AgdaPkt 2017-01-23 Closed and Joint

Browse Search

-11- 2017 Installment Payments; Application of Systems Revenues 2017 Installment Payments. Under the 2017 Installment Purchase Contract, the City will irrevocably pledge all of the Net Revenues to the punctual payment of the 2017 Installment Payments, and the interest thereon. This pledge constitutes a first lien on the Net Revenues and such other moneys for the payment of the 2017 Installment Payments in accordance with the 2017 Installment Purchase Contract, on a parity with the pledge and lien which secures any Parity Obligations, including the 2015 Installment Payments and the 2013 Installment Payments. The City is obligated to make 2017 Installment Payments to the Trustee, on behalf of and as assignee of the Authority. “Net Revenues” means, for any period, all of the Gross Revenues during such period less all of the Maintenance and Operation Costs during such period. “Gross Revenues” means all gross income and revenue received or receivable by the City from the ownership and operation of the Enterprise, calculated in accordance with Generally Accepted Accounting Principles, including all rates, fees and charges (including connection fees) received by the City for Water Service and all other income and revenue howsoever derived by the City from the Enterprise or arising from the Enterprise (including transfers from the Rate Stabilization Fund to the Revenue Fund); provided, however, that (i) any specific charges levied for the express purpose of reimbursing others for all or a portion of the cost of the acquisition or construction of specific facilities, or (ii) customers’ deposits or any other deposits subject to refund until such deposits have become the property of the City, are not Gross Revenues and are not subject to the lien of the 2017 Installment Purchase Contract. Gross Revenues shall also include interest with respect to any Parity Obligations reimbursed to or on behalf of the City by the United States of America. “Maintenance and Operation Costs” means the reasonable and necessary costs and expenses paid by the City (excluding 2017 Installment Payments or other payments in the nature of debt service on obligations secured by Enterprise Revenues) for maintaining and operating the Enterprise, as determined in accordance with Generally Accepted Accounting Principles, including but not limited to (a) the reasonable expenses of management and repair and other costs and expenses necessary to maintain and preserve the Enterprise in good repair and working order, (b) the cost of wholesale water purchases from the San Francisco Public Utilities Commission and any surcharges related thereto, (c) the Bay Area Water Supply & Conservation Agency bond surcharge (“BAWSCA”) imposed by BAWSCA in connection with prepayment of the City’s portion of a $367 million debt owed by the BAWSCA members to the City and County of San Francisco, and (d) administrative costs of the City attributable to the Enterprise and the financing thereof. Maintenance and Operation Costs does not include (i) depreciation, replacement and obsolescence charges or reserves therefor, (ii) in any Fiscal Year, prior to setting aside an amount equal to the 2017 Installment Payments for such Fiscal Year, capital expenditures other than as set forth in clause (a) above, or (iii) amortization of intangibles or other bookkeeping entries of a similar nature. Application of Revenues. The City is required to deposit all of the Gross Revenues of the Enterprise immediately upon receipt in the Revenue Fund, which has been established and is held and maintained by the City with respect to the Enterprise. Amounts on deposit in the Revenue Fund will be applied by the City to pay when due the following amounts in the following order of priority: (i) all Maintenance and Operation Costs of the Enterprise; 8.C. - Page 36