HomeMy WebLinkAboutRES NO 196-93(1)RESOLUTION NO. I 9 6 - 9 3 {]')
RESOLUTION SUPPLEMENTING AND AMENDING FOR
CLARITY RESOLUTION NO. 196-93 TO PROVIDE FOR THE
ISSUANCE OF THE CITY OF BAKERSFIELD SEWER
REVENUE BONDS, SERIES 1997, ON A PARITY WITH THE
SERIES 1994 REVENUE BONDS, IN THE AGGREGATE
PRINCIPAL AMOUNT OF NOT TO EXCEED $25.0 MILLION,
AND AUTHORIZING RELATED ACTIONS AND EXECUTION
OF RELATED INSTRUMENTS.
(Sewer Revenue Bonds, Series 1997)
WHEREAS, the City of Bakersfield (the "City") is a charter city organized and
existing under the laws of the State of California (the "State"); and
WHEREAS, the City now owns and operates a municipal sewer system (the
"Enterprise"); and
WHEREAS, by Resolution No. 196-93, duly adopted on December 15, 1993 (the
"1994 Resolution"), the City Council (the "Council") of the City provided for the issuance
of the sewer revenue refunding bonds, which were issued in February 1994 as the City's
Sewer Revenue Refunding Bonds, Series 1994 (the "Series 1994 Bonds"), and were sold
and delivered to the Bakersfield Public Financing Authority (the "Authority") as part of the
set of local obligations purchased by the Authority with proceeds of the Authority's Series
1994A Revenue Bonds; and
WHEREAS, the 1994 Resolution provides that the City may, by supplemental
resolution, provide for the issuance of Parity Obligations (as said term is defined in the
Resolution) from time to time, subject to the specific conditions set forth therein, and may
amend the 1994 Resolution, without the consent of any Owner of the Series 1994 Bonds,
to the extent permitted by law and for the purpose, among other purposes, of curing any
ambiguity or curing, correcting or supplementing any defective provision contained in the
1994 Resolution or resolving questions arising under the 1994 Resolution, as the City may
deem necessary or desirable and which shall not adversely affect the interests of the
Owners of the 1994 Bonds; and
WHEREAS, the City is in receipt of a written opinion of Orrick, Herrington & Sutcliffe
LLP, Bond Counsel to the City for the Series 1997 Bonds, that the amendments proposed
by this resolution are within the scope of amendments permitted by Section 6.01 of the
1994 Resolution without the consent of any Owners of the Bonds; and
WHEREAS, the conditions specified by the 1994 Resolution for the issuance of
Parity Obligations in the amount proposed for this sewer revenue bond issue (the "Series
1997 Bonds") have been satisfied, and the Council has determined that it is in the interests
of the City to issue the Series 1997 Bonds in the principal amount of not to exceed Twenty-
Five Million Dollars ($25,000,000) pursuant to the 1994 Resolution, as supplemented by
this Supplemental Resolution (collectively, the 1994 Resolution and this Supplemental
Resolution are referred to as the "Resolution"), for the purpose of financing a portion of the
cost and expense of certain sewer system improvements to the Enterprise (as further
defined herein, the "1997 Project"); and
WHEREAS, Section 33.3 of the Charter of the City, as implemented by Chapter
3.55 of the Municipal Code of the City, authorizes the City to issue enterprise revenue
bonds for such purposes.
NOW, THEREFORE, BE IT FOUND, DETERMINED AND RESOLVED by the
Council of the City of Bakersfield, as follows:
ARTICLE IX
AUTHORIZATION OF SERIES 1997 BONDS; DEFINITIONS
SECTION 9.01.
Authorization of Series 1997 Bonds. The City has reviewed all
proceedings heretofore taken and has found, as a result of such review, and hereby finds
and determines, that all things, conditions and acts required by law and the 1994
Resolution to exist, happen or be performed precedent to and in connection with the
issuance of the Series 1997 Bonds to exist, have happened and have been performed in
due time, form and manner as required by law and the 1994 Resolution, and the City is
now duly empowered, pursuant to each and every requirement of law and the 1994
Resolution, to issue the Series 1997 Bonds in the manner and form provided in this
Supplemental Resolution.
SECTION 9.02.
Definitions. The terms defined in Section 1.02 of the 1994 Resolution shall
for all purposes of this Supplemental Resolution have the meanings specified in the 1994
Resolution, unless otherwise provided in this Section 9.02.
(a) The definition of the term "Bonds" is amended to read as follows:
"Bonds" means the Series 1994 Bonds, the
Series 1997 Bonds and any Parity Obligations
heretofore issued; provided that with respect to
Sections 2.01, 2.02, 2.03(a) and 3.06 of the
1994 Resolution, "Bonds" means the Series
1994 Bonds. "Series 1994 Bonds" means the
City of Bakersfield Sewer Revenue Refunding
Bonds, Series 1994. "Series 1997 Bonds'
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"Maintenance and Operations Costs" means the
reasonable and necessary costs and expenses
paid or incurred by the City for maintaining and
operating the Enterprise, determined in
accordance with generally accepted accounting
principles, including all reasonable expenses of
management, repair and other expenses
necessary to maintain and preserve the
Enterprise in good repair and working order, and
including all administrative costs of the City that
are properly charged directly or apportioned to
the operation of the Enterprise, such as salaries
and wages of employees, overhead, taxes (if
any) and insurance premiums, and including all
other reasonable and necessary costs and
expenses of the City or charges required to be
paid by the City to comply with the terms hereof,
such as compensation, reimbursement and
indemnification of the Fiscal Agent and fees and
expenses of Independent Certified Public
Accountants and Independent Financial
Consultants; but excluding in all cases Annual
Debt Service, depreciation, replacement and
obsolescence charges or reserves therefore and
amortization of intangibles.
(g) The following terms used in this Supplemental Resolution shall have
the following meanings:
"Bond Law" means Chapter 3.55 of the Municipal Code of the City,
entitled the "Enterprise Revenue Bond Law."
"1997 Project" means the improvements to the Enterprise described
in the Preliminary Official Statement respecting the Series 1997 Bonds, dated November
19, 1997, in the section entitled "THE ENTERPRISE AND THE PROJECT - The Project."
"1997 Project Fund" means the fund by that name established and
held by the Fiscal Agent pursuant to Section 10.07(c).
"Rebate Fund" means the fund by that name established and held by
the Fiscal Agent pursuant to Section 11.02.
"1997 Reserve Fund" means the fund by that name established and
held by the Fiscal Agent pursuant to Section 11.01.
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"1997 Reserve Requirement" means, as of any date of calculation, an
amount equal to the lesser of: (i) ten percent (10%) of the original principal amount of the
Series 1997 Bonds; (ii) one hundred twenty-five percent (125%) of average annual debt
service on the Series 1997 Bonds; and (iii) maximum annual debt service on all Series
1997 Bonds Outstanding.
"Supplemental Resolution" means this Supplemental Resolution,
specifically authorized by the 1994 Resolution.
ARTICLE X
THE SERIES 1997 BONDS
SECTION 10.01.
Authorization and Designation. The Series 1997 Bonds, in the aggregate
principal amount not to exceed Twenty-Five Million Dollars ($25,000,000), are hereby
authorized to be issued by the City under and subject to the terms of the Resolution and
the Bond Law. The Series 1997 Bonds shall be designated the "City of Bakersfield Sewer
Revenue Bonds, Series 1997."
SECTION 10.02.
Terms of Series 1997 Bonds. The Series 1997 Bonds shall be issued in
fully registered form without coupons in denominations of Five Thousand Dollars ($5,000)
or any integral multiple thereof, numbered consecutively upward in order of issuance. The
Series 1997 Bonds shall be initially issued and registered in the name of "Cede & Co.," as
nominee of The Depository Trust Company ("DTC"), and shall be evidenced by one Series
1997 Bond maturing on each of the maturity dates specified in the maturity schedule set
forth as Appendix A ("Appendix A") to the Purchase Contract (the "Purchase Contract"),
dated the date of its execution and to be entered into between the City and George K.
Baum & Company (the "Underwriter"), as original purchaser of the Sedes 1997 Bonds, and
in a denomination corresponding to the total principal designated in said Appendix A to
mature on such date. Registered ownership of the Series 1997 Bonds, or any portion
thereof, may not thereafter be transferred except as set forth in Section 10.05 of this
Supplemental Resolution.
Concurrently with the adoption of this Supplemental Resolution, the
Council will adopt its resolution approving the form and substance of various documents
pertaining to the issuance, sale and delivery of the Series 1997 Bonds, including the
Purchase Contract, and providing for establishment of the maturity schedule, interest rates
and redemption provisions prior to execution thereof on behalf of the City.
The Series 1997 Bonds shall mature and become payable on the
Principal Payment Dates in each of the years and in the amounts as set forth and will be
subject to redemption in advance of maturity as set forth in Appendix A when executed on
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behalf of the City.
The Series 1997 Bonds shall be dated as provided in the Purchase
Contract when executed on behalf of the City, and shall bear interest from said date at the
rates shown on said Appendix A. Interest shall be paid on each Interest Payment Date
to the Owner in whose name the ownership of the Series 1997 Bonds is registered on the
Bond Registration Books at the close of business on the immediately preceding Record
Date. Interest shall be paid by check of the Fiscal Agent mailed by first class mail, postage
prepaid, on each Interest Payment Date to the Owners of the Series 1997 Bonds at their
respective addresses shown on the Bond Registration Books as of the close of business
on the preceding Record Date; or by wire transfer made on such Interest Payment Date
to any Owner of One Million Dollars ($1,000,000) or more in aggregate principal amount
of Series 1997 Bonds who shall have requested such transfer pursuant to written notice
filed with the Fiscal Agent, as registrar for the Series 1997 Bonds, received not later than
the preceding Record Date.
SECTION 10.03.
Redemption.
(a) Optional Redemption. The Series 1997 Bonds shall be
subject to redemption in whole or in part on any date on or after the September 15 to be
specified in Appendix A of the Purchase Contract for that purpose, in inverse order of
maturity and by lot within a maturity, at the option of the City from any available source of
funds, at a redemption price equal to one hundred percant (100%) of the principal amount
to be redeerned together with a redemption premium (computed upon the principal amount
of the Series 1997 Bonds to be redeemed) to be computed in accordance with a schedule
of redemption premiums to be set forth in Appendix A, plus accrued interest to the
redemption date; provided that the City and the Underwriter may provide in Appendix A,
in lieu of a schedule of redemption premiums, for a specific or set premium for redemption,
including a zero premium, and may also provide that the Series 1997 Bonds shall not be
subject to optional redemption in advance of maturity.
(b) Extraordinary Redemption. The Series 1997 Bonds are
also subject to redemption in whole or in part on any date in inverse order of maturity and
by lot within a maturity, at the option of the City, without premium, from the net proceeds
of insurance or eminent domain available therefor if the City does not apply such net
proceeds toward the acquisition or construction of additions, betterments, extensions or
improvements to the Enterprise at the principal amount thereof and accrued interest
thereon to the date fixed for such extraordinary redemption.
(c) Mandatory Sinking Fund Redemption. The Series 1997
Bonds designated as "Term Bonds," if any, in Appendix A are also subject to redemption
prior to their respective stated maturity or maturities, as the case may be, in part by lot,
from mandatory sinking account payments deposited in the "Mandatory Sinking Account,"
which the Fiscal Agent shall establish and maintain within the Principal Account in, tb,.e.~
event Term Bonds are specified in Appendix A, on any September 15 as set forth in said
Appendix A, at the principal amount thereof and interest accrued thereon to the date fixed
for redemption, without premium. Subject to the terms and conditions set forth in this
Section, such Series 1997 Bonds shall be redeemed (or paid at maturity, as the case may
be) by application of moneys in the Mandatory Sinking Account in the amounts and upon
the dates set forth in said Appendix A.
In the event that Series 1997 Bonds subject to mandatory
sinking fund redemption pursuant to this Section, if any, are redeemed in part prior to their
stated maturity date from any moneys other than moneys in the Mandatory Sinking
Account, the remaining Mandatory Sinking Account Payments, as set forth in Appendix A,
for such Series 1997 Bonds shall be reduced proportionately in each year remaining until
and including the final maturity date of such Series 1997 Bonds.
SECTION 10.04.
Form of Series 1997 Bonds. The Series 1997 Bonds shall be substantially
in the form set forth in the Resolution, subject to such revisions, additions and omissions
as may be appropriate. Without limiting the generality of the foregoing reservation of
entitlement to make revisions to the bond form, the Series 1997 Bonds will be established
in a form appropriate for book-entry only systems and for authentication, registration and
administration by the Fiscal Agent.
SECTION 10.05.
Use of Depository. Notwithstanding any provisions of the Resolution or this
Supplemental Resolution to the contrary:
(a) The Series 1997 Bonds shall be initially issued as provided in
Section 10.02 hereof. Registered ownership of such Series 1997 Bonds, or any portions
thereof, may not thereafter be transferred except:
{i) to any successors of DTC or its nominee, or of any
substitute depository designated pursuant to clause (ii) of this subsection (a) ("substitute
depository"); provided that such successor of DTC or substitute depository is qualified
under any applicable laws to provide the service proposed to be provided by it;
(ii) to any substitute depository, upon (1) the resignation of
DTC or its successor (or any substitute depository or its successor) from its functions as
depository, or (2) a determination by the City that DTC or its successor is no longer able
to carry out its functions as depository; provided that any such substitute depository shall
be qualified under any applicable laws to provide the services proposed to be provided by
it; or
(iii) to any person as provided below, upon (1) the
resignation of DTC or its successor (or substitute depository or its successor) from its
functions as depository, or (2) a determination by the City that DTC or its successor (or
substitute depository or its successor) is no longer able to carry out its functions as
depository.
(b) In the case of any transfer pursuant to clause (i) or clause (ii)
of subsection (a) of this Section, upon receipt of all Outstanding Series 1997 Bonds by the
City, a single new Series 1997 Bond, which the City shall prepare or cause to be prepared,
shall be executed and delivered for each maturity of such Series 1997 Bond then
Outstanding, registered in the name of such successor or such substitute depository, or
their nominees, as the case may be. In the case of any transfer pursuant to clause (iii) of
subsection (a) of this Section, upon receipt of all Outstanding Series 1997 Bonds by the
City, new Series 1997 Bonds, which the City shall prepare or cause to be prepared, shall
be executed and delivered in such denominations and registered in the names of such
persons, subject to the limitations of Section 10.02 hereof.
(c) In the case of a partial redemption or an advance refunding of
any Series 1997 Bonds evidencing a portion of the principal maturing in a particular year,
DTC shall make an appropriate notation on the Series 1997 Bonds indicating the date and
amounts of such reduction in principal. The City shall not be liable for DTC's failure to
make such notations or DTC's errors in making such notations and the City may rely
conclusively on its records as to the registered owners of the Series 1997 Bonds.
(d) The City and any Fiscal Agent shall be entitled to treat the
person in whose name any Series 1997 Bond is registered as the Owner thereof for all
purposes of the Resolution and any applicable laws, notwithstanding any notice to the
contrary received by the City; and the City and the Fiscal Agent shall not have
responsibility for transmitting payments to, communicating with, notifying, or otherwise
dealing with any beneficial owners of the Series 1997 Bonds. Neither the City nor the
Fiscal Agent shall have any responsibility or obligations, legal or otherwise, to any such
beneficial owners or to any other party, including DTC or its successor (or substitute
depository or its successor), except for the Owner of any Series 1997 Bond.
{e) So long as all outstanding Series 1997 Bonds are registered
in the name of Cede & Co. or its registered assigns, the City and the Fiscal Agent shall
cooperate with Cede & Co., as sole registered Series 1997 Bondholder, and its registered
assigns in effecting payment of the principal of and redemption premium, if any, and
interest on the Series 1997 Bonds by arranging for payment in such manner that funds for
such payments are properly identified and are made immediately available on the date
they are due.
SECTION 10.06.
Sale of Bonds. The Finance Director is hereby authorized to negotiate
the sale of the Series 1997 Bonds with the Underwriter, in accordance with the terms and
conditions of the Purchase Contract; provided that the Purchase Contract may not provide
for a principal amount of the Series 1997 Bonds in excess of Twenty-Five Million Dollars
($25,000,000), shall provide that the purchase price for the Series 1997 Bonds (exclusive
of any original issue discount, if any) shall be not less than 98.8% of the par amount of the
Series 1997 Bonds, and shall provide for an average interest rate (excluding the impact
of original issue discount or premium, if any) on the Series 1997 Bonds of not to exceed
6.50% per annum.
SECTION 10.07.
Application of Proceeds from Sale of Series 1997 Bonds. Upon the
receipt of the proceeds from the sale of the Series 1997 Bonds, the Fiscal Agent shall
deposit said proceeds as follows:
(a) The Fiscal Agent shall deposit in the Interest Account the
amount of accrued interest and premium, if any, received upon the sale of the Series 1997
Bonds;
{b) The Fiscal Agent shall deposit in the Series 1997 Reserve
Account the amount of which equals the 1997 Reserve Requirement, to be calculated in
accordance with the definition of the 1997 Reserve Requirement set forth above in this
Supplemental Resolution; and
(c) The Fiscal Agent shall deposit the remainder of the proceeds
into the 1997 Project Fund, which fund is hereby created and shall be maintained by the
Fiscal Agent until the completion of the 1997 Project. The moneys in the 1997 Project
Fund shall be disbursed by the Fiscal Agent to pay (or to make reimbursements or cash
advances to the City or any other state agency, public agency or person, firm or
corporation for such costs) for costs of the 1997 Project, including Costs of Issuance
relating to the Series 1997 Bonds. Any Series 1997 Bond proceeds remaining in the 1997
Project Fund upon completion of the 1997 Project shall be applied by the Fiscal Agent to
the payment of debt service on the Series 1997 Bonds or in such other manner as may be
determined by the City; provided that, to the extent that amounts on deposit in the Interest
Account or Principal Account or the 1997 Reserve Account are insufficient to pay interest
on, principal of or Mandatory Sinking Account payments, if any, with respect to any Series
1997 Bonds when due, on the date such amounts are due, the Fiscal Agent shall transfer
moneys on deposit in the 1997 Project fund to such accounts to make such payments.
ARTICLE Xl
ADDITIONAL COVENANTS OF THE CITY
SECTION 11.01.
Reserve Account. The City shall cause the Fiscal Agent to establish and
hereby covenants to cause the Fiscal Agent to maintain, so long as any of the Series 1997
Bonds are Outstanding, an account separate from any other fund or account established
and maintained hereunder designated the "Series 1997 Reserve Account" (the "1997
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Reserve Account"). The City hereby covenants to cause the Fiscal Agent to maintain in
the Reserve Account an amount equal to the 1997 Reserve Requirement.
On or before the last Business Day of each February and August, so
long as any Series 1997 Bonds are Outstanding, commencing in February 1998, the City
shall transfer to the Fiscal Agent for deposit in the 1997 Reserve Account that amount of
money which shall be required to maintain the 1997 Reserve Account in the full amount
of the 1997 Reserve Requirement.
All money in the 1997 Reserve account shall be used and withdrawn
by the Fiscal Agent solely for the purpose of replenishing the Interest Account or the
Principal Account, in that order, in the event of any deficiency at any time in either of such
accounts, but solely for the purpose of paying the interest on or principal of or redemption
premiums, if any, on the Series 1997 Bonds or for the retirement of all the Series 1997
Bonds then Outstanding, except that so long as the City is not in default hereunder, any
cash amounts in the 1997 Reserve Account in excess of the 1997 Reserve Requirement
shall be withdrawn from the 1997 Reserve Account on each September 16, beginning
September 16, 1998 and deposited in the 1997 Project Fund during construction of the
1997 Project and, upon completion of the 1997 Project, in the Debt Service Fund.
The 1997 Reserve Requirement may be satisfied by crediting to the
1997 Reserve Account moneys, a letter of credit, a reserve fund insurance policy, any
other comparable credit facility or any combination thereof, which in the aggregate make
funds available to the 1997 Reserve Account in an amount equal to the 1997 Reserve
Requirement; provided, however, that such letter of credit, reserve fund insurance policy
or other comparable credit facility, must be issued by a financial institution whose long
term debt or claims paying ability is rated "A" or better by Moody's and S&P at the time of
delivery of such letter of credit, reserve fund insurance policy or other comparable credit
facility. Upon the deposit with the Fiscal Agent of such letter of credit, reserve fund
insurance policy or other comparable credit facility, the Fiscal Agent shall release moneys
then on hand in the 1997 Reserve Account to the City in an amount equal to the face
amount of the letter of credit, reserve fund insurance policy or other comparable credit
facility.
SECTION 11.02.
Rebate Fund. The City shall cause the Fiscal Agent to maintain a fund
separate from any other fund established and maintained hereunder designated the
'Series 1997 Bonds Rebate Fund" (the "Rebate Fund"). Subject to a tax certificate dated
the Closing Date and prepared in connection with the issuance, sale and delivery of the
Series 1997 Bonds (the "Tax Certificate"), as such Tax Certificate may be amended and
supplemented from time to time, moneys held in the Rebate Fund are hereby pledged to
secure payments to the United States of America. The City or the Owners shall have no
dghts in or claim to such moneys. The City specifically covenants that the City will comply
with such Tax Certificate and will pay or cause to be paid to the United States of America
the rebate amounts as such term is used in such Tax Certificate at the times and in the
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amounts determined therein. The allocation of money in the Revenue Fund, the
investments of money in any fund or account, the application of funds upon acceleration
and the defeasance of Outstanding Series 1997 Bonds, all amounts required to be
deposited into or on deposit in the Rebate Fund shall be governed exclusively by this
Section and by the Tax Certificate (which is incorporated herein by reference).
Any funds remaining in the Rebate Fund after redemption and
payment with respect to all of the Series 1997 Bonds or provision made therefor, including
accrued interest and satisfaction of the Rebate Requirement (as defined in the 1997 Tax
Certificate), shall be withdrawn by Fiscal Agent and remitted to the City for any lawful
purpose.
SECTION 11.03.
Continuing Disclosure. The City hereby covenants and agrees that it will
comply with and carry out all of the provisions of that certain continuing disclosure
certificate to be entered into in connection with the issuance of the Series 1997 Bonds (the
'Continuing Disclosure Certificate"). Notwithstanding any other provision of the
Resolution, failure of the City to comply with the Continuing Disclosure Certificate shall not
be considered an Event of Default hereunder; however, the Participating Underwriter (as
defined in the Continuing Disclosure Certificate) or the Owners of at least twenty-five
percent (25%) aggregate principal amount of Outstanding Series 1997 Bonds, may take
such actions as may be necessary and appropriate, including seeking specific
performance by court order, to cause the City to comply with its obligations under this
Section.
SECTION 11.04.
Unclaimed Moneys. Anything contained herein to the contrary
notwithstanding, any money held by the Fiscal Agent in trust for the payment and
discharge of the interest or premium (if any) on or principal of the Series 1997 Bonds
which remains unclaimed for two (2) years after the date when the payments of such
interest, premium and principal have become payable, if such money was held by the
Fiscal Agent at such date, or for two (2) years after the date when the payments of such
interest, premium and principal have become payable, if such money was held by the
Finance Director (or duly appointed agent hereunder) at such date, or for two (2) years
after the date of deposit of such money if deposited with the Fiscal Agent after the date
when the interest and premium (if any) on and principal of such Series 1997 Bonds have
become payable, shall at the Written Request of the City be repaid by the Fiscal Agent to
the City as its absolute property free from trust, and the Fiscal Agent shall thereupon be
released and discharged with respect thereto and the Series 1997 Bond Owners shall look
only to the City for the payment of the interest and premium (if any) on and principal of
such Series 1997 Bonds. The provisions of this Section shall be subject to any contrary
provisions of applicable law of the State.
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ARTICLE Xll
AMENDMENT OF 1994 RESOLUTION
SECTION 12.01.
Amendment of Section 2.11 of the 1994 Resolution. Subparagraph (b)
of Section 2.11 of the 1994 Resolution is amended to read as follows:
"(b) An Independent Financial Consultant shall prepare and
file a Report with the Finance Director demonstrating and
stating (1) that, for the most-recently completed Fiscal Year,
Net Revenues (as adjusted for such rate increases for the
Enterprise as have been adopted and are either in effect or
are to become effective not later than the date on which
issuance of the Parity Obligations is authorized) are equal to
at least one hundred twenty-five percent (125%) of Maximum
Annual Debt Service (including estimated Maximum Annual
Debt Service for the Parity Obligations)."
SECTION 12.02.
Amendment of Section 3.02 of the 1994 Resolution. The following
sentences are hereby added to the end of Section 3.02 of the 1994 Resolution:
"The City may make adjustments from time to time in such
charges and may make such classification thereof as it deems
necessary, but shall not reduce the charges then in effect
unless the revenues generated by such charges will at all
times be sufficient to meet the requirements of this Section;
provided, that all fees and charges of the City in connection
with the Enterprise shall comply with the requirements of
Article XlIID, Section 6(b) and 6(c) of the California
Constitution to the extent deemed applicable."
SECTION 12.03.
Amendment of Section 3.04 of the 1994 Resolution. Section 3.04 of the
1994 Resolution is amended to read as follows:
"SECTION 3.04. Transfer from Wastewater Treatment
Fund: Establishment of Debt Service Fund. There is
hereby created a special fund to be known as the City of
Bakersfield Sewer Revenue Bond Debt Service Fund (the
"Debt Service Fund"), to be held and maintained by the Fiscal
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Agent. On each March 10 and September 10 while any of the
Bonds remain Outstanding, the City shall transfer from the
Wastewater Treatment Fund held by the City to the Fiscal
Agent for deposit in the Debt Service Fund the Net Revenues;
provided, however, that such obligation to transfer Net
Revenues shall be limited to an amount of Net Revenues
which, when added to other available amounts in the Debt
Service Fund, equals the amounts required to be deposited
into the Interest Account and the Principal Account pursuant
to Section 3.05 and to be deposited in the 1997 Reserve
Account pursuant to Section 11.01 ."
SECTION 12.04.
Amendment of Section 3.05 of the 1994 Resolution. Subparagraphs(a)
and (b) of Section 3.05 of the 1994 Resolution are hereby amended to read as follows:
"(a) On or before each March 10 preceding a March 15
Interest Payment Date and each September 10 preceding a
September 15 Interest Payment Date, beginning March 10,
1998, the Fiscal Agent shall debit the Debt Service Fund and
credit the Interest Account with an amount which, when added
to any amount already credited to the Interest Account, will be
equal to the amount of interest coming due and payable on the
Outstanding Bonds on said next succeeding Interest Payment
Date. No credit need be made to the Interest Account if the
amount contained therein is equal to or greater than the
amount of interest coming due on said next succeeding
Interest Payment Date. All monies in the Interest Account
shall be used and withdrawn by the Fiscal Agent solely for the
purpose of paying the interest on the Bonds as it becomes due
and payable (including interest on any Bonds purchased or
redeemed prior to maturity pursuant to this Resolution)."
"(b) On or before each September 10 preceding a
September 10 Principal Payment Date, beginning September
10, 1998, the Fiscal Agent shall debit the Principal Account
with an amount which, when added to any amount already
credited to the Principal Account, will be equal to the principal
coming due and payable on the Outstanding Bonds on said
Principal Payment Date. All moneys in the Principal Account
shall be used and withdrawn by the Fiscal Agent solely for the
purpose of paying the principal on the Bonds as it becomes
due and payable."
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SECTION 12.05.
Addition of Section 3.07 to the 1994 Resolution. Section 3.07 is hereby
added to the 1994 Resolution to read as follows:
"SECTION 3.07 Investment of Funds and Accounts.
Amounts in all of the funds and accounts established pursuant
to the Resolution may be invested by the Fiscal Agent in
securities that are permitted investments for City funds under
California law, as supplemented by the adopted investment
policy of the City, as the same may be amended from time to
time. Investment income is to remain in such funds and
accounts unless otherwise provided herein."
SECTION 12.06.
All references to "Paying Agent" in the 1994 Resolution shall be deemed to
refer to the "Fiscal Agent," the City having appointed a Fiscal Agent to administer the
Bonds and related funds and accounts.
ARTICLE XlII
MISCELLANEOUS
SECTION 13.01.
Terms of Series 1997 Bonds Subject to the 1994 Resolution. Except as
in this Supplemental Resolution expressly provided, every term and condition contained
in the 1994 Resolution shall apply to this Supplemental Resolution and to the Series 1997
Bonds with the same force and effect as if the same were herein set forth at length, with
such omissions, variations and modifications thereof as may be appropriate to make the
same conform to this Supplemental Resolution.
This Supplemental Resolution and all the terms and provisions herein
contained shall form part of the 1994 Resolution as fully and with the same effect as if all
such terms and provisions had been set forth in the 1994 Resolution. The 1994
Resolution is hereby ratified and confirmed and shall continue in full force and effect in
accordance with the terms and provisions thereof, as amended and supplemented hereby.
SECTION 13.02.
Conflict of Terms. If there is any conflict between the terms of this
Supplemental Resolution and the terms of the 1994 Resolution, the terms of this
Supplemental Resolution shall control. Except as expressly modified by this Supplemental
Resolution, however, the terms of the 1994 Resolution shall remain in full force and effect.
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SECTION 13.03.
Effective Date of Supplemental Resolution.
Resolution shall take effect immediately upon its adoption.
This Supplemental
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I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the
Council of the City of Bakersfield at a regular meeting thereof held on NOV ! 9 1997, by the
following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
COUNCILMEMBER CARSON, DEMOND, SMITH, MCDERMOTT, ROWLES, SULLIVAN, SALVAGGIO
COUNCILMEMBER ~, ['7~x.~ ,
COUNCILMEMBER F'~. { ,r~--~,~.
COUNCILMEMBER
CITY CLERK and Ex Officio Clerk of(~he
Council of the City of Bakersfield
APPROVED
NOV 1 9 1997
MAYOR of Bakersfield
APPROVED as to form:
JUDY K, $KOUSEN
City Attorney
/JUDY K:)SKOUSEN
/ CityAtt?'ney
JAN:dlr
$:~;OUNCIL~RE $ ~EWE RBND.AMD
16