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AgdaPkt 2017-01-23 Closed and Joint
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AgdaPkt 2017-01-23 Closed and Joint
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Last modified
1/24/2017 10:22:46 AM
Creation date
1/19/2017 3:58:58 PM
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Template:
CC Index
CC Index - Document Type
Agenda Packet
Meeting Type
Joint
Agency Type
City Council and Successor Agency and Public Financing Authority
Date
1/23/2017
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-3- <br />Payments if certain conditions are satisfied. See “SECURITY FOR THE BONDS—Additional <br />Debt.” <br /> <br />The 2013 Installment Purchase Contract, the 2015 Installment Purchase Contract and all <br />bonds, notes, loan agreements, installment sale agreements, leases or other obligations of the <br />City payable from and secured by a pledge of Net Revenues on a parity with the payment of the <br />2017 Installment Payments are defined in the Indenture as “Parity Obligations.” <br /> <br />Rate Covenant <br /> <br />The City is obligated under the 2017 Installment Purchase Contract (and the 2015 <br />Installment Purchase Contract and the 2013 Installment Purchase Contract) to fix, prescribe and <br />collect rates, fees and charges in connection with the Enterprise so as to yield Gross Revenues at <br />least sufficient to pay operation and maintenance costs of the Enterprise, the 2017 Installment <br />Payments and all payments of principal of and interest with respect to any Parity Obligations as <br />they become due and payable, all amounts, if any, required to replenish reserve funds <br />established for Parity Obligations, and all payments required to meet any other obligations of <br />the City which are charges, liens, encumbrances upon, or which are otherwise payable from, the <br />Gross Revenues. <br /> <br />In addition, the City is required to fix, prescribe, revise and collect rates, fees and <br />charges for the services and facilities furnished by the Enterprise during each Fiscal Year which <br />are sufficient to yield estimated Net Revenues which are at least equal to 120% of the aggregate <br />amount of the 2017 Installment Payments, and principal of and interest on any Parity <br />Obligations coming due and payable during such Fiscal Year. <br /> <br />See “SECURITY FOR THE BONDS—Rate Covenants; Collection of Rates and Charges.” <br /> <br />Redemption <br /> <br />The Bonds are subject to optional and extraordinary casualty redemption as described <br />herein. See “THE BONDS—Redemption.” <br /> <br />Book-Entry Form <br /> <br />The Bonds will be delivered in fully registered form only and, when issued and <br />delivered, will be registered in the name of Cede & Co., as nominee of The Depository Trust <br />Company, New York, New York (“DTC”). DTC will act as securities depository for the Bonds. <br />Ownership interests in the Bonds may be purchased in denominations of $5,000 or any integral <br />multiple thereof, in book-entry form only. Principal, premium, if any, and interest are payable <br />directly to DTC by the Trustee. Upon receipt of payments of principal of, premium, if any, and <br />interest on the Bonds, DTC is obligated to remit such principal, premium, if any, and interest to <br />the participants in DTC for subsequent disbursement to the beneficial owners of the Bonds. See <br />“THE BONDS—Book-Entry Only System” below and APPENDIX G—BOOK-ENTRY ONLY <br />SYSTEM. <br /> <br />Continuing Disclosure <br /> <br />The City will covenant, pursuant to a continuing disclosure certificate (the “Continuing <br />Disclosure Certificate”) to be executed on the date of delivery of the Bonds, for the benefit of <br />owners and beneficial owners of the Bonds, to provide certain financial information and <br />operating data related to the Enterprise by not later than nine months following the end of the <br />City’s Fiscal Year (the “Annual Report”), and to provide notices of the occurrence of certain <br />enumerated events. The Annual Report and notices of enumerated events will be filed by the <br />8.C. - Page 28
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