HomeMy WebLinkAbout1958-06-11; City Council; Resolution 397'. . * .. ..
CITY OF CARLSBAD
RESOLUTION NO .................. 39?
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD. CALIFORNIA,
AUTHORIZING THE ISSUANCE OF $767. 000 WATERWORKS REVENUE
BONDS OF SAID CITY AND PROVIDING THE TERMS AND
CONDITIONS FOR THE ISSUANCE OF SAID BONDS . Page
Recitals ............................................................................................................................................................ 1
Section 1 .
Section 2 .
Section 3 .
Section 4 .
Section 5 .
Section 6 .
Section 7 .
Section 8 .
Section 9 .
Section 10 .
Section 11 .
Section 12 .
Section 13 .
Section 14 .
Section 15 .
Section 16 .
Section 17 .
Section 18 .
Section 19 .
Section 20 .
Section 21 .
Section 22 .
Section 23 .
Section 24 .
Section 25 .
Section 26 .
Section 27 .
Section 28 .
Section 29 .
Section 30 .
Section 31 .
Section 32 .
Section 33 .
Section 34 .
Section 35 .
Definitions ...............................................................................................................................
Amount, Issuance, Purpose and Nature of Bonds ..........................................................
Equality of Bonds, Pledge of Revenues ............................................................................
No General City Liability ....................................................................................................
Description of Bonds ............................................................................................................
Interest .....................................................................................................................................
Execution of Bonds ..............................................................................................................
Registration .............................................................................................................................
Call and Redemption of Bonds Prior to Maturity .....................................................
Notice of Redemption .................................................................................... : .....................
Redemption Fund ................................................................................. :- ...............................
Effect of the Notice of Redemption ...................................................................................
Funds ............................................ ..................................................................................
Construction Fund .................................................................................................................
Water Fund .............................................................................................................................
Bond Service Fund ................................................................................................................
Reserve Fund ..........................................................................................................................
Maintenance and Operation Fund ....................................................................................
Additional Fund Uses ...........................................................................................................
Warranty .................................................................................................................................
Covenants . ..............................................................................................................................
Covenant 1 . Punctual Payment ................................................................................
Covenant 2 . Discharge Claims ..................................................................................
Covenant 3 . Commence Acquisition ........................................................................
Covenant 4 .
Covenant 5 . Against Sale ...........................................................................................
Covenant 6 . Insurance .................................................................................................
Covenant 7 . Records and Accounts ..........................................................................
Covenant 8 . No Free Service .....................................................................................
Covenant 9 . Rates and Charges ................................................................................
No Priority for Additional Bonds ....................................................
Limits on Additional Debt ................................................................
Investment of Funds ..............................................................................................................
Lost, Destroyed or Mutilated Bonds ................................................................................
Cancellation of Bonds ...........................................................................................................
Consent of Bondholders .......................................................................................................
Calling Bondholders' Meeting ............................................................................................
Notice of Meeting ..................................................................................................................
Voting Qualifications ............................................................................................................
Issuer-owned Bonds ..............................................................................................................
Quorum and Procedure ........................................................................................................
Vote Required ........................................................................................................................
Bond and Coupon Forms ....................................................................................................
Proceedings Constitute Contract .......... ........................................................................ .....
Future Contracts ...................................................................................................................
Severability ..............................................................................................................................
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Operate Enterprise in Efficient and Economical Manner ............
Covenant 10 .
Covenant 11 .
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17 Section 36 . Effective Date .........................................................................................................................
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1. Proof of May 16, 1958- J. BTCo.
CITY OF CARLSBAD
RESOLUTION NO. -.: 377 ._._ ____. ______
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA,
AUTHORIZING THE ISSUANCE OF $767,000 WATERWORKS REVENUE
BONDS OF SAID CITY AND PROVIDING THE TERMS AND
CONDITIONS FOR THE ISSUANCE OF SAID BONDS.
WHEREAS, pursuant to Resolutions Nos. 302 and 303 of the City Council of the City of
Carlsbad, special municipal elections were held in said City on December 17, 1957, for the purpose
of submitting to the qualified voters of said city the following propositions of issuing water
revenue bonds pursuant to the Revenue Bond Law of 1941 (Chapter 6, Part 1, Division 2, Title 5
of the Government Code of the State of California), to wit :
PROPOSITION A-REVENUE BONDS-ACQUISITION : Shall the City of Carlsbad
issue water revenue bonds in the principal sum of $598,000 for the acquisition by said city of the
waterworks, property, property rights and other assets of the Carlsbad Mutual Water Company,
including funds for the payment of liabilities, and financing of all engineering, inspection and
legal fees, costs of the bond election and of the issuance of said revenue bonds, bond reserve funds
and working capital and other costs and expenses incidental to or connected with such acquisition
and financing?
PROPOSITION B-REVENUE BONDS-IMPROVEMENT : Shall the City of Carlsbad
issue water revenue bonds in the principal sum of $169,000 for the acquisition, construction, and
financing of extensions, enlargements and improvements of the waterworks to be acquired by the
city and any water lines owned by the city, including works and facilities for the storage, trans-
mission and distribution of water, and the acquisition of water rights, land, easements, rights of
way and other property necessary therefor, and including all engineering, inspection and legal
fees, costs of the issuance of said revenue bonds, bond reserve funds, and other costs and expenses
incidental to or connected with such acquisition, construction and financing?
and
\ITHEREAS, each of said propositions was approved by the votes of more than a majority of
all the voters voting on said proposition at said special elections, and this City Council is now
authorized to issue said bonds as provided in said Revenue Bond Law of 1941
and
WHEREAS, this City Council deems it necessary to issue and sell all of said $767,000 of
said bonds authorized at said elections ;
NOW, THEREFORE, the City Council of the City of Carlsbad, California, DOES HEREBY
Section 1. Definitions. As used in this resolution the following terms shall have the following
RESOLVE, DETERMINE AND ORDER as follows :
meanings unless the context requires otherwise :
(a) “City” means the City of Carlsbad, California.
(b) “City Council” or “Council” means the City Council of said City.
(c) “Revenue Bond Law” means The Revenue Bond Law of 1941 as cited in the recitals
hereof.
(d) “The bonds’’ or “said bonds” means the bonds authorized by this resolution.
(e) “Enterprise” means the enterprise defined in said Resolutions Nos. 302 and 303,
calling said elections, as follows :
“The entire waterworks system of the City of Carlsbad to be hereafter acquired,
together with any water lines owned by the city and all improvements and extensions to
said system later constructed or acquired.”
(f) “Gross revenues of the enterprise” means all revenues (as defined in Section 54315
of the Government Code, which include all charges received for, and all other income and
e Proof of May 16, 1958- J. B. Co.
receipts derived by the City of Carlsbad from the operation of the enterprise or arising from the
enterprise) received by the City of Carlsbad from the services, facilities and water of the
enterprise, provided that any inclusion fee or fees which the City is required to charge under
paragraph 5 of the Agreement for Purchase, made August 30, 1957, between the City and the
Carlsbad Mutual Water Company, shall not be included therein.
(g) “Necessary and reasonable maintenance and operation costs of the enterprise” includes
the reasonable expenses of management, repair and other expenses necessary to maintain and
preserve the enterprise in good repair and working order.
(h) “Net revenues of the enterprise” means the amount of the gross revenues of the
enterprise remaining after payment therefrom of the necessary and reasonable maintenance
and operation costs of the enterprise.
(i) “Maximum amount of annual debt service” means the maximum amount required to
be paid in any fiscal year on account of interest and principal coming due on said bonds.
(j) “Fiscal year” means the year period beginning on July 1st and ending on the next
following June 30th.
Section 2. Amount, Issuance, Purpose and Nature of Bonds. That under and pursuant to
said Revenue Bond Law revenue bonds of the City of Carlsbad in the amount of $767,000 shall be
issued for the purposes stated in the recitals hereof. Said revenue bonds shall be and are special
obligations of the City of Carlsbad and shall be and are secured by a pledge of and lien upon, and
shall be and are a charge upon, and shall be and are payable as to the principal thereof and interest
thereon and any premiums upon the redemption of any thereof, solely from the gross revenues
of the enterprise, such gross revenues being hereby pledged, charged and assigned for the security
of the bonds.
Section 3. Equality of Bonds, Pledge of Revenues. Pursuant to the Revenue Bond Law of
1941 and this resolution, bonds of this issue shall be equally secured by a pledge, charge and lien
upon the gross revenues of the enterprise without priority for number, date of bonds, date of sale,
date of execution, or date of delivery, and the payment of the interest on and principal of such bonds
and any premiums upon the redemption of any thereof shall be and are secured by an exclusive
pledge, charge and lien upon all of the gross revenues of the enterprise, and all of the gross revenues
of the enterprise (including revenues of improvements and extensions later constructed or acquired
and revenues of existing systems, plants, works or undertakings to be acquired, improved or
extended or for the acquisition, iinprovement or extension of which said bonds are to be issued)
are hereby pledged, charged and assigned for the security of said bonds, and such gross revenues
and any interest earned on the revenues shall constitute a trust fund for the security and payment
of the ifiterest on and principal of said bonds, and so long as any of the bonds or interest thereon
are unpaid said gross revenues and interest thereon shall not be used for any other purpose, except
as permitted by this resolution, and shall be held in trust for the benefit of the bondholders and
shall be applied pursuant to this resolution, or to this resolution as modified pursuant to provisions
herein.
Nothing in this resolution shall preclude: (a) the redemption prior to maturity, at the times
and in the manner stated in this resolution, and payment of bonds of this issue, including premiums
thereon if any be payable, from proceeds of refunding bonds issued under said Revenue Bond
Law of 1941 as the same now exists or as hereafter amended, or under the charter of said City
(in the event that the City should adopt a charter), or under any other law of the State of
California; (b) the issuance, subject to the limitations in the covenants in Section 21 hereof, of
additional indebtedness evidenced by revenue bonds, revenue notes or other similar evidences of
indebtedness payable out of the revenues derived from the enterprise and ranking on a parity with
the bonds of this issue.
Section 4. No General City Liability. The general fund of the City of Carlsbad is not liable
for the payment of the bonds or their interest, nor is the credit or taxing power of the City of
Carlsbad pledged for the payment of the bonds or their interest. The holder of the bonds or coupons
shall not compel the exercise of the taxing power by the City of Carlsbad or the forfeiture of any of
its property. The principal of and interest on the bonds and any premiums upon the redemption of
any thereof’are not a debt of the City of Carlsbad nor a legal or equitable pledge, charge, lien, or
encumbrance, upon any of its property, or upon any of its income, receipts, or revenues, except the
gross revenues of the enterprise which are, under the terms of this resolution and said Revenue
Bond Law, pledged to the payment of said bonds and interest.
0 Proof of May 16, 1958- J. B. Co.
Section 5. Description of Bonds. Said bonds shall be in the principal sum of $767,000, shall
be 767 in number, numbered 1 to 767, inclusive, and shall be of the denomination of $1,000 each.
Said bonds shall be designated WATERWORKS REVENUE BONDS, 1958, shall be dated July
1, 1958, and shall be payable in consecutive numerical order 011 July 1 in each year of maturity in
the amounts for each of the several years as follows :
Yeor of Maturiiy Principal Amount Year of Maturity Principal Amount
1964 .................................. $20,000 1977 .................................. 30,000
1965 .................................. 20,000 1978 .................................. 30,000
1966 .................................. 20,000 1979 .................................. 35,000
1968 .................................. 20,000 1981 .................................. 35,000
1967 .................................. 20,000 1980 .................................. 35,000
1969 .................................. 20,000 1982 .................................. 40,000
1970 .................................. 25,000 1983 .................................. 40,000
1971 .................................. 25,000 1984 .................................. 40,000
1972 .................................. 25,000 1985 .................................. 40,000
1973 .................................. 25,000 1986 .................................. 45,000
1974 .................................. 25,000 1987 .................................. 45,000
1975 .................................. 30,000 1988 .................................. 47,000
1976 .................................. $30,000
Section 6. Interest. Said bonds shall bear interest at a rate or rates to be hereafter fixed by
resolution or resolutions, but not to exceed six per cent (470) per annum, payable annually for the
first year and semi-annually thereafter on the 1st days of July and January 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 prior to maturity and has been duly called
for redemption, funds are available for the payment or redemption thereof in full accordance with
the terms of this resolution, said bond shall then cease to bear interest. Said bonds and the interest
thereon shall be payable in lawful money of the United States of America at the office of the City
Treasurer oE the City of Carlsbad, in said city, or, at the option of the holder, at any fiscal agency of
the City of Carlsbad in Los Angeles, California, or in Chicago, Illinois, or in New York, New York.
Section 7. Execution of Bonds. The Mayor and the City Treasurer of said City are hereby
authorized and directed to sign all of said bonds by their printed, lithographed or engraved facsimile
signatures, and the City Clerk of said City is hereby authorized and directed to countersign said
bonds and to affix thereto the corporate seal of said City, and the City Treasurer of said City is
hereby authorized and directed to sign the interest coupons of said bonds by his printed, litho-
graphed or engraved facsimile signature.
Section 8. Registration. Said bonds may be registered either 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 in Section 32 hereof.
Section 9. Call and Redemption of Bonds Prior to Maturity.
Refunding Call: If all or any part of the principal and premium payable upon call and
redemption prior to maturity is paid from the proceeds of refunding bonds, this provision
shall apply.
The bonds maturing on or prior to July 1, 1969, shall not be subject to call or redemption
prior to maturity for the purpose of refunding. The bonds maturing on or after July 1, 1970, or
any of them, may be called before maturity and redeemed, for the purpose of retunding, at the
option of the City Council, on July 1, 1969, 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 the following premiums (percentage of par value) if redeemed at the following times:
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m Proof of May 16, 1958 - J. B. Co.
REFUNDING REDEMPTION DATES AND PREMIUMS
On or Afier July 1 And Prior to July 1 Refunding Premium
1969
1970
1971
1972
1973
1974
1975
1970
1971
1972
1973
1974
1975
Maturity
Revenue Call: If no part of the principal and premium payable upon call and redemption
prior to maturity is paid from the proceeds of refunding bonds, this provision shall apply.
All or any part of the bonds may be called before maturity and redeemed, except for refunding,
at the option of the City Council, on July 1, 1960, 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 the following premiums (percentage of par value) if redeemed at the following times :
REVENUE REDEMPTION DATES AND PREMIUMS
On or After Juiy 1
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
And Prior to July I Revenue Premium
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
Maturity
A11 or any of the bonds subject to either refunding or revenue call may be called for redemption
at any one time. If less than all of the bonds subject to such call are redeemed at any one time,
such bonds shall be redeemed only in inverse order of maturity and number, beginning with the
highest numbered bond. The interest payment date on which bonds are to be presented for
redemption is hereinafter sometimes called the “redemption date”.
Section 10. Notice of Redemption. X’otice of the intended redemption shall be published
by one insertion in a newspaper of general circulation in the City of Carlsbad, California, and
in a financial newspaper or journal of national circulation published in the City of New York,
New York, said publications to be at least 30 days but not more than 60 days prior to the
redemption date. The notice of redemption shall (a) state the redemption date; (5) state the
redemption price; (c) state the numbers and dates of maturity of the bonds to be redeemed,
provided, however, that whenever any call includes all of the bonds of a maturity the numbers of
the bonds of such maturity 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 City Treasurer
of the City of Carlsbad, in said City, or at any fiscal agency of the City of Carlsbad in Los Angeles,
California, or in Chicago, Illinois, or in New York, New York; (e) require that bonds which at
the time of call are registered so as to be payable otherwise than to bearer shall be accompanied
by appropriate instruments of assignment duly executed in blank; and (f) give notice that further
interest on such bonds will not accrue after the designated redemption date.
The City Treasurer shall, on or before the date of publication of said notice of redemption, mail
a similar notice, postage prepaid to any person, firm or corporation that originally purchased any
of the bonds from the City.
If any of the bonds designated for redemption shall be registered so as to be payable otherwise
than to bearer, the City Treasurer shal1,’on or before the date of publication of said notice of
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0 Proof of May 16, 1958- J. B. Co.
redemption, mail a similar notice, postage prepaid, to the respective registered owners thereof at
the addresses appearing on the bond registry books.
The actual receipt by the holder of any bond (hereinafter referred to as “bondholder”) or by
any original purchaser oi notice of such redemption shall not be a condition precedent to redenip-
tion, and failure to receive such notice shall not aifect 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 the City Treasurer. A certificate by the City
Treasurer that notice of cail and redemption has been given to holders of registered bonds and to
original purchasers 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 11. Redemption Fund. Prior to the date fixed for redemption there shall be estab-
lished in the City Treasury a redemption fund to be described or known as WATERWORKS
REVEEN‘UE BONDS, 1938, REDEMPTION FUND (hereinafter sometimes referred to as
“Redemption Fund”), and prior to the redemption date there must be set aside in said Redemption
Fund moneys avaiiable for the purpose and sufficient 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 shail be applied on or after the redemption date
to payment (principal and premium) tor the bonds to be redeemed upon presentation and surrender
of such bonds and (except as to bonds 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 provided
in Section 16 hereof upon presentation and surrender thereof. Any interest due on or prior to the
redemption date upon bonds registered as to both principal and interest shall be paid from said
Bond Service Fund. Each bond presented (if unregistered or registered as to principal only)
must have attached thereto or presented therewith all interest coupons maturing after the redemp-
tion date. If after all of the bonds have been redeemed and cancelled or paid and cancelled there
are moneys remaining in said Redemption Fund, said moneys shall be transferred to the Water
Fund; 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 12. Effect of the Notice of Redemption. When notice of redemption has been given,
substantially as provided in Section 10 hereof, 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 in Section 11 hereof, 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 bonds registered as to both principal and interest) all
interest coupons maturing after the redemption date, at the place specified in the notice of redenip-
tion, and, if any of said bonds be registered, upon the appropriate assignment thereof in blank,
such bonds shall be redeemed and paid at said redemption price out of the Redemption Fund, and
no interest will accrue on such bonds called for redemption or on any interest 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 forthwith by the City Treasurer 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 bonds registered in such manner that the interest is payable only to the registered
owners shall continue to be payable to the respective registered owners of such bonds, or their
order, but without interest thereon.
Section 13. Funds. There are hereby created in the City Treasury of the City of Carlsbad
the following funds :
1. Waterworks Revenue Bonds, 1955, Construction Fund (hereinafter sometimes called
“Construction Fund”) ;
2. Water Fund;
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.. 0 Proof of May 16, 1958 - J. B. Co.
3. Waterworks Revenue Bonds, 1958, Bond Service Fund (hereinafter sometimes called
“Bond Service Fund”) ;
4. Waterworks Revenue Bonds, 1958, Reserve Fund (hereinafter sometimes called
“Reserve Fund”) ;
5. Waterworks Maintenance and Operation Fund (hereinafter sometimes called “Rfain-
tenance and Operation Fund”).
Said funds are created under and pursuant to said Revenue Bond Law and shall be applied pursuant
to this resolution and under and pursuant to said Revenue Bond Law.
Section 14. Construction Fund. To insure the application of the proceeds received from the
sale of the bonds to the purposes set forth in the recitals hereof, for which said bonds are to be
issued, the proceeds of the sale of the bonds shall be placed as follows:
1. $45,000 in the Reserve Fund.
2. $563,000 in the Construction Fund in an account therein entitled “Proposition A
Account”, to remain therein until from time to time expended for the purposes set forth in
Proposition A in the recitals hereof.
3. $159,000 in the Construction Fund in an account therein entitled “Proposition B
Account”? to remain therein until from time to time expended for the purposes set forth in
Proposition B in the recitals hereof.
The City may deposit money received from any other source in the Construction Fund. Money
in the Construction Fund may be temporarily invested in any authorized negotiable direct obliga-
tions of the United States, provided that the maturity shall not be later than 91 days from the
date of investment. If any sum remains in said Fund after the full accomplishment of the
purposes for which the bonds were issued, it shall be transferred to and placed in the Reserve Fund
to the extent necessary at that time to bring said Fund to the amount required in Section 17 hereof
and, as to any remaining balance, to the Bond Service Fund.
Section 15. Water Fund. All funds or moneys derived from water revenues on hand at the
time this resolution takes effect shall be transferred to and placed in the Water Fund and the gross
revenues of the enterprise shall be paid into the Water Fund, and payments from said fund shall
be made only as provided by law and this resolution.
Section 16. Bond Service Fund. So long as any of said bonds are outstanding, on the first
day of each calendar month there shall be set aside and transferred from the Water Fund to the
Bond Service Fund sunis in equal aliquot parts for each one-half year so that at least the full
amount required to pay, as it becomes due, the intei-est on the bonds and/or any maturity or install-
ment of principal of the bonds shall be set aside in the Bond Service Fund at least one month
prior to the date the installment of interest and/or principal becomes due. No such transfer need be
made prior to the actuaI delivery of the bonds to the purchzser thereof; provided, however, that if
the bonds are issued and delivered subsequent to their date there shall be set aside, transferred to
and placed in the Bond Service Fund on the first day of the calendar month next subsequent to
the date of delivery sums at least sufficient, together with other transfers of the same amount
made on the first day of each calendar month thereafter, to provide in said Bond Service Fund
one month prior to the maturity of the first installment of interest and/or principal of the bonds the
full amount of such interest and/or principal. Any amount required to be set aside, transferred to
and placed in the Bond Service Fund may be prepaid in whole or in part by being earlier set aside,
transferred to and placed in the Bond Service Fund and in that event the monthly transfer which
has been so prepaid need not be made at the time appointed therefor. In any event at least one
month prior to the due date of any maturity or installment of principal of and/or interest on the
bonds all sums required for the payment thereof must be in such Bond Service Fund in cash. Such
sums shall be so transferred out of the Water Fund. The City Council directs that such sums be so
set aside through transfers or payments made in such amounts as may be necessary to comply with
the foregoing provisions of this section. Money set aside and placed in said Bond Service Fund
shall remain therein until from time to time expended for the payment of such principal and/or
interest, and shall not be used for any other purpose whatever, except that any such money so
set aside and placed in said Bond Service Fund which at any time may be in excess of the amount
which at that time is required by the terms of this section to be in the Bond Service Fund in
cash may be temporarily invested in any authorized negotiable direct obligations of the United
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0 ..
Proof of May 19, 1958, J.B.Co.
States, provided that the maturity shall not be later than 1s months from the date of investment
but such investment shall not affect the obligation of the City to cause the full amount required
by the terms of this section to be available in said Bond Service Fund in cash at the time required
by the terms of this section. Any money remaining in said Bond Service Fund in excess of the
amount required to accomplish the purpose of its establishment shall be transferred to the Water
Fund. The bonds and interest coupons shall recite that they are payable from the Water Fund,
but said bonds and coupons, notwithstanding such recital, shall be paid from the Bond Service
Fund, which is derived from the Water Fund and is a subdivision thereof. If at the time any
bond or interest coupon is presented for payment the moneys in the Bond Service Fund are
insufficient to make such payment, funds sufficient for such payment shall be transferred from
the Reserve Fund to said Bond Service Fund.
Section 17. Reserve Fund. Immediately upon receiving the proceeds of the sale of the bonds
$45,000 thereof shall be placed (as stated above) in the Reserve Fund. On the first day of the
calendar month 2 months after the bonds have been delivered to the purchasers thereof and on
the first day of each calendar month thereafter, after the transfers required by Section 16 hereof
have been made, there shall be transferred from the Water Fund and placed in the Reserve Fund
a sum not less than $120 until an amount equal to the maximum amount of annual debt service
has been paid into said Reserve Fund, and thereafter there shall be maintained in said Reserve
Fund a sum equal to said maximum amount of annual debt service. Moneys in the Reserve Fund
shall be used solely for the purpose of paying the principal of and interest on the bonds in the event
that the moneys in the Bond Service Fund are insufficient therefor and for that purpose may be
withdrawn and transferred to the Bond Service Fund, except that said moneys may be invested in
any authorized negotiable direct obligations of the United States, provided that the maturity shall
not be later than 36 months from the date of investment. Any interest earned from investment of
money in the Reserve Fund shall be deemed to be a part of the gross revenues of the enterprise and
shall be placed in the Water Fund. No payment need be made into the Reserve Fund so long as
there shall be in said fund a sum at least equal to said maximum amount of annual debt service.
Whenever moneys are withdrawn from the Reserve Fund to pay principal and interest of bonds,
the amount in the Reserve Fund shall be restored to the amount required in this section by trans-
fers from surplus. Any amount in the Reserve Fund in excess of the maximum amount of annual
debt service shall be transferred to the Bond Service Fund and money in the Reserve Fund may
be used for paying the last outstanding maturity of said bonds.
Section 18. Maintenance and Operation Fund. Monthly sums sufficient for the necessary
and reasonable maintenance and operation costs of the enterprise shall be apportioned from the
revenues and paid from the Water Fund into the Maintenance and Operation Fund after the
payment of the principal and interest on said bonds and after the payment of sums into the Reserve
Fund as provided in this resolution.
Section 19. Additional Fund Uses. After the monthly transfers required or permitted by
Sections 16, 17 and 18 hereof have been made and all other covenants of the City contained herein
have been duly performed, except for the amount needed in said Water Fund as working capital,
equal to at least three months’ estimated necessary and reasonable maintenance and operation
costs, any money remaining in the Water Fund (herein sometimes referred as to “surplus”) shall
be used to build up the Reserve Fund to the maximum amount of annual debt service, or for its
restoration, if necessary, as provided in Section 17 hereof and after the above use said surplus may
be used in any or all of the following ways: (a) investment in any authorized negotiable direct
obligatioiis of the United States provided that the maturity shall not be later than 5 years from the
date of investment, (b) the redemption of any of said bonds which are subject to redemption prior to
maturity, (c) the purchase from time to time of any bonds which are subject to redemption prior
to maturity (irrespective of the maturity or number of such bonds) at such prices and in such
manner, either at public or private sale, or otherwise as the City Council in its discretion may
determine, but the purchase price (including brokerage or other charges but excluding accrued
interest) shall not exceed 104% of the principal amount thereof, (d) the payment of the costs of
extensions of or additions to and improvements of the enterprise, (e) the payment of principal
and interest of general obligation bonds of the City issued for waterworks purposes, (f) any other
waterworks purpose, and, except as otherwise permitted by this resolution, no other transfer or
uses of said revenues may be made.
Section 20.. Warranty. The City shall preserve and protect the security of the bonds
and the rights of the bondholders and warrant and defend their rights against all claims and
demands of all persons.
7
.. 0 Proof of May 16, 1958 - J. B. Co.
Section 21. Covenants. 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 the
Redemption Fund or in a special trust fund to insure the payment or redemption thereof (as the
case may be) of money sufficient for that purpose has not been made, the City makes the following
covenants with the bondholders under the provisions of the Revenue Bond Law of 1941 (to
be performed by the City or its proper officers, agents or employees) which covenants are
necessary, convenient and desirable to secure the bonds and tend to make them more marketable;
provided however, that said covenants do not require the City to expend any funds other than
the revenues received or receivable from the enterprise.
Covenant 1. Punctual Payment. The City covenants that it will duly and punctually pay
or cause to be paid the principal of and interest on every bond issued hereunder, together with
the premium thereon, if any be payable on the date, at the place and in the manner mentioned
in the bonds and coupons and in accordance with this resolution, and that the payments into the
Bond Service Fund, and Reserve Fund will be made, all in strict conformity with the terms of
said bonds and of this resolution, and that it will faithfully observe and perform all of the con-
ditions, covenants and requirements of this resolution and all resolutions supplemental thereto
and of the bonds issued hereunder, and that time of such payment and performance is of the
essence of the City’s contract with the bondholders.
Covenant 2. Discharge Claims. The City covenants that in order to fully preserve and protect
the priority and security of the bonds the City shall pay from the Water Fund and discharge all
lawful claims for labor, materials and supplies furnished for or in connection with the enterprise
which, if unpaid, may become a lien or charge upon the revenues prior or superior to the lien
of the bonds and impair the security of the bonds. The City shall also pay from the Water Fund
all taxes and assessments or other governmental charges lawfully levied or assessed upon or in
respect of the enterprise or upon any part thereof or upon any of the revenues therefrom.
Covenant 3. Commence Acquisition. As soon as funds are available therefor, the City will
commence the accomplishment of the purposes for which the bonds are issued and will continue
the same to completion with all practical dispatch and in an economical manner.
Covenant 4. Operate Enterprise in Efficient and Economical Manner. The City covenants
and agrees to operate the enterprise in an efficient and economical manner and to operate, maintain
and preserve the enterprise in good repair and working order.
Covenant 5. Against Sale. The City covenants that the enterprise shall not be mortgaged
or otherwise encumbered, sold, leased, pledged, any charge placed thereon, or disposed of as a
whole or substantially as a whole unless such sale or other disposition be so arranged as to provide
for a continuance of payments into the Water Fund sufficient in amount to permit payment there-
from of the principal of and interest on and premiums, if any, due upon the redemption thereof, of
the bonds, payment of which is required to be made out of the revenues of the enterprise, and also
to provide for such payments into the Reserve Fund as are required under the terms of this
resolution. The revenues from the enterprise or any other funds pledged or otherwise made
available to secure payment of the principal of and interest on the bonds shall not be mortgaged,
encumbered, sold, leased, pledged, any charge placed thereon, or disposed of or used except as
authorized by the terms of this resolution. The City further covenants that it will not enter any
agreement which impairs the operation of the enterprise or any part of it necessary to secure
adequate revenues to pay the principal and interest of the bonds or which otherwise would impair
the rights of the bondholders with respect to the revenues or the operation of the enterprise. If
any substantial part of the enterprise is sold the payment therefor shall be placed in the Bond
Service Fund or the Redemption Fund and shall beased to pay or call outstanding bonds in
the manner provided in this resolution.
Covenant 6. Insurance. The City covenants that it shall at all times maintain with respon-
sible insurers all such insurance on the enterprise as is customarily maintained with respect to
works and properties of like character against accident to, loss of or damage to such works or
properties. If any useful part of the enterprise shall be damaged or destroyed, such part shall be
restored to use. The money collected from insurance against accident to or destruction of the
physical enterprise shall be used for repairing or rebuilding the damaged or destroyed enterprise,
8
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Proof of May 16, 1958 - J. m
and to the extent not so applied, shall be paid into the Bond Service Fund to be applied to the
retirement of any outstanding and unredeemed bonds issued for the enterprise.
The City shall also maintain with responsible insurers workmen’s compensation insurance and
insurance against public liability and property damage to the extent reasonably necessary to
protect the City and the bondholders.
Covenant 7. Records and Accounts. The City covenants that it shall keep proper books of
record and accounts of the enterprise, separate from all other records and accounts, in which
complete and correct entries shall be made of all transactions relating to the enterprise. Said
books shall at all times be subject to the inspection of the holders of not less than 10% of the
outstanding bonds or their representatives authorized in writing.
The City covenants that it will cause the books and accounts of the enterprise to be audited
annually by an independent certified public accountant or firm of certified public accountants and
will make available for inspection by the bondholders at the office of the City Clerk of said City
and at the office of the City Treasurer thereof, a copy of the report of such accountant or
accountants and will also upon request furnish a copy thereof to any bondholder and to any
person, firm or corporation who originally purchased the bonds from the City.
The City covenants that it will cause to be published annually, not more than 120 days after
the close of each fiscal year, a summary statement showing the amount of gross revenues and the
amount of all other funds collected which are required to be pledged or otherwise made available
as security for payment of principal of and interest on the bonds, the disbursements from such
revenues and other funds in reasonable detail, and a general statement of the financial and physical
condition of the enterprise. The City shall furnish a copy of the statement to any bondholder
upon request.
Covenant 8. No Free Service. The City covenants that no water or other service from the
enterprise may be furnished or rendered to the United States of America, the State of California,
the City, any other municipal or public corporation or public agency or any private corpo-
ration or person free nor at rates lower than those charged other persons for similar service, except
that charges to the City for water used for street or sewer flushing and for fire hydrants may be
macle at rates lower than those charged private persons, and all rates for service rendered the City
shall be a reasonable charge for the service rendered. No building or other real property of the
enterprise shall be furnished free to the City, but the City shall pay into the Water Fund the
reasonable rental value of any property so used, and reasonable and proper charges for service
rendered or quarters furnished to the enterprise shall be paid to the City from the Water Fund.
The City covenants that it will at all times during the period any of the bonds are outstanding
maintain and enforce valid regulations for the payment of bills for water service and that such
regulations shall at all times during such period provide that the City shall discontinue service to
any user whose water bill has not been paid within the time fixed by said regulations, and such
time shall not be more than 45 days from the date the water bill became delinquent.
Covenant 9. Rates and Charges. The City shall and hereby covenants that it shall prescribe,
revise and collect such charges for the services, facilities and water of the enterprise which, after
making allowances for contingencies and error in the estimates, shall be at least sufficient to pay
the following amounts in the order set forth :
(a) The interest on and principal of the bonds as they become due and payable;
(b) All payments required for compliance with this resolution including the payments
required to be made into the Reserve Fund;
costs of the enterprise;
encumbrances upon or payable from the revenues of the enterprise;
(c) All current expenses for the necessary and reasonable maintenance and operation
(d) A11 payments to meet any other obligations of the City which are charges, liens,
and the charges shall be so fixed that after the payment of item designated (c) of this covenant the
net revenues of the enterprise available for the payment of items designated (a), (b) and (d) of this
covenant shall be at least 1.35 times the amounts payable under said (a) and (b) and 1 times the
amounts payable under said (d).
9
Proof of May 16, 1958 - J. q. B.
Covenant 10. No Priority for Additional Bonds. The City covenants that no additional bonds
shall be issued pursuant to said Revenue Bond Law or any other law of the State of California or
under the charter of said City (in the event said City should hereafter adopt a charter) having any
priority in payment of principal or interest out of the revenues of the enterprise over the bonds
hereby authorized to be issued and payable out of said revenues.
Covenant 11. Limits on Additional Debt. The City covenants that (except for bonds issued
to refund these bonds) no additional indebtedness evidenced by revenue bonds, revenue notes or
other similar evidences of indebtedness payable out of revenues derived from the enterprise and
ranking on a parity with these bonds shall be created or incurred unless :
First: The City is not in default under the terms of this resolution
Second : The net revenues of the enterprise, calculated on sound accounting principles, as
shown by the books of the City for the latest fiscal year ending prior to the incurring of such
additional indebtedness as shown by an audit certificate or opinion of an independent certified
public accountant or firin of certified public accountants employed by the City, plus, at the
option of the City either or both of the items hereinafter in this Covenant 11 designated (a)
and (b), shall have amounted to at least 1.35 times the maximum amount of annual debt service
in any fiscal year thereafter on all indebtedness to be outstanding immediately subsequent to
the incurring of such additional indebtedness.
The items either or both of which may be added to such net revenues for the purpose of
applying the restriction contained in this Covenant 11 are the following :
(a) An allowance for estimated increase in net revenues from any additions to or improve-
ments or extensions of the enterprise which have been made but which, during all or any part
of such fiscal year, were not in service and from any such additions, improvements or extensions
to be made with the proceeds of such additional indebtedness or with the proceeds of bonds
previously issued, all in an amount equal to 75% of the estimated additional average annual
net revenues to be derived from such additions, improvements and extensions for the first 36
month period in which each addition, improvement or extension is respectively to be in
operation, all as shown by the certificate or opinion of a qualified independent engineer
employed by the City,
(b) An allowance for estimated increases in net revenues arising from any increase in
water rates which has become effective prior to the incurring of such additional indebtedness
but which, during all or any part of such fiscal year, was not in effect, in an amount equal to 75% of the amount by which the net revenues of the enterprise would have been increased if
such increase in rates had been in eflect during the whole of such fiscal year, as shown by the
certificate or opinion of a qualified independent engineer employed by the City.
Section 22. Investment of Funds. Obligations purchased as an investment of moneys in
any funds hereby created which are herein authorized to be invested shall be deemed at all times
to be a part of such funds and any profit realized from the investment shall be credited to such
funds and any loss resulting from such investment shall be charged to such funds and, except
for the Reserve Fund, the interest accruing thereunder shall be credited to such funds. The City
shall sell at the best price obtainable or present for redemption 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 account or from such funds. For the purpose of determining at any given time the
balance in any such fund, any such investment constituting a part of such fund shall be valued
at the then estimated or appraised market value of such investment.
Section 23. Lost, Destroyed or Mutilated Bonds. In the event that any bond or any interest
coupon pertaining thereto is lost, stolen, destroyed or mutilated, the City will cause to be issued
a new bond or coupon similar to the original to replace the same in such manner and upon such
reasonable terms and conditions, including the payment of costs and the posting of a surety
bond if the City deems such surety bond necessary, as may from time to time be determined
and prescribed by resolution. The City Council may authorize such new bond or coupon or
coupons to be signed and authenticated in such manner as it determines in said resolution.
Section 24. Cancellation of Bonds. All bonds and coupons surrendered to any fiscal agent
of the City for payment upon maturity or for redemption shall upon payment therefor be cancelled
immediately and forthwith transmitted to the Treasurer of the City. All of the bonds and interest
10
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Proof of May 16, 1958 -
coupons surrendered to the Treasurer for payment upon maturity or for 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 authorization.
Section 25. Consent of Bondholders. The consents of bondholders provided for in Sections
25 to 31 inclusive, hereof shall relate solely to the amendment, waiver or modification of the
covenants specified in Section 21 hereof and shall not be effective to 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
bondholders holding sixty per cent (60%) in aggregate principal amount of the outstanding bonds,
exclusive of bonds, if any, owned by the City, shall be binding upon the holders of all of the bonds
and interest coupons, whether such coupons be attached to bonds or detached therefrom, and
shall not be deemed an infringement of any of the provisions of this resolution or of said Revenue
Bond 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 mattei-s has been given, no bondholder or holder of any interest coupon, whether
attached to a bond or detached therefrom, shall have any right or interest to object to such action
or in any manner to question the propriety thereof or to enjoin or restrain the City Council or
any officer of said City from taking any action pursuant thereto.
Section 26. Calling Bondholders’ Meeting. If the City Council shall desire to obtain any such
consent it shall duly adopt a resolution calling a meeting of bcndholders for the purpose of
considering the action, the consent to which is desired.
Section 27. Notice of Meeting. Notice specifying the purpose, place, date and hour of such
meeting shall be published once in a financial newspaper or journal of national circulation
published in the City of New York, New York not less than sixty (60) days and not more than
ninety (90) days prior to the date fixed for the meeting. Such notice shall set forth the nature
of the proposed action, consent to which is desired. If any of the bonds shall be so registered as
to be payable otherwise than to bearer, the City Clerk shall, on or before the first publication of
such notice, mail a similar notice, postage prepaid, to the respective registered owners thereof
at their addresses appearing on the bond registry books. The place, date and hour of holding
such meeting and the date or dates of publishing and mailing such notice shall be determined
by the City Council, in its discretion.
The actual receipt by any bondholder of notice of any such meeting shall not be a condition
precedent to the holding of such meeting, and failure to receive such notice shall not affect the
validity of the proceedings thereat. A certificate by the City Clerk, approved by resolution of the
City Council of said City, 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 28. Voting Qualifications. Any bondholder may, prior to any such meeting, deliver
his bond or bonds to any agency designated by the City Council of the City for the purpose, and
shall thereupon be entitled to receive an appropriate receipt for the bond or bonds so deposited,
calling for the redelivery of such bond or bonds at any time after the meeting. The City Treasurer
shall prepare and deliver to the Chairman of the meeting a list of the names and addresses of the
registered owners of bonds, with a statement of the maturities and serial numbers of the bonds
held and deposited by each of such bondholders, and no bondholder shall be entitled to vote at such
meeting unless his name appears upon such list or unless he shall present his bond or bonds at the
meeting or a certificate of deposit thereof, satisfactory to the City Council, 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 29. Issuer-owned Bonds. The City Council covenants that it will present at the
meeting a certificate, signed and verified by one member thereof and by the City Treasurer, stating
the maturities and serial numbers of all bonds owned by, or held for account of, the City, directly
or indirectly. No person shall be permitted at the meeting to vote or consent with respect to any
bond appearing upon such certificate, or any bond which it shall be established at or prior to the
meeting is owned by the City, directly or indirectly, and no such bond (in this resolution referred
to as “issuer-owned bond”) shall be counted in determining whether a quorum is present at the
meeting.
11
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Proof of May 16, 1958- J. BF,.
Section 30. Quorum and Procedure. A representation of at least sixty per cent (60%) in
aggregate principal amount of the bonds then outstanding (exclusive of bonds, if any, owned
by the City) shall be necessary to constitute a quorum at any meeting of bondholders, but less
than a quorum may adjourn the meeting from time to time, and the meeting may be held as so
adjourned without further notice, whether such adjournment shall have been had by a quorum or
by less than a quorum. The City Council shall, by an instrument in writing, appoint a temporary
chairman of the meeting, and the meeting shall be organized by the election of a permanent
chairman and a secretary. At any meeting each bondholder shall be entitled to one vote for every
$1,000 principal amount of bonds with respect to which he shall be entitled to vote as aforesaid,
and such vote may be given in person or by proxy duly appointed by an instrument in writing
presented at the meeting. The City Council, by its duly authorized representative, may attend any
meeting of the bondholders, but shall not be required to do so.
Section 31. Vote Required. At any such meeting held as aforesaid there shall be submitted
for the consideration and action of the bondholders a statement of proposed action, consent to
which is desired, and if such action shall be consented to and approved by bondholders holding
at least sixty per cent (6070) in aggregate amount of the bonds then outstanding (exclusive of
issuer-owned bonds) the chairman and secretary of the meeting shall so certify in writing to the
City Council, and such certificate shall constitute complete evidence of consent of bondholders
under the provisions of this resolution. A certificate signed and verified by the chairman and
the secretary of any such meeting, shall be conclusive evidence and the only competent evidence
of matters stated in such certificate relating to proceedings taken at such meeting.
Section 32. Bond and Coupon Forms. Said bonds shall be payable to bearer, shall be issued
in negotiable form, and shall be negotiable, and the form of said bonds and interest coupons thereof
shall be substantially as follows :
UNITED STATES OF AMERICA
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CARLSBAD
WATERWORKS REVENUE BOND, 1958
No .____._______ ~ _._.___._.. $1,000
THE CITY OF CARLSBAD, a municipal corporation situated in the County of San
Diego, State of California, FOR VALUE RECEIVED, hereby promises to pay, solely from
the Water Fund, as hereinafter provided, to the bearer or, if this bond be registered, to the
registered owner hereof, on July 1, 19 ......, upon presentation and surrender of this bond,
the sum of ONE THOUSAND DOLLARS, with interest thereon at the rate of -.-...% per
annum, payable annually for the first year and semiannually thereafter on the first days of
July and January of each and every year from the date hereof until this bond is paid, upon
presentation and surrender of the respective interest coupons hereto attached ; provided,
however, that if at the maturity date of this bond or, if the same is redeemable prior to maturity
and shall be duly called for redemption, then at the date fixed for redemption, funds are avail-
able for the payment or redemption thereof, as provided in the resolution hereinafter mentioned,
this bond shall then cease to bear interest. Both principal and interest are payable in lawful
money of the United States of America at the office of the City Treasurer of the City of
Carlsbad, in said City, or, at the option of the holder hereof, at any fiscal agency of the
City of Carlsbad in Los Angeles, California, or in Chicago, Illinois, or in New York,
New York.
This bond and the interest hereon and any premium upon the redemption hereof are not a
debt of the City of Carlsbad, nor a legal or equitable pledge, charge, lien or encumbrance upon
any of its property or upon any of its income, receipts, or revenues except the revenues of the
municipal waterworks system pledged to its payment, and the principal and interest of this
bond and any premium upon the redemption hereof are payable solely from the revenues
pledged to its payment, to wit, gross revenues from the waterworks system of the City of
Carlsbad, and said City is not obligated to pay such principal, interest and premium except
from said revenues. The Water Fund is established under and pursuant to the Revenue
Bond Law of 1941, and under the provisions of the resolution authorizing the issuance of this
12
..
Proof of May 16, 1958- J. €3.
bond the gross revenues received from the services, facilities and water or arising from the
entire waterworks system of the City (except for inclusion fees as defined in said resolution)
are required to be deposited in the City Treasury to the credit of said Water Fund and used
only for the purposes authorized by said resolution, including the payment of principal and
interest of the issue of bonds of which this is one.
This is one of a duly authorized issue of bonds of the City designated “Waterworks
Revenue Bonds, 1958,” hereinafter called “the bonds,” all of which have been issued pursuant
to the Revenue Bond Law of 1941 (being Chapter 6, Part 1, Division 2, Title 5 of the Govern-
ment 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 the City Council of said City
authorizing the bonds adopted ................................. 19 ......, designated Resolution No. -....--..~~--.---...,
and this reference incorporates said resolution and said Chapter 6 herein, and by acceptance
hereof the holder of this bond and the coupons hereto attached assents to said terms and
conditions. Said resolution is adopted under, and this bond and the interest coupons hereto
attached are issued under and are to be construed in accordance with the laws of the State
of California.
By the terms of said Revenue Bond Law and by covenant expressed in said resolution,
officers of the City are obligated to fix rates and collect charges for service from the water-
works system of the City such as to provide revenues sufficient to pay the interest on and
principal of the bonds as they become due and payable in addition to all other obligations
and indebtedness payable from such Water Fund or any fund derived therefrom and all
current expenses for the necessary and reasonable maintenance and operation costs of the
waterworks system, are prohibited from issuing bonds having any priority with respect to
payment from the waterworks revenues, and are subject to conditions with respect to any
sale of said waterworks system. In the manner provided in the resolution, any or all of
the obligations referred to in this paragraph and certain other obligations mentioned in said
resolution may be waived with the consent of the holders of 6076 in aggregate principal
amount of the outstanding bonds, exclusive of issuer-owned bonds.
This bond is callable and redeemable prior to maturity, except for refunding, and unless
this bond matures on or prior to July 1, 1969, it is callable and redeemable prior to maturity
for the purpose of refunding, all in accordance with the provisions for redemption prior to
maturity endorsed hereon.
This bond and the coupons hereto attached are negotiable instruments and shall be
negotiable by delivery. This bond may be registered as to principal only or as to both
principal and interest, in accordance with the provisions for registration endorsed hereon.
It is hereby certified and recited that any and all acts, conditions and things required
to exist, to happen and to be performed precedent to and in the incurring of the indebtedness
evidenced by this bond and in the issuance of this bond 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, together with all other indebtedness of the City
pertaining to the aforesaid waterworks system, is within every debt and other limit prescribed
by the Constitution and Statutes of the State of California.
IN WITNESS WHEREOF, said City of Carlsbad has caused this bond to be signed by
the Mayor and the City Treasurer of said City by their facsimile signatures, countersigned by
the City Clerk of said City, and sealed with the corporate seal of said City, and the interest
coupons hereto attached to be signed by the City Treasurer by his facsimile signature, and
has caused this bond to be dated the first day of July, 1958.
COUKTERSIGNED :
Mayor of the City of Carlsbad,
California
City Clerk of the City of
Carlsbad, California
(SEAL) 13
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Proof of May 16, 1958 - J.
.,
(COUPON FORM)
Coupon No .... _____
19 ...................... On the first day of ._._._._____________
THE CITY OF CARLSBAD, CALIFORNIA,
will pay to the bearer, at the office of the City Treasurer of said City,
in said City, or at the option of the holder hereof, at any fiscal agency
of the City of Carlsbad in Los Angeles, California, or in Chicago,
Illinois, or in Kew York, n'ew York, out of the Water Fund of said
City and not out of any other fund or moneys of the City, the sum of
in lawful money of the United States of America, being the interest
then due on W7ATERWORKS REVENUE BOND, 1958, No.
dated July 1, 1953, subject to the provisions on the reverse hereof.
$-.-----.-.-.-.-.-.-.~.--
______ ___.___ ._______ __.__
City Treasurer of the City of
Carlsbad, California
On the reverse side of the coupon there shall be printed substantially the following:
(REVERSE OF COUPON)
If the bond to which this coupon is attached is redeemable and is duly called for redemp-
tion on a date prior to the maturity date of this coupon, this coupon will be void.
Substantially the following provisions for redemption prior to maturity and for registration
shall be printed on the reverse side of the bond:
PROVISIONS FOR REDEMPTION PRIOR TO MATURITY
This bond is redeemable prior to maturity, except for refunding, in the manner and
subject to the terms and provisions, and with the effect, set forth in the resolution of the
City Council of the City of Carlsbad, referred to on the face of this bond, at the option of said
Council, on July 1, 1960, or on any interest payment date thereafter prior to maturity, upon
at least 30 days' prior notice published in a newspaper circulated in the City of Carlsbad,
California, and in a financial newspaper or journal of national circulation published in the
City of New York, New York, at a redemption price for each redeemable bond equal to the
principal amount thereof plus the following premiums (percentage of par value) if redeemed
at the following times:
REVENUE REDEMPTION DATES AND PREMIUMS
On or After July 1 And Prior to July 1
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
Maturity
Unless this bond matures on or prior to July 1, 1969, it is redeemable prior to maturity
for the purpose of refunding in the manner and subject to the terms and provisions, and with
the effect, set forth in the resolution of the City Council of the City of Carlsbad, referred to
on the face of this bond, at the option of said Council, on July 1, 1969, or on any interest
payment date thereafter prior to maturity, upon at least 30 days' prior notice published in a
newspaper circulated in the City of Carlsbad, California, and in a financial newspaper or
14
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Proof of May 16, 1958- J. a
journal of national circulation published in the City of New York, New York, at a redemption
price for each redeemable bond equal to the principal amount thereof plus the following
premiums (percentage of par value) if redeemed at the following times:
REFUNDING REDEMPTION DATES AND PREMIUMS
On or After July 1
1969
1970
1971
1972
1973
1974
1975
And Prior to
July 1
1970
1971
1972
1973
1974
1975
Maturity
Refunding
Premium
PROVISIONS FOR REGISTRATION
This bond, if unregistered, may be registered in the name of any person (designated by
the bearer) as the registered owner hereof, either as to principal only or as to both principal
and interest.
This bond, 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, change of form of registration, or discharge
from registration of this bond shall be entered by the City Treasurer of the City of Carlsbad,
California, in books kept for the purpose at his office in Carlsbad, California, and noted by
him in the registration blank on this bond.
Registration as to principal oiily shall not affect the negotiability by delivery of the
coupons pertaining to this bond.
Upon any registration of this bond as to both principal and interest, all unmatured
coupons pertaining hereto shall be surrendered to the City Treasurer aiid 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 premium upon the redemption hereof shall be payable only to the registered
owner, or to his order. Interest on this bond, if registered as to both principal and interest,
shall be payable to the person whose name appears upon the registry books as the registered
owner hereof at the close of business on the tenth day preceding the interest payment date,
or to his order.
If this bond is registered as to both principal and interest and its registration is changed
to registration as to principal only, or if it is discharged from registration, there shall be
attached hereto coupoiis representing interest hereon to become due thereafter to the date
of maturity, hereof. In lieu thereof, and upon surrender and cancellation hereof, the City
Treasurer 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 signatures on the new bond shall be those of the persons holding
the offices at the time of affixing such signatures. The issuance of any such new bond or of
new coupons shall be at the expense of the registered owner.
Each discharge hereof from registration shall be effected by an entry on the registry
books, and a notation in the blank below, that this bond is payable to bearer, whereupon this
bond shall become an unregistered bearer instrument, negotiable by delivery as if it had never
been registered.
Each registration of this bond, if unregistered, will be made only upon request of the
bearer hereof. Each transfer, change of form of registration, or discharge from registration
15
'. BF,. re
r- .
J. Proof of May 16, 1958 - J. m
of this bond, or issuance of a new bond in lieu hereof, will be made only upon request of the
registered owner.
Each request or transfer must be in form satisfactory to the City Treasurer and must be
made in writing, signed by the registered owner, or by his agent duly authorized in writing, or
by the bearer, as required.
Date of In Whose Name Manner of Signature of Registration Registered Registration City Treasurer
Section 33. Proceedings Constitut* Contract. The provisions of this resolution and of the
resolutions providing for the sale of the bonds and awarding the bonds and fixing the interest
rate or rates thereon shall constitute a contract between the City and the bondholders and the
provisions thereof shall be enforceable by any bondholder for the equal benefit and protection
of all bondholders similarly situated by mandamus, accounting, mandatory injuction or any
other suit, action or proceeding at law or in equity that is now or may hereafter be authorized
under the laws of the State of California in any court of competent jurisdiction. Said contract is
made under and is to be construed in accordance with the laws of the State of California.
No remedy conferred hereby upon any bondholder is intended to be exclusive of any other
remedy, but each such remedy is cumulative and in addition to every other remedy and may be
exercised without exhausting and without regard to any other remedy conferred by the Revenue
Bond Law of 1941 or any other law of the State of California. No waiver of any default or breach
of duty or contract by any bondholder shall affect any subsequent default or breach of duty or
contract or shall impair any rights or remedies on said subsequent default or breach. No delay
or omission of any bondholder to exercise any right or power accruing upon any default shall
impair any such right or power or shall be construed as a waiver of any such default or
acquiescence therein. Every substantive right and every remedy conferred upon the bondholders
may be enforced and exercised as often as may be deemed expedient. In case any suit, action
or proceeding to enforce any right or exercise any remedy shall be brought or taken and the
bondholder shall prevail, said bondholder shall be entitled to receive from the Water Fund
reimbursement for reasonable costs, expenses, outlays and attorney's fees and should said suit,
action or proceeding be abandoned, or be determined adversely to the bondholders then, and in
every such case, the City and the bondholders shall be restored to their former positions, rights
and remedies as if such suit, action or proceeding had not been brought or taken.
After the issuance and delivery of the bonds this resolution and supplementary resolutions
thereto shall be irrepealable, but shall be subject to modification to the extent and in the manner
provided in Sections 25 to 31, inclusive, of this resolution, but to no greater extent and in no
other manner.
Section 34. Future Contracts. Nothing herein contained shall be deemed to restrict or pro-
hibit the City from making contracts or creating bonded or other indebtedness payable from
the general fund of the City or from taxes or any source other than the revenues of the enter-
prise as defined herein, and from and after the sale of the bonds the general fund of the City
shall not include the revenues of the enterprise and no contract or other obligation payable from
the general fund of the City shall be payable from the revenues of the enterprise, except as
provided in Section 19 hereof.
Section 35. Severability. If any covenant, agreement or provision, or any portion thereof,
contained in this resolution, or the application thereof to any person or circumstance, is held to
be unconstitutional, 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 circum-
stances, shall be deemed severable and shall not be affected thereby, and this resolution and the
bonds issued pursuant hereto shall remain valid and the bondholders shall retain all valid rights
16
e 2 n* I-* .\ ', Proof of May 16, 1958- J.
and benefits accorded to them under this resolution and the Constitution and laws of the State of
California.
Section 36. Effective Date. This resolution shall take effect upon adoption.
#
ADOPTED, SIGNED AND APPROVED
ATTEST : 7% , -..
Clerk of the City of Carlsbad, California
(SEAL)
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO \ ss.
CITY OF CARLSBAD J
, City Clerk of the City of Carlsbad, California, DO HEREBY CERTIFY
.r H.f?L/L€
I, l!Jf-t:;lAILD that the foregoing resolution was duly adopted by the City Couiicil of said City and was a proved
by the Mayor of said City at a regular meeting of said City Council held on the .. //. ..... day of
June, 195S, and that it was adopted by the following vote, to wit:
elz
Mayor Baird , AYES : Councilmen- Lough, Helton,
NOES : Councilmen - None Ledgerwood and Gounciiwoman Someman
ABSENT : Councilmen - None 2
City Clerk of the City of
Carlsbad, California
(SEAL)
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO 1 ss.
CITY QEL CbRLSBAD -1; P:'/@.f- J
._ I, &b%;< U. EL'VALfi , City Clerk of the City of Carlsbad, California, DO HEREBY CERTIFY
that the above and foregoing is a full, true and correct copy of Resolution KO. -.?y.?and that
the same has not been amended or repealed.
Dated June L!-, 1958.
Y \ City Clerk of the City of
(SEAL)
Carlsbad, California
17