HomeMy WebLinkAboutMinutes - City Council - 1959-07-15 3C� �
Board of Equalization
` Adjourned Meeting
' � Council Chambers, City Hall
� ' � Redding, California
July 13, 1959 10:00 A� M.
� •
There being only two members of tfie City Council present, Gouncilman
" Fulkerth and Mayor Fleharty, the meetin� was adjourned un*il Wednesday,
July 15, 1959 at 10:00 A,M,
. APPROV �
_ � ;�� -
\ Mayor
Attest: �
. ��- -� �_ � � `
Ci y Clerk -' ` �
Board of Equalization
Adjourned Meeting
Council Chambers, City Hall
Redding, California
July 15, 1959 10:00 A,M6
'Phe meeting was called to orrier`by Mayor Fleharty with the follo�ving
councilmen present: Fulkerth; Kelly and Flehartye
City Attorney Ness was also presentp together with City Assessor Townsend,
No one appeared in person to protest the assessment roll.
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Recommendations of the City Assessor for chan�es in the 1959-6o Tax ���
Ro11 to correct errors made in posting and apprai.sing of prope-rty values in
order to achieve a more uniform roll, dated July 13,, were submitted to
all councilrrien, ` `
MOTION: Made by Councilman Fulkerth, seconded by Councilman Kelly
that Resolution Noo 260`2 be adopted, a resolution of the City C�uncil of the
City of Redding correcting the 19,�9-60 Tax Roll„ �
Voting was as follows: ' � �
Ayes: Councilmen - Fulkerth, Kelly and Fleharty
Noes: Councilmen - 1Vone `
Absent: Councilmen - Puryear and Simons
,
Resoluiion No. Zb02'on file in the office of the City Clerk.
MOTION:° Made by Councilman Fulkerth, seconded by Councilman Kelly that
the City Council having sat as a B oard of Eaualization on. July 6, 7, 8, 13 .�/,�
and 15 and aI1 protests having been considered and either overruled or acted
upon, the Hearing as a tioard of Equalization is declared closed, Motion
carried,
There being no fu.rther business, ths meeting vvas adjourned, ,
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� APPRO D: �
/I I�
�
Attest: ,--� yor
:�l'T-d �- ��"� �
Cit�y Clerk
,j� Cv
City Council, Regular Meeting
Council Chambers, City Hall
. Redding, California
July Z0, 1959 7:00 P.Mv
Mr, Lynn Olsen, Counselor to the District President, Redding First Branch
Latter Day Saints Church, Redding, gave the invocations
The xrieeting was called to order by Mayor Fleharty with the following
councilmen present: Fulkerth, Kelly, Simons and� Fleharty. Absent:
Councilman Puryear.
Also present were City Manager Cowden, City Attorney Ness, City Engineer
Ward, Assistant to the City Manager .Preaseau, Purchasing Agent Stewart
and Planning Director Evans,
APPROVAL OF MINUTES �
MC7TION: Made by Councilman Simons, seconded by Councilman Kelly that
minutes of the last regular meeting .of July 6, and the a�ijourned meetings of
July 7, 8, 13 and 15 be approved as mailed to each of the councilxnen. The
Vote: Unanim�us Ayes.
COMMUNICATIONS
Clairn - Harriet Ae Maxey
A Claim in the amount of $59;48 plus any other uncompensated expenses
was• fil�ed by� Harriet A, �Vlaxey on July 9, 1959 for injury to left ankle.
/1 Z-
MOTION: Made by Councilman Simons, seconded by Councilman Fulkerth
that claim of Harriet Ae Maxey be denied, "and referred to the legal de- �
partment. The Vote: Unanimous Ayes. `
• Summons #24124 °
Summons #241Z4 filed in the office of the City Clerk: United States of
America; Defendant and Cross-complainant, v. Joseph A. Gist, Jr. ,
Barbara Mills Gist, George H. Augustine and Cecelia Augustine; the
State of California, Acting by and through its Franchise Tax Board; the
/� 2 City of Redding and the County of Shasta of the State of California; the
Equitable Life Assurance Society o`f the United States; Doe 1, Doe 11 and
Doe 111, Cross-defendants, �
City Attorney Ness advised no action was needed, for information only.
Request of Redding Yout� Baseball Ass'n. .
The Redding Youth Baseball Association, Wn. Brickwood, Chairman of
the Board of Governors, asked couricil consicleration for the donation of
2 37 1/2 KVA transformers, the wire and electricians for the job.of wire .
. installation, for the installation of playing lights at the new Pony League
Baseball Park (cost of material estimated at $1, 000. 00). Elimination.
�S � games for the State Tournaxnent woizTd start on July 31, �and the organization
would furnish the lights and poles at a cost of approximately $3,.800; and
� the Pacifi`c Telephone and Te'leg'raph Company would donate all cross arms,
�l � � brace5, and furnish a crew to dig the holes, set the poles and a basket
crane to put electricians up to the lights for wiring,
�
MOTION: Made by Councilman Kelly, seconded by Councilman Sim�ns
that City donate 2 37 1/2 KVA transformers, at an estimated cost of
$1, 000, for �.dditional lights at the Pony <League Baseball Park,
Voting was as follows:
Ayes: Councilmen - Fulkerth, Kelly, Simons and Fleharty
Noes: Councilmen = None
Absent: Councilmen - Puryear
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367
Mayor Fleharty asked that requests of this nature be submitted in
ample time to have report and recommendation of the Parks-Recreation
Commission before submittal to the Council for action.
COMIv1ISSION APPOINTMENTS - Confirmation
MOTION: Made by Councilman Simons, seconded by Gouncilman Kelly that �� •�
appointment of George Moty to the Parking Commission and Joe Patten to the
Airport Commission by Mayor Fleharty on July 7, 1959 be confirmed. The
Vote: Unanimous Ayes.
REQUEST TO 5ELL BEER - Cascade Baseball League
MOTION: Made by Councilman Kelly, seconded by Mayor Fleharty that re-
quest of the Cascade Baseball League to sell beer at Tiger Field at the men's
baseball games be approved.
Voting was as follows: ���
Ayes: Councilmen - Kelly, Simons and Fleharty
Noes: Councilmen - Fulkerth
Absent: Councilmen - Puryear
Gour�cilrrian Simons advised he would not vote against this request as this was
an adult organization ancl council had not taken any action in the past to dis-
approve such requests.
APPROVAL OF CLAIM�S & PAYROLL
MOTION: Made by Councilman Simons, seconded by Councilman Fulkerth
that Warrant Register No. 1, warrant Nos. 6037, 6038, 6042, 6045, 6053,
6061 and 1 to� �45 inclusive, in the amount of $63, 689. 37 be approved and
paid; that Payroll Register No. 1, warrant Nos. 3131 to 3357 inclusive in ��r�
the amount of $40, 612. 90 be approved. Grand Total: $104, 302. Z7
Voting was as follows:
Ayes: Councilmen - Fulkerth, Kelly, Simons and Fleharty
Noes: Councilmen - None
Absent: Councilmen - Puryear
TREASURER'S CASH BALANCE
Councilman Simons, Finance Committee, reported the following City Treasurer's
Cash Balance as of June 30, 1959:
Active Accounts $492. 000. 74
Inactive Accounts 602, 680. 54
�Yj
$1, 094, 681. 28
DELINQUENT TAX REPORT
Delinquent Taxes and Redemptions for the period April 3, 1959 to June 29, 1959
were reported by Genevieve Simonds, Delinquent Tax Collector, showing a total /��
of $l, 033. 66 collected.
RESOLUTIONS - RE ISSUANCE OF WATER REVENUE BONDS
A commuriication dated July 9th to all councilmen from the City Attorney briefed
points of the resolutions authorizing issuance of the water revenue bonds.
MOTION: Made by Councilman Simons, seconded by Councilman Kelly that
Resolution No. 2603 be adopted, a resolution �f the City Council of the City of
Redding providing for the issuance of $1, 260, 000 principal amount of City of ���
Redding 1959 Water Revenue Bonds and $650, 000 of Series A Bonds.
Voting was as follows:
Ayes: Councilmen - Fulkerth, Kelly, Sim�ns and Fleharty
Noes: Councilmen - N�ne
Absent: Councilmen - Puryear
Resolution No. 2603 on file in the office of the City Clerk.
. � ` Y �_ � 368
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.� _ .
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CITY COUNCIL
of the
CITY OF REDDING
RESOLUTION No. ___260�_____
Providing for the Issuance of
�1,260,000 Principal Amount of
City of Redding 1959 Water Revenue Bonds
I/� and�650,000 of Series A Bonds
�
Adopted july 20, 1959
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RESOLU'I'ION No. _260�______
Providing f or the Issuance o f �'1,260,000 Princi pal 14rnount o f �'City o f
Reclding 1959 T�ater IZea�enue �onds" and c�f ��50,0�0 Pra�acc pal
Amount o f Series A Bonds; Prescribing the Terms, Conditions, Date
and Form o f Said Series A �oncls and o f the Coupo�as to Be Attached
Thereto ancl Prescribing the Maturities �'hereo f; Fi:cing the Maxirrtunt
Rate o f Interest on the Bonds o f Saicl Issue;Authorizing the Execution
o f Said Series A Bonds and Coupons;Providing�or the Security o f the
Bonds o f Said Issue and Ap pointing a Fiscal Agent There f or; and .
Providing f or the Issuance o f Additional Bbnds.
Wx��,rns, the City Counci.l of the Ci_ty of I�edding on tlie 27th day
of March, 1959, du13= passed and adopted a resolution calling a special
revenue bond election to be held in t.he City on l2ay 5, 1959, for the
purpose of submitting to the qualified electors of the City the measure
(hereinafter set forth) to issue $1,260,000 principal amount of water
revenue bonds under the Revenue Bond Law of 1941; and
WxEREAs, a11 requirements of law have been complied wi.th in call-
ing and holding said special revenue bond election and the City Council
did duly and regularly canvass the returns of said election and did by
said canvass determine and declare, and do hereby certif,y, that said
measure received at said special revenue bond election the affirmative
votes of a majority of a11 the voters voting on said measure at said
election and said measure was thereby. carr�ied and adopted b�T said
election and the issuance of sa.id �va.ter revenue bonds by the Cit3= for
the purpose described in said rrieasux•e wa.s dulS� authorized; and
WxFxEAs, the City now owns and operates a municipal water
` systern and the City Coimcil deems it advisable to acquire, construct,
improve and finance the improvement of said water system of the City
as described in said measure;
Now, Tg�R�FORE, BE Iz RFsoUVEn by the CitS� Counci.l of the City
of Redding as follows:
SLCTroN 1. Definitiom�s. �l�he terrns hereinafter .i.n this Section 1
defined shall, for all purl�oses of this Resollition, of any i�esolution pro-
viding for the issuance of. ]3onds of any subseqi�ent series or of Addi-
tional Bonds hereunder, of all sitch T3onds, and of anvi certifica.te, opinion
or other document herein menti.on.ed,have the meanings herei.n specified:
(a) "City" means the munici��al corporation known as the "City
of Redding", in the County of �hasta., State of Calif.ornia.
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370
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(b) "Council" means the Cit,y Council of the City or any other
governing boarcl of the City hereafter provided for pursuant to law.
(c) "Resoluti.on" means this Resolution.
(d) "Bonds" rneans the $1,260,000 principal amount of City of
Redding 1.�59 �;hTater• I�,evenue Bonds authorized by and at any time
outsta.ndin� ��urstiwnt to this I�esolution (including the Series A I3onds
hereinafter provided for and all subsequent sei•ies of Bonds of said
issue). "Additional Bonds" irieans Additional Bonds (in addition to
said $1,260,000 principal �mount of the Bonds) herea:fter authox•ized
pux•su�nt to the La�v and at any time outstanding pursuant to the pro-
visions and subject to the limita-tions of Section 11 hereof. "Serial
�onds" rneans Bonds, falling due by their terms in specified years, for
�vhich no nlinimunz sinking fund is provided. "Term Bonds" means
Bonds payable at or before their specified inaturity dates frorn mini-
mutn sinking fund payments established for that purpose and calcu-
lated to retire such Sonds on or before their specified maturity dates.
(e) "Lativ" means the Revenue Bond La�v of 1941, being Title 5,
Division 2, Part l, Chapter �, of the C�li.f.ornia Government Code.
(f) "Enterprise" means the w�iole and each and every part of the
municipal `vater systezrl of the Cit�T described in the ineasure set forth
in �ection 2 liei•eof, inc.lu:�ing all of the ��resentl3T e:zisting municipal
water systern of the City, together• `vith all additions, betterments,
extensions and irnprover�ients thereto to be made or acquired from
funds provided b,y t�ie Boncis, and all other adclitions, betterments, ex-
tensioiis and improvements to said municipal �vater s3rstem or any part �
thereof now or hereafter made.
(g) "Gross Pevenues of the Enterprise", "R�evenues of the Enter-
prise" and "Revenl�es" mean all gross revenues of the Enterpri.se, in-
, cluding a_ll fees, tolls, rates and other charges received from, and all
other income, receipts a_nd profits derived b�� the �ity from, the opera-
tion of the Enter��rise, or arising out of the Enterprise, or in any way
inci.c�ental to the ownershi.� of t�.e Enterprise by the �it�y�, including
interest and incoine from an3� investment of. an3= of the Funds provicled
for in Section 9 hereof, tonether��=it.h a.11 bross revenues of all additions,
betterments, amprovements and extensions to tlie Fnterprise hereafter
constx•ucted or acqiured, excepting all connection charges and refund-
a.ble deposits rnade to establish credit.
(h) "1VIaintena.nce and Qperation Costs" of the Enterprise means
the reasona.ble and necessax•ST costs o.f. inain.ta.ii7ing and operating the
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Enterprise, calculated on sound acc.ounting principles, excluding in a11
cases depreciation and obsolescence char;es or reserves tlierefor and
amortization of intangibles or other bool�keeping entries of a similar
nature, but including (among other thinbs) the reasonable eYpenses of
management, repair, and othei• e�penses necessary to rriaintain and
preserve the Enterprise in good repair and �vorking order, adminis-
tration, overhead; i.nsurance, taxes (if any) and other similar costs.
(i) "Fzscal Year" rneans the period beginning on July 1 of each
year and ending on the next succeeding June 30.
(j) "Annual Net Revenues" ineans all Gross R,evenues of the
Enterprise during any period of twelve months (elcluding from Gross
Revenues of the Enterprise (i) all moneys transferred from the 1959
Water System Construction Fund to the 1959 Water Revenue Fund
pursua.nt to the provisions of Section 7 hereof, (ii) all proceeds of
insurance deposited i.n the Revenue Fund pursuant to Section 10(k)
hereof and (iii) all net proceeds realized by the City from eminent
domain proceedings and determined to be Revenues of the Enterprise
pursuant to Section 13 hereof) after deducting therefrom all Mainte-
nance and Operation Costs of the Enterprise during such period.
(k) "Mayor" means the Mayor of the City; "Clerk"means the Ci.ty
Clerk; and "Treasurer" means the City Treasurer.
(1) "Fiscal Agent" means Crocker-Anglo National Bank, being
the 1959 Water Revenue Bond Fiscal Agent provided for in Section 16
hereof.
(xn) "Water" means wate.r furnished by the City through the �
Enter�rise.
(n) "Maximum Annnal Debt Service" means the rnaximum arnount
payable on all outstanding Bonds and �dditional Bonds in an3� fiscal
year (beginning with the fiscal year in which such calculation is r�iade
and ending with the fiscal year i.n `��hich the last of such Bonds by thei.r
terms mature) on account of interest, plus serial maturities of princi-
pal of Serial Bonds or inandatory minimum annual sinking fund pay-
ments of Term Bonds.
SECTrov 2. Due Aacthori.zc�tion ar�d Pur�ose o f Iss2ce.
(a) �lie Council has revie�zTed a11 pi•o�eedings heretofore taken
relative to the a.uthorization of t11e Bonds and ��a5 founc�, as a result
of suclz review, and does herebv fizzd and aeterznine, th�t all a�cts, con-
di.ti_ons and things reqt�ired b�r law to exist, ha����en a11d be �erformec� �
precedent to and in the issuance of th.e Bonds l��ve e�:isted, ha.ppened
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and been pei�foi•med in due tiiiie, forrn and manner as required by law,
�n�,� tlae City is no`� authoi•ired, �ursuant to eacYi and everv r�c�uirement
of law, to i.ssae t}ie �onds in the ina.nner and form as in tliis Resolution
provic�ed.
(T�) T_l�e Bonds shall issue for the purpose set fort.h in tlie follo�Ting
rneasure: �
M�asu��L Shall the City of I�,edding issue yevenue bonds in
(Water the px•incipal amonnt of $1,2G0,000 pursuant to the
Systern) �Zevenue Bond Law of 1941 to provide funds for
the acquisition, construction, iinprovement and .
financing of the following Enterprise, to wit: The iinproveinent of
the water system of the City of Redding, cornprising worizs and
facilities for the treatment, storage, transmission and dista�ibution �
- of water, including �umpirig plants, water treatment facilities,
reservoirs and water storage facil.ities, water mains, pipelines,
pipes, �lietei�s, hydrants, pumps, equi.�r�ient, and other u�orks, prop-
erty or structures necessary or convenient for the improvemezlt of
the water system of tl�e City of Re�ding�
(c) It is hereby found and determined that the City now owns and
o�erates a iilunicipal wa.ter system; tha.t said water system is in need
of the improvements set forth in said measure; that said iinproveiTients
wil.l constitute additions, betterments, improveinents a.nd extensions of
said �vater system and integral parts thereof; that no revenues from
said water system are now specifically pled�,ed to the pa.yment of any
outstanding obligations of the Ci.ty and all revenues now or hereafter
derived from said water sj�stem az•e Iegallg= a�ailable for tl�e payment
of the Bonds; that the Enterprise, when imp�roved as described in said �
measure, �aill constitute a coinplete rnunicipal inlprovement a.nd a com-
plete munici.pal water system for tlie Cit,y; that the acquisition, con-
strue-tion, .iznprovement and financin� of saic� ir�i�r•ovements of said
water s��stem ca.n be financed from t�he proceeds of sale of t�he Bonds;
ancl that the procee�s of. sale of the Bonds shall therefore be applied to
the payrnent of t.he costs of tlie a.cc{uisition, construct�on, im7�rove-
ment and financing af sai.d im�rovements of said water a�ste�i. Acc�orc-
i.ngly, it is :Found and cleterrriined as follo�vs: (i) �aid im��x•overne�it of
said �zTater system ca.n be completed from the funds available and to be
available to the Cit�� frorn the proceeds of sale of the Sonds; (ii.) ��ater
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rates and charges can be fiYed, levied and collected upon tile Entex•prise
for the services, facilities and tivater furnished �y the Enterpx•ise; (iii)
said watex• rates and charges, togetilier wit.h all other G�•oss Revenues
of the Lnterprise (as said terrn is defined in �ection 1(g) hex•eof), shall
constitute the Revenues of t.he Enterprise pledged to tlie ��a,yment of
the principal of and int.erest on the Bonds and to the security of the
Bonds and Additional Bonds as herein provided; and (iv) the Gross
Revenues of the Enterprise are hereby pledged to the servi.ce of the
Sonds and Additional Bonds hereinafter authoi•ized and all Gi•oss
Revenues accruing to the Enterprise on or after the date of the �eries
A Bonds shall be deposited in and accozmted for through the Revenue
Fund provided for in Section 9(b) hereof. IVo suins collected by the City
during any Fiscal Year as fees for connections to the Enterprise
shall constitute Gross Revenues of the Enterprise.
S�cTroN 3. Auth,orizc�tion of Bonds. The Bonds shall be issued
and sold as hereina;Fter set forth and pursuant to the Lativ and shall be
known as "Cit3� of Redding 1959 ��Vater Revenue ]3onds". The ag�re-
gate principal amount of bonds which may be issLied by the Citj= and
secured by thi.s Resolution and outstanding at any one time is limite�
to $1,260,000, except as hereina.fter provided with respect to tlie issu-
ance of Additional Bonds l�.ereunder. T_he Bonds shall be negotiable in
form and shall contain a recital tllat they are issued ptu•suant to ti�e
Law.
The Bonds s�iall be clivided into sex•ies. �1n :initial series of Bonds,
limited in aggregate principal amount to not. exceeding $650,040 a.t. an�-
one time outstanding, is hereby created and sliall constitute "Series
A"; and the remaining $610,000 l�rincipal ainount of the Ponds may be .
divided into one or more series as the Council shall determine b�- reso-
lution at the time of the issuance of all or an,y part of sa.id remaining
$610,000 principal amount of Bonds, subject, ho�vever, to the �rovisions
and limitations of Section 11 hereof. The Series A Boi7c�s sllall be 650
in number, numbered consecutively from A1 to A650, both inclusive, of.
the denomination of$1000 each. The Series A Bonds sl�a.11 be cl�ted SeI�-
tember 1, 1959 (which is hereby deterrriined to be the date of the issue
of the Series A Bonds).
The Bonds shall bear interest fronl their date unti.l paid a.t the
rate or rates designated by the Council at the time of the sale thei�eof
but not to exceed six per cent (G%) per annunl. Said interest on each
series of Bonds sha]l be payable semi-annuall,y o�• annually the first
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year and thereafter semi-annually as determined by the Council at the
time of the issuance and sa.le of each series of the Bonds. Such interest
shall be evidenced by coupons attacl7ed to each Bond and each of said
coupons shal3 re�i•esent six (6) months'interest (except the first coupon
on Bonds as to which int.erest is payable annually the first year, which
shall represent t�velve (12) inonths' interest) on the Bond to which it
is attached.
Interest on the Series � Bonds shall be �ayable annually the first
3Tear a.nd thereafter serrii-annually. The interest coupons on the Series
A Boncls shall be payal�le annuall,y the first ��ear on September 1, ]_960,
and thereafter semi-annually on the first day of March and the first day
of September in each ��ear until the �eries A Bonds are paid.
Both the principal of and interest on the Bonds shall be payable '
in lawful money of the United States of America at the San Franczsco
Principal Office of Crocker-Anglo National Bank in the City and Count,y
of San Francisco, State of California, the Fiscal Agent, but only out
of the special funds hereina.fter provided for that purpose.
The Series A Bonds shall mature and become pa�=able as set fox•th
in the following schedule:
Bond Numbers Bond Numbers
(All numbers (All numbers
inclusive and Principai Maturity Date inclusive and Principal Maturity Dafe
bearing Prefix"A") Amount September 1 bearing Prefix"A") Amaunt September 1
1- 10 $ 10,000 1962 151-170 $ 20,000 1972
11= 25 15,000 1963 171-190 20,000 1973
26- 40 15,000 1964 191-210 20,000 1974
41- 55 15,000 1965 211-230 20,000 1975
56- 70 15,000 1966 231-250 20,000 1976
71- 85 15,000 1967 251-275 25,400 1977
86-100 15,000 1968 276-300 25,000 1978
101-115 15,000 1969 301-325 25,000 1979
116-130 15,000 1970 326-650 325,000 1989
131-150 20,000 1971
Seri_es A Bonds maturing in the ,years 1962-1979, both znclusive,
are hereby designated "Serial Bonds" and Series A Bonds rnaturing
in the yea.r 1989 are hereby designated "Term Bonds".
Serial Bonds nuinbered Al to A325, both inclusive, rnaturing by
their terins on or pi•i.or to Se��ternber l, 1979, are not subject to call and
redel�i�rption �rioi• to their fixed rnat�urity dates. Tern� t3onds nnmbered
A326 to A650, both inclusive, ma.turing on September ]., l_989, a_re sub-
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ject to call and redemption, at the o�tion of the City, on Sep.tember 1,
1970, but not prior thereto, and on any interest pa��ment d�,te therea.f.ter
prior to maturity as a whole, or in part btiT lot, from funds derived by
the City from any source, including the Series A Sinking Fund �lccount
provided for in Section 9(e) hereof, at the prineapal amount thereof
and accrued interest to date of redemZ�tion plus a premium as set forth
in Column 3 below, as follows: �
Column t Column 2 Column 3 Lofumn 1 Column 2 Column 3
Bonds Redeemed And Prior to Premium Bonds Redeemed And Prior to Premium
On or After Sepfember 1 On or After September 1
September 1 September 1
1970 1971 4 % 1978 1979 2 %
1971 1972 33/4°Jo 1979 1980 13�4 Jo
1972 1973 31/2°fo 1980 1981 11/2%
1973 1974 31/�% 1981 1982 11/4%
1974 1975 3 % 1982 1983 1 °fo
1975 1976 23�4°Jo 1983 1984 J�4 of 1�/0
1976 1977 21/2% 1984 1985 1/2 of 1%
1977 1978 2�/4% 1985 1986 1/4 of 1%
1986 Maturity none
Whenever funds are available for the call and redemption of any
of the Bonds then subject to call and redemption, the Fiscal Agent shall
determine the serial numbers of the Bonds to be redeemed (including
the serial numbers of the Bonds to be redeemed by lot), and the Fiscal
Agent shall also determine the date of redemptzon of such Bonds.
Not.ice of an�T such redemption shall be pLlblished by tlie Fiscal
Agent, as agent of the City, once a week for two successive.weeks in
a newspaper of genez•al circulation printed and published in the City
and County of San Fx•ancisco, State of California. The notice of redemp-
tion shall set forth the Bond nurnbers and principal amount of the
Bonds so to be called and redeemed, the arnount of the premium payable
thereon at tYie date o� redernpt�ion and the :fund or funds from which
said principal a.nd preinium are to be paid by the Fiscal Agent. A copy
of such notice shall be forwarded to,the Cleriz by the Fiscal Agent not
later than ten days after the date of first publication of said notice.
Similar notices shall be mailed at the sasne tiine by the Fiscal Agent to
the original purchaser of each series of Bonds or Additional Bonds
issued liereunder and a.lso to the �•esl�ective registez•ed owners of any
Bonds called for redemption at. tlieir addresses appearing on the regis-
tration book in the office of the Fzscal Agent; provided that such
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mailing shall not be a condition precedent to such redemption and
failure to mail ox• receive any such notice shall not affect the validity
of the proceedings for the redemption of such Bonds. The first publica-
tion of such notice of Y•edemption shall be not less than 30 days nor more
than 60 da,y-s prior to the date fixed for such redemption. After the
date fixed for such redemption, if the Fiscal Agent, as agent for the
City, shall have duly published notice of such redemption and the City
shall have provided funds available for payment of the principal,
prenlium, if. any, and accrued interest on the Bonds so called, interest
on such Bonds shall cea.se. All Bonds and coupons surrendered to the
Fiscal Aaent upon call for redem��tion and all Bonds and coupons pur-
chased by the Fzsca.l Agent pursuant to Sections 9(e) and (h) (3) hereof
shall be cancelled by the Fiscal Agent and shall not be reissued.
SrcTioN 4. Forms v f Series A Bonds, Co2cpo��s and Registration
F�adorsement. The Series A Bonds and coupons and forms of regis-
tration endorsement shall each be in substantiallS� the followin; respec-
tive forms, the bla,nks in said forms to be filled with a7�propriate words
or figures, namely:
� UNITED STATES OF AMERICA
STATF. OF CALIFOR.NIA
COUNTY OF SHASTA
CITY OI' REDDING 1959 WA�ER RFVENUE BON.D
SERILS A
No, A---------------- $1,000
The CIZY oF R�Ennr�,�G, a municipal corporation orga��ized
and e�isting under the Constitution and la«�s of. the State of Cali-
eor•nia (hereinafter called "th.e Citv"), for value received, hereb�=
I�romises to ��ay, exclusively oL1t of the special fund �iereina.fter �
rnentioned, to t11e bearer (or if this Bond be registered, to the
registered owner hereof) on tlie first day of September, 19___., sub-
jeet to.any ri;ht of prior redemption hei•einaf.ter in this Bond e�-
pressly provided for, the �:�x•incipa-1 suin of. ONL Txou�n,�Tv DoLLARs
($l,OQO) toget�her v��ith interest thereon .f.rom tl�e da.te �i�reo.f. a.t t'�ie
rateof --------------------------------------------------------------- �---------------------) l�er cent. �
per annum until �a,ylnent o.f sa.id principal suln in full, annli�ll,y
t}ie first �-ear on Septeinber 1, 1960, and tliereaftet• �errii-a.nnuall�T
� on March ]. and Septernl�er 1_ in e�ch ��ear•. TJnless this Bond l;e
377
. .
9
registered, suc11 interest, prior to maturit3-, shall be �,a}-able onl�-
on presentation and surrender of the proper interest. coupons
hereto att�ached as they respectively become due. Both tlte pr•inc:ipa�l
of and interest on this Bond are ��aya�le, exclus.ively out o� saic�
special fund, in lawful mone5- of tlie United States of America at
the San Francisco Principal0ffice of Crocker-Anglo National Banl�
in the City and County of San Francisco, State of California (here-
inafter called the"Fiscal Agent").
This Bond is� one of a duly authorized issue of Bonds of the
City aggregating One l�Iillion Two Htuidred Si�ty T�ionsand Dol.-
lars ($1,260,000) principal amount, all of like tenor and date (ex-
cept for such variations, if any, as i�1ay be required to designate
varying series, dates, numbers, maturities, interest rates or re-
demption provisions) and is issued nnder a_nd pursuant to the
Constitution and statutes of the State of California., including tl�e
Revenue Bond La�� of 1941 (liereinafter referred to as "the Law"),
and under and pursuant to the proceedings of the Cit�- dulj�
adopted and taken, including Resolution No. _.________ (hereinafter
called "the Resolution"), adopted by the City Council of the Cit��
on July 20, 1959, and a vote and assent of a �najority of the quali-
fied voters of the City voting a.t a specia.l election duly ca11e�3 �nd
held for that purpose. Reference is hereby made to the Resolu-
tion, all of the provisions of which are hereby incorporated herein
and in the coupons appurtenant hereto, for a specific descri.��ti.on oi'
the securitp therein provided, the nature, extent a.nd manner of
enforcement of stich security, aild a statement of the rights of
bearers or registered owners of the Sonds, to all of the provisions
of which the bearer or re;istereci owner hereof c.onsents and agrees.
Each taker and subsequent holder hereof and oF sai.d coupons,
whethex• said coupons are attached hereto or detached herefrorn,
shall have recourse to all of the pro��isions of the La«� and the
Resolution and shall be bound by all of the terms an� conditions
thereof.
This Bond is issued for the purpose of raising rrione�� for the
acquisiti.on, construction, improvement a.nd financing of improve-
ments to a.n Enterprise comprising the municipal water systern of
the City, and both the pi•incipal liereof and interest hereon, and
of all Bonds of said authorized issue, and of. all Additional Bonds
that niay be issued pilrsuant to the provisions of the R;esoluti.on,
� - 378
10
iiz accordance with the terms and conditions thereof, are equa.11y
secured (except as to inaturity, redernption provisions and vary-
ing interest rates and except insofar as any sinking fund account
or accounts estaUlished in accordance with the provisions of the
Resolut.i.on. inay affor•d additional security for any series of Bonds
or for any Additional Bonds) without priority for nwliber, date _
of boncls, of sale, of execution, or of deli.very, b3T a pledge, charge
and lien upon the Revenues of the Enterprise pledged to the pay-
ment of the principal of and intez•est on the Bonds in accordance
with the provisions hereof and of the Law and the Resolution.
Both the principal hereof and interest hereon, and of all Bonds
of sa.id aut,horized issue, are payable exclusively fro�n the special
fund liereinaft.er a.nd in the Resolution referred to, which said fund
is hereby pledged for the security of the Bonds of said authorize�
issue and all Aclditional Bonds issued pursuant to the Resolution.
The Ci.ty hereby covenant.s and warrants that for the payment of
this Bond a_nd �,11 other Bonds of said authorized issue and all
Additional Bonds issLied pursuant to the Resolution and interest
hereon and thereon when due and for the protection or better
securing of all such 13onds, there has been created and will be main-
tained a special fund (designated the"1959 Water Revenue Fund")
into which all of the Gross Revenues of the Enterprise shall be
deposited, and the City will promptly pay this Bond and all Bonds
of said authorized issne a_na all Additional Bonds issued pursuant
to tlie Resolution and all interest accruing hereon and thereon and
all premiuzns (if any), when due or redeemed, out of said special
f.und, all in accorc�ance with the terms hereof�,nc�the ter�ns and pro-
visions of the Resolution. This Bond, including interest hereon, is
a speci.al obligation of the City and is payable solely from the Reve-
nues pledge� to the paynient hereof and the City is not obligated to
pay the same eacept frorn said Revenr.es. This Ponci is not secured
b�� the taxing po�ver o.f. the City.
T_he City hereby covena.nts and wax•rants that it will operate
the Ente�•�prise in a�n efficient and ecano��iical manner and will. oper-
ate, zna.intain and�resez•ve the Entez•prise in good repair• �,nd��ork-
ing orc�er from the Revenues available fot� sucli purposes a.s pro-
vi�ed in the R.e�ollltion ancl tha-t. it will prescribe, revise a�nd collect
such Eees, tolls, rates and other charges in connection there�vith as
will }���rod�ce Revennes at least eqlza] to ti�he a-mounts t�hereof pre-
379
11
scribed by the Resolution and sufficient to pay the interest on and �
principal of the Bonds in accordance with the prov:isions of the
Resolution.
Bonds numbered A1 to A325, both inclusive, rriaturing by their
terins on or prior to September l, 1979, are not subjec.t to call.
and redemption prior to their fixe�l rii�.turitST dates. Bonds nuin-
bered A326 to A650, both inclusive, maturing on September 1,
1989, a.re subject to call a.nd redemption, at the optioiz of the CitS�,
on September 1, 1970, but not prior thereto, and on any interest
pa.yment date thereafter prior to mattlritS� a.s a«-liole, or in part b�r
lot, from funds derived hy the City from any source, including the
Series A Sinking Fund Account provided for in the Resolution, at
the principal aznount thereof and accrued interest to date of re-
demption plus a premium as set forth in Column 3 below, as
follows:
Column 1 Column 2 Column 3 Coiumn 1 Column 2 Column 3
Bonds Redeemed And Prior to Premium Bonds Redeemetl And Prior to Premium
On or Affer September 1 On or After September 1
September 1 September 1
1970 1971 4 % 1978 1979 2 %
1971 1972 H3�4% 1979 1980 13�4%
1s72 1973 31/2% 1980 1981 1�/2qo
1973 1974 31/4%0 1981 1982 11/4�/0
1974 1975 3 %0 1982 1983 1 %
1975 1976 2�/4%0 1983 1984 �/4 of 1%0
^ 1976 1977 21/2% 1984 1985 1/2 of 1%
1977 1978 21/4% 1985 1986 1/4 of 1%
1986 Maturity none
Notice of any such redemption shall be ��iiblished by the Fiscal
Agent, as agent of the City, once a i�eek for• two successive weeks,
� in a news�aper of general eirct�lation, ��rinted a�nd p�ublished in the �
City and County of San Francisco, State of Ca.lifornia. �I'he first
publication of such notice shall be not. less tlian 30 i�or inore than
60 days prior to the date fixed for snch redernption. Af.ter the date
fixed f.or sL1ch redempt.ion, if the Fiscal Agent, as agei�t of the City,
s1ia11 have dul,y published notice of such i•edeinption and the Cit��
shall liave provided funds availa.ble for payment of the principal,
premiuin, i.f any, and accrued interest on the P�onds so call.ed, in-
terest on such Sonds shall cease.
{
�
380
12
T}ie Bonds of sa.id authorized issue and the coupons apper-
taining thereto, and the Resolution, may be amended, altered or
modified at any time, in the manner, to the extent and upon the
tertris provided in the Resolution.
It is hereby certified, recited and declared that all acts, condi-
tions and things required by law ta e�ist,happen aald be performed
precedent to and in the issuance of this Bond have existed, hap-
pened and been performed in due time, form and manner a-s, re-
quired by la�v and that the amount of this Bond, together zvith all
oth.er indebtedness of the City, does not e�ceed any limit prescribed
by the Constitution or statutes of said State.
This Bond ma.�- be registered in the manner px•ovi.ded i11 the
Resolution and thereafter t}ie princi�al hereof and interest hereon
shall be pa3�able only to such registered owner.
Irr ��VrTrr�:ss WxEREOF, the CitS- of Redding has caused this
Bond to be executed under its official seal, signed by its l�Zayor and .
its Treasurer and countersigned b}T its Clerk, and has caused the
interest coupons attached hereto to be signed b,y its Trea.surer and
this Bond to be datec� the lst da,y of September, 1959.
------------------------------------------------------------
Mayor o f th.e Cit,y o f Reddi�g
------------------------------------------------------------
Trec�surer o f t,lae Cit,9� of Re�ldin,c�
Countersigned:
Cit�' Cl,erlc o f the Cit,� of Reddi�a,q �
,,
- 381
13
�FOR.M OF COUPON�
Coupon No. ._______
------------------------ 19----
On the 1st day of ------------------------------------� ly------�
subject to any right of prior redemption reserved
� in the Bond hereinafter men.tioned to �vhich tlus
� coupon appertains, the City of Redding will (unless
the within mentioned Bond be registered) pay to
the bearer exclusively frorri the special fund re-
Eerred to in tlie hereina-fter mentioned Bond at the
San Francisco Principal Office of Crocker-Anglo Na-
tional Bank in the Cit,y and County of San Francisco,
State of California (the Fiscal Agent of said City) $______________________
the smn set forth hereon in la�vful money of the
United States of America,being interest then due on
its 1959 Water ftevenue Bond, Series A_______________________ No.A-.__________.,
dated September l, 1959.
------------------------------------------------------------
Trectsurer o f tlze City o f �eddir�g
�FORM OF REGISTRATIO\T I;NDOI?SEM�NT�
, This Bond is registex•ed in tl�.e naine of tlie regi�tered owner
whose nar�ie and address a�p�ea�r last in the sp�ace below and both
the principal of and interest on this Bond a.re pa3�able to such
�
registered owner.
� Note: There must be n� writi.n� in the space belo�v except b�T t,he
Fiscal Agent.
Date of Name of Address of Signature of
Registry Registered Owner Registered Owner fiscal Agent
--•----------•-- ---•--------------•--------- ----•---------•-----•------- -------•------•----•----------------
-------------•-- -----------•-------•-------- --------------------------- ---•---•----------------------------
•--------•------ -•--•------••--•------------ ---------------------------- ------------------------------------
-----------•-•-- -----------------------•---- ---------------------------- ------------------------------------
-------------•-- ---------------------------- --------------------------- --------•-------------••-----------
-----•---------- --------•------------------ --------------------------- ------------------------------------
---•-------•--- ---------•-•---------------- ------•------------------- -------------------•---•----•---..._
----•----------- --------------------------- --------------------------- ------------------�--•------------
�
�,
. - 382
14
SECTior 5. Execution o f Bon,ds an�d Coupons; Re�istrationi; S2cb-
stitution of Bonds; Temporary Bonds.
(a) Exec2��tion of Bonds and Coupons. The Mayor and the Treas-
urer are hereby authorized and directed, respectively, as such officers,
to execnte each of the Sonds on behalf of the City, and the Clerk, or one
or more of his deputies, is hereby authorized and directed to counter-
sign each of the Bonds and to affix the official seal of the City thereto.
The Treasurer is hereby authorized and directed to sign each of the
interest coupons by printed, lithographed or engraved fa.csimile signa-
, ture. Such signing, countersigning and sealing as herein provided sha11
be a sufficient and binding execution of the Bonds and coupons by the
Cit�7, a.nd all silch signatures anc'� countersibnatnres, e�:cepting th�t of
the Clerk or his deputies, may be printed, lithographed or engraved.
In case any of such officers whose signatures or countersignatures ap-
pear on the Bonds or coupons sha11 cease to be such. of'ficer before the
delivery of such Bonds to t.he purchaser, such signature or counter-
signature shall nevertheless be valid and sufficient for all purposes the
same as though he had remained in office until the delivery of the Bonds.
(b) Registration. The City will keep at the San Francisco Main
Office of the Fiscal Agent at all times when any of the Bonds shall be
outstanding and unpaid, books for the i•e�istration and transfer of the
Bonds. The owner of any coupon Bond may present the Bond at such
office to the Fiscal Agent and request,the conversion of the Bond into
a registered Bond. The T� ``"`�"`1�r s1�a11�cut off and cancel the coupons ���'�•'
of any coupon Bond so presented and shall cause to be endorsed upon
the back of such coupon Bond so presented a statement to the effect that
the Bond is registered in the name of the owner and that thereafter the
interest and principal of the Bond are pa3Table to the registered owner.
Such statement shall be substantially iu the form hereinabove set forth.
After such registration and notation no transfer of any such coupon
Bond shall be valid unless evidenced by a���ritten instrument of transfer
in form satisfactory to the Fiscal Agent, dnly executed by the registered
owner in person or by his duly authorized agent. The Fisca.l Agent shall
keep in its o�ce a registra.tion book �vhich shall at all times show what
Bonds are registered and the names and addresses of the rebistered
owners, respectively. The addresses appearing in the registration book
shall be deemed to be for all purposes the addresses of the registered
owners. The Fiscal Agent sha.11 pati� interest to the owner of a.ny regis-
tered Bond bv checl: ma.iled to such owner at his address appearing on
383
15
the registration book and shall pay to the o��ner or �iis legal assignee
the principa.l of any registered Bond upon presentation and surr�nder
of such registered Bond. The registered o�vner of an�� registered Bond
may at an,y time (provided such Bond sha.11 not ha_ve been called for
redemption) present snch Bond to the Fisca,l Agent and request con-
version of such Bond into a coupon Bond, in which event the Fiscal
Agent shall cancel the registra_tion of. such Bond and shall attach there-
to coupons for all unrnatured interest thereon and as a condition of an57
such conversion may require such charge therefor as it ma�7 deem
proper, not eYceeding $3.00.
(c) Bonds M2ctidated, Lost or Destroyed. In case any Bond shall
become mutilated in respect of the bod�� of such Bond or the coupons,
if any, appertaining thereto, or shall be believed by the City a.nd the
Fiscal Agent to have been destroyed, stolen or lost, upon proof of own-
ership satisfactory to the Cit,y and the Fiscal Agent and npon the
surrender of such mutilated Bond wi.th its �oupons, if any, at the office
of the Fiscal Agent, or upon the receipt of evidence satisfactory to the
City and the Fiscal Agent of snch destruction, theft or loss, and upon
receipt also of indemnity satisfactor�� to the Cit,y and the Fiscal Agent,
and upon payment of all expenses incurred by the City and the Fiscal
Agent for any investigation relating thereto, and for each new Bond
issued under this paragraph (c), the City sha�ll execute and the Fiscal
Agent in its discretion may deliver at its San Francisco Main Of�'lce
in San Francisco, California, a new Bond or Bonds of the same maturity
and for the same aggregate principal amount, with the coupons, if any,
appertaining thereto, of like tenor and date, bearing the same issue
number or mm�bers, tivith such notations as the City, with the approval
of the Fiscal Agent, sha.11 determine, in exchange and substi.tution for
and upon cancella.tion of the inutilated Bond and its coupons, if any, or
in lieu of and in substitution for the Bond a.nd its coupons, if any, so
destroyed, stolen or lost.
If an3T such destroyed, stolen or lost Bond sha.11 have matured,
payment of the a.mount. due thereon ma,y be made b,y the Cit,y upon
receipt of like proof,indeinnit,y and pay-ment of eYpenses.
Any such duplica,te Bonds or coupons issued hereunder slia.11 be
entitled to equal and pi�oport-ioilate benefits with all other Uonds issued
hereunder. Neithei• the City nor the Fiscal Agent sha.11 be required to
- treat both the original B�nd and any duplicate Sond as being outsta_nd-
ing for the �urpose of determining the l�rincip�l amount of Boncls whicl�
- - 384
16
may be issued hereunder or for the purpose of deterniining any per-
centage of Bonds outstanding hereunder, but both the original and
duplicate Bond shall be treated as one and the same.
(d) Temporury I3onds. Until definitive Bonds shall be prepared,
the Cit37 may ca.use to be executed and delivered in lieu of such definitive
Bonds and subject to the same provisions, limitations and conditions
as are �ppli.cable in the case of definiti�e I3onds, except that they may
b� in any denorninations authorized by the Council and shall be regis-
t.rable as to both principal and interest and ma,y be discharged from
regi.stration in the same manner and subject to the saine provisions
herein contained applicable to definitive Bonds, one or more temporar,y
pi�inted, litho�,raphed or engraved Bonds in bearer form without cou-
�ons, o�•with one or more coupons, as xnay be authorized by the Council,
substantia11�7 of the same tenor and, until eYchanged for definitive
Bonds, entitled and subject to the same benefi�ts and provisions of this
Resolution a.s definitive Bonds of the same character and maturit,y and
exectited and issued hereunder. Temporary Bonds shall be exchan;able
only for definitive Bonds of the sa,me aggregate principal amount with
the same maturit,y.or maturities, and bearing interest at the same rate
or rates, as are provided for in said temporary Bonds. Teinporar,y
Bonds shall be exchangeable froin time to time at the office of the Fiscal
Agent without expense to the holder, for temporar�� Sonds oi• f.or defin-
itive Bonds of like aggregate principa.l a.inot�nt, ��Then prepar•ed, of the
same series, character and serial maturit37 as the case may be and of
the denominations authorized. All temporary Bonds so surrendered
shall be cancelled by the Fiscal Agent a.nd surrendered to the Cit,y.
Without unnecessary dela3T the City will execute and will furnish such
definit.ive I3onds, to be exchanbed a.t the San Francisco Main Office
of the Fiscal Agent in San Francisco, California, fox• sai.d temporary
Bonds upon surrender thereof to the Fiscal Agent. _T_he definitive Bonds
shall be lithog•raphed or engrayed, in wl�iole or iii part, except tha�t the
text of the Bonds majr be printed or reprodticed from t,ype compositi.on
comparable as nearly as �racticable to rnarketable corpoz•ate bonds of
li.ke character.
SEr,rlorT 6. Sccle of Bonds. The Cit�hereb,y covenants a.nd agrees
that it �vill sell and delivez• Bonds hereunder onl,y subject to the condi-
, tioiis hereinafter set forth in this Section G. The City �vill initially sell
the $650,000 principal ainount of. the Series A Bonds, which will be
suf�icient to enable the Cit�� to commence the acqui.si.tion, construction,
385
17
improvement and financing of the irnprovement to the E�Zterprise con-
sisting of pumping plants, water trea�tment facilities, reservoirs and
water storage facilities, water mains, pipelines and equiprnent, inclnd-
ing payment of incidental expenses, reir�iburseinent to the City's Gen-
eral Fund and deposits into the Reserve Fund, all as hereinaftet•
provided in Section 7 hereo£ Bonds of any other series may there-
after be issued and sold by the CityT only ��ursuant to Section ll heieof.
SreTroN 7. A�plication, o f Proceeds o f Sa-le o f Bonds. Upon the
receipt of payment for the Bonds or any part. thereof when the same
shall have been dul,y sold by the Cit,y, the Treasurer of the City shall
set aside and deposit the proceeds received from such sale in the follow-
ing respective funds and in the followi.ng order of priorit,y:
(a.) The Treasurer shall deposit, from the proceeds received froin
the sale of an,y of the Bonds, with the Fiscal Agent (to be deposited by
it in the Interest Fund hereinafter ��rovided for in Section 9(d) hereof)
the accrued interest to the date of payment of the purchase price of
such Bonds received upon the sale thereof.
(b) The Treasurer shall deposit, froin the proceeds of sale of the
Series A Bonds, with the Fiscal Agent (to be deposited b�� it in the
Reserve Fund hereinafter provided foz• in Section 9(f) hereof) the sum
of $40,000, and shall also deposit, fronl the �roceeds of sale of any
Bonds of any subseqnent series, with the Fiscal Agent (to be deposited
by it in the Reserve Fund) the sum required b5T the provisions of Section
11(c) hereof.
(c) The remainder of the proceeds received from the sale of any
of the Bonds (including any premium, but excluding accrued interest
from the date of the Sonds so sold to the date of payinent of the pur-
chase price thereof) shall be set aside and deposited by the Treasurer
in a separate fund in the City Treasury, to be known as the"1959 Water
System Construction Fund", which said fund the City herebv covenants
and agrees to establish and maintain. The moneys in the 1959 Water
System Construction Fund sha.11 i�e used in the manner prov�ded b�-1a�v
for the purpose of the acquisition,constructiony im�rovement and financ-
ing of the improvement to the Enterprise described in sa_id measure,
including payment of all costs of said s��ecial revenue bond election
and all. cost� of the issuance o.f. the Bonds, a.n�all engineering,ap?�raisal,
inspection, legal and fiscal agent's fees �ncident thereto, and reimburse-
ment to the City for all f.unds advanced by the City from its General
386
_ ��ia
l�
18
Funcl for the ac�quisit�ion, con.struction, im�rovement or financing of any
of said iinprove�nent to the Fnterprise.
Any balance remaining in the 1959 Water System Construction
Fund after cozr���letion of the acquisition, construction, irnprovement
and financing of. said improvement to the Enterprise, shall be deemed
to be Revenues of the Enterprise and shall be paid over to and deposited
by the Treasurer with the Fiscal Agent, and shall be deposited by the
T'iscal Agent in the Revenue Fund provided for in Section 9(b) hereof
and shall be used for any purpose or purposes thereof relating to the
Enterp:rise.
All moneys held by the Treasurer in the 1959 Water System Con-
struction Fund shall be held in time or demand deposits in any bank
or trust company atithorized to a:ccept deposits of public funds and
s�iall be secure�l at all times by �uch obligation� and �o the fullest
extent required by law and shall not be invested, except that any such
inoneys not irrimedia.tel3T required to be expended may be invested by
the City in direct negotiable obligations of the United States of Amer-
ica or in negotiable obligations fully guaranteed as to both principal
and interest by the United States of America m�turing prior to the date
on which the Trea.surer estimates that such moneys will be required
for expenditure by the City and in any event not more than 3 years from
the date of purchase by the Citv All interest and profit received by the
City on any n�oneys so invested shall be deposited in and for the pur-
poses of said 1959 Water System Construction Fund.
�ECTto� 8. Security of Bo��ds. (a) The Bonds and %3c?ditiona�l
Bonds shall be revenue bonds, payable exclusively froin the Revenues
of t}ie Enterprise as in t17is Resolution provirled, ancl az•e not to be
sec�ure� by the ta_xing ��owe�:� o� t�e Ci.t��. No recourse shall be ha.d for
� the p�a�,ym��z�t of a�ny such Sonds or Additiona�l�3onds, or interest th�i eon,
or a.ny part thereof, a.gainst the general fund of the City, nor shall the
credit or ta�xin�power of the Cit�� be deeined to be �ledaed thereto, and
the holc�er� of any suc?2 Bo�nds or �4dditio�na�l Bonds, o�r the coupons
t��ereto a�pertaining, s�hall never have the right to coznpel the e�erc�ise
of the t��ir�g �pourer by the Citv or the forfeiture of any property of the
C'it�. 'l�he �arincip�al of a�nd interest ori all suc�h �onds and Additional
Bonds an� �ny prernit�rns upon the redemption of anv thez•eaf sliall �iot
be a debt of the City nor a le�a-1 or equi.table ��led�ge, chai•be, lien, or
encumbrane,e l���on an3� �rop�erty of the Cit,y or upon a���� income, re-
387
19
ceipts or revenues of the City except the Revenues of tiie Enterprise
pledged to the pa3�nent thereof as in this Resolution provided.
(b) The Bonds hereby authorized to be issued and a.11 �ldditional
I3onds which may be issued i.n accordance tivith the terins and conditions
hereof shall be special obligations of the City and�shall be .�ecux•ed b�-
a ��ledge of and sha11 be a charge upon and shall be payable, as to
principal thereof, interest thereon anc? any premiums upon the redemp-
tion of any thereof, solely from and secured by a lien ilpon t3�e Gross
Revenues oi the Entex•px•ise as hereinafter provided. The City hereby
pledges and assigns for the securit�T of all of such Bonds a.11 of the Gx•oss
Revenues of the Enterprise, including the I�evenues of improvezrients,
additions and e�tensions theret.o 1�hic}7 maj7 hereaftex• be constructed
or acquired. The st7ms reqtlirea to meet the pa}-ment of. interest on and
princi.pal of all such Bonds and a.n�- l�remiums upon the redemption of
any thereof shall be secured b,y- an exclusice pledg•e, char;e �nd lien
upon all of.:the Gross Revenues of the Enterpi•ise a.nd all of such Reve-
nues, t.o�ether �vith an,y interest earned t.hereon, a,nd the funds herein-
after provided foz• in Section 9 hereof and an,y other funds that may
hereafter be created fx•om said I�evenues for the �ayment of principal
or interest or the better. secui:�ing of t,he payment of principal of or ,
interest on suc11 Bonds, shall constitute a trust f.und fo.r the security
a_nd pa,y�nent of the interest on a�nd principal o:t all of. such Bonds and,
excep�t as otherwise specificall�r authorizecl b�� this Resoh�tion, shall not
be used for any other p.irpose so long as silc}Z Bonds or• an�- of thein or
the interest t�ereon are oiltstanding or unpa.id; exce2�t, that out of such
Revenues there rna,y l�e appoi•tioned, so lon� as the interest on and
principal of. all of such Bonds are ��aicl as the saine become due and
paS�able, together wi.tl� all other cl�arpes reqnired for the pr•otection or
better sec�zring of such Bondr, such sums for such pllrposes and i.n the
order of priority a� are a�utho�rized and provided f.or in Sections 9(g)
and (h) hereof.
(e) All of the Bonds herel�y anthorizec� to be issued and all Addi-
tional Bonds wh.ich ma,y l�e issuec� ii1 accordance with. the terms and
conditions hereof shall be eqaall�r secure� (except as to maturity and
redemption�I�rovisions �,nd eicept �nsofa�r as �n�r si.nking fiinc� or flincls
established in accordance «Titl2 the provisio�ls of this Resolution i71a�7
affo-rd additional securi.tv for �an�- sei�ie.� of Ponds or for an�r�4clditional
Bonds), `vithout priority .f.or numl�er, 1a+e of. Bonds or of A�ditional
Boncls, of sale, of. execution, or o f deliaer�=, b�- said pledge, charge a.nd
. 388
20
lien upon the Revenues of. the Enterprise pursuant to t}ie Law and this
Pesoulti.on. Said ple�lge, charge and lien sllall be prioz• and paramount
to any �and all other claims anc� obligations that may arise ox�be incurred
against said Revenues.
Sr:cTioN 9. Revenues aaed Tunds. For the pux•pose of r�ial�ing
effective the lien of the Bonds and Aclditional Boilds provided for in
Sectio�l S hei•eof, the City covenants and agrees with t�ie holder5 of the
Bonds anc� :4dditional Bonds as provided in this Section 9.
(a) Collectio�a of Char,c�es. All. fees, tolls, rates and other charges
in respect of the Enterl�rise shall be collected by the City upon monthly,
bi-monthly or c{��arterl�r bills therefor. Th:e City shall ha�e in effect at
a.11 times while an,y of the Bonds or Additi.onal Bonds are outstanding
an ordinance (and a resolution supplemental thereto if and to the extent
required bSr such ordinance) providing for such fees, tolls, rates and
. other cha.rges, for the billing thereof, for a due date and a delinquency
date for each bill, and for discontinuance of water service within a rea-
sonable period (not in excess of 90 days) after such delinquency date.
(b) 1959 Water Revenue Fund. All of the Gross Revenues of the
Enterprise, including all fees, tolls, rates and other charges a.nd all
other revenues, income and Z�rofits of an,y kind llowsoever derived from
the Enterprise (except connection charges and refundable deposits made
to establish credit) together with any interest earned thereon, shall, on
the first business da3� of each inonth next succeeding the calendar month
in which such R�evenues have been collected, beginning with the Reve-
nues collected in the month of September, 1959, be deposited by the
Treasurer with the Fiscal Agent and shall be deposited by the Fiscal
Agent in a special fund to be designated as the "T959 Water Revenue
Fund" (lierein called the "Revenue Fund"), which said fund the City
hereby covena.nts and agrees to cause to be established and maintained
and��hich sha.11 be held in trust b,y the Fiscal Agent.
(c) Deposit o f Reven2tes. All moneys in the Revenue FLind shall
be set aside and de�ositecl by the Fiscal Agent in the follo`ving order
of. priority in the .f.ollowing respective special funds, eac}Z of ���hich the
Cit�= herebtir covenants and agrees to cause to be established a.nd main-
tained, and sha.11. be held in trust b�t the Fiscal Agent in such funds
(except tlie 1�2a.intenance a.nd Operation Fund and the Sur�lus Fund,
�vhieli are to be held in the Cit,y Treasury, as hereina,fter pi•ovided) �nd
shall l�e appliecl, nsed a.ncl withdr�wn onl�r for the pilrposes hereinafter•
authorized.
389
21
(d) 1959 Water Revenue Bond Interest Funu. �l�lie ��'iscal �gent
s}iall set aside out of tlie Revenue Fund in the 195y Water hevenne
Bond Interest Fund (which is hereby created a.nd is lierein called the
� "Interest Fund") (the initial ��a�ynient into �vhich is �n•ovided in Sec-
tion 7(a) hereof), in ap���roxiinatel,y equal mo�thly installments, on or
� before the fi�th business da�y of eacl�L rnonth, be��inning in Noverriber,
1959, one-tenth of the aggregate arnount of interest becoming due a.nd
pa3Table on all outstanding Bonds on September l, 1960, until the aggre-
gate amount of such interest is on deposit in such Fund, anc� bebi.nnin:;
in September, 1960, an arnount equal to one-si:�th of t}�e ag•gre�ate haif.-
yearly amount. of the interest becorriing due a,nd Zaa.j�able on all otlt-
standing Bonds a.nd Additional Ponds durinb the next ensuing sia
months until the rec�uisite half-yearly axiioun� of interest on all of the
outstanding Sonds and Additional Bonc�s is on deposit in such Fnnd.
No payment need be made into the Interest Flincl i.f tli� amount con-
tained therein is at least equal to the i.nterest to become due on t�le next
succeeding interest payment date or dates on all of the Bonds and Addi-
tional Bonds then outstanding. All rnone,ys in the Interest Fund shall
be used and withdrawn by the Fiscal Agent so1e137 f.or the purpose of
gaying the interest on the Bonds and Additional Bonds a_s it shall be-
come diie and pa�-able (including a.ccrued interest on anST Bonds or
Addition.al Bonds �urchasecl or called and redeemed prior to matur.it�-
pursuant to this Resolution).
(e) 19.59 WaGer Revenn�e Bo�r,d Retirem�ent I'2cnd. The Fiscal
Agent shall set. aside out of the Revenue I�und in t11e 1959 ��7ater Peve-
nue Bond Retirement Fund (which is hereby ca�ea.ted and is herein
called the "Reti.reinent Fiind") in appl�oYimatel�7 equal monthl�install-
ments, o�n o�r before the fifth business da�r of eac�h month, be�inni.n� in
Sep�te�mbei, 1961, an �motint eqlla,l. to one-aleventh oC the U.�ga•e�ate
yearly amonnt of princip�l due anc� payal�le on all outsta.ncling �eri.al
}3onds a.nd 9dditi.onal Bonds durinr the ne�t ensuin� tt�elve months
until. there shall be accnmtilated in the I�etireiY�ent Fund on or l�ef.ore
each current maturi.t,y date of. �11 slicli �erial Ponds, an amount siiffi-
� cient to pay the princ�ip�a1 amount of all such Serial l,onds ma�turin��b�r
their terms on such current ma�turit�� da�te. l�To ��a��ment need be made
into the Retirement Pnnd so lon� as thez•e shall be in said Ft�nd moneys
suf'ficient to pay the p:•inci��a.l of. all sucli Seria-1 Bonds then outstandin.�
maturing by their terms in the �iext ei�st�ing t���elve rnonths. All such
moneys in the Retirement Fund shall }�e used and withdrawn by the
390
22
Fiscal Agent sole�y for the ��urpose of pa��ing the prineipal of all such
Serial I�oncls anc� �dditional Bonds then outstanding as the�T shall be-
come due and ��3ayable..
So long as any of the Series A Bonds are outstanding, the Fiscal
Agent shall set aside out of the Revenue Fund and deposit in the Series
A Sinking Fund Account (which is hereby created) witnin the P�,etire-
ment Fund, on or before the fifth business day of each month, beginning
in September, 1979, an arnount equal to not less than one-eleventh of
the amount required to redeeni Series A Term Bonds (at the then appli-
cable redemption pri.ce, including prer:�ium but excluding accrued inter-
est) in the following respective principal amounts on September 1 in
each of the following,years:
Principal Amount Principal Amount
oi Series A Term of Series A Term
Year Ending Bonds to Be Called Year Ending Bonds to Be Cailed
Sepfember 1 and Redeemed September 1 , and Redeemed
1980 $25,000 1985 $35,a00
1981 25,000 1986 35,000
1982 30,000 1987 35,000
1983 30,000 1988 40,000
1984 30,000 1989 40,000
All moneys in the Series A Sinking Fund Account on or after the
fifth business day of September, 1979, shall be used and applied by the
Fiscal Agent for the purpose of retiring Series A Term Sonds. The
Fiscal Agent may apply any moneys in the Series A Sinking Fnnd
Account to the �urchase of Series A Term Bonds at public or private
sale as and when and at such prices (excludi.ng accrued interest) as it
may in its discretion determine, but not to exceed the then current
redemption price (including premium but excluding accrued interest).
��henevez• on the fifth business day of any January or July, beginning
in�January, 1980, the moneys in the Series A Sinking Fund Account are
sufficient to redeem at least $5,000 principal a.mount of.Series A Term
Bonds, on the next succeeding interest payment date, the same shall
be used and withdrawn by the Fiscal Agent for the purpose of so re-
deeming Series A Term Bonds at the then current redemption price
(including pr.eanium but excluding accrued interest). Accrued interest
on Series A Terrri Bonds so purchased or redeemed by the Fiscal�gent
shall be paid from the Interest Fund.
No application of any rrioneS�s under this Resolution or otherwise
to the retirement of outsta.nding Term Bonds of Series A shall operate
. 391
23
to impair or affect the obligation of the Ci.tST to make depouits in tl�e
Series A Sinking Fund Account in the amounts and at the time pro-
vided in this Section 9(e) ; provided, however, t11at the City shall not
be deemed in default with respect to Series A Sinking Fund Account
� deposits if the City shall have fixed rates and charbes as .required by
Section 10(c) and if the total principal arriount of Tex•�n Bonds of
�__ Series A required to be called and redeemed to and including the next
September 1 shall have been previously retired by purchase or call.
(f) 1959 Water Revenue Bond Reserve F2t.nd. The Fiscal Agent
shall set aside out of the Revenue Fund in the 1959 Water Revenue Bond
Reserve Fund (which is hereby created and is herein called the "Re-
serve Fund") (the initial payment into �v}iich is provided for in Sec-
tion 7(b) hereof) on or before tlie fifth business da,y of each �nonth
� beginning no later than November, 1959, all moneys that shall be re-
quired to maintain the Reserve Fund in the full amount. of $40,000
while any Series A Bonds shall be outstanding a.nd unpaid. If any
Bonds of an,y subsec{uent series or a.ny Additional Bonds shall be issued
hereunder, the minimum amount required to be maintained in the Re-
serve Fund sha.11 be the amount specif ed in the proceedings for the
issuance of such Bonds of such subseqnent series .or such Additional
Bonds, but not less than $40,000 while any �eries A Bonds are 011t-
standing hereunder. No payirient need be made into the Reserve Fund
so long as there shall. be in the Peserve Fund a sum equal to said re-
quired amount or, when and if the amounts contained therein and also
in the Interest Fund and in the Peti.rement Fund provided for in Sec-
tions 9(d) and (e) hereof are a_t least. equal. to tl�e aggregate principal
amount of, together with interest then due or thereafter to become due
on, all of the Bonds and Additional Boncls then outstanding�. All moneys
in the .fteserve Fund shall be used and withdrawn solely for the purpose
of pa,ying t11e principal of and intex•est on the Bonds and A�lditional
Bonds in the event tl�at no other funds of the City are ava.ilable there-
for, or for the retirement of all of the Bonds and Additional Sonds
then outstanding.
(g) Wccter Maintenance and Operatio�z I'ua2d. The Fiscal Agent
shall set aside monthl�7 out of the I�evenue Fund and transfer to the
Treasurex• for deposit in the ��ater Maintenance and Operation Fund
(which is Iiereby created and is herei.n called tlie "Nlaintenance and
Operation Fund") all mone�Ts in the Revenue Fund which sliall be
, 392
24
required to pag the annual amount budgeted by the City for mainte-
nance and operation costs of the Enterprise during the then current
fiscal year.
On the first day of September, 1959, all ti�ater Department funds
of the Cit,y t�ien on hand and held and available for inaintenance and
operation of the Enterprise shall be set aside and deposited in the
, Maintenance and Operation Fund. The City shall file with the Fiscal
�gent a budget covering the estimated maintenance and opera.tion costs
of the Enterprise for the pex•iod commencing October 1, 1959 and ending
June 30, 19F0. The City shall also file with the Fiscal Agent before the
first day of eac11 Fiscal Year, commencing with the Fiscal Year begin-
ninb July 1, 1960, a bud�et covering the estima�ted maintenance and
operation costs of the Lnterprise for the next ensuing Fiscal Year.
The Fiscal Agent. shall determine upon the basis of each such
budget the amounts of money to be transferred to the Maintenance
and Operation Fund. The Fiscal Agent shall be entitled to rely npon
each such budget and shall not be required to determine or verify the
accuracy thereof. The Fiscal Agent shall pay to the Treasurer for the
account of the Maintenance and Operation Fund, on t.he basis of said
first budget, the amount z•equired for maintenance and operation costs
during said period ending June 30, 1960, in approximately nine equal
monthly installments, on the fifth business day of each month, com-
mencing in October, 1959. The Fisca.l Agent shall pay to the Treasurer
of the City on the fifth business day of each month, beginning in the
month of Jllly, 1960, an amount equal to one-eleventh of said amount
budgeted by the City for maintenance and opex�ation costs of t.he Lnter-
prise for such current Fiscal Year, tlntil there sha11 have been paid
ovex• to the Treasurer for the account of the Maintenance and Oper-
ation Fund an amount equal to the total of said budgeted amount for
said current Fiscal Yeax•. All moneys in the NTaintenance and Operation
Fund shall be used to pay necessar,y- a.nd reasonable maintenance and
operation costs of the Enterprise.
(h) Water Revenue Bond S2crplus Revenue Fund. All moneys
remaining in the RevenLle Fund on the fifth business da,y of each
month, after setti.ng aside and transferring all. of the sums x•equired
to be set aside or transferred by the Fiscal Agent b,y the provisions of
Sections 9(d), (e) (f) and (g) liereof, shall be transfex•red by the
Fiscal �gent to the Treasurer for deposit in the Water Revenue Sond
Surplus R,evenue Fund (which is hereby created and is herein called
393
25
the "Surplus Fund"). All moneys in the Surplus Fund sliall be used
and withdrawn by the Treasux•er, as directed b,y a x•esolution of. the
Council,for any or a�ll of t�he following purpases,exclusivel�:
(1) 2'o pay rriaintenance and operation costs of the Fnterprise
for the current Fiscal Year for which no a.dequate budgeted amount
was provided by the City;
(2) To �ay the costs of extensions or i�nprovements of or
additions or betterments to the Enterprise or of inaking ne�v con-
sumer connections to the Enterprise;
(3) To be re-deposited with the Fisc.al Agent and (i) deposited
by the Fiscal Agent in the Series A Sinkin; Fund Account or in
any sinking• fund account or accounts hereaf.ter created by resolu-
tion of the Council for the Term Bonds of any other series or for
any Additional Bonds which are Term Bonds, a.nd used and with-
drawn by the Fiscal Agent solely for the purpose of purcha.sing or
calling and redeeming the Bonds or Additional Bonds for which
such sinking fund account shall have been created, pursuant to the
provisions hereof or of such resolution; (i.i) used and withdrawn
by the Fiscal Agent for the purpose of purchasing Bonds or Addi-
tional Bonds at public or private sa.le, as and when and at such
prices (including brokerage and other charges, but excluding
accrued interest) as it ma37 in its discretion determine, but not to
exceed the par value thereof, or, in the case of Bonds or Additiona.l
Bonds which by their terms are subject to call and redemption, the
highest redemption price (excluding accrued interest) or the then
current redemption price (excluc�ing accrued interest) whichever is
lower; (iii) used and withdrawn by the Fiscal Agent on and after
` September l, 1970 for the purpose of calling and redeeming Series
A Bonds pursuant to the provisions of Section 3 hereof; or (iv)
used and withdrawn by the Fiscal Agent for the purpose of calling
and redeeniing Bonds of any other series or Additional Bonds,pur-
suant to the provisions of tlie resolution authorizing the same; or
(4) For any other la���ful purpose of the Cit,y.
(i.) The Fisca.l Agent shall not perrnit any withdx•awal to be rnade
by the City of any moneys held b,y the Fiscal Agent if and when, to
the kno��ledge of the Fiscal A�ent, the City is in default hereunder.
The City shall not permit the «-ithdra��al to be rnade by the Ti�easurer
of any moneys held by the Treasurer i.n the l�Zaintenance anc� Operation
, 394
26
Fund or in tlie Surplus Fund if and when the City is in default here-
under.
(j) All inoneys held by the Fiscal Agent and allocated by the
Fiscal Agent to any of the funds, ot.her than the Reserve Fund, shall be
held in time or deinand deposits, and shall be secured at all times by
such obligations and to the fullest extent required by law and shall
not b� invested, except that such moneys held by the Fiscal Agent
rnay, upon written instructions from the City, be invested in direct
negotiable obligations of the United States of America or in negotiable
obligations fully guaranteed as to both principal and interest by the
United States of America inaturing prior to the date on which such
moneys are required to be paid out by the Fiscal Agent hereunder.
�7one3-s allocated to the Reserve Fund shall be held in tinie or demand
deposits secured as above ref.erred to, except tliat, upon written instx�ilc.
tions from tlie City, the Fiscal Agent shall invest anj� or all of the
rnoney� in the Reserve F�tnd, not then ��equired to be applied to the re-
demption of Bonc�s or Additional Bonds, in direct negotiable obliga-
tions of t�ie United States oF America or in negotial�le obli.gations fully
guaranteed as to bo�th principal and interest by the United Sta�tes of
America maturing not more than twelve years from ctate of purchase
by the I'iscal Agent. For the pnx•pose of Getermining the aulounti of
mone,y in the Reserve Fund, all i.nvestments of moneys t.herein sliall be
valuel at theix• czlrrent nlarket values as of the next prececling Febl�uar��T
2�3 or Allgust 31. All interest received by t�ie Fiscal 1lgent. on an�r .
i7ioneys so invested shall be deposi.ted b,y it in and for the l�urposes
of the Revenue Fund.
SECTiov 10. Covenan,ts of t,1ae Cat��. In order that the payment
of the Bonds and interest. t.hereon sliall be adequatel�� secilred, t11e City
covena.nts and agrees «�itli the holders of the Sonds, as follo«�s:
(a) The Cit,y ��ill pa.y or ccause to be paid panctually the principal
of. everjT I3ond, and tlie interest thereon, on the date or dates and at the
l�lace or• places and in the nlanner• menti.oned in the Bonds and in i,he
coi�pons thereto appertaining and in accordance with this �esolution.
(b) The Cit� will conlmence the ac�uisition, constructio�n aiad im-
�rovement of the Enterprise desci•ibed i.n said nieasure and co�.tinue
t11e same to corn�;letion «-it}1 all practicable dis��atch, and in � sonnd and
ecenornical rnanner; and �vill o��erate the Enter��rise in an efficient and
economical inanner and �vill operate, inaintain a.ncl preserve the Enter-
�rise in �ooc� re�air a�nd �vorking ordex froin the P4evenues available
� 39�5
27
for such purposes as provided herein, and �vill prescrii�e, revise and
collect such fees, tolls, rates anci other cha.rges in connection therewith
that the services, facilities and water of tlie Enterprise are fitrnished
to inhabitants of the City and other users at. the lowest �ossible cost
consistent `�ith sound econozn,y and prudent rnanagement and the se-
curity and payment of the principal and interest of the Bonds.
(c) The City will fix said f.ees, t.olls, rates and other charges on a
basis to yield Revenues at least sufficier�t with respect to the then im-
mediately ensuing twelve inonths pei•i�d, after mal�in�, due and reason-
able allowances for contingencies and errors in the estirnates, to pay
each and all of the following charges in the. respective priority and
order below set forth, to wit:
(i) The interest on and principal of the Bonds as they become
due and payable;
(ii) All payments requirec� for compliance in all respects with
the terms of this Resolution, including particularl�� the provisions
of•Section 9 hereof;
(iii) All payments to zneet any other obligations of the City
which ax•e charges, li.ens or encurn.bY•ances u�on, or payable frorri,
th.e Revenues of tlie Enterprise; and
(iv) All current eapenses of management, maintena.nce, oper-
ation and repair of the Enterprise;
provided that snch fees, tolls, rates and ot.her cl2arges sha11 at all ti�ics
be at least sufficient to enable the City to �ay to the Fiscal Agent in
the next succeeding twelve-inonth period �nnual Net Revenues equal to
at least 1.35 times the a�ggx•egate amount of the pr�inci��al of and intex;est
on the Bonds �nd minimum sinl:ing funcl payments (if any),tivhich shall
become due and payable within said next sncceedin� t��el��e-rnonth
period, plus payments required to be �nade iilto the Resert�e F17nd du.r-
ing said next succeeding twelVe-month period.
(d) The City will preserve and protect the security of the Bonds
and the rights of the holders thereo�f, and ��ill warrant and defend such
rights against all claims and demanrls of all persons. From a.nd after
the ra.le a.nd delivery af an�- of the Bonds b�r the Cit�-, the Bonds and
coupons appert�,ining thereto sha]1. be incontestable by t11e City.
(e) The City will pay ancl dischaY•�e, or cau�e to be �aid or di.s-
charged, an,y a�nd all lawful clainis tor l�,�bor, zxi�,�e7�ials, and s�n��plies,
which if unpai.d might by �la«r heco�me a lien or charge up�on the Reve-
396
28
nues of tlie Fnterprise or any part of said Revenues, or any funds in
the 1lands of the Fis�al Agent or the Trea.surer•, prior to or superior to
the lien of t�he �3onds, or whic�h i7light impair the sec�urit�y of the Bonds,
to the end that tlie priority and security of the Bonds shall be fully pre-
served and protected.
(f) Tlle City �vill collect and hold in trust the Revenues or other
funds plec�ged to t�ie payinent of the principal of and interest on the
Bonds for the benefit of the holders of. the Bonds and will pay the same
over to th� I+�iscal Agent as herein provided and will apply such Reve-.
n�:es or otlier funds only as provided by this Resolution, or, if this
Resolution shall hereafter be inodified in the inanner provided herein,
only as provided in this Resolution as modified.
(g) The City will keep proper books of record a.nd acc.ounts of the
Enterprise (sepa-rate from all other records and accounts of the City)
in «7hich complete and correct entries shall be made of a.11 transactions
relating to the Enterprise or any part thereo.f., and which, together with
all other books and records of the City, shall at all times during business
hours be subject to the inspection of. (i) the Fiscal Agent and (ii) the
�iolder or holders o�f not less than 10�% of the principal amount of the �
Bonds then outstanding, or his or their. representatives duly authorized
in writing.
(h) The Cit�- will prepare and file �vith the Fiscal Agent annually
within �0 days after the close of each Fiscal Year (commencing with
the fisc�,l year ending June 30, 1960) so long as any of the Bonds �,re
outstanding:
(1) a detailed statement for the preceding Tiscal Year show-
ing the amoLtnt of. the Gross Revenues of the Enterprise, all dis-
bursements from such Revenues and all eYpenditures applicable to
the Enterprise, together ti��ith a detailed b�lance sheet reflecting
the financial condition of the Enterprise, including the balances in
all funds held b37 the Fiscal Agent and the Treasurer as of the end
o.f. such Fiscal Year, accornpanied bc a certi.ficate or ol�inion in.
writin� of an independent certified public accountant selected by
the Cit,y and satisfactory to the Fise.al A�ent;
(2) a generaT stateinent showing the schednle of rates charged
f.or each class of water connections, the i�umber. of users in each
s�parate classification of rates, all as of the close of such Fiscal
Yeai:•, and the gross revenues received in each snch classification
of rates during such Fisc;al Year; and
, ,
397
29
(3) a general statement of the p�hSrsical condition of tl�e Enter-
prise.
(i) The City will file with t�he ��iscal Abent and �vill publi.�ll once
annually (at the e�pense of t�ie City as pa.rt o:� tlie cost of xi�aintenan�e
and operation of the Enterprise) not mor•e than 120 da,-ys after the close
of each Fiscal Year, in a ne�uspaper published in the County of Shasta,
State of Californi.a, a summar�� of the statement required to be pre-
pared by the City pursuant to Sec.tion 10(h) (1) hereof. and tivill furnish
to the IPiscal Agent such yeasoaiable nunlber of copies thereof (not ex-
ceeding 140 copies) as may be rec�uii�ed hy the Fiscal Agent for distribu-
tion to investment bankers, securit�T dealers and others interestecl in the
Bonds and to the holders of Bonds reqtlesting co��ies tliereof, but tlie
Fiscal Agent shall not be �•eqLai.red to incur an�% nor-��eimbursable ex-
penses in making such distribution.
(j) The City will not mortgage or otherwise encumber, pledge, or
place any charge upon the Enterprise or any of the Revenues thereof,
and will not sell, lea.se or other�vise dis�ose of. the Enterprise ox� an��
part thereof essentia.l to its operation or necessary to the maintenance
of the Revenues or enter into any lea.se or agreement whicll impairs
or impedes the operation of the Enterprise or any part thereof. neces-
sary to secure adequate Revenues for the ��a37ment of the principal of
and interest on the Bor.ds, or. «Thich other«-ise would irnpair the rights
of the holders of the Bonds with respect to such Revenues or the opera.-
tion of the Enterprise; provided, ho��ever, that any real or personal
. propert;�T which has become non-operative or which is not needed for .
the efficient and proper operation of the Enterprise, or any materia.l
or equipment «�hich has tivorn out, rnay be sold at not less than the
market value thereof without the consent of the holders of the Bonds
if such sale will not reduce the Revenues of the Lnterprise and if all of
the net proceeds of such sale are deposited in the Revenue Fund and
used f.or any purpose or purposes thereof relating to the Enterprise.
(k) The City will at all tirnes maintain with responsible insurers
for the benefit of the holders of the Bonds, insurance on the Enterprise,
which shall be adeqnate in amount and as to the risks insured aga.inst,
including insurance against accident to or destruction of the Ea�terprise
or an,y part thereof, against sue,h risks as �re usually insurable in con-
nection with similar enterprises. �ny pr•oceeds of any such i.nsura.nce
collected by the City in the event of. an,y loss or dain�ge shall be applied
39g
30
to the repair or reconstruction or other improvement of the Enterpri.se.
The City shall begin such work of repair, reconstruction or improve-
ment pror�iptly after such loss or damage shall occur and sha.11 continue
and properly cor�iplete the same as expeditiously as possible. The Cit,y
shall cause to be paid out of the proceeds of such insiirance, and from
any other available funds, all costs and exp'enses in connection with
such repair, reconstruction or inlprove�nent. so that the same shall be
completed and the Enterprise shall be free and clear of all liens and
claims. If the proceeds received by reason of any snch loss shall e�ceed
the cost of such repair, reconstruction or improveinent, the excess
shall be deposited b,y the City with the Fiscal Agent in the Revenue
Fund and shall be used for any purpose or piirposes thereof relating
to the Enterprise. The City will also ca_rry for the benefit of the bond-
holders fidelity insurance with res�ect to all Ci.ty officers and employees
who respectively receive, collect, or have in their care or custody, any
Revenues or funds of the Enterprise, such i.nsurance to be in amonnt or
amounts at least equal in the aggregate to the maximum amount of
such Revenues or funds at any one time in the care or custody of all
such officers or employees.
(1) The Ci.ty will pay and discharge or cause to be paid a.nd dis-
charged all ta�es and assessments and other governmental charges
which ma,y hereafter be lawfully imposed upon the Fnterprise or upon
any part thereof or upon any Revenues therefrom, when the same shall
become due; and the City will duly observe a.nd conform to all vali.d
requirements of any gover•nmental authorit�T relative to the Enterprise
or any part thereof.
(m) The City will have in effect at all times an ordina.nce of the
Cit3- requi.ring the owner of any premises located within or without the
limits of the Cit,y and connected with the Enterprise to pay the fees,
tolls, ra�tes and other charges applicable to such connection an.d for
water furnished b,y the Enterprise.
(n) The Cit�� �vill not acquire, constt:•uct, operate o�• maintain and
will not«�ithin t�ie scope of its l�owers permit an,y other�ublic or priva.te
corporat.i_on, politica_l subdivision, district or agency or an,y person what-
soever to acquire, construct, operate or znaintai.n, within the City or any
paY•t thereo.f., an�� system or utilit,y competitive�vith the Enterprise.
(o) The City ��ill not permit any part of the Enterprise, or any
facilit,y thereof., or anj� �vater furnished thereby, to be used or taken
advantage of, free of charge by a.ny person, firm or corporation, or
, 399
31
by any public agency (including the State of Califox•nia, tlie United
States of America, or any public corpox•ation, politic�,l subdi.visioil, city,
county, district or agency of any thereof, and the �ity or any agenc,y
of the City).
None of the foregoing covenants, agreements or duties shall be
construed to require the expenditure in an,y nia.nner or for an,y purpose
by the City of any funds othex• than Revenues received or receivable
from the Enterprise.
SECTioN 11. Additional Bonds. The City covenants and agrees
with the holders of the Bonds that Bonds of an5r series i.n addition to the
Series A Bonds may be issued and sold by t11e City only subject to and
upon compliance by the City tivith the conditions set forth in the follo��-
ing paragraphs (a), (c), (d) and (e) and then onl,y on or after Septem-
ber l, 1960 (but not prior thereto), and that Additional Bonds having
a lien upon and payable from the Revenues of the Enterprise (includ-
ing all Revenues from any extensions, additions or bettex•rnents thereto)
may be issued upon a parit.y with the Bonds issued hereunder, but
only as provided in this Section 11 and then only on or after Septem-
ber l, 1960 (but not prior thereto) and only for the purpose of i�nprov-
ing the Enterprise or for the purpose of acquiring, constructing or
improving extensions, additions or betterments to the Enterprise or
for the purpose of refunding any outstanding Bonds, or for any com-
bination of such purposes, and only subject to and upon compliance by
the City with the conditions set forth in the following paragraphs (a),
(b), (c), (d) and (e) :
(a) The City shall not at the tinie of the issue of such Bonds or
Additional Bonds be in def.ault hereunder;
(b) The issuance of the �d�itional Poncls shal.l have be�n du1�7
authorized at an electi.on pursuant to the Lau=;
(c) The issuance of the ]3oncis or Ad�itional Bonds shall be
provided for b�T a resolutio�� du1;- adopted b� tne Conncil; the last
mattiritv date o� the A__dditic�nal_ 13onds sliall not be ea�rlier tha.n the
last maturit� date of aily Ponds tl�en ozz�tst.�.ilding; such Bonc�s o�•
Addi.tional. Bonds shall mature on Se��teinr�er 1; a.nd fi�ed ser.•ial maturi-
ties or m�ndatory minisnum sinkin;• fun� pa�rments, ox� an��com�bina�tion
� thereof, shall be established in amounts sufficient to provi.de for the
payment ancl retirement of all �uc;l� I3orzds or Ad.ditional Eionds o11 or
before their res�ective inatur•it�- dates; and the R.ese�•ve Fund shall be
increased to a minimnm amount ec�u��l to the M�,xirrmm Annual Debt
� 400
32
Service iii any years aftex• tlie issuance of suc.lz I3onds ox• Additional
Bonds �.nd shall tliereaftex• be maintained in an emount equal at any
, tirne while an�- of tlie Bonds or Additional Sonds ai•e outstanding to
not less than tlie Ma,�imurn Annual Debt Service therea.fter to become
due and payahle; and
(d) The actual Annnal Net Revenues of the Enter��rise for the
12 rnont�is enc�ing the calendar month next preceding the date of adop-
tion b,y the Co�ncil of a resolution authorizing the issuance of such
Bonds or Additional 13onds, as shown by an audit certificate or opinion
of an independent certified public accountant employed by the City and
satisfactory to the Fiscal Agent, plus 75% of any additional Annual
Net Revenues (over ancl above said amount of said actual Annual Net
Revenues for said preceding 12 months' period) estimated to be pro-
duced by the Fnterprise in any 12 montlls' period out of tlie 24 rnonths
next succeedin� the date on which such Bonds or Ac�ditional �onds
will become outstanding, as shown by a certificate or opinion of. a quali-
fied independent engineer employed bv the City a�zd satisfactory to the
Fiscal �igent sha.11 have produced a st�m equal to at least 1.35 times
(i) The average annual amount of. the principal of and inter-
est on the Sonds and�1d�itional Bonds then outstandinb hei•eunc'�e.r
payable during the then current fiscal year and in each fiscal. �-ear
thereafter so long as any of such Sonds and Additional Bonds
issued hereunder are bS� their terins outstandinb, computec� oii the
assumption that all of such Bonds and Additional Sonds then
outstanding are being retired on the basis of approximatel3T equal
annual principal and iiitei�est pa��ments dnring the period of their
' fixed maturitv dates calculated in accordance ivitli standard annu-
it,y tables; plus
(ii) The average annual aniount of principal and interest on
the Bonds or Additional Bonds proposed to be issued pa,yable
during each fiscal year so lon� as a.ny of such Boncls or.• Aclditiona.l
Bonds shall by tlleir terms be outsta.nding, coznputed on t11e as-
sumption that a].1 of such Bonds or Additional Bonds��ill be i•etired
on the basis of approYimatel�� enual annual principal a-nd interest
payments durinb the period of their fixed mattu•it�- da.tes ca.lcn-
]ated in accordance with standard annilitj� tal�les and ���ith int.erest
e�timated a�t not les� than the average interest rate o�l all Bonc�s
and Ac�dition�l Bonds then outstandin�herelli�der.
� " 401
33
In the event and to the e�tent tliat Additionai Bonds are to be
issued solely for the purpose of refunding and retiring an,y Bonds or
Additional Sonds then outstanding hereundei•, then, for the purg�ose of
the calcula.tion required under the preceding clause (ii), tlle average
annual amount of principal of and interest on.suc.h fddditional Bonds
proposed to be issued need be taken into consideration only in any
future year in which any o.f. the Bonds or Additional �3oncls issued
hereunder will also be outstanding after the issuance of sucli Addi-
tional Bonds; provided that �lothing in thi.s Resolution contained sha_ll
limit or restrict the issuance of an5r Additional Bonds if after the
issuance and delivery of such Additional Bond.s (whether for refunding
purposes or otherwise) none of the Bonds authorized hereunder will be
outstanding.
(e) All of the provisions of Section 10 and Sections 12 to 1f3, Uoth
inclusive, hereof shall be applicable to such Bond� or Additional Bonds,
which shall be issued subject to the provisions and limitations of. s��id
sections, a�1d enti.tled to the benefit and security thereof, and the term
"Bonds" as used in said sections shall mean and include Additional
Bonds.
SrcT1:oN 12. F2arther �lssurances. The City �vill from tiine to
time adopt such further resolutions and make, e�ecute, deliver and
record snch further instrunients and assurances as ��7av now or here-
after be autliorized b,y- law, or as ma�7 reasonably be reqnired to compl�-
with the terms and �rovisions of this l�esolution in ord.e�:• to assux•e to
the holders of the Bonds the rights and benefits l�erein ��r•ovicled fox•
thenl.
SEcrio� 13. Fminent Domcci��, Proeeeclings. If �Zll or any ��ax�t of
the Enterprise shall be taken b�T eminent donlazn I�roceedings or other
proceedin�s authorired b,y l�w, the net px�oceeds reali.zel by the Cit,y
thexefr�om sha�ll �be deposited b�- the Cat,y �uit�i the Fiuc�a�l A;ent in �,
special fund, in trust for the exclusive benefit of the hol.ders of the
Bonds then outstanding a.nd sttbject to the follo��ing condi.tions:
(a) If snch f.unds are si�fficient to provic�e for the pav�nent of trle
entire amount of principal due or to beconle due upon all of the Bonds
plus the �remitlm payable on the next call date on all callable bonds,
tobether with the i.nterest o�n all the Sonds from the date o�f receipt
of. sucl�i proceeds to the matux�it�T date of the Bonds; or t�o� the neat c�,ll
date in the case of. callable bonds, then snch mone�7 shall be applied b,y
the Fi_sca,l Agent �to the payment of the principal of and interest on
402
34
all of the Bonds, or to the call and redemgtion of Bonds pri.or to their
fixed maturity.
(b) Ii snch p�x•oceeds are insuf'fic�ient to pr•ovide rtioneys ior the pur-
poses in sub��a:�agraph (a) of this Section 13 provi.ded, tlien tlie same
shali be dep�osit�d by the City with the Fiscal Agent in a special fund
in trust for the benefit of the holders of all the Bonds then outstanc�ing,
who shall be entitled to share in such proceeds equally and ratably in
the pro�ortion svhich the principal amount o:E Bonds owned by each
holder. bears to the total pr.incipa_1 amount of all of the Bonds then out-
standinb,`vitllout preference or pri.ority of any one Bond over any other
Bond, and irrespective of any registration of such Bond for non-
paj�nent or othei�vise as provided b�t la��, and without preferei�ce or
priority of any Bond registered as to both principal and interest in tlle
name of the registered owner over any I3ond ��a��able to bearer, so that
all of the Bonds shall be deemed under snch circumstances to be o11 a
��arity and entitled to sha,re in such proceeds on the basis of absolute
equalit�-. No such pro rata- sharing shall impa.ir the right of the holder
of any Bond, which is absoltite, to receive paynient in full of the prin-
cipal of and interest on all of the I3onds held by him from anS- source ,
of pa.yment or from an3�funds whi.ch ma��then or tliereaf.ter be available
for such payment by the City.
Notwithstanding anything herein conta,ined,if such eminert dornain
proceedings do not substantially impair or affect the Revenues of the
Enterprise or the operation of. the Enterprise o.r the ability of the Cit.y .
to meet all of its obligations hereunder with respect to the payment of
the Bonds outstanding hereunder, and interest thereon, all as sho��n by
a certificate of an independent engineer employed by the City and sat-
isfa.ctory to the Fiscal Agent, then the Council sha.11 b,y resolution so
determine and declare and such net proceeds realizecl l�,y the City shall
be considerec�to be, and shall be treated as,I�evenues of the Enterprise.
Such detex•mination �f such fac.t by the Counci.l in any such resolution
shall be final and conclusive.
SECTroN 14. Default; Remedies of Bondholders. (a) If one or
more of the following events (herein called "events of default") sha.11
happen, to wit:
(1) If c�efault shall be made in the due a,nd punctual pa,yment
of the principal of any Bond when and as the same shall become
due and pa,yable, whether at maturity as therein expressed, by
Proceedings for redemption, by declaration, or otherwise;
403
35
(2) If default shall be made in the due and punctnal payment
of a.ny installment of interest on any Bond when and as such
interest installrnent shall become due and payable, and such de-
fault shall have continued for a peri.od of 30 clays;
(3) If default shall be made in the due and punctual payrnent
or satisfaction of any annual sinking fund pa.yment `vhen and as
such sinking fund payment shall become due and payable as pro-
vided fo�r ]�erein or in any resolu�ti.on oi tlie Conncil rela,tin�to any
series of Bonds other than the Series A Bonds or any Additional
Bonds, and such default shall have continued for a period of 30
days;
(4) If default shall be made b,y the City in the observance
of any of the covenants, agreements or conditions on its part in
this Resolution or in any resolution of the Coimcil relating to a.ny
series of Bonds other than the Series A Bonds or to any Additional
Bonds or in a.ny Bond contained, a.nd such default shall have con-
tinued for a period of 30 daSTs; or
(5) If the CitST shall file a petition or answer seeking reor-
ganization or arrangement under the Federal Bankruptcy Laws
or any other applicable law or statute of the United States of
America, or if a couz•t of competent jurisdiction shall approve a
petition, filed with or witliout the consent of the City, seeking
reorganizati.on under the Federal Bankru�tcy Laws or any other
applica�ble law or statute of the tinited States of �merica, or if
under the provisions of any other la�u for the relief or aid of
debtors a.ny court of competent jurisdiction shall assume custody
or control of the Cit,y or of the whole or an` substantial part of
its property;
, then and in each and every such case tile holders of not less than a
majority in aggregate principal amount of the Bonds at tlie time out-
standing shall be entitled, upon notice in writing to the Cit�T; to declare
the principal of all of the I3onds then outstandi.ng hereunder and the
interest accrued thereon to be due and payable immediately, and upon
any such cleclaration the same shall beconie and shall be imi7lediately
due and payable, anything in this I�esolution or in the Bonds contained
to the contrary notwithstanding.
All of the Gross Revenues of the i'nterpri.se, including all sums
in all of the I'unds pi•ovi.ded for in Section 9 hereof, and a.11 snms in
' " 404
36
all of the Funds Z�rovided for in Section ! hereof, u�on the date of the �
declaration of acceleration by the holders of the Bonds as above pro-
vided f.ollowiri�; an5� event of defanit, and all sums thereafter received
by the City or tlle F'iscal Agent hereunder shall be applied by the Fiscal
Agent in tlle order following upon presentation of the several Bonds
and coupons, and the stamping thereon of the payment if only partially
paid, or upon the surrender thereof if fully paid:
First, to the payment of the costs and expenses of the bondholders
in deciaring such event of default, including reasonable compensation
to their agents, attorneys and counsel; and to the payment of the costs
and expenses of the Fiscal Agent in carrying out the provisions of this
�ection, including reasonable compen.sation to its agents, attorneys
and counsel;
Seco7ad, to the payznent. of the whole amount then owing and unpaid
upon the Bonds for principal and interest, with interest on the overdue
principal and installments of i.nterest at the rate of G°�o per annum (to
the extent that such interest on overdue installinents of interest shall
have been collected), and in case such moneys shall be insufficient to
. pay in full the whole amount so o�uing and unpaid upon the Bonds, then
to the p�yment of such principal and interest without preference or
priority of principal over interest, o.r of interest over principal, or of
any installment of interest over any other installment of interest,
ratably to the aggregate of such principal and interest.
(b) Subject t.o any contractual limitation binding upon the holders
of any of the Bonds (including, but not Lirnited to, any limitations upon
the exercise of. an3- remedST to bonclholders holding a specific percentage
of such Bonds), an�= holder of Bonds shall have the right for the equal
benefit and protection of all holders of Bonds similarly situated:
(1) By mandamus or other suit or proceeding at law or in
eqtlit,y to enforce his rights against the Ci.ty, the Council, and any
officers, a.gents and emplo,yees of the Cit��, and to require and com-
I�el t�ie Cit.y, the Council or any such oificers, agents or employees,
to �erform and carry out their duties Linder the La�v and their
agreements �vith bondholders as provided in this Resohition;
(2) B�- suit in equit}� to requir•e the CitjT and the Council to
account as i.f. tl�ey were the trustee of an express trust; or
(3) By suit in equity to enjoin any acts or things which may
be nnlawfiil or violate the rights of the bondholders.
� ' 405
37
Except only as provided in Section 15 hereof, nothing in this Reso-
lution or in the Bonds or in the coupons contained sha,ll affect or impair
the obligation of the City, which is absolute a.nd unconditional, to pa.y
the principal of and interest on the Bonds to the respective holders of
the Bonds and coupons at the respective dates of maturity, or upon
ca11 for redemption, as herein provided and out of the Revenues herein
pledged for such payment, or affect or impair the right of action, which
is also absolute and unconditional (except as provided in Section 15
hereof), of such holders to institute suit to enforce such payment b�-
virtue of the contract embodied in the Bonds and coupons.
The remedies conferred hereby a.nd by the Law upon any holder
of Bonds do not e�clude any other remedy, btit each such remedy is
cumulative and in addition to every other remedy a.nd may be exercised
without exhausting and without regard to any other remedy conferred
hereby or by the Law or by any other lativ. � waiver of any default or
breach of duty or contract by anS= bondholder shall not extend to or
affiect any subsequent default or breach of duty or contract or impair
any rights or remedies on any subsequent default or breach. The delay
or omission of any bondholder to eaercise any right or power accruing
upon any default shall not impair any such right or power and shall not
be a waiver of any such default or acquiescence therein. Every sub-
stantive right and every remedy conferred upon the bondholders may
be enforced and exercised as often as is deemed expedient. If a snit,
action, or proceeding to enforce any right or e�ercise any remedy shall
be abandoned or determined adversely to the bondholders, then, and in
every such case, the City and such bondholders shall be restored to
their former positions, rights and remedies as if. such suit, action, or
proceeding had not been brought or taken.
Any suit, action or proceeding which any holder of Bonds shall
have the right to bring to enforce any right or remedy hereunder may
be brought by the Fiscal Agent for the equal benefit and protection of
all holders of Bonds�sii�lilarly situated a_nd the Fiscal Agent is hereby
appointed (and the successive respective holders and registered owners
of the Bonds and interest coupons issued hereunder, by taking and
� holding the sa�me, 5hall be concl.ia.sively deemed so to l��a,ve a���ointed
it) the true and lawful attorne3�-in-fact of the respective holders anc�
registered o�vners of the Bonds aiid interest co�.pons for• the purpose
of bringing a.ny such suit, action, or proceeding a.nd i.o do ancl perform
any and all acts and things fox• and in behalf of the respective holders
� ' 406
38
and re;istered o`vners of. the Bonc�s and coupons as a class or classes,
as may be necessa.ry or advisable in the opinion of the Fiscal Agent
as such attorney-in-fact.
�ECTzoN 15. A7yzend��zent o f Bonds and Resolution. All of the
provisions of this Resolution sha11 constitute a contract between the
Ci.ty and t�ie h.older or holders of the Bonds hereby authorized, and
frorri and after the sale and delivery of any of the Bonds no amendment,
altei�ation or rnoc�ification of the Ponds ox• of the coupons appertaining
thereto or of this Resolution shall be made which shall in any manner
impair, impede or lessen the rights of the holders of the Bonds or the
coupons ap�pertaining thereto, then outstandi.ng, without the piior writ-
ten consent of the holders of at least 75% of the aggregate pri.ncipal
amount of. Bonds then outstanding. Any such amendment, alteration
or modification which sl7all have received the written consent of the
holders of said percentage of said outstanding Bonds as provided in
this Section shall be binding upon the holders of all of the Bonds and
coupons appertaining thereto, either attached to or detached from
said I3onds. If, in the o��inion of. the Council, any proposed amendment
substantia1137 and adversel37 affects the rights of the electors of the
Ci.ty, the Council may submit such amendment for the approval of the
electors at an election called and held for that purpose. Such election
may be called and held as no�u oi• hereaf.ter �nay be provided by law, or,
in the absence of any express provision of law, may be called and held
in substa.ntially the sa.me manner as provided by law for the holding of
an election for the issuance of revenue bonds under the Law; provided
that only a majority vote of the voters voting upon the measure at such
election need be required and the measure to be submitted at such elec-
ti.on shal]. be genei�a11S7 t.o the effect of whether or. not the pro�osed
amendment shall be a.pproved and adopted.
SECT.r.oN 16. Fiscal Agent. The City hereby appoints Crocker-
Anglo Nationa.l Bank in the Citj- and Count,y of San Francisco, State
of California, as the 1959 Water Revenue Bond Fiscal Agent for the
purpose of paying the pri.ncipal of and interest on any of the Bonds
presented for payment in the City and Count3T of Sa.n Francisco, State
of California_, and for the purpose of performing all other duties
assigned to or imposed upon the Fiscal Agent as in this Resolntion
provided. Tlie Fiscal Agent initiall,y appointed and any successor
thereof ma37 be removed by the City a.nd a successor or successors ap-
��ointed; provided that ea�ch such successor shall be a banl: or trust
- 407
39
coinpany doing business in a.nd ha_ving an office in the City and County
of San Francisco, State of California. Any such Fiscal Agent desig-
nated by the City shall continue to be the Fiscal Agent of the City for
all of said purposes until the designation of a successor as such Fiscal
Agent, and the City a.grees that it will rnaintain a Fiscal Agent in said
City and County of San Francisco so long as any of the Bonds are
outstanding and unpaid. The Fiscal Agent is hereby authorized and
directed to withdraw f rorn the Funds and in the manner provided in
Section 9 hereof all sums required for the payment of the principal of
and interest on the Bonds presented f.or patrment in ��n Francisco
at xnaturitS�, or on call and redernption or on purchase b,y the Fiscal
Agent prior to maturity. The Fiscal �gent is hereb3J a.uthorized to
redeem the Bonds and the interest coupons appertaining thereto when
duly presented to it for payment a.t maturity, or on call and z•edemp-
tion or on purchase by the Fiscal Agent prior to mattlrity, and to
cancel all Bonds and coupons u��on payilient thereof and to return
the same so cancelled to the Treasurer. The Fiscal Agent shall keep
accurate reco.rds of all funds a.drriinistered by it and of all Bonds and
coupons paid and discharged b37 it. The Council is hereby authorized
to compensate the Fiscal Agent for the services of the Fiscal Agent
rendered pursnant to the provisions of this I�,esolution.
The recitals of fact and all promises, covenants and agreements
herein and in the Bonds of said authorized issue contained shall be
taken as statements, promises, covenants anc� agreements of the City,
and the Fiscal Agent assumes no responsibility fox• the coirectness of
the sa.ine, and makes no representations as to the validity or sufficiency
of this Resolution or of the Bonds or coupons, and shall incnr no
responsibility in respect thereof, other than in connection with the
_ duties or obligations herein or in the Bonds assigned to or imposed
upon the Fiscal Agent. The Fiscal Agent shall be under no responsi-
bility or duty with respect to the issuance of the Bonds foi• valne.
The Fiscal Agent shall not be liable in connection with the performance
of its duties hereLlnder, except for its o�vn negligence or default.
Any Fiscal Agent appointed hereunder ma,y resign at any time.
Upon the irierber, consolidation or other reorganization of any Fiscal
Agent, the Council s��all a�ppoint a new Fisca�l Agent, which may be the
corporation resulting from such reorganiza.tion.
SECTio�� 17. Discharge ot Resol2ction. Whenever all of the Bonds
and all interest then accrued thereon shall have been fully paid and �
^ - • . 408
- • �
40
clischarged, the �greerrients in this Resolution contained sliall cease and
deterrnine and the City shall be under no further obligation to apply
the Revenues of the +�nterprise as hereiii required, or otherwise to do
� or perform any of the covenants, conditions or agreements in this Reso-
luti.on contained, and a.11 sums then held by the Fiscal Agent hereunder
� sllall fortli�vittii. be tx•ansferx•ed by it to the Treasurer.
Sr:criorr 18. Partial Invcclidit�. If any section, paragraph, sub-
division, sentence, clause or phrase of this Resolution shall for any
� reason be adjudged by any court of competent jurisdiction to be uncon-
stitutional, unenforceable or invalid, such judgment shall not affect the
validity of th.e remaining portions of this Resolution. The Council
liereby declares that it would have adopted this Resolution and each
and every other section, paragraph, subdivision, sentence, clause and
phrase hereof. and would have authorized the issuance of the Bonds
pursuant hereto iz•x•espective of the fact that any one or more sections,
paragraphs, subdivisions, sentences, clauses or phrases of this Resolu-
tion or tlie application thereof to a.ny person or c.ircumstance, nia,y- be
held to be unconstitutional, unenforceable or invalid.
S�cziorr 19. F f�'ective Date o f Resolution. This Resolution shall
take effect froxn and after its passage and approval.
PASSED AI�'D ADOPTED tI11S 24th day of July, 1959, by the following
vote:
A�Fs: Counci.lmen Fulkerth, Kelly, Simons & Fleharty
� NoEs: Councilmen None
��
ABSENT: COU21C�]Ill$Il Puryear (� ,�
�42n;�jo-r n��h{e�City �ed.,i,n,r�,�
i
Attest: s i JCc�li f ornia
�� � .
Cit,y Cler
l � ' •,
Px•esented to and ap��roved by nie this 24th�y/of ul-y„���9. �
�� /
„` ,t
.
- � !/--�..., �
�l1ay� r o f��h,e Ci�t;y o f` _,ec,c"v:n.i�,�
�Cctli f ornia �
RESOLUTION No. 2604 - Auth�rizin.p; &Directing the Sale
MOTION:' Made byCouncilman Fulkerth, seconded by .Councilman Simons
that Resolution No. 2604 be adopted, a resolution of the City Council of the
City of Redding authorizing and directing the sale of $650, 000 principal
amount of City of Redding 1959 Water Revenue Bonds, Series A. 3 ��
Voting was as follows:
Ayes: Councilmen - Fulkerth, Kelly, 5imons and Fleharty
Noes: Councilmen - None _
Absent: Councilmen - Puryear
Resolution No. 2604 on file in the office of the City Clerk
:S
�
.': .r�; O O rt `QL�)
409
RESOLUTION N0. ��
D�``
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
AUTHORIZING AND DIRECTING THE SALE OF $650,000 PRINCIPAL
AMOUNT OF CITY OF RIDDING 1959 WATER REVENUE BONDS,
SERIES A
WHEREAS, the City Council of the City of"Redding
has heretofore , by Resolution No . �'�1��� , adopted
July 20, 1959 (hereinafter called the "Resolution oP Issue") ,
duly authorized the issuance of $1,260,000 principal amount
of City of Redding 1959 Water Revenue Bonds and the issuance
of �i650,000 principal amount thereof as Seriea A Bonds, and
it is desirable that said 5eries A Bonds be offered for sale
at this time, sub�ect to the terms and conditions of the Notice
of Sale hereinafter ,set forth, _
NOW, THEREFORE, BE IT RESOI,VED by the City Council
of the City of Redding, as follows :
Section I . Tuesday, August 25, 1959� at the hour
of 8:00 P.M. (Cal . D.S .T. ) is hereby fixed as the time and
� the Council Chambers , City Ha.11, Redding, Shasta County,
California, is hereby fixed as the place , at which bids will
be received for tY� purchase of $650,000 principal amount of
City of Redding 1959 Water Revenue Bonds, Series A, sub- .
. �ject to the terms and conditions of the Notice of Sale herein- �
after set forth.
Section 2 . Messrs . Orrick, Dahlquist, Herrington &
Sutcliffe, bond counsel to the City, are hereby authorized to
cauae copies of the Resolution of Issue to be printed for
1
l
. ', � ; O � ' -
� 410
mailing by Stone & Youngberg, financial consultants to the
City, along with printed copies of said notice of sale and
printed copies of the Official Statement relating to the
Series A Bonds approved or �o be approved by the City Council ,
Section 3. The City Clerk is hereby authorized and
directed ta cause the notice of sale of said Seriea A Bonds
to be published once in the Redding Record-Searchli�ht, a news-
paper published and circulated in the City, and sueh notice
shall be in substantially the following form:
OFFICIAL NOTICE OF SALE
�650,000 CITY OF REDDING 1959 1�ATER REVENUE BONDS, SERIES A
NOTICE IS HEREBY GIVEN that sealed proposals will be
received by the City Council of the City of Redding, Shasta
County, California at the Council Chambers, City Hall, Redding,
California, on
TUESDAY, August 25, 1959
at 8:00 P.M. (Ca1 .D.S.T. ) for the purchase of $650,000 prin-
cipal amount of City of Redding 1959 Water Revenue Bonds ,
Series A, authorized to be issued under the provisions of a
reaolution of the City Council adopted July 20, 1959 (herein-
after called the "Resolution") . The Bonds are more particularly
described in the Resolution (which is incorporated herein by
reference) and a copy thereof will be furnished to any interested
bidder upon request . Said bonds are part of an authorized issue
in the aggre�ate principal amount of $1,260,000 authorized at a
special revenue bond election held in the City on May 5, 1959 •
The remaining �610,000 of Bonds of said authorized issue will not
be offered for sale prior to September 1, 1960, The Bonds hereby
offered for sale are generally described as follows :
ISSUE: $650,000 consisting of 650 bonds of the
denomination of $1,000 each, numbered A1 to
A650, both inclusive, designa�ed "City of Redding 1959 Water
• Revenue Bonds, Series A" .
DATE: The Series A Bonds are dated September l, 1959.
INTEREST RATE: Maximum not to exceed 6� per annzam, payable
annually the first year on September 1, lg6o,
and thereafter semi-annually on March l and September 1 in each
year. Bidders must specgfy the rate of interest which the Bonds
hereby offered for sale shall bear, Bidders will be permitted
2
T • �
0 0 - � �
411
to bid different rates of interest and to split rates irre-
spective of the maturities of said bonds , p�ovided that the
interest rate or rates stated in any bid must be in a multiple
of 1/8 or 1/20 of 1�, that no bond shall bear more than one rate ,
of interest or more than one coupon to evidence any interest
payment, and tha� the maximum differential between the lowest
and highest coupon rates named in any bid shall not exceed 1-1/2�.
MATURITIES: The Series A Bonds mature serially as follows :
Maturity Date
� Principal (September 1)
Amount Both years inclusive)
$ l0,000 1962
15,000 1g63-1970
20,000 . � 1971�=1976
25,000 �.977-�.979
3?5,000 1989
REDENlPT�ON: Bonds numbered Al to A325, both inclusive,
maturing by their terms on or prior to Sep-
tember 1, 1979, are not sub�ect to call and redemption prior to
their fixed maturity dates . Bonds numbered A326 t,.o A65o,. both
inclusive, maturing on September l, 1989, are subject to call
and redemption, at the option of the City, on September 1, 1970,
but not prior thereto, and on any interest payment date there-
after prior to maturity as a whole, or in part by lot, from
funds derived by the City from any source, including the Series A
Sinking Fund provided for in the Resolution, at the principal
amount thereof and accrized interest to date of redemption plus
a premium as set forth in Column 3 below, as follows :
Column 1 Column 2 Column 3 Column 1 Column 2 Column
o'�— Bond s
Redeemed And Redeemed And
On or Prior On or Prior
After to After to
September 1 Septemb.er l .Premium September 1 September 1 Premium
1970 �971 �+ � 1978 1979 2 �
1971 1972 3-3/4 � 1979 lg8o 1.-3/�+
1972 1973 3-1/2 � 1980 1g81 1-]./2 �
�973 197�+ 3-1/� � 1981 1g82 1-1/�+ �
197�+ 1975 3 � 1982 1983 1 �
7-975 1976 2-3/� � 1983 1g84 3/4 of 1�
197E 1977 2-1�2 � 1984 1985 1/2 of 1�
1977 197� 2-1�� � 1g85 a-986 1/� of 1�
. 1g86 Maturity none
PAYI�IT: Both principal and interest are payable in lawful
money of the United States of America at the San
Francisco Principal Office of Crocker-Anglo Nat3onal Bank,
San Francisco, California.
EXECUTION AND Coupon bonds will be issued by the City . Said
REGISTRATION: bonds will be executed by the rnanual signature
of at least one official authorized to execute
the Bonds . Said bonds are registrable only as to both pr3ncipal
and interest .
3
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412
PURPOSE: The Series A Bonds are authorized for the purpose �
of raising money for the acquisition, construction,
improvement and financing of improvements to the municipal water system
of the City .
SECURITY: The principal of and interest on the Series A
Bonds are payable exclusively from a special fund
provided for in the Resolution (designated the "1959 Water Revenue
Fund") . Bidders are referred to the Resolution and to the Official
' Statement for further particulars .
FISCAL A�ENT.: Crocker-Anglo National Bank has been appointed
Fiscal Agent for the payment of the principal
and interest of the Series A Bonds and the registration thereof
and will hold in trust the Interest Fund, Retirement Fund and
Reserve Fund, and all moneys paid to it out of revenues for the
payment of bond principal and interest and Reserve Fund purposes .
TAX EXEMPT STATUS: In the event that prior to the delivery of the
Series A Bonds the income received by private
holders from bonds of the same type and character shall be de-
clared to be taxable under any Federal, Income Tax Laws, either by
the terms of such laws or by ruling of a Federal Income Tax auth-
ority or official which is followed by the Internal Revenue Service
or by decision of any Federal Court, the successful bidder may, at
his option prior to the tender of the Series A Bonds by the City,
be relieved of his obligation under the contr°act to purchase the
Series A Bonds, and in such case the d�posit accompanying his bid
will be returned.
LEGAL OPINION: The legal opinion of Messrs . Orrick, Dahlquist,
Herrington & Sutcliffe, oP San Francisco, Cali-
fornia:, approving the validity of the Series A Bonds . will be furn-
. . ished without charge to the successful bidder. A copy of the legal
opinion, certified by the official .in whose office the original is
filed, will be printed on each bond without cha.rge to the successful
bidder.
TERMS OF SALE
Highest Bid: The 5eries A Bonds will be awarded to the highest
bidder, considering the interest rate or rates
specified in the bid and the premium offered, if any . The highest
bid will be determined by deducting the amount of the premium bid
(if any) from the total amount of interest which the City would be
required to pay from the date of the Series A Bonds to their re-
spective maturity dates at the coupon rate or rates specified in
the bid, and the award will be made on the basis of the lowest net
interest cost to the City . The lowest net interest cost shall be
� computed on a 360-day year basis . The purchaser must pay accrued
interest from the date of the Series A Bonds to the date of del3very .
The cost of printin� the Series A Bonds will be borne by the City . �
Right of The City reserves the right, in its discretion,
Rejection: to re�ect any and all bids and to waive any
irregularity or informality in ar�y bid . �
�
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413
Prompt Award: The City Council will take action awarding the
Series A Bonds or re�ecting all bids not later
than 24 hours after the expiration of the time herein prescribed
for the receipt of proposals, unless such time of award is waived
by the successful bidder.
Prompt Delivery: Delivery of the Series A Bonds will be made to
the successful bidder at the San Francisco
Principal Office of the Fiscal Agent, in San Francisco, California,
as soon as the Bonds can be prepared, which it is estimated wi11
be within 30 days from the date of sale , but not prior to the date
of the Series A Bonds .
Right of The successful bidder shall have the right, at
Cancellation: his option, to cancel the contract of purchase
of the Series A Bonds if the City shall fail
to execute the Series A Bonds and tender the same for delivery
within 60 days from the date of sale thereof, and in such event
the successful bidder shall be entitled to the return of the
deposit accompanying his bid.
Form of Bid : All bids must be for not less than all of the
Series A Bonds hereby offered for sale, and for
not less than the par value thereof and accrued interest to date
of delivery . Each bid, together with bidd�r' s check, must be
enclosed in a sealed envelope addressed to the City Couricil of
the City of Redding, Shasta County, Californ3a, and endorsed
"Proposal for City of Redding 1959 �ater Revenue Bonds, Series A" .
Bid Check: With each bid must be� submitted a certified_ check
or cashier� s eheck far �2 ,000 drawn on a bank or
trust company transact3ng business in .the State of California pay-
able to the order of the City to secure the City from any loss re-
sulting from the failure� of the bidder to cainply with the terms of
his bid . In addition bidder� are requested, but not required, to
supply an estimate of the total net interest cost to the City on
the basis of their respective bids, which shall be considered as
infarmative only and not _ bindin� on either the bidder or th� City .
Checks of the unsuccessful bidders will be returned by the City by
mail upon the award of the Bonds . No interest will be paid upon
the deposit macle by the successful bidder.
Official Statement:The City has prepared an official statement, a
copy of which. will be furnished upon request
addressed to Messrs . Stone & Youngberg, Russ Building, San Franc3sco
4, California, the City 's financial consultants .
�
5
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414
There is no con�roversy or litigation pendin� or
threatened concerning the validity of the Series A Bonds, and
the City will furnish to the auccessful bidder a no-litigation
certificate certifying to the foregoing aa of and at �the time of
the delivery of the Series A Bonds.
Dated: July 20, 1959
,`' ,
� �:��'` � a 1�-�—��.-��--� �
Z`�.�y C�er�t o e C ty o e� �-
State of Californ9.a
Section 4: This Re�olution �hall take effect from
. . and after its passage and approval .
PASSID AND ADOPTED this 2�th day of July, 1959, by the
following vote:
AYES• Councilmen Fulkerth, Kelly, Sim�ns and Fleharty
NOES: �I�one
_� ;
ABSENT: Puryear �,,,� ;/ �P
c � ��;� _ � :: _
9�
" ayor o the � o �ed ng
(/ State of Califor�ia
, � �� �. ' �.-zk.__,�
��--a-r�-C`- � �
y e r o he y o e ng
State of Callfarnia
Presented to and approved by me this 2oth day of
. �_
;
July, 1959.
' � _ .�_-_
�--l'7.. � - �f R� .�.�. „ .
' y0r-o e y o� e ng
(/ State oP Cal`i� nia
�
RESOLUTION No. 2605 - Approving Official Statement�
MOTION: Made by Councilman Simons, seconded by Councilman Kelly that 37�
Resolution No. 2605 be adopted, a resolution of the City Council of the City of
Redding appr�ving official statement relating to $650, 000 City of Redding 1959
Water Revenue Bonds, Series A.
Voting was as follows: �
Ayes: Councilmen - Fulkerth, Kelly, Simons and Fleharty
Noes: Councilmen - None
Absent: Councilmen - Puryear
Resolution No. 2605 on file in the offic� of the City Clerk.
�s, - _
_ _ �`+ _ , • ^ _.-
. � •
4�5
�ESOLUTION N0. �
��
w
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING OFFICIAL STATEMENT RELATII�IIG TO $650,000
CITY OF REDDING 1959 WATER REVENUE BONDS, SERIES A
WHEREAS, Stone & Youngberg, financial consultants
to the City of Redding, have submitted a form of official
statement of the City relating to $650,000 principal amount
. of City of Redding �959 Water Revenue Bonds, Series A,
autYiorized to be issued under the provisions of a R�solution
of the Council adopted July 20, 1959�
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF
THE CITY OF REDDING, as follows :
The said form of oPficial statement, a copy of which
is attached hereto, marked Exhibit A ancl made a part of this
resolution, is hereby approved and delivery of' said official
statement to prospective bidders for said bonds is hereby
authorized .
This resolution shall take effect from and after its
passage and approval . -
PASSED AND ADOPTED this zOth day of July , 1959,
by the following vote :
AYES: Councilmen Fulkerth, Kelly, Simons and Fleharty
NOES: None j-
/ '
ABSENT: Puryear � "�
/�! �--.
4
1 1 .d.�'Ca`.y' �` ,. -�tA..� /1
ayor m the City of edding
At t e s t: �/ ` �-`'�/
�
� � ������,
ity Clerk o the City of edding :
r.
416
TRANSFORMER - Informal Bid Approval � � �
Purchasing. Agent Stewart advised Item No. 8 of Bid Schedule No. 152--Dis-
tributiori Transformers, was found to be not adequate for the particular
proje�t �for'whieh it was purchased, and requested council authorization for
rejection of'the bid 'ori this particuIar item and permission to purchase. the
type tr�ansformer required. (Wrong information given on speeifications, )
MOTION: Made by Councilman Simons, seconded by Councilman Fulkerth . - ��`.�
that all bids on Item No. 8, Bid Schedule No. 15Z`be rejected because of .
+ error in the specificationss - � � `
, , .
MOTION: Made by Councilman Sim�ns, seconded by Councilman Fulkerth
to declare situation one'of`emergency, and authorize the purchase of the proper
transformer at the lowest informal bid possible.
Voting was as follows:
Ayes: Councilmen = Fulkerth, Kelly, Simons and Fleharty
Noes: Councilmen -'None ' ` `
Absent: Councilmen - Puryear �
, i
PUBLIC HEARING - Rezoning West & 7th Street Property
The hour of 7:30 having arrived, Mayor Fleharty opened the Public Hearing:
Rezoning request of M.rs. Bertha Thorpe: To Rezone from R-1
(Single Family Residential) to R-3 (Multiple Family Residential)
District; said property being that parcel of land adjoining Block
F and Block F of Schearer's Addition, bounded on the south by �
the northerly r/w of 7th Street, on the west by the easterly r/w �
of West Street �nd on the northeasterly side by the southern boundary
of the S�uthern Pacific right-of-way.
The following docurrients are on file in the office of the City Clerk:
Resolution of the Planning C'ommission incorporating recommendations f'y�
and 'findings iri the� matter of�the request of Mrs. Bertha E, Thorpe to
, rezone certain pr'operties from R.-1 to R-3, � � � � ,
Affi'davit of Publication��N,oti'ce of Public Hearing �
Affidavit of Mailing' Notice of Public Hearing to adjacent property owners
A petition requestirig' that City C�ouncil deny the request to. change from
R-1 to R-3 District property �wned by Mrs. Bertha E, Thorpe, was .
filed with the City Clerk. Petition signed by 41 residents of Lakeview
� Drive. -
Mr. Ed Waterhouse, 735 Lakeview Drive, said that Mrs. Thorpe had
stated she wanted to remodel her home to duplex, which w�uld entail
R-2 zoning only�, however he would like to hold the area to R-1, single
family residential. He further advised that because notice of public,
hearing of the Planning Commission had been sent to only those residents .
within 300 ft, , Lakeview Drive residents were not aware of the hearing, ' �
and' notice of hearing serit to Mr, A� Martin had been sent t� the wrong
address, so that he, too, was unawar°e of the proposed rezoning,
�'1� , _ Mrs, Bertha Thorpe, speaking from the floor, advised it was her intention
Ito tear d"own the warehouse n'ow�on�her prop'erty, perhaps build a duplex,
� perhaps a four-plex. "I would like to have the right�to do what I feel like"
� she stated.
/' .� , � _. . . . ,. , . .
Mr. �James C`arter, 656' W�es�t Str�eet, approved�the rezoning, stating he
w�uld like the removal of'the warehouse.' � ' � '
� MOTION: Made by`Councilman Simons, seconded by Councilman Fulkerth
s that rezaning'request of 'Mrs`.' B�rtha E. 'Thorp�e'be `referred back to the
Planning Commission for further report and recommendation, The Vote:
Unanimous Ayes.
417
RESOLUTION - P. G, & E. Substation Lease
MOTION: Made by Councilrnan Simons, seconded by Councilman Fulkerth �tliat
Resolution No. 2606 be adoptecl, a res"olution of the City Council of the City of
Redding authorizing the mayor to execute an agreement with the:Pe Go & Eo
Company for the lease of substation site located on portions of Lots 27 and 28
Lassen Vista Park, in the City of Redding for the p�riod ending August 31,
19b0s � r _
��� Voting was as follows:
Ayes: Councilmen = Fulkerth, Kelly, Simons and Fleharty
Noes: Councilmen = Norie ' �� � . . _
Absent; Councilmen - Puryear �
Resolution No, 2606 'on file in the office of the City,Clerke„
RESOLUTION - Memo of Agreerrient Gas Tax Allocation . . . _ . _ . .
MOTION: Made by Councilman Simons, seconded by Councilman Fulkerth that
Resolution No. Z607 be adoptecl, a resolution of the City Council of the City of
Redding adopting' budget and approving First Supplexnental Memorandum of
Agreement for Expenditure of Gas Tax Allocation for Major City Streets.
��/ Voting was as follows: '
� Ayes: Councilmen - Fulkertfi, Kelly, Simons and Fleharty .
�Noes:- CounciTinen "- 1Vone ` ,
_ Absent: Councilmen = Puryear ' ' � � ,
Resolution No. 2607 on file in the office of the City Clerk �
(Project No. 34 South Market Street, State highway route 3, at Parkview
_ Avenue and at Angelo Avenue, Channelize and traffic signals. ) i
RE LEASE OF CLUB HOUSE - Redding'Jr. Chamber of Commerce
�'S `� City Attorney Ness requested deferrment of this matter.
RESOLUTION - Easement Agreement with S� P. Company
MOTION: Made by Counc'iTman Simons, seconded by C.ouncilman Kelly that
Resolution No. 2f308 be aclop'ted, a resolution of the City Council of the City
of Redding accepting a water line� easement and authorizing the mayor and city
j �y clerk to execute the easernent agreement with the Southe.rn Pacific Company and
authorizing the payment of $50 as compensation therefor.
Voting was as �follows:
Ayes: Councilmen - Fulkerth, Kelly, Simons and Fleharty
Noes: Councilmen - None �
Absent: Coumcilmen -'�Puryear '
Resolution No. 2608 on file in the office of the City Clerk.
CIVIL DEFEN5E � ' ' � ' �
Mr, E. C; Setzer, Regional Coordinator of State of California,Disaster Office,
-. Region 3, spoke on the austerity program of Civil Defense on the State level due
to curtailment of appropriations, however ad�vised that the Chico office would
handle all work forme'rly done through the Redding office; he further urged the
� � � organization of the Civil Defense program with department heads of government
forming the nucleus of the organization. that City could function during any
emergency when and if it arose.
It was requested by Mayor Fleliarty that written proposal for the program be
submitted by Mr. Setzer. . �
� �_,
RE LEASE - Redding Municipal Airport Property
City Attorney Ness advised the present lease of the Boy Sc�uts of America for
' � � property at the Redding Municipal Airport was about to expire, and the Shasta
County Peace Officers Association had requested a new lease be prepared in their
name for 100 acres of land for a ten year term, with option for ten additional years,
Boy Scouts of America, to'have the same privileges as they now have.
418
Mr. VJesley Alexande�, representing the Peace Officers Association spoke
on the proposed program, stating it was their intention to construct a residence,
swimming po�l, fence the prop�rty, have a rifle and pistol range, a skeet
range and a full-�ime caretaker�for the property.
Actiori deferred, pending the working out of some of the details of the lease,
and the ac�tual acreage that would be necessary.
CENTRAL VALLEY PROJECT - Trinity Partnership
Mayor Fleharty presented the following�Statement:
Before the Subcommittee on Irrigation and Reclamation of the
Comrriittee on Interior and Insular Affairs on Hz R. 5499 - by
Ge�rge C. Fleharty, Mayor, City of Redding, California, July
1959.
�
, This statement is submitted on behalf of the City of Redding
, for your consideration in opposi�ion to I-i, R. 5499. Redding, � �
California, is located immediately adja.cent to Shasta and Keswick
Dams, two of the principal features of the Central Valley Project,
and some 30 miles from the Trinity unit of that project. For �
this reason, among others, we are vitally interested in all aspects
of the. C. V. P. Our system is a pioneer in the municipal distribution
of electric p�wer in Northern California. Our operation, along with
many cities in i.alifornia, has been highly sizccessful over the years.
I appeared before this committee in the last session of the ,..�=3�
Congress and stated in some detail th� reasons for our opposition
to the proposed Trinity partnership -under which PG&E would be
permitted to build the power plants. It would seem to serve no
useful purpose for me to discuss the many aspects of this problem �
again. I should merely like tD give you one important consideration.
At the present time there are only two possible sources from which
,Redding and. other municipalities can buy power whol-esale. One is �
the CVP. The other is PG&E. The present supply of CVP is al-
ready committed. If Trinity power is now turned over to. PG&E, �
we will be required to deal exclusively with the Company, This places-
us in an extremely hazardous position. We believe that the presence •
of a modest block of Federal power in California has a most salutary
, effect on the private utilities. Construction of the Trinity power
� features by the Fecleral Government will add between 250, 000 and �
330, 000 kilowatts of Federal power to the CVP. We believe this �
would be in the public interest.
MOTION: Made by Councilman Simons, seconded by Councilman Fulkerth that
Mayor Fleharty be authorized to .forward Statement to the proper committee in
Washington, D, C. , and this':Statement be made a part of the ininutes. The
Vote: Unanimous Ayes, ,
M.EETING WITH ELECTRICAL DEPARTMENT REPRESENTATIVES
A meetin� was scheduled for W�dnesday noon for discussion of wages and
other phases of �he electrical department; three,representatives of tHe electrical
department, City administrative officers and councilmen will be in attendance. �� �
�.
There being no further business, ori m�tion of Countilman Simons, seconded by
Councilman Kelly, the meeting was adjourned. 1
�� 1
APPROVE�:
�L� . ��1 .
. ' ' MaY�.r
Atte st:
�i � ' 1��''�L'-�"� -
Ci y Clerk
419
Special Meeting, City Council �
Council Chambers, City Hall
Redding, Calif�rnia
July 29, 1959 7:00 P..M.
The Special Meeting of the City Council of the City of Redding was called by
Mayor Fleharty in accordance with Section 54956 of the Government Code,
State of California, for the purpose of considering all matters in connection
- with adoption of the 1959-60 budget for the City, and the employment and
promotion practices and benefits of the City.
The meeting was called to order by Mayor Fleharty with the following
councilmen present: Fulkerth, Puryear, Simons and Fleharty, Absent:
Councilman Kelly..
Also present were Citty Mana�e-r Cowden, City Attorney Ness, Director of
Finance Courtney; Assistant to`the ��ity Manager Preaseau, City Engineer vVard,
Sup�t. of the Electric Department Dais, SupTt. of the Water Department Gullixson,
President of the City Em,�loyees� Asst�i, McLeod, Dall Graham, representing the
Electric Department employees, and employees of other departments in the City
of Redding. .
City Manager Cowden submitted to all councilxnen a memo dated.Ju.�y 27, 1959
covering the 1959 Salary Survey of 23, Cities, with chart of salary comparison
of cities and summary analysis sheet, salary survey dated July 1959. The
memo notes the length of time necessary for an employee to advance from his
A step to his E step in classification averages approximately three and one-half
years in the majority of cities surveyed, against a weighted average of five
years under our City's current salary plan.
Mr. Dall Graham, spokesman for the Electric Department, reviewed the four
main points under discussion by that department: .
1. Apprenticeship (7 years for City lineman, with State standard a 3 yr.
period) .
2, Method of advancement
3. Wages ,
4. Line truck driver - classification
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These items were discussed by councilmen, with.the following recommendations:
1. Apprenticeship be established at 3 1/2 years .
2. Elimination of one job classification, that of Lineman 1, with advancement
as needed within limits of department budget and at discretion of
electrical superintendent
3. Proposed changes in salary range of job classifications were discussed
in detail, with Mayor Fleharty advising that councilmen were 100°�0
,in favor of a just and fair wage. .
4. Create classification of "Line Truck Driver - Elec�rical Department"
at a satisfactory wage schedule.
Mayor Fleharty advised these recommendations would be submitted in completed
form by FridayTs adjourned meeting, for adoption before August lst.
It �'as the recommendation of C�uncilman Puryear, with concurrence by Mayor
Fleharty that all empl�yees of the City. of Redding be apprized of the salary,
vacation and sick leave plan, the group insurance plan and the pension plan, as
employees often failed to take into consideration other gratuities r eceived from
the City, and it would be a good policy for each man to know just what he is
getting from the City.
Mr. Hector McLeod, President of the Employees� Ass�n. was advised the previous
discussion by the council involved the Electric Department only, and no commit-
ment was made as far as any other department was concerned.
420
' Mayor Fleharty scheduled a meeting at the Grande Cafe for Thursday
morning, 7:30 A�M. , July 30, with councilmen for a continued study of
the salary schedule for city emplo:yees. It was his further suggestion that
informal meetings ,be held once a year with city employees and councilmen
for a general get-together with discussion and view of salaries and working
conditions. It was suggested also that when the City Eznployees' Association
had recommendations for review by council, these recommzndations be sub-
mitted in writing. .
Motion made by Councilman Simons, seconded by Councilman Puryear the
meeting be adjourned.until 12:00 noon, Eriday, July 3 1. Motion carried.
, . . APPROVED;
� ayor � ,
. . , � .
Attest: , . .
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City C erk
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