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HomeMy WebLinkAbout1969-10-07; City Council; Resolution 1660RESOLUTION NO. 1 6fin RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING AN ANNUAL RENTAL UNDER THAT CERTAIN LEASE ENTITLED "LEASE AGREEMENT." WHEREAS, by the adoption of Resolution No. 1660 this City Council has approved and authorized a certain docu- ment entitled "Lease Agreement'' between this City and the Parking Authority of the City of Carlsbad, which Lease Agreement is dated August 21, 1969; and I' WHEREAS, Section 4 of said Lease Agreement'' provides for an adjustment of bonds to be issued by said Authority are known, and rental when the interest rates on the WHEREAS, said bonds having bekn sold said interest rates are now known; NOW, THEREFORE, the City Council of the City of Carlsbad, California does hereby FIND, RESOLVE, DETERMINE and ORDER as follows: Section 1. That pursuant to said Section 4 of said Lease Agreement" the City Council does hereby fix and approve 11 the amount of $138,433 as the adjusted rental pursuant to Sections 3 and' 4 of said Lease Agreement. ADOPTED, SIGNED AND APPROVED this 7th day of October, 1969. ATTEST: (SEAL) STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CARLSBAD ss. I, Margaret E. Adams, City Clerk of the City of Carlsbad, California, DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the City Council of said City and was approved by the Mayor of said City at a regular meeting of said City Council held on the 7th day of the following vote, to wit: October , 1969, and that it was adopted by AYES: Councilmen, Dunne, McComas. Jardine Neiswender and Castro. NOES: None. ABSENT: None. r RESOLUTION NO. 5 . RESOLUTION OF THE BARKING AUTHORITY OF THE CITY OF CARLSBAD, CALIFORNIA, AUTRORIZPNG THE ISSUANCE OF $1,535,000 BONDS OF SAID AUTHORITY AND PROVIDING THE TERMS AND CONDITIONS FOR THE ISSUANCE OF §AID BONDS. WHEREAS, in accordance with the provisions of the Parking Law of 1949 (Part 2 of Division 18, $8 32500 et seq. of the Streets and Highways Code of the State of California) the City Council of the City of Carlsbad, being the legislative body of said City, by Resolution No. 1264 adopted April 19, 1966, declared that there is a need for the Parking Authority of the City of Carlsbad to function in said city; and WHEREAS, the Authority desires to issue revenue bonds for the purpose of acquisition and financing of public parking facilities which will be leased to the City; NOW, THEREFORE, the Parking Authority of the City of Carlsbad, California, does hereby RESOLVE, DETERMINE AND ORDER as follows: Section 1. Definitions. As used in this resolution the following terms shall have the following meanings: (a) “Parking Law” means the Parking Law of 1949 as cited in the recitals hereof. (b) “City” means the City of Carlsbad, California. (c) “City Council“ or “Council” means the City Council of said City. (d) “Authority” or “Parking Authority” means the Parking Authority of the City of Carlsbad, a public body corporate and politic, the governing body of which are the members as appointed by the City Council. (e) “Lease Agreement” means that certain Lease Agreement dated August 21, 1969, between the Parking Authority and the City. (f) “Project” means the acquisition of land,and improvements referred to in Section 2 of the Lease Agreement including a11 costs and expenses in connection with the carrying out of the Project, and also means the parking facilities resulting from such acquisition and construction. (g) “Pledged Revenues” means all rentals payable by the. City to the Authority under the terms of the Lease Agreement, all moneys credited upon rentals as provided in the Lease Agree- ment or in this resohtion, all gross revenues, if any, received by the Authority from the re-letting or operation of the Project, and any other moneys which under this resolution are required to be placed in the Bond Service Fund. (h) “Bond” or “revenue bonds” means the revenue bonds authorized by this resolution. (i) “Year” or “fiscal year” means the year period beginning on JuIy 1st and ending on the (j) “Fiscal Agent” means Security Pacific National Bank as provided in Section 12 hereof. (k) “Maximum annual debt service” shall be the maximum amount payable as interest on and as principal of the aggregate amount of Bonds and Additional Bonds on any payment dates in any twelve month period beginning the day following the anniversary date of the Bonds and ending on the anniversary date of the Bonds. next following June 30th. 14 EXHIBIT C e (1) “Authorized investment” means any security in which the Authority may legally invest funds subject to its control. Section 2. Amount, Issuance and Purpose of Bonds. Under and pursuant to the Parking Law the Authority shall borrow money to provide funds for the Project and shall issue in its name revenue bonds in the amount of $1,535,000 to evidence the indebtedness created by such borrowing. Section 3. Nature of Bonds. The bonds shall constitute special obligations and evidence a special indebtedness of the Authority whi’ch shall be and are a charge upon, and shall be and are payable, both as to principal and interest, and as to any preminms upon the redemption of any thereof, solely from the Pledged Revenues and certain other limited funds as herein provided, and shall not constitute obligations, nor evidence any indebtedness, of the City of Carlsbad or the State of California. Nothing in this resolution shall preclude: such bonds out of the proceeds of the sale of refunding bonds issued for that purpose. redemption of, any such bonds of any funds which the Authority may lawfully so apply. Section 4. Description of Bonds. The Bonds shall be in the principal sum of $1,535,000, shall be 307 in number, numbered 1 to 307, inclusive, and shall be of the denomination of $5,000 each. The bonds shall be designated 1969 PARKING REVENUE BONDS, shall be dated October 1, 1969, and shall mature and be payable in consecutive numerical order on October 1 in each year of maturity in the amounts for each of the several years as follows: (a) The payment of or principal of or interest on, or premiums on the redemption of, any (b) The application to the payment of any principal of, interest on, or premiums on the Maturity Date PrincipaI Amount Maturity Date Principal Amonnt 1971 .............................. $ 10,000 1972 .............................. 25,000 1973 .............................. 25,000 1974 .............................. 25,000 1975 .............................. 25,000 1976 .............................. 25,000 1977 _____________.________________ 25,000 1978-. ............................ 50,000 1979 .............................. 50,000 1980 .............................. 50,000 1981 .............................. 50,000 1982 .............................. 50,000 1983 .............................. 50,000 1984 .............................. $ 50,000 1985 .............................. 75,000 1986 .............................. 75,000 1987 .............................. 75,000 1988 .............................. 75,000 1989 .............................. 75,000 1990 .............................. 100,000 1991 .............................. 100,000 1992 .............................. 100,000 1993 .............................. 100,000 1994 .............................. 125,000 1995 .............................. 125,000 Section 5. Interest and Places of Payment. The bonds shall bear interest at a rate or rates to be hereafter fixed by resolution, but not to exceed seven per cent (7% ) per annum, payable semiannually on the 1st days of October and April 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, funds are available for the payment or redemption thereof in full accordance with the terms of this resolution. The said bonds shall then cease to bear interest. The bonds and the interest thereon shall be payable in lawful money of the United States of America at the office of the Fiscal Agent in Los Angeles, California, or at the option of the holder, at any paying agency of the Authority in Chicago, Illinois or New York, New York. 15 Section 6. Execution of Bonds. The Chairman of, the Authority and the City Treasurer of the City as ex officio Treasurer of the Authority, are hereby authorized and directed to sign all of the bonds by their printed, lithographed or engraved facsimile signatures, and the Clerk of the Authority is hereby authorized and directed to countersign the bonds and to cause the corporate seal of thc Authority to be impressed, imprinted or reproduced thereon, and the said Treasurer is hereby authorized and directed to sign the interest coupons of the bonds by his printed, lithographed or engraved facsimile signature. Section 7. Registration. The bonds may be registered as to principal only or as to both principal and interest, and the form of registration of any registered bond may be changed, or any registered bond may be discharged from registration, in the manner and with the effect set forth in the provisions for registration contained in the form of bond set forth herein. Section 8. Redemption of Bonds. In the event of loss of, substantial damage to or condemna- tion of the whole or any substantial part of the Project, so as to render the same unusable, all or any part of the Bonds at that time outstanding, may at the option of the Authority, be called and redeemed prior to maturity on any succeeding date, at a redemption price equal to the principal amount thereof with accrued interest to the date of redemption plus the premium applicable thereto as hereinafter set forth in the succeeding paragraph of this section regardless of maturity dates relating to call therein, but only in the manner and only from the funds as hereinafter provided in the case of redemption. If less than all bonds are called pursuant to this paragraph, Fiscal Agent shall determine a principal amount in each maturity to be called so that approximately equal annual debt service will prevail. Bonds to be then called in each maturity will be selected by lot. Except as set forth in the preceding paragraph, the bonds maturing prior to October 1, 1979, shall not be subject to call or redemption prior to maturity. Bonds maturing on or after October 1, 1980, may be called before maturity and redeemed, at the option of the Authority, with funds derived from any source, on October 1, 1979, or on any interest payment date thereafter prior to maturity, at a redemption price for each redeemable bond equal to the principal amount thereof plus a premium (percentage of par value) equal to !A of 1% for each year or remaining fraction of a year between the date of redemption and the date of maturity, but in no event shall the premium exceed 5%. If less than all the then outstanding bonds are redeemed at any one time, said bonds shall be redeemed only in inverse order of maturity and bond number. Section 9. Notice of Redemption. Notice of the intended redemption shaIl be published by one insertion in a newspaper of general circulation in the City of New York, said publication to be at least 30 days but no more than 60 days prior to the redemption date. The notice of redemption shall (a) state the redemption date; (b) state the redemption price; (c) state the numbers and date of maturity of the bonds to be redeemed, provided, however, that if the 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 Fiscal Agent or at any paying agency of the Authority at which the bonds are payable; (e) require that bonds which at the time of call are registered so as to be payable otherwise than to bearer shall be accompanied by appropriate instruments of assignment duly executed in blank; and (f) give notice that further interest on such bonds will not accrue after the designated redemption date. If any of the bonds designated for redemption shall be registereQ so ,as to be payable otherwise than to bearer, said Fiscal Agent shall, on or before the date of publication of said notice of redemp- tion, mail a similar notice, postage prepaid, to the respective registered owners thereof at the addresses appearing on the bond registry books. 16 The actual receipt by the holder of any bond (hereinafter referred to as bondholder^') of notice of such redemption shall not be a condition precedent to redemption, and failure to receive such notice shall not affect the validity of the proceedings for the redemption of such bonds or the cessation of interest on the date fixed for redemption. The notice or notices required by this section shall be given by said Fiscal Agent. A certificate by said Fiscal Agent that notice of call and redemption has been given to holders of registered bonds as herein provided shall be conclusive as against all parties, and no bondholder whose 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. Section 10. Redemption Fund. Prior to the redemption date there shall be established by the Fiscal Agent a redemption fund to be known as the 1969 Parking Revenue Bonds, Redemption Fund (hereinafter sometimes referred to as the “Redemption Fund”) and prior to the redemption date there must be set aside in the Redemption Fund, herein provided for, moneys available for the purpose and stdicient to redeem, at the premiums payable as in this resolution provided, the bonds designated in such notice for redemption. Said moneys must be set aside in said fund solely for that purpose and shall be applied on or after the redemption date to payment (principal and premium) for the bonds to be redeemed upon presentation and surrender of such bonds and (except as to bonds fully registered as to both principal and interest) all interest coupons maturing after the redemption date, and shall be used only for that purpose. Any interest coupon due on or prior to the redemption date shall be paid from the Bond Service Fund as provided herein upon presentation and surrender thereof. 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 called have been redeemed and cancelled or paid and cancelled there are moneys remaining in said Redemption Fund, said moneys shall be transferred to the Bond Service Fund hereinafter created; provided, however, that if said moneys are part of the proceeds of refunding bonds said moneys shall be transferred to the fund created for the payment of principal of and interest on such refunding bonds. Section 11. EfEest of the Notice of Redemption. When notice of redemption has been given, substantially as provided herein, 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, as provided herein, the bonds designated for redemption shall become due and payable on the date fixed for redemption thereof, 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, and, if any of said bonds be registered, upon the appropriate assignment thereof in blank, such bonds shall be redeemed and paid a: said redemption price out of the Redemption Fund, and no interest will accrue on such bonds called for redemption or on any interest coupons 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 forth- with by said Fiscal Agent and shall not be reissued. All interest coupons pertaining to any redeemed bonds, which coupons have matured on or prior to the time fixed for redemption, shall continue to be payable to the respective holders thereof but without interest thereon. All unpaid interest payable at or prior to the date fixed for redemption upon registered bonds shall continue to be payable to the respective registered owners of such bonds, or their order, but without interest thereon. Section 12. Funds. The Authority hereby appoints the Security Pacific National Bank, Los Angeles, California, as the 1969 Parking Revenue Bonds Fiscal Agent for the purpose of paying the principal of and interest on any of the bonds presented for payment at its main office in Los Angeles, I. 0 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 Authority 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 Authority shall continue to be the Fiscal Agent of the Authority for all of said purposes until the designation of a successor as such Fiscal Agent, and the Authority agrees that it wilI 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 ail sums required for the payment of the principal of and interest on the bonds presented for payment at the places herein provided at maturity, or on call and redemption or on purchase by the Fiscal Agent prior to maturity. The Fiscal Agent is hereby authorized to redeem the bonds and the interest coupons appertaining thereto when duly presented to it for payment at maturity, or on call and redemption or on purchase by the Fiscal Agent prior to maturity, and to cancel all bonds and coupons upon payment thereof and to return the same so cancelled to the Treasurer. The Fiscal Agent shall keep accurate records of all funds administered by it and of all bonds and coupons paid and discharged by it. The recitals of fact and all promises, covenants and agreements herein and in the bonds of said authorized issue contained shall be taken as statements, promises, covenants and agreements of the Authority, 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, ottler 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 Authority shall appoint a new Fiscal Agent, which may be the corporation resulting from such reorganization. There are hereby created pursuant to the Parking Law by the Fiscal Agent the following funds 1. 1969 Parking Revenue Bonds, Acquisitidn and Construction Fund (herein sometimes 2. 1969 Parking Revenue Bonds, Bond Service Fund, (herein sometimes called “Bond 3. 1969 Parking Revenue Bonds, Reserve Fund (herein sometimes cdled “Reserve Fund”); 4. 1969 Parking Revenue Bonds, Working Capital Fund (herein sometimes called “Working Capital Fund, held by Authority”). Said funds are to be established and maintained to insure payment, when due or payable, whether at maturity or upon redemption prior to maturity, of the principal of and interest on the bonds, includ- ing premiums, if any, due upon the redemption of any thereof and to insure the application of the proceeds of such bonds to the purposes for which the same were issued. Any money placed in any such fund sha2 constitute a trust fund and until the bonds and all interest thereon are paid or until provision has been made for the payment of the bonds at maturity or for redemption thereof prior to maturity, with interest to Ihaturity or to the call date, has been made by setting aside in some trust fund an amount sufficient for said purposes, the moneys in said fund shall be applied only to the purposes for which it was created. to be held and applied as designated herein: called the “Acquisition and Construction Fund”, held by the Authority) ; Service Fund”) ; 18 Section 13. Disposition of Bond Proceeds - Reserve Fund - Bond Service Fund - Working Capital Fund. Concurrently with the delivery of and payment for the bonds there shall be set aside in the Bond Reserve Fund, from the proceeds of the sale of the bmds $68,000. After the foregoing transfer required by this paragraph has been made, there shall be set aside in the Bond Service Fund, from the proceeds of the sale of the bonds an amount which, together with the premium and accrued interest, if any, shall be equal to twelve (12) months’ interest from the date of the bonds. After the foregoing transfers required by the above paragraphs of this Section have been made, there shall be set aside in the Working Capital Fund from the prcceeds of the sale of the bonds the sum of One Thousand Five Hundred Dollars ($1,500). Section 14. Disposition of Proceeds - Acquisition and Construction Fund. After the transfers required by Section 13 hereof have been made, all remaining balance of the proceeds from the sale of the bonds shall be transferred by the Fiscal Agent to the Treasurer of the Authority and placed in the Acquisition and Construction Fund. The moneys so set aside in the Acquisition and Construction Fund shall remain therein until expended for the purpose of carrying out the Project. When acquisition of the Project has been completed in accordance with the Lease Agreement, any remaining balance in the Acquisition and Construction Fund shall be transferred to the Reserve Fund. Section 15. Bond Service Fund. From the date this resolution takes effect all Pledged Revenues received by the Authority shall be placed in the Bond Service Fund and, except as expressly provided in this resolution, shall be used only for the purpose of paying the principal of and interest on the bonds as the same fall due. That portion of the moneys in the Bond Service Fund which is, at any time, in excess of the amount required to pay the principal and interest comins due on or before the next following October 1 and the mount required to pay principal, and interest on the boods in any succeeding year based upon the amount of rental payments provided therefor shall be transferred if necessary to the Reserve Fund until the balance in t%e Reserve Fund is equal to $68,000. Moneys in excess of the foregoing requirements and after making any required transfers under Section 17, i€ necessary, may be used by the Authority to make credits upon the rentals due under t5e Lease Agree- ment by cancellation of all or a part thereof. Moneys in the Bond Service Fund may be temporarily invested in any authorized investment which matures not later than the time fcnds are required, but such investment shall not aEect the obligation of the Authority to cause the full arnpunt required to pay the principal of and interest on the bonds as the same become due to be available in the Bond Service Fund in cash at the time the same shall become due. Any earnings on such investments shall become due and remain a part cf the Bond Service Fund. Section 16. Reserve Fund. Except as expressly provided in this resolution, moneys in the Reserve Fund shall be used only to pay the principal of and interest on the bonds at such times when and to the extent that, at any other time the moneys in the Bond Service Fund received from Pledged Rev- enues are insufficient to pay the principal cf or interest on the bonds as the same become due, and for that purpose moneys in the Reserve Fund may be transEerred to the Bond Service Fund. Moneys in the Reserve Fund may be invested in any authorized investment which matures not later than five years from the date of the investment. Any earnings on such investments shall become and remain a part of the Reserve Fund. Moneys in excess of $SS,OOO shall be transferred to the Bond Service Fund. Moneys in the Reserve Fund may be used to pay the principal and/or interest on the last maturity or maturities of bonds outstanding. Section 17. Working Capital Fund. After setting aside all funds required by Sections 15 and 16 funds sufficient from Pledged Revenue shall be transferred by the Fiscal Agent to the Treasurer of the Authority and placed in the Working Capital Fund and shall be used to the extent available for payment of: 19 1. not (1) All taxes and assessments, if any, of any type or character levied at any time during the term of the Lease hereunder upon the site or any improvements thereon or upon the City’s or the Authority’s interest therein or upon the operation of the property leased or upon the income or other revenue derived by the City or Authority therefrom; (2) Insurance premiums on all insurance required or permitted on the property leased; (3) All costs and expenses which Authority may incur, including but not limited to Fiscal Agent’s fees, costs and expenses as a result of any default by the City under this Agreement, including reasonable attorneys’ fees and the costs and expenses of any suit or action at law to enforce the terms and conditions of this Agreement; (4) If at any time the Authority shall operate the Project by reason of default of the City, all amounts which shall be required to provide for the payment of all costs of maintenance and operation of the Project, including the costs of repairs and replacements, labor costs and insurance; and (5) All sums necessary to maintain an amount of $1,500 in the Working Capital Fund. Moneys in the Working Capital Fund may be invested in any authorized investment which matures later than twelve months from the date of the investment. Any earnings on such investments shall become and remain a part Gf the Working Capital Fund. The City shall pursuant to the Lease Agreement pay the Treasurer of the Authority the balance of any amounts due to pay the foregoing obligations. Section 18. Warranty and Covenants. The Authority shall preserve and protect the security of the bonds and the rights of the bondholders an6 warrant and defend their rights against all claims and demands of all persons. So long as any of the bonds issued hereunder are outstanding and unpaid or so long as provision for the full payment and discharge thereof at maturity or upon redemption thereof prior to maturity through the setting apart in the Bond Service Fund or in a special fund to insure the payment or redemption thereof (as the case may be) of moneys sufficient for that purpose has not been made, the Authority makes the following covenants and agreements under the provisions of the Parking Law which it deems necessary, convenient, desirable and advisable for the better security of the bonds and to make thzm more marketable; and it shall be the duty of each and every officer, representative and employee or‘ the Authority to do and perfcrm each and every act necessary or appropriate for such keeping and performance by such Authority of every such covenant, agree- ment and obligation. Covenant 1. Pmctnd Payment. The Authority shall pay punctually the principal and interest on every bond issued hereunder, together with the premium thereon, if any be payable, on the date or dates, at the place or places, and in the manner mentioned in the bonds and coupons and in accord- ance with their terms, and that the payments into the Bond Service Fund and the Reserve Fund will be made, all in strict conformity with the terms of the bonds and of this resolution, and that it will faithfully observe and perform all of the conditions, covenants, agreements and requirements and obli- gations 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 Authority’s contract with the bondholders. ’ Covenant 2. Discharge Claims. The Authority shall pay and discharge from funds available for that purpose, or require the City to pay and discharge under the terms of the Lease Agreement, all lawful claims for labor, materials and supplies or other charges, which, if unpaid, may become a lien or charge upon any of its revenues charged with the payment of the bcnds issued hereunder, or upon any of its facilities or properties the revenues from which are pledged to said bonds, and which may impair the security of the bonds. 20 I. 0 Covenant 3. Commence Acquisition and Construction. The Authority shall apply the proceeds of the bonds to the accomplishment of the purposes for which the bonds are issued and shall commence acquisition of the Project and continue the same to completion in accordance with the Lease Agreement with all practical dispatch and in an economical manner. Covenant 4. Enforce and Abide by the Lease Agreement. The Authority shall comply with and perform all its obligations under the Lease Agreement, and shall promptly take all steps necessary to enforce the Lease Agreement and to require the City to perform all its obligations thereunder. In the event of any default by the City under the Lease Agreement, the Authority shall promptly pursue and enforce all appropriate remedies under the Lease Agreement, including but not limited to the re- letting or operation of the Project and the collection from the City of all deficiencies as provided in the Lease Agreement, all to the end that the Pledged Revenues from the Project deposited in the Bond Service Fund will be at least equal to the fu;! rentals payable under the Lease Agreement and will (when added to available moneys in the Reserve Fund) be sufficient to pay the principal of and interest on the revenue bonds as the same fall due. The Authority shall not take any action which will have the effect of terminating the Lease Agreement and shall not agree to any amendment of the Lease Agreement which would impair or reduce the security of the holders of the bonds. Covenant 5. Covenant Against Encumbrance, etc.; Use of Csndemnafion or Sale Proceeds. Except for the Lease Agreement and except to the extent permitted herein the Authority shall not mortgage or otherwise encumber, sell, lease or dispose of any of its facilities or properties any revenues of which are charged with the payment of the bonds issued hereunder, or any revenues therefrom, or enter into any lease or agreement which might impair or impede the operation of such facilities or properties, or any part thereof, or might otherwise impair or impede the rights of the bondholders with respect to such revenues. In the event of any default by the City under the Lease Agreement this covenant shall not be construed to prevent the Authority, acting in accordance with the Parking Law and the Lease Agreement, from: (1) contracting for the operation or management of any of its facilities or properties; (2) leasing of the operation of the property. If any portion of the Project shall be taken by eminent domain or other proceedings authorized by law, the net proceeds realized therefrom may be used to acquire or construct substitute parking facilities. In the event the proceeds cannot or are not so used, such proceeds shall be placed in the Redemption Fund and used to redeem bonds in accordance with the terms thereof, and the balance of such proceeds shall become the property of the Authority, subject to such legal or equitable claims, based upon conditions and restrictions of record, as may be enforceable against the Authority. Covenant 6. Insurance. Authority shall at all times maintain or cause to be maintained with responsible insurers all such insurance on the properties (valued as defined below) which is customarily maintained with respect to properties of like character against accident to, loss of or damage to such properties. Notwithstanding the generality of the foregoing, the Authority shall not be required to maintain or cause to be maintained any insurance which is not available from reputable insurers on the open market or more insurance than is specifically referred to below. Authority shall: (a) Keep or cause to be kept (or if City elects, City shall keep) a policy or policies of insurance against loss or damage to the property covered by the Resolution resulting from vanda- lism, malicious mischief, riot and civil commotion, and such perils ordinarily defined as “extended coverage’’ and other perils as Authority and the City may agree should be insured against on forms and in amounts satisfactory to each. Such insurance shall be maintained in an amount not less than the full insurable value of the properties (such value to include amounts spent for acquisition 21 of the Project, engineering, legal and administrative fees and Project inspection and supervision} or the amount of Authority’s outstanding Bonds, whichever amount is the less, subject to deductible conditions of not to exceed $10,000 for any one loss. The term “fuI1 insurable value’’ as used in this section shall mean the actual replacement cost, using the items of value set forth above (including the cost of restoring the surface of grounds owned or leased by the Authority but ex- cluding the cost of restoring trees, plants and shrubs), less physical depreciation. Said “full insurable value” shall be determined from time to time but not less frequently than once in every thirty-six (36) months. (b) Maintain or cause to be maintained use and occupancy or business interruption or rental income insurance against the perils of vandalism and malicious mischief and such other perils ordinarily defined as “extended coverage” in an amount equal to not less than twelve (12) months’ rental; and (c) Maintain or cause to be maintained public liability insurance against claims for bodily injury or death, or damage to property occurring upon, in or about the property, such insurance to afford protection to a limit of not less than $250,000 with respect to bodily injury or death to any one person, not less than $1,000,000 with respect to bodily injury or death to any number of persons in any one accident, and property damage liability insurance in an amount not less than $50,000. All insurance herein provided for shall be effected under policies issued by insurers of recognized responsibility, licensed or permitted to do business in the State of California. All policies or certifkates issued by the respective insurers for insurance shall provide that such policies or certificates shall not be cancelled or materially changed without at least ten (IO) days prior written notice to the Fiscal Agent, and shall carry loss payable endorsements in favor of the Fiscal Agent where applicable. The copies of such policies shall be deposited with the Fiscal Agent by the Authority, together with appropriate evidence of payment of the premiums therefor; and, at least ten (10) days prior to the expiration dates of expiring policies or contracts held by the FiscaI Agent, copies of originals of renewal or copies of new policies on contracts or certificates, shall be deposited with the Fiscal Agent. All procseds of insurance with respect to loss or damage to the property shall be paid to the Fiscal Agent to be used pursuant to the Lease for the repair, restoration or replacement of the property destroyed or damaged. Upon payment thereof to the Fiscal Agent, and ( 1 ) if the Project is to be repaired or rebuilt, the Fiscal Agent shall transfer the same to the Treasurer of the Authority who shall deposit the same in the Acquisition and Construction Fund for application as provided with respect to moneys in such fund, or (2) if the Project is not to be repaired or rebuilt, the Fiscal Agent shall deposit the same in the Redemption Fund for application as provided for moneys in such fund. Covenant 7. Records and Accounts. The Authority shall: -. (a) keep proper and complete books of records and accounts covering all its facilities and properties, any revenues of which are pledged to the payment of the bonds issued hereunder, and covering all revenues and funds controlled by this resolution, separate from all other records and accounts, in which complete, correct and current entries shall be made of all transactions relating to such facilities, properties, revenues and funds and of all receipts, payments, transfers and other transactions relating thereto. Said records and accounts shall at all times be subject to the inspection of the holders of not less than 10% of the outstanding bonds or their representative or representatives authorized in writing; (b) cause such records and accounts to be audited within 90 days after the close of each fiscal year by an independent certified public accountant or firm of certified public accountants. A copy of the report of such accountant or firm shall be filed with the Fiscal Agent and be 22 available for inspection by any bondholder at the ofice of the Treasurer, and the Authority shall furnish a copy of said report, or a summary thereof, upon request to any bondholder and to any person, firm or corporation who originally purchased the bonds from the Authority; (c) at such time or times as the City Council may prescribe, file therewith a detailed report of all its transactions, including a statement of all revenues and expenditures; (d) at least once annual!y in the manner set forth in Section 32664 of the Streets and High- ways Code, publish a statement of all its financial affairs, audited by such accountant or accounting firm. Covenant 8. Additiapnal Bonds or Indebtedness. The Authority shall not issue any additional bonds, except refunding bonds or incur any other liability or indebtedness, payable in whole or part from the Pledged Revenues or the Reserve Fund, but the Authority may issue bonds, or incur liability or indebtedness, payable from any revenues or funds of the Authority other than the Pledged Revenues or Reserve Fund. Covenant 9. Maintain and Preserve the Project. The Authority shall, or shall cause City as lessee under the Lease Agreement or Authority’s agents or lessees in the case of default, to operate, maintain and preserve the Project in good repair and working order and to operate the Project in an eficient and economical manner; provided, however, that in the case of default the Authority or its agents or lessees,’with the consent of the City, may lease or rent concessions, or lease or rent the Project or any part thereof; or otherwise provide for tie operating of the Project or any part thereof. Covenant 10. Maintenance of Revenues. The Authority shall, if it should operate the Project by reason of default by the City, fix, prescribe and collect rates, tolls, fees, rentals or other charges in connection with the services and facilities furnished from the Project sufficient to pay principal of and interest ox the Bonds as they become due, together with ail expenses of operation, maintenance and repair of the Project and such additional sums as may be required for the Reserve Fund; provided, however, that all rates, tolls, fees, rentals or other charges in connection with the services and facilities furnished by the Project shall be subject to such provisions, if any, relative thereto as may be contained in the Lease Agreement. Section 19. Investment of Funds. Obligations purchased as an investment of moneys in any fund hereby created which are herein authorized to be invested shall be deemed at all times to be a part of such fund and tbe interest accruing thereunder and any profit realized from the investment shall be credited to such fund and any loss resulting from such investment shall be charged to such fund but net earnings resulting from such investments may and shell be transferred in cam where such transfer is expressly permitted or required by this resolution. The Authority shall sei1 at the best price obtainable or present for redempticin any obligations so purchased whenever it shall be necessary to do so in order to provide moneys to meet any payment or transfer from such fund. For the purpose of determining at my given time the balance in any such fund or for the purpose of transferring investments from one fund to another fund any such investment constituting a part cf a fund shall be valued at the then estimated or appraised market value of such investment. Section 20. Lost, Destroyed or Mutilated Bonds. In the event that any bond Gr any interest coupon pertaining thereto is lost, stolen, destroyed or mutilated, the Authority 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 Authority deems such surety bond necessary, as may €rom time to time be determined and pre- scribed by resolution. The Authority may authorize such new bond or coupcin or coupons to be signed and authenticated in such manner as it determines in said resolution. 23 Section 21. Cancellatkin of Bonds. All bonds and coupons surrendered to any fiscal agent of the Authority for payment upon maturity or for redemption prior to maturity shall upon payment therefor be cancelled immediately and forthwith transmitted to the Treasurer. All of the bonds and interest coupons surrendered to the Fiscal Agent for payment or redemption shall upon payment therefor be cancelled immediately. All of the cancelled bonds and interest coupons shall remain in the custody of the Treasurer until destroyed pursuant to due aathorization. Section 22. Consent of Bondholders. The consents of bondholders provided for in Sections 22 to 28, inclusive, hereof shall relate soIeIy to the amendment, waiver or modification of the covenants specified in Section 18 hereof and shall not be effective to amend, waive or modify any other provisions of this resolution or of any of the proceedings for the issuance of said bonds. Any act relating to the amendment, waiver or modification of any of the said covenants consented to by the Authority and by bondholders holding sixty per cent (60%) in aggregate principal amount of the outstanding bonds, exclusive of issuer-owned bonds, shall be binding upon the holders of all the bonds and interest coupons, whether such coupons be attached to bonds or detached theretrom, and shall not be deemed an infringement of any of the provisions of this resolution or of the Parking Law, 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 my 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 Authority or any officer thereof from taking any action pursuant thereto. Section 23. Calling Bondholders’ Meeting. If the Authority shall desire to obtain any such con- sent it shall duly adopt a resolution calling a meeting of bondholders for the purpose of considering the action, the consent to which is desired. Section 24. Notice of Meeting. Notice specifying the purpoze, place, date and hour of such meeting shall be published once in each of four successive caiendar weeks in a newspaper of general circulation in the City of Carlsbad, California, the first publication to be 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 Authority shall, on or before the first publication of such cotice, cause a similar notice to be mailed, 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 Authority, in its discretion. The actual receipt by any bondholder of notice of any such meeting shall not be a condition precedent to the holding of such meeting, and failure to receive such notice shall not affect the validity of the proceedings thereat. A resolution of the Authority 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. Section 25. Voting Qualifications. Any bondholder may, prior to any such meeting, deliver his bond or bonds to any agency designated by the Authority 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 Fiscal Agent 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 bond- holders, and no bondholder shall be entitled to vote at such meeting unless his name appears upon such Iist or unless he shall present his bond or bonds at the meeting or a certificate of deposit thereof, satisfactory to the Authority, executed by a bank or trust company. No bondholder 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. Section 26. Issuer-Owned Bonds. The Authority shall present at the meeting a signed certificate, verified by the Fiscal Agent, stating the maturities and serial numbers of all bonds owned by, or held for account of, the Authority or the City, directly or indirectly. No perscn 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 Authority or the City, directly or indirectly, and no such bond (in this resolution referred to as “issuer-owned bond”) shall be counted in determining whether a quorum is present at the meeting. Section 27. Quorum and Procedure. A representation of at least sixty per cent (60%) 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 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 Authority 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 secretary. At any meeting each bondhoIder 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 Authority, by its duly authorized representa- tive, may attend any meeting of the bondholders, but shall not be required to do so. Section 28. Vote Reqarired. At any such meeting heId as aforesaid there shall be submitted for the consideration and action of the bondholders a statement of proposed action, consent to which is desired, and if such action shall be consented to and approved by bondholders holding at least sixty per cent (60%) in aggregate amount of the bonds then outstanding (exclusive of issuer-owned bonds) the chairman and secretary of the meeting shall so certify in writing to the Authority, 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 con- clusive evidence and the only competent evidence of matters stated in such certificate relating to pro- ceedings taken at such meeting. Section 29. Bond and Coupon Forms. The bonds shall be payable to bearer, shall be issued in negotiable form, and shall be negotiable, and the form of the bonds and interest coupons thereof shall be substantially as follows: UNITED STATES OF AMERICA STATE OF CALIFORNIA COUNTY OF SAN DIEGO PARKING AUTHORITY OF THE CITY OF CARLSBAD 1969 PARKING REVENUE BOND No. .________________.__---. $ ---------.---__.---- *._- The PARKING AUTHORITY OF THE CITY OF CARLSBAD, a public corporation sit- uated in the City of Carlsbad, County of San Diego, State of California, FOR VALUE RECEIVED, hereby promises to pay, solely from the Pledged Revenues and certain other limited funds, as __ 25 hereinafter provided, to the bearer or, if this bond be registered, to the registered owner hereof, on October 1, 19 ......, upon presentation and surrender of this bond, the sum of FIVE THOUSAND DOLLARS ($5,000), with interest thereon from the date hereof at the rate of ....-... % per annum, payable semiannually on the first days of April and October of each and every year, until this bond is paid, upon presentation and surrendx of the respective interest coupons hereto attached; pro- vided, however, that if at the maturity date of this bond or, if the same is redeemable prior to maturity 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 men- tioned, 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 Fiscal Agent in Los Angeles, California, or, at the option of the holder, at any paying agency of the Authority in Chicago, Illinois, or New York, New York. This is one of a duly authorized issue of bonds of the Authority, all of which have been issued under and pursuant to the Parking Law of 1949 (being Part 2 of Division 18, of the Streets and Highways Code of the State of California) and the creation of said issue and the terms and conditions of the bonds are provided for by the resolution of said Authority authorizing the bonds adopted ___ ________ ~ ________ ----, 1969, designated Resolution No. _____ ~ ____________ , and, pursuant to said Parking Law of 1949, this reference incorporates all of the provisions of said resolution into the body of the bonds and their coupons; and by acceptance hereof the holder of this bond and the coupons hereto attached assents to said terms and conditions; and each taker and subsequent holder of the bonds or coupons, whether the coupons are attached to or detached from the bonds, has recourse to all of the provisions of the indenture and is bound thereby. 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 the laws of the State of California. The bonds of this issue shall constitute special obligations, and evidence a special indebted- ness, of the Authority, which shall be a charge upon, and payable, both as to principaI and interest, and as to any premiums upon the redemption of any thereof, solely from, the Pledged Revenues and certain other limited funds, as specified herein, and in said Resolution No. _____._-___.____._ and in the proceedings for their issuance, and shall not constitute obligations, nor evidence any indebted- ness, of the City of Carlsbad or of the State of California. In the manner provided in said Resolution, certain obligations mentioned in said Resolution may be waived or modified with the consent of the holders of 60% in aggregate principal amount of the outstanding bonds, exclusive of issuer-owned bonds. Unless this bond matures on or prior to October 1, 1979, it is caIIabZe and redeemable prior to maturity in acccrdance with the provisions for redemption endorsed hereon. This bond and the coupons hereto attached are negotiable instruments and shall be negoti- able by delivery, This bond may be registered as to principal only or as to both principal and interest, in accordance with the provisions for registration endorsed hereon. It is hereby certified acd recited that any and all acts, conditions and things required to exist, to happen and to be performed precedent to and in the incurring of the indebtedness evidenced by this bond and in the issuance of this band exist, have happened, and have been performed in due time, form and manner as required by the Constitution and Statutes of the State of California, and that this bond is within every debt and other limit prescribed by the Constitution and Statutes of the State of California. IN WITNESS WHEREOF, said Parking Authority of the City of Carlsbad has caused this bond to be signed by the Chairman of the Authority and the City Treasurer of the City as ex officio Treasurer of the Authority, by their facsimile signatures, countersigned by the Clerk of the Authority, and sealed with the corporate seal of the Authority, and the interest coupons hereto 26 attached to be signed by said Treasurer by his facsimile signature, and has caused this bond to be dated the first day of October, 1969. Chairman of the Parking Authority of the City of Carlsbad, California City Treasurer of the City of Carlsbad as ex officio Treasurer of said Authority COUNTERSIGNED: Clerk of the Parking Authority of the City of Carlsbad, California (SEAL) (COUPON' FORM) On the first day of The PARKING AUTHORITY OF THE CITY OF CARLSBAD, CALIFORNIA, will pay to the bearer, at the office of the Fiscal Agent of said City, in the City of Los Angeles, California or at the option of the holder hereof, at any paying agency of the Authority in Chicago, Illinois, or New York, New York, out of the Pledged Funds and certain other limited funds as set forth in the bond to which this coupon is attached and not out of any other fund or moneys of the Authority, the sum of in lawful money of the United States of America, being the semiannual interest then due on 1969 PARKING REVENUE BOND NO. dated October 1, 1969 ____ ~ ____ ~ __________ 19 ____________ Coupon No. .................... $ __________________ City Treasurer of the City of Carlsbad as ex oEcio Treasurer of said Authority On the reverse s le 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. On the reverse side of the bonds there shall be printed substantially the following: PROVISIONS FOR REDEMPTION PRIOR TO MATURITY In the event of loss of, substantial damage to or condemnation of the whole or any substantial part of the Project, so as to render the same unusable, all or any part of the Bonds at that time outstanding, may, at the option of the Authority, be called and redeemed prior to maturity on any 27 e succeeding date, at a redemption pnce equal to the principal amount thereof with accrued interest to the date of redemption plus the premium applicable thereto as hereinafter set forth in the succeeding paragraph of this section, regardless of maturity dates relating to call therein, but only in the manner and only from the funds as hereinafter provided in the case of redemption. If less than all bonds are called pursuant to this paragraph, Treasurer shall determine a principal amount in each maturity to be called so that approximately equal annual debt service will prevail. Bonds to be then called in each maturity will be selected by lot. Except as provided in the preceding paragraph unless this bond matures on or prior to October 1, 1979, 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 Authority, on October 1, 1979, or on any interest payment date thereafter prior to maturity, upon at least 30 days’ prior notice published in a newspaper in the City of New York at a re- demption price equal to the principal amount thereof plus a premium (percentage of par value) equal to % of 1% for each year or remaining fraction of a year between the date of redemption and the date of maturity, but in no event shall the premium exceed 5%. Bonds of the issue of which this bond is a part are so redeemable only in inverse order of maturity and bond number. PROVISIONS FOR REGISTRATION This bond may be registered in the name of any person as the registered owner hereof, as to principal only or as to both principal and interest, and, if registered in either of said forms may be changed to registration in the other of said forms or discharged from registration. Each registration, transfer after registration, fuUy registered form of registration, or dis- charge from registration of this bond shall be entered by the Fiscal Agent in books kept by him for the purpose and noted by him in the registration blank below. Registration as to principal only shall not affect the cegotiability by delivery of the coupons pertaining hereto. Upon registration as to both principal and interest, all unmatured coupons pertaining hereto shall be surrendered to the Fiscal Agent and may be preserved or cancelled in his discretion. So long as this bond is registered no transfer hereof shall be valid for any purpose unless made by the registered owner and entered and noted as herein provided, and the principal hereof and any redemption premium shall be payable only to the registered owner, or to his order. Interest on this bond, if registered as to both principal and interest, shall be payable to the person whose name appears upon the registry books as the registered owner hereof at the close of business on the tenth day preceding the interest payment date, or to his order. ff this bond is registered as to both principal and interest and its registration is changed to registration as to principal only, or if it is discharged from registration, there shall be attached hereto coupons representing interest hereon to become due thereafter to the date of maturity hereof. In lieu thereof, and upon surrender and cancellation hereof, the Fiscal Agent in his discretion 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 siznatures 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 hereon from registration shall be effected by an entry on the registry books, and a notation in the blank below, that this bond is payable to bearer, whereupon this bond shall become an unregistered bearer instrument, negotiable by delivery as if it had never been registered. Each request for registration, transfer, change or discharge must be in form satisfactory to the Fiscal Agent and must be made in writing, signed by the registered owner, or by his agent duly authorized in writing, or by the bearer, as the case may be. 28 Date of In Whose Name Manner of Registration Registered Registntion Signature of Fiscal Agent ........................ ...- ..... ............................. ........................................ ...-..................-...e..... I--.. ........................................ ........................................ ........................................ ................ .... ...............-.... ............... ................................ ....-. .................................... __- ........................... -.----...-.. Section 30. Proceedings Constitute Contract. The provision of this resolution and of the resolu- tions providing for the sale of the bonds and awarding the bonds and fixing the interest rate or rates thereon and all other resolutions or ordinances adopted in connection with the authorization of the bonds shall constitute a contract between the Authority and the holder of such bonds, not subject to repeal, and not subject to modification other than to the extent and in the manner provided in this resolution. Said contract is made under and is to be construed in accordance with the laws of the State of California. The rights, limitations, powers and duties arising upon breach of the Authority of any of the covenants, conditions or obligations contained in said contract shall be those provided by the laws of the State of California, including, without limitation, said Parking Law. In addition to all other rights conferred upm a bondholder and subject only to any contractual restrictions binding upon him a bondholder may:. (a) By mandamus, suit, action, or proceeding at law or in equity, compel the Authority and its members, officers, agents or employees to perform every term, provision, and covenant contained in any contract of the Authority with or for the benefit of the bondholder, to carry out all covenants and agreements of the Authority, and to fulfill the duties imposed upon the Authority by said Parking Law. (b) By suit, action, or proceeding in equity, enjoin any acts or things which are unlawful and in violation of any of the rights of the bondholder. Section 31. 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 circunstances, shall be deemed severable and shall not be affected, and this resolution and the bands issued pursuant hereto shall remain valid and the bondholders shall retain all valid rights and benefits accorded to them under this resolution and the Constitution and laws of the State of California. Section 32. Effective Date. This resolution shall take effect upon adoption. 7-, * ADOPTED, SIGNED AND APPROVED this 21st day of August, 1969. ATTEST: /s/ D. R. DAUGHERTY Chairman of the Parking Authority of the City of Carlsbad, California /s/ MARGARET E. ADAMS Clerk of the Parking Authority of the City of Carlsbad, California (SEAL) 29 e a STATE OF CALIFORNIA COUNTY OF SAN DIEGO } ss. I, MARGARET ADAMS, Clerk of the Parking Authority of the City of Carlsbad, California, DO “BY CERTIFY that the foregoing resolution was duly adopted by the Parking Authority of the City of Carlsbad at a meeting of said Parking Authority held on the 21st day of August, 1969, and that it was so adopted by the following vote: AYES: CANNON, DAUGHERTY, SNEDEKER NOES: NONE ABSENT: KILLEN, SUGG /s/ MARGARET E. ADAMS Clerk of the Parking Authority of the City of Carlsbad, California 30 J I L 0 0 LEASE AGREEMENT This Agreement made as of the 21st day of August, 1969, by and between the Parking Authority of the City of Carlsbad (hereinafter sometimes referred to as the “Authority”), a public body corporate and politic organized and existing under the laws of the State of California, and the City of Carlsbad (hereinafter sometimes called the “City”), a municipal corporation of the State of California. WITNESSETH: WHEREAS, the Authority is a public corporation created under and exercising its powers pursuant to the Parking Law of 1949, Part 2 of Division 18, commencing at Section 32500, of the Streets and Highways Code of the State of California, and under said Law has the power to issue revenue bonds for the purpose of financing public parking facilities; and WHEREAS, the Authority proposes to acquire that certain land in the City of Carlsbad, California (hereinafter sometimes called the “Site”), which is described in Exhibit A attached hereto, and the off-street parking improvements thereon; and WHEREAS, the estimated cost and expense of said acquisition is $1,535,000; and WHEREAS, the Authority proposes to issue revenue bonds in the principal amount of $1,535,000 for the purpose of the acquisition and financing of said public parking facilities; and WHEREAS, under said Parking Law of 1949, and particularly Section 32957 thereof, the Authority has the power to lease said parking facilities to the City without the necessity of inviting bids; Now, THEREFORE, in consideration of the mutual promises and agreements herein contained, the parties hereto agree as follows: Section 1. Issuance and Sale of Bonds. The Authority agrees that, as promptly as feasible following the date of this Agreement, it will use its best el’forts to issue and sell revenue bonds in a principal amount which, together with other available funds of the Authority, is estimated to be sufficient to make the acquisition referred to in the recitals hereof and in Section 2 hereof together with the improvements mentioned in Section 2 hereof; and to pay other costs and expenses in connection with such acquisition. Said bonds are hereinafter sometimes referred to as the “revenue bonds” of the Authority. Section 2. Acquisition of Site and Improvements. The Authority agrees to acquire, with the proceeds of the revenue bonds and other available funds, the Site and improvements thereon and perform all undertakings incidental or advantageous thereto so that the Site is reasonably suitable for use for parking purposes. Such acquisition shall be made as promptly as feasible. The City shall be reimbursed for advances made, if any, for legal, financing consultant and engineer- ing fees and other costs incurred by the City in connection with said acquisition from the proceeds of the revenue bonds. Section 3. Lease of Parking FaciBties. The Authority hereby leases to the City the Site tosether with the parking improvements con- structed thereon. The term of the lease shall commence on the date the Site is conveyed to the Authority and shall terminate on the date the revenue bonds have been retired or provision for payment made. The City agrees to pay rental for such use in the amount of $142,250 during each fiscal year of this 1 .EXHIBIT ‘B Lease Agreement (hereinafter referred to as “rental”), except that no rental shall be payable by the City for occupancy prior to October 1, 1970. Commencing October 1, 1970 said rentals shall be due in quarterly installments in advance on the first days of October, January, April and July and shall be payable without penalty on or before the last days of October, January, April and July of each fiscal year. 4 Section 4. Adjustment of Rent. The rental above set fcrth is based upon the schedule for adjustment of rental, marked Exhibit B and made a part hereof. Such schedule is used for computing the yearly rental necessary for Authority to receive to enable it to pay the principal of and interest on its bonds so that they wiU be serviced and retired as set forth in the Resolution and furnish the Authority with the necessary reserves. When the interest rate or rates on the Authority’s Bonds are known, Authority and City shall recompute the rental in the same manner, based upon said figures, and shall adjust the rental upwards or downwards to the new figure so determined. Section 5. Maintenance, Operations, Encumbrances, etc. The City shall, at its own expense, maintain during the term of the lease hereunder the Site and all improvements thereon in good order, condition and repair and shall pay all costs and expenses of operating the same as parking facilities, it being understood and agreed that the Authority is obligated to provide only the Site and the improvements thereon as expressly provided herein and has no obliga- tion to pay any cost or expense of any kind or chzracter in connection with or related to the management, operation or maintenance of the parking facilities during the term of the lease hereunder. The City agrees to keep the Site and the improvements thereon free and clear of all liens, charges and encum- brances. The Authority agrees that, at the time the term of the lease hereunder commences, it will have fee title to the Site, subject to such conditions, reservations, exceptions and rights of way of record as do cot substantially interfere with the use of the Site by the City for parking purposes. Section 6. Taxes, Assessments, Insurance, etc. As rental in addition to and after the commencement of the rental under Section 3 (hereinafter referred to as “additional rental”), the City agrees to pay and discharge (I) all taxes and assessments, if any, of any type or character levied at any time during the term of the lease hereunder upon the Site or any improvement thereon or upon the City’s or the Authority’s interest therein or upon the operation of the property leased or upon income or other revenue derived by the City or by the Authority therefrom; (2) the insurance premiums on all insurance required or permitted on the property leased; (3) all costs and expenses which the Authority may incur including but not limited to fiscal agent’s fees, costs and expenses of maintenance and operation as a result of any default by the City under this Agreement, including reasonable attorneys’ fees and the costs and expenses of any suit or action at law to enforce the terms and conditions of this Agreement; and (4) amounts necessary to maintain a working capital fund of $1500 for the foregoing. The additional rental payable hereunder shall be paid by the City within ten (10) days after notice in writing from the Authority to the City stating the amount of additicnal rental then due and payable and the purpose thereof; provided, that the City’s liability for additional rental shall be limited to the balance due after any credits under the resolution issuing the bcnds of the Authority. Section 7. Source of Funds for Rentals. (a) Based upon reports and other evidence submitted the parties hereto have each determined and have agreed that the rentals payable by the City hereunder (including rentals paya,ble under Sections 3, 4 and 6 hereof) represent fair rental values for the Site and improvements leased here- under. Said rentals shall be payable year by year as specified herein for and in consideration of the 2 I. -’ , 0 right of use and occupancy from year to year as granted by this Agreement and in consideration of the continued quiet use and enjoyment thereof during the term specified herein. (b) The City hereby agrees to take such actions as may be necessary to include and maintain in its budget for each fiscal year all rentals payable by the City during such fiscal year, to make the necessary appropriations for all such rentals and to provide the funds necessary to meet such appro- priations, it being understood that the Authority will pledge the rentals due hereunder for the payment and security of the revenue bonds, and the interest thereon, issued as specified in Section 1 hereof. Section 8. Additions and Improvements. The City shall have the right during the term specified in this Agreement, at its own expense, to make any additions to or improvements of the Site and improvements leased hereunder which do not impair the utility thereof as parking places, to attach fixtures, structures or signs thereto, and to affix any personal property to the improvements on the Site. Title to all personal property so affixed shall remain in the City. Section 9. Insurance. Authority shall, during the term of this Agreement,. keep or cause to be kept a policy or policies of insurance against loss or damage to the Site and the improvements thereon resulting from fire, lightning, vandalism, malicious mischief, riot and civil commotion and such perils ordinarily defined as “extended coverage” and other perils as Authority and City may agree should be insured against on forms and in amounts satisfactory to each. During the term of this Agreement, Authority shall keep or cause to be kept public liability and property damage policies protecting both Authority and City on forms and in amounts satisfactory to each. The Authority may also carry or cause to be carried such other insurance as is required by the resolution providing for the issuance of the revenue bonds. All premiums and charges paid by Authority for all of the aforesaid insurance shall be paid to the Authority in accordance with the provisions of Section 6. Any such premium for a period partly within such period shaIl be prorated. At the option of the City any insurance required by Authority hereunder may be provided by the City. Notwithstanding the generality of the foregoing, the Authority shall not be required to maintain or cause to be maintained any insurance which is not available from reputable insurers on the open market or more insurance than is specifically referred to above. Section 10. Abatement of Rental. The rentals hereunder shall abate during any period in which by reason of any damage or destruction there is a substantial interference with the use and occupancy by the City. If only a portion of the parking facilities is rendered so untenantable, the rental shall abate in the proportion which the parking capacity of such portion bears to the total parking capacity of the facilities immediately prior to such damage or destruction. Such abatement shall continue for the period commencing with such destruction or damage and ending with the substantial completicn by the Authority of the work or repair or reconstruction. In the event of any such damage or destruction, this Agreement shall continue in full force and effect and the City waives any right to terminate this Agreement by reason of any such damage or destruction. 3 ,’ I. t 0 Section 11. City’s Obligation to Operate. The City shall be obligated to so use and operate the parking facilities leased so as to afford to the public the benefits contemplated by this Agreement and to permit the Authority to carry out its covenants to its bondholders. Section 12. Assignment and SnbIease. Neither this Agreement nor any interest of the City herein shall, at any time after the date hereof, without the prior written consent of the Authority, be mortgaged, pledged, assigned or transferred by the City by voluntary act or by operation of law, or otherwise, except as specifically provided herein. The City shall at all times remain liable for the performance of the covenants and conditions on its part to be performed, notwithstanding any assigning, transferring or subletting which may be made. The City shall have the right to sublease or permit the use by others of all or any part of the facilities leased, but nothing herein contained shall be construed to relieve the City from its obligation to pay rentals as provided in this Agreement or relieve the City from any other obligations contained herein. The Authority may issue its revenue bonds as contemplated by Section 1 hereof, may pledge to the payment of said bonds and the interest thereon the rentals to be received hereunder, and may make all necessary covenants for the protection and security of the bondholders. Section 13. Eminent Domain. If the whole of the Site together with any improvements tliereon, or so much thereof as to render the remainder unusable €or parking purposes, shall be taken under the power of eminent domain, then this Agreement shall terminate. In such event the rent provided herein shall abate. If less than the whole of the Site, together with any improvements thereon, shall be taken under the power of eminent domain, and the remainder is usable for parking purposes, then this Agreement shall con- tinue in full force and effect as to such remainder and the parties waive the benefit of any law to the contrary. In such event there shall be a partial abatement of the rent hereunder in an amount equivalent to that portion of the rent hereunder for the portion taken which the parking capacity of the portion taken bears to the totaI previous parking capacity of the Site and the improvements thereon. Any award made in eminent domain proceedings for the taking or damaging of the Site or the improvements thereon in whole or jn pari shall be paid to the Authority for the benefit of the holders of the outstanding revenue bonds of the Authority and shall be used as provided in the resolution under which the revenue bonds are issued subject to such reversionary or other rights to share in any such award as may be contained in any document of record relating to the site. The City shall have no interest in or thereto and shall not be entitled to any part of such award. Section 14. Surrender of Leased Premises. Upon the expiration of this Agreement the City agrees that it shall surrender to the Authority all property then under lease hereunder, together with any improvements thereon, in good order and condition and in a state of repair that is consistent with prudent use and conscientious maintenance except for reasonable wear and tear. Section 15. Right of Entry. The Authority and its designated representatives shall have the right to enter upon the leased property during reasonable business hours (and in emergencies at all times), (i) to inspect the same, (ii) for any purpose connected with the City’s rights or obligations under this Agreement, and (iii) for all other lawful purposes. Section 16. Liens. The City agrees to pay, when due, all sums of money that may become due for, or purporting to be for, any labor, services, materials, supplies or equipment alleged to have been furnished or to be 4 I. e furnished to or for the City in, upon or about the leased property and which may be secured by any mechanics’, materialmen’s or other lien against the leased property, and/or the Authority’s interest therein, and will cause each such lien to be fully discharged and released at the time the performance of any obligation secured by any such lien matures and/or becomes due, provided, however, that if the City desires to contest any such lien, it may do so, but notwithstanding any such contest, if my, such lien shall be reduced to final judgment and such judgment or such process as may be issued for the enforcement thereof is not promptly stayed, or if so stayed and said stay thereafter expires, then and in any such event the City shall forthwith pay and discharge said judgment. Section 17. Taxes. The parties understand that the leased property constitutes public property free and exempt from all taxation; however, the Authority agrees to take whatever steps may be necessary, upon written request by the City, to contest any proposed tax or assessment, or to take steps necessary to recover any tax or assessment paid. The City agrees to reimburse the Authority for any and all costs and expenses thus incurred by the Authority. Section 18. Quiet Enjoyment. The parties hereto mutually covenant and agree that the City, by keeping and performing the covenants and ,agreements herein contained, shall at all times during the several terms, peaceably and quietly have, hold, and enjoy the leased property, without suit, trouble or hindrance from the Authority. Section 19. Law Governing. This Agreement shall be governed exclusively by the provisions hereof and by the laws of the State of California, subject to the waivers, exclusicns and provisions herein contained. Section 20. Nofkes. All notices, statements, demands, requests, consents, approvals, authorizations, offers, agreements, appointments or designations hereunder by either party to the other shall be in writing and shall be sufficiently given and served upon the other party, if sent by United States registered mail, return receipt requested, postage prepaid and addressed as follows: City - City Clerk, City Hall, Carlsbad, California. Authority - Clerk of the Authority - At such address as Authority shall designate for such purpose. Section 2 1. Waiver. The waiver of the Authority of any breach by the City of any term, covenant or condition hereof shall not operate as a waiver of any subsequent breach of the same or any other term, covenant or condition hereof. Section 22. Default by City. If (a) the City shall fail to pay any rental payable hereunder within fifteen days from the date such rental is payable, or (b) the City shall fail to keep any such other terms, covenants or conditions contained herein for a period of twenty-five days after written notice thereof from the Authority to the City, or (c) the City shall abandon or vacate the premises, or (d) the City’s interest in this Agreement or any part thereof shall be assigned or transferred without the written consent of the Authority, either voluntarily or by operation of law, or (e) the City shall file any petition or institute any pro- ceedings where or whereby the City asks or seeks or prays to be adjudicated a bankrupt, or to be discharged from any or all of its debts or obligations, or offers to the City’s creditors to effect a composition or extension of time to or to effect a plan of reorganization, pay the City’s debts, or asks, seeks or prays for a reorganization or for a readiustment of the City’s debts, or for any other similar relief, or (f) any such petition or any such proceedings of the same or similar kind or character shall be filed, instituted or taken against the City, then and in any of such events the City shall be deemed to be in default hereunder. If the City should, after notice of such default, fail to remedy any default with all reasonable dispatch, in not exceeding thirty days, then the Authority shall have the right, at its option, without any further demand or notice (i) to terminate this Agreement, if such termination is then permitted under the provisions of the resolution under which the revenue bonds are issued, and to re-enter the, leased property and eject all parties in possession thereof therefrom, using all necessary force so to do, or (ii) to re-enter the leased property and eject all parties therefrom, using all necessary force so to do, and, without terminating this Agreement, re-let the leased property, or any part thereof, as the agent and for the account of the City upon such terms and conditions as the Authority may deem advisable, in which event the rent received on such re-letting shall be applied first to the expenses of re-Ietting and collection, including necessary renovation and alteration of the leased property, a reasonable attorney’s fee, and any real estate commissions actually paid, and thereafter toward payment of all sums due or to become due to the Authority hereunder, and if a sufficient sum shall not be thus realized to pay such sums and other charges, the City sh2lI pay the Authority semiannually any cumulative net deficiency existing on the> date when rentals are due hereunder. The foregoing remedies of Authority are in addition to and not exclusive of any other remedy of Authority. Any such re-entry shdl be allowed by the City without let or hindrance and the Authority shall not be liable in damages for any such re- entry or be guilty of trespass. The term “re-let” or “re-letting” as used in this Section shall include, but not be limited to, re-letting by means of the operation by the Authority of the parking facilities and the collection of fees and charges for parking therein. Section 23. Net Lease. This Agreement shall be deemed and construed to be a “net-net lease” and the City hereby agrees that the rentals provided for therein shall be an absolute net return to the Authority, free and clear of any expenses, charges or set-offs whatsoever. Section 24. Execution. This Agreement may be simultaneously executed in any number of counterparts, each of which when so executed shall be deemed to be an original, but all together shall constitute but one and the same Agreement, and it is also understood 2nd agreed that separate counterparts of this Agreement may be separately executed by the Authority and the City, all with the same full force and effect as though the same counterpart had been executed simultaneously by both the Authority and the City. Section 25. Validity. If any one or more of the terms, provisions, promises, covenants or conditions of this Agreement shall to any extent be adjudged invalid, unenforceable, void or voidable for any reason whatsoever by a court of competent jurisdiction, each and all of the remaining terms, provisions, promises, covenants and conditions of this Agreement shall not be affected thereby and shall be valid and enforceable to the fullest extent permitted by law. If for any reason this Agreement shall be held by a court of competent jurisdiction void, voidable, or unenforceable by the Authority or by the City, or if for any reason it is held by such a court that the covenants and conditions of the City hereunder, including the covenants to pay rents hereunder, is unenforceable for the full terms hereunder, then and in such event for and in consideration of the 6: .. .. * I. * right of the City to possess, occupy and use the leased property, which right in such event is hereby granted, this Agreement shall thereupon become, and shall be deemed to be, a lease from year to year under which the annual rentals herein specified will be paid by the City. IN WITNESS WHEREOF, the parties 'hereto have caused this Agreement to be executed and attested by their proper officers thereunto duly authorized, and their official seaIs to be hereto affixed, as of the day and year first above written. CITY OF CARLSBAD BY Mayor Attest: City Clerk (SEAL) PAMING AUTHORITY OF TEB2 CITY OF CARLSBAD BY Chairman Attest: Clerk (SEAL) I HEREBY APPROVE the form and legality of the foregoing Agreement this 21st day of August, 1969. City Attorney and ex officio Attorney for the Parking Authority of the City of CarIsbad 7 .. . L. 0 STATE OF CALIFORNIA COUNTY OF SAN DIEGO \ ss. On this 21st day of August, in the year 1969, before me, .---...--.------.--.*---.-------------------.---, a Notary Public, State of California, duly commissioned and swom, personally appeared __._._______.___.___-..-.--.------ -., known to me to be the Mayor, and _____ ~ __________________________________ , known to me to be the City Clerk, re- spectively, of the CITY OF CARLSBAD, a municipal corporation that executed the within instrument, and known to me to be the persons who executed the within instrument on behalf of said municipal corpo- ration therein named, and acknowledged to me that such municipal corporation executed the within instrument pursuant to a resolution of the City Council of said City of Carlsbad. IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my official seal on the day and year in this certificate first above written. Notary Public, State of California (NOTARIAL SEAL) STATE OF CALIFORNIA 1 COUNTY OF SAN DIEGO 1 ss* On this 21st day of August, in the year 1969, before me, -----------------.----------.-------------------, a Notary Public, State of California, duly commissioned and sworn, personally appeared ______ ~ ....................... , known to me to be the Chairman and ___________ ~ -----------.--------, known to me to be the Clerk, respectively, of the Parking Authority of the City of Carlsbad, a public corporation that executed the within instru- ment, and known to me to be the persons who executed the within instrument on behalf of said public corporation therein named, and acknowledged to me that such public corporation executed the within instrument pursuant to a resohtion of said Authority. IN WITNESS WHEREOF, I have hereunto subscribed my name and afExed my official seal on the day and year in this certificate first above written. Notary Public, State of California (NOTARIAL SEAL) 8 EXHIBIT A All that real property situated within the City of Carlsbad, in the County of San Diego, State of California, being that portion of Section 32, Township 11 South, Range 4 West, San -Bemardin0 Base and Meridian, according to official plat thereof, together with portions of Lots 13, 14, and 42, and of Eucalyptus Street, all of Hosp Eucalyptus Forest Company’s Tract, according to map thereof No. 1136, fled in the Office of County Recorder of San Diego County, being described as a whole as follows: Beginning at the southeast corner of the north half of the northeast quarter of Section 31, Township 11 South, Range 4 West, thence along the south line of said north half, North 89” 42’ 19” West 404.27 feet to Point “A” of this description; thence due South 424.67 feet; thence East 339.54 feet; thence North 30” 00’ 00” West 35.92 feet to the beginning of a tangent curve concave south- westerly and having a radius of 15.00 feet; thence northwesterly and westerly along the arc of said curve through a central angle of 60” 00’ 00” a distance of 15.71 feet; thence tangent to said curve, West 43.05 feet; thence North 69.17 feet to the beginning of a tangent curve concave southeasterly and having a radius of 10.00 feet; thence northerly, northeasterly and easterly along the arc of said curve through a central angIe of 90” 00’ 00’’ a distance of 15.71 feet; thence tangent to said curve east 2.38 feet to the beginning of a tangent curve concave northwesterly and having a radius of 25.00 feet; thence easterly, northeasterly and northerly along the arc of said curve through a central angle of 90” 00’ 00” a distance of 39.27 feet; thence tangent to said curve North 13.67 feet to the beginning of a tangent curve concave southeasterly and having a radius of 10.00 feet; thence northerly, northeasterly, and easterly along the arc of said curve through a central angle of 90” 00’ 00” a distance of 15.71 feet; thence tangent to said curve, East 140.00 feet; thence South 60” 00’ 00” East 90.00 feet; thence East 185.24 feet to the beginning of a tangent curve concave southwesterly and having a radius of 10.00 feet; thence easterly and southeasterly along the arc of said curve through a central angle of 70” 00’ 00” a distance of 12.22 feet; Thence tangent to said curve south 20” 00’ 00” East 21.72 feet; thence South 30.10 feet; thence East 232.88 feet; thence North 70” 00’ 00” East 326.42 feet; thence South 20” 00’ 00” East 76.00 feet; thence South 70” 00’ 00” West 45.00 feet; thence South 20” 00’ 00” East 190.00 feet; thence South 70” 00’ 00” West 329.06 feet; thence South 20” 00’ 00” East 62.00 feet; thence South 70” 00’ 00’’ West 89.48 feet; thence South 20” 00’ 00” East 20.00 feet; thence South 70” 00’ 00’’ West 271.17 feet; thence North 20” 00’ 00” West 60.97 feet; thence West 680.33 feet to a line which bears South from the hereinabove designated Point “A”; thence along said line, South 274.86 feet to a line which bears South 76” 30’ 00’’ East from a point which bears South 22.99 feet from the southwesterly corner of land described in deed to the May Stores Shopping Centers Inc., recorded April 21, 1966 as Instrument No. 66568 of official records; thence South 76” 30’ 00” East along said line 339.00 feet to a point which bears South 76” 30’ 00” East 1265.00 feet from the southerly terminus of that line described above as ‘*South 22.99 feet”; thence East 740.00 feet; thence North 77” 15’ 51‘’ East 52.31 feet to Point “B” of this description; thence North 20” 00’ 00” West 54.89 feet; thence North 70” 00’ 00” East 572.50 feet; thence South 12” 44’ 09” East 126.84 feet to a line which bears North 77” 15’ 51” East from said Point “B” hereinabove designated; thence North 770 15’ 51” East 164.65 feet to an intersection with the westerly line of land described in easement to the City of Carlsbad for public highway purposes, recorded March 11, 1966 as Document No. 42245, official records, said intersection being a point in the arc of a curve, the radial center of which bears North 76” 22’ 31” East 2563.00 feet from said point; thence along said westerly line of said easement, northerly along the arc of said curve through a central angle of 9” 51’ 42’’ a distance of 441.14 feet; tangent to said curve, North 3” 45’ 47” West 466.31 feet; thence South 86” 14’ 13” West 110.00 feet; thence North 3” 45’ 47” West 174.00 feet; thence North 86” 14’ 13” East 110.00 feet to the westerly line of said easement herein before mentioned; thence continuing along said westerly line North 3” 45’ 47” West 10.00 feet to an intersection with the southerly line of California State Highway as described under Parcel 1 in Deed to the State of California recorded 9. % . I* ’i 0 September 8, 1964 as Document No. 163432 of official records; thence along the boundary of said state highway as follows; North 56” 32’ 58” West 100.34 feet to the beginning of a non-tangent curve, the radial center of which bears South 28” 33’ 27” West 150.00 feet therefrom; thence westerly along the arc of said curve through a central angle of 31” 03’ 27” a distance of 81.31 feet to the end thereof; thence non-tangent to said curve, South 89” 12’ 51” West 167.13 feet to a point in the arc of a 205.00 foot radius curve, concave southerly, the radial center of which bears South 2” 30’ 00” East from said point; thence westerly along the arc of said curve through a central angle of 35” 09’ 13” a distance of 125.78 feet to the beginning of a reverse curve having a radius of 95.00 feet; thence westerly and northwesterly along the arc of said curve through a central angle of 112” 09‘ 13” a distance of 185.96 feet to the southeast corner of that easement for drainage pur- poses described under Parcel 2, granted to the State of California, recorded September 8, 1964 as Document No. 163432 of official records; thence leaving said curve and said southerly line of California State Highway, and following along the southerly and westerly lines of said drainage easement, South 74O 30’ 00” West 135.88 feet and North 15” 19’ 26” West 40.85 feet to a point in the southerly line of the land described under Parcel 1 in Deed to the City of Oceanside, recorded April 20, 1959 as Document No. 77257 of official records; thence South 69” 30’ 00” West dong the southerly line of said Parcel 1 a distance of 614.20 ,feet to the true point of beginning. Excepting therefrom that portion of said Section 32, described as follows: Beginning at said southeast corner of said north half of the northeast quarter of Section 31, of said Township and Range; thence North 69” 30’ 00” East along said southerly line of land described in said Deed to the City of Oceanside, 425.90 feet; thence leaving said southerly line, South 5” 00’ 00” East 58.17 feet to the true point of beginning of the herein described parcel; thence continuing South 5” 00’ 00’’ East 104.00 feet; thence North 85” 00‘ 00” East 327.67 feet; thence North 5” 00’ 00” West 104.00 feet; thence South 85” 00’ 00’‘ West 327.67 feet to the true point of beginning. Also excepting from Section 32, herein described, all of the oil, gas, and mineral and mineral rights, lying beneath a depth of 500 feet from the surface of said land, together with the right of entry at any point in such land lying below said depth for the purposes of exploring, drilling, conveying and removal of any such substances and installation of equipment and pipelines for such purposes, provided that any such entry and activity upon said land for such purpose shall be carried out in such manner as to avoid any interference with the use of the surface of said land, as excepted in deeds from FAWCO, a partnership, William S. Bartman, Fred A. Bartman Jr., Bernard Citron, and Harry J. L. Frank Jr., recorded April 21, 1966 under Recorder’s File No.’s 66913 and 66568. Also excepting from said portion of Section 32, above all mineral rights and all oil, gas, petroleum, or other hydrocarbon substances within or underlying said land without right of surface entry as reserved in deeds executed by Reginald0 Marron and Caroline Marron recorded in Book 6699, Page 264 of official records, and Book 7712, Page 477 of official records. 10 EXHIBIT B PARKING AUTHORITY OF THE CITY OF CARLSBAD Schedule for Adjustment of Rental Estimated Required Bond Issue ................................................... $1,535,000 * Subject to adjustment under Section 4 for the purpose of adjusting the Rental. Funded interest on the bonds during their life has been estimated at 7% and shall be adjusted pursuant to Section 4. Said adjustment may take into con- sideration the need to adjust the Schedule of Rental payments to fit the financial program of the City and shall be subject to approval of the City; provided the Schedule of Rental payments (which may vary from year to year) shall be in any case at least sufficient to pay the principal and interest on the Bonds in any succeeding year in accordance with the Resolution. 11