210, revenue
bonds of the City in the amount of $ 7,350,000 shall be
issued for the purposes stated in the recitals hereof.
Said revenue bonds shall be and are special obligations
of the City and shall be and are secured by a pledge of
and lien upon, and shall be and are a charge upon, and
shall be and are payable as to the principal thereof and
interest thereon and any premiums upon the redemption of
any thereof solely from, the net revenues of the enter-
prise, such net revenues being hereby pledged, charged
and assigned for the security of the bonds.
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Section 4. No General City Liability. The gen-
eral fund of the City is not liable for the payment of
the bonds or their interest, nor is the credit or taxing
power of the City pledged for the payment of the bonds or
their interest. The holder of the bonds or coupons shall
not compel the exercise of the taxing power by the City
or the forfeiture of any of its property. The principal
of and interest on the bonds and premiums upon the redemp-
tion of any thereof are not a debt of the City nor a legal
or equitable pledge, charge, lien, or encumbrance, upon
any of its property, or upon any of its income, receipts,
or revenues, except the net revenues of the enterprise
which are, under the terms of this resolution and the
Revenue Bond Law, pledged to the payment of said bonds
and interest.
Section 5. Description of the Bonds. The bonds
shall be in the principal sum of $ 7,350,000. The bonds
shall" all be in the denomination of $5,000, and shall be
1470 in number, numbered 1 to 1470, inclusive. The
bonds shall be designated WATER REVENUE BONDS, 1980 SERIES,
shall be dated January 1, 1980, and shall be payable in con-
secutive numerical order on July 1 in each year of maturity
12
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in the amounts and shall bear interest at the rates per
annum, for each of the several years as follows:
Principal Interest Principal In terest
Year Amount Rate Year Amount Rate
1981 $ 100,000 8.00% 1991 $ 215,000 8.00%
1982 110,000 8.00% 1992 235,000 8.00%
1983 115,000 8.00% 1993 255,000 8.00%
1984 125,000 8.00% 1994 275,000 8.00%
1985 135,000 8.00% 1995 295,000 8.00%
1986 150,000 8.00% 1996 320,000 7.60%
1987 160,000 8.00% 1997 345,000 7.70%
1988 175,000 8.00% 1998 370,000 7-3/4%
1989 185,000 8.00% 1999 400,000 7-3/4%
1990 200,000 8.00% 2005 3,185,000 8.00%
The bonds maturing in the years 1981 to 1999,
inclusive, are sometimes referred to herein as "serial
bonds" and the bonds maturing in the year 2005 are some-
times referred to herein as "term bonds."
Section 6. Interest. Said bonds shall bear
interest at the rates set forth in Section 5 hereof, pay-
able semiannually on the first days of January and July
of each year. Each bond shall bear interest until the
principal sum thereof has been paid, provided, however,
that if at the maturity date of any bond, or if the same
is redeemable and has been duly called for redemption,
13
funds are available for the payment or redemption thereof
in full accordance with the terms of this resolution, said
bonds shall then cease to bear interest. Said bonds and
the interest thereon shall be payable in lawful money of
the United States of America at the office of the Treasurer
of the City of Anaheim, California, or, at the option of
the holder, at the corporate agency division of Bank of
~erica NT&SA, in Los Angeles, or at any paying agent of
the City in San Francisco, California, Chicago, Illinois,
or New York, New York.
Section 7. Execution of Bonds. The Mayor of
the City and the Treasurer are hereby authorized and di-
rected to sign all of the bonds by their printed, litho-
graphed or engraved facsimile signatures, and the City
Clerk of the City is hereby authorized and directed to
countersign the bonds and to affix thereto the corporate
seal of the City, and the Treasurer is hereby authorized
and directed to sign the interest coupons of the bonds by
his printed, lithographed or engraved facsimile signature.
Section 8. Registration. The Bonds may be
registered only as to both principal and interest, and
any registered bond may be discharged from registration
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in the manner and with the effect set forth in the provi-
sions for registration contained in the form or bond set
forth herein.
Section 9. Temporary Bonds. The bonds may
be initially issued in temporary form exchangeable for
definitive bonds when ready for delivery. The temporary
bonds may be printed, lithographed or typewritten, shall
be of such denominations as may be determined by the City,
shall be in registered form without coupons and may con-
tain such reference to any of the provisions of this reso-
lution as may be appropriate. The temporary bonds may be
in the form of a single registered bond payable in in-
stallments, each on the date, in the amount and at the
rate of interest established for bonds maturing on such
date. Every temporary bond shall be executed by the City
upon the same conditions and in substantially the same
manner as the definitive bonds. If the City issues tem-
porary bonds it will execute and furnish definitive bonds
without delay, and thereupon the temporary bonds may be
surrendered, for cancellation, in exchange therefor at
the corporate agency division of the Fiscal Agent in Los
Angeles, California, and the Fiscal Agent shall authenti-
cate and deliver in exchange for such temporary bonds an
15
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equal aggregate principal amount of definitive bonds of
the same maturity or maturities. Until so exchanged, the
temporary bonds shall be entitled to the same benefits
under this resolution as definitive bonds executed and
delivered hereunder.
Section 10. Redemption of Bonds. The bonds matur-
ing on or prior to July 1, 1986, are not subject to call
or redemption prior to maturity. The bonds maturing on
or after July 1, 1987, may be called before maturity and
redeemed, at the option of the City, on July 1, 1986, or
on any interest payment date thereafter prior to maturity,
at a redemption price for each redeemable bond expressed
in the following schedule as a percentage of par value,
plus accrued interest to the date of redemption, as follows:
Redemption Period Redemption
(Dates Inclusive) Price
July 1, 1986 to June 30, 1989 . . . . . . . . . . . . . . 103%
July 1, 1989 to June 30, 1992 . . . . . . . . . . . . . . 102%
July 1, 1992 to June 30, 1995 . . . . . . . . . . . . . . 101%
July 1, 1995 and thereafter . . . . . . . . . . . . . . . . 100%
16
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Allor any of the bonds subject to call may
be called for redemption at anyone time. If less than
all of the bonds are redeemed at anyone time, such bonds
shall be redeemed in inverse order of maturity and by lot
within each maturity. The interest payment date on which
bonds which are called are to be presented for redemption
is herein sometimes called the "redemption date."
(a) Notice of Redemption. Notice of the intended re-
demption shall be published by one insertion in a newspaper
of general circulation in the County of Los Angeles, Cali-
fornia, and in a financial newspaper or journal of national
circulation published in or near the City of New York, New
York, said publications to be at least 30 days but not more
than 60 days prior to the redemption date. The notice of
redemption shall (a) state the redemption date; (b) state
the redemption price; (c) state the numbers and date of
maturity of the bonds to be redeemed, provided, that when-
ever any call includes all of the outstanding bonds sub-
ject to call, the numbers of the bonds need not be stated;
(d) require that such bonds be surrendered with all inter-
est coupons maturing subsequent to the redemption date
(except that no coupons need be surrendered on registered
17
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bonds) at the office of the Treasurer of the City of Ana-
heim, California, or, at the option of the holder, at the
corporate agency division of Bank of America NT&SA in Los
Angeles, or at any paying agent of the City in San Francisco,
California, Chicago, Illinois, or New York, New York; and
(e) give notice that further interest on such bonds will not
accrue after the designated redemption date.
The Fiscal Agent shall, on or before the date of
publication of said notice of redemption, mail a similar
notice postage prepaid to any person, firm or corporation
that originally purchased any of said bonds from the City.
If any of the bonds designated for redemption
shall be registered, the Fiscal Agent shall, on or before
the date of publication of said notice of redemption,
mail a similar notice postage prepaid to the respective
registered owners thereof at the addresses appearing on
the bond registry book.
The actual receipt by the holder of any bond
of notice of such redemption shall not be a condition
precedent to redemption, and failure to receive such no-
tice shall not affect the validity of the proceedings for
18
the redemption of such bonds or the cessation of interest
on the redemption date. The notice or notices required
by this section shall be given by the Fiscal Agent. A
certificate by the Fiscal Agent that notice of call and
redemption has been given to original purchasers and to
holders of registered bonds as herein provided shall be
conclusive as against all parties, and no bondholder whose
bond or registered bond is called for redemption may ob-
ject thereto or object to the cessation of interest on
the redemption date fixed by any claim or showing that
he failed to receive such notice of call and redemption.
(b) Redemption Fund. Prior to the redemption date,
there shall be established by the Fiscal Agent a redemp-
tion fund to be described or known as Water Revenue Bonds,
1980 Series, Redemption Fund (herein sometimes referred
to as "Redemption Fund"), and prior to the redemption
date there shall be set aside in said Redemption Fund
moneys available for the purpose and sufficient to redeem,
at the premiums payable as in this resolution provided,
the bonds designated in such notice of redemption. Said
moneys must be set aside in said fund solely for that pur-
pose and shall be applied on or after the redemption date
19
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to payment (principal and premium) of the bonds to be
redeemed upon presentation and surrender of such bonds
and, except as to registered bonds, all interest coupons
maturing after the redemption date, and shall be used
only for that purpose. Any interest coupon due on or
prior to the redemption date shall be paid from the Water
System Revenue Bond and Interest Fund upon presentation
and surrender thereof. Any interest due on or prior to
the redemption date upon bonds registered as to both prin-
cipal and interest shall be paid from said Water System
Revenue Bond and Interest Fund. Each bond presented,
if unregistered, must have attached thereto or presented
therewith all interest coupons maturing after the redemp-
tion date. If, after all of the bonds have been redeemed
and canceled or paid and canceled, there are moneys remain-
ing in said Redemption Fund, said moneys shall be trans-
ferred to the Revenue Fund; provided, that if said moneys
are part of the proceeds of refunding bonds said moneys
shall" be transferred to the fund or account created for
the payment of principal of and interest on such refund-
ing bonds.
(c) Effect of the Notice of Redemption. When notice
of redemption has been given, and when the amount necessary
20
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for the redemption of the bonds called for redemption (prin-
cipal and premium) is set aside for that purpose in the Re-
demption Fund, the bonds designated for redemption shall
become due and payable on the redemption date, and upon
presentation and surrender of said bonds and, except as
to registered bonds, all interest coupons maturing after
the redemption date, at the place specified in the notice
of redemption such bonds shall be redeemed and paid at
said redemption price out of the Redemption Fund, and
no interest will accrue on such bonds called for redemp-
tion or on any interest coupon thereof after the redemption
date specified in such notice, and the holders of said
bonds so called for redemption after such redemption date
shall look for the payment of such bonds and the premium
thereon only to said Redemption Fund. All bonds redeemed
and all interest coupons thereof shall be canceled forth-
with by the Fiscal Agent and shall not be reissued.
All interest coupons pertaining to any redeemed
bonds, which coupons have matured on or prior to the re-
demption date, shall continue to be payable to the respec-
tive holders thereof but without interest thereon. All
unpaid interest payable at or prior to the redemption date
21
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upon registered bonds shall continue to be payable to the
respective registered owners of such bonds, or their order,
but without interest thereon.
Section 11. Fiscal Agent. The City hereby
appoints the Bank of America NT&SA in Los Angeles, Cali-
fornia, as the Fiscal Agent for the purpose of paying the
principal of and interest on any of the bonds presented
for payment at its corporate agency division in Los Angeles,
California, and for the purpose of performing all other
duties assigned to or imposed upon the Fiscal Agent as
in this resolution provided. The Fiscal Agent initially
appointed and any successor thereof may be removed by the
City and a successor or successors appointed; provided
that each such successor shall be a bank or trust company
J
doing business in and having an office in the City of Los
Angeles, State of California. Any such Fiscal Agent desig-
nated by the City shall continue to be the Fiscal Agent of
the City for all of said purposes until the designation of
a successor as such Fiscal Agent, and the City agrees that
it will maintain a Fiscal Agent in said City of Los Angeles
so long as any of said bonds or any parity bonds are out-
standing and unpaid. The Fiscal Agent is hereby authorized
22
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and directed to withdraw from the funds and in the manner
provided herein all sums required for the payment of the
principal of and interest on the bonds presented for
payment at the places herein provided at maturity, or on
call and redemption or on purchase by the Fiscal Agent
prior to maturity. The Fiscal Agent is hereby authorized
to redeem the bonds and the interest coupons appertaining
thereto when duly presented to it for payment at maturity,
or on call and redemption or on purchase by the Fiscal
Agent prior to maturity, and to cancel all bonds and cou-
pons upon payment thereof and to return the same so canceled
to the Treasurer. The Fiscal Agent shall keep accurate rec-
ords of all funds administered by it and of all bonds and
coupons paid and discharged by it.
The recitals of fact and all promises, cove-
nants and agreements herein and in the bonds of said
authorized issue contained shall be taken as statements,
promises, covenants and agreements of the City, and the
Fiscal Agent assumes no responsibility for the correct-
ness of the same, and makes no representations as to the
validity or sufficiency of this resolution or of the bonds
or coupons, and shall incur no responsibility in respect
23
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thereof, other than in connection with the duties or obli-
gations herein or in the bond assigned to or imposed upon
the Fiscal Agent. The Fiscal Agent shall be under no re-
sponsibility or duty with respect to the issuance of the
bonds for value. The Fiscal Agent shall not be liable in
connection with the performance of its duties hereunder,
except for its own negligence or default.
Any Fiscal Agent appointed hereunder may resign
at any time. Upon the merger, consolidation or other re-
organization of any Fiscal Agent, the City shall appoint
a new Fiscal Agent, which may be the corporation resulting
from such reorganization.
Section 12. Funds and Accounts. Under and pur-
suant to said Section 1210 and said Ordinance No. 2933 the
following funds and accounts have heretofore been created
and shall be continued:
(1) Water Revenue Series 1971 Bonds, Water
Enterprise Fund (hereby redesignated as the "Water
Enterprise Fund II ) held by the City Treasurer, in
which were created the following accounts:
24
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(a) Water Revenue Series 1971 Bonds, Water
System Revenue Account (hereby redesignated as
the Water System Revenue Account and sometimes
referred to herein as "Revenue Account");
(b) Water Revenue Series 1971 Bonds, Water
System Maintenance and Operation Account (hereby
redesignated as the Water System Maintenance
and Operation Account and sometimes referred to
herein as "M & 0 Account");
(c) Water Revenue Series 1971 Bonds, Water
System Renewal and Replacement Account (hereby
redesignated as the Water System Renewal and Re-
placement Account and sometimes referred to
herein as "R & R Account");
(d) Water Revenue Series 1971 Bonds, Water
System Extension and Improvement Account (hereby
redesignated as the Water System Extension and
Improvement Account and sometimes referred to
herein as the "E & I Account");
25
""~"'''- ----.............,._...--=-
(2) Water Revenue Series 1971 Bonds, Water Sys-
tem Revenue Bond and Interest Fund (hereby redesignated
as the Water System Revenue Bond and Interest Fund and
sometimes referred to herein as "Bond Service Fund")
held by the Fiscal Agent.
(3) Water Revenue Series 1971 Bonds, Water
System Revenue Bond Reserve Fund (hereby redesig-
nated as the Water System Revenue Bond Reserve Fund
and sometimes referred to herein as "Reserve Fund")
held by the Fiscal Agent.
An additional account is hereby created in the
Water Enterprise Fund designated as the Water Revenue
Bonds, Election 1978, Construction Account (herein some-
times referred to as "Construction Account").
An additional fund is hereby created, desig-
nated" the Water System Revenue Bond Sinking Fund (herein
sometimes referred to as "Sinking Fund") held by the Fis-
cal Agent.
26
.. \ '..
,_,~"".".""",,"__=,...,.,_.. -:.. """.'_"'''_r~".''''''__='=.,_ ,___."'.'"._."...,....,~,. .....="",...__"""'.""'''''"'''''''''~.,"--...,..........".'''.~
Section 13. Disposition of Bond Proceeds.
The proceeds of the sale of the bonds shall be received
by the Treasurer and deposited as follows:
(1) The accrued interest, if any, shall be
paid to the Fiscal Agent, for deposit in the Bond
Service Fund.
(2) An amount shall be paid to the Fiscal Agent,
for deposit in the Reserve Fund, sufficient to raise
the balance in said fund to a sum equal to maximum
annual debt service.
(3) The balance shall be placed in the Construc-
tion Account.
The City may deposit money received from any
source in the Construction Account. The moneys set aside
and placed in the Construction Account shall remain therein
until from time to time expended for the purposes for which
the bonds were issued.
Moneys in the Construction Account may be invested
in any authorized investments, provided that the maturity or
27
",._,.....",....~"..........,.,-
maturities thereof shall not be later than the date or
dates on which moneys must be available to meet scheduled
Construction Account expenditures. If any sum remains
in said Construction Account after the full accomplish-
ment of the purposes for which the bonds were issued,
it shall be transferred to and placed in the Reserve
Fund in such amounts as shall be necessary to bring the
balance in the Reserve Fund to an amount equal to maximum
annual debt service, and any sum remaining thereafter in
the Construction Account shall be transferred to and
placed into the R & R Account in such amounts as shall be
necessary to bring the balance in the R & R Account to an
amount equal to the maximum balance required by Section 17
hereof, and any sum remaining thereafter in the Construction
Account shall be transferred to the Revenue Account.
Section 14. Revenue Account. The Treasurer
shall deposit the gross revenues of the enterprise as
received in the Revenue Account. The Finance Director
shall transfer moneys from the Revenue Account to the
funds and in the amounts and priority as follows.
Section 15. M & 0 Account. First, to the M & 0
Account, amounts sufficient for the payment of the operating
28
......,. . .-....-.,"'"'"......,~""'"'_,.._.~ '_._"'_'C"""",__""",__,,,~,,,,,,,,,,,,,,,,,,,,,,"
expenses of the water system as said expenses become due
and payable, and in addition such amounts as are neces-
sary to maintain the M & 0 Account at a level equal to
one month's budgeted operating expenses, said budget to
be maintained by the Finance Director and approved by
City Council.
,-'
Section 16. Bond Service Fund; Sinking Fund.
Second, on or before the twentieth (20th) day of each
calendar month so long as any of the bonds are outstand-
ing, the Finance Director shall set aside out of the Revenue
Account into the Bond Service Fund held by the Fiscal
Agent, the fOllowing amounts: (1) One-sixth (1/6th) of
the interest which will become due and payable on the
outstanding bonds within the next ensuing six (6) months,
except that for the first six (6) months after the date
of the bonds the monthly sum transferred shall be the
interest which will become due and payable at the end
of the first six (6) months less the amount of any ac-
crued interest placed in the Bond Service Fund divided
by the number of months remaining in said period: and
(2) one-twelfth (1/12th) of the principal amount which
will mature and be payable on the outstanding serial
bonds within the next ensuing twelve (12) months, except
29
"""-'""""-""'--"--=""""~'--''''''''~
that for the first twelve (l2) months after the date of
the bonds the monthly sum transferred shall be the prin-
cipal amount which will be due and payable at the end of
the first twelve (12) months divided by the number of
months remaining in said period. In the event that the
transfer or transfers for each calendar month as afore-
said are less than the amounts required for that month
because of lack of funds or for any other reason the defi-
ciency shall be added to and become a part of the transfer
or transfers required for the following calendar month.
In any event, such sums shall be transferred
so that the full amount required to pay, as it becomes
due, the interest on said bonds and any maturity or in-
sta+lment of principal,on said bonds shall be set aside
in the Bond Service Fund at least five (5) days prior to
the date the installment of interest and/or principal be-
comes due.
Any moneys required to be set aside, transferred
to and placed in the Bond Service Fund may be prepaid in
whole or in part by being earlier set aside, transferred
to and placed in the Bond Service Fund, and in that event
30
__,~_.~.,"'._,",__.,.."_",._._...,, ...,'_,.__..,,_,,_,___..._.._....,~""c,._,..~ ,,""""'~~.......'"""'.="."",.~."'_,!,..,_~_"'","..._
the monthly transfer which has been so prepaid need not
be made at the time appointed therefor. In any event at
least five (5) days prior to the due date of any install-
ment of interest and/or principal on such bonds all sums
required for the paYment thereof must be in the Bond Ser-
vice Fund.
Moneys in the Bond Service Fund may be temporar-
ily invested in any authorized investments provided that
the maturity or maturities thereof shall not be later than
the date or dates on which money must be available in the
Bond Service Fund.
The bonds and the interest coupons shall recite
that they are payable from the Revenue Account, but notwith-
standing such recital shall be paid from the Bond Service
Fund which is derived from the Revenue Account, or from a
Redemption Fund established in accordance with Section 10(b)
of this resolution.
Commencing on or before June 20, 2000 and on or
before each June 20 thereafter so long as any of the term
bonds are outstanding, the Finance Director shall set aside
out of the Revenue Account and pay to the Fiscal Agent
31
for deposit in the Sinking Fund sums sufficient to call
and redeem said term bonds in the following respective
minimum principal amounts on July 1 in each of the fol-
lowing years:
,
Year Amount Year Amount
2000 $ 435,000 2003 $ 545,000
200l 470,000 2004 590,000
2002 505,000 2005 640,000
Any such call and redemption shall be made in
accordance with Section 10 hereof, and for that purpose
moneys in the Sinking Fund may be transferred to the Redemp-
tion Fund for the payment of principal upon redemption
of any term bonds called for redemption prior to maturity.
Moneys in the Sinking Fund may also be used,
prior to the date when any term bonds are selected by
lot, in lieu of (or partially in lieu of) mandatory call
and redemption, for the purchase of any such term bonds
at a purchase price (including brokerage and other fees)
not exceeding the principal amount thereof plus accrued
interest.
32
""_"..,....._.,-'...,~.,,"'......_.....,.__._" "",;_"'"'...",..."_~_,.c_.."~.........--~;.;__.,....".~___.~_.
Moneys in the Sinking Fund may be invested in
any authorized investments, provided that the maturity
or maturities thereof shall not be later than the date
or dates on which money must be available in the Sinking
Fund to meet the payment schedule set forth above.
If after all of the bonds and any parity bonds
have been redeemed and canceled or paid and canceled (or
provision is made therefor) there are moneys remaining
in the Bond Service Fund, Sinking Fund or Reserve Fund,
said moneys shall be transferred to the Revenue Account.
Section 17. Reserve Fund. Third, on or before
the twentieth (20th) day of each calendar month so long
as any of the bonds are outstanding, the Finance Director
shall set aside out of the Revenue Account into the Reserve
Fund held by the Fiscal Agent an amount adequate to main-
tain a balance in said Reserve Fund equal to maximum annual
debt 'service.
Moneys in the Reserve Fund shall be used solely
for the purpose of paying the principal of and interest
on the bonds or any parity bonds in the event that the
moneys in the Bond Service Fund are insufficient therefor
33
--""~"''''*-''''''--,-','''--"",...,--~."-"_._","".._,..,......",,,-,,,"",......-,---~~"""
and for that purpose the Fiscal Agent shall withdraw and
transfer moneys from the Reserve Fund to the Bond Service
Fund. Whenever moneys are withdrawn from the Reserve
Fund an equal amount of moneys shall be placed in the
Reserve Fund by transfers from the first available moneys
in the Revenue Account.
Moneys in the Reserve Fund may be invested in
any authorized investments provided that the maturity
or maturities thereof shall not be later than five (5)
years from the date of investment, and provided further
that moneys in the Reserve Fund in excess of maximum an-
nual debt service shall be withdrawn from the Reserve
Fund and transferred to the Revenue Account by the Fiscal
Agent.
Moneys in the Reserve Fund may be used to pay
the principal of and/or interest on the last outstanding
maturity of the bonds or any parity bonds.
Section 18. R & R Account. Fourth, on or
before the twentieth (20th) day of each calendar month
as long as the bonds are outstanding, the Finance Director
shall set aside out of the Revenue Account into the R & R
34
._:......_=.~_c.;..__~__~"..._~."~_~ ..=_,-,,,.,..._'_..,,--....~"-""'~_ _."'--..._..."_..,...~......,,_... -.'."'-";m_..._'''_.+_.~~_....,......_ot
Account an amoun~ equal to 2% of the revenues received
in the preceding calendar month, or such greater amount
as shall be recommended by the consulting engineer until
a balance is established, or reestablished therein equal
to l% of the depreciated book value of the land, general
plant and equipment which constitute a portion of the
enterprise, or such other balance as the consulting engi-
neer may recommend. The moneys contained in said Account
shall be used for transfer to the Bond Service Fund to
prevent default in payment of principal and interest on
the bonds or any parity bonds, or for extraordinary main-
tenance and repairs, renewals and replacements to the
system, but not for additions to or extensions of the
system. If at any time the balance in the R & R Account
exceeds the balance herein identified, said excess may
be transferred to the Revenue Account.
Section 19. E & I Account. Fifth, on or before
the twentieth (20th) day of each calendar month so long as
the bonds are outstanding, the Finance Director shall set
aside out of the Revenue Account into the E & I Account
such amounts as shall be deemed desirable by the City
Councilor appropriate city staff by appointment of the
City Council. The moneys contained in said Account shall
35
>,.'""".....;-'+",;..~.;.~..--.,~;,._......._~_.~
be used for transfer to the Bond Service Fund to prevent
default in payment of principal and interest on the bonds
or any parity bonds, or for extension and improvement of
the system.
All moneys remaining in the Revenue Account
after all transfers required hereunder have been made,
and all covenants contained herein have been duly per-
formed may be: (1) invested in any authorized invest-
ments; (2) transferred to the Redemption Fund to be used
for the redemption of any of said bonds which are subject
to call and redemption prior to maturity or for the purchase
from time to time in the open market of any outstanding
bonds whether or not subject to call and redemption (irre-
spective of the maturity or number of such bonds) at prices
and in such manner, either at public or private sale, or
otherwise, as the City in its discretion may determine,
but such purchase price (including brokerage and other
charg~s, but excluding accrued interest) shall not exceed
103% of the principal amount or the redemption price of
the callable bonds on the next redemption date, whichever
is less; or (3) used for any lawful purpose of the City.
36
_._-~'
Section 20. Investments. Except as hereinbe-
fore provided, obligations purchased as investments of
moneys in any of the funds in which investments are autho-
rized shall be deemed at all times to be a part of such
funds and any income realized from such investments shall
be credited to such funds and any losses resulting from
such investments shall be charged to such funds. The Fis-
_cal Agent or Treasurer, as the case may be~ shall sell at
the best price obtainable or present for redemption any
obligations so purchased whenever it may be necessary
to do so in order to provide moneys to meet any payment
or transfer from such funds. For the purpose of deter-
mining at any given time the balance in any such funds
any such investments constituting a part of such funds
shall be valued at the then estimated or appraised market
value of such investments. Moneys in all funds and accounts
described in Section l2 hereof shall be invested only
in authorized investments, subject to the provisions of
Cove~ant 12 of Section 22 hereof.
Section 2l. Warranty. The City shall preserve
and protect the secur i ty of. the bonds and the rights of
the bondholders and warrant and defend their rights against
all claims and demands of all persons.
37
""~-""''''''^'''''''''-'"--=-''''>';'->'
_._....~.<..-~..;----.....-..,.",~._..
Section 22. Covenants. So long as any of the
bonds issued hereunder are outstanding and unpaid, the
City makes the following covenants with the bondholders
under the provisions of Section 1210 of the City Charter
(to be performed by the City or its proper officers,
agents or employees) which covenants are necessary, con-
venient and desirable to secure the bonds and tend to
make them more marketable; provided, however, that said
covenants do not require the City to expend any funds
other than the revenues received or receivable from the
enterprise.
Covenant l. Punctual Payment. The City cove-
nants that it will duly and punctually payor cause to be
paid the principal of and interest on every bond issued
hereunder, together with the premium thereon, if any be
payable, on the date, at the place and in the manner men-
tioned in the bonds and coupons and in accordance with
this "resolution, and that the payments into the Bond Ser-
vice Fund, the Sinking Fund and the Reserve Fund will be
made, all in strict conformity with the terms of said
bonds and of this resolution, and that it will faithfully
observe and perform all of the conditions, covenants and
requirements of this resolution and all resolutions supple-
38
~=---~~~~-"" -._-_.=~,_...~- ,,,"~--~----~,~',,,,,,,,,,,,,,,,,*,,,,,,",_,,,,,_,,,,''',",,,.''-,"-~
mental thereto and of the bonds issued hereunder, and that
time of such payment and performance is of the essence of
the City's contract with the bondholders.
Covenant 2. Discharge Claims. The City cove-
nants that in order to fully preserve and protect the
priority and security of the bonds the City shall pay
from the Revenue Account and discharge all lawful claims
for labor, materials and supplies furnished for or in con-
nection with the enterprise which, if unpaid, may become
a lien or charge upon the property or revenues of the
enterprise prior or superior to the lien of the bonds
and impair the security of the bonds. The City shall
also pay from the Revenue Account all taxes and assess-
ments or other governmental charges lawfully levied or
assessed upon or in respect of the enterprise or upon
any part thereof or upon any of the revenues therefrom.
Covenant 3. Commence Acquisition and Construc-
tion. The City covenants that as soon as funds are avail-
able therefor, the City will commence the accomplishment
of the purposes for which the bonds are issued and will
continue the same to completion with all practicable dis-
patch and in an economical manner.
39
."',.,'....H-0.....__...._,.,,,O.-,......;""
Covenant 4. Operate_Enterprise in Efficient
and Economical Manner. The City covenants and agrees
to operate the enterprise in an efficient and economical
manner and to operate, maintain and preserve the enter-
prise in good repair and working order.
Covenant 5. Against Sale, Eminent Domain, Exist-
ing and Future Agreements, Competition. Except as provided
herein, the City covenants that the enterprise shall not be
mortgaged or otherwise encumbered, sold, leased, pledged,
any charge placed thereon, or disposed of as a whole or sub-
stantially as a whole unless such sale or other disposition
be so arranged as to provide for sums adequate to provide
for the immediate payment of the principal of and interest
on and premiums, if any, due upon the call and redemption
thereof, of the bonds, payment of which is required to be
made out of the net revenues of the enterprise. The City
further covenants that the net revenues from the enterprise
or any other funds pledged or otherwise made available to
secure payment of the principal of and interest on the
bonds shall not be mortgaged, encumbered, sold, leased,
pledged, any charge placed thereon, or disposed of or used
except as authorized by the terms of this resolution. The
City further covenants that it will not enter into any
40
'~''''''''''-'---~'''''''''-'''''=-~''~~'
agreement which impairs the operation of the enterprise
or any part of it necessary to secure adequate net revenues
to pay the principal and interest of the bonds or which
otherwise would impair the rights of the bondholders with
respect to the revenues of the operation of the enterprise.
If any substantial part of the enterprise is sold, the
paYment therefor shall either be used for the acquisition
and/or construction of improvements and extensions of the
enterprise or shall be placed in the appropriate funds
and shall be used to payor call and redeem said bonds
and any parity bonds in the manner provided in the resolu-
tion and any parity bond resolution.
The City covenants that any amounts received
as awards as a result of the taking of all or any part of
the enterprise by the lawful exercise of eminent domain,
if and to the extent that such right can be exercised
against such property of the City, shall either be used
for the acquisition and/or construction of improvements
and extension of the enterprise or shall be placed in
the appropriate funds and shall be used to payor call
and redeem said bonds and any parity bonds in the manner
provided in this resolution or any parity bond resolution.
41
_'""''''''''-'~'_'__''';'''____A'_.'''''''_"""""",__,_,~_",,,.,,,~~"""''''''''''"''''~","___''_'~
The City will not sell, lease or otherwise en-
cumber any part of the Water System except properties
or facilities no longer useful or necessary to its effi-
cient and economical operation, and it will not construct,
acquire, operate, permit or (to the extent permi~ted by
law) consent to any competing facilities (except that
it may permit or consent to private parties installing
their own agricultural or industrial water facilities)
within the City limits.
.Notwithstanding any other provisions contained
herein, the City may: (1) sell or dispose of customer
connections (and related distribution lines) located out-
side the City limits; (2) take all action necessary to
fulfill its commitments under its existing agreements with
Yorba Linda County Water District, and any subsequent
implemental agreements; and (3) enter into, and take all
actions necessary to fulfill its commitments under, con-
tractual agreements concerning water service to all or
part of any areas which are annexed to the City of Anaheim
after the sale and delivery of the Bonds, with parties
organized to provide water service to all or part of any
such area. Any proceeds from the sale or disposition
of any part of the Water System or the granting of any
42
--,~"-,-_.,.,~,.-..,,,,,,-,,,,,,,,,=,,--,;-,-,-",,,,,,--",,,.,,._.....,-..,,,,^~",'._"","",....,,-~,."~
service rights or privileges pursuant to the preceding
sentence shall be used to defray the cost of renewals,
replacements, additions and extensions to the Water Sys-
tem or shall be held for the redemption prior to maturity
or open market purchase of Bonds or Additional Bonds then
outstanding, but such purchase price (including brokerage
and other charges, but excluding accrued interest) shall
not exceed 104% of the principal amount or the redemption
price of the callable bonds on the last redemption date,
whichever is less.
Covenant 6. Insurance. The City covenants
that it shall at all times maintain with responsible in-
surers all such insurance on the enterprise as is custom-
arily maintained by similar utilities systems with respect
to works and properties of like character against accident
to, loss of or damage to such works or properties and
loss of revenues insurance. If any useful part of the
enterprise shall be damaged or destroyed, such part shall
be restored to use. The money collected from insurance
against accident to or destruction of the physical enter-
prise shall be used for repairing or rebuilding the damaged
or destroyed enterprise, and to the extent not so applied,
shall be applied to the retirement of said outstanding
43
._ ""'___,.',~.'d .' _.;<.,"
and unredeemed bonds and any parity bonds issued for the
enterprise and for such purpose paid into the appropriate
funds. The money collected from loss of revenues insurance
shall be deposited in the Revenue Account.
The City shall also maintain with responsible
insurers worker's compensation insurance and insurance
against public liability and property damage to the ex-
tent reasonably necessary to protect the City and the
bondholders.
Covenant 7. Records and Accounts. The City
covenants that it shall keep proper books of record and
accounts of the enterprise, separate from all other rec-
ords and accounts, in which complete and correct entries
shall be made of all transactions relating to the enter-
prise. Said books shall at all times be subject to the
inspection of the holders of not less than 10% of the
outstanding bonds or their representatives authorized
in writing.
The City covenants that it will cause the books
and accounts of the enterprise to be audited annually by
an independent certified public accountant or firm of
44
'.'r"'"~/"L~""'C_C_'''''''''''~_'''''",,_^'__'''''_''''_''_''''_'"_._._;._:"="~,"_"",,,_;,,,;",
certified public accountants and shall furnish a copy of
the audit report to the Fiscal Agent, and upon request,
to any bondholder.
The City covenants that it will cause the enter-
prise to be inspected annually by a Consulting Engineer
and shall furnish a copy of the Consulting Engineer's re-
port and recommendations to the Fiscal Agent, and upon
request to any bondholder.
Covenant 8. Collection of Charges. The City
will permit no free connections with, or use and services
of, the Water System except for the following: (l) public
fire hydrants; (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 Wate~ System
Revenue Fund from the City's General Fund (or other adequate
designated funds) for all City connections with, and use
and services of, the Water System except the foregoing. The
City will not grant or establish within any class of service
preferential or discriminatory rates, fees or charges for
connections with, or use and services of, the Water System
except as provided in the City's existing agreements with
45
,_,..,=<",_,-""_,..,.~",'O""__",=_","",_,_"_,,,,_~,..._.._,,,,.""_'""'_"""_,~_".~_~_.._
Yorba Linda County Water District and subsequent implemental
agreements. For the purposes of setting such rates, fees
and charges, connections located outside the city limits
of the City of Anaheim may be considered as separate classes
of service. The City covenants that it shall at all times
during the period any of the bonds are outstanding maintain
and enforce valid regulations for the payment of bills for
water service and that such regulations shall at all times
during such period provide that the City shall discontinue
water service to any user whose water bill has not been paid
within the time fixed by said regulations.
Covenant 9. Rates and Charges. The City shall
and hereby covenants that it shall prescribe, revise and
collect such charges for the services and facilities of
the enterprise which, after making allowances for contin-
gencies and error in the estimates, shall be at least suf-
ficient to pay the following amounts in the order set forth:
(a) All current expenses for the necessary
and reasonable maintenance and operation costs of
the enterprise as said expenses become due and pay-
able, and to maintain the M & 0 Account at the
level required by this resolution~
46
'_...-........,..._..,--......_~---..,_..._~_._"'~~---.."..
(b) The interest on and principal (including
Sinking Fund payments) of the outstanding bonds as
they become due and payable~
(c) All payments required for compliance with
this resolution including payments required to be
made into the Reserve Fund and the R & R Account;
(d) All payments required to meet any other
obligations of the City which are charges, liens,
encumbrances upon or payable from the revenues of
the enterprise;
and the charges shall be so fixed that the net revenues
shall be at least equal to the sum of 1.5 times the amounts
payable under (b).
Covenant 10. No Priority for Additional Bonds.
The City covenants that no additional bonds shall be issued
pursuant to said Section 1210 or any law of the State of
California having any priority in payment of principal or
interest out of the revenues of the enterprise over the
bonds hereby authorized to be issued and payable out of
said revenues.
47
Covenant 11. Limits on Additional Debt. Parity
bonds may be issued to finance or refinance any repairs,
improvements, enlargements or extensions of the enterprise
and to refund any bonds or parity bonds then outstanding,
provided that the City covenants that, except for bonds
issued to refund bonds or parity bonds, no additional
indebtedness evidenced by revenue bonds, revenue notes
or any other evidences of indebtedness payable out of
the revenue of the enterprise and ranking on a parity
with the bonds shall be created or incurred unless:
First: The City is not in default under the
terms of this resolution.
Second: The net revenues of the enterprise,
calculated on sound accounting principles, as shown
by the books of the City for each of the last two
completed fiscal years prior to the adoption of the
resolution of award of bids for such additional in-
debtedness as shown by an audit certificate or opin-
ion of an independent certified public accountant
or firm of certified public accountants employed
by the City, plus, at the option of the City, the
allowance for earnings hereinafter set forth in this
48
~____~""_"'"""_"'~""'__''''''''_____U'~_'''~'~,.".............."._..-.".._~"""'_"'_~"","".'.,..~~"__~_,_,",_",,,.,.;,,~~
covenant, shall have amounted to at least 1.5 times
the maximum annual debt service in any fiscal year
thereafter on all indebtedness to be outstanding im-
mediately subsequent to the incurring of such addi-
tional indebtedness.
For the purposes of this covenant, the net reve-
nues of the enterprise shall not include any sum transferred
from the Construction Fund under the provisions of this reso-
lution. The following may be added to such net revenues for
the purpose of applying the restriction contained in this
covenant:
An allowance for earnings arising from any in-
crease in the charges made for service from the en-
terprise which has become effective prior to the
incurring of such additional 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 amount by which the net revenues would
have been increased if such increase in charges had
been in effect during the whole of said last two com-
pleted fiscal years, as shown by the certificate or
opinion of independent certified public accountant
49
-'''''''"'"''''~''-'''''-'-'''''''''---"'''''''~-''''''"'''''''''-''"->>'''~'.~..'-'''''''~'"""'-'~-".-
or firm of certified public accountants employed by
the City.
Junior lien bonds (payable in whole or in part
from the net revenues of the enterprise) may be issued
to finance or refinance any repairs, enlargements, exten-
sions or improvements of the enterprise, but no revenues
of the enterprise may be used for the payment of such
junior lien bonds (interest, principal, redemption premium
or sinking fund installments) or the establishment or main-
tenance of any funds or accounts created in conjunction
with their issuance, unless and until: (1) the City has
complied fully with all provisions of the resolution and
has made all payments required to that time by the resolu-
tion; (2) the Reserve Fund contains an amount equal to
no less than the maximum combined annual principal and
interest requirements of all bonds and parity bonds then
outstanding.
Covenant 12. Arbitrage. The City covenants
that under no circumstances shall any initial investment,
subsequent investment or reinvestment of the proceeds
of the bonds be made in such a manner as to result in
the loss of exemption from federal income taxation of
so
.~...;_.<,,_..-."""< -~...<,-,..,"......"~,...",_._.,,,,,---..,,,"_.._.,.~- "" .,. -, .. -- .., ~.- ........--.--
interest on the bonds. Except as permitted during "tem-.
porary periods" (as such term is defined in the Income
Tax Regulations referred to herein) by said Income Tax
Regulations, the proceeds of the bonds shall not be in-
vested directly or indirectly in taxable obligations so
as to produce a yield which is materially higher than the
yield on the bonds which results in the bonds constitut-
ing'IIarbitrage bonds" within the meaning of Section 103(c),
Internal Revenue Code of 1954, as amended, and the Income
Tax Regulations issued thereunder~ but such sums may be
otherwise invested if and when such Code and any regula-
tions thereunder permit the investment to be made in the
manner made wihtout causing the bonds to become "arbitrage
bonds."
Section 23. Lost, Stolen, Destroyed or Mutilated
Bonds. In the event that any bond or any interest coupon
pertaining thereto is lost, stolen, destroyed or mutilated,
the City will cause to be issued a new bond or coupon sim-
ilar to the original to replace the same in such manner and
upon such reasonable terms and conditions, including the
payment of costs and the posting of a surety bond if the
City deems such surety bond necessary, as may from time to
time be determined and prescribed by resolution. The City
51
_........,._.,_........~...^~--~~...~ ._,.-<"..-."-._".......,""I"._....,...-=,.,.,.,~-,y._,,,..._"'......
may authorize such new bond or coupon or coupons to be
signed and authenticated in such manner as it determines
in said resolution.
Section 24. Cancellation of Bonds. All bonds
and coupons surrendered to the Treasurer, the Fiscal Agent
or any paying agent of the City for payment upon maturity
or for redemption shall upon payment therefor be canceled
immediately. Any bonds purchased by the City as authorized
herein together with all unpaid coupons pertaining thereto
shall be canceled forthwith and shall not be reissued.
Section 25. Consent of Bondholders. The con-
sents of bondholders provided for in this section shall
relate solely to the amendment, waiver or modification of
the covenants specified in Section 22 hereof and shall
not be effective to waive or modify any other provisions
of this resolution or any other proceedings for the issu-
ance ~f the bonds. Any act relating to the amendment,
waiver or modification of any of the said covenants con-
sented to by bondholders holding 66-2/3% in aggregate
principal amount of the outstanding bonds, exclusive of
bonds, if any, owned by the City, shall be binding upon
the holders of all of the bonds and interest coupons,
52
---"'''''~'''''--"'''''_.".,..' "'-"""""'-=~"-"'-'~-"'~-~"""~'- ' ..
whether such coupons be attached to bonds or detached
therefrom, and shall not be deemed an infringement of any
of the provisions of this resolution, whatever the charac-
ter of such act may be, and may be done and performed as
fully and freely as if expressly permitted by the terms
of this resolution, and after such consent relating to
such specified matters has been given, no bondholder or
holder of any interest coupon, whether attached to a bond
or detached therefrom, shall have any right or interest
to object to such action or in any manner to question
the propriety thereof or to enjoin or restrain the City
or any officer thereof from taking any action pursuant
thereto.
Bondholders may consent by affirmative vote
at a bondholders' meeting or may consent in writing with-
out a meeting, all as hereinafter provided.
No such amendment, waiver or modification shall
be made which will permit (a) a change in the maturity or
term of redemption of the principal of any bond or any
installment of interest thereon; (b) a reduction in the
principal amount of or redemption price or redemption
premium or rate of interest upon any bond without the
53
._"'",,"-',".""""'_-""_C'~"_-'^""'_"'_'~"'_"""~''"':'c_'''''_''''''''L_''",...,_"",_.~,"~_'~
consent of the holder of such bond; or (c) a reduction
of the percentage of the principal amount of bonds the
I
vote or consent of which is required to effect any such
amendment.
(a) Calling Bondholders' Meeting. If the City
shall desire to obtain any such consent, it may call a
meeting of bondholders, by resolution, for the purpose of
considering the action, the consent to which is desired.
(b) Notice of Meeting. Notice specifying the
purpose, place, date and hour of such meeting shall
be published once in a financial newspaper or journal
of national circulation published in the City of New
York, New York, not less than sixty (60) days and not
more than ninety (90) days prior to the date fixed
for the meeting. Such notice shall set forth the
nature of the proposed action, consent to which is
desired. If any of -the bonds shall be so registered
as to be payable otherwise than to bearer, the City
Clerk of the City shall, on or before the publication
of such notice, mail a similar notice, postage pre-
paid, to the respective registered owners thereof
at their addresses appearing on the bond registry
54
"-"~,,,,,,,_,,-,,-,,,,,,,,,---,,,_,_'''''--~'--'''''''._._",,,-~.,_<,_"'_"'c'"'_~"_.'''''''_~"''''''''''''''';''____"""",,,,,_''''''''''''''''-'''''_'''''M
books. The place, date and hour of holding such meet-
ing and the date or dates of publishing and mailing
such notice shall be determined by the City, in its
discretion.
The actual receipt by any bondholder of notice
of any such meeting shall not be a condition prece-
dent to the holding of such meeting, and failure to
receive such notice shall not affect the validity
of the proceedings thereat. A certificate by said
City Clerk, approved by resolution of the City Coun-
cil that the meeting has been called and that notice
thereof has been given as herein provided shall be
conclusive as against all parties and it shall not
be open to any bondholder to show that he failed to
receive notice of such meeting.
(c) Voting Qualifications. Any bondholder
may, prior to any such meeting, deliver his bond
or bonds to any agency designated by the City for
the purpose, and shall thereupon be entitled to re-
ceive an appropriate receipt for the bond or bonds
so deposited, calling for the redelivery of such
bond or bonds at any time after the meeting. The
55
'-.....-..... ... ..~,...~.__...~. ~"'-' "-"-=-"""'~""_' "_",,,,--,,,,,__-,.,.._,,-,. .,<~~~"_.,._~.._...,.",,.....,,_~.,-,__..,.,_"t.",.~~,..#=~ "_'_"'_""_-
Treasurer shall prepare and deliver to the chairman
of the meeting a list of the names and addresses of
the registered owners of bonds, with a statement of
the maturities and serial numbers of the bonds held
and deposited by each of such bondholders, and no
bondholder shall be entitled to vote at such meeting
unless his name appears upon such list or unless he
shall present his bond or bonds at the meeting or a
certificate of deposit thereof, satisfactory to the
City, executed by a bank or trust company. No bond-
holders shall be permitted to vote with respect to
a larger aggregate principal amount of bonds than
is set against his name on such list, unless he shall
produce the bonds upon which he desires to vote,
or a certificate of deposit thereof as above provided.
(d) Issuer-owned Bonds. The City covenants
that it will present at the meeting a certificate,
signed and verified by one member of the City Coun-
cil and by the Treasurer stating the maturities and
serial numbers of all bonds owned by, or held for
account of, the City, directly or indirectly. No
person shall be permitted at the meeting to vote
or consent with respect to any bond appearing upon
56
""",--~~,.~_=-c"=..,__--......-_.~~<__
such certificate, or any bond which it shall be es-
tablished at or prior to the meeting is owned by
the City, directly or indirectly, and no such bond
(in this resolution referred to as "issuer-owned
bonds") shall be counted in determining whether a
quorum is present at the meeting.
(e) Quorum and Procedure. A representation
of at least 66-2/3% in aggregate principal amount
of the bonds then outstanding (exclusive of issuer-
owned bonds) shall be necessary to constitute a
quorum at any meeting of bondholders, but less than
a quorum may adjourn the meeting form time to time,
and the meeting may be held as so adjourned without
further notice, whether such adjournment shall have
been had by a quorum or by less than a quorum. The
City shall, by an instrument in writing, appoint a
temporary chairman of the meeting, and the meeting
shall be organized by the election of a permanent
chairman and a secretary. At any meeting each bond-
holder shall be entitled to one vote for every $5,000
principal amount of bonds with respect to which he
shall be entitled to vote as aforesaid, and such vote
may be given in person or by proxy duly appointed by
57
~~~"'="""""'--""""'-"";~''''~'-'-"-=-''''''''''''''''-~'''''--~_____"_'_"_"_""O'~_~__
an instrument in writing presented at the meeting.
The City, by its duly authorized representative, may
attend any meeting of the bondholders, but shall not
be required to do so.
(f) Vote Required. At any such meeting held
as aforesaid, there shall be submitted for the considera-
tion and action of the bondholders a statement of proposed
action, consent to which is desired, and if such action
shall be consented to and approved by bondholders holding
at least 66-2/3% in aggregate amount of the bonds then
outstanding (exclusive of issuer-owned bonds) the chair-
man and secretary of the meeting shall so certify in writ-
ing to the City, and such certificate shall constitute
complete evidence of consent of bondholders under the pro-
visions of this resolution. A certificate signed and veri-
fied by the chairman and the secretary of any such meeting
shall be conclusive evidence and the only competent evidence
of matters stated in such certificate relating to proceed-
ings taken at such meeting.
(g) Written Consent of Bondholders. If the
City shall desire to obtain any such consent in writ-
ing, without a meeting of bondholders, the City Coun-
58
-~'"''''''''''''''--~'''"- """_.>-.~' """'-"_""_'''''_~''~=.~W''~'''-'''''''_______''_''''' _~~,,_"""""'""'__.,...
cil may, by resolution, propose the action, to which
consent is desired. A copy of such resolution, to-
gether with a request to bondholders for their con-
sent to the action proposed therein, shall be published
once in a financial newspaper or journal of national
circulation published in the City of New York, New
York. If any of the bonds shall be so registered as
to be payable otherwise than to bearer, the City
Clerk of the' City shall, on or before the publica-
tion of such resolution and request, mail a copy
thereof to each registered owner at the address ap-
pearing on the bond registry books.
The actual receipt by any bondholder of such
resolution and request shall not affect the validity
of the proceedings for the obtaining of such consent.
A certificate by said City Clerk, approved by resolu-
tion of the City Council, that said resolution and
request has been published and mailed as herein pro-
vided shall be conclusive as against all parties,
and it shall not be open to any bondholder to show
that he failed to receive such resolution and con-
sent.
59
-_.~~.-'-"""""'~"~'-'-""'" ....,._..,.., .-._--,.,.=~ -, -""'"",,"''<'^'--' "-,,,,"""-'"
Each written consent shall be accompanied by
proof of ownership of the bonds for which such con-
sent is given. Proof of ownership shall be made in
such manner as shall be prescribed by the resolution
proposing the action. Any such written consent shall
be binding upon the holder of the bonds giving such
consent and on any subsequent holder (whether or not
such subsequent holder has notice thereof) unless
such consent is revoked in writing by the holder giv-
ing such consent or by the subsequent holder. To be
effective, any revocation of consent must be filed
before the adoption of the resolution accepting con-
sents as hereinafter provided.
After the holders of at least 66-2/3% in aggre-
gate principal amount of the bonds then outstanding
(exclusive of issuer-owned bonds) shall have consented
in writing, the City Council shall adopt a resolution
accepting such consents and such resolution shall con-
stitute complete evidence of the consent of bondhold-
ers under this resolution.
60
-<--~....-- ..-
1',_"",-,"_~,,,,,~~,,,,--,,
(h) Publication of Consent. Notice specifying
the amendment, waiver or modification that has received
the consent of bondholders as required by this section
shall be published once in a financial newspaper or
journal of national circulation published in the
City of New York, New York, not less than sixty (60)
days following the final action in the proceedings
for the obtaining of such consent. Such notice is
only for the information of bondholders, and failure
to publish such notice or any defect therein shall
not affect the validity of the proceedings thereto-
fore taken in the obtaining of such consent.
Section 26. Bond and Coupon Forms. Said bonds
shall be payable to bearer, shall be issued in negotiable
form, and shall be negotiable, and the form of said bonds
and interest coupons thereof shall be substantially as fol-
lows:
61
~"""--"","'-,"".~_:,~~.-
UNITED STATES OF AMERICA
STATE OF CALIFORNIA
COUNTY OF ORANGE
CITY OF ANAHEIM
WATER REVENUE BOND, 1980 SERIES
No. ..............
$5,000
THE CITY OF ANAHEIM, a municipal corporation 10-
cated in the County of Orange, State of California, FOR
VALUE RECEIVED, hereby promises to pay, solely from the
Water System Revenue Account, as hereinafter provided,
to the bearer, on July 1, ...., upon presentation and
surrender of this bond, the sum of FIVE THOUSAND DOLLARS,
with interest thereon at the rate of ...% per annum, pay-
able semiannually on the first days of January and July
of each and every year from the date hereof until this
bond is paid, upon presentation and surrender of the re-
spective interest coupons hereto attached; provided, how-
ever, that if at the maturity date of this bond or, if
the same is redeemable and shall be duly called for re-
demption, then at the date fixed for redemption, funds
are available for the payment or redemption thereof, as
provided in the resolution hereinafter mentioned, this
bond shall then cease to bear interest. Both principal
and interest are payable in lawful money of the United
62
.~-"cc_.._.__;_;.~
- '-'~""""'''-''.^"",,.;....., -.._""."....._~" _.".._--"...""....,...."-~;,.,"'.........,..."'+.,~_."-"""'"",,..,;,..-~...,._._,~--=---~
States of America, at the office of the Treasurer of the
City of Anaheim in Anaheim, California, or, at the option
of the holder, at the corporate agency division of Bank
of America NT&SA in Los Angeles, California, or at any
paying agent of the City in San Francisco, California,
Chicago, Illinois, or New York, New York.
This is one of a dUly authorized issue of bonds
of the City designated "Water Revenue Bonds, 1980 Series,"
hereinafter called "the bonds," all of which have been
issued pursuant to Section 1210 of the City Charter of
the City of Anaheim and Ordinance No. 2933 of said City,
for the purpose of the acquisition, construction and fi-
nancing of water facilities for said City and the crea-
tion of said issue and the terms and conditions of the
bonds are provided for by the resolution of the City Coun-
cil of said City authorizing the bonds adopted February 26,
1980, designated Resolution No. 80R-75, and this reference
incorporates said resolution and said ordinance, and by
acceptance hereof the holder of this bond and the coupons
hereto attached assents to said terms and conditions.
Said resolution is adopted under, and this bond and the
interest coupons hereto attached are issued under and
63
"~--_..,_.,"-,'_._- ...
are to be construed in accordance with said Charter, said
ordinance and the laws of the State of California.
This bond and the interest hereon and any premium
upon the redemption hereof are not a debt of the City of
Anaheim, nor a legal or equitable pledge, charge, lien or
encumbrance upon any of its property or upon any of its
income, receipts, or revenues except the net revenues of
the enterprise (as defined in said resolution) pledged to
its payment, and the principal of and the interest on
this bond and any premium upon the redemption hereof are
payable solely from the net revenues of the enterprise
pledged to its payment and said City is not obligated
to pay such principal, interest and premium except from
said net revenues. The Water System Revenue Account is
established under and pursuant to said Section 1210 of
the City Charter and said Ordinance No. 2933, and under
the provisions of said resolution authorizing the issu-
ance of this bond the revenues received from the enter-
prise are required to be deposited to the credit of said
Water System Revenue Account and used only for the pur-
poses authorized by said resolution, including the pay-
ment of principal and interest of the series of bonds of
which this is one.
64
_",."..,_-.;"",._ "~''''';'_W'''____~''''''''''_ ._'-"...............'"___..,""""'''''''~
By the terms of said Section 1210 of the City
Charter and said Ordinance No. 2933 and by covenant ex-
pressed in said resolution, the City is obligated to pre-
scribe, revise and collect charges for the services and
facilities of the water system of the City such as to
provide revenues sufficient to pay the interest on and
principal of the bonds as they become due and payable
in addition to all other payments required for compliance
with said resolution and the necessary and reasonable main-
tenance and operation costs of the water system, is prohib-
ited from issuing bonds having any priority with respect
to payment from the revenues of the enterprise, and is sub-
ject to conditions with respect to any sale of said water
system. In the manner provided in said resolution, any or
all of the obligations referred to in this paragraph and
certain other obligations mentioned in said resolution
may be waived with the consent of the holders of 66-2/3%
in aggregate principal amount of the outstanding bonds,
exclusive of issuer-owned bonds.
This bond is callable and redeemable prior to
maturity in accordance with the provisions for redemption
endorsed hereon.
65
~~"",,,,,,,,,,,,,,,,,,,,,,,-,,,,,,,",,-,;;;,-,,,----._,.._,,,,,,._,.,._..,.,,,,,~~~ ...~
This bond and the coupons hereto attached are
negotiable instruments and shall be negotiable by deliv-
ery. This bond may be registered only as to both princi-
pal and interest, in accordance with the provisions for
registration endorsed hereon.
It is hereby certified and recited that any
and all acts, conditions and things required to exist,
to happen and to be performed precedent to and in the
incurring of the indebtedness evidenced by this bond and
in issuance of this bond exist, have happened, and have
been performed in due time, form and manner as required
by the Constitution and laws of the State of California
and the City Charter of the City of Anaheim and that this
bond, together with all other indebtedness of the City
pertaining to the aforesaid water system, is within every
debt and other limit prescribed by the Constitution and
laws of the State of California and said Charter.
66
-"~,~--,,. ~"""",-"_,,,_;;_",,;__,,,,,,_=O~'",". .."'."....._~.__...,_..-,._--.-..;"."',';o...*.,.~ """"__"-"'-"'"'_""_'.,"'_"'.>L-=-',"",,~'~
""'--"~"'-'""--'
IN WITNESS WHEREOF, said City of Anaheim has
caused this bond to be signed by the Mayor and the City
Treasurer of said City by their facsimile signatures,
countersigned by the City Clerk of said City, and sealed
with the corporate seal of said City, and the interest
coupons hereto attached to be signed by the City Treasurer
by his facsimile signature, and has caused this bond to
be dated January 1, 1980.
COUNTERSIGNED:
Mayor of the
City of Anaheim, California
City Clerk of the
City of Anaheim, California
City Treasurer of the
City of Anaheim, California
(SEAL)
67
.'-'-"',,*,_0"'-""'-""""'--"_"_"""'-____"_-'='>___''''''''-''''''''0__
(COUPON FORM)
On the first day of
THE CITY OF ANAHEIM, CALIFORNIA, will pay to
the bearer, at the office of the Treasurer of
the City of Anaheim in Anaheim, California,
or, at the option of the holder, at the corpo-
rate agency division of Bank of America NT&SA,
Fiscal Agent for the City, in Los Angeles,
California, or at any paying agent of the
City of San Francisco, California, Chicago,
Illinois, or New York, New York, out of the
Water System Revenue Account of said City
and not out of any other fund or moneys of
the City, the sum of
in lawful money of the United States of
America, being the interest then due on
WATER REVENUE BOND, 1980 SERIES,
NO.
dated January 1, 1980, subject
to the provisions on the reverse
hereof.
. . . . . .. 19..
. . . . . . . . . . . .
$ ............
. . . . . . . . . . . .
City Treasurer of the
City of Anaheim, California
On the reverse side of the coupon, there shall
be printed substantially the following:
(REVERSE OF COUPON)
If the bond to which this coupon is attached
is redeemable and is duly called for redemption on a date
prior to the maturity date of this coupon, this coupon
will be void.
68
-._'.,""..'''.-'''._''--_.._..,-._---.~,--~.......--....._.,---''''
PROVISIONS FOR REDEMPTION
Unless this bond matures on or .prior to JUly 1,
1986, it is redeemable in the manner and subject to the
terms and provisions, and with the effect, set forth in
the resolution referred to on the face of this bond, at
the option of the City, on July 1, 1986, or on any inter-
est payment date thereafter prior to maturity, upon at
least 30 days' prior notice published in a newspaper cir-
culated in the County of Los Angeles, California, and
in a financial newspaper or journal of national circula-
tion published in the City of New York, New York, and,
if this bond is registered, upon the mailing of a similar
notice to the registered owner hereof, at a redemption
price for each redeemable bond expressed in the follow-
ing schedule as a percentage of par value, plus accrued
interest to the date of redemption, as follows:
R€demption Period Redemption
(Dates Inclusive) Price
July 1, 1986 to June 30, 1989 . . . . . . . . . . . . . . 103%
JUly 1, 1989 to June 30, 1992 . . . . . . . . . . . . . . 102%
July 1, 1992 to June 30, 1995 . . . . . . . . . . . . . . 101%
July 1, 1995 and thereafter . . . . . . . . . . . . . . . . 100%
69
~"-""".'-"'~<---.#I""--"'''''-'-''''''-'---'----"'''"'~-''--'''' ~_
P~OVISIONS FOR REGISTRATION
This bond may be registered in the name of any
person as the registered owner hereof only as to both
principal and interest, and may be transferred or dis-
charged from registration.
Each registration, transfer after registration,
or discharge from registration of this bond shall be en-
tered by the Fiscal Agent in books kept by it for the
purpose and noted by it in the registration blank below.
Upon registration, all unmatured coupons pertaining here-
to shall be surrendered to and preserved by the Fiscal
Agent.
So long as this bond is registered, no transfer
hereof shall be valid for any purpose unless made by the
registered owner and entered and noted as herein provided,
and th~ principal hereof and any redemption premium shall
be payable only to the registered owner, or to his order.
Interest on this bond shall be payable to the person whose
name appears on the registry books as the registered owner
hereof at the close of business on the tenth day preceding
the interest paYment date, or to his order. If this bond
70
" __ "'.- _'_"_"'_>,"0~.',.._, '''''__~o''....' """"-""",,,.., "'._...~. ..,~.,--.~.".,;.,.......'''''_..~.=.-","-.h.~''''_.".~...'.='''"'~.'i _...,'""',....""". ...,_.. "'. .... ,
is registered and it is discharged from registration,
there shall be attached hereto coupons representing inter-
est hereon to become due thereafter to the date of matu-
rity hereof. If requested by the registered owner, in
lieu thereof, and upon surrender and cancellation thereof,
the Fiscal Agent may issue in exchange therefor a new
bond, with such coupons attached, identical with this
bond except for the previous notations on the registra-
tion blank hereon, and except that the signatures on the
new bond shall be those of the persons holding the offices
at the time of affixing such signatures. The issuance of
any such new bond or new coupons shall be at the expense of
the registered owner.
Each discharge hereof from registration shall
be effected by an entry on the registry books, and a nota-
tion in the blank below, that this bond is payable to
bearer, whereupon this bond shall become an unregister~d
bearer. instrument, negotiable by delivery as if it had
never been registered. Each request for registration,
transfer or discharge must be in form satisfactory to the
Fiscal Agent and must be made in writing, signed by the reg-
istered owner, or by his agent duly authorized in writing,
or by the bearer, as the case may be.
7l
~,_=",'~OW;'''''''''">'''''''~'''"''''_'~'''_'__~~'
Date of
Registration
In Whose Name
Registered
Signature of
Fiscal Agent
. . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . .
Section 27. Proceedings Constitute Contract. The
provisions of this resolution and of the resolutions provid-
ing for the sale of the bonds and awarding the bonds shall
constitute a contract between the City and the bondholders
and the provisions thereof shall be enforceable by any bond-
holder for the equal benefit and protection of all bondholders
similarly situated by mandamus, accounting, mandatory injunc-
tion or any other suit, action or proceeding at law or in
equity that is now or may hereafter be authorized under the
laws of the State of California in any court of competent
jurisdiction. Said contract is made under and is to be con-
strued- in accordance wi th the laws of the State of Califor-
nia.
No remedy conferred hereby upon any bondholder
is intended to be exclusive of any other remedy, but each
72
-'-_._"'..-r
such remedy is cumulative and in addition to every other
remedy and may be exercised without exhausting and without
regard to any other remedy conferred by the City Charter,
Ordinance No. 2933 or any law of the State of California.
No waiver of any default or breach of duty or contract
by any bondholder shall affect any subsequent default or
breach of duty or contract or shall impair any rights
or remedies on said subsequent default or breach. No
delay or omission of any bondholder to exercise any right
or power accruing upon any default shall imp a i r any such
right or power or shall be construed as a waiver of any
such default or acquiescence therein. Every substantive
right and every remedy conferred upon the bondholders may
be enforced and exercised as often as may be deemed expe-
dient. In case any suit, action or proceeding to enforce
any right or exercise any remedy shall be brought or taken
and. the bondholder shall prevail, said bondholder shall be
entitled to receive from the Revenue Account reimbursement
for re~sonable costs, expenses, outlays and attorneys' fees
and should said suit, action or proceeding be abandoned,
or be determined adversely to the bondholders then, and
in every such case, the City and the bondholder shall be
restored to their former positions, rights and remedies as
73
-""-----..--.-~""""'~"_.-..,"'.o_~""""_"";p____'___~.,~.-____J>-.. .
,
if such suit, action or proceeding had not been brought or
taken.
After the issuance and delivery of the bonds,
this resolution shall be irrepealable, but shall be sub-
ject to modification to the extent and in the manner pro-
vided in this resolution, but to no greater extent and
in no other manner.
Section 28. Future Contracts. Nothing herein
contained shall be deemed to restrict or prohibit the City
from making contracts or creating bonded or other indebt-
edness payable from the general fund of the City or from
taxes or any source other than the revenues of the enter-
prise as defined herein, and from and after the sale of
the bonds the general fund of the City shall not include
the revenues of the enterprise and no contract or other
obligation payable from the general fund of the City shall
be payable form the revenues of the enterprise, except as
provided herein.
Section 29. Severability. If any covenant,
agreement or provision, or any portion thereof, contained
in this resolution, or the application thereof to any person
74
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or circumstance, is held to be unconstitutional, invalid
or unenforceable, the remainder of this resolution and
the application of any such covenant, agreement or provi-
sion, or portion thereof, to other persons or circumstances,
shall be deemed severable and shall not be affected there-
by, and this resolution and the bonds issued pursuant here-
to shall remain valid and the bondholders shall retain all
valid rights and benefits accorded to them under this reso-
lution and the Constitution and laws of the State of Cali-
fornia. If the provisions relating to the appointment and
duties of a Fiscal Agent are held to be unconstitutional,
invalid or unenforceable, said duties shall be performed
by the Finance Director or the Treasurer.
Section 30. Effective Date. This resolution
shall take effect upon adoption.
ADOPTED, SIGNED AND APPROVED this 26th day
of February, 1980.
ATTEST:
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.~ City C er
75
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, LINDA D. ROBERTS, City Clerk of the City of Anaheim, do hereby certify that
the foregoing Resolution No. 80R-75 was introduced and adopted at a regular
meeting provided by law, of the City Council of the City of Anaheim held on
the 26th day of February, 1980, by the following vote of the members thereof:
AYES: COUNCIL MEMBERS: Overholt, Kaywood, Bay, Roth and Seymour
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
AND I FURTHER CERTIFY that the Mayor of the City of Anaheim signed said
Resolution No. 80R-75 on the 26th day of February, 1980.
IN !)iTNESS W"dERE:OF, I have hereunto set my hand and affixed the seal of the
City of Anaheim this 26th day of February, 1980.
c-~. ./20~
CITY CL~RK OF THE CITY OF ANAHEIM
(SEAL)
I, LINDA D. ROBERTS, City Clerk of the City of Anaheim, do hereby certify that
the foregoing is the original of Resolution No. 80R-75 duly passed and adopted
by the Anaheim City Council on February 26, 1980.
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. CI TY CLERK
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