AgdaPkt 2019-05-20 Joint SA PFA - Laserfiche WebLink

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8.A. - Page 22 of 73 the City that are charged directly or apportioned to the operation of the Sewer Utility System, such as the portion of salaries and wages of employees, overhead, taxes (if any) and insurance premiums allocable to the Sewer Utility System. "Operation and Maintenance Costs" do not include (i) payments of debt service on bonds, notes or other obligations issued by the City with respect to the Sewer Utility System, (ii) payments made by the City under the Joint Powers Agreement in respect of debt service on notes, bonds or other obligations issued by the Authority to finance the Project, (iii) depreciation, replacement and obsolescence charges or reserves therefor, and (iv) amortization of intangibles or other bookkeeping entries of a similar nature." (g) The definition of "Parity Debt" in Appendix A of the Financing Agreement is hereby amended and restated in its entirety to read as follows: Parity Debt' means any bonds, notes, loans, leases, installment sale agreements or other obligations of the City payable from and secured by a pledge of and first lien upon the Net Revenues, entered into or issued in accordance with Section 8(a) through (c). The term "Parity Debt" does not apply to any obligations of the Authority which are payable to the California State Water Resources Control Board or any other financial institution, which are not secured by a pledge of and lien upon the Net Revenues." (h) The following definition of "Subordinate Debt" is hereby added to Appendix A of the Financing Agreement: Subordinate Debt" means any additional bonds, notes, loans, leases, installment sale agreements or other obligations of the City payable from and secured by a subordinate pledge of and second lien upon any of the Net Revenues, entered into or issued in accordance with Section 8(d)." (i) The following definition of "Subordinate Debt Documents" is hereby added to Appendix A of the Financing Agreement: Subordinate Debt Documents" means, collectively, the indenture of trust, trust agreement, loan agreement, installment sale agreement, financing agreement or other document authorizing the issuance of any Subordinate Debt, each as amended, amended and restated or otherwise modified from time to time." (j) The definition of "Unencumbered Fund Balance," as set forth in the Financing Agreement is hereby amended and restated in its entirety to read as follows: Unencumbered Fund Balance" means, for any Fiscal Year, the balance of Net Revenues remaining on deposit in the Sewer Utility Fund and any rate stabilization fund related to the Sewer Utility System established by the City as of the last day of such Fiscal Year, as shown on the books of the City, which may lawfully be used to pay the SBSA Bond Payments. The amount of the Unencumbered Fund Balance as of the last day of any Fiscal Year does not include any funds which the City determines will be required for payment of the SBSA Bond Payments or the principal of, and interest and premium (if any) on, any Parity Debt during the next six months." 5 536