71R-233
. ...-.-. - .'-. .........-...... .----...---..~~..~....-....--...,........ . r............... .____._..-.----.- ...____.......--.-.,..
---..
--
...........
.
CITY OF ANAHEIM
RESOLUTION NO. .1t...(L-::..i?.3' 3
RESOLUTION OF THE CITY COUNCR. OF THE CITY OF ANAHEIM, CALIFORNIA,
AUTHORIZING THE ISSUANCE OF $2,000,000 WATER REVENUE BONDS OF SAID
CITY AND PROVIDING THE TERMS AND CONDITIONS FOR TIlE 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 revenues as may be specified in such bonds may be
issued when the City Council by ordinance shall have established 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
holders of any such bonds payable only from revenues and which shall not constitute a general
obIigation 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 fund 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 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 accom-
plished. "
WHEREAS, pursuant to said Section 1210 of said Charter, and Ordinance No. 2574 of the City
Council of the City of Anaheim, a special municipal election was held in said City on November 5, 1968
for the purpose of submitting to the qualified voters of said City the proposition of issuing water revenue
bonds in the amount of $2,000,000, pursuant to the provisions of said Section 1210, for the following
purposes, to wit:
"To acquire, construct and finance additions to and improvements of the works of the City for
supplying the City and its inhabitants with water, shall the City of Anaheim issue water revenue
bonds in the principal amount of two million dollars?"
WHEREAS, said proposition was approved by the votes of more than a majority of all the voters
voting on said proposition at said special municipal election; whereas Ordinance No. -..6.?.~J. of the
City Council of the City of Anaheim incorporating certain sections of the Revenue Bond Act of 1941
(Chapter 6, Part 1, Division 2, Title 5 of the Government Code of the State of California) establishes a
procedure for the issuance of such bonds as provided for in said Section 1210; and
WHEREAS, said City is now authorized to issue said bonds by this Resolution and pursuant to the
procedures set forth in said Ordinance No. 2~:$.._~__., and as provided in said Section 1210; and
1
WHEREAS, this City Council deems it necessary to issue and sell $2,000,000 principal amount of
said bonds at this time, designated "Water Revenue Series 1971 Bonds";
NOW, THEREFORE, the Council of the City of Anaheim, California, DOES ORDAIN as follows:
'\
Section 1. Definitions. As used in this resolution the following terms shall have the following
meanings:
(a) "City" means the City of Anaheim, California.
(b) "City Council" or "Council" means the City Council of said City.
(c) "Treasurer" means the City Treasurer of said City.
(d) "Revenue Bond Law" means the Revenue Bond Law of 1941 as cited in the recitals
hereof.
(e) "The bonds" or "said bonds" means the bonds authorized by this resolutioll.
(f) "Enterprise" means the following:
"The water enterprise referred to in Section 4 herein is defined to be the entire waterworks
system of the City of Anaheim, together with all additions to, improvements and extensions of
said system later acquired or constructed, including all additions to, improvements and exten-
sions of said system made with funds derived from the sale of the water revenue bonds herein
proposed to be issued" (sometimes hereinafter referred to as Water System).
(g) "Net revenues" of the enterprise means the amount of the gross revenues of the enter-
prise less the operating expenses of the enterprise.
(h) "Operating expenses" of the enterprise means the reasonable and necessary current
expenses of maintaining, repairing and operating the enterprise, 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).
(i) "Maximum annual debt service" shall be the maximum sum obtained for any fiscal year of
computatign, or any fiscal year thereafter by totaling the following for such fiscal year:
( 1) The principal amount of all outstanding serial bonds of this issue and any parity
serial bonds payable in such fiscal year;
(2) The minimum principal amount of all outstanding term bonds of this issue and
any parity term bonds scheduled to be called and redeemed in such fiscal year, together
with the premium thereon, if any be payable; an~
(3) The interest which would be due during such fiscal year on the aggregate principal
amount of bonds which would be outstanding in such fiscal year if the bonds are retired as
scheduled, but deducting and excluding from such aggregate amount the amount of bonds
already retired.
(j) "Parity bonds" means revenue bonds, revenue notes or other similar evidences of
indebtedness issued for the acquisition, construction and financing of extensions of, additions
to, repairs and replacements to, renewals of, and improvements of the enterprise, payable out of
the revenues derived from the enterprise and which, as provided in this resolution, rank: on a
parity with the bonds of this issue.
(k) "Revenues" of the enterprise means rates, fees and charges for providing water service to
persons and real property (including connection fees) and all other fees, rents and charges and
other income derived by the City, from the ownership, operation, use or services of the enterprise.
2
)
(1) "Subsequent resolution" means any resolution of issuance for any parity bonds.
(m) "Fiscal year" means the year period beginning on July 1 and ending on the next following
June 30.
(n) "Authorized investments" means direct obligations of or obligations guaranteed by the
United States of America, or Certificates of Deposit of recognized banks or trust companies fully
secured by direct obligations of or obligations guaranteed by the United States of America.
(0) "Consulting engineer" means a qualified independent consulting engineer to be employed
by City.
Section 2. Equality of Bonds, Pledge of ReveDDes. Pursuant to said Section 1210 of the City
Charter, said Ordinance No. .__.un and this resolution, the bonds shall be equally secured by a pledge,
charge and lien upon the net revenues of the enterprise without priority for number, date of bonds, date of
sale, date of execution, or date of delivery, and the payment of the mterest 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 subsequent resolution, and shall be held in trust for the benefit of the bond-
holders and shall be applied pursuant to this resolution, or to this resolution as modified pursuant to
provisions herein, and any subsequent resolution.
Nothing in this resolution shall preclude: (a) the redemption prior to maturity of any bonds
subject to call and redemption and payment of said bonds from proceeds of refunding bonds issued
under said Section 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 payable
out of the revenues of the enterprise and ranking on a parity with said bonds.
Any bond for the payment and discharge of which upon or prior to maturity, or upon redemption
prior to maturity, provision has been made through the setting apart in the Water System Revenue Bond
and Interest Fund or the Redemption Fund or in a special trust fund or account created pursuant to
this resolution to insure the payment or redemption 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 sufficient therefor, shall be deemed to be no longer outstanding and unpaid within the meaning
of any provision of this resolution.
Section 3. Amount, Issuance, Purpose and Nature of Bonds. Under and pursuant to said
Section 1210, revenue bonds of the City in the amount of $2,000,000 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 enterprise, such net revenues being
hereby pledged, charged and assigned for the security of the Bonds.
Section 4. No General City Liability. The general fund of the City is not liable for the payment
of the bonds or their interest, nor is the credit or taxing power of the Oty 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 redemption of any thereof are not a debt of the Oty nor a legal or
3
J\dditionillly, the bonds ~h;'l' 1 ho ,l^.onuu.' ....~ h.n ""',... ,----- ___.L_~____'
. I
-
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 said Revenue Bond Law, pledged to the payment of said bonds and interest.
)
1
Section 5. Description of Bonds. The bonds shall be in the principal sum of $2,000,000. The
bonds shall all be in the denomination of $5,000, and shall be 400 in number. numbered 1 to 400,
inclusive. The bonds shall be designated WATER REVENUE SERIES 1971 BONDS, shall be dated
July 1, 1971, and shall be payable in consecutive numerical order on July 1 in each year of maturity
in the amounts for each of the several years as follows:
Year
PrIDdpeI
AmODD.t
PrineIpaI
AmODDt
Year
1972.....................n _....._..
1973..... .___............. _.........
1974........_......._........__.....
197 S....................---...--.---
1976___..._____ __._.__..... .........
1977.............................__.
1978................................
1979................................
1980................. ............._.
1981................................
$ ~ SS,C {\ ('> 1982oooooo..oooo.oounoo_u_oo.oo..
'01000 (t 0, OC'"(l 1983....oo.......oo...oo.noooooooo.
6Q,QQO C( ~t C (' D 1984....oo.....oooo.oo.oonoooo.oo..
'fi',9QQ 100. fJ lJ(>l 1985..........oo....oo..............
~ ,( 0, Doc..' 1986..........................__....
111000 i' ~ ,OC(, IPR1.........................__.......
~ I~O, l)OOlPRK... ...... .... ...................
a.g,ggg. I 30. OtJL" 1PiP 00.....00........00.____00
ii,QQQ /3~, ()bt' IPPO ...........__....................
~ Iq~ O{!() 1001
$ 9S,999 ICjC;;,oe(l
185,888 ; u 6, DC l~
118,998 ,.7 ~', Cl..' (. \
116,999 I ~ ~,()C)("'
136,999 f q s., CC(~
139,899
110,99Q
116,888
I€C,8B8
"'1001
Section 6. Interest. Said bonds shall bear interest at a rate or rates to be hereafter fixed by
resolution or resolutions, but not to exceed six per cent (6%) per annum, payable 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 du1y called for redemption, funds are available for the payment or redemp-
tion 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 main offices of Bank of America National Trust and Savings Association, in Los Angeles, or at any
paying agent of the City in San Francisco, California, Chicago, Illinois, or in New York, New York.
Section 7. Execution of Bonds. The Mayor of the Oty and the Treasurer are hereby authorized
and directed to sign all of the bonds by their printed, lithographed or engraved facsimile signatures,
. and the Oty 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 in the manner and with the effect set forth
in the provisions for registration contained in the form of bond set forth herein.
Section 9. Redemption of Bonds. The bonds maturing on or prior to July 1, 1981, are not
subject to call or redemption prior to maturity. The bonds maturing on July 1, 1982, may be called
before maturity and redeemed, at the option of the City, on Ju1y 1, 1981, or on any interest payment
4
'i-
date thereafter prior to maturity, at a redemption price tor 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:
104% if redeemed on July 1, 1981 or January 1, 1982;
103_% if redeemed on July 1, 1982 or January 1, 1983;
IC"J i88% if redeemed on July 1, 1983 or January 1, 1984;
, 01 ~ % if redeemed on July 1, 1984 or January 1, 1985;
10(.\ i8i% if redeemed on July 1, 1985 or JQ&Jl~Q"~ 1, 1986, -t:A.D ..ut<t.f<<.t. I
1011' 'I' if foiloORll1i 98 IlIIr III lpg, 8f I_var,. 1, 19ft7;
1n1 ~ ~, ..~~~~ft'I'i"d QIl J'Il1r I" IPi7 Sf 1_..,- 1, 1988;
1nnl~ ~ .f ..~AAAft'lAA .....- !....lr I" IPii 91 I_vary 1, 1989; Mul
1 MDtt i' rMIl'Il''ft'Ill'rI nn T111]' 1. 1 QOQ 2r tIt,aoft...
AIl or any of the bonds subject to call may be called for redemption at anyone time. If less than all
of the bonds are redeemed at anyone time, such bonds shall be redeemed 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 "redemption date."
(a) Notice of Redemption. Notice of the intended redemption shall be published by one insertion
in a newspaper of general circulation in the County of Los Angeles, California, and in a financial newsP
paper or journal of national circulation published in the City of New York, New York, said publica-
tions to be at least 30 days but not more than 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 whenever any call includes all of
the outstanding bonds subject to call the numbers of the bonds need not be stated; ( d) require that
such bonds be surrendered with all interest coupons maturing subsequent to the redemption date
(except that no coupons need be surrendered on bonds registered as to both principal and interest)
at the office of the Treasurer of the City of Anaheim, California, or, at the option of the holder, at
the main offices of Bank of America National Trust and Savings Association in Los Angeles, or at any
.paying agent of the City in San Francisco, California, Chicago, Illinois, or in 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 so as to be payable otherwise
than to bearer, the Fiscal Agent shall, on or before the date of publication of said notice of redemption,
mail a similar notice postage prepaid to the respective registered owners thereof at the addresses
appearing on the bond registry book.
The actual receipt by the holder of any bond of notice of such redemption shall not be a condition
precedent to redemption, and failure to receive such notice shall not affect the validity of the proceedings
for the redemption of such bonds or the cessation of interest on the 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 object thereto or object to the cessation of interest on
the redemption date fixed by any claim or showing that he failed to actually receive such notice of call
and redemption.
5
I
-
f.
(b) Redemption FUDd. Prior to the redemption date there shall be established by the Fiscal Agent
a redemption fund to be described or known as Water Revenue Series 1971 Bonds, Redemption Fund
(herein sometimes referred" to as "Redemption Fund") , and prior to the redemption date there
shall be set aside in said Redemption Fund moneys available for the purpose and sufficient to redeem,
at the premiums payable as in this resolution provided, the bonds designated in such notice of redem~
tion. Said moneys must be set aside in said fund solely for that purpose and shall be applied on or
after the redemption date to payment (principal and premium) 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 principal 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 redemption date. If, after all of the bonds have been
redeemed and cancelled or paid and cancelled, there are moneys remaining in said Redemption Fund,
said moneys shall be transferred to the 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 refunding bonds.
(c) Beet of the Notice of Redemption. When notice of redemption has been given, and when
the amount necessary for the redemption of the bonds called for redemption (principal and premium)
is set aside for that purpose in the Redemption Fund, the bonds designated for redemption shall become
due and payable on the redemption date, and upon presentation and surrender of said bonds and,
except as to 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 redemption or on any
interest coupon thereof after the redemption date specified in such notice, and the holders of said
bonds so called for redemption after such redemption date shall look for the payment of such bonds
and the premium thereon only to said Redemption Fund. All bonds redeemed and all interest coupons
thereof shall be cancelled forthwith by the Fiscal Agent and shall not be reissued.
All interest coupons pertaining to any redeemed bonds, which coupons have matured on or prior
to the redemption date, shall continue to be payable to the respective holders thereof but without
interest thereon. All unpaid interest payable at or prior to the redemption date upon bonds registered
in such manner that the interest is payable only to the registered owners shall continue to be payable
to the respective registered owners of such bonds, or their order, but without interest thereon.
Section 10. Fiscal Agent. The City hereby appoints the Bank of America National Trust and
Savings Association in Los Angeles, California, as the Fiscal Agent for the purpose of paying the
principal of and interest on any of the bonds presented for payment at its main offices 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 doing business in and having an office in the City of Los Angeles,
. State of California. Any such Fiscal Agent designated by the City shall continue to be the Fiscal Agent of
the Gty for all of said purposes until the designation of a successor as such Fiscal Agent, and the
Gty agrees that it will maintain a Fiscal Agent in said City of Los Angeles so long as any of said bonds
or any parity bonds are outstanding and unpaid. The Fiscal Agent is hereby authorized and directed
to withdraw from the funds and in the manner provided herein all sums required for the payment of
the principal of and interest on the bonds presented for payment at the places herein provided at
maturity, or on call and redemption or on purchase by the Fiscal Agent prior to maturity. The Fiscal
Agent is hereby authorized to redeem the bonds and the interest coupons appertaining thereto when
6
-')
)
I;.
duly presented to it for payment at maturity, or on call and redemption or on purchase by the Fiscal
Agent prior to maturity, and to cancel all bonds and coupons upon payment thereof and to return the
same so cancelled to the Treasurer. The Fiscal Agent shall keep accurate records of all funds
administered by it and of all bonds and coupons paid and discharged by it.
The recitals of fact and all promises, covenants and agreements herein and in the bonds of said
authorized issue contained shall be taken as statements, promises, covenants and agreements of the
City, and the Fiscal Agent assumes no responsibility for the correctness of the same, and makes no
representations as to the validity or sufficiency of this resolution or of the bonds or coupons, and shall
incur no responsibility in respect thereof, other than in connection with the duties or obligations herein
or in the bond assigned to or imposed upon the Fiscal Agent. The Fiscal Agent shall be under no
responsibility or duty with respect to the issuance of the bonds for value. The Fiscal Agent shall not be
liable in connection with the performance of its duties hereunder, except for its own negligence or default.
Any Fiscal Agent appointed hereunder may resign at any time. Upon the merger, consolidation
or other reorganization of any Fiscal Agent, the City shall appoint a new Fiscal Agent, which may
be the corporation resulting from such reorganization.
Section 11. Funds and Accounts. Under and pursuant to said Section 1210 and said Ordinance
No. ____n._____ there are created the following funds and accounts:
( 1 ) Water Revenue Series 1971 Bonds, Water Enterprise Fund (herein sometimes referred
as "Water Enterprise Fund") held by the City Treasurer, in which are created the following
accounts:
(a) Water Revenue Series 1971 Bonds, Water System Revenue Account (herein some-
times referred to as "Revenue Account");
(b) Water Revenue Series 1971 Bonds, Water System Maintenance and Operation
Account (herein sometimes referred to as "M & 0 Account");
(c ) Water Revenue Series 1971 Bonds, Water System Revenue Bond Construction
Account (herein sometimes ,referred to as "Construction Account");
(d) Water Revenue Series 1971 Bonds, Water System Renewal and Replacement Account
(herein sometimes referred to as "R & R Account");
(e) Water Revenue Series 1971 Bonds, Water System Extension and Improvement
Account (herein sometimes referred to as the "E & I Account");
(2) Water Revenue Series 1971 Bonds, Water System Revenue Bond and Interest Fund
(herein sometimes referred to as "Bond Service Fund") held by the Fiscal Agent.
(3) Water Revenue Series 1971 Bonds, Water System Revenue Bond Reserve Fund (herein
sometimes referred to as "Reserve Fund") held by the Fiscal Agent.
Section 12. 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, to the Fiscal Agent, to be placed in the Bond Service Fund.
(2) The balance shall be placed in the Construction 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 maturities thereof shall not be later than the date or dates on which moneys must be
7
available to meet scheduled Construction Account expenditures. If any sum remains in said Construction
Account after the full accomplishment 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 13. Revenue Account. The Treasurer shall deposit the gross revenues of the enterprise as
received in the Revenue Account. The Treasurer shall transfer moneys from the Revenue Account to the
funds and in the amounts and priority as follows.
Section 14. M & 0 Account. First, to the M & 0 Account, amounts sufficient for the payment
of the operating expenses of the water system as said expenses become due and payable, and in addition
such amounts as are necessary 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 of the City and approved by
City Council.
Section 15. Bond Service Fund. Second, on or before the twentieth (20th) day of each calendar
month so long as any of the bonds are outstanding the Treasurer 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 accrued 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 that
for the first twelve (12) months after the date of the bonds the monthly sum transferred shall be the
principal 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 aforesaid are less than the amounts required for that month because of lack of
funds or for any other reason the deficiency shall be added to and become a part of the transfer or
transfers required for the following calendar month. ~ .;]
/0 '~I\
In any event, such sums shall be transferred so that the full amount required ~ pay, as it becomes
due, the interest on said bonds and any maturity or installment of principal 9R iaid heads 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 becomes 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 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 installment
of interest and/or principal on such bonds all sums required for the payment thereof must be in the
Bond Service Fund.
Moneys in the Bond Service Fund may be temporarily invested in any authorized investments
provided that the maturity or maturities thereof shall not be later than the date or dates on which
money must be available in the Bond Service Fund.
,,? The bonds and the interest coupons shall recite that they are payable from the Revenue Account, but
':'~l 'sait! s9U.p9Bi notwithstanding 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 9 (b )
of this Resolution.
8
.J.
j . .
If after all of the bonds and any parity bonds have been redeemed and cancelled or paid and
cancelled (or provision is made therefor) there are moneys remaining in the Bond Service Fund or
-BmRt Reserve Fund said moneys shall be transferred to the Revenue Account.
2 '(
Section 16. Reserve Fund. Third, on or before the twentieth (20th) day of each calendar month
so long as any of the bonds are outstanding, the Treasurer shall set aside out of the Revenue Account
into the Reserve Fund held by the Fiscal Agent an amount adequate to establish a balance in said
Reserve Fund equal to maximum annual debt service, provided that the initial balance in said Reserve
Fund shall be established by deposit of Ij60th of maximum annual debt service in each of the sixty
calendar months next succeeding the issuance of the bonds and that during said sixty month period
only said deposit shall be required, and provided further that in the event that the transfer or transfers
for each calendar month during said 60 month period, and thereafter, are less than the amounts required
for that month because of lack of funds, or any other reason, the deficiency shall be added to and become
a part of the transfer or transfers required for the following calendar month.
Moneys in the Reserve Fund shall be used solely for the purpose of paying the principal of and
interest on the bonds or any parity bonds in the event that the moneys in the Bond Service Fund are
insufficient therefor and for that purpose the Fiscal Agent shall withdraw and transfer moneys from the
Reserve Fund to the Bond Service Fund. Whenever moneys are withdrawn from the Reserve Fund
an equal amount of moneys shall be placed in the Reserve Fund by transfers from the 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 annual debt service may
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 17. R and R Account. Fourth, on or before the twentieth (20th) day of each calendar month
as long as the bonds are outstanding the Treasurer shall set aside out of the Revenue Account into the R
and R Account an amount 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 1 % 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 engineer may
recommend. The monies 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 Additional Bonds, or for
extraordinary maintenance 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 and R fund exceeds the balance herein
identified, said excess may be transferred to the Revenue Account.
Section 18. E and I Account. Fifth, on or before the twentieth (20th) day of each calendar month
so long as the bonds are outstanding, the Treasurer shall set aside out of the Revenue Account into the E
and I Account such amounts as shall be deemed desirable by the City Council or appropriate city staff by
appointment of the City Council. The monies 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
additional Bonds, or for extension and improvement of the system.
All monies remaining in the Revenue Account after all transfers required hereunder have been
made, and all covenants contained herein have been duly performed may be: ( 1) invested in any
authorized investments; (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
9
to time in the open market of any outstanding bonds whether or not subject to call and redemption
(irrespective of the maturity or number of such bonds) at prices and in such manner, either at public
or private sale, or otherwise, as the City in its discretion may determine, but such purchase price
(including brokerage and other charges, but excluding accrued interest) shall not exceed 104% 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.
C.l)
Section 19. Invesfments. Except as hereinbefore provided, obligations purchased as investments
of moneys in any of the funds in which investments are authorized shall be deemed at all times
to be a part of such funds and any income realized from such investments shall be credited to such
funds and any losses resulting from such investments shall be charged to such funds. The Fiscal Agent
or Treasurer, as the case may be, shall sell at the best price obtainable or present for redemption any
obligations so purchased whenever it may be necessary to do so in order to provide moneys to meet
any payment or transfer from such funds. For the purpose of determining at any given time the
balance in any such funds any such investments constituting a part of such funds shall be valued at
the then estimated or appraised market value of such investments. Monies in all funds and accounts
described in Section 11 hereof shall be invested only in authorized investments. The City shall not use any
part of the ~roceeds of the Bonds directly or indirectly in such a manner as, pursuant to ,or" way'" (1) af
Section 103 of the Internal Revenue Code of the United States, to affect the tax free status of the interest
payable on the bonds.
Section 20. Warranty. The City shall preserve and protect the security of the bonds and the
rights of the bondholders and warrant and defend their rights against all claims and demands of all
persons.
Section 21. CoveDBDts. 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, convenient and desirable to secure the bonds and tend to make them more
marketable; provided, however, that said covenants do not require the City to expand any funds other
than the revenues received or receivable from the enterprise.
Covenant 1. Ptmctual Payment. The City covenants that it will duly and punctually payor
cause to be paid the principal of and interest on every bond issued hereunder, together with the
premium thereon, if any be payable, on the date, at the place and in the manner mentioned in the
bonds and coupons and in accordance with this resolution, and that the payments into the Bond
Service Fund and the Reserve Fund will be made, all in strict conformity with the terms of said
bonds and of this resolution, and that it will faithfully observe and perform all of the conditions,
covenants and requirements of this resolution and all resolutions supplemental thereto and of the
bonds issued hereunder, and that time of such payment and performance is of the essence of the
City's contract with the bondholders.
Covenant 2. Discharge Claims. The City covenants that in order to fully preserve and protect
. the priority and security of the bonds the City shall pay from the Revenue Account and discharge all
lawful claims for labor, materials and supplies furnished for or in connection with the enterprise
which, if unpaid, may become a lien or charge upon the 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 assessments or other governmental charges lawfully levied or assessed
upon or in respect of the enterprise or upon any part thereof or upon any of the revenues therefrom.
Covenant 3. Commence Acquisition and Construction. The City covenants that as soon as
funds are available therefor, the City will commence the accomplishment of the purposes for which
10
)
')
..,
.,
..
.-
the bonds are issued and will continue the same to completion with all practicable dispatch and in an
economical manner.
Covenant 4. Operate Enterprise in Efficient and Economical Manner. The City covenants and
agrees to operate the enterprise in an efficient and economical manner and to operate, maintain and
preserve the enterprise in good repair and working order.
Covenant 5. Against Sale, Eminent Domain, Existing 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 substantially
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 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 m.anner provided in this resolution and any subsequent resolution.
The City covenants that any amounts received as awards as a result of the taking of all or any
part of the enterprise by the lawful exercise of eminent domain, if and to the extent that such right can be
exercised against such property of the City, shall either be used for the acquisition and/or construction
of improvements and extension of the enterprise or shall be placed in the appropriate funds and shall be
used to payor call and redeem said bonds and any parity bonds in the manner provided in this
resolution and any subsequent resolution.
The City will not sell, lease or otherwise encumber any part of the Water System except properties
or facilities no longer useful or necessary to its efficient and economical operation, and it will not con-
struct, acquire, operate, permit or (to the extent permitted 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 outside the City limits; (2) take all
action necessary to fulfill its commitments under its existing agreements with Y orba Linda County
Water District, and any subsequent implemental agreements; and (3) enter into, and take all actions
necessary to fulfill its commitments under, contractual 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 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 System 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, which-
ever is less.
Covenant 6. Insurance. The City covenants that it shall at all times maintain with responsible
insurers all such insurance on the enterprise as is customarily maintained by similar utilities systems
11
I
.'
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 enterprise shall be used for repairing or. rebuilding the damaged or J ,
destroyed enterprise, and to the extent not so applied, shall be applied to the retirement of said out-
standing 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 workmen's compensation insurance and
insurance against public liability and property damage to the extent reasonably necessary to protect the t.',..
City and the bondholders.
"
Covenant 7. Records aDd Accounts. The City covenants that it shall keep proper books of
record and accounts of the enterprise, separate from all other records and accounts, in which complete
and correct entries shall be made of all transactions relating to the enterprise. Said books shall at all
times be subject to the inspection of the holders of not less than 10% of the outstanding bonds or their
representatives authorized in writing.
The Oty covenants that it will cause the books and accounts of the enterprise to be audited annually
by an independent certified public accountant or firm of certified public accountants and shall furnish
a copy of the audit report 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: ( 1 ) 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 Y orba Linda County Water District. The City will pay promptly into the
Water 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 Y orba 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 Oty 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 ad 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 contingencies and error in the estimates, shall be at least sufficient to pay the following I
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 payable, and to maintain the M and 0 Account
at the level required by this resolution;
(b) The interest on and principal 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 and 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;
12
-- - -- .0.. The City covenants that it will cause the enterprise to be
inspected annually by a Consultinq Engineer and shall furnish a copy
of the Consultinq Enqineer's report and recommendations to the Fiscal )---'
Agent, and' upon requ8s:t to any bondholder. ."...l'." ~
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 revenue of the enterprise over the bonds hereby authorized
to be issued and payable out of said revenues.
Covenant 11. Limits on Additional Debt. Additional Bonds (on a parity with these Series 1971
Bonds) may be issued to finance or re-finance any repairs, improvements, enlargements or extensions
of the enterprise and to refund any Bonds or Additional bonds then outstanding, provided that the
City covenants that, except for bonds issued to refund Bonds or Additional 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 these bonds shall be created or
incurred unless:
First: The City is not in default under the terms of this resolution.
Second: The net revenues of the enterprise, calculated on sound accounting principles, as
shown by the books of the City for each of the last two completed fiscal years prior to the adoption
of the resolution of award of bids for such additional indebtedness as shown by an audit certificate
or opinion of an independent certified public accountant or firm of certified public accountants
employed by the City, plus, at the option of the City, any or all of the items hereinafter in this
covenant designated (a), 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 immediately subsequent
to the incurring of such additional indebtedness. For said purposes, principal requirements shall be
construed to include mandatory annual sinking fund installments for any series of Additional Bonds
issued or to be issued as term bonds.
For the purposes of this covenant, the net revenues of the enterprise shall not include any sum
transferred from the Construction Fund under the provisions of this resolution. The items any or.all
of which may be added to such net revenues for the purpose of applYing the restriction contained in
this covenant are the following:
(a) An allowance for earnings arising from any increase in the charges made for service
from the enterprise which has become effective prior to the incurring of such additional 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
'J...increase in charges had been in effect during the whole of said last two completed fiscal years, as shown
. . by the certificate or opinion of independent certified public accountant 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 Water System) may
be issued to finance or refinance any repairs, enlargements, extensions or improvements of the Water
System, but no revenues of the Water System 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 Bond Resolution and has made all payments required
to that time by the Bond Resolution; (2) the Bond Reserve Fund contains an amount equal to no less
than the maximum combined annual principal and interest requirements of all Bonds and Additional
Bonds then outstandin9 aaa (1) aD R 11111-.-&1 lIRa R 1I,IR'iMiM A "811M 88RtMBO IlIl IIIRllIBt IIftIM t8
Be 1800 *&a ta~ 8f11nt~f of (0) 11{ gt tka OOpfl,i&t88 k9811 .MlI! sf the 1_8, ~eBerM pllHtt MiA
IIIW'IIlORt ..WRIt uu-..+~t~Jt1J r Py..t~"""R ~f ta, iRt~"FIifi' III (11) 11118B atka, &lIlllJlll &8 fl88.1R1881d
b.1 tI...v a.,I1..._1m~ RB!iBI8f pllfBltMM t8 ~B9ti8a 11~ RllfDaf.
13
Section 22. Lost, Stolen, Destroyed or Mutilated Doods. In the event that any bond or any
interest coupon pertaining thereto is lost, stolen, destroyed or mutilated, the City will cause to be
issued a new bond or coupon similar to the original to replace the same in such manner and upon
such reasonable terms and conditions, including the payment of costs and the posting of a surety
bond if the City deems such surety bond necessary, as may from time to time be determined and
prescribed by resolution. The City may authorize such new bond or coupon or coupons to be signed
and authenticated in such manner as it determines in said resolution.
Section 23. CaneeDatioD 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 cancelled immediately. Any bonds purchased by the City as authorized herein
together with all unpaid coupons pertaining thereto shall be cancelled forthwith and shall not be reissued.
Section 24. Consent of Bondholders. The consents of bondholders provided for in this section
shall relate solely to the amendment, waiver or modification of the covenants specified in Setcion 21
hereof and shall not be effective to waive or modify any other provisions of this resolution or any other
proceedings for the issuance of the bonds. Any act relating to the amendment, waiver or modification
of any of the said covenants consented to by bondholders holding 66% % in aggregate principal
amount of the outstanding bonds, exclusive of bonds, if any, owned by the City, shall be binding upon
the holders of all of the bonds and interest coupons, whether such coupons be attached to bonds or
detached therefrom, and shall not be deemed an infringement of any of the provisions of this resolution,
whatever the character of such act may be, and may be done and performed as fully and freely as
if expressly permitted by the terms of this resolution, and after such consent relating to such specified
matters has been given, no bondholder or holder of any interest coupon, whether attached 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
without a meeting, all as hereinafter provided.
No such amendment, waiver or modification shall be made which will permit (a) a change in
the maturity or term of redemption of the principal of any bond or any installment of interest thereon;
(b) a reduction in the principal amount of or redemption price or redemption premium or rate of
interest upon any bond without the consent of the holder of such bond; or (c) a reduction of the
percentage of the principal amount of bonds the vote or consent of which is required to effect any
such amendment.
(a) CaIIiDg Bondholders' Meeting. If the City shall desire to obtain any such consent it
may call a meeting of bondholders, by resolution, for the purpose of considering the action, the
consent to which is desired.
(b) Notice of Meeting. Notice specifying the purpose, place, date and hour of such meeting
shall be published once in a financial newspaper or journal of national circulation published in the
City of New York, New York, not less than sixty (60) days and not more than ninety (90) days
prior to the date fixed for the meeting. Such notice shall set forth the nature of the proposed
action, consent to which is desired. If any of the bonds shall be so registered as to be payable
otherwise than to bearer, the City Clerk of the City shall, on or before the first publication of
such notice, mail a similar notice, postage prepaid, to the respective registered owners thereof
at their addresses appearing on the bond registry books. The place, date and hour of holding
such meeting and the date or dates of publishing and mailing such notice shall be determined
by the City, in its discretion.
The actual receipt by any bondholder of notice of any such meeting shall not be a condition
precedent to the holding of such meeting, and failure to receive such notice shall not affect the
14
"4 .,'
""'1
)
validity of the proceedings thereat. A certificate by said City Clerk, approved by resolution of
the City Council that the meeting has been called and that notice thereof has been given as
herein provided shall be conclusive as against all parties and it shall not be open to any bond-
holder to show that he failed to receive notice of such meeting.
(c) Voting QuaHfications. Any bondholder may, prior to any such meeting, deliver his
bond or bonds to any agency designated by the City for the purpose, and shall thereupon
be entitled to receive an appropriate receipt for the bond or bonds so deposited, calling for
the redelivery of such bond or bonds at any time after the meeting. The Treasurer shall prepare
and deliver to the chairman of the meeting a list of the names and addresses of the registered
owners of bonds, with a statement of the maturities and serial numbers of the bonds held and
deposited by each of such bondholders, and no bondholder shall be entitled to vote at such
meeting unless his name appears upon such "list or unless he shall present his bond or bonds at
the meeting or a certificate of deposit thereof, satisfactory to the City, executed by a bank:
or trust company. No bondholders shall be permitted to vote with respect to a larger aggregate
principal amount of bonds than is set against his name on such list, unless he shall produce the
bonds upon which he desires to vote, or a certificate of deposit thereof as above provided.
(d) Issuer-owned Bonds. The City covenants that it will present at the meeting a certificate,
signed and verified by one member of the City Council and by the Treasurer stating the maturities
and serial numbers of all bonds owned by, or held for account of, the City, directly or indirectly.
No person shall be permitted at the meeting to vote or consent with respect to any bond appearing
upon such certificate, or any bond which it shall be established at or prior to the meeting is
owned 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) Quomm and Procedure. A representation of at least 66% % 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 meet-
ing from time to time, and the meeting may be held as so adjourned without further notice, whether
such adjournment shall have been had by a quorum or by less than a quorum. The City shall, by
an instrument in writing, appoint a temporary chairman of the meeting, and the meeting shall
be organized by the election of a permanent chairman and a secretary. At any meeting each
bondholder shall be entitled to one vote for every $5,000 principal amount of bonds with respect
to which he shall be entitled to vote as aforesaid, and such vote may be given in person or by proxy
duly appointed by an instrument in writing presented at the meeting. The City, by its duly authorized
representative, may attend any meeting of the 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
consideration and action of the bondholders a statement of proposed action, consent to which is
desired, and if such action shall be consented to and approved by bondholders holding at least
66% % in aggregate amount of the bonds then outstanding (exclusive of issuer-owned bonds)
the chairman and secretary of the meeting shall so certify in writing to the City, and such certificate
shall constitute complete evidence of consent of bondholders under the provisions of this resolution.
A certificate signed and verified by the chairman and the secretary of any such meeting shall be
conclusive evidence and the only competent evidence of matters stated in such certificate relating
to proceedings taken at such meeting.
(g) Written Consent of Bondholders. If the City shall desire to obtain any such consent in
writing, without a meeting of bondholders, the City Council may, by resolution, propose the action,
to which consent is desired. A copy of such resolution, together with a request to bondholders
for their consent to the action proposed therein, 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
15
r
.-
shall, on or before the publication of such resolution and request, mail a copy thereof to each
registered owner at the address appearing on the bond registry books.
The actual receipt by any bondholder of such resolution and request shall not affect the validity
of the proceedings for the obtaining of such consent. A certificate by said City Clerk, approved by
resolution of the City Council, that said resolution and request has been published and mailed
as herein provided shall be conclusive as against all parties, and it shall not be open to any
bondholder to show that he failed to receive such resolution and consent.
Each written consent shall be accompanied by proof of ownership of the bonds for which such
consent is given. Proof of ownership shall be made in such manner as shall be prescribed by the
resolution proposing the action. Any such written consent shall be binding upon the holder of the
bonds giving such consent and on any subsequent holder (whether or not such subsequent holder
has notice thereof) unless such consent is revoked in writing by the holder giving such consent or
by the subsequent holder. To be effective, any revocation of consent must be filed before the
adoption of the resolution accepting consents as hereinafter provided.
After the holders of at least 66% % in aggregate principal amount of the bonds then outstand-
ing (exclusive of issuer-owned bonds) shall have consented in writing, the City Council shall adopt
a resolution accepting such consents and such resolution shall constitute complete evidence of the
consent of bondholders under this resolution.
(h) Pub6catiOD of Consent. Notice specifying the amendment, waiver or modification that
has received the consent of bondholders as required by this section shall be published once in
a financial newspaper or journal of national circulation published in the City of New York,
New York, not less than sixty ( 60) days following the final action in the proceedings for the
obtaining of such consent. Said notice is only for the information of bondholders and failure
to publish such notice or any defect therein shall not affect the validity of the proceedings theretofore
taken in the obtaining of such consent.
Section 25. Bond and Coupon Forms. Said bonds shall be payable to bearer, shall be issued
in negotiable form, and shall be negotiable, and the form of said bonds and interest coupons thereof
shall be substantially as follows:
UNITED STATES OF AMERICA
STATE OF CALIFORNIA
COUNTY OF ORANGE
CITY OF ANAHEIM
WATER REVENUE SERIES 1971 BOND
No.. ......... .... .... ...... _ - _ ._...
$5,000
THE CITY OF ANAHEIM, a municipal corporation situated 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, nn____' upon presentation and surrender of
. this bond, the sum of FIVE THOUSAND DOLLARS, with interest thereon at the rate of nnnn % per
annum, payable semiannually on the first days of January and July of each and every year from the date
hereof until this bond is paid, upon presentation and surrender of the respective interest coupons hereto
attached; provided, however, that if at the maturity date of this bond or, if the same is redeemable and
shall be duly called for redemption, then at the date fixed for redemption, funds are available for the
payment or redemption thereof, as provided in the resolution hereinafter mentioned, this bond shall
then cease to bear interest. Both principal and interest are payable in lawful money of the United States
of America, at the office of the Treasurer of the City of Anaheim in Anaheim, California, or, at the
16
.~
)
~) .,
option of the holder, at the main offices of Bank of America National Trust and Savings Association in
Los Angeles, or at any paying agent of the City in San Francisco, California, Chicago, Illinois, or in
New York, New York.
This is one of a duly authorized issue of bonds of the City designated "Water Revenue Series 1971
Bonds", 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. _n_.U_ of the City Council of said City, for the purpose
of the acquisition, construction and financing of water facilities for said City and the creation of said
issue and the terms and conditions of the bonds are provided for by the resolution of the City Council
of said City authorizing the bonds adopted .nn__n_nn..___..__________....., designated Resolution No. .__________.,
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 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 Oty of An8.heim, 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. ___u___, and under the provisions of said resolution
authorizing the issuance of this bond the revenues received from the enterprise are required to be deposited
to the credit of said Water System Revenue Account and used only for the purposes authorized by said
resolution, including the payment of principal and interest of the series of bonds of which this is one.
By the terms of said Section 1210 of the City Charter and said Ordinance No. ____hu and by covenant
expressed in said resolution, the City is obligated to prescribe, revise and collect charges for the services
and facilities of the water system of the City such as to provide revenues sufficient to pay the interest on
and principal of the bonds as they become due and payable in addition to all other payments required
for compliance with said resolution and the necessary and reasonable maintenance and operation costs
of the water system, is prohibited from issuing bonds having any priority with respect to payment from
the gross revenues of the enterprise, and is subject to conditions with respect to any sale of said water
system. In the manner provided in said resolution, any or all of the obligations referred to in this paragraph
and certain other obligations mentioned in said resolution may be waived with the consent of the holders
of 66% % in aggregate principal amount of the outstanding bonds, exclusive of issuer-owned bonds.
This bond is callable and redeemable prior to maturity in accordance with the provisions for
redemption endorsed hereon.
This bond and the coupons hereto attached are negotiable instruments and shall be negotiable by
delivery. This bond may be registered only as to both principal and interest, in accordance with the
provisions for registration endorsed hereon.
It is hereby certified and recited that any and all acts, conditions and things required to exist, to
happen and to be performed precedent to and in the incurring of the indebtedness evidenced by this
bond and in issuance of this bond exist, have happened, and have been performed in due time, form
and manner as required by the Constitution and laws of the State of California and 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.
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
17
I
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 July 1, 1971.
Mayor of the
City of Anaheim, California
COUNTERSIGNED:
City Clerk of the
City of Anaheim, California
City Treasurer of the
City of Anaheim, California
(SEAL)
(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 main offices of Bank of America National Trust
and Savings Association, Fiscal Agent for the City, in Los Angeles, California,
or at any paying agent of the City in San Francisco, California, Chicago, Illinois,
or in 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 SERIES 1971 BOND,
NO.
dated ....nn.......uu____......_.., subject to the
provisions on the reverse hereof.
........_.___...__.. 19....
Coupon No.
$.---. - - ------ - -.. - - -- -... - --
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 redemp-
tion on a date prior to the maturity date of this coupon, this coupon will be void.
PROVISIONS FOR REDEMPTION
Unless this bond matures on or prior to July 1, 1981, 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, 1981, or on any interest payment date thereafter prior
to maturity, upon at least 30 days' prior notice published in a newspaper circulated in the County of
Los Angeles, California, and in a financial newspaper or journal of national circulation published in the
City of New York, New York, at a redemption price for each redeemable bond expressed in the
18
J
')
)
.~) .
following schedule as a percentage of par value, plus accrued interest to the date of redemption, as
follows:
104% if redeemed on July 1, 1981 or January 1, 1982;
1 03 !a: % if redeemed on July 1, 1982 or January 1, 1983;
I 0 :~ ~% if redeemed on July 1, 1983 or January 1, 1984;
101 ~% if redeemed on July 1, 1984 or January 1, 1985;
j O(}wa.% if redeemed on July 1, 1985 or lalHlM) 1, 1986, --cJu.u: .~..a.L .
1Q11i ~ H .odoi.,iI l1R ~Jlr I" lVi' if Joa\lBl) 1, IPi7;
1n1 ~ ~# ..o..:lo~...o..:l <,n ]....lr 1,. IPW7 gr Iaw]a~~ 1, IP88;
IQQlj.. if l',d"Rl'~ ga J.Jlr I" lPWi 111 JawlRfS" 1" 1PWP~ &ll1i
100'" if WdftRlf~ Qn J.llr 1.. lPiP ~l" taa'DafauI.
PROVISIONS 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 discharged from registration.
Each registration, transfer after registration, or discharge from registration of this bond shall be
entered by the Fiscal Agent in books kept by it for the purpose and noted by it in the registration blank
below. Upon registration, all unmatured coupons pertaining hereto 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 the 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 upon the registry books as the registered
owner hereof at the close of business on the tenth day preceding the interest payment date, or to his
order. If this bond is registered and it is discharged from registration, there shall be attached hereto
coupons representing interest hereon to become due thereafter to the date of maturity hereof. If requested
by the registered owner, in lieu thereof, and upon surrender and cancellation thereof, the Fiscal Agent
may issue in exchange therefor a new bond, with such coupons attached, identical with this bond except
for the previous notations on the registration blank hereon, and except that the signatures on the new
bond 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 notation in the blank below, that this bond is payable to bearer, whereupon this bond shall become
an unregistered bearer instrument, negotiable by delivery as if it had never been registered. Each
request for registration, transfer or discharge must be in form satisfactory to the Fiscal Agent and
must be made in writing, signed by the registered owner, or by his agent duly authorized in writing, or
by the bearer, as the case may be.
Date of In Whose Name Signature of.
Registration Registered FIsca1 Agent
..-... ....-.......-............ ...- --.......-.........................-... ...................-...... --................... -- .--............... --.... -_.............-.....-.....................
--..... --............................ .... -..... .--...._-- _e. _.... _____... ______......_ __._
.-......... -. ...--.. ...--...... --.................... --................. ................-...........-..................... -- .---...... -- --.-..... --.... --.... --.... --...............
--.............-................. --........ -. ---- ----...... -----............ .-.... ------- ------
.. -------- -- ----............ --..... --................................. --............................ --............ ---.. --....... --.............................. --...... --................
--.......................................... --...... ...... -- --..... --..-.. --............ --.... ------.. -- -.....
.-.--......--..-- -........... ...... .... .- -................ - --.. ---... _....- - - -- - - -- - - -- -...- - -.. -. -... -. --.. -.. - - -.... - .... - ... .........-... ..........
- -.. -....--....-
19
Section 26. Proceedings Constitute Contract. The prOVIsIons of this resolution and of the
resolutions providing for the sale of the bonds and awarding the bonds and fixing the interest rate or
rates thereon shall constitute a contract between the City and the bondholders and the provisions
thereof shall be enforceable by any bondholder for the equal benefit and protection of all bondholders
similarly situated by mandamus, accounting, mandatory injunction or any other suit, action or proceeding
at law or in equity that is now or may hereafter be authorized under the laws of the State of California
in any court of competent jurisdiction. Said contract is made under and is to be construed in accordance
with the laws of the State of California.
No remedy conferred hereby upon any bondholder is intended to be exclusive of any other remedy,
but each such remedy is cumulative and in addition to every other remedy and may be exercised without
exhausting and without regard to any other remedy conferred by the Charter, Ordinance No. UnUU..U. 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 impair any such right or power or shall be
construed as a waiver of any such default or acquiescence therein. Every substantive right and every
remedy conferred upon the bondholders may be enforced and exercised as often as may be deemed
expedient. In case any suit, action or proceeding to enforce any right or exercise any remedy shall
be brought or taken and the bondholder shall prevail, said bondholder shall be entitled to receive
from the Water System Revenue Account reimbursement for reasonable costs, expenses, outlays and
attorney's fees and should said suit, action or proceeding be abandoned, or be determined adversely to
the bondholders then, and in every such case, the City and the bondholders shall be restored to their
former positions, rights and remedies as if such suit, action or proceeding had not been brought or taken.
After the issuance and delivery of the bonds this resolution shall be irrepealable, but shall be
subject to modification to the extent and in the manner provided in this resolution, but to no greater
extent and in no other manner.
Section 27. Future Contracts. Nothing herein contained shall be deemed to restrict or prohibit
the City from making contracts or creating bonded or other indebtedness payable from the general
fund of the City or from taxes or any source other than the revenues of the enterprise as defined
herein, and from and after the sale of the bonds the general fund of the City shall not include the
revenues of the enterprise and no contract or other obligation payable from the general fund of the City
shall be payable from the revenues of the enterprise, except as provided herein.
Section 28. Severability. If any covenant, agreement or provision, or any portion thereof, con-
tained in this resolution, or the application thereof to any person or circumstance, is held to be unconsti-
tutional, invalid or unenforceable, the remainder of this resolution and the application of any such
covenant, agreement or provision, or portion thereof, to other persons or circumstances, shall be deemed
severable and shall not be affected thereby, and this resolution and the bonds issued pursuant hereto
shan remain valid and the bondholders shall retain all valid rights and benefits accorded to them
under this resolution and the Constitution and laws of the State of California. If the provisions relating
to the appointment and duties of a Fiscal Agent are held to be unconstitutional, invalid or unenforceable
said duties shall be performed by the officer of the city performing the functions of a treasurer.
Section 29. Eftective Date. This resolution shall take effect upon adoption.
ADOPTED, SIGNED AND APPROVED this .L:;.i::: day Of~, 1971.
/' ....
tUrL /t4. jJ~
cry dvL
J . .
..~f\:;" ~ _
.,r I
, 1
. .!
20. .:
(. ,,~. .. · 'd:'
"~'~ ~tr'.,~
')
)
~) .
STATE OF CALIFORNIA }
COUNTY OF ORANGB 5S.
CITY OF ?:NAHBIM
I, L.J2!..--k~-.,:,~~,;,/::: City Clerk of the City of Anaheim, California, Do HEREBY CERTIFY
that the foregoing resolution was duly adopted by the City Council of said city and was approved by the
Mayor F ~city at a ------------===--:------------ regular meeting of said City Council held on the ..,I._~.f-..-n
day of . ....h...U_n' 1971, and that It was so adopted as follows:
AYES: Councilmen..-hl? ~ //~k \ ;~ ~ . C ~
~ ...........--../ ....J.~/ """_~ ~_ ~,~'--
NOES: Councilmen ~
"
ABSENT: Councilmen ~~
~-~
');( JJ~
City Clerk of the City of
Anaheim, California
(SBAL)
STATB OF CALIFORNIA
COUNTY OF ORANGB
CITY OF ANAHEIM
1 ss.
J
I, ........................................, City Clerk of the City of Anaheim, California, Do HEREBY CERTIFY
that the above and foregoing is a full, true and correct copy of Resolution No. ........u.., and that the
same has not been amended or repealed.
DATED: ...u........___..._____, 1971.
City Oerk of the City of
Anaheim, California
(SEAL)
21
I, OENE M. D.t\OG3T. CITY CL.ERK OF. THE. CITY OF ANAHEIM
Q9. ~~REBY C~r\TIFY TH.r..l T;~~: ~~~7,9.'~~ IS.THE ORIGINAL.
r..s;s:;.nJ,l',...'.... "", "7/1f-..~33 rlI.JI.Y.'?.AroP~'1 0.. ~ OD '..-rOOD
Ifr.,'(Jt.~;~~~/~ ;:\~. /1. .. ..~.:~::___::IJ1'"JLY '-Pi~;'" I;" '.1) "':'<: i to]
.ro.. " ..' .., ,. .. n ... , .--
BY r;E A~:.~~~_E!i? _:~lr6UNCiL .~:~.L::Lf..2.t....~_
..~.~ . ~~.__......~..~.:~.h___~..~~._:.:.=:..
CITY ClERK