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HomeMy WebLinkAboutCC Reso No 1965-1148 CITY OF ELSINORE RESOLUTION NO. 11Lt8 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ELSINORE, CALIFORNIA AUTHORIZING THE ISSUANCE OF $400,000 WATER REVENUE BONDS OF SAID CITY AND PROVIDING THE TERMS AND CONDITIONS FOR THE ISSUANCE OF SAID BONDS. WHEREAS, pursuant to Resolution No. 1089 of the City Council of the City of Elsinore, a special municipal election was held in said City on February 26, 1963, for the purpose of submitting to the qualified voters of said City the following proposition of issuing-water revenue bonds pursuant to the Revenue Bond Law of 1941 (Chapter 6, Part 1, Division 2, Title 5 of the Government Code of the State of California), to wit: PROPOSITION: Shall the City of Elsinore issue water revenue bonds in the principal amount of $400,000 for the acquisition, construction "and financing of extensions of, additions to and improvements of the water system of the City of Elsinore, including the construction of separate facilities to store, convey and supply mineral water, the construction of reservoirs, pumping plants, water transmis~ion mains, pipelines and appurtenances and appurtenant works, wells, the acquisition of all water rights, lands, rights of way, easements and other property necessary for any of the foregoing, and including all engineering, inspection, legal and fiscal agent's fees, costs .&1 the bond eiection and of the issuanceQ;f said revenue bonds, bond reserve funds and working capital and bond interest to accrue during the construction.,period and for a period of not to exceed twelve months after completion of construc- tion, and other costs and estimated costs incidental to and connected with such acquisition, construction and financing? and WHEREAS, said proposition was approve~ by the votes of more than a majority of all the voters voting on said proposition at said special election, and this City Council is now authorized to issue said bonds as provided in said Revenue Bond Law of 1941; and WHEREAS~ this City Council deems it necessary to issue and sell all of said $400,000 bonds authorized at said election; NOW, THEREFORE, the City Council of the City of Elsinore, California, DOES HEREBY RESOLVE, DETERMINE AND ORDER as follows: (a) "City" means the City of Elsinore, California. (b) "City Council" or "Council" means the City Council of said City. (c) "Revenue Bond Law" means The Revenue Bond Law of 1941 as cited in the recitals hereof. (d) "The bonds" or "said bonds" means the bonds authorized by this resolution. (e) "Enterprise" means the enterprise defined in said Resolution No. 1089, calling said election, as follows: "The entire water system of the City of Elsinore including all improvements and extensions later constructed or acquired." (f) "Gross revenues of the enterprise" means all revenues (as defined in Section 54315 of the Government Code, which include all charges received for, and all other income and receipts derived by the City from the oper- ation of the enterprise or arising from the enterprise) received by the City from the services, facilities and water of the enterprise. (g) "Necessary and reasonable maintenance and opera- tion costs of the enterprise" includes the reasonable expenses of management, repair and other expenses necessary 2. to maintain and preserve the enterprise in good repair and working order. (h) "Net revenues of the enterprise" means the amount of the gross revenues of the enterprise remaining after payment therefrom of the necessary and reasonable maintenance and operation costs of the enterprise. (i) "Maximum amount of annual debt service" means the maximum amount required to be paid in any fiscal year on account of interest and principal coming due on said bonds. (j) "Fiscal year" means the year period beginning on July 1st and ending on the next following June 30th. (k) "Parity Bonds" means revenue bonds, revenue notes or other similar evidences of indebtedness which may be authorized and issued for the acquisition, construction and financing of extensions of, additions to, and improvements of the enterprise, payable out of the revenues derived from the enterprise and which, as provided in this resolution, rank on a parity with the bonds. Section 2. Amount, Issuance, Purpose and Nature of Bonds. That under and pursuant to said Revenue Bond Law revenue bonds of the City in the amount of $400,000 shall be issued for the purposes stated in the recitals hereof. Said revenue bonds shall be and are special obligations of the City and shall be and are secured by a pledge of and lien upon, and shall be and are a charge upon, and shall be and are payable as to the principal thereof and interest thereon and any premiums upon the redemption of any thereof, solely from the gross revenues of the enterprise, such gross revenues being hereby pledged, charged and assigned for the security of the bonds. Section 3. Equality of Bonds, Pled~e of Revenues. Pursuant to the Revenue Bond Law of 1941 and this resolution, bonds 3. of this issue shall be equally secured by a pledge, charge and lien upon the gross revenues of the enterprise without priority for number, date of bonds, date of sale, date of execution, or date of delivery, and the payment of the interest on and principal of said bonds and any premiums upon the redemption of any thereof shall be and are secured by an exclusive pledge, charge and lien upon all of the gross revenues of the enterprise, and all of the gross revenues of the enterprise (including revenues of improvements and extensions later constructed or acquired and revenues of existing systems, plants, works or undertakings to be acquired, improved or extended or for the acquisition, improvement or extension of which said bonds are to be issued) are hereby pledged, charged and assigned for the security of said bonds, and such gross revenues and any interest earned on the revenues shall constitute a trust fund for the security and payment of the interest on and principal of said bonds, and so long as any of the bonds or interest thereon are unpaid said gross revenues and interest thereon shall not be used for any other purpose, except as permitted by this resolution, and shall be held in trust for the benefit of the bondholders and shall be applied pursuant to this resolution, or to this resolution as modified pursuant to the provisions hereof. Nothing in this resolution shall preclude: (a) the redemption prior to maturity, at the times and in the manner stated in this resolution, and payment of bonds of this issue, including premiums thereon if any be payable, from proceeds of refunding bonds issued under said Revenue Bond Law of 1941 as the same now exists or as hereafter amended, or under the charter of said City (in the event that the City should adopt a charter), or under any other law of the State of California; (b) the issuance, subject to the limitations in the covenants in Section 21 hereof, of additional indebtedness evidenced by revenue bonds, revenue notes or other similar evidences of indebtedness payable out of the 4. revenues derived from the enterprise and ranking on a parity with the bonds of this issue. Section 4. No General City Liability. The general fund of the City is not liable for the payment of the bonds or their interest, nor is the credit or taxing power of the City pledged for the payment of the bonds or their interest. The holder of the bonds or coupons shall not compel the exercise of the taxing power by the City or the forfeiture of any of its property. The principal of and interest on the bonds and any premiums upon the redemption of any thereof are not a debt of the City nor a legal or equitable pledge, charge, lien, or encumbrance, upon any of its property, or upon any of its income, receipts, or revenues, except the gross revenues of the enterprise which are, under the terms of this resolution and said Revenue Bond Law, pledged to the payment of said bonds and interest. Section 5. Description of Bonds. Said bonds shall be in the principal sum of $400,000, shall be 400 in number, numbered 1 to 400, inclusive, and shall be of the denomination of $1,000 each. Said bonds shall be designated CITY OF ELSINORE, 1964 WATER REVENUE BONDS, shall be dated May 1, 1964, and shall be payable in consecutive numerical order on May 1 in each year of maturity in the amounts for each of the several years as follows: Years Inclusive Principal Amount 1966 - 1967 1968 - 1978 1979 - 1987 1988 - 1993 1994 I 5,000 ...10 ,000 15,000 20,000 25,000 Section 6. Interest. Said bonds shall bear interest at a rate or rates to be hereafter fixed by resolution or resolutions, but not to exceed six per cent (6%) per annum, payable annually for the first year and semi-annually thereafter on the first days of 5. November and May of each year. Each bond shall bear interest until the principal sum thereof has been paid, provided, however, that if at the maturity date of any bond, or if the same is redeemable prior to maturity and has been duly called for redemption, funds are available for the payment or redemption thereof in full accordance with the terms of this resolution, said bond shall then cease to bear interest. Said bonds and the interest thereon shall be payable in lawful money of the United States of America at the office of the Security First National Bank in the City of Los Angeles, California, or, at the option of the holder, at the paying agencies of the City of Elsinore in the Borough of Manhattan, City and State of New York. Section 7. Execution of Bonds. The Mayor and the City Treasurer of said City are hereby authorized and directed to sign all of said bonds and the City Clerk of said City is hereby authorized and directed to countersign said bonds and to affix thereto the corporate seal of said City, and the City Treasurer of said City is hereby authorized and directed to sign the interest coupons of said bonds by his printed, lithographed or engraved facsimile signature. Section a. Re~istration. Said bonds may be registered as to principal only and any registered bond may.-be discharged from registration in the manner and with the effect set forth in the provisions for registration contained in the form of bond set forth in Section 26 hereof. Section 9. Redemption of Bonds. The bonds maturing on or prior to May 1, 1974, shall not be subject to call or redemption prior to maturity. The bonds maturing on or after May 1, 1975, are subject to call and redemption, at the option of the City, on May 1, 1974, or on any interest payment date thereafter prior to maturity, at a redemption price equal to the principal amount thereof and accrued interest plus a premium equal to 1/4% of said 6. principal amount for each year or fraction of a year from the redemption date to the maturity date of the bond, provided, that in no event shall such premium exceed 4% of such principal amount. All or any of the bonds subject to call may be called for redemption at anyone time. If less than all of the bonds are redeemed at any one time, such bonds shall be redeemed only in inverse order of maturity and number. The interest payment date on which bonds are to be presented for redemption is hereinafter sometimes called the "redemption date." Section 10. Notice of Redemption. Notice of the intended redemption shall be published by one insertion in a news- paper of general circulation in the County of Riverside, California, and in a financial newspaper or journal of national circulation published in the City of New York, New York, said publication to be at least 30 days but not more than 60 days prior to the redemption date. The notice of redemption shall (a) state the redemption date; (b) state the redemption price; (c) state the numbers and date of maturity of the bonds to be redeemed, provided, however, that when- ever any call includes all of the outstanding bonds subject to call the numbers of the bonds need not be stated; (d) require that such bonds be surrendered with all interest coupons maturing subsequent to the redemption date at the office of the Security First National Bank in the City of Los Angeles, California, or, at the option of the holder, at the paying agencies of the City of Elsinore in the Borough of Manhattan, City and State of New York; (e) require that bonds which at the time of call are registered so as to be payable otherwise than to bearer shall be accompanied by appropriate instru- ments of assignment duly executed in blank; and (f) give notice that further interest on such bonds will not accrue after the desig- nated redemption date. The Treasurer shall, on or before the date of publication 7. of said notice of redemption, mail a similar notice, postage pre- paid to any person, firm or corporation that originally purchased bonds from the city. If any of the bonds designated for redemption shall be registered so as to be payable otherwise than to bearer, the Treasurer shall, on or before the date of publication of said notice of redemption, mail a similar notice, postage prepaid, to the respective registered owners thereof at the addresses appearing on the registry books. The actual receipt by the holder of any bond (hereinafter referred to as "bondholder") of notice of such redemption shall not be a condition precedent to redemption, and failure to receive such notice shall not affect the validity of the proceedings for the redemption of such bonds or the cessation of interest on the date fixed for redemption. The notice or notices required by this section shall be given by the Treasurer. A certificate by the Treasurer that notice of call and redemption has been given to the original purchasers and to holders of registered bonds as herein provided shall be conclusive as against all parties, and no bond- holder whose bond or registered bond is called for redemption may object thereto or object to the cessation of interest on the redemption date fixed by any claim or showing that he failed to actually receive such notice of call and redemption. Section 11. Redemption Fund. Prior to the time the Council determines to call and redeem any of said bonds there shall be established a redemption fund to be described or known as CITY OF ELSINORE, 1964 WATER REVENUE BONDS, REDEMPTION FUND (herein sometimes referred to as "Redemption Fundn), and prior to the publi- cation of the notice of a redemption there must be set aside in said Redemption Fund moneys available for the purpose and sufficient to redeem, at the premium payable as in this resolution provided, the 8. bonds designated in such notice for redemption. Said moneys must be set aside in said fund solely for that purpose and shall be applied on or after the redemption date to payment (principal and premium) for the bonds to be redeemed upon presentation and surrender of such bonds (except as to bonds registered as to prin- cipal) and all interest coupons maturing after the redemption date, and shall be used only for that purpose. Any interest coupon due on or prior to the redemption date shall be paid from the 1964 Water Revenue Bond and Interest Sinking Fund provided herein upon pre- sentation and surrender thereof. Each bond presented must have attached thereto or presented therewith all interest coupons maturing after the redemption date. If after all of the bonds have been redeemed and cancelled or paid and cancelled there are moneys remaining in said Redemption Fund, said moneys shall be transferred to the 1964 Water Revenue Fund; provided, however, that if said moneys are part of the proceeds of refunding bonds said moneys shall be transferred to the fund created for the payment of principal of and interest on such refunding bonds. Section 12. Effect of the Notice of Redemption. When notice of redemption has been given, substantially as provided herein, and when the amount necessary for the redemption of the bonds called for redemption (principal and premium) is set aside for that purpose in the Redemption Fund, the bonds designated for redemption shall become due and payable on the date fixed for redemption thereof, and, upon presentation and surrender of said bonds (except as to bonds registered as to principal) and all interest coupons maturing after the redemption date, at the place specified in the notice of redemption, and, if any of said bonds be registered, upon the appropriate assignment thereof in blank, such . bonds shall be redeemed/and paid at said redemption price out of the I Redemption Fund, and no interest will accrue on such bonds called for redemption or on any interest coupons thereof after the redemption 9. date specified in such notice, and the holders of said bonds so called for redemption after such redemption date shall look for the payment of such bonds and the premium thereon only to said Redemption Fund. All bonds redeemed and all interest coupons thereof shall be cancelled forthwith by the Treasurer and shall not be reissued. All interest coupons pertaining to any redeemed bonds " which coupons have matured on or prior to the time fixed for redemp- tion, shall continue to be payable to the respective holders thereof but without interest thereon. Section 13. Funds. There are hereby created the following funds: 1. City of Elsinore, 1964 Water Revenue Bonds Construction Fund (herein sometimes called "Construction Fund"); 2. City of Elsinore, 1964 Water Revenue Fund (herein sometimes called "1964 Water Revenue Fund"); 3. City of Elsinore, 1964 Water Maintenance and Operation Fund (herein sometimes called "1964 Water Maintenance and Operation Fundlt); 4. City of Elsinore, 1964 Water Revenue Bond and Interest Sinking Fund (herein sometimes called "1964 Water Revenue Bond and Interest Sinking Fund"); 5. City of Elsinore, 1964 Water Surplus Revenue Fund (herein sometimes called "1964 Water Surplus Revenue Fund") . Said funds are created under and pursuant to said Revenue Bond Law and shall be applied pursuant to this resolution and under and pursuant to said Revenue Bond Law. 10. Section 14. Construction Fund. For the purpose of insuring the application of the proceeds received from the sale of the bonds to the purpose set forth in the recitals hereof, for which said bonds are to be issued, the proceeds of the sale of the bonds shall be placed ~s fallows: 1. Accrued interest, if any, in the 1964 Water Revenue Bond and Interest Sinking Fund; 2. The balance in the Construction Fund. The money set aside in the Construction Fund shall remain therein until from time to time expended for the objects and purposes for which the bonds were issued, provided, however, that money in the Construction Fund may be used to pay all engineering, inspection and legal fees, costs of the issuance of said revenue bonds and other costs and expenses incidental to and connected with the said acquisition, construction and financing for which said bonds were issued. Moneys in the Construction Fund not needed for a succeeding 90 day period may be invested in any authorized negotiable direct obligation, or obligations, the principal of and interest on which are guaranteed by, the United States Government, which shall mature not later than eighteen months after the date of such investment and which shall be subject to redemption at any time by the City. If any sum remains in said fund after the full accomplishment of the objects and purposes for which the bonds were issued, it shall be applied to the payment of the principal and interest of said bonds. Section 15. 1964 Water Revenue Fund. All of the gross revenues of the enterprise shall be paid into the 1964 Water Revenue Fund, and as long as any of the bonds or any parity bonds are out- standing, payments from said fund shall be made only as provided by law, this resolution, and the resolution for the issuance or parity bonds, if any. 11. Section 16. 1964 Water Revenue Bond and Interest Sinking Fund. Upon delivery of the bonds to the purchasers thereof, any accrued interest paid by said purchasers shall be placed in the 1964 Water Revenue Bond and Interest Sinking Fund. So long as any of the bonds are outstanding, on the tenth day of each calendar month, there shall be set aside and transferred from the 1964 Water Revenue Fund to the 1964 Water Revenue Bond and Interest Sinking Fund at least one-sixth (1/6th) of the interest which will become due and payable on outstanding bonds and any parity bonds within the next ensuing six (6) months, and also at least one-twelfth (1/12th) of the principal amount of the bonds and any parity bonds which will mature and be payable within the next ensuing twelve (12) months, so that at least the full amount required to pay, as it becomes due, the interest on such bonds and any maturity or installment of principal of such bonds shall be set aside in the 1964 Water Revenue Bond and Interest Sinking Fund at least twenty (20) days prior to the date the installment of interest and/or principal becomes due. No such transfer need be made prior to the actual delivery of the bonds to the purchaser thereof; provided, however, that if the bonds are issued and delivered subsequent to their date there shall be set aside, transferred to and placed in the 1964 Water Revenue Bond and Interest Sinking Fund on the tenth day of the calendar month subsequent to the date of delivery sums at least sufficient, together with other transfers of the same amount made on the tenth day of each calendar month thereafter, to provide in said 1964 Water Revenue Bond and Interest Sinking Fund twenty (20) days prior to the payment date of the first installment of interest and/or principal on such bonds the full amount of such installment of interest and/or principal. Any amount required to be set aside, transferred to and placed in the 1964 Water Revenue Bond and Interest Sinking Fund may be prepaid in whole or in part by being earlier set aside, 12. transferred to and placed in the 1964 Water Revenue Bond and Interest Sinking Fund, and in that event the monthly transfer which has been so prepaid need not be made at the time appointed therefor. In any event at least twenty (20) days prior to the due date of any installment of interest and/or principal on such bonds all sums required for the payment thereof must be in the 1964 Water Revenue Bond and Interest Sinking Fund. Money in the 1964 Water Revenue Bond and Interest Sinking Fund may be temporarily invested in any authorized direct obligation · or obligations the principal of and interest on which are guaranteed by the United States Government, provided that the maturity or maturities thereof shall not be later than the date or dates on which money must be available in the 1964 Water Revenue Bond and Interest Sinking Fund. The interest coupons shall recite that they are payable from the 1964 Water Revenue Fund, but said coupons notwithstanding such recital shall be paid from the 1964 Water Revenue Bond and Interest Sinking Fund which is derived from the 1964 Water Revenue Fund. On or before the tenth day of each calendar month, com- mencing on April 10, 1965, after the transfers hereinbefore provided have been made, there shall be transferred from the 1964 Water Revenue Fund and placed in the 1964 Water Revenue Bond and Interest Sinking Fund an amount equal to twenty per cent (20%) of the deposits required for monthly installments of principal and interest payments for each corresponding month until such time as the funds and/or investments in the 1964 Water Revenue Bond and Interest Sinking Fund shall aggregate a debt service reserve of $50,000, and thereafter, whenever the reserve of $50,000 is drawn upon, such reserve shall be restored to the amount required in this section by monthly transfers from the 1964 Water Revenue Fund as herein pro- vided, except to the extent such reserve may be restored by 13. transfers from the 1964 Water Surplus Revenue Fund. If after all of the bonds and any parity bonds have been redeemed and cancelled or paid and cancelled there are any moneys remaining in the 1964 Water Revenue Bond and Interest Sinking Fund said money shall be transferred to the 1964 Water Revenue Fund; provided, however, that if said moneys are part of the proceeds of refunding bonds said moneys shall be transferred to the fund or account created for the payment of the principal of such refunding bonds. Section 17. 1964 Water Maintenance and Operation Fund. On or before the tenth day of each calendar month and after the transfers have been made as hereinbefore provided, monthly sums sufficient for the necessary and reasonable maintenance and opera- tion costs of the enterprise shall be transferred from the 1964 Water Revenue Fund and deposited to the credit of the 1964 Water Maintenance and Operation Fund. Section 18. 1964 Water Surplus Revenue Fund. After all transfers from the 1964 Water Revenue Fund hereinbefore provided have been made, on or before the tenth day of each calendar month, the remaining moneys in the 1964 Water Revenue Fund shall be trans- ferred to the 1964 Water Surplus Revenue Fund. Moneys in the 1964 Water Surplus Revenue Fund may be withdrawn and used for any or all of the following purposes: 1. To pay any reasonable and necessary maintenance and operation costs of the enterprise for the current fiscal year for which no adequate budget amount was provided by the City. 2. To redeem or acquire for cancellation outstanding 1964 Water Revenue Bonds in inverse numerical and maturity order, at not to exceed the applicable maximum call price. 14. 3. To meet debt service requirements on indebtedness created for enterprise costs of acquisition, construction, betterment and/or extension purposes. 4. To pay the cost of unusual or extraordinary main- tenance, repairs, replacements, extensions or improvements to the enterprise which will either enhance its revenue-producing capacity or provide a higher degree of service. 5. To maintain the required debt service reserve of $50,000 by transferring to the 1964 Water Revenue Bond and Interest Sinking Fund such amounts as may be necessary to eliminate any deficiency in such reserve. 6. For any other lawful purpose. Section 19. Deposit of Moneys. All moneys held by the Treasurer shall be on deposit in a bank which is a member of the Federal Deposit Insurance Corporation in three separate deposits for each of the funds designated in Sections 14, 15 and 16, and each deposit shall be secured at all times by such obligations and to the extent required by law, except to the extent that such moneys are invested as hereinbefore provided. Said moneys may be deposited in a bank in a savings or commercial account, inactive or time deposit, or any other form of account that will be appro- priate to carry out the provisions in this or any subsequent resolution. The Treasurer shall make all transfers from the 1964 Water Revenue Fund to the other funds as required by this resolu- tion. Moneys to be set aside in the 1964 Water Revenue Fund as required in Sections 17 and 18 hereof shall be set aside and designated by appropriate entries on the books of records and accounts of the enterprise. Section 20. Warranty. The City shall preserve and protect the security of the bonds and the rights of the bondholders 15. and warrant and defend their rights against all claims and demands of all persons. Section 21. Covenants. So long as any of the bonds issued hereunder are outstanding and unpaid, or so long as pro- vision for the full payment and discharge thereof at maturity or upon redemption thereof prior to maturity through the setting apart in the 1964 Water Revenue Bond and Interest Sinking Fund or in the Redemption Fund to insure the payment or redemption thereof (as the case may be) of money sufficient for that purpose has not been made, the City makes the following covenants with the bondholders under the provisions of the Revenue Bond Law of 1941 (to be performed by the City or its proper officers, agents or employees) which are necessary, convenient and desirable to secure the bonds and tend to make them more marketable; provided, however, that said covenants do not require the City to expend any funds other than the revenues received or receivable from the enterprise. Covenant 1. Punctual Payment. The City covenants that it will duly and punctually payor cause to be paid the principal of and interest on every bond issued hereunder, together with the premium thereon, if any be payable on the date, at the place and in the manner mentioned in the bonds and coupons and in accordance with this resolution, and that the payments into the funds will be made, all in strict conformity with the terms of said bonds and of this resolution, and that it will faithfully observe and perform all of the conditions, covenants and requirements of this resolution and all resolutions supplemental hereto and of the bonds issued here- under, and that time of such payment and performance is of the essence of the City's contract with the bondholders. Covenant 2. Discharge Claims. The City covenants that in order to fully preserve and protect the priority and security of the bonds the City shall pay from the 1964 Water Revenue Fund and 16. discharge all lawful claims for labor, materials and supplies furnished for or in connection with the enterprise which if unpaid, may become a lien or charge upon the revenues prior or superior to the lien of the bonds and impair the security of the bonds. The City shall also pay from the 1964 Water Revenue Fund all taxes and assessments or other governmental charges lawfully levied or assessed upon or in respect of the enterprise or upon any part thereof or upon any of the revenues therefrom. Covenant 3. Commence Acquisition. As soon as funds are available therefor, the City will commence the accomplishment of the purposes for which the bonds are issued and will continue the same to completion with all practical dispatch and in an economical manner. Covenant 4. Operate Enterprise in Efficient and Economical Manner. The City covenants and agrees to operate the enterprise in an efficient and economical manner and to operate, maintain>and preserve the enterprise in good repair and working order. Covenant 5. Against Sale. The City covenants that the enterprise shall not be mortgaged or otherwise encumbered, sold, leased, pledged, any charge placed thereon, or disposed of as a whole or substantially as a whole unless such sale or other dispo- sition be so arranged as to provide for a continuance of payments into the 1964 Water Revenue Fund sufficient in amount to permit payment therefrom of the principal of and interest on and premiums, if any, due upon the redemption thereof, of the bonds, payment of which is required to be made out of the revenues of the enterprise. The revenues from the enterprise or any other funds pledged or otherwise made available to secure payment of the principal of and interest on the bonds shall not be mortgaged, encumbered, sold, leased, pledged, any charges placed thereon, or disposed of or used 17. except as authorized by the terms of this resolution. The City further covenants that it will not enter into any agreement which impairs the operation of the enterprise or any part of it necessary to secure adequate revenues to pay the principal and interest of the bonds or which otherwise would impair the rights of the bond- holders with respect to the revenues or the operation of the enter- prise. If any substantial part of the enterprise is sold the payment therefor shall be placed in the appropriate fund, and shall be used to payor call outstanding bonds in the manner provided in this resolution. Covenant 6. Insurance. The City covenants that it shall at all times maintain with responsible insurers all such insurance on the enterprise as is customarily maintained with respect to works and properties of like character against accident to, loss of or damage to such works or properties, including fire and extended coverage insurance on the insurable portion of the enterprise in amounts sufficient to provide for not less than full recovery when- ever a loss from perils insured against does not exceed 80 per cent (80%) of the full insurable value of the damaged portion of the enterprise so insured. If any useful part of the enterprise shall be damaged or destroyed, such part shall be restored to use. The money collected from insurance against accident to or destruction of the enterprise shall be used for repairing or rebuilding the damaged or destroyed enterprise, and to the extent not so applied, shall be paid into the 1964 Water Revenue Bond and Interest Sinking Fund to be applied to the retirement of any outstanding and unredeemed bonds issued for the enterprise. The City shall maintain with responsible insurers work- men's compensation insurance and insurance against public liability and property damage. Said public liability and property damage insurance shall be not less than $100,000 for one person and $300,000 for more than one person involved in one accident and not 18. less than $10,000 for damage to property of others which may arise from the operation of the enterprise. The City shall also maintain vehicular public liability insurance of not less than $100,000 for one person and $300,000 for more than one person involved in one accident to protect the City from claims for bodily injury and/or death, and not less than $10,000 against claims for damage to property of others which may arise from the City's operation of vehicles. Covenant 7. Records and Accounts. The City covenants that it shall keep proper books of records and accounts of the enter- prise, separate from all other records and accounts, in which com- plete and correct entries shall be made of all transactions relating to the enterprise. Said books shall at all times be subject to the inspection of the holders of not less than 10% of the outstanding bonds or their representatives authorized in writing. The City covenants that it will cause the books and accounts of the enterprise to be audited annually by an independent certified public accountant or firm of certified public accountants and will make available for inspection by the bondholders at the office of the City Clerk of said City and at the office of the City Treasurer thereof, no later than 90 days after the end of each fiscal year, a copy of the report of such accountant or accountants and will also upon request furnish a copy thereof to any bondholder and to any person, firm or corporation who originally purchased the bonds from the City. Covenant 8. No Free Service. The City covenants that no water or other service from the enterprise may be furnished or rendered to the United States of America, the State of California, the City, any other municipal or public corporation or public agency or any private corporation or person free nor at rates lower than those charged other persons for similar service, except that charges 19. to the City for water used for street or sewer flushing and for fire hydrants may be made at rates lower than those charged private persons, and all rates for service rendered the City shall be at a reasonable charge for the service rendered. No building or other real property of the enterprise shall be furnished free to the City, but the City shall pay into the 1964 Water Revenue Fund the reason- able rental value of any property so used, and reasonable and proper charges for service rendered or quarters furnished to the enterprise shall be paid to the City from the 1964 Water Revenue Fund. The City covenants that it will at all times during the period any of the bonds are outstanding maintain and enforce valid regulations for the payment of bills for water service and that such regulations shall at all times during such periods provide that the City shall discontinue service to any user whose water bill has not been paid within the time fixed by said regulations. Covenant 9. Rates and Charges. The City shall and hereby covenants that it shall prescribe, revise and collect such charges for the services, facilities and water of the enterprise which, after making allowances for contingencies and error in the esti- mates, shall be at least sufficient to pay the following amounts in the order set forth: (a) The interest on and principal of the bonds as they become due and payable; (b) All payments required for compliance with this resolution including the payments required to be made into the 1964 Water Revenue Bond and Interest Sinking Fund in order to establish and maintain therein a debt service reserve, as heretofore provided; (c) All current expenses for the necessary and reasonable maintenance and operation costs of the enterprise; (d) All payments to meet any other obligations of the 20. City which are charges, liens, encumbrances upon or payable from the revenues of the enterprise. Covenant 10. No Priority for Additional Bonds. The City covenants that no additional bonds shall be issued pursuant to said Revenue Bond Law or any other law of the State of California or under the charter of said City (in the event that said City should hereafter adopt a charter) having any priority in payment of principal or interest out of the revenues of the enterprise over the bonds hereby authorized to be issued and payable out of said revenues. Covenant 11. Limits on Additional Debt. The City covenants that no additional indebtedness evidenced by bonds, notes or other similar evidences of indebtedness or revenue bonds of the City payable out of revenues derived from the enterprise (including bonds ranking on a parity with these bonds) or evidenced by a contract other than this resolution shall be created or incurred prior to May 1, 1966, and thereafter such bonds may only be issued upon the following conditions: First: The issuance of such bonds shall have been duly authorized by law. Second: The purpose of incurring said indebtedness is to provide funds for the acquisition or construction or financing of extensions of or additions to or improvements of the enterprise, the refunding of any outstanding 1964 Water Revenue and Additional Bonds, or any combination of said purposes. Third: The City is not in default under the terms of this resolution. Fourth: The final maturity of such additional indebted- ness is not earlier than any of these bonds which are still outstanding, such bonds shall mature on May 1 and be fixed 21. serial maturities or mandatory minimum sinking fund payment bonds, or any combination thereof. Fifth: The net revenues of the enterprise for twelve consecutive months ending with the calendar month next preceding the date of adoption by the City Council of the resolution authorizing the issuance and sale of the additional bonds, as shown by an audit certificate of an independent public accountant employed by the City, plus the estimated amount of the increase in the net revenues of the enterprise for the first full twelve-month period, in which the proposed improvements, extensions, additions or betterments to the enterprise will be in operation, as shown by a certificate of an independent recognized con- sulting engineer and approved by the City Council, are at least equal to 1.50 times the maximum amount of annual debt service on all of the bonds then outstanding and on the additional bonds estimated at not less than the average interest rates of all bonds then outstanding. S ixt h : In the event additional bonds are to be issued solely for the purpose of refunding a portion only of the bonds then outstanding, then, for the purpose of the calculation required, under preceding subparagraph Fifth, the maximum annual debt service on the outstanding bonds and on such additional bonds will be taken into consideration only in any future year in which any of the bonds will remain outstanding after the issuance of such additional bonds; provided that nothing herein contained shall limit or restrict the issuance of any additional bonds if, before the issuance and delivery of such additional bonds, none of the bonds theretofore issued will be outstanding. 22. Section 22. Investment of Funds. Obligations purchased as an investment of moneys in any funds hereby created which are herein authorized to be invested shall be deemed at all times to be a part of such funds and the interest accruing there- under and any profit realized from the investment shall be credited to such funds and any loss resulting from such investment shall be charged to such funds. The City shall sell at the best price obtainable or present for redemption any obligations so purchased whenever it shall be necessary to do so in order to provide moneys to meet any payment or transfer from such funds. Section 23. Lost, Destroyed or Mutilated Bonds. In the event that any bond or any interest coupon pertaining thereto is lost, stolen, destroyed or mutilated, the City will cause to be issued a new bond or coupon similar to the original to replace the same in such manner and upon such reasonable terms and conditions, including the payment of costs and the posting of a surety bond if the City deems such surety bond necessary, as may from time to time be determined and prescribed by resolution. The City Council may authorize such new bond or coupon or coupons to be signed and authenticated in such manner as it determines in said resolution. Section 24. Cancellation of Bonds. All bonds and coupons surrendered to any paying agent of the City for payment upon maturity or for redemption shall upon payment therefor be can- celled immediately and forthwith transmitted to the Treasurer. All of the cancelled bonds and interest coupons shall remain in the custody of the Treasurer until destroyed pursuant to due authori- zation. Section 25. Consent of Bondholders. The consents of bondholders provided for herein shall relate solely to the amend- ment, waiver or modification of the covenants specified in Section 21 hereof and shall not be effective to waive or modify any 23. other provisions of this resolution or of any of'the proceedings 'for the issuance of, said bonds. Any act relating to the amendment, waiver or modification of any of the said covenants consented to by bondholders holding sixty per cent (60%) ip aggregate principal amount of the outstanding bonds, exclusive of bonds, if any, owned by the City, shall be binding upon the holders of all of the bonds and interest coupons, whether such coupons be attached to bonds or detached therefrom, and shall not be deemed an infringement of any of the provisions of this resolution o~ of said Revenue Bond Law, whatever the chafacter of such act may be, and may be done and performed as fully and freely as if expressly permitted by the ~erms of this resolution, and after such consent relating to such specified matters has been given, no bondholder or, holder of any interest coupon, whether attached to a bond or detached therefrom, shall have any right or interest to Object to such action or in any manner to question the propriety thereof or to enjoin or re- strain the City Cpuncil or any officer of said City from taking any action pursuant thereto. (a) Calling Bondholders' Meeting. If the City Council shall desire to obtain any such consent it shall duly adopt a resolution calling a meeting of bondholders for the purpose of considering the action, the consent to which is desired. (b) 0 Notice of Meeting. Notice specifying the purpose, place, date and hour of such meeting shall be published once in a financial newspaper or journal of national circulation published in the City of New York, New York, not less than sixty (60) days and not more than ninety (90) days prior to the date fixed for the meeting. Such notice shall set forth the nature of the proposed action, consent to which is desired. If any of the bonds shall be so registered as to be payable otherwise than to bearer, the City Clerk shall, on or before the first publication of such notice, mail a similar notice, postage prepaid, to the respective registered 24. owners thereof at their addresses appearing on the bond registry books. The place, date and hour of holding such meeting and the date or dates of publishing and mailing such notice shall be deter- mined by the City Council, in its discretion. The actual receipt by any bondholder of notice of any such meeting shall not be a condition precedent to the holding of such meeting, and failure to receive such notice shall not affect the validity of the proceedings thereat. A certificate by the City Clerk, approved by resolution of the City Council of said City, that the meeting has been called and that notice thereof has been given as herein provided and shall be conclusive as against all parties and it shall not be open to any bondholder to show that he failed to receive notice of such meeting. (c) V~lng Qualifications. Any bondholder may, prior to any such meeting, deliver his bond or bonds to any agency desig- nated by the City Council of the City for the purpose, and shall thereupon be entitled to receive an appropriate receipt for the bond or bonds so deposited, calling for the redelivery of such bond or bonds at any time after the meeting. The City Treasurer shall prepare and deliver to the Chairman of the meeting a list of the names and addresses of the registered owners of bonds, with a statement of the maturities and serial numbers of the bonds held and deposited by each of such bondholders, and no bondholder shall be entitled to vote at such meeting unless his name appears upon such list or unless he shall present his bond or bonds at the meet- ing or a certificate of deposit thereof, satisfactory to the City Council, executed by a bank or trust company. No bondholder shall be permitted to vote with respect to a larger aggregate principal amount of bonds than is set against his name on such list, unless he shall produce the bonds upon which he desires to vote, or a certificate of deposit thereof as above provided. 25. (d) Issuer-owned Bonds. The City Council covenants that it will present at the meeting a certificate, signed and verified by one member thereof and by the City Treasurer, stating the maturities and serial numbers of all bonds owned by, or held for account of, the City, directly or indirectly. No person shall be permitted at the meeting to vote or consent with respect to any bond appearing upon such certificate, or any bond which it shall be established at or prior to the meeting is owned by the City, directly or indirectly, and no such bond (in this resolution re- ferred to as "issuer-owned bond") shall be counted in determining whether a quorum is present at the meeting. (e) Quorum and Procedure. A representation of at least sixty per cent (60%) in aggregate principal amount of the bonds then outstanding (exclusive of bonds, if any, owned by the City) shall be necessary to constitute a quorum at any meeting of bondholders, but less than a quorum may adjourn the meeting from time to time, and the meeting may be held as so adjourned without further notice, whether such adjournment shall have been had by a quorum or by less than a quorum. The City Council shall, by an instrument in writing, appoint a temporary chairman of the meeting, and the meeting shall be organized by the election of a permanent chairman and a secretary. At any meeting each bondholder shall be entitled to one vote for every $1,000 principal amount of bonds with respect to which he shall be entitled to vote as aforesaid, and such vote may be given in person or by proxy duly appointed by an instrument in writing presented at the meeting. The City Council, by its duly authorized representative, may attend any meeting of the bondholders, but shall not be required to do so. (f) Vote Required. At any such meeting held as afore- said there shall be submitted for the consideration and action of the bondholders a statement of proposed action, consent to which is 26. desired, and if such action shall be consented to and approved by bondholders holding at least sixty per cent (60%) in aggregate amount of the bonds then outstanding (exclusive of issuer-owned bonds) the chairman and secretary of the meeting shall so certify in writing to the City Council, and such certificate shall con- stitute complete evidence of consent of bondholders under the provisions of this resolution. A certificate signed and verified by the chairman and the secretary of any such meeting, shall be conclusive evidence and the only competent evidence of matters stated in such certificate relating to-proceedings taken at such meeting. Section 26. Bond and Coupon Forms. Said bonds shall be payable to bearer, shall be issued in negotiable form, and shall be negotiable, and the form of said bonds and interest coupons thereof shall be substantially as follows: UNITED STATES OF AMERICA STATE OF CALIFORNIA COUNTY OF RIVERSIDE CITY OF ELSINORE 1964 WATER REVENUE BOND NO. $1,000 THE CITY OF ELSINORE, a municipal corporation situated in the County of Riverside, State of California, FOR VALUE RECEIVED, hereby promises to pay, solely from the 1964 Water Revenue Fund, as hereinafter provided, to the bearer or, if this bond be registered, to the registered owner hereof, on 1, 19 ., upon pres- entation and surrender of this bond, the sum of ONE THOUSAND DOLLARS, with interest thereon at the rate of % per annum, payable annually for the first year and semiannually thereafter on the first days of November 'and .. May of each and every year from the date hereof until this bond is paid, upon presentation and surrender of the respective interest coupons hereto attached; provided, however, that if at the maturity date of this bond or, if the same is re- deemable prior to maturity and shall be duly called for redemption, then at the date fixed for redemption, funds are available for the payment or redemption thereof, as provided in the resolution of the City Council of said City authorizing the bonds adopted on , 19___, designated Resolution No. (hereinafter sometimes referred to as "said resolution"), this ~ond shall then cease to bear interest. Both principal and interest are payable in lawful money of the United States of America at the of- fice of the Security First National Bank in the City of Los Angeles, 27. California, or, at the option of the holder hereof, at the paying agencies of the City of Elsinore in the Borough of Manhattan, City and State of New York. This bond and the interest hereon and any premium upon the redemption hereof are not a debt of the City of Elsinore, nor a legal or equitable pledge, charge, lien or encumbrance upon any of its property or upon any of its income, receipts, or revenues except the revenues of the municipal water system pledged to its payment. and the principal and interest of this bond and any premium upon the redemption .hereof are payable solely from the revenues pledged to its payment, to wit, gross revenues from the water system of the City of Elsinore, and said City is not obli- gated to pay such principal, interest and premium except from said revenues. The 1964 Water Revenue Fund is established under and pursuant to the Revenue Bond Law of 1941, and under the provisions of said resolution the gross revenues received from the services, facilities and water or ~rising from the entire water system of the City are required to be deposited in the City Treasury to the credit of said 1964 Water Revenue Fund and used only for the pur- poses authorized by said resolution including the payment of principal and interest of the issue of bonds of which this is one. This is one of a duly authorized issue of bonds of the City designated "1964 Water Revenue Bonds" hereinafter called "the bonds," all of which have been issued pursuant to the Revenue Bond Law of 1941 (being Chapter 6, Part 1, Division 2, Title 5 of the Government Code of the State of California) and the creation of said issue and the terms and conditions of the bonds are provided for by said resolution and this reference incorporates said reso- lution and said Chapter 6 herein, and by acceptance hereof the holder of this bond and the coupons hereto attached assents to said terms and conditions. Said resolution is adopted under, and this bond and the interest coupons hereto attached are issued under and are to be construed in accordance with the laws of the State of California. By the terms of said Revenue Bond Law and by covenant ex- pressed in said resolution, officers of the City are obligated to fix rates and collect charges for service from the water system of the City such as to provide revenues sufficient to pay the interest on and principal of the bonds as they become due and payable in addition to all other obligations and indebtedness payable from such 1964 Water Revenue Fund or any fund derived therefrom and all current expenses for the necessary and reasonable maintenance and operation costs of the water system, are prohibited from issuing bonds having any priority with respect to payment from the water revenues, and are subject to conditions with respect to any sale of said water system. In the manner provided in said resolution, any or all of the obligations referred to in this paragraph and certain other obligations mentioned in said resolution mar be waived with the consent of the holders of sixty per cent (60%) in aggregate principal amount of the outstanding bonds, exclusive of issuer-owned bonds. Unless this bond matures on or prior to May 1, 1974, it is callable and redeemable prior to maturity, all in accordance with the provisions for redemption prior to maturity endorsed hereon. This bond and the coupons hereto attached are negotiable instruments and shall be negotiable by delivery. This bond may be registered as to principal only, in accordance with the provisions for registration endorsed hereon. 28. It is hereby certified and recited that any and all acts, conditions and things required to exist, to happen and be performed precedent to and in the incurring of the indebtedness evidenced by this bond and in the issuance of this bond exist, have happened, and have been performed in due time, form and manner as required by the Constitution and Statutes of the State of Ca~ifornia, and that this bond, together with all other indebtedness of the City pertain- ing to the aforesaid water system, is within every debt and other limit prescribed by the Constitution and Statutes of the State of California. IN WITNESS WHEREOF, said City of Elsinore has caused this bond to be signed by the Mayor and the City Treasurer of said City, countersigned by the City Clerk of said City, and sealed with the corporate seal of said City, and the interest coupons hereto at- tached to be signed by the City Treasurer by his facsimile signa- ture, 'and has caused this bond to be dated the first day of May, 1964. Mayor of the City of Elsinore California (SEAL) City Treasurer of the City of Elsinore, California. COUNTERSIGNED: City Clerk of the City of Elsinore, California (COUPON FORM) Coupon No. On the first day of THE CITY OF ELSINORE, CALIFORNIA, 19 will pay to the bearer, at the of- fice of the Security First National Bank in the City of Los Angeles, California, or, at the option of. the holder hereof, at the paying agencies of the City of Elsinore, in the Borough of Manhattan, City and State of New York, out of the 1964 Water'Revenue Fund of said City an~ not out of any other fund or moneys of the City, the sum of $ in lawful money of the United States of America, being the interest then due on 1964 WATER REVENUE BOND NO. dated May 1, 1964, subject to the provisions on the reverse hereof. City Treasurer of the City of Elsinore, California T 29. On the reverse side of the coupon there shall be printed substantially the following: (REVERSE OF COUPON) If the bond to which this coupon is attached is redeemable and is duly called for redemption on a date prior to the maturity date of this coupon, this coupon will be void. Substantially the following provisions for redemption and for registration shall be printed on the reverse side of the bond: PROVISIONS FOR REDEMPTION PRIOR TO MATURITY Unless this bond matures on or prior to May 1, 1974, it is redeemable prior to maturity in the manner and subject to the terms and provisions, and with the effect, set forth in Resolution No. , at the option of said Council, on May 1, 1974, or on any interest payment date thereafter prior to maturity, upon at least 30 days' prior notice published in a newspaper circulated in the County of Riverside, California, and in a financial news- paper or journal of national circulation published in the City of New York, New York, at a redemption price equal to the principal amount thereof and accrued interest, plus a premium equal to 1/4% of said principal amount for each year or fraction of a year from the redemption date to the maturity date of the bond, provided, that in no event shall such premium exceed 4% of such principal amount. PROVISIONS FOR REGISTRATION This bond may be registered in the name of any person as the registered owner hereof, as to principal only, and if so registered may be discharged from registration. Each registration, transfer after registration, or discharge from registration of this bond shall be entered by the City Treasurer in books kept by him for the purpose and noted by him on the registration blank below. Registration shall not affect the negotiability by delivery of the coupons pertaining hereto. So long as this bond is registered no transfer hereof shall be valid for any purpose unless made by the regis- :tered owner and entered and noted as herein provided, and the principal hereof and any redemption premium shall be payable only to the registered owner, or to his order. Each discharge hereof from registration shall be effected by an entry on the registry books, and a notation in the blank below, that this bond is payable to bearer, whereupon this bond shall become an unregistered bearer instrument, negotiable by delivery as if it had never been registered. Each request for registration, trans- fer, change or discharge must be in form satisfactory to the Treasurer and must be made in writing, signed by the registered owner, or by his agent duly author- ized in writing, or by the bearer, as the case may be. 30. Date of Registration In Whose Name Registered Signature of City Treasurer Section 27. Proceedings Constitute Contract. The pro- visions of this resolution and of the resolutions providing for the sale of the bonds and awarding the bonds and fixing the interest rate or rates thereon shall constitute a contract between the City and the bondholders and the provisions thereof shall be enforceable by any bondholder for the equal benefit and protection of all bond- holders similarly situated by mandamus, accounting, mandatory in- junction or any other suit, action or proceeding at law or in equity that is now or may hereafter be authorized under the laws of the State of California in any court of competent jurisdiction. Said contract is made under and is to be construed in accordance with the laws of the State of California. No remedy conferred hereby upon any bondholder is in- tended to be exclusive of any other remedy, but each such remedy is cumulative and in addition to every other remedy and may be exercised without exhausting and without regard to any other remedy conferred by the Revenue Bond Law of 1941 or any other law of the State of California. No waiver of any default or breach of duty or contract by any bondholder shall affect any subsequent default or breach of duty or contract or shall impair any rights or remedies on said subsequent default or breach. No delay or omission of any bondholder to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed as a waiver of any such default or acquiescence therein. Every substan- tive right and every remedy conferred upon the bondholders may be enforced and exercised as often as may be deemed expedient. In 31. case any suit, action or proceeding to enforce any right or exer- cise any remedy shall be brought or taken and the bondholder shall prevail, said bondholder shall be entitled to receive from the 1964 Water Revenue Fund reimbursement for reasonable costs, expenses, outlays and attorney's fees and should said suit, action or proceeding be abandoneg, or be determined adversely to the bond- holders then and in every such case, the City and the bondholders shall be restored to their former positions, rights and remedies as if such suit, action or proceeding had not been brought or taken. After the issuance and delivery of the bonds this reso- lution and supplementary resolutions hereto shall be irrepealable, but shall be subject to modification to the extent and in the manner provided in Section 25 of this resolution, but to no greater extent and in no other manner. Section 28. Future Contracts. Nothing herein con- tained shall be deemed to restrict or prohibit the City from making contracts or creating bonded or other indebtedness payable from the general fund of the City or from taxes or any source other than the revenues of the enterprise as defined herein, and from and after the sale of the bonds the general fund of the City shall not include the revenues of the enterprise and no contract or other ob- ligations payable from the general fund of the City shall be payable from the revenues of the enterprise, except as provided in Section 18 hereof. Section 29. Severability. If any covenant, agreement or provision, or any portion thereof, contained in this resolution, or the application thereof to any person or circumstance, is held to be unconstitutional, invalid or unenforceable, the remainder of this resolution and the application of any such covenant, agree- ment or provision, or portion thereof, to other persons or circum- stances, shall be deemed severable and shall not be affected 32. thereby, and this resolution and the bonds issued pursuant hereto shall remain valid and the bondholders shall retain all valid rights and benefits accorded to them under this resolution and the Constitution and laws of the State of California. Section 30. Effective Date. This resolution shall take effect upon adoption. ADOPTED, SIGNED AND APPROVED this 25th day of Ja ntJa ry , 1965. ATTEST: J~,/ '?~4AdL/F City Clerk. of t e dity of Elsinore~ California (SEAL) 33. STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF ELSINORE ) I" Florene Marsha 1 J , City Clerk of the City of Elsinore, California, DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the City Council of said City and was approved by the Mayor of said City at a:.:..---------------- regular meeting of said City Council held on the 25th day of J",nu",ry , 19..6.5....." and that it was adopted by the following vote" to wit: AYES: Councilmen: Stewart, Yarborough, Berry, DePasquale NOES: ABSENT: Counc ilme~: None Councilmen: Bartlett (SEAL) M~~,~A/~ City Cler 0 te ity 0 Elsinore, California STATE OF CALIFORNIA COUNTY OF RIVERSIDE ss CITY OF ELSINORE I, FlorBne Marsha 11 , City Clerk of the City of Elsinore, California, DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of Resolution No. 1148 and that the same has not been amended or repealed. Dated: Ja nua ry 28 , 19...M.... ~u ~I f".. '97 . . . /..:P'd,'p-/ 7?1dA~ -/# City Clerk of he City of Elsinore, California ( SEAL)