HomeMy Public PortalAbout05 May 14, 2008 Commission84018
RECORDS
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RIVERSIDE COUNTY TRANSPORTATION COMMISSION
MEETING AGENDA
TIME: 9:30 a.m.
DATE: Wednesday, May 14, 2008
LOCATION: BOARD ROOM
County of Riverside Administrative Center
4080 Lemon Street, First Floor, Riverside
Commissioners
Chair: Jeff Stone
1S1 Vice Chair: Bob Magee
2nd Vice Chair: Bob Buster
Bob Buster, County of Riverside
John F. Tavaglione, County of Riverside
Jeff Stone, County of Riverside
Roy Wilson, County of Riverside
Marion Ashley, County of Riverside
Bob Botts / Brenda Salas, City of Banning
Roger Berg / Jeff Fox, City of Beaumont
Joseph DeConinck / Robert Crain, City of Blythe
John Chlebnik / Ray Quinto, City of Calimesa
Mary Craton / John Zaitz, City of Canyon Lake
Gregory S. Pettis / Kathleen DeRosa, City of Cathedral City
Eduardo Garcia / Steven Hernandez, City of Coachella
Jeff Miller / Eugene Montanez, City of Corona
Yvonne Parks / Scott Matas, City of Desert Hot Springs
Robin Lowe / Eric McBride, City of Hemet
Patrick J. Mullany / Larry Spicer, City of Indian Wells
Michael H. Wilson / Melanie Fesmire, City of Indio
Terry Henderson / Don Adolph, City of La Quinta
Bob Magee / Robert L. Schiffner, City of Lake Elsinore
Frank West / Charles White, City of Moreno Valley
Rick Gibbs / Kelly Bennett, City of Murrieta
Frank Hall / Malcolm Miller, City of Norco
Dick Kelly / Cindy Finerty, City of Palm Desert
Ginny Foat / Steve Pougnet, City of Palm Springs
Daryl Busch / Mark Yarbrough, City of Perris
Gordon Moller / Alan Seman, City of Rancho Mirage
Steve Adams / Andy Melendrez, City of Riverside
Chris Carlson / Jim Ayres, City of San Jacinto
Ron Roberts / Jeff Comerchero, City of Temecula
Mike Perovich, Governor's Appointee
Anne Mayer, Executive Director
John Standiford, Deputy Executive Director
Comments are welcomed by the Commission. if you wish to provide comments to the Commission, please
complete and submit a Speaker Card to the Clerk of the Board.
11.36.00
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R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N C O M M I S S I O N
w w w . r c t c . o r g
A G E N D A *
* A c t i o n s m a y b e t a k e n o n a n y i t e m l i s t e d o n t h e a g e n d a
9 : 3 0 a . m .
W e d n e s d a y , M a y 1 4 , 2 0 0 8
B O A R D R O O M
C o u n t y o f R i v e r s i d e A d m i n i s t r a t i v e C e n t e r
4 0 8 0 L e m o n S t r e e t , F i r s t F l o o r , R i v e r s i d e
I n c o m p l i a n c e w i t h t h e A m e r i c a n s w i t h D i s a b i l i t i e s A c t a n d G o v e r n m e n t C o d e S e c t i o n 5 4 9 5 4 . 2 ,
i f s p e c i a l a s s i s t a n c e i s n e e d e d t o p a r t i c i p a t e i n a C o m m i s s i o n m e e t i n g , p l e a s e c o n t a c t t h e C l e r k
o f t h e B o a r d a t ( 9 5 1 ) 7 8 7 - 7 1 4 1 . N o t i f i c a t i o n o f a t l e a s t 4 8 h o u r s p r i o r t o m e e t i n g t i m e w i l l
a s s i s t s t a f f i n a s s u r i n g t h a t r e a s o n a b l e a r r a n g e m e n t s c a n b e m a d e t o p r o v i d e a c c e s s i b i l i t y a t t h e
m e e t i n g .
1 . C A L L T O O R D E R
2 . P L E D G E O F A L L E G I A N C E
3 . R O L L C A L L
4 . P U B L I C C O M M E N T S - E a c h i n d i v i d u a l s p e a k e r i s l i m i t e d t o s p e a k t h r e e ( 3 )
c o n t i n u o u s m i n u t e s o r l e s s . T h e C o m m i s s i o n m a y , e i t h e r a t t h e d i r e c t i o n o f t h e
C h a i r o r b y m a j o r i t y v o t e o f t h e C o m m i s s i o n , w a i v e t h i s t h r e e m i n u t e t i m e
l i m i t a t i o n . D e p e n d i n g o h t h e n u m b e r o f ( i t e m s o n t h e A g e n d a a n d t h e n u m b e r o f
s p e a k e r s , t h e C h a i r m a y , a t h i s / h e r d i s c r e t i o n , r e d u c e t h e t i m e o f e a c h s p e a k e r t o
t w o ( 2 ) c o n t i n u o u s m i n u t e s . I n a d d i t i o n , t h e m a x i m u m t i m e f o r p u b l i c c o m m e n t
f o r a n y i n d i v i d u a l i t e m o r t o p i c i s t h i r t y ( 3 0 ) m i n u t e s . A l s o , t h e C o m m i s s i o n m a y
t e r m i n a t e p u b l i c c o m m e n t s i f s u c h c o m m e n t s b e c o m e r e p e t i t i o u s . S p e a k e r s m a y
n o t y i e l d t h e i r t i m e t o o t h e r s w i t h o u t t h e c o n s e n t o f t h e C h a i r . A n y w r i t t e n
d o c u m e n t s t o b e d i s t r i b u t e d o r p r e s e n t e d t o t h e C o m m i s s i o n s h a l l b e s u b m i t t e d t o
t h e C l e r k o f t h e B o a r d . T h i s p o l i c y a p p l i e s t o P u b l i c C o m m e n t s a n d c o m m e n t s o n
A g e n d a I t e m s .
U n d e r t h e B r o w n A c t , t h e B o a r d s h o u l d n o t t a k e a c t i o n o n o r d i s c u s s m a t t e r s
r a i s e d d u r i n g p u b l i c c o m m e n t p o r t i o n o f t h e a g e n d a w h i c h a r e n o t l i s t e d o n t h e
a g e n d a . B o a r d m e m b e r s m a y r e f e r s u c h m a t t e r s t o s t a f f f o r f a c t u a l i n f o r m a t i o n o r
t o b e p l a c e d o n t h e s u b s e q u e n t a g e n d a f o r c o n s i d e r a t i o n .
5 . A P P R O V A L O F M I N U T E S - A P R I L 9 , 2 0 0 8
Riverside County Transportation Commission Agenda
May 14, 2008
Page 2
6.. PUBLIC HEARING — PROPOSED BUDGET FISCAL YEAR 2008/09
Overview
This item is for the Commission to:
1) Discuss, review and provide guidance on the proposed Budget for
FY 2008/09; and
2) Open the public hearing in order to receive input and comments on the
proposed FY 2008/09 Budget on May 14, 2008, and on June 11, 2008,
and close the public hearing.
Page 1
7. ADDITIONS/REVISIONS — The Commission may add an item to the Agenda after
making a finding_ that there is a need to take immediate action on the item and
that the item came to the attention of the Commission subsequent to the posting
of the agenda. An action adding an item to the agenda requires 2/3 vote of the
Commission. If there -are less than 2/3 of the Commission members present,
adding an item to the agenda requires a unanimous vote. Added items will be
placed for discussion at the end of the agenda.
8. CONSENT CALENDAR — All matters on the Consent Calendar will be approved in
a single motion unless a Commissioner(s) requests separate action on specific
item(s). Items pulled from the Consent Calendar will be placed for discussion at
the end of the agenda.
8A. QUARTERLY INVESTMENT REPORT
Page 21
Overview
This item is for the Commission to receive and file the Quarterly
Investment Report for the quarter ended March 31, 2008.
8B. INTERFUND LOAN ACTIVITY REPORT
Overview
This item is for the Commission to receive and file the lnterfund Loan
Activity Report.
Page 34
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R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n A g e n d a
M a y 1 4 , 2 0 0 8
P a g e 3
8 C . N E E D F O R A D D I T I O N A L F U N D I N G F O R T H E S T A T E R O U T E 9 1 H I G H
O C C U P A N C Y V E H I C L E L A N E P R O J E C T
O v e r v i e w
T h i s i t e m i s f o r t h e C o m m i s s i o n t o :
P a g e 3 6
1 ) A p p r o v e f u n d i n g u p t o $ 5 1 m i l l i o n f o r t h e S R - 9 1 h i g h o c c u p a n c y
v e h i c l e ( H O V ) r i g h t - o f - w a y p h a s e t o b e f u n d e d b y a c o m b i n a t i o n o f
f e d e r a l f u n d s a n d a T r a f f i c C o n g e s t i o n R e l i e f P r o g r a m ( T C R P ) l e t t e r
o f n o p r e j u d i c e ( L O N P ) r e i m b u r s e m e n t b y C a l t r a n s ;
2 ) A p p r o v e u p t o $ 3 . 8 m i l l i o n o f 1 9 8 9 M e a s u r e A H i g h w a y f u n d s a s a
l o a n t o m a t c h t h e f e d e r a l f u n d s f o r c a s h f l o w p u r p o s e s u n t i l t h e
T C R P L O N P f u n d s a r e a v a i l a b l e t o p a y b a c k a n y M e a s u r e A f u n d s
u s e d ; a n d
3 ) A u t h o r i z e t h e E x e c u t i v e D i r e c t o r , p u r s u a n t t o l e g a l c o u n s e l r e v i e w ,
t o e x e c u t e t h e C o o p e r a t i v e A g r e e m e n t A m e n d m e n t N o .
0 8 - 3 1 - 0 0 2 - 0 1 a n d C o r r i d o r M o b i l i t y I m p r o v e m e n t A c c o u n t ( C M I A )
b a s e l i n e c e r t i f i c a t i o n a m e n d m e n t o n b e h a l f o f t h e C o m m i s s i o n .
8 D . A L A M E D A C O R R I D O R E A S T S A F E , A C C O U N T A B L E , F L E X I B L E ,
E F F I C I E N T T R A N S P O R T A T I O N E Q U I T Y A C T : A L E G A C Y F O R U S E R S
E A R M A R K U P D A T E
O v e r v i e w
T h i s i t e m i s f o r t h e C o m m i s s i o n t o :
P a g e 3 9
1 ) A l l o c a t e $ 4 . 0 5 m i l l i o n o f t h e C o m m i s s i o n ' s S a f e , A c c o u n t a b l e ,
F l e x i b l e , E f f i c i e n t T r a n s p o r t a t i o n E q u i t y A c t : A L e g a c y f o r U s e r s
( S A F E T E A - L U ) A l a m e d a C o r r i d o r E a s t ( A C E ) e a r m a r k f u n d s t o t h e
c i t y o f R i v e r s i d e f o r t h e I o w a A v e n u e g r a d e s e p a r a t i o n ;
2 ) D e o b l i g a t e $ 4 . 0 5 m i l l i o n o f S u r f a c e T r a n s p o r t a t i o n P r o g r a m ( S T P )
f u n d s t h a t w e r e p r e v i o u s l y a l l o c a t e d t o t h e c i t y o f R i v e r s i d e f o r t h e
I o w a A v e n u e g r a d e s e p a r a t i o n ;
3 ) A p p r o v e t h e r e p r o g r a m m i n g o f $ 6 0 0 , 0 0 0 i n S A F E T E A - L U f u n d s
f r o m t h e M c K i n l e y S t r e e t g r a d e s e p a r a t i o n t o A u t o C e n t e r D r i v e
g r a d e s e p a r a t i o n ; a n d
4 ) A p p r o v e t h e R i v e r s i d e C o u n t y A C E c o r r i d o r u p d a t e d f i n a n c i a l p l a n
f o r s u b m i s s i o n t o t h e F e d e r a l H i g h w a y A d m i n i s t r a t i o n ( F H W A ) .
Riverside County Transportation Commission Agenda
May 14, 2008
Page 4
8E. AMENDMENT NO. 2 WITH BRE PROPERTIES FOR TRANSIT ORIENTED
DEVELOPMENT AT THE LA SIERRA METROLINK STATION
Overview
This item is for the Commission to:
Page 43
1) Approve Agreement No. 07-67-004-02, Amendment No. 2 to
Agreement No. 07-67-004-00, with BRE Properties for transit
oriented development (TOD) at the La Sierra Metrolink station; and
2) Authorize the Chair, pursuant to legal counsel review to execute the
agreement on behalf of the Commission.
8F. PROPERTY EASEMENT AMENDMENTS TO ACCOMMODATE TRANSIT
ORIENTED DEVELOPMENT PLANS WITH BRE PROPERTIES ADJACENT
TO THE RIVERSIDE DOWNTOWN METROLINK STATION
Overview
This item is for the Commission to:
Page 45
1) Amend property easement nos. 73060 and 313756 to
accommodate transit oriented development (TOD) plans with BRE
Properties adjacent to the Riverside Downtown Metrolink station;
and
2) Authorize the Chair, pursuant to legal counsel review, to execute
the agreement on behalf of the Commission.
8G. COMMUTER RAIL PROGRAM UPDATE
Overview
Page 48
This item is for the Commission to receive and file an update on the
Commuter Rail Program.
8H. RIVERSIDE TRANSIT AGENCY'S FISCAL YEAR 2007/08 SHORT RANGE
TRANSIT PLAN
Overview
Page 58
This item is for the Commission to approve Amendment No. 4 to Riverside
Transit Agency's (RTA) FY 2007/08 Short Range Transit Plan (SRTP) to
reflect an additional $135,000 in Commuter Rail Local Transportation
Fund (LTF) funds to provide shuttle services to the leased satellite parking
lot during construction of the North Main Corona parking structure.
Riverside County Transportation Commission Agenda
May 14, 2008
Page 5
81. WESTERN RIVERSIDE MEASURE A SPECIALIZED TRANSIT PROGRAM
FUNDS ALLOCATION TO THE INDEPENDENT LIVING PARTNERSHIP
Page 60
Overview
This item is for the Commission to:
1) Allocate $32,000 in Western Riverside Measure A Specialized
Transit funds to Independent Living Partnership to accommodate
additional program participation; and
2) Approve a budget adjustment for a $32,000 increase to Measure A
Specialized Transit expenditures in FY 2007/08.
8J. AGREEMENTS WITH EPIC LAND SOLUTIONS, INC., REAL ESTATE
CONSULTING & SERVICES, INC., AND OVERLAND PACIFIC & CUTLER,
INC. TO PROVIDE ON -CALL PROPERTY MANAGEMENT SERVICES
Page 62
Overview
This item is for the Commission to:
1) Approve Agreement No. 07-33-151-01, Amendment No. 1 to
Agreement No. 07-33-151-00, with Epic Land Solutions, Inc.;
2) Approve Agreement No. 07-33-153-05, Amendment No. 2 to
Agreement No. 07-33-153-00, with Real Estate Consulting &
Services, Inc;
3) Approve Agreement No. 07-33-152-01, Amendment No. 1 to
Agreement No. 07-33-152-00, with Overland Pacific & Cutler, Inc.,
to provide on -call right-of-way property management services in the
amount of $750,000 each, plus a pool contingency of $1 million,
for a total services amount of $3.87 million; and
4) Authorize the Chair, pursuant to legal counsel review, to execute
the agreements on behalf of the Commission.
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Riverside County Transportation Commission Agenda
May 14, 2008
Page 6
8K. AGREEMENTS WITH BRYAN A. STIRRAT & ASSOCIATES, LEIGHTON
CONSULTING, INC., NINYO & MOORE GEOTECHNICAL, BUREAU
VERITAS NA, INC., AND TETRA TECH FOR ON -CALL RIGHT-OF-WAY
PHASE 1 AND PHASE II ENVIRONMENTAL SOIL ASSESSMENT SERVICES
Page 64
Overview
This item is for the Commission to:
1) Approve Agreement No. 07-31-146-03, Amendment No. 1 to
Agreement No. 07-31-146-00, with Bryan A. Stirrat & Associates;
2) Approve Agreement No. 07-31-147-06, Amendment No. 2 to
Agreement No. 07-31-147-00, with Leighton Consulting, Inc.;
3) Approve Agreement No. 07-31-148-01, Amendment No. 1 to
Agreement No. 07-31-148-00, with Ninyo & Moore Geotechnical;
4) Approve Agreement No. 07-31-149-02, Amendment No. 1 to
Agreement No. 07-31-149-00, with Bureau Veritas NA, Inc.;
5) Approve Agreement No. 07-31-150-02, Amendment No. 1 to
Agreement No. 07-31-150-00, with Tetra Tech to perform on -call
right-of-way phase I and phase II environmental assessment
services in the amount of $350,000 each, plus a pool contingency
of $1 million, for a total services amount of $3.138 million; and
6) Authorize the Chair, pursuant to legal counsel review, to execute
the agreements on behalf of the Commission.
8L. AGREEMENT WITH VOLT EDGE SERVICES TO PROVIDE MINOR
GENERAL, ELECTRICAL, MAINTENANCE, AND .REPAIR SERVICES FOR
THE COMMISSION -OWNED METROLINK STATIONS
Overview
This item is for the Commission to:
Page 66
1) Approve Agreement No. 08-24-087-00 with Volt Edge Services to
provide minor general, electrical maintenance, and repair services
for the five Commission -owned Metrolink stations in the amount of
$150,000; and
2) Authorize the Chair, pursuant to legal counsel review, to execute
the agreement son behalf of the Commission.
Riverside County Transportation Commission Agenda
May 14, 2008
Page 7
8M. STATE AND FEDERAL LEGISLATIVE UPDATE
Overview
This item is for the Commission to:
Page 68
1) Receive and file an update on state and federal legislation; and
2) Approve positions on the following state bills and proposition:
a) AB 3021 (Nava) — Support;
b) AB 1854 (Duvall) — Work with author;
c) Proposition 98 — Oppose.
9. AUTHORIZATION FOR ISSUANCE OF SALES TAX REVENUE BONDS
Overview
This item is for the Commission to:
Page 72
1) Receive and file the overview presentation regarding the issuance of the
2008 Series A Sales Tax Revenue Bonds;
2) Adopt Resolution No. 08-010, "Resolution Authorizing the Issuance and
Sale of Not to Exceed $130,000,000 Aggregate Principal Amount of
Riverside County Transportation Commission Sales Tax Revenue Bonds
(Limited Tax. Bonds), Series 2008, the Execution and Delivery of an
Indenture, Supplemental Indenture, Purchase Contract, Official Statement
and Continuing Disclosure Agreement and the Taking of All Other Actions
Necessary in Connection Therewith;"
3) Approve the draft Preliminary Official Statement for the issuance of
$130,000,000 in 2008 Series A Sales Tax Revenue Bonds and authorize
the Executive Director to approve and execute the issuance of the final
Official Statement;
4) Approve the draft Indenture between the Riverside County Transportation
Commission and U.S. Bank National Association, as Trustee, and authorize
the Executive Director to approve and execute the final indenture;
5) Approve the draft First Supplemental Indenture between the Riverside
County Transportation Commission and U.S. Bank National Association, as
Trustee, and authorize the Executive Director to approve and execute the
final first supplemental indenture; and
6) Approve the draft Bond Purchase Agreement between the Riverside
County Transportation Commission and Lehman Brothers, as Underwriter
Representative acting on behalf of itself and Banc of America Securities
LLC, and authorize the Executive Director to approve and execute the final
bond purchase agreement.
Riverside County Transportation Commission Agenda
May 14, 2008
Page 8
10. TRADE CORRIDORS IMPROVEMENT FUND PROGRAM OF PROJECTS AND NEXT
STEPS REPORT
Overview
Page 294
This item is for the Commission to receive an update on the Trade Corridors
Improvement Fund (TCIF) approved program of projects and Next Steps report.
11. PERRIS VALLEY LINE FREIGHT STUDY
Overview
Page 300
This item is for the Commission to receive and file a presentation on the findings
of the draft Perris Valley Line (PVL) Freight Study.
12. ITEM(S) PULLED FROM CONSENT CALENDAR AGENDA
13. COMMISSIONERS / EXECUTIVE DIRECTOR REPORT
Overview
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This item provides the opportunity for the Commissioners and the41111
Executive Director to report on attended meetings/conferences and any other
items related to Commission activities.
14. CLOSED SESSION
14A. CONFERENCE WITH LEGAL COUNSEL: ANTICIPATED LITIGATION
Pursuant to Subdivision (b) of Government Code Section 54956.9 (b).
One Case
15. ADJOURNMENT
The next Commission meeting is scheduled to be held at 9:30 a.m., Wednesday,
June 11, 2008, Board Room, County of Riverside Administrative Center,
4080 Lemon Street, First Floor, Riverside.
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RIVERSIDE COUNTY TRANSPORTATION COMMISSION MEETING
COMMISSIONER SIGN -IN SHEET
MAY 14, 2008
NAME
AGENC
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RIVERSIDE COUNTY TRANSPORTATION COMMISSION
ROLL CALL
MAY 14, 2008
Presen Absent
County of Riverside,, D'strict,I CI
County of Riverside, District II
County of Riverside, District III
County of Riverside, District IV
County of Riverside, District V
City of Banning
City of Beaumont
City of Blythe
City of Calimesa'_
City of Canyon Lake
City :of Cathedral City
City of Coachella
City of Corona
City of Desert Hot Springs
City of Hemet
City of Indian Wells
City of Indio
City of La Quinta
City of Lake Elsinore
City of Moreno Valley
City of Murrieta
City of Norco
City of Palm Desert
City of Palm Springs
City of Perris
City of Rancho Mirage
City of Riverside;
City of San Jacinto
City, of, Temecula
Governor's Appointee, Caltrans District
Riverside County Transportation Commission
TO:
FROM:
DATE:
Riverside County Transportation Commission
Jennifer Harmon, Clerk of the Board
May 5, 2008
SUBJECT: Possible Conflicts of Interest Issues —Riverside County Transportation
Commission Agenda of May 14, 2008
The May 14, 2008 Riverside County Transportation Commission agenda includes items
which may raise possible conflicts of interest. A Commission member may not
participate in any discussion or action concerning a contract or amendment if a
campaign contribution of more than $250 is received in the past 12 months from any
entity or individual listed.
Agenda Item No. 8J — Agreements with Epic Land Solutions, Inc., Real Estate Consulting and
Services, Inc., and Overland Pacific and Cutler, Inc., to Provide On -Call Property Management
Services
Consultant(s): Epic Land Solutions, Inc.
Holly Rockwell
601 Airport Drive, Suite 115
Torrance, CA 90505
Real Estate Consulting and
Services, Inc.
Paul Strader
635 E. First Street
Suite 418
Tustin, CA 92780
Overland, Pacific and Cutler, Inc.
John M. Cutler
100 W. Broadway, Suite 500
Long Beach, CA 90802
Agenda Item No. 8K - Agreements with Bryan A. Stirrat & Associates, Leighton Consulting,
Inc., Ninyo and Moore Geotechnical, Bureau Veritas NA., Inc., and Tetra Tech for On -Call
Right -of -Way Phase I and Phase ll Environmental Soil Assessment Services
Consultant(s): Bryan A. Stirrat and Associates
Greg Acosta
13670 Valley Vista Drive
Diamond Bar, CA 91765
Ninyo and Moore
Kurt Yoshii
475 Goddard, Suite 200
Irvine, CA 92618
Tetra Tech, Inc.
Javier Weckmann
348 W. Hospitality lane
San Bernardino, CA 92408-3214
Leighton Consulting, Inc.
Kris R. Lutton
41715 Enterprise Circle N.
Suite 103
Temecula, CA 92590-5661
Bureau Veritas NA., Inc.
Ed Stewart
1565 MacArthur Boulevard
Costa Mesa, CA 92626
Riverside County Transportation Commission
TO:
FROM:
DATE:
Riverside County Transportation Commission
Jennifer Harmon, Clerk of the Board
May 5, 2008
SUBJECT: Possible Conflicts of Interest Issues -Riverside County Transportation
Commission Agenda of May 14, 2008
The May 14, 2008 Riverside County Transportation Commission agenda includes items
which may raise possible conflicts of interest. A Commission member may not
participate in any discussion or action concerning a contract or amendment if a
campaign contribution of more than $250 is received in the past 12 months from any
entity or individual listed.
Agenda Item No. 8J - Agreements with Epic Land Solutions, Inc., Real Estate Consulting and
Services, Inc., and Overland Pacific and Cutler, Inc., to Provide On -Call Property Management
Services
Consultant(s): Epic Land Solutions, Inc.
Holly Rockwell
601 Airport Drive, Suite 115
Torrance, CA 90505
Real Estate Consulting and
Services, Inc.
Paul Strader
635 E. First Street
Suite 418
Tustin, CA 92780
Overland, Pacific and Cutler, Inc.
John M. Cutler
100 W. Broadway, Suite 500
Long Beach, CA 90802
Agenda Item No. 8K - Agreements with Bryan A. Stirrat & Associates, Leighton Consulting,
Inc., Ninyo and Moore Geotechnical, Bureau Veritas NA., Inc., and Tetra Tech for On -Call
Right -of -Way Phase I and Phase II Environmental Soil Assessment Services
Consultant(s): Bryan A. Stirrat and Associates
Greg Acosta
13670 Valley Vista Drive
Diamond Bar, CA 91765
Ninyo and Moore
Kurt Yoshii
475 Goddard, Suite 200
Irvine, CA 92618
Tetra Tech, Inc.
Javier Weckmann
348 W. Hospitality Lane
San Bernardino, CA 92408-3214
Leighton Consulting, Inc.
Kris R. Lutton
41715 Enterprise Circle N.
Suite 103
Temecula, CA 92590-5661
Bureau Veritas NA., Inc.
Ed Stewart
1565 MacArthur Boulevard
Costa Mesa, CA 92626
DETACH AND SUBMIT TO THE CLERK OF THE BOARD
DATE: 5 - o g
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BUSINESS ADDRESS:
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CITY ZIP CODE
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Metr_olink route headed to I-14 grove!
After 6 'h years of trying to con- you that we were not instrumental in
wince someone to purchase the vacant influencing the decision to change the
35acres near Highgrovesothis loci- route recommendation tollghgrovejust
tioncan beUsed for transportation uses, ,2dayabefore,thecommissionersmeet-
onApril 9, 2008 the Riverside County, . m& } `. .
Transportation Commiss'ionreversedits Everybody. knows about the 6_,'/s
decision and voted 24 to 0 to revise year old resolutions ofsupportfor.the
their previous Preferred routeoverthe 1-IighgroveIyletrolinklocahonfrointhe ,?
UnionPacificRRtrackatMarlborough 1-lighgroveCSA126,CityofGranOTer.
Ave. and ins -aA studyusingthesame race, CityofLomaLinda, and the Uni-
vacant35 acres we have been recom versityNeighborhoodAssociation near a
mending for many years This location VCR who oppose 2 stations close to---1
is bordered by Citrus St. on the south, getherin.their neighborhood. -
Villa St. on the north, the Perris Valley • So what? happened to make j
Line RR track on the east and the RCTC'change therrminds? 1.
BNSF RR tracks on the west and sur ` In'a letter to RCTC:dated Dec •13 {
rounded by1-lghgroveorr3sides. This -2007, from the Federal -Transit i
route would include a curved track be-: Administration's Regional Administra :.;!
tween the Perris Valley Line track and .tor, Leslie Rogers, part of the letter_
a possible new 4th main track parallel ' ;
to the present BNSF tracks or con- Finally, FTA is concerned about
nectingtothe #3main line near Citrus _ the capitol cost'estiniates and the
St. that would handle trains between . projicti cost-effectiveness Although
Penis and Riverside. the project currently warrants a
On Monday April 7; 2008, Denis "medium."rating for cost-effective
ness,' any increase in the .projects
cost could result in the project re- {
ceiving a `medium -low" cost_effec- j
tiveness rating. Thus.FTA encour- I,
ages you to undertake cost -contain -I
meet measures and value engineer- j
Cont. on page 8
Kidd and I met with RCTC's Stephanie
Wiggins, John Standiford and.Eliza
Echevarria two days prior to the
commission's decision. Our meeting
with them was to learn what the staff
recommendations would betothe com-
mission on the.following Wednesday:
After 6'h years of trying, I can assure
t
OER„OVIE HAPPEN GS
Metrolink
Continued from page 1
ing to identify further reductions
in the projects capitol cost esti-
mate':
- Cost estimates from RCTC Staff
to the commissioners on April 9th , in-
dicated there would be a $4.61 mil-
lion dollars savings to come to High -
grove instead of going over the Union
Pacific track at Marlborough Avenue.
Also, in an article that appeared, in
the Press Enterprise on the morning
ofApril 9, 2008, just before the com-
mission voted, John Standiford was
quoted as saying: "We are doing this
as a result of the input we received
from the community" and "The public
does make a difference"
Whatever the reasons -are for this
change in the position about the Perris
Valley Line route, the first step is that
this 35 acre vacant property should be
purchased for transportation uses. We
have stated this for many years. This
property is becoming a very popular
location with the new 48" water pipe
line that is being put through it,.(.see
photo on right) and the new IowaAve.
overpass that is planned near the south
west corner, and the possibility of
commuter trains going through it. But
during these planning stages there also
needs to be a new road constructed
through it to handle future growth.
On April 9, 2008, during the pub-
lic comments, Denis and I supported
the RCTC decision because the prop-
erty needs to be purchased before any
road or a track can be put through it!
"
"
A G E N D A I T E M 5
M I N U T E S
"
R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N C O M M I S S I O N
M I N U T E S
W e d n e s d a y , A p r i l 9 , 2 0 0 8
1 . C A L L T O O R D E R
T h e R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n w a s c a l l e d t o o r d e r b y
V i c e C h a i r B o b M a g e e a t 9 : 3 2 a . m . , i n t h e B o a r d R o o m a t t h e C o u n t y o f
R i v e r s i d e A d m i n i s t r a t i v e C e n t e r , 4 0 8 0 L e m o n S t r e e t , R i v e r s i d e , C a l i f o r n i a ,
9 2 5 0 1 .
2 . P L E D G E O F A L L E G I A N C E
A t t h i s t i m e , C o m m i s s i o n e r B o b B u s t e r l e d t h e C o m m i s s i o n i n a f l a g s a l u t e .
3 . R O L L C A L L
C o m m i s s i o n e r s / A l t e r n a t e s P r e s e n t C o m m i s s i o n e r s A b s e n t
S t e v e A d a m s
M a r i o n A s h l e y
R o g e r B e r g
B o b B o t t s
D a r y l B u s c h
B o b B u s t e r
C h r i s C a r l s o n
J o h n C h l e b n i k
M a r y C r a t o n
J o s e p h D e C o n i n c k
J a m a l E l s a l e h
G i n n y F o a t
E d u a r d o G a r c i a
F r a n k H a l l
T e r r y H e n d e r s o n
R o b i n L o w e
4 . P U B L I C C O M M E N T S
B o b M a g e e
E u g e n e M o n t a n e z
P a t r i c k J . M u l l a n y
Y v o n n e P a r k s
G r e g o r y P e t t i s
R o n R o b e r t s
J o h n F . T a v a g l i o n e
F r a n k W e s t
M i c h a e l H . W i l s o n
R o y W i l s o n
T h e r e w e r e n o r e q u e s t s f r o m t h e p u b l i c t o s p e a k .
R i c k G i b b s
D i c k K e l l y
G o r d o n M o l l e r
J e f f S t o n e
Riverside County Transportation Commission Minutes
April 9, 2008
Page 2
5. APPROVAL OF MINUTES - MARCH 12, 2008
M/S/C (Lowe/Carlson) to approve the minutes of March 12, 2008, as
submitted.
Abstain: Craton and M. Wilson
6. ADDITIONS/REVISIONS
There were no additions or revisions to the agenda.
7. CONSENT CALENDAR
Commissioner Roger Berg expressed support for Agenda Item 7G, "Green
RCTC Commuter Rail Station Rehabilitation and Maintenance Plan",
however, expressed concern that Metrolink stations do not have restroom
facilities and requested consideration of such facilities, stating that during a
recent trip at a Metrolink station, a number of commuters expressed this
concern.
John Standiford, Deputy Executive Director, replied that restroom facilities at
the Metrolink stations pose concerns such as cost, maintenance, and
vandalism issues. Each Metrolink train has restroom facilities and most
Metrolink commuters are not waiting for a long period of time. He explained
that the Commission has not elected to have these facilities in the past, and
could consider in future designs. He stated that Commission staff will
discuss the concern and provide a response to the Commission.
John Standiford highlighted Agenda Item 7K, "Fiscal Year 2007/08 Mid -Year
Status of Productivity improvement Program-, noting that all eight operators
have .either met or exceeded their productivity targets in the FY 2007/08
Productivity Improvement Program.
M/S/C (Adams/Lowe► to approve the following Consent Calendar
items:
7A. ANNUAL INVESTMENT POLICY REVIEW
Adopt the annual Investment Policy.
•
"
"
R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n M i n u t e s
A p r i l 9 , 2 0 0 8
P a g e 3
7 B . P O L I C Y R E G A R D I N G I N D I R E C T C O S T R E I M B U R S E M E N T S
1 ) A p p r o v e t h e p o l i c y r e g a r d i n g t h e d i s p o s i t i o n o f i n d i r e c t c o s t
r e i m b u r s e m e n t s ; a n d
2 ) A d o p t R e s o l u t i o n N o . 0 8 - 0 1 1 , " R e s o l u t i o n o f t h e R i v e r s i d e
C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n A u t h o r i z i n g t h e D i s p o s i t i o n
o f I n d i r e c t C o s t R e i m b u r s e m e n t s " .
7 C . F I S C A L Y E A R 2 0 0 7 / 0 8 M E A S U R E A C A P I T A L I M P R O V E M E N T P L A N
A M E N D M E N T F O R L O C A L S T R E E T S A N D R O A D S F O R T H E C I T Y O F
P A L M S P R I N G S
A p p r o v e t h e a m e n d m e n t t o t h e F Y 2 0 0 7 / 0 8 M e a s u r e A C a p i t a l
I m p r o v e m e n t P l a n ( C I P ) f o r l o c a l s t r e e t s a n d r o a d s f o r t h e c i t y o f P a l m
S p r i n g s ( P a l m S p r i n g s ) a s s u b m i t t e d .
7 D . F I S C A L Y E A R 2 0 0 8 - 1 2 M E A S U R E A F I V E - Y E A R C A P I T A L
I M P R O V E M E N T P L A N F O R L O C A L S T R E E T S A N D R O A D S F O R T H E
C I T Y O F D E S E R T H O T S P R I N G S
A p p r o v e t h e F Y 2 0 0 8 - 1 2 M e a s u r e A F i v e - Y e a r C a p i t a l I m p r o v e m e n t
P l a n s ( C I P ) f o r l o c a l s t r e e t s a n d r o a d s f o r t h e c i t y o f D e s e r t H o t
S p r i n g s ( D e s e r t H o t S p r i n g s ) a s s u b m i t t e d .
7 E . I N T E R S T A T E 1 5 I N T E R R E G I O N A L P A R T N E R S H I P P H A S E I I I
1 ) A p p r o v e M e m o r a n d u m o f U n d e r s t a n d i n g ( M O U ) N o .
0 8 - 6 7 - 0 9 6 - 0 0 w i t h t h e W e s t e r n R i v e r s i d e C o u n c i l o f
G o v e r n m e n t s ( W R C O G ) f o r t h e 1 - 1 5 I n t e r r e g i o n a l P a r t n e r s h i p
P h a s e I I I a c t i v i t i e s ; a n d
2 ) A u t h o r i z e t h e C h a i r , p u r s u a n t t o l e g a l c o u n s e l r e v i e w , t o
e x e c u t e t h e a g r e e m e n t o n b e h a l f o f t h e C o m m i s s i o n .
Riverside County Transportation Commission Minutes
April 9, 2008
Page 4
7F. EXCLUSIVE NEGOTIATING AGREEMENT WITH THE ALAN MRUVKA
COMPANY DBA BLUE SQUARE DEVELOPMENT GROUP FOR JOINT
DEVELOPMENT AT THE RIVERSIDE -DOWNTOWN METROLINK
STATION
1) Approve Agreement No. 07-67-154-01, Amendment No. 1 to
Agreement No. 07-67-154-00, with The Alan Mruvka Company
(TAMC) for a six-month extension for joint development at the
Riverside -Downtown Metrolink station; and
2) Authorize the Chair, pursuant to legal counsel review, to
execute the agreement on behalf of the Commission.
7G. "GREEN" RCTC COMMUTER RAIL STATION REHABILITATION AND
MAINTENANCE PLAN
1► Approve the "Green" RCTC Commuter Rail Station
Rehabilitation and Maintenance Plan (Plan) and direct staff to
implement the recommendations needed to make improvements
that increase energy efficiency, while increasing the life of the
assets at the five Riverside County commuter rail stations;
2) Allocate Public Transportation Modernization, Improvement, and
Service Enhancement Account (PTMISEA) funds in the amount
of $2,477,714 to the Commission's Commuter Rail Program;
and
3) Approve amendments to the Commission's Commuter Rail
Program FY 2007/08 Short Range Transit Plan (SRTP) and
provide a budget adjustment to reflect an increase in capital
expenditures in the amount of $2,477,714 for the Plan.
7H. NORTH MAIN CORONA SHUTTLE AGREEMENT WITH RIVERSIDE
TRANSIT AGENCY
1) Approve Agreement No. 08-25-095-00 with the Riverside
Transit Agency (RTA) to provide for additional shuttle services
to the leased satellite parking lot during construction of the
North Main Corona Metrolink parking structure; and
2) Authorize the Chair, pursuant to legal counsel review, to
execute the agreement on behalf of the Commission.
71. COMMUTER RAIL PROGRAM UPDATE
Receive and file an update on the Commuter Rail Program.
Riverside County Transportation Commission Minutes
April 9, 2008
Page 5
7J. COORDINATED PUBLIC TRANSIT -HUMAN SERVICES
TRANSPORTATION PLAN
Approve the Coordinated Public Transit -Human Services
Transportation Plan.
7K. FISCAL YEAR 2007/08 MID -YEAR STATUS OF PRODUCTIVITY
IMPROVEMENT PROGRAM
Receive and file the second quarter report indicating that all eight
transit operators either met or exceeded productivity targets in the
FY 2007/08 Productivity Improvement Program (PIP).
7L. AGREEMENTS RELATED TO THE CONSTRUCTION OF THE STATE
ROUTE 74 WIDENING AND REALIGNMENT PROJECT BETWEEN
DEXTER AVENUE IN THE CITY OF LAKE ELSINORE AND 7TH STREET
IN THE CITY OF PERRIS
1) Approve Agreement No. 99-31-302-07, Amendment No. 7 to
Agreement No. RO-9954, with SC Engineering for additional
engineering design and survey services for State Route 74
widening project between Dexter Avenue in the city of
Lake Elsinore (Lake Elsinore) and T" Street in the city of Perris
(Perris), for a base amount of $354,636 and a contingency
amount of $45,364 for a total amendment not to exceed
amount of $400,000;
2) Approve Agreement No. 08-31-092-00 to Southern California
Edison (SCE) with a revised not to exceed Commission cost of
$701,260 and a revised cost share, for the cost to relocate the
SCE facilities, between the Commission (51 %) and SCE (49%),
which was required to allow for construction of the SR-74
widening and realignment project;
3) Approve Agreement No. 04-51-030-04, Amendment No. 4 to
Agreement No. 04-51-030, with Epic Land Solutions (Epic) for
property management support services for Commission -owned
parcels for a not to exceed amount of $70,000 and contingency
amount of $10,000 for a total amendment not to exceed
amount of $80,000; and
4) Authorize the Chair, pursuant to legal counsel review, to
execute the agreements on behalf of the Commission.
•
Riverside County Transportation Commission Minutes
April 9, 2008
Page 6
7M. STATE AND FEDERAL LEGISLATIVE UPDATE
1) Receive and file an update on the State and Federal Legislation
Update; and
2) Adopt a SUPPORT position on AB 2650 (Carter).
8. PRESENTATION - SOUTHERN CALIFORNIA ASSOCIATION OF
GOVERNMENTS
Gary Ovitt, Southern California Association of Governments (SCAG)
President, provided a presentation on resolving regional challenges and
discussed the following areas:
• SCAG is the largest of nearly 700 councils of governments in the
U.S., metropolitan planning organization of 187 cities;
Region is experiencing explosive growth - 18 million people now and
24 million by 2035;
• Most congested region in the U.S. for the past two decades, freight
related emissions are causing a health crisis;
• Growth will put further demands on open space, affordable housing,
waste management, water supply, energy supply, and transportation
system;
• How to accommodate growth while maintaining or improving mobility,
economic prosperity, quality of life and sustainability with a vision for
growth, plans with measurable goals and objectives, and plans that
attract financial support;
• Three interrelated plans - 2008 Regional Comprehensive Plan (RCP),
2008 Regional Transportation Plan (RTP), and the Compass Blueprint
Projects;
• Achievement goals - results in mobility and air quality improvements;
• SCAG's current accomplishments - Release of Regional Transportation
and Comprehensive Plans and environmental impact reports,
completion of Regional Housing Needs Assessment, consensus trips to
Washington, D.C. and Sacramento, and Housing Transit and
Earthquake Preparedness conferences;
• SCAG established a group called Force for Change Committee - Bylaw
amendments to improve efficiency;
• Focused priorities - achieve approval of RTP, implement RCP, become
a regional advocacy force and prepare new business plan; and
• Internal restructuring, increased visibility, and powerful voice and
vision for the region both in Sacramento and Washington, D.C.
•
"
R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n M i n u t e s
A p r i l 9 , 2 0 0 8
P a g e 7
C o m m i s s i o n e r R o b i n L o w e t h a n k e d a n d c o m m e n d e d G a r y O v i t t f o r h i s
o u t s t a n d i n g w o r k a s P r e s i d e n t o f S C A G . S h e e x p l a i n e d t h a t M r . O v i t t h a s
b r o u g h t t h e v o i c e a n d f o r c e o f c h a n g e t o S C A G , u n d e r s t a n d i n g t h e c o n c e r n s
o f e l e c t e d o f f i c i a l a b o u t t h e d i r e c t i o n a n d l a c k o f r e p r e s e n t a t i o n o f t h e I n l a n d
E m p i r e .
G a r y O v i t t t h a n k e d C o m m i s s i o n e r L o w e f o r h e r c o m m e n t s a n d e x p r e s s e d h i s
a p p r e c i a t i o n f o r h e r e f f o r t s a s a m e m b e r o f S C A G . H e s t a t e d t h a t S C A G i s
t r y i n g t o b e c o m e m o r e r e g i o n a l i z e d a n d e x p l a i n e d t h e i m p o r t a n c e o f k e e p i n g
R i v e r s i d e C o u n t y h i g h l y i n v o l v e d a n d i n l e a d e r s h i p p o s i t i o n s .
C o m m i s s i o n e r M a r i o n A s h l e y e x p r e s s e d h i s a p p r e c i a t i o n f o r t h e p o s i t i v e
c h a n g e s t h a t h a v e b e e n i n i t i a t e d a t S C A G u n d e r M r . O v i t t ' s l e a d e r s h i p ,
n o t i n g t h e f u t u r e p o s s i b i l i t y o f a n I n l a n d E m p i r e m e t r o p o l i t a n p l a n n i n g
o r g a n i z a t i o n .
G a r y O v i t t t h a n k e d C o m m i s s i o n e r A s h l e y f o r h i s c o m m e n t s a n d s t a t e d t h a t
t h e r e h a v e b e e n d i s c u s s i o n s a b o u t c r e a t i n g a S C A G E a s t o f f i c e i n o r d e r t o
d i s c u s s c o m m o n i s s u e s w i t h R i v e r s i d e , S a n B e r n a r d i n o , a n d I m p e r i a l
C o u n t i e s .
C o m m i s s i o n e r G i n n y F o a t e x p r e s s e d s u p p o r t f o r t h e c r e a t i o n o f S C A G E a s t
a n d r e q u e s t e d t h a t m a p s u s e d i n f u t u r e p r e s e n t a t i o n s i n c l u d e t h e C o a c h e l l a
V a l l e y c i t i e s i n R i v e r s i d e C o u n t y .
C o m m i s s i o n e r S t e v e A d a m s r e q u e s t e d S C A G r e i n s t a t e t h e v i d e o
t e l e c o n f e r e n c i n g c a p a b i l i t i e s .
G a r y O v i t t c o n c u r r e d w i t h C o m m i s s i o n e r A d a m s r e q u e s t a n d s t a t e d t h a t
S C A G i s p r e s e n t l y w o r k i n g o n o f f e r i n g a d d i t i o n a l v i d e o t e l e c o n f e r e n c i n g
c a p a b i l i t i e s s o a l l t h e r e g i o n s c a n p a r t i c i p a t e i n S C A G m e e t i n g s .
9 . P R O P O S E D D E B T I S S U A N C E
T h e r e s i a T r e v i n o , C h i e f F i n a n c i a l O f f i c e r , p r o v i d e d a n o v e r v i e w o n t h e u s e o f
t h e c o m m e r c i a l p a p e r p r o g r a m a n d t h e p r o p o s e d p l a n o f f i n a n c e , a n d
d i s c u s s e d t h e f o l l o w i n g a r e a s :
" 2 0 0 8 R C T C p l a n o f f i n a n c e c o m m e r c i a l p a p e r p r o g r a m , a c t i v i t y ,
u s e s , a n d a v a i l a b i l i t y ;
" P l a n o f f i n a n c e 2 0 0 8 S a l e s t a x r e v e n u e b o n d s ;
" I n t e r i m f i n a n c i n g p r o g r a m ;
" 2 0 0 8 f i n a n c i n g o v e r v i e w ;
Riverside County Transportation Commission Minutes
April 9, 2008
Page 8
• 2009 Measure A debt service coverage and stress scenarios;
• Swap -related financing alternatives;
• Summary of issuance documents;
• Current credit markets situation; and
• Timeline.
Commissioner Adams thanked Theresia Trevino and the team of financial
consultants for their efforts and expressed support for the staff
recommendation.
Commissioner Ashley concurred with Commissioner Adams' comments.
M/S/C (Adams/Lowe) to continue efforts to develop a plan to
refinance the outstanding commercial paper.
10. REVISED LOCALLY PREFERRED TRANSIT ALTERNATIVE FOR THE PERRIS
VALLEY LINE SMALL STARTS PROJECT
Edda Rosso, Capital Projects Program Manager, provided an overview on the
locally preferred transit alternative revision for the Perris Valley Line .(PVL)
Small Starts project and she highlighted the following areas:
• Locally preferred alternative (LPA) revision for the PVL;
• San Jacinto Branch Line / 1-215 Corridor Study Alternative Analysis
1999-2004;
• Proposed transportation alternatives;
• Viable alternatives D and E;
• Previous actions;
• Recommendation — LPA Change alternative E to D;
• Basis for change to LPA; and
• Next steps.
Barney Barnett, Highgrove area resident, read from a handout dated April 9,
2008, in which he expressed support for the staff recommendation for the
revised alternative and recommended the purchase of the 35-acre property
located in Highgrove for future transportation uses. The handout was
entered into the record and sent electronically to the Commissioners.
Commissioner Adams expressed support for the staff recommendation and
motioned to approve.
Commissioner Lowe seconded the motion.
"
R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n M i n u t e s
A p r i l 9 , 2 0 0 8
P a g e 9
C o m m i s s i o n e r A s h l e y e x p r e s s e d s u p p o r t f o r t h e s t a f f r e c o m m e n d a t i o n a n d
a p p r e c i a t i o n t o B a r n e y B a r n e t t ' s f o r h i s p e r s i s t e n c e f o r a H i g h g r o v e M e t r o l i n k
s t a t i o n . H e s u g g e s t e d t h e C o m m i s s i o n l o o k i n t o a c q u i r i n g t h e 3 5 - a c r e
p r o p e r t y i n H i g h g r o v e t h a t M r . B a r n e t t r e c o m m e n d e d i n o r d e r t o p r o v i d e
o p t i o n s f o r t h e C o m m i s s i o n i n t h e f u t u r e .
C o m m i s s i o n e r B u s t e r e x p r e s s e d s u p p o r t f o r t h e r e v i s e d a l t e r n a t i v e . H e
r e c o m m e n d e d a s p a r t o f t h e m o t i o n t o i n c l u d e e x p l o r i n g o p t i o n s f o r q u i e t
z o n e s a t M t . V e r n o n A v e n u e a n d B l a i n e a n d S p r u c e S t r e e t s a n d f o r
e l e m e n t a r y s c h o o l s l o c a t e d n e a r t h e r a i l r o a d t r a c k s .
C o m m i s s i o n e r s A d a m s a n d L o w e c o n c u r r e d t o i n c l u d e C o m m i s s i o n e r
B u s t e r ' s r e c o m m e n d a t i o n i n t h e m o t i o n .
J o h n S t a n d i f o r d t h a n k e d t h e C o m m i s s i o n e r s t h a t s e r v e o n t h e S a n J a c i n t o
B r a n c h L i n e A d H o c C o m m i t t e e . T h e a d h o c c o m m i t t e e w i l l c o n t i n u e t o
m e e t r e g u l a r l y a n d t h e a g e n d a i t e m s w i l l b e f o r w a r d e d t o t h e C o m m i s s i o n a s
p a r t o f t h e e d u c a t i o n a l p r o c e s s .
M / S / C ( A d a m s / L o w e ) t o :
1 ) R e v i s e t h e L o c a l l y P r e f e r r e d A l t e r n a t i v e ( L P A �% f o r t h e P e r r i s
V a l l e y L i n e S m a l l S t a r t s p r o j e c t f r o m A l t e r n a t i v e E : C o m m u t e r
R a i l w i t h N e w C o n n e c t i o n t o U n i o n P a c i f i c ( U P ) a t R u s t i n
A v e n u e t o A l t e r n a t i v e D : C o m m u t e r R a i l w i t h N e w C o n n e c t i o n
t o B u r l i n g t o n N o r t h e r n S a n t a F e I B N S F ) a t C i t r u s A v e n u e ; a n d
2 ) A u t h o r i z e s t a f f t o e x p l o r e t h e o p t i o n o f q u i t e z o n e s .
1 1 . I T E M ( S ) P U L L E D F R O M C O N S E N T C A L E N D A R F O R D I S C U S S I O N
T h e r e w e r e n o a g e n d a i t e m s p u l l e d f r o m t h e C o n s e n t C a l e n d a r .
1 2 . C O M M I S S I O N E R S / E X E C U T I V E D I R E C T O R ' S R E P O R T
1 2 A . V i c e C h a i r M a g e e a n n o u n c e d C h a i r J e f f S t o n e ' s a p p o i n t m e n t s t o t h e
F e d e r a l A u t h o r i z a t i o n L e g i s l a t i v e A d H o c C o m m i t t e e a s f o l l o w s :
S t e v e A d a m s
B o b B o t t s
B o b B u s t e r
M a r y C r a t o n
T e r r y H e n d e r s o n
R o b i n L o w e
B o b M a g e e
J e f f S t o n e
J o h n T a v a g l i o n e
M i c h a e l W i l s o n
Riverside County Transportation Commission Minutes
April 9, 2008
Page 10
12B. John Standiford:
• Introduced Alexandra Rackerby, Administrative Support
Specialist, new employee to the Clerk of the Board staff and
Martha Durbin, new Intern to the Commuter Rail Program;
• Provided an update on the California Transportation Commission
testimony and hearing being held for the allocation of the
Transportation Corridor Infrastructure Funds (TCIF) for grade
separation projects and the testimony for the authorization of
the 1-15 high occupancy toll lanes;
• Announced the permit has been obtained from the U.S. Forest
Service for geotechnical boring in the Cleveland National Forest;
and
• Announced the Ribbon Cutting/Grand Opening Event for the Box
Springs Road and Truck Bypass Lane at SR-60/I-215 being held
on Friday, April 11 at 10:00 a.m.
13. ADJOURNMENT
There being no further business for consideration by the Riverside County
Transportation Commission, the meeting adjourned at 10:48 a.m. The next
Commission meeting is scheduled to be held at 9:30 a.m., Wednesday,
May 14, 2008, in the Board Room at the County of Riverside Administrative
Center, 4080 Lemon Street, Riverside, California, 92501.
Respectfully submitted,
01-)1"4"401-4—
Jennifer Harmon
Clerk of the Board
AGENDA ITEM 6
PUBLIC HEARING
"
R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N C O M M I S S I O N
D A T E :
M a y 1 4 , 2 0 0 8
T O :
R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n
F R O M :
B u d g e t a n d I m p l e m e n t a t i o n C o m m i t t e e
M i c h e l e C i s n e r o s , A c c o u n t i n g a n d H u m a n R e s o u r c e s M a n a g e r
T H R O U G H :
A n n e M a y e r , E x e c u t i v e D i r e c t o r
S U B J E C T :
P r o p o s e d B u d g e t f o r F i s c a l Y e a r 2 0 0 8 / 0 9
B U D G E T A N D I M P L E M E N T A T I O N C O M M I T T E E A N D S T A F F R E C O M M E N D A T I O N :
T h i s i t e m i s f o r t h e C o m m i s s i o n t o :
1 ) D i s c u s s , r e v i e w a n d p r o v i d e g u i d a n c e o n t h e p r o p o s e d B u d g e t f o r
F Y 2 0 0 8 / 0 9 ; a n d
2 ) O p e n t h e p u b l i c h e a r i n g i n o r d e r t o r e c e i v e i n p u t a n d c o m m e n t s o n t h e
p r o p o s e d F Y 2 0 0 8 / 0 9 B u d g e t o n M a y 1 4 , 2 0 0 8 , a n d o n J u n e 1 1 , 2 0 0 8 , a n d
c l o s e t h e p u b l i c h e a r i n g .
B A C K G R O U N D I N F O R M A T I O N :
S t a f f h a s c o m p l e t e d t h e i n i t i a l b u d g e t p r e p a r a t i o n p r o c e s s , a n d a t t a c h e d i s a n
e x e c u t i v e s u m m a r y f o r t h e p r o p o s e d B u d g e t f o r F Y 2 0 0 8 / 0 9 . T h e g o a l s a n d
o b j e c t i v e s a p p r o v e d b y t h e C o m m i s s i o n o n M a r c h 1 2 , 2 0 0 8 , w e r e t h e b a s i s o f t h i s
b u d g e t . T h e g o a l s a n d o b j e c t i v e s c o n s i d e r e d d u r i n g t h e p r e p a r a t i o n o f t h e b u d g e t
r e l a t e t o m o b i l i t y i n i t i a t i v e s , g o o d s m o v e m e n t , i m p r o v e d s y s t e m e f f i c i e n c i e s ,
e n v i r o n m e n t a l s t e w a r d s h i p , e c o n o m i c d e v e l o p m e n t , i n t e r m o d a l i s m a n d
a c c e s s i b i l i t y , a n d p u b l i c a n d a g e n c y c o m m u n i c a t i o n s .
S t a f f w i l l p r e s e n t h i g h l i g h t s o f s i g n i f i c a n t i t e m s i n c l u d e d i n t h e b u d g e t a n d i s
s e e k i n g r e v i e w o f a n d i n p u t o n t h e p r o p o s e d B u d g e t f o r F Y 2 0 0 8 / 0 9 . B a s e d o n
i n p u t r e c e i v e d f r o m C o m m i s s i o n e r s , s t a f f w i l l u p d a t e t h e d o c u m e n t , a s n e c e s s a r y ,
a n d p r e s e n t t h e p r o p o s e d b u d g e t f o r p u b l i c h e a r i n g a n d f o r t h e C o m m i s s i o n ' s
r e v i e w o n M a y 1 4 , 2 0 0 8 . A s a r e s u l t o f i n p u t r e c e i v e d f r o m t h e p u b l i c a n d t h e
C o m m i s s i o n , s t a f f w i l l m a k e a n y n e c e s s a r y c h a n g e s t o t h e b u d g e t d o c u m e n t f o r
f i n a l r e v i e w , c l o s e o f t h e p u b l i c h e a r i n g , a n d a d o p t i o n a t t h e J u n e 1 1 , 2 0 0 8
C o m m i s s i o n m e e t i n g .
T h e e x e c u t i v e s u m m a r y d o c u m e n t c o n t a i n s a s u m m a r y o f a l l d e p a r t m e n t a l b u d g e t s
a n d s u m m a r i z e s t h e i n f o r m a t i o n f o r t h e e n t i r e C o m m i s s i o n . T h e d e p a r t m e n t
b u d g e t s p r e s e n t t h e g o a l s a n d o b j e c t i v e s , t h e r e s o u r c e s n e e d e d t o a c c o m p l i s h t h e
A g e n d a I t e m 6
1
goals, and the appropriations required to accomplish the tasks. Staff has also
included the fund budgets that provide the budgeted revenues and expenditures
from a fund perspective.
At the June 11, 2008 Commission meeting, staff will present the entire budget
with detailed narratives.
A summary of the proposed Budget for FY 2008/09 is as follows:
FY 2008/09 Budget
Revenues and other financing sources:
Sales taxes -Measure A and Local Transportation Funds $ 215,579,000.
Reimbursements (federal, state, and other) 75,950,400
Transportation Uniform Mitigation Funds 7,730,000
State Transit Assistance 22,992,600
Other revenues 1,927,200
Interest on investments 8,217,000
Commercial paper proceeds 110,000,000
Transfers in 76,600,200
Total revenues and other financing sources 518,996,400
Expenditures and other financing uses:
Personnel salary and fringe benefits 6,743,000
Professional services 6,854,300
Support services 4,843,500
Projects and operations 530,874,300
Capital outlay 890,000
Debt service (principal, interest and costs of issuance) 45,590,100
Transfers out 76,600,200
Total expenditures and other financing uses
Excess (deficiency) of revenues and other financing
sources over (under) expenditures and other financing
uses
Beginning fund balance
Ending fund balance
672,395,400
(153,399,000)
489,006, 600
335, 607, 600
Attachment: FY 2008/09 Proposed Budget Executive Summary
Agenda Item 6
2
"
"
E x e c u t i v e S u m m a r y
I n t r o d u c t i o n
T h e b u d g e t f o r F i s c a l Y e a r ( F Y ) 2 0 0 8 / 0 9 i s p r e s e n t e d t o t h e B o a r d o f C o m m i s s i o n e r s
! ( B o a r d ) a n d t h e c i t i z e n s o f R i v e r s i d e C o u n t y . T h e b u d g e t o u t l i n e s t h e p r o j e c t s t h e
C o m m i s s i o n p l a n s t o u n d e r t a k e d u r i n g t h e y e a r a n d a p p r o p r i a t e s e x p e n d i t u r e s t o
a c c o m p l i s h t h e s e t a s k s . T h e b u d g e t a l s o s h o w s t h e f u n d i n g s o u r c e s a n d f u n d b a l a n c e s
; t h a t w i l l b e u s e d f o r t h e s e p r o j e c t s . T h i s d o c u m e n t w i l l s e r v e a s t h e C o m m i s s i o n ' s
m o n e t a r y g u i d e l i n e . T o p r o v i d e t h e r e a d e r a b e t t e r u n d e r s t a n d i n g o f t h e p r o j e c t s , s t a f f h a s
' i n c l u d e d d e s c r i p t i v e i n f o r m a t i o n r e g a r d i n g e a c h d e p a r t m e n t a n d m a j o r p r o j e c t s . T h e
d i s c u s s i o n i n e a c h d e p a r t m e n t i n c l u d e s a r e v i e w o f m a j o r i n i t i a t i v e s a n d k e y a s s u m p t i o n s .
S t a f f u s e d t h e g o a l s a n d o b j e c t i v e s a p p r o v e d a t t h e C o m m i s s i o n m e e t i n g o n M a r c h 1 2 ,
2 0 0 8 , t o p r e p a r e t h i s b u d g e t . I n a d d i t i o n t o t h e C o m m i s s i o n ' s l o n g - t e r m g o a l s a n d s t r a t e g i c
p l a n , t h e s h o r t - t e r m f a c t o r s l i s t e d b e l o w w e r e u s e d t o g u i d e t h e d e v e l o p m e n t o f t h e b u d g e t :
! O p e r a t i o n a l
" C o m p l e t e p r o j e c t s a n d p r o g r a m s i n c l u d e d i n t h e 1 9 8 9 M e a s u r e A a n d d e t e r m i n e u s e
f o r u n e x p e n d e d r e v e n u e s .
" A g g r e s s i v e l y i m p l e m e n t t h e e n v i r o n m e n t a l p r o c e s s o n k e y c o m p o n e n t s o f t h e 2 0 0 9
i M e a s u r e A 1 0 - Y e a r W e s t e r n R i v e r s i d e C o u n t y H i g h w a y D e l i v e r y P l a n ( 1 0 - Y e a r
W e s t e r n C o u n t y H i g h w a y D e l i v e r y P l a n ) .
" D e v e l o p t h e t o l l p r o g r a m c o n s i s t e n t w i t h t h e 1 0 - Y e a r W e s t e r n C o u n t y H i g h w a y
D e l i v e r y P l a n i n c l u d i n g o b t a i n i n g t o l l a u t h o r i t y f o r s e l e c t p r o j e c t s .
" W o r k c l o s e l y w i t h l o c a l j u r i s d i c t i o n s t o i m p l e m e n t t h e F Y 2 0 0 7 - 2 0 0 9 T r a n s p o r t a t i o n
U n i f o r m M i t i g a t i o n F e e ( T U M F ) R e g i o n a l A r t e r i a l P r o g r a m a n d f a c i l i t a t e t h e d e l i v e r y
o f a r t e r i a l i m p r o v e m e n t s i n w e s t e m R i v e r s i d e C o u n t y ( W e s t e r n C o u n t y ) .
" C i r c u l a t e t h e p r o j e c t l e v e l e n v i r o n m e n t a l d o c u m e n t s f o r t h e M i d C o u n t y P a r k w a y a n d
t h e S R - 7 9 r e a l i g n m e n t p r o j e c t .
" C o n t i n u e t o w o r k w i t h t h e R e g i o n a l C o n s e r v a t i o n A u t h o r i t y ( R C A ) t o i m p l e m e n t t h e
M u l t i - S p e c i e s H a b i t a t C o n s e r v a t i o n P l a n ( M S H C P ) a n d a s s i s t i n t h e a s s e m b l y o f t h e
r e s e r v e s y s t e m .
" C o n t i n u e c o o p e r a t i o n w i t h t h e F e d e r a l T r a n s i t A d m i n i s t r a t i o n ( F T A ) r e g a r d i n g t h e
S m a l l S t a r t s p r o c e s s t o s u p p o r t p r o j e c t d e v e l o p m e n t a c t i v i t i e s f o r t h e P e n i s V a l l e y
L i n e M e t r o l i n k e x t e n s i o n p r o j e c t ( P e n i s V a l l e y L i n e ) .
" I m p r o v e u t i l i z a t i o n a n d i n c r e a s e e f f i c i e n c y o f c o m m u t e r r a i l l i n e s s e r v i n g t h e C o u n t y .
" S u p p o r t i n n o v a t i v e p r o g r a m s w h i c h p r o v i d e t r a n s i t a s s i s t a n c e i n h a r d t o s e r v e r u r a l
a r e a s o r f o r r i d e r s w i t h s p e c i a l t r a n s i t n e e d s .
" P r o m o t e p r o g r a m e f f i c i e n c y a n d h a r m o n y b e t w e e n t r a n s i t o p e r a t o r s .
" M a i n t a i n e f f e c t i v e p a r t n e r s h i p s a m o n g c o m m u t e r s , e m p l o y e r s , a n d g o v e r n m e n t t o
i n c r e a s e t h e e f f i c i e n c y o f o u r t r a n s p o r t a t i o n s y s t e m b y e n c o u r a g i n g a n d p r o m o t i n g
t r a n s p o r t a t i o n a l t e r n a t i v e s .
" C o n t i n u e t o p r o v i d e a m o t o r i s t a i d s y s t e m t h a t e n s u r e s s a f e t y a n d c o n v e n i e n c e t o
f r e e w a y m o t o r i s t s .
" M a i n t a i n c l o s e c o m m u n i c a t i o n w i t h C o m m i s s i o n e r s a n d e d u c a t e p o l i c y m a k e r s o n a l l
i s s u e s o f i m p o r t a n c e t o t h e C o m m i s s i o n .
3
Financial
• Maintain administrative program delivery costs below the policy threshold of 4% of
Measure A revenues. The current Management Services budget is 2.84% of
Measure A revenues.
• Maintain administrative salaries and benefits at less than 1 % of Measure A revenues.
The current administrative salaries and benefrts is .99% of Measure A revenues.
• Continue to maintain prudent cash reserves to provide some level of insulation for
unplanned expenditures.
• Maintain current positive bond ratings with rating agencies.
• Move forward on Measure A projects for highways and regional arterials using sales
tax revenues, TUMF revenues, and state and federal funding as well as financing
alternatives such as commercial paper, sales tax revenue bonds, and innovative
financing strategies.
• Look for opportunities, funding sources, and innovative approaches to address
transportation needs that extend beyond Measure A.
• Leverage and protect past Measure A investments in rail with state and federal
funding for additional rail improvements, including the Perris Valley Line.
;Budget Overview
!Chart 1 — Revenues: Major Categories
Other Revenue
1%
TUMF Revenue
2% Measure A Sales
Tax
41%
Investment IMMO
29:
Intergovernmental
30%
I.TF "•ales Tax
24%
Total revenues are budgeted at $332,396,200 which is an increase of 24.0% over FY
.2007/08 projected revenues and a 6.0% increase over the FY 2007/08 budget. The
projected fund balance at June 30, 2008 available for expenditures (excluding reserves for
'debt service of $32,475,500 and loans receivable of $11,273,100) is $445,258,000. Total
funding sources available for the FY 2008/09 budget, including commercial paper proceeds
of $110,000,000, amount to $887,654,200..
•
4
"
"
"
C h a r t 2 - C o m m i s s i o n R e v e n u e T r e n d
$ 4 0 0 , 0 0 0 , 0 0 0
S S S 0 , 0 0 0 , 0 0 0
$ 3 0 0 , 0 0 0 , 0 0 0
5 2 5 0 , 0 0 0 , 0 0 0
S 2 0 0 , 0 0 0 , 0 0 0
$ 1 0 0 , 0 0 0 , 0 0 0
$ 1 0 0 , 0 0 0 , 0 0 0
S 5 0 . 0 0 0 . 0 0 0
F Y 0 6 / 0 7
F Y 0 7 / 0 8
F I S C A L Y E A R S
F Y n e m
� I n v e s t m e n t I n c o m e
�% O t h e r R e v e n u e
O N W R e v e n u e
O l n l e r m 0 v e m m e n t a l
�% L T F S a l e s T a x
� M e a s u r e A S a l e s T a x
' T h e S t a t e B o a r d o f E q u a l i z a t i o n h a s p r o v i d e d c i t i e s a n d o t h e r a g e n c i e s i t s p r o j e c t i o n s f o r
s t a t e w i d e t a x a b l e s a l e s o v e r t h e n e x t f i s c a l y e a r t o i n c r e a s e 3 . 8 % ; h o w e v e r , t h e l o c a l
e c o n o m y h a s b e e n s i g n i f i c a n t l y i m p a c t e d b y t h e h o u s i n g c r i s i s . A s a r e s u l t p o p u l a t i o n a n d
j o b g r o w t h h a v e s l o w e d d o w n , a n d M e a s u r e A a n d L T F s a l e s t a x r e v e n u e s a n d T U M F f e e s
h a v e d e c l i n e d . T h e o u t l o o k f o r 2 0 0 9 i s m i x e d w h e n c o m p a r e d t o t h e e c o n o m i c d i f f i c u l t i e s
b e i n g e x p e r i e n c e d i n 2 0 0 8 _
T h i s e c o n o m i c s l o w d o w n w a s n o t a n t i c i p a t e d i n t h e 2 0 0 6 U C L A A n d e r s o n F o r e c a s t o f
{ t a x a b l e s a l e s r e v e n u e s f o r R i v e r s i d e C o u n t y t h r o u g h t h e 2 0 0 9 M e a s u r e A ; a c c o r d i n g l y , t h e
C o m m i s s i o n h a s r e v i s e d t h e l o n g r u n f o r e c a s t t o i n c l u d e t h e c u r r e n t d e c l i n e i n s a l e s t a x
r e v e n u e s . A f t e r t a k i n g t h e s e e c o n o m i c f a c t o r s a n d t h e s t a t e o f t h e l o c a l e c o n o m y i n t o
c o n s i d e r a t i o n , s t a f f h a s p r o j e c t e d t h a t M e a s u r e A s a l e s t a x r e v e n u e s w i l l b e c o m p a r a b l e t o
t h e F Y 2 0 0 7 / 0 8 r e v i s e d b u d g e t .
; O n b e h a l f o f t h e C o u n t y , t h e C o m m i s s i o n a d m i n i s t e r s t h e L T F f o r p u b l i c t r a n s p o r t a t i o n
! n e e d s , l o c a l s t r e e t s a n d r o a d s , a n d b i c y c l e a n d p e d e s t r i a n f a c i l i t i e s . T h e m a j o r i t y o f L T F
f u n d i n g r e c e i v e d b y t h e C o u n t y a n d a v a i l a b l e f o r a l l o c a t i o n i s d i s t r i b u t e d t o a l l t r a n s i t
o p e r a t o r s i n t h e . C o u n t y , a n d t h e C o m m i s s i o n r e c e i v e s a l l o c a t i o n s f o r a d m i n i s t r a t i o n ,
! p l a n n i n g , a n d p r o g r a m m i n g i n a d d i t i o n t o f u n d i n g f o r r a i l o p e r a t i o n s i n c l u d e d i n t h e
c o m m u t e r r a i l S h o r t R a n g e T r a n s i t P l a n ( S R T P ) . T h e L T F s a l e s t a x r e v e n u e r e c e i v e d f r o m
t h e s t a t e i s b u d g e t e d b a s e d o n t h e L T F s a l e s t a x r e v e n u e p r o j e c t i o n s , w h i c h a r e p r o j e c t e d
t o r e m a i n f l a t w i t h t h e F Y 2 0 0 7 / 0 8 r e v i s e d e s t i m a t e a s a r e s u l t o f t h e s t a t e o f t h e l o c a l
e c o n o m y . T h e 9 . 9 % d e c r e a s e i n L T F f u n d i n g i s r e l a t e d p r i m a r i l y t o a n F Y 2 0 0 7 / 0 8
a l l o c a t i o n f o r g r a d e s e p a r a t i o n j u m p s t a r t f u n d i n g a w a r d s .
I n t e r g o v e r n m e n t a l r e v e n u e s i n c l u d e S T A t r a n s i t a l l o c a t i o n s a n d f e d e r a l , s t a t e , a n d l o c a l
r e i m b u r s e m e n t r e v e n u e s .
S T A f u n d s a r e g e n e r a t e d f r o m t h e s t a t e w i d e s a l e s t a x o n m o t o r v e h i c l e f u e l a n d a r e
a l l o c a t e d b y f o r m u l a b y t h e S t a t e C o n t r o l l e r t o t h e C o m m i s s i o n f o r a l l o c a t i o n s t o t h e
5
County's public transit operators. The STA transit allocation budgeted for FY 2008/09
reflects a 135.2% increase over FY 2007/08.
Reimbursement revenues are expected to increase 55.4% compared to the prior year
budget; however, only 35.7% of the prior year budget amount is projected to be realized as
revenue in FY 2007/08 as a result of specific capital project activities. The decrease in FY
2007/08 projected revenues is primarily related to federal reimbursements for project
development of certain capital projects that have been rebudgeted in FY 2008/09. For FY
2008/09, federal and state sources; will partially fund rail capital projects including the Perris
Valley Line, Perris multimodal facility, North Main Corona station parking structure, and
'station rehabilitation as well as highway capital projects including the. State Route (SR) 60
East Junction to Interstate (I) 215 high occupancy vehicle (HOV) lanes connector, SR-79
realignment, SR-91/SR-71 connectors, SR-91 HOV lanes/Adams Street to SR-60/,SR-91/I-
215 interchange, and 1-215 projects. Additionally, federal funds are supporting the
geotechnical studies related to the Irvine -Corona Expressway, a Community Environmental
Transportation Acceptability Process (CETAP) corridor. State funds will also reimburse
[planning and programming activities and Motorist Assistance services. Federal and state
reimbursements also pertain to various Commuter Assistance programs.
As a result of a Memorandum of Understanding (MOU) with the Western Riverside Council
;of Governments (WRCOG), the Commission will receive approximately 48% of TUMF
through June 30, 2009, and, in accordance with the 2009 Measure A, thereafter at 100%,
after deduction of an administrative fee, up to an aggregate of $400 million. TUMF
represents fees assessed on new residential and commercial development in Western
County. FY 2008/09 TUMF fees are expected to decrease to $5,000,000 based. on a
weakened housingmarket in the Inland Empire.
Other revenue consists of miscellaneous revenues and is projected .to decrease 34.6% from
the prior year's budget primarily as a result of the decrease in the TUMF regional transit
facilities contribution for the Perris multimodal facility. Investment income is anticipated to
decrease 51.9%d in FY 2008/09 as a result of declining interest rates as well as declining
cash balances. Staff continues to actively manage its resources and make appropriate
investments to maximize the return to the Commission without sacrificing security and
affecting short-term cash requirements.
(Table 1 — Revenues FY 2007-2009
FY 06107 FY 07/08
Actual Revised Budget
Measure A Sales Tax
LTF Sales Tax
Intergovernmental
TUMF Revenue
Other Revenue
Investment Income
TOTAL Revenues
$ 154,539,800 $
85,293,200
26,1346,700
40,757,200
6,415,500
23.897.400
135.000,000 $
89,388.600
59.149,800
10,000,000
2.947,900
17 096 700
336.949.600 5 313,583 000
FY 07108
Projected
135,000,000 3
78,153,700
28,339,800
10,305,700
2,002.100
14 175 700
$ 267.97Z000
FY 08/09
Budget
135,000.000 $
80,579,000
98,943,000
7,730.000
1,927,200
8.217 000
Dollar
Change
(8,809.600)
39,793,200
(2,270,000)
(1,020,700)
(8 879.7001
Percent
Change
0.0%
-9.9%
67.3%
-22.7%
-34.6%
h1.9%
3 332 396 21212 ,j„_, t 8 811 2(t0 6.0%
6
"
"
"
C h a r t 3 E x p e n d i t u r e s : M a j o r C a t e g o r i e s
R e g i o n a l I s s u e s
0 %
M a n a g e m e n t S e r v i c e s
1 %
D e b t S e r v i c e
8 %
R e g i o n a l A r t e r i a l s -
C o a c h e l l a V a N e y
1 %
L o c a l S t r e e t s a n d
R o a d s
8 %
P l a n n i n g a n d -
P r o g r a m m i n g
1 %
C a p i t a l H i g h w a y ,
R e g i o n a l A r t e r i a l , a n d
R a i l
6 1 %
R a i l
2 %
R i g h t o f W a y
M a n a g e m e n t
0 %
S p e c i a l i z e d T r a n s i t
1 %
T r a n s i t
1 5 %
C o m m u t e r A s s i s t a n c e
1 %
M o t o r i s t A s s i s t a n c e
1 %
T o t a l e x p e n d i t u r e s a r e b u d g e t e d a t $ 5 9 5 , 7 9 5 , 2 0 0 , a n i n c r e a s e o f 1 . 5 % f r o m t h e p r i o r y e a r
; b u d g e t a m o u n t o f $ 5 8 7 , 0 4 3 , 3 0 0 . P r o g r a m e x p e n d i t u r e s t o t a l i n g $ 5 4 4 , 5 9 7 , 1 0 0 r e p r e s e n t
1 9 1 . 4 % o f t o t a l b u d g e t e d e x p e n d i t u r e s i n F Y 2 0 0 8 / 0 9 . P r o g r a m c o s t s h a v e i n c r e a s e d s l i g h t l y
j b y 1 . 0 % f r o m $ 5 3 9 , 1 8 2 , 1 0 0 i n F Y 2 0 0 7 / 0 8 .
S i g n i f i c a n t h i g h w a y p r o j e c t s i n c l u d e S R - 9 1 H i g h O c c u p a n c y T o l l ( H O T ) a n d m i x e d f l o w
l a n e s , S R - 9 1 / S R - 7 1 c o n n e c t o r s , 1 - 1 5 c o r r i d o r a n d H O T l a n e s p r o j e c t , a n d 1 - 2 1 5 p r o j e c t s
e n g i n e e r i n g ; S R - 9 1 N a n B u r e n a n d S R - 9 1 / L a S i e r r a i n t e r c h a n g e i m p r o v e m e n t s
c o n s t r u c t i o n ; S R - 6 0 E a s t J u n c t i o n t o 1 - 2 1 5 H O V l a n e s c o n n e c t o r , S R - 7 9 r e a l i g n m e n t , a n d
! M i d C o u n t y P a r k w a y r i g h t o f w a y a c q u i s i t i o n a n d e n g i n e e r i n g ; S R - 9 1 H O V l a n e s / A d a m s
! S t r e e t t o S R - 6 0 / S R - 9 1 / 1 - 2 1 5 i n t e r c h a n g e r i g h t o f w a y a c q u i s i t i o n a n d c o n s t r u c t i o n ; a n d S R -
1 1 1 a n d S R - 8 6 c i t y p r o j e c t s e n g i n e e r i n g a n d c o n s t r u c t i o n . A d d i t i o n a l l y , a s a r e s u l t o f t h e
c o m m e r c i a l p a p e r p r o g r a m , a d v a n c e f u n d i n g f o r p r o j e c t s i n c l u d e d i n t h e 2 0 0 9 M e a s u r e A
i n c l u d e l a n d a c q u i s i t i o n f o r t h e M S H C P i n W e s t e r n C o u n t y a n d C o a c h e l l a V a l l e y . A p p r o v e d
! r e g i o n a l a r t e r i a l p r o j e c t s w i l l b e i n v a r i o u s p h a s e s o f e n g i n e e r i n g , c o n s t r u c t i o n , a n d r i g h t o f
w a y . R i g h t o f w a y a c q u i s i t i o n a n d p r e l i m i n a r y e n g i n e e r i n g f o r t h e P e r r i s V a l l e y L i n e a s w e l l
a s t h e c o n s t r u c t i o n o f t h e N o r t h M a i n C o r o n a s t a t i o n p a r k i n g s t r u c t u r e a n d P e r r i s
m u l t i m o d a l f a c i l i t y w i l l b e s i g n i f i c a n t r a i l c a p i t a l p r o j e c t s i n F Y 2 0 0 8 / 0 9 .
D e b t S e r v i c e o f $ 4 5 , 5 9 0 , 1 0 0 h a s i n c r e a s e d s l i g h t l y a s a r e s u l t o f t h e i s s u a n c e o f t h e 2 0 0 8
s a l e s t a x r e v e n u e b o n d s t o r e f i n a n c e t h e o u t s t a n d i n g c o m m e r c i a l p a p e r i n F Y 2 0 0 7 / 0 8
c o m b i n e d w i t h n e w i s s u a n c e s o f c o m m e r c i a l p a p e r .
M a n a g e m e n t S e r v i c e s e x p e n d i t u r e s o f $ 5 , 6 0 8 , 0 0 0 h a v e d e c r e a s e d 0 . 5 % c o m p a r e d t o t h e
F Y 2 0 0 7 / 0 8 b u d g e t .
7
Table 2 - Program Expenditures FY 2007-2009
. FY 06/07 FY 07/08 FY 07g8 FY 08109 Dollar Percent
Actual - Revised Budget-Pm)ected Budget Charge Change
Management Services $ 4,792,400 $ 5,635,300 $ 4563.460 $ 5,608,000 $ (27,300) -0.5%
-Regional Issues 380.500 893,100 79020D. 915.600 27,300 2.5%
Planning and Programming 3.439.900 8,977,500 1,741,800 6,168,000 (2,809,500) -31.3%
Rail 7,897,300 9.034,100 8,601.600 9,122,t00 88,000 7.0%
Right of Way Management 632,000 1,162,500 6193300 1,212,000 49,50D 4.3%
Specialized Transit 6,358,200 6,323$00 5257,100 7,955,400 t,631.900 25:8%
Transit 74,370.100 96,0132013 91.459.200 89.004.500 '(7.006.70D) -7.3%
Commuter Assistance 3.107.500 6,450,300 3,146,400 6.487,500 37,200 0.6%
Motorist Assistance Z408,600 5.184,100 4204.400 3,320„500 (1,963,600) -35.9%
Capital Highway, Regional AHedal,and Rail 81,706,100 34?,54d,700 142,322,100 361,544,900 19,OD020D 5S%
Local Streets and Roads 59,196,800 50,087,500 50.087.500 50.085300 (2200) 0.0%
Regional Arterials- Coachella Valley 9,738,500 12511,600 13,215,600 8,701,300 (3,730,300) -29.8%
Debt Service 36790500 42 225 900 150.723.300 45.590.100 3.364200 =O.
TOTAL $ NO 21 a 411LI S SA7 04A AM $ 477 13/ WA S 595745 9m1 $ 8 751 90Q L51
Note: Management Services include Executive Management, Administration, Legislative Affairs and Communications, and Finance.
Commission Personnel
The Commission's salary and fringe benefits total $6,743,000 for FY 2008/09. This
represents a decrease of 11.2% or $846,400 over the FY 2007/08 budget of $7,589,400.
The Commission has set aside a pool of 3% for salary increases in FY 2008/09. The Full
Time Equivalent (FTE) of 45.0 FTE positions is comparable to the FY 2007/08 level. The
decrease in salary and fringe benefits is related to the prefunding of the postretirement
health benefits accrued liability in FY 2007/08 as well as decreases in the CaIPERS
employer contribution rate and the worker's compensation premiums.
Table 3 - Staff summary by Department FY 2007-2009
FY 06/07 FY 07/08 FY 08/09
FTE FTE FTE
I Executive Management 1.6 1.5 0.7
I Administration 4.7 4.9 4.6
, Legislative Affairs and Communications 2.4 2.7 2.6
Finance 6.1 6.3 6.6
Regional Issues 1.2 2.2 2.0
Planning and Programming 5.3 4.9 3.8
Rail 2.8 2.4 2,9
Right of Way Management 2.0 1.1 1.4
I Specialized Transit OA 0.8 1.0
Transit 2.0 1.8 1.7
Commuter Assistance 1.5 1.4 1.8
Motorist Assistance 0.7 1.4 1.7
Capital Project Development and Delivery 443 12.6 14.2
TOTAL 35.0 44.0 45.0
Department Initiatives
The preparation of each department's budget was based on key assumptions,
accomplishments in FY 2007/08, major initiatives for FY 2008/09, and department goals
and related objectives. Following are the key initiatives and summary of expenditures for
each department.
Executive Management
• Continue project development and delivery as the key Measure A priority.
8
"
"
" E x p l o r e c r e a t i v e f i n a n c i n g o p p o r t u n i t i e s d u e t o t h e i m p a c t o f t h e S t a t e ' s g e n e r a l f u n d
a n d b u d g e t a r y i s s u e s o n t r a n s p o r t a t i o n f u n d i n g .
" M a i n t a i n r e g i o n a l c o o p e r a t i o n a n d c o l l a b o r a t i o n a s a s i g n i f i c a n t e f f o r t c o n s i s t e n t w i t h t h e
p h i l o s o p h y a n d m i s s i o n o f t h e C o m m i s s i o n .
" E n h a n c e e x t e m a l c o m m u n i c a t i o n s w i t h m e d i a , b u s i n e s s , c i v i c g r o u p s a n d t h e
c o m m u n i t y .
" M a i n t a i n a n d i m p r o v e a d m i n i s t r a t i v e e f f i c i e n c y a n d f i s c a l l y s o u n d p r a c t i c e s .
" C o n t i n u e t o b e c o m p e t i t i v e i n t h e e m p l o y m e n t m a r k e t a n d p r o v i d e s t a f f t r a i n i n g a n d
d e v e l o p m e n t o p p o r t u n i t i e s t o e n h a n c e s k i l l s , p r o d u c t i v i t y , a n d v a l u e .
T a b l e 4 E x e c u t i v e M a n a g e m e n t
P r o g r a m F Y 0 6 / 0 7 F Y 0 7 / 0 8 F Y 0 7 / 0 8 F Y 0 8 / 0 9
C o s t s A c t u a l R e v i s e d B u d g e t P r o j e c t e d B u d g e t
P e r s o n n e l
P r o f e s s i o n a l
S u p p o r t
T O T A L
l A d m i n i s t r a t i o n
I .
"
$ 2 6 9 , 7 0 0 $
4 7 , 6 0 0
4 4 , 8 0 0
$ 3 6 2 . 1 0 0 $
2 6 3 , 7 0 0 $ 2 7 0 , 8 0 0 $ 1 3 1 , 8 0 0
8 0 , 0 0 0 6 7 , 0 0 0 7 5 , 0 0 0
3 2 , 6 0 0 3 4 , 0 0 0 3 8 , 7 0 0
3 7 6 , 3 0 0 $ 3 7 1 , 8 0 0 $ 2 4 5 , 5 0 0
D o l l a r
C h a n g e
$ ( 1 3 1 , 9 0 0 )
( 5 , 0 0 0 )
6 , 1 0 0
$ ( 1 3 0 , 8 0 0 )
P e r c e n t
C h a n g e
- 5 0 . 0 %
- 6 . 3 %
1 8 . 7 %
- 3 4 . 8 %
P r o v i d e h i g h q u a l i t y s u p p o r t t o t h e C o m m i s s i o n a n d t o i n t e r n a l a n d e x t e r n a l c u s t o m e r s .
C o n t i n u e t o s t r e n g t h e n t h e e l e c t r o n i c r e c o r d s m a n a g e m e n t s y s t e m t o i m p r o v e t h e
C o m m i s s i o n ' s r e c o r d k e e p i n g c a p a b i l i t i e s .
C o n t i n u e e f f o r t s t o s u p p o r t s t a f f r e g a r d i n g t h e D i s a d v a n t a g e d B u s i n e s s E n t e r p r i s e
( D B E ) p r o g r a m f o r f e d e r a l l y f u n d e d c a p i t a l c o n s t r u c t i o n p r o j e c t s .
C o n t i n u e t o p r o v i d e t i m e l y c o m m u n i c a t i o n s t o C o m m i s s i o n e r s w i t h c o n t i n u e d e m p h a s i s
o n t h e u t i l i z a t i o n o f e l e c t r o n i c m a i l .
C o n t i n u e t o u p d a t e t e c h n o l o g y t o s t r e a m l i n e p r o c e s s e s a n d p r o v i d e e a s i e r a c c e s s t o
C o m m i s s i o n r e c o r d s .
" S u p p o r t a n d d e v e l o p a m o t i v a t e d w o r k f o r c e w i t h a f r a m e w o r k o f a c t i v i t i e s a n d p r a c t i c e s
t h a t a r e i n c o m p l i a n c e w i t h e m p l o y m e n t l a w s a n d r e g u l a t i o n s .
; T a b l e 5 A d m i n i s t r a t i o n
_ P r o g r a m F Y 0 6 / 0 7
l C o s t s A c t u a l
F Y 0 7 / 0 8 F Y 0 7 / 0 8 F Y 0 8 / 0 9
R e v i s e d B u d g e t P r o j e c t e d B u d g e t
D o l l a r P e r c e n t
C h a n g e C h a n g e
' P e r s o n n e l $ 3 5 6 , 7 0 0 $ 4 6 4 , 7 0 0 $ 3 6 4 . 9 0 0 $ 4 4 4 , 0 0 0 $ ( 1 0 , 7 0 0 ) - 2 . 4 %
i P r o f e s s i o n a l 7 9 , 9 0 0 9 7 , 2 0 0 9 2 , 1 0 0 8 6 , 0 0 0 ( 1 1 , 2 0 0 ) - 1 1 . 5 %
S u p p o r t 1 , 0 7 1 , 2 0 0 1 , 3 7 5 , 2 0 0 1 , 4 1 8 , 1 0 0 1 , 4 7 1 , 4 0 0 9 6 , 2 0 0 7 . 0 %
I C a p i t a l O u t l a y 9 , 0 0 0 3 2 2 , 0 0 0 1 2 , 3 0 0 3 5 0 , 0 0 0 2 8 , 0 0 0 8 . 7 %
D e b t S e r v i c e 2 6 , 1 0 0 - - - N / A
T O T A L $ 1 - 5 , 4 2 , 9 0 0 , $ 2 . 2 4 9 . 1 0 0 1 1 . 4 8 7 A 0 0 5 2 . 3 5 1 4 0 1 I $ 1 0 2 3 9 9 4 . 5 c Y Q
L e g i s l a t i v e A f f a i r s a n d C o m m u n i c a t i o n s
" C o n t i n u e e f f o r t s t o s e e k g r e a t e r s t a t e a n d f e d e r a l i n v e s t m e n t i n t r a n s p o r t a t i o n
i n f r a s t r u c t u r e .
" A d v o c a t e p o s i t i o n s i n t h e S t a t e L e g i s l a t u r e a n d C o n g r e s s t h a t a d v a n c e t h e C o u n t y ' s
t r a n s p o r t a t i o n i n t e r e s t s , e s p e c i a l l y t h o s e r e l a t e d t o t h e i m p l e m e n t a t i o n o f H O T l a n e s o n
S R - 9 1 a n d 1 - 1 5 a s w e l l a s t h e P e r r i s V a l l e y L i n e .
" C o n t i n u e t o d e v e l o p a b r o a d p u b l i c i n f o r m a t i o n p r o g r a m r e g a r d i n g t h e C o m m i s s i o n ' s
r e s p o n s i b i l i t i e s a n d a c c o m p l i s h m e n t s t h r o u g h a v a r i e t y o f m e d i a f o r m a t s .
9
" C o n t i n u e t o p l a c e a n e m p h a s i s o n p r o v i d i n g c o m m u n i c a t i o n s s u p p o r t r e l a t e d t o m a j o r
p r o j e c t d e v e l o p m e n t e f f o r t s .
" P r o v i d e n e w C o m m i s s i o n e r o r i e n t a t i o n m e e t i n g s a n d o t h e r c o n t i n u i n g e d u c a t i o n
o p p o r t u n i t i e s f o r C o m m i s s i o n e r s .
T a b l e 6 L e g i s l a t i v e A f f a i r s a n d C o m m u n i c a t i o n s
P r o g r a m F Y 0 6 / 0 7 F Y 0 7 / 0 8
C o s t s A c t u a l R e v i s e d B u d g e t
F Y 0 7 / 0 8 F Y 0 8 / 0 9 D o l l a r P e r c e n t . .
P r o j e c t e d B u d g e t C h a n g e C h a n g e
' P e r s o n n e l $ 2 9 8 , 8 0 0 $ 3 7 2 , 8 0 0 $ 3 2 7 , 1 0 0 $ 3 9 0 , 0 0 0 $ 1 7 , 2 0 0 4 . 6 %
P r o f e s s i o n a l 2 2 4 , 3 0 0 3 8 3 , 3 0 0 3 9 3 , 1 0 0 5 0 6 , 3 0 0 1 2 3 , 0 0 0 3 2 . 1 %
S u p p o r t 1 5 1 , 4 0 0 1 7 2 . 7 0 0 1 4 9 , 3 0 0 1 8 8 , 7 0 0 . 1 6 , 0 0 0 9 . 3 %
T O T A L $ 6 7 4 . 5 0 0 $ 9 2 8 , 6 0 0 $ 8 6 9 . 5 0 0 $ 1 . 0 8 5 . 0 0 0 $ . 1 1 2 0 0 m i l s
; F i n a n c e
" C o n t i n u e a p p r o p r i a t e u s e s o f c o m m e r c i a l p a p e r t o a d v a n c e 2 0 0 9 M e a s u r e A p r o j e c t s o f .
t h e C o m m i s s i o n , C o a c h e l l a V a l l e y A s s o c i a t i o n o f G o v e r n m e n t s ( C V A G ) , a n d l o c a l
j u r i s d i c t i o n s .
" A p p l y t h e s a l e s t a x r e v e n u e f o r e c a s t u p d a t e t o d e v e l o p a f i n a n c i n g p l a n t o s u p p o r t t h e
1 0 - Y e a r W e s t e m C o u n t y H i g h w a y D e l i v e r y P l a n , i n c l u d i n g c o n s i d e r a t i o n f o r a
r e c o m m e n d e d i n c r e a s e i n t h e $ 5 0 0 m i l l i o n 2 0 0 9 M e a s u r e A b o n d i n g c a p .
D e v e l o p a n d a p p r o v e i n t e r n a l a u d i t p r o j e c t s r e l a t e d t o t h e o r g a n i z a t i o n a l a c c o u n t a b i l i t y
p r o g r a m .
" C o n t i n u e t o k e e p a b r e a s t o f G A S B t e c h n i c a l a c t i v i t i e s a f f e c t i n g t h e C o m m i s s i o n ' s
a c c o u n t i n g a n d f i n a n c i a l r e p o r t i n g a c t i v i t i e s .
��" I m p l e m e n t a c e n t r a l i z e d p r o c u r e m e n t s p r o c e s s i n o r d e r t o s t r e n g t h e n c o n t r o l s t o e n s u r e
c o n s i s t e n c y i n t h e a p p l i c a t i o n o f p r o c u r e m e n t p o l i c i e s a n d p r o c e d u r e s a n d a d h e r e n c e t o
a p p l i c a b l e l a w s a n d r e g u l a t i o n s .
"
T a b l e 7 F i n a n c e
P r o g r a m
C o s t s
P e r s o n n e l
P r o f e s s i o n a l
S u p p o r t
T O T A L
! R e g i o n a l I s s u e s
F Y 0 6 / 0 7 F Y 0 7 / 0 8
A c t u a l R e v i s e d B u d g e t
$ 1 , 1 1 7 , 2 0 0
1 , 0 8 1 , 1 0 0
4 0 , 7 0 0
$ 2 3 9 , 0 0 Q
F Y 0 7 / 0 8 F Y 0 8 / 0 9
P r o j e c t e d B u d g e t
D o l l a r P e r c e n t
C h a n g e C h a n g e
$ 6 9 6 , 2 0 0 $ 7 2 9 , 5 0 0 $ 6 9 9 , 0 0 0 $ 2 , 8 0 0 0 . 4 %
1 , 3 1 9 , 0 0 0 1 , 0 4 9 , 6 0 0 1 , 1 6 5 , 0 0 0 ( 1 5 4 , 0 0 0 ) - 1 1 . 7 %
6 5 , 9 0 0 5 5 . 6 0 0 6 2 , 1 0 0 ( 3 . 8 0 0 ) - 5 . 8 %
$ 2 , 0 8 1 . 1 0 0 $ 1 . 8 3 4 . 7 0 0 S 1 . 9 2 6 . 1 0 0 1 . f 1 5 5 . 0 0 0 1 - 7 . 4 5 1 )
" F o c u s o n i n t e r r e g i o n a l c o n c e m s a n d m a i n t a i n e f f e c t i v e w o r k i n g r e l a t i o n s h i p s i n v o l v i n g
v a r i o u s b i - c o u n t y t r a n s p o r t a t i o n i s s u e s , i n c l u d i n g g o o d s m o v e m e n t .
C o n t i n u e t o a d d r e s s a i r p o r t i s s u e s i n c l u d i n g t h e M a r c h A i r R e s e r v e B a s e ( M a r c h A R B )
p l a n s t o d e v e l o p a i r f r e i g h t s e r v i c e s .
M o n i t o r t h e P o r t o f L o s A n g e l e s a n d P o r t o f L o n g B e a c h ' s p r o j e c t s f o r i m p a c t s o n
R i v e r s i d e C o u n t y .
"
"
"
1 0
"
T a b l e 8 R e g i o n a l I s s u e s
P r o g r a m
C o s t s
F Y 0 6 / 0 7
A c t u a l
P e r s o n n e l $ 1 5 7 , 7 0 0
P r o f e s s i o n a l 2 0 5 , 2 0 0
S u p p o r t 1 2 , 6 0 0
P r o j e c t s a n d O p e r a t i o n s 5 , 0 0 0
T O T A L $ 3 8 0 . 5 0 0
P l a n n i n g a n d P r o g r a m m i n g
"
;
I "
"
"
1 "
F Y 0 7 / 0 8
R e v i s e d B u d g e t
$ 4 0 7 , 7 0 0
4 6 7 , 0 0 0
1 8 , 4 0 0
F Y 0 7 / 0 8 F Y 0 8 / 0 9 D o l l a r P e r c e n t
P r o j e c t e d B u d g e t C h a n g e C h a n g e
$ 3 6 0 , 7 0 0 $ 3 5 8 , 1 0 0
4 1 6 , 1 0 0 5 3 5 , 0 0 0
1 3 , 4 0 0 2 2 , 5 0 0
$ 8 9 3 . 1 0 0 $ 7 9 0 . 2 0 0 1 9 1 5 . 6 0 0 $ 2 2 5 0 0
$ ( 4 9 , 6 0 0 ) - 1 2 . 2 %
6 8 , 0 0 0 1 4 . 6 %
4 , 1 0 0 2 2 . 3 %
N / A
Z 5 %
M o n i t o r i n c r e a s e d f u n d i n g a u t h o r i t y a n d r e s p o n s i b i l i t y r e l a t e d t o t h e S t a t e T r a n s p o r t a t i o n
I m p r o v e m e n t P r o g r a m ( S T I P ) a n d i m p a c t s o n t h e S T I P c a u s e d b y t h e s t a t e b u d g e t
i s s u e s .
E n s u r e S T I P a n d P r o p o s i t i o n 1 B f u n d e d p r o j e c t s a r e a d m i n i s t e r e d a n d i m p l e m e n t e d
c o n s i s t e n t w i t h C a l i f o r n i a T r a n s p o r t a t i o n C o m m i s s i o n ( C T C ) a n d C a l i f o r n i a D e p a r t m e n t
o f T r a n s p o r t a t i o n ( C a ! t r a n s ) p o l i c i e s .
C o n t i n u e t o s t r a t e g i c a l l y p r o g r a m p r o j e c t s a n d o b l i g a t e f u n d s i n a n e x p e d i t i o u s m a n n e r
f o r t h e m a x i m u m u s e o f a l l a v a i l a b l e f u n d i n g , i n c l u d i n g m o n i t o r i n g t h e u s e o f s u c h
f u n d i n g t o p r e v e n t f u n d s f r o m l a p s i n g .
M o n i t o r a n d t r a c k t h e T U M F r e g i o n a l a r t e r i a l p r o j e c t s .
C o n t i n u e d e v e l o p m e n t o f i n n o v a t i v e f i n a n c i n g s t r a t e g i e s .
W o r k c o o p e r a t i v e l y w i t h m e m b e r a g e n c i e s t o c o n t i n u e t h e w o r k e f f o r t s o n t h e n e w
C E T A P c o r r i d o r s .
C o n t i n u e t h e C o n g e s t i o n M a n a g e m e n t P r o g r a m ( C M P ) , u p d a t e a n d t r a f f i c m o n i t o r i n g
a l o n g u r b a n a n d r u r a l h i g h w a y s y s t e m s .
A d m i n i s t e r t h e S B 8 2 1 B i c y c l e a n d P e d e s t r i a n F a c i l i t i e s P r o g r a m .
C o n t i n u e t h e d e v e l o p m e n t o f a w e b - b a s e d p r o j e c t m a n a g e m e n t d a t a b a s e f o r t h e
m o n i t o r i n g o f p r o j e c t s c h e d u l e s a n d f u n d i n g a s w e l l a s p r o v i d i n g a c c e s s t o l o c a l
a g e n c i e s .
T a b l e 9 P l a n n i n g a n d
P r o g r a m
C o s t s
P e r s o n n e l
P r o f e s s i o n a l
I S u p p o r t
, P r o j e c t s a n d O p e r a t i o n s
T O T A L
; R a i l
P r o g r a m m i n g
F Y 0 6 / 0 7 F Y 0 7 / 0 8
A c t u a l R e v i s e d B u d g e t
$ 8 7 1 , 9 0 0 $
1 , 4 6 2 , 2 0 0
2 7 , 6 0 0
1 , 0 7 8 , 2 0 0
1 , 3 0 0 , 3 0 0
1 , 9 0 6 , 5 0 0
4 3 , 7 0 0
5 , 7 2 7 , 0 0 0
$ 3 4 3 9 , 9 0 Q S E L U L = =
F Y 0 7 / 0 8
P r o j e c t e d
F Y 0 8 / 0 9
B u d g e t
D o l l a r P e r c e n t
C h a n g e C h a n g e
$ 8 2 6 , 3 0 0 $ 5 6 7 , 8 0 0 $ ( 7 3 2 , 5 0 0 )
2 3 0 , 2 0 0 2 7 0 , 3 0 0 ( 1 , 6 3 6 , 2 0 0 )
1 6 , 3 0 0 3 1 , 1 0 0 ( 1 2 , 6 0 0 )
6 6 9 . 0 0 0 5 , 2 9 8 . 8 0 0 ( 4 2 8 , 2 0 0 )
$ 1 . 7 4 1 . 8 0 0 $ 6 . 1 6 a m i $ ( 2 . 8 0 9 . 5 0 0 1
- 5 6 . 3 %
- 8 5 . 8 %
- 2 6 . 8 %
- 7 . 5 %
- 3 1 . 3 % y
C o n t i n u e c a p i t a l i m p r o v e m e n t s a t t h e c o m m u t e r r a i l s t a t i o n s , i n c l u d i n g p a r k i n g f a c i l i t i e s ,
i n R i v e r s i d e C o u n t y .
" C o n t i n u e p r o j e c t d e v e l o p m e n t a n d r i g h t o f w a y a c q u i s i t i o n a c t i v i t i e s r e l a t e d t o t h e F T A
S m a l l S t a r t s P e r r i s V a l l e y L i n e p r o j e c t
" C o m p l e t e c o n s t r u c t i o n o f P h a s e I o f t h e P e r r i s m u l t i m o d a l f a c i l i t y .
" W o r k w i t h t h e O r a n g e C o u n t y T r a n s p o r t a t i o n A u t h o r i t y ( O C T A ) a n d t h e S a n B e r n a r d i n o
A s s o c i a t e d G o v e r n m e n t s ( S A N B A G ) t o a d v a n c e a d d i t i o n a l I n l a n d E m p i r e - O r a n g e
C o u n t y ( I E O C ) a n d 9 1 L i n e t r a i n s e r v i c e b y 2 0 1 0 .
O v e r s e e c o m m u t e r r a i l s t a t i o n o p e r a t i o n a n d m a i n t e n a n c e .
1 1
Table 10 - Rail
Program
Costs
Personnel
Professional
Support
Projects and Operations
Special Studies
Capital Outlay
TOTAL
FY 06/07 FY 07108 FY 07/08 FY 08109 Dollar
Actual Revised Budget Projected Budget Change
$ 391,800 $ 334,500 $ 393,700 $ 427,900 $ 93,400
133,700 295,500 152,900 410,500 115,000
734,700 825,500 .119,600 145,100 (680,400)
• 6,532,400 7,548,600 7,912,400 7,938,600 390,000
83,700 30,000 23,000 200,000 170,000
21.000 - - - -
$ 7.897.30Q $ 9.034.100 $ 8.601.600 $ 9.122.100 $ 88.000
Right of Way Management
•
i•
i.
•
Percent
Change
27.9%
38.9%
-82A%
5.2%
566.7%
N/A
lost
Develop a right of way acquisition program in support of capital projects.
Develop a commuter rail station rehabilitation and strategic plan for the long-term
maintenance of the Metrolink stations.
Establish a right of way acquisition schedule and budget control measures.
Maintain the order, safety, and security of Commission -owned properties.
Continue development of the property inventory database in order to maintain accurate
records of all Commission -owned properties, properties in acquisition process, and
income generating properties.
;Table 11 - Right of Way Management
Program FY 06/07 FY 07/08
j Costs Actual Revised Budget
IPersonnel $ 281,400 $ 138,000
Professional 218,900 720,000
Support 69,200 249,500
Projects and Operations 62,500 55,000
TOTAL $ 632,11(4 $ 1.162.500
Specialized Transit
FY 07/08 FY 08/09
Projected Budget
119,200 $
360,300
121,300
18.200
Dollar Percent
Change Change
155,000. $ 17,000 12.3%
692,000 (28,000) -3.9%
285,000 35,500 14.2%
80,000 25.000 45.5%
619.000 $ 1.212.000 $ 49.500 4 3Zst
• Support innovative programs which provide transit assistance in hard to serve rural
areas or for riders having very special transit needs and monitor funding of these
programs.
i• Initiate a call for projects covering FY 2008/09 and FY 2009/10 for the Westem County
Specialized Transit program.
• Provide availability for local matching funds to Westem County applicants seeking FTA
Section 5310 federal capital grants.
!Table 12 -Specialized Transit
Program FY 06107
Costs Actual
I Personnel
Professional
Support
Projects and Operations
Transfers Out
TOTAL
FY 07/08 FY 07/08 FY 08/09 Dollar Percent
Revised Budget Projected Budget Change Change
$ 58,600 $ 97,300 $ 76,900 $ 129,500 $ 32,200 33.1%
8,200 55,000 400 62,500 7,500 13.6%
4,000 8,700 4,900 9,000 300 3.4%
6,287,400 6,162,500 5,174,900 7,754,400 1,591,900 25,8%
2,500 - - - N/A
$ 6 360.70Q $ 6 323-50Q $ 5.257.10Q $ 7.955A00 $ 1.631.90Q
•
12
"
T r a n s i t
" R e v i e w t r a n s i t o p e r a t o r p e r f o r m a n c e a n d a n n u a l p r o g r e s s r e p o r t s t h r o u g h T r a n s T r a c k
a n d t h e S R T P s .
" M o n i t o r t h e i m p l e m e n t a t i o n a n d p e r f o r m a n c e o f s p e c i a l i z e d t r a n s i t p r o j e c t s a s i d e n t i f i e d
i n t h e C o o r d i n a t e d P u b l i c T r a n s i t - H u m a n S e r v i c e s T r a n s p o r t a t i o n P l a n .
T a b l e 1 3 = T r a n s i t
P r o g r a m F Y 0 6 / 0 7 F Y 0 7 / 0 8 F Y 0 7 / 0 8 F Y 0 8 / 0 9 D o l l a r P e r c e n t
C o s t s A c t u a l R e v i s e d B u d g e t P r o j e c t e d B u d g e t C h a n g e C h a n g e
P e r s o n n e l $ 2 2 0 , 2 0 0 $ 2 0 8 , 6 0 0 $ 1 7 0 , 1 0 0 $ 2 3 5 . 7 0 0 $ 2 7 , 1 0 0 1 3 . 0 %
P r o f e s s i o n a l 1 8 4 , 4 0 0 1 5 7 , 0 0 0 4 0 , 7 0 0 1 2 2 , 4 0 0 ( 3 4 , 6 0 0 ) - 2 2 . 0 %
, S u p p o r t 9 , 2 0 0 1 0 , 4 0 0 1 3 , 3 0 0 1 3 , 8 0 0 3 , 4 0 0 3 2 . 7 %
P r o j e c t s a n d O p e r a t i o n s 7 3 , 9 5 6 . 3 0 0 9 5 , 6 3 7 , 2 0 0 9 1 . 2 3 5 , 1 0 0 8 8 . 6 3 2 . 6 0 0 ( 7 . 0 0 4 , 6 0 0 ) - 7 . 3 %
T O T A L $ 7 4 3 7 0 1 0 Q ; 9 6 . 0 1 3 . 2 0 0 $ 9 1 . 4 5 9 . 2 0 ) $ 8 0 0 4 5 0 0 $ ( 7 . 0 0 8 7 0 0 ) - 7 . 3 %
1 C o m m u t e r A s s i s t a n c e
C o n t i n u e r i d e s h a r e i n c e n t i v e s a n d s u p p o r t s e r v i c e s i n p a r t n e r s h i p w i t h c o m m u t e r s ,
e m p l o y e r s , a n d o t h e r g o v e m m e n t s .
" U n d e r t a k e a v a r i e t y o f p r o g r a m m a t i c c h a n g e s t o e n s u r e t h e p r o v i s i o n o f c o s t - e f f e c t i v e
a n d e f f i c i e n t s e r v i c e s .
" C o n t i n u e t o u t i l i z e t h e P r o g r a m T r a c k i n g a n d P e r f o r m a n c e M e a s u r e m e n t T o o l ( P r o g r a m
M e a s u r e m e n t T o o l ) t o m o r e e f f i c i e n t l y i m p l e m e n t t h e C o m m u t e r A s s i s t a n c e p r o g r a m .
" C o n t i n u e e f f o r t s f o r c r o s s m a r k e t i n g o f t r a n s i t a n d r a i l s e r v i c e s w i t h t h e d e v e l o p m e n t o f a
n e w 1 4 0 - s p a c e p a r k a n d r i d e f a c i l i t y l o c a t e d i n t h e c i t y o f P e r r i s a t t h e f u t u r e P e r r i s
V a l l e y L i n e M e t r o l i n k s t a t i o n .
I " C o n t i n u e t o m a i n t a i n a n d o p e r a t e a f i v e - c o u n t y r i d e m a t c h i n g d a t a b a s e s y s t e m w i t h
p a r t n e r a g e n c i e s .
I " C o n t i n u e t o p r o v i d e a G u a r a n t e e d R i d e H o m e ( G R H ) P r o g r a m t o s e r v e I n l a n d E m p i r e
I e m p l o y e r s .
i " C o n t i n u e l e a d e r s h i p r o l e i n r e g i o n a l d i s c u s s i o n s r e l a t i n g t o t h e i m p l e m e n t a t i o n o f 5 1 1
a n d t h e d i s s e m i n a t i o n o f t r a f f i c a n d t r a v e l e r i n f o r m a t i o n s e r v i c e s .
P r o v i d e f u n d i n g t o C a ! t r a n s f o r t h e i n s t a l l a t i o n o f 7 5 r a d a r d e t e c t i o n s t a t i o n s o n t h e 1 - 1 5
a n d 1 - 2 1 5 c o r r i d o r s t o t h e S a n D i e g o C o u n t y l i n e .
T a b l e 1 4 - C o m m u t e r A s s i s t a n c e
, P r o g r a m F Y 0 6 / 0 7 F Y 0 7 / 0 8 F Y 0 7 / 0 8 F Y 0 8 / 0 9 D o l l a r P e r c e n t
C o s t s A c t u a l R e v i s e d B u d g e t P r o j e c t e d B u d g e t C h a n g e C h a n g e
P e r s o n n e l $ 2 4 9 , 0 0 0 $ 1 8 5 , 9 0 0 $ 1 9 0 , 8 0 0 $ 2 5 5 , 5 0 0 $ 6 9 , 6 0 0 3 7 . 4 %
P r o f e s s i o n a l 4 4 6 , 2 0 0 5 4 6 , 1 0 0 4 0 3 , 3 0 0 4 6 7 , 5 0 0 ( 7 8 , 6 0 0 ) - 1 4 . 4 %
S u p p o r t 4 1 1 , 1 0 0 6 4 5 , 4 0 0 5 0 8 , 6 0 0 5 1 2 , 3 0 0 ( 1 3 3 , 1 0 0 ) - 2 0 . 6 %
P r o j e c t s a n d O p e r a t i o n s 1 , 9 9 1 , 3 0 0 4 , 9 5 2 , 9 0 0 1 , 9 7 6 , 7 0 0 5 , 2 1 2 , 2 0 0 2 5 9 , 3 0 0 5 . 2 %
C a p i t a l O u t l a y 9 0 3 0 1 2 0 , 0 0 0 6 7 , 0 0 0 4 0 , 0 0 0 ( 8 0 , 0 0 0 ) - 6 6 . 7 %
T r a n s f e r s O u t 1 , 0 0 0 . 0 0 0 - 1 , 0 2 7 , 8 0 0 2 7 , 8 0 0 2 . 8 %
T O T A L $ 3 . 1 0 7 . 5 0 0 $ 6 . 4 5 0 . 3 0 Q $ 3 . 1 4 6 . 4 0 Q $ 7 5 1 5 . 8 4 Q $ 1 d j 6 5 . 0 0 n b . e M
M o t o r i s t A s s i s t a n c e
" C o n t i n u e i m p l e m e n t a t i o n o f t h e r e c o m m e n d a t i o n s i n c l u d e d i n t h e 5 - Y e a r S t r a t e g i c a n d
F i n a n c i a l P l a n ( 5 - Y e a r P l a n ) f o r t h e c a l l b o x p r o g r a m , i n c l u d i n g t h e m o d i f i c a t i o n o f
a p p r o x i m a t e l y 6 7 0 c a l l b o x s i t e s .
1 3
" C o m p l e t e t h e i m p l e m e n t a t i o n o f t h e A u t o m a t i c V e h i c l e L o c a t o r ( A V L ) s y s t e m f o r t o w
t r u c k s .
T a b l e 1 5 M o t o r i s t A s s i s t a n c e
P r o g r a m F Y 0 6 1 0 7
C o s t s A c t u a l
P e r s o n n e l
P r o f e s s i o n a l
S u p p o r t
P r o j e c t s a n d O p e r a t i o n s
T r a n s f e r s O u t
T O T A L
F Y 0 7 / 0 8 F Y 0 7 / 0 8 F Y 0 8 / 0 9 D o l l a r P e r c e n t
R e v i s e d B u d g e t P r o j e c t e d B u d g e t C h a n g e C h a n g e
$ 8 1 , 3 0 0 $ 1 8 7 , 2 0 0 $ 9 3 , 5 0 0 $ 2 5 0 , 3 0 0 $ ' 6 3 , 1 0 0 3 3 . 7 � %
8 9 , 9 0 0 3 9 , 4 0 0 2 6 , 0 0 0 3 4 , 5 0 0 ( 4 , 9 0 0 ) - 1 2 A %
2 9 , 5 0 0 4 0 , 2 0 0 3 9 , 2 0 0 4 3 , 0 0 0 2 , 8 0 0 7 . 0 %
2 , 2 0 7 , 9 0 0 4 , 9 1 7 , 3 0 0 4 , 0 4 5 , 7 0 0 2 , 9 9 2 , 7 0 0 ( 1 , 9 2 4 , 6 0 0 ) - 3 9 . 1 %
3 8 8 , 2 0 0 4 9 0 , 0 0 0 4 9 0 , 0 0 0 - ( 4 9 0 . 0 0 0 ) - 1 0 0 . 0 %
$ 7 . 7 9 6 . 1 1 0 Q $ 5 6 7 4 1 0 0 $ 4 6 9 4 4 0 0 $ 3 . 3 2 0 . 5 0 0 $ ( 2 . 3 5 3 . 6 0 0 ) - 4 1 , 5 � I Q
C a p i t a l P r o j e c t D e v e l o p m e n t a n d D e l i v e r y
" C o m p l e t e c o n s t r u c t i o n o f t h e P e r r i s m u l t i m o d a l f a c i l i t y p h a s e I a n d t h e N o r t h M a i n
C o r o n a c o m m u t e r r a i l p a r k i n g s t r u c t u r e .
C o m p l e t e e n v i r o n m e n t a l c l e a r a n c e a n d c o n t i n u e p r e l i m i n a r y e n g i n e e r i n g a n d r i g h t o f
w a y a c q u i s i t i o n f o r t h e F T A S m a l l S t a r t s P e r r i s V a l l e y L i n e .
C o n t i n u e t h e e n v i r o n m e n t a l a n d p r e l i m i n a r y e n g i n e e r i n g s e r v i c e s f o r t h e S R - 7 9
r e a l i g n m e n t p r o j e c t a s w e l l a s a c q u i r e r i g h t o f w a y .
C o n t i n u e d e v e l o p m e n t o f a p r o j e c t r e p o r t a n d e n v i r o n m e n t a l d o c u m e n t f o r t h e M i d
C o u n t y P a r k w a y p r o j e c t a s w e l l a s a c q u i r e r i g h t o f w a y .
A c q u i r e l a n d a s m i t i g a t i o n f o r t h e c u m u l a t i v e a n d d i r e c t i m p a c t s a s s o c i a t e d w i t h
c o n s t r u c t i o n o f f u t u r e W e s t e r n C o u n t y h i g h w a y a n d r e g i o n a l a r t e r i a l p r o j e c t s .
C o m p l e t e f i n a l d e s i g n a n d r i g h t o f w a y a c q u i s i t i o n f o r t h e S R - 6 0 E a s t J u n c t i o n t o 1 - 2 1 5
H O V l a n e s c o n n e c t o r .
" C o m p l e t e p r o j e c t c l o s e - o u t a c t i v i t i e s r e l a t e d t o t h e S R - 7 4 / 1 - 1 5 t o 7 t h S t r e e t p r o j e c t .
" C o m p l e t e p r e l i m i n a r y e n g i n e e r i n g a n d i n i t i a t e f i n a l d e s i g n a n d r i g h t o f w a y a c t i v i t i e s
r e l a t e d t o i n t e r c h a n g e i m p r o v e m e n t s a t S R - 7 4 / G S t r e e t t o 1 - 2 1 5 .
" C o n t i n u e f i n a l d e s i g n , r i g h t o f w a y a c q u i s i t i o n s , a n d c o n s t r u c t i o n r e l a t e d t o t h e S R - 9 1
H O V l a n e s / A d a m s S t r e e t t o S R - 6 0 / S R - 9 1 / 1 - 2 1 5 i n t e r c h a n g e .
C o n t i n u e p r e l i m i n a r y e n g i n e e r i n g a n d e n v i r o n m e n t a l s t u d i e s f o r t h e S R - 9 1 / S R - 7 1
c o n n e c t o r s , S R - 9 1 H O T a n d m i x e d f l o w l a n e s , 1 - 1 5 C o r r i d o r a n d H O T l a n e s , a n d 1 - 2 1 5
m o b i l i t y i m p r o v e m e n t p r o j e c t s .
C o n t i n u e p r e l i m i n a r y e n g i n e e r i n g a n d e n v i r o n m e n t a l d o c u m e n t a t i o n f o r t h e 1 - 2 1 5
m o b i l i t y i m p r o v e m e n t p r o j e c t s .
P r o v i d e f u n d i n g a n d s u p p o r t t o l o c a l a g e n c i e s f o r S R - 9 1 i n t e r c h a n g e i m p r o v e m e n t s a t
G r e e n R i v e r , V a n B u r e n , a n d L a S i e r r a .
" P r o v i d e M e a s u r e A f u n d i n g a n d s u p p o r t t o C o a c h e l l a V a l l e y l o c a l j u r i s d i c t i o n s f o r
c o n s t r u c t i o n o f o p e r a t i o n a l i m p r o v e m e n t s a l o n g S R - 8 6 a n d S R - 1 1 1 .
" C o n t i n u e e n v i r o n m e n t a l a n d p r e l i m i n a r y d e s i g n f o r t h e b i - c o u n t y 1 - 2 1 5 p r o j e c t .
" P r o v i d e W e s t e r n C o u n t y T U M F f u n d i n g a n d s u p p o r t t o l o c a l j u r i s d i c t i o n s f o r r e g i o n a l
a r t e r i a l p r o j e c t e n g i n e e r i n g , c o n s t r u c t i o n , a n d r i g h t o f w a y a c q u i s i t i o n .
" P r o v i d e a d v a n c e f u n d i n g a n d s u p p o r t o f 2 0 0 9 M e a s u r e A r e g i o n a l a r t e r i a l p r o j e c t s a n d
f o r t h e a c q u i s i t i o n f o r l a n d a s m i t i g a t i o n i n t h e C o a c h e l l a V a l l e y .
"
1 4
"
T a b l e 1 6 C a p i t a l P r o j e c t
P r o g r a m
C o s t s
P e r s o n n e l
P r o f e s s i o n a l
S u p p o r t
P r o j e c t s a n d O p e r a t i o n s
C a p i t a l O u t l a y
D e b t S e r v i c e
T r a n s f e r s O u t
T O T A L
T a b l e 1 7 P r o j e c t e d F u n d
R e s e r v e d :
C E T A P $ _ $ - $ - $
C o m m u t e r A s s i s t a n c e 1 3 , 6 6 9 , 3 0 0
D e b t S e r v i c e
H i g h w a y 6 5 , 1 6 3 , 5 0 0 9 , 7 0 0 -
L o a n s R e c e i v a b l e 1 0 , 7 7 5 , 6 0 0
L o c a l S t r e e t s a n d R o a d s 1 6 4 , 1 0 0 8 5 , 8 0 0 6 7 , 9 0 0
P l a n n i n g a n d P r o g r a m m i n g
R a i l 6 8 , 8 7 6 , 2 0 0
R e g i o n a l A r t e r i a l s - C o a c h e l l a V a l l e y 1 , 1 5 8 , 7 0 0
R e g i o n a l A r t e r i a l s - W e s t e m C o u n t y
R i g h t o f W a y M a n a g e m e n t
S p e c i a l i z e d T r a n s i t 7 , 9 6 7 , 5 0 0 2 8 3 , 4 0 0 -
T r a n s l t
U n r e s e r v e d , d e s i g n a t e d :
M o t o r i s t A s s i s t a n c e
I U n r e s e r v e d , u n d e s i g n a t e d
T O T A L F u n d B a l a n c e
' C h a r t 4 P r o j e c t e d F u n d B a l a n c e s b y G o v e r n m e n t a l F u n d T y p e a n d P r o g r a m a t J u n e 3 0 , 2 0 0 9
D e v e l o p m e n t a n d D e l i v e r y
F Y 0 6 / 0 7 F Y 0 7 / 0 8
A c t u a l R e v i s e d B u d g e t
$ 1 , 1 7 1 . 7 0 0 5 2 , 9 4 2 , 5 0 0
1 , 2 1 9 . 1 0 0 2 , 4 0 8 , 6 0 0
3 3 , 0 0 0 1 1 6 . 5 0 0
1 4 7 , 4 9 6 . 2 0 0 3 9 9 , 1 7 6 , 2 0 0
1 2 1 , 4 0 0 5 0 0 , 0 0 0
3 6 , 7 6 4 , 4 0 0 4 2 , 2 2 5 . 9 0 0
3 4 , 3 5 4 , 3 0 0 7 6 . 4 5 0 . 6 0 Q
$ 2 2 1 . 1 6 0 . 1 0 0 $ 5 2 3 a m i n n
F Y 0 7 / 0 8 F Y 0 8 / 0 9
P r o j e c t e d B u d g e t
$ 1 , 1 3 6 , 8 0 0
9 3 3 , 8 0 0
1 8 0 , 7 0 0
2 0 3 , 1 5 5 , 5 0 0
2 1 5 , 8 0 0
1 5 0 , 7 2 3 , 3 0 0
7 5 , 1 0 5 . 7 0 0
$ 4 3 1 . 4 5 3 . 6 0 Q
D o l l a r P e r c e n t
C h a n g e C h a n g e
$ 2 , 6 9 8 , 4 0 0 $ ( 2 4 4 , 1 0 0 ) - 8 . 3 %
2 , 4 2 7 , 3 0 0 1 8 , 7 0 0 0 . 8 %
2 , 0 2 0 , 8 0 0 1 , 9 0 4 , 3 0 0 - 1 6 3 4 . 6 %
4 1 2 . 7 6 5 , 0 0 0 1 3 , 5 8 8 , 8 0 0 3 A %
5 0 0 , 0 0 0 - 0 . 0 %
3 5 , 5 4 0 . 1 0 0 ( 6 , 6 8 5 , 8 0 0 ) - 1 5 . 8 %
7 5 . 5 7 2 . 4 0 0 ( 8 7 8 , 2 0 0 ) - 1 . 1 9 ( 1
$ 5 3 1 . 5 2 4 . 0 0 0 $ 7 7 0 3 7 0 0 l a %
B a l a n c e s b y P r o g r a m a n d G e o g r a p h i c A r e a a t J u n e 3 0 , 2 0 0 9
M e a s u r e A
W e s t e r n C o u n t y C o a c h e l l a v a l l e y P a l o V e r d e O t h e r
T o t a l
5 2 6 , 0 0 0 $ 5 2 6 , 0 0 0
1 3 , 6 6 9 , 3 0 0
3 3 . 6 8 3 , 6 0 0 3 3 , 6 8 3 , 6 0 0
1 , 2 3 8 , 3 0 0 6 6 , 4 1 1 , 5 0 0
1 0 , 7 7 5 , 6 0 0
- - 3 1 7 , 8 0 0
1 , 5 7 0 , 4 0 0 1 5 7 0 , 4 0 0
2 , 6 4 8 , 2 0 0 7 1 , 5 2 4 , 4 0 0
1 , 1 5 8 , 7 0 0
2 1 , 8 7 2 , 6 0 0 2 1 , 8 7 2 , 6 0 0
1 , 8 3 0 , 5 0 0 1 , 8 3 0 , 5 0 0
8 , 2 5 0 , 9 0 0
9 6 , 4 3 4 , 2 0 0 9 6 , 4 3 4 , 2 0 0
4 , 9 3 6 , 2 0 0 4 , 9 3 6 , 2 0 0
_ 2 . 6 4 5 . 9 0 0 2 . 6 4 5 9 0 0
1 1 6 6 . 6 1 1 = 3 1 . 5 3 7 . 6 0 0 $ 6 7 9 0 Q $ 1 6 7 3 8 5 9 0 Q 5 3 3 5 6 0 7 f i r m
��l o r a l S Y e e k a n d ( l o a d s $ 1 6 4 , 1 0 0
7 1 8 K 1 2 7 , 3 9 0 , 6 0 0 -
, S p e c i a i z e d T r a n s 0 7 , 9 6 7 , 5 0 o
a r i a $ 0 3 9 . e 7 6 . 2 0 0
r a c h w a e V a l e y $ 1 , 5 3 7 , 6 0 0
- 8 0 , 6 6 7 $ 9 , 7 0 0
- S a e e k a e t R o a d s 1 6 5 . 8 0 0
d A r l e r k s 8 1 , 1 5 8 . 7 0 0
, - - - 6 o e r i s t e a r r a a ; a $ 2 8 3 , 4 0 0
��" P a l o V e r d e V a g e y L o c a l & r e e l s a n d R o d s $ 6 7 , 9 0 0
* b r i t A s s i s t a n c e $ 1 , 9 3 6 . 2 0 0
" " " " " " " S b i e T a r s r t A s s i s l a c a e $ 3 3 A 6 6 , 9 0 0
l o r a l l r a r s o o r t a t i n F u n d $ 6 2 . 9 6 7 , 3 0 0
1 5
TABLE 18- BUDGET COMPARATIVE BY SUMMARIZED LINE REM
FY 2007 - 2o55
REVENUES
MeasureA Sales Fan ; 154,539,500 5 135,000,000 $ 135,006000 5 135,010,000 i - 0.0%
OF Sales Tax 65293,200 89,388,030 78,163,700 80,579600 (8009,500)
STA Transit Allocation 18087,000 9.774,100 9.774.100 22,992.600 13218,500 135.2%
Vehiile RegistrationFees 1.681.100 1,460.000 1,470,000 1.496.000 35000 24%
Reimbmrsermf4 5498,500 47,915,700 17,095,700 74.455.400 26539,700 55.4%
Otter Revenue 6455,500 2,947,900 2002.100 1.927200 (1,020,700) -34,6%
TUMF Revenue 40,757,200 10,000,000 10,305,700 7,730,000 (2,270,000) -22.7%
Investment Income 23997.400 17.09670Q 14175J0Q 8217.030 16679700) 51941
TOTAL Revenues - 336949,800 313,58300D 267,977,000 332,3962M 18013200 6.0%
FY 0607 FY 07/08 FY D7106 FY 08/09 - Dollar Percent
Actual Revised Budget Projected Budgel Change Change
EXPENDITURES
Personal Salary and Benefits 5.526,000 7,589.400 5,062.300 6,743,000 (848,400) -11.2%
Professonal and Support
General Legal Services 1.464200 1,577,900 1,078,300 16313,500 360,800 22.6%
Financial Advisory 123,000 1,850,000 50000 90,000 (1,560,000) -94.5%
Audit Services 1024000 523,000 471,900 548,00D 25,000 49%
Professional Services• Otter 2108.700 472370Q 2565.300 4 277 800 1445.900) -0A%
TOTAL Professional Costs 5,400,700 8,474,800 4,165,500 6,864,300 (1,620,300) - -19.1%
SuppOrt Casts 2 636 008 3 604 700 2 874 300 4643.500 1235.00Q Ititit
TOTAL Professlcnal and Suppod Costs 9,039,700 12,076300 6,8390011 11,697,800 (301,500) -32%
Projects and Operations:
Projeds.General 3,371200 4419,000 2,308,700 6,681300 2,241,500 50.7%
Rail• 1,019,800 1.052000 1,572,800 1,959,000 877,000 81.1%
Motorlat Assistance 2207600 4,912.300 4.045700 2092,700 (1,919,600) -39.1%
Cpcmxder Assistance 1,940,200 2,562,000 1934,900 2,722200 156300 6.2%
Engineering 16,638,200 88,903500 31,684,500 78784000 3,820.500 5.7%
Construction 21,002,700 99,370,000 34,872,600 89078,600 (9,491,430) •9.6%
Right of Way and Land 37.720.400 156,501.100 76907,100 186705000 32,203,900 20.8%
SORRA Confbdion 5,524,100 17,919,300 6,339,600 5.979.600 (11,939.700) -66.6%
Spada)Studies 645,60i) 4765400 896,1300 4028,300 102,900 3.4% ,
Special TransDDllatan(ftanslt 8277,000 5.122500 5,111,000 - 7,714,400 1,591,900 26.0%
Lire! Streets and Roads 59,196,800 60,087,500 50,087,500 50985.300 (2,200) 0.0%
Regional Arterials- Coachella Valley 9,136500 12,511.600 13215,000 8.781.300 (3.730,300) 45.5%
LTF Disbursements 71,507.400 67,749,100 78218,500 80.748,70D (7000,400) -8.0%
STA isbursements 3.423.190 9239700 13 016 600 8933900 t305 own -3.3%
TOTAL Project and Operating Costs 239,700,900 524,208,700 314210,500. 536874300 8067,500 13%
Debt Service
Princlpal Payments 30,225.600 32,012.100 142612,1M 33,630,000 1,617,900 5.1%
Interest Payments 8,564.900 9,933,900 7,861,200 11.110.100 1.176,300 11.8%
Costof%manna - 280000 650000 150,0(1 570,000 MAN
TOTAL Debt Service 38,790,500 4222_5900 150,723,300 45596100 3,384,20d 8.0%
Cannel Outlay 161.300 942.000 295100 89000Q 152.0001 - 5../
TOTAL Expenditures 290 218 40Q 917 cat 103 477.131.000 595795200 8.751 900 1521
Excess (Deficiency) of Revenues Over
(Under) Expenditures 46.731,400 (273,460,300) (209.154600) (266399600) V1061,300 -3.7%
ONo;Fnancing Sources (Uses)
Transfers In 34,745000 77.940.600 75.56570D 76000.200 (1,34D,400) -1.7%
Transfers Out (34,7450001 (77,940,000 (75585,7001 (76000200) 1,340,400 17%
Debt Proceeds 50 WO 000 67 000 000 14800000D 110 000 000 23,000000 -26.4%
Excess (deficiency) of Revenues over (under)
Expenditures and Ogler Financing Sources (Uses) 96.731.400 086.460,303) (61,154,000) (153-399,000) 33,061,300 17.7%
Beginning Fund Balance
ENDING FUND BALANCE
453,42,200 550,160,600 550 160 600 489006.600 (61,154.000) -11,1%
; mimosa; ; 363700300 s 489006. 4 ; 3t.5 sal 55a ; (28 r192700)
•
16
i
•
Table 19 — Operating and Capital Budget FY 2008/09
F112008339 FY 2008/09 FY 08M9
Operating Bu090 Capital Budget Total Budget
REVENUES
Measure A Sales Tax 8 11.5691100 $ 123,431,000 $ 136000000
LTF Sales Tax 79.260.000 1.314000 130,579000
STA Transit Alloemon 22.907_600 - 22962600
Vehicle Registration Fees - 1.495900 - 1095.090
Reimbursement 9.552.400 64.003,900 71.455.400
Outer Revenue 497.000 1.430,200 1027.200
-WRAF Revenue - 273%000 723%000
Imieslment income 2498900 5218100 8.217.000
TOTAL Revenues - 127.864.900 204051.300 332.39%200
E%PENOITURES
Perionnel Salary and Benatas 4.044.600 2,698.400 6243000
Professional and Support
General Legal Services 528,500 1,410.000 1.938.500
Financial AdNaory 40.000 60,000 00,000
Audi Services - 510.000 38000 548.060
Professional Services - Other 2848,500 1029,300 4277.800
TOTAL Professional Costs 3,927,000 2.427,300 6.854,300
Support Costs 2822.700 2020.800 4.843.500
TOTAL Professional and Support Costs 8,749,700 4.908,100 11.697.800
Protects and Operations:
Pr%acts-General 308.000 0,3E0,303 6091.300
Rag 1.969.000 1.959000
*Wrist Asa:dance 2.992.700 2992700
Commuler Assistance 2.722200 2722200
EdgineemB 10,000 70,774,000 70284,090
Cdrrstruclion 2300.000 87,578000 09.878.600
R6111 of Way and Lard 20.000 1511085,000 188.705.008
SCRRA Contribution 5.979.600 5.979.600
Social Studies 4,420,800 807,500 4.928.300
Special Transportation/Transit 7,714.400 - 7.714.430
Laval Streets and Reads _ 5%085.300 50.085.300
Reg -anal Arterals - Coachella Valley - 8,781,300 8.7131300
LTF Disbursements ' 60,748700 80248.700
STA Disbursements. 8,933.900 8033.900
TOTAL Prefect and Operating Costs 118,10%300 412786,000 530.874.300
Debt Sen4ce
Prinepal Payments 33.630,000 33.630.000
Interest Payments - 11,110,100 11,110,100
Cost of Issuance - 850,000 850.000
TOTAL Debt SeMce - 45.590100 45,5110,100
Capibl Outlay 390,00D 500,000 843000
TOTAL EmendNres 129.293603 446.501 EDO 605295200
Excess IDefiae,cy) ul Revenues Over
(Under) Expendihnen (1,428,700) 1281.970300) (263399,0001
Other F1naneng Souses (Uses)
Transfers In 264.380 76,335000 76.600200
Transfers Out (1,027,800) (7%5724001 (78800400)
Debt Proceeds - 110.000
.004 /10.000.000
Excess (delicienry)of Revenues over (under) Expenditures and and Outer Financing Sources (Uses) m.1922003 (151,206000) 1153.399.000)
Beginning Fund Balance 166,882089 322.343,511 489.006000
ENDING FUNO BALANCE f 13T9aa (a9s S 203622000 f 335607.600
17
Personnel Salary and Benefits
Table 20 — Budget Expenditures and Other Uses Summarized by Governmental Fund Type FY 2008/09
TOTAL BUDGET EXPENDITURES AND OTHER USES SUMMARIZED DY FUND TYPE
General Fund Special Revenue Capital Projects Debt Service Total
$ 3.328,900 $ 3,414,100 $ - $ - $ 6,743,000
Professional and Support Expenditures
General Legal Services 486,600 1,445,900 6,000 1,938,500
Financial Advisory 38,100 1,900 50,000 90,000
Audit Services 485,900 62,200 - - 548,100
Professional Services - Other 2,287.200 1.540,500 450.000 4.277.70g
TOTAL Professional Services 3,297,800 3,050.500 506,000 6,654,300
Support Casts 2.173.400 2,670 100 - 4 843 500
TOTAL Professional and Support Services 5,471,200 5,720.600 506,000 11,697,800
Project and Operations Expenditures
Program Management 6,238,300 6,238,300
Projects - General - 118,000 305.000 423,000
Rail 1,959.000 1,959,000
Motorist Assistance 2,992,700 2,992,700
Commuter Assistance - 2,722.200 - 2,722,200
Engineering 10,000 70,089,000 685,000 70,784,000
Construction - 84,179,600 5,699,000 89,878,600
. Right of Way and Land 20,000 122,660,000 66,025,000 188,705,000
1 SCRRA Contribution 5,979,600 5,979,600
1 Special Studies 4,380.800 547,500 4,928.300
Special Transportation/Transit 7,714,400 7,714,400
Local Streets and Roads 50,085,300 50,085,300
Regional Arterials - Coachella Valley - 8,781,300 - 8,781,31)0
LTF Disbursements 1,050,000 79,698,700 - 80,748,700
. STA Disbursements - 8 933 900 - 8 933.900
TOTAL Project and Operations Expenditures 13,517,400 444,947,900 72,409,000 - 530.874,300
Capital Ouday 333,100 556,900 890,000
Debt Service
Principal and Interest 9,200,000 35,540,100 44,740,100
Cost of Issuance 850.000 850.000
TOTAL Debt Service 10,050,000 35,540,100 45,590,100
Other Financing Uses: Transfers Out 36 804 400 39,795 800 76,600,200
. TOTAL Expenditures and Other Financing Uses $--22-651Rr10 $ A91443.90Q a 122 80.800 S 35.540.10D $ 572 305 400
•
18
Table 21 - Highway, Regional Artertal, and Rail Programs FY 2008/09
Description (details presented /n _aeCJlon 7.3, exempt as Intl/cater&
Projects General
Bechtel Program Management and Contract Administration $ 5,434,300
SCRRA Program Management 804000
TOTAL PROJECTS GENERAL 5 8,238,100
Highway Engineering
SR-60 East Junction to 1-215 HOV Lanes Con ertor $ 2.000600
SR-74/G Street to 1-215 1.970.000
SR-748-15 to 7th Street 100600
SR-91 HOT and Meted FlOW Lanes 9600.000
SR-91/SR-71 Connectors 3,700,000
1-10 Truck Climbing Lane
300600
1-15 Corridor and HOT Lanes - 11,600.000
1-215A-15 to Scott Road Meted Flow Lanes 2600,000
1-215/Sccll Road to Nuevo Road Mixed Flow Lanes 3456 000
1-215/Nuevo Road to Box Springs Road HOV Lanes - 1,100.000
1-15/Cajatro Interchange
0,
1-215 Br -County 750,00D
D
SR-79 Reafignment 3600600
SR-111 City Projects (Cathedral Cry. Indio, La Onirda, and Rancho homage) 4,030,000
Mid County Pakway 3000
SUBTOTAL HIGHWAY ENGINEERING 47106000
Regional Arterial Engineering
Various Western County TUMF Regional Arterial Projects 11698000
SUBTOTAL REGIONAL ARTERIAL ENGINEERING- 11,648 000
Raft Engineering
Perils Valley line
12,03000
SUBTOTAL RAIL ENGINEERING t2,IXm600
TOTAL HIGHWAY, REGIONAL ARTERIAL, AND RAIL ENGINEERING $ 76784,000
Highway Construction
SR-60 HOV Lanesil-15 to Redlands Boulevard $ 10,000
SR-74/1-15 to 7th Street 867,000
SR-91Nan Buren Interchange 7600.000
SR-91/La Siena Interchange 17,000600
SR-91/Green River Road Interchange 2,500 000
SR-91/Adams Street to SR-00/SR-91/1-215 Interchange 20,000.000
SR-111 and SR-86 Cry Projects (Cathedral Cry, Indio, La puunta, and Rancho Mirage) 9537 s00
-151-215 TratUc Flow Detection Project Wads presented R Seclion 7.2, CommuferAss/stance) 2,300,000
SUBTOTAL HIGHWAY CONSTRUCTION
Regional Arterial Construction
Various Western County TUMF Regional Arterial Projects
SUBTOTAL REGIONAL ARTERIAL CONSTRUCTION
Rad Construction
Perris Multbnodal Facility
North Main Corona Station Parking Structure
SUBTOTAL RA0. CONSTRUCTION
TOTAL HIGHWAY, REGIONAL ARTERIAL, AND RAIL CONSTRUCTION $ 89676600
Highway Right of Way and Land
SRbO East Junction to I-215 HOV Lanes Contactor
SR-60 HOV Lanes/I-15 to Redlands Boulevard
SR-74 1-15 to 7th Street
SR-74/G Street to 1-215
SR-79 Realignment
SR-91/Adams Street to SR-60/SR-9111-215 Interchange
SR-91 HOT and Mixed Flow Lanes
SR-91/SR-71 Connectors
Mid Corny Parkway
I-15 Corridor and HOT Lanes
SUBTOTAL HIGHWAY RIGHT OF WAY AND LAND
Regional Arterial Right of Way and land
MSHCP Lard Acquisition In Western County and Coachella Valley 85,025 U00
Various Western County TUMF Regional Arterial Projects 14,440,000
SUBTOTAL REGIONAL ARTERIAL RIGHT OF WAY AND LAND 79,465000
59,814,600
10,464,000
10,464,000
5,450,000
14,150,000
19,600600
$ 4,100,000
10600
1,570.600
3300000
10,050,000
17,200.000
10,000
10600
61,500,000
10,000
97,660.000
Rai Right of Way and Land
Pens Valley file 11,450.000
Paris Multincdal Facility 110.000
General right of way support services 20000
SUBTOTAL RAIL RIGHT OF WAY AR AND 11,5.90.000
TOTAL HIGHWAY, REGIONAL ARTERIAL, AND RAIL RIGHT OF WAY AND LAND $ 169705/000
GRAND TOTAL HIGHWAY, REGIONAL ARTERIAL, AND RAIL PROGRAMS $ 355605,900
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Budget Process
• Resource estimation and allocation
• Commission policy goals and objectives
• Department goals and objectives
- Determine key assumptions
- Assess current year accomplishments
- Identify next year's initiatives
• Department budget development
• Compilation of Commission budget
• Review and adoption of budget
Guiding Policies
• Mobility Initiatives
• Goods Movement
• Improved System Efficiency
• Environmental Stewardship
• Economic Development
• Intermodalism and Accessibility
• Public and Agency Communications
• Financial and Administration
FY 2008/09 Budget
Challenges
• Decrease in sales tax revenues due to slow down in economy
- Effect on availability of Measure A funds for Western County and
Coachella Valley highway projects as 1989 Measure A Plan nears
completion
- Use of TDA reserves to fund transit operations
- Impact on Measure A administrative salaries and benefits limitation
• Significant decline in TUMF revenues due to housing market issues
- Effect on ability to program other phases of approved regional arterial
projects
- Use of TUMF fund balances for project expenditures
• Available capacity of Commercial Paper for existing commitments
and needs
- Plan of finance to issue sales tax revenue bonds to restore commercial
paper to $185 million capacity
Comparison To Other
Governments
• RCTC is project driven
- "Super" self-help county with Measure A to fund and
develop projects
- Flexibility to change scope and timing of projects
- Administrator of transit funding, not an operator
- Transportation focus
- Small staff with heavy use of consultants
• Most other governments are service driven
- Annual operations to provide services such as police/fire,
utilities, education, health, social services, and other
- Dependent on state funding, user fees, and taxes for
working capital purposes
- Larger staff to provide variety of services
Budget Summary
Beginning Fund Balance
Revenues
Commercial Paper Proceeds
Transfers In
Total Estimated Sources
332,396,200
110, 000, 000
76,600,200
Expenditures 595,795,200
Transfers Out 76,600,200
Total Estimated Uses
$ 489,006,600
518,996,400
672,395,400
Uses Over Sources (153,399,000)
(Offset by beginning fund balance)
Ending Fund Balance $ 335,607,600
Revenue Trends
$400,000,000
$350,000,000
$300,000,000
$250, 000, 000
$200,000,000
$150,000,000
$100,000,000
$50,000,000
FY 05/06
FY 06/07
FISCAL YEARS
FY 07/08
FY 08/09
o Investment Income
it Other Revenue
o TUMF Revenue
❑ Intergovernmental
o LTF Sales Tax
o Measure A Sales Tax
TUMF Revenue
2%
Intergovernmental
30%
Other Revenue
1%
LTF Sales Tax
24 %
Investment
Income
2%
Measure A Sales
Tax
41%
Revenue Breakdown
Measure A Sales Tax
LTF Sales Tax
Intergovernmental
TUMF Revenue
Other Revenue
Investment Income
TOTAL Revenues
FY 07/08
Revised Budget
$ 135,000,000
89,388,600
59,149,800
10,000,000
2,947,900
17, 096, 700
$ 313,583,000
FY 07/08
Projected
$ 135, 000, 000
78,153,700
28, 339, 800
10, 305, 700
2,002,100
14,175, 700
$ 267,977,000
FY 08/09
Budget
$ 135,000,000
80,579,000
98,943,000
7,730,000
1,927,200
8,217,000
$ 332,396,200
Expenditures
Management
Services
1%
Transit
15%
Local Streets
and Roads
8%
Debt Service
8%
Other Programs
6%
Capital Highway,
Regional Arterial,
and Rail
62%
Expenditures Breakdown
by Department
Management Services
Regional Issues
Planning and Programming
Rail Operations
Right of Way Management
Specialized Transit
Transit
Commuter Assistance
Motorist Assistance
Capital Highway, Rail and Regional Arterial
Local Streets and Roads
Debt Service
TOTAL
FY 07/08
Revised Budget
$ 5,635,300
893,100
8,977,500
9,034,100
1,162,500
6,323,500
96,013,200
6,450,300
5,184,100
355,056,300
50,087,500
42,225,900
$ 587,043,300
FY 07/08
Projected
$ 4,963,400
790,200
1,741,800
8,601,600
619,000
5,257,100
91,459,200
3,146,400
4,204,400
155,537,100
50,087,500
150,723,300
$ 477,131, 000
FY 08/09
Budget
$ 5,608,000
915,600
6,168, 000
9,122,100
1,212,000
7,955,400
89,004,500
6,487,500
3,320,500
370,326,200
50, 085, 300
45,590,100
$ 595,795,200
Department Expenditure
Highlights
• Program expenditures represent 910/0 of
expenditures
- 10/0 increase from FY 2007/08 budget
• Highway, Rail, and Regional Arterial Projects
- SR-91 HOV lanes ROW and engineering
- SR-79 realignment ROW and engineering
- Mid County Parkway ROW and engineering
- North Main Corona Station Parking Structure
- SR-91, I-15, and I-215 Corridor engineering
- Perris Valley Line ROW and preliminary engineering
- Land acquisition for WC/CV MSHCP
total
Expenditures Breakdown
by Function
Personnel
Professional
Support
Projects & Operations
Debt Service & Cost of Issuance
Capital Outlay
FY 07/08 FY 07/08
Revised Budget Projected
$ 7,589,400
8,474, 600
3,604,700
524,206,700
42,225, 900
942,000
$ 5,062,300
4,165, 500
2,674,300
314,210,500
150, 723, 300
295,100
FY 08/09
Budget
$ 6,743,000
6,854,300
4,843,500
530, 874, 300
45,590,100
890,000
TOTAL Expenditures $ 587, 043, 300 $ 477,131, 000 $ 595, 795, 200
Expenditures Breakdown
Capital Outlay
0%
Debt Service
and Costs of
Issuances
8%
Personnel
1%
Professional
1%
Support
1%
Projects and
Operations
89%
Functional Expenditure
Highlights
• Personnel based on 45 FTE
- 3% salary increase pool
• Professional costs have decreased 190/0
• Support costs have increased 340/0
• Capital outlay relates to an improved
database management system and Rail
property improvements
Personnel Cost Trends
$8,000,000
$7,000,000
$6, 000, 000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
a
1
hRb
t E
3
r
x
F
�.
_
Ih
1 S
Tab
d
4
0 Budget
® Actual
Measure A Administration
CO
c Projected
0
n
Actual
0
0.00%
0.50%
1.00%
LI Salaries and Benefits % O Administrative Costs %
1.50%
2.00% 2.50%
3.00% 3.50%
• Measure A limits administrative salaries and benefits to
10/0 of Measure A sales tax revenues
• Commission policy for total administration costs not to
exceed 40/0 of Measure A sales tax revenues
New Steps
• Continued vigilance
- Sales tax revenue trends
o Measure A administrative salaries and benefits
o Funding needs for transit operators
- TUMF revenue activity
- Timeliness of federal and state reimbursements
• Receive input for the proposed budget today and
continue the public hearing to the June 11 2008
Commission meeting
• Review the final budget draft and close the public
hearing at the June 111 2008 Commission meeting
• Adopt the final budget at June 11, 2008 Commission
meeting
i
AGENDA ITEM 8A
"
R I V E R S I D E
C O U N T Y T R A N S P O R T A T I O N C O M M I S S I O N
D A T E :
M a y ; 1 4 , 2 0 0 8
T O :
R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n
F R O M :
B u d g e t a n d I m p l e m e n t a t i o n C o m m i t t e e
A n n e H a l l b e r g , A c c o u n t i n g S u p e r v i s o r
T h e r e s i a T r e v i n o , C h i e f F i n a n c i a l O f f i c e r
T H R O U G H :
A n n e M a y e r , E x e c u t i v e D i r e c t o r
S U B J E C T :
Q u a r t e r l y I n v e s t m e n t R e p o r t
B U D G E T A N D I M P L E M E N T A T I O N C O M M I T T E E A N D S T A F F R E C O M M E N D A T I O N :
i
T h i s i t e m i s f o r t h e C o m m i s s i o n t o r e c e i v e a n d f i l e t h e Q u a r t e r l y I n v e s t m e n t R e p o r t
f o r t h e q u a r t e r e n d e d M a r c h 3 1 , 2 0 0 8 .
B A C K G R O U N D I N F O R M A T I O N :
A t t a c h e d a r e t h e q u a r t e r l y i n v e s t m e n t a n d c a s h f l o w r e p o r t s a s r e q u i r e d b y s t a t e
l a w a n d C o m m i s s i o n , p o l i c y . T h e c o u n t y o f R i v e r s i d e ' s I n v e s t m e n t R e p o r t f o r t h e
m o n t h e n d e d M a r c h 3 1 , 2 0 0 8 , i s a l s o a t t a c h e d f o r r e v i e w .
i
A t t a c h m e n t s :
1 ) Q u a r t e r l y I n v e s t m e n t R e p o r t f o r t h e Q u a r t e r e n d e d M a r c h 3 1 , 2 0 0 8
2 ) C o u n t y o f R i v e r s i d e I n v e s t m e n t R e p o r t f o r t h e M o n t h e n d e d M a r c h 3 1 , 2 0 0 8
A g e n d a I t e m 8 A
2 1
"
"
S t a t e m e n t o f C o m p l i a n c e
A l l o f t h e a b o v e i n v e s t m e n t s a n d a n y i n v e s t m e n t d e c i s i o n s m a d e f o r t h e q u a r t e r e n d e d
M a r c h 3 1 , 2 0 0 8 w e r e i n f u l l c o m p l i a n c e w i t h t h e C o m m i s s i o n ' s i n v e s t m e n t p o l i c y a s
a d o p t e d o n A p r i l 9 , 2 0 0 8 .
T h e C o m m i s s i o n h a s a d e q u a t e
c a s h f l o w s f o r s i x m o n t h s o f o p e r a t i o n s .
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I n a b o l d
m o v e r e m i n i s c e n t o f
G e n e r a l P a t t o n ' s
1 0 0 m i l e d a s h
t h r o u g h E u r o p e w i t h
h i s r A r m y t o s a v e
t h e e n c i r c l e d 1 0 1 "
A i r b o r n e a t B a s -
t o g n e d u r i n g t h e
b a t t l e o f t h e B u l g e ,
B e r n a n k e a n d h i s
c o h o r t s a t t h e F E D
s p r u n g t o a c t i o n I n o r d e r t o r e s c u e o u r b e s i e g e d f i n a n c i a l s y s -
t e m . S i n c e S e p t e m b e r o f l a s t y e a r , t h e F E D h a s n o w l o w e r e d
t h e f u n d s r a t e 3 0 0 b p s , f o r a t o t a l o f s i x c u t s , o n e o f w h i c h w a s
I n t e r - m e e t i n g . T h e F E D h a s a l s o s l a s h e d t h e d i s c o u n t r a t e 3 7 5
b p s . s i n c e A u g u s t o f l a s t y e a r .
O n e n o w h a s t o q u e s t i o n , w h a t m o r e c a n t h e F E D
d o b e f o r e I t s t a r t s r u n n i n g o u t o f a m m o t o h e l p f i g h t o f f t h i s
e c o n o m i c s l o w d o w n ? O n t h e o t h e r h a n d , b y f l o o d i n g t h e s y s -
t e m w i t h l i q u i d i t y v i a d r a s t i c a l l y l o w e r r a t e s , c h e a p c a s h c a n
l e a d t o I n f l a t i o n , w h i c h c r e a t e s a n o t h e r e n e m y t h e F E D m u s t
c o n t e n d w i t h . I t ' s l i k e f i g h t i n g a b a t t l e a n d b e i n g s u r r o u n d e d o n
a l l s i d e s ; J u s t a s t h e 1 0 1 " A i r b o r n e a t B a s t o g n e h a d t o h o l d o f f
t h e e n e m y w h i l e f a i l i n g t o g a i n a n y g r o u n d .
S o w h a t a r e t h e p o l i c y m a k e r s t o d o 7 B e i n n o v a -
t i v e , a n d l i k e P a t t o n , c h a r g e i n f o r t h e r e s c u e . T h e F E D h a s
e x t e n d e d a n e w l e n d i n g p r o g r a m f o r t h e e m b a t t l e d b r o k e r
d e a l e r s . T h e y a r e b a s i c a l l y m a r c h i n g t o t h e h e a r t o f t h e p r o b -
l e m b y e x c h a n g i n g m o r t g a g e - b a c k e d b o n d s , w h i c h i n m a n y
c a s e s a r e I l l i q u i d o r t r a d i n g a t h u g e d i s c o u n t s , a n d s w a p p i n g
t h e m f o r T r e a s u r y b o n d s . T h i s m o v e i s a n e w t a c t i c a n d a b i g
d e p a r t u r e f r o m t h e t r a d i t i o n a l r e m e d i e s o f t h e p a s t .
F l a s h b a c k t o l a s t y e a r s ' M a r c h e d i t i o n ; w e w r o t e o f
o u r p e n d i n g , n e w a n d i m p r o v e d . I n t e r a c t i v e V o i c e R e s p o n s e
( I V R ) p h o n e s y s t e m 8 I n t e r a c t i v e W e b R e s p o n s e ( I W R ) w e b -
s i t e . W e a r e h a p p y t o r e p o r t t h a t a l o n g w i t h a n e w l y I n t e g r a t e d
f r o n t c o u n t e r , t h e y a r e b o t h I n p l a c e a n d a r e e x p e d i t i n g t h e
c o l l e c t i o n p r o c e s s b e t t e r t h a n e v e r b e f o r e , W e w i l l c o n t i n u e t o
l o o k f o r n e w w a y s t o m a k e s t r i d e s I n b e t t e r s e r v i n g t h e t a x p a y -
e r s o f R i v e r s i d e C o u n t y .
P a u l M c D o n n e l l
T r e a s u r e r - T a x C o l l e c t o r
A o a t h L . n c l
V a l u e
n t h I [ : n d l 3 � i i k J a p e r G a i n o r - P a p e r G a i n o r 1 3 o o l t .
V a l u e
" " L a s s ( $ )
L o s s ( 9 0 1 ' i r i d
r s . )
t 1 1 f i ��d
D u r a t i o n
M a r c h
5 , 5 3 9 , 8 0 8 , 3 3 7 . 7 8
5 , 5 1 8 , 0 6 0 , 4 0 0 . 1 6
2 1 , 7 4 7 , 9 3 7 . 6 2
0 . 3 9 % 3 . 9 5
1 . 0 4 0 . 9 7
r
J a n u a r y
5 , 4 2 6 , 2 2 6 , 4 4 1 . 6 6 5 , 4 0 0 , 6 9 4 , 3 6 1 . 8 7
2 5 , 5 3 2 , 0 7 9 . 7 9
0 . 4 7 % 4 . 5 7
0 . 8 8
0 . 8 2
N o v e m b e r
5 , 0 1 6 , 6 4 4 , 0 3 9 . 9 6
5 , 0 0 3 , 6 7 6 , 3 0 4 . 8 3 1 2 , 9 6 7 , 7 3 5 . 1 3
0 . 2 6 % 4 . 9 9 0 . 9 0 0 . 8 4
* M a r k e t v a l u e s d o n o t i n c l u d e a c c r u e d i n t e r e s t
2 4
The federal funds rate was cut by
75 basis points to 2.25% in March.
The next Fed meeting is scheduled
for April 30. The 2 year T-Note was
yielding 1.62% (down 3bps,) while
the 10 year T-Note was yielding
3.45% (down 8bps.) For March the
Pool had a decrease of 47bps, in
the average monthly yield,
3 M b US.
Treaauly 136; ;'(a:47)
6MoUS
Treasury Bill 151 (0.32)
2 Yr US Treasury,
Note ...
5 Yr US Treasury
Note 2.46 (D.04)
1DYr US
Treasury Note;' 335'' (6.0$).
FED Fund Rate 2.25 (0.75)
162.. (6.03)
D•ud9,011
(barrei) 1015.5 (0,26)
Gold (Ounce) 934.93 (36.72)
1
S&kP 5500
12214,40 .
1.322.70
*0(6
(7.93)
Pagel
•
Maturity Distribution
30%
25%
20%
15%
10%
5%
0%
30 days or 30 - 90 90 Days - 1 1 - 2 Years 2 - 3 Years
Less
Days
Year
Over 3
Years
Sector breakdown
Cash Equivalent
aMMF
620,000,000
0.08 2.68
Negotiable CDs
234,000,000
0,15
3.41
M unlolpal Bonds
112,853,839 1.3
4.34
5,539,806,338 1.04 3.67
/1- 1 / P-1 or betle
19111.2.
Feder al Agoncy .
62 02 ,3
Cash nows2
7'36b616
o<
iQr�p: en.�.1
.1cie.:e9 83e3-
Maturitic , x.av
04/2008
72.7
+u
09/2008
655.7
832.5
(I76.8)
104.6
11/2008
894.6
706.4
188.2
188.2
45.2
1/2009 626.7
1,316.8
(690.1)
93.6
3/2009
710.8
856,6
(145.7),
' 25.0
1 1.279 o (1 312.3
101 3
3,_;{'.3
r/.111,n9
25
•
1 Treasurer's Institutional Money Market Index (TIMMIJ
is compiled and reported by the Riverside County Treas-
urer's Capital Markets division, It is a composite index
derived from the average of three multi -billion dollar
AAA rated Prime (funds that invest in a diversified
portfolio of U.S. dollar denominated money market
instruments including U.S. Treasuries, government
agencies, bankers' acceptances, commercial paper,
certificates of deposits, repurchase agreements, etc)
portfolios that the Treasurer tracks. Further details
available upon request.
s The Pooled Investment Fund cash flow requirements
are based upon a 12 month historical cash flow model.
Based upon projected cash receipts and maturing
investments, there are. sufficient funds to meet future
cash flow disbursements over the neat 12 months.
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AGENDA ITEM 8B
RIVERSIDE COUNTY TRANSPORTATION COMM/SS/ON
DATE:
May 14, 2008
TO:
Riverside County Transportation Commission
FROM:
Budget and Implementation Committee
Michele Cisneros, Accounting and Human Resources Manager
THROUGH:
Anne Mayer, Executive Director
SUBJECT:
Interfund Loan Activity Report
BUDGET AND IMPLEMENTATION COMMITTEE AND STAFF RECOMMENDATION:
This item is for the Commission to receive and file the Interfund Loan Activity
Report.
BACKGROUND INFORMATION:
At its April 14, 2004 meeting, the Commission approved the Interfund Loan Policy
and adopted Resolution No. 04-009, Resolution of the Riverside County
Transportation Commission to Authorize Interfund Loans". Subsequently, the
Commission requested that the interfund loan activity be reported on a quarterly
basis. The attached report includes all interfund loan activity through
March 31, 2008. The total outstanding interfund loans aggregate $1,236,945 as
of March 31, 2008.
Attachment: Interfund Loan Activity Report
Agenda Item 8B
34
" " "
R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n
I n t e r f u n d L o a n A c t i v i t y R e p o r t
F o r a n d q u a r t e r e n d e d M a r c h 3 1 , 2 0 0 8
L o a n
A m o u n t R e p a y m e n t A m o u n t
D a t e o f L o a n o f L o a n B e g i n s O u t s t a n d i n g L e n d i n g F u n d B o r r o w i n g F u n d P u r p o s e o f L o a n
M a r c h 4 , 2 0 0 4 2 7 5 , 0 0 0 J u l y 1 , 2 0 0 9 2 7 5 , 0 0 0 1 9 8 9 M e a s u r e A - W C C o m m u t e r 1 9 8 9 M e a s u r e A - W C H i g h w a y ( 2 2 2 ) A d d i t i o n a l l o c a l m a t c h f o r t h e S R - 7 1
A s s i s t a n c e ( 2 2 6 ) W i d e n i n g / A n i m a l C r o s s i n g P r o j e c t
J u n e 3 0 , 2 0 0 7 4 8 6 , 4 0 2 J u l y 1 , 2 0 0 9 4 8 6 , 4 0 2 1 9 8 9 M e a s u r e A - W C H i g h w a y ( 2 2 2 ) 2 0 0 9 M e a s u r e A - W C H i g h w a y I m p r o v e m e n t s ( 2 6 2 )
A d v a n c e 2 0 0 9 M e a s u r e A 1 . 2 1 5
B l C o u n t y p r o j e c t ( M a x i m u m l o a n
a v a i l a b l e o f $ 2 m i l l i o n )
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c a p i t a l
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3 5
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1 1
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R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N C O M M / S S / O N
D A T E :
M a y 1 4 , 2 0 0 8
T O :
R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n
F R O M :
B u d g e t a n d I m p l e m e n t a t i o n C o m m i t t e e
S h i r l e y M e d i n a , P r o g r a m M a n a g e r
T H R O U G H :
A n n e M a y e r , E x e c u t i v e D i r e c t o r
S U B J E C T :
N e e d F o r A d d i t i o n a l F u n d i n g f o r t h e S t a t e R o u t e
O c c u p a n c y V e h i c l e L a n e P r o j e c t
9 1
H i g h
B U D G E T A N D I M P L E M E N T A T I O N C O M M I T T E E A N D S T A F F R E C O M M E N D A T I O N :
T h i s i t e m i s f o r t h e C o m m i s s i o n t o :
1 ) A p p r o v e f u n d i n g u p t o $ 5 1 m i l l i o n f o r t h e S R - 9 1 h i g h o c c u p a n c y
v e h i c l e ( H O V ) r i g h t - o f - w a y p h a s e t o b e f u n d e d b y a c o m b i n a t i o n o f
f e d e r a l f u n d s a n d a T r a f f i c C o n g e s t i o n R e l i e f P r o g r a m ( T C R P ) l e t t e r o f
n o p r e j u d i c e ( L O N P ) r e i m b u r s e m e n t b y C a l t r a n s ;
2 ) A p p r o v e u p t o $ 3 . 8 m i l l i o n o f 1 9 8 9 M e a s u r e A H i g h w a y f u n d s a s a
l o a n t o m a t c h t h e f e d e r a l f u n d s f o r c a s h f l o w p u r p o s e s u n t i l t h e T C R P
L O N P f u n d s a r e a v a i l a b l e t o p a y b a c k a n y M e a s u r e A f u n d s u s e d ; a n d
3 ) A u t h o r i z e t h e E x e c u t i v e D i r e c t o r , p u r s u a n t t o l e g a l c o u n s e l r e v i e w , t o
e x e c u t e t h e C o o p e r a t i v e A g r e e m e n t A m e n d m e n t N o . 0 8 - 3 1 - 0 0 2 - 0 1
a n d C o r r i d o r M o b i l i t y I m p r o v e m e n t A c c o u n t ( C M I A ) b a s e l i n e
c e r t i f i c a t i o n a m e n d m e n t o n b e h a l f o f t h e C o m m i s s i o n .
B A C K G R O U N D I N F O R M A T I O N :
T h e S R - 9 1 H O V l a n e p r o j e c t , f r o m A d a m s S t r e e t t o t h e 6 0 / 9 1 / 2 1 5 i n t e r c h a n g e ,
w a s a p p r o v e d f o r C M I A f u n d s i n t h e a m o u n t o f $ 1 5 7 , 1 9 8 , 0 0 0 f o r t h e c o n s t r u c t i o n
p h a s e . T h e a p p r o v a l o f t h e s e f u n d s c o m p l e t e d t h e f u n d i n g p i c t u r e b a s e d o n
e n g i n e e r i n g e s t i m a t e s a s o f J a n u a r y 2 0 0 7 .
T h e e n v i r o n m e n t a l d o c u m e n t f o r t h e S R - 9 1 H O V p r o j e c t w a s a p p r o v e d o n
A u g u s t 3 1 , 2 0 0 7 . C a l t r a n s i s c u r r e n t l y w o r k i n g o n t h e d e s i g n p h a s e a n d f i n a l i z i n g
r i g h t - o f - w a y c o s t s . T h e l a t e s t e s t i m a t e f o r r i g h t - o f - w a y i n d i c a t e s u p t o a n
a d d i t i o n a l $ 5 1 m i l l i o n m a y b e n e e d e d f o r t h i s p h a s e . N o w t h a t t h e d e s i g n i s 3 5 %
c o m p l e t e , t h e n u m b e r o f r e q u i r e d p a r c e l a c q u i s i t i o n s h a s i n c r e a s e d f r o m 4 9 t o 7 0
p a r c e l s . I n a d d i t i o n , t h e n u m b e r o f c o n f l i c t s w i t h u t i l i t i e s h a s s u b s t a n t i a l l y
i n c r e a s e d .
A g e n d a I t e m 8 C
3 6
The original estimate and current programmed amount for right-of-way is
$24 million of State Transportation Improvement Program (STIP) funds. The.STIP
funds were allocated at the February 2008 California Transportation Commission
(CTC) meeting. The CMIA agreement between the CTC and the Commission states
that any cost increases on CMIA projects will be funded by theprojectsponsor, or
in this case, the Commission. Additionally, CMIA projects are monitored by the
CTC to ensure project milestones are met and funding is secured. The CTC
website includes the project milestone dates for each CMIA project to ensure
accountability of the bond funds.
Due to the cost increase for right-of-way, an amendment to the CMIA baseline
certification is needed prior to the next CTC meeting in May to prevent this project
from being placed on the "watch" list, which is a list of projects in jeopardy of
losing CMIA funds.
Staff has reviewed the funding availability and is proposing to fully fund the
right-of-way phase through a combination of a TCRP LONP reimbursement and
Congestion Mitigation and Air Quality (CMAQ) program funds.
In 2005, the Commission approved a loan to the state of $21 million of CMAQ
funds to cover TCRP funds that were suspended due to the 2003 budget crisis.
The repayment is anticipated to occur when the 2008/09 State budget is passed.
Utility Relocations
Staff has identified up to $30 million of federal Congestion Mitigation and Air
Quality (CMAQ) program funds that are available for programming this fiscal year.
Staff proposes that these funds be used to cover the utility relocation cost
increases currently estimated at $25 million. The availability of the CMAQ funds is
due to project schedule delays, which frees up capacity this fiscal year. Staff
proposes to encumber $20-25 million of the CMAQ funds within the next month.
When design plans are closer to completion and it is determined more funds are
needed staff will encumber additional CMAQ funds up to $30 million.
Federal funds are required to have a local match. Staff proposes that the match be
funded with the TCRP LONP repayment. Additionally, staff recommends that up to
$3.8 million of 1989 Measure A Highway funds be approved as a loan to match
the federal funds for cash flow purposes until the TCRP LONP funds are available
to pay back any Measure A funds used.
Agenda Item 8C
37
"
"
"
A c q u i s i t i o n s
S t a f f r e c o m m e n d s t h a t T C R P L O N P f u n d s t h a t a r e n o t u s e d f o r m a t c h i n g t h e u t i l i t y
r e l o c a t i o n s b e a p p r o v e d f o r r i g h t - o f - w a y a c q u i s i t i o n c o s t i n c r e a s e s . T h i s a m o u n t i s
a p p r o x i m a t e l y $ 1 7 m i l l i o n . T h e $ 2 4 m i l l i o n o f S T I P f u n d s a l l o c a t e d i n F e b r u a r y
2 0 0 8 i s s u f f i c i e n t t o f u n d c u r r e n t y e a r r i g h t - o f - w a y a c q u i s i t i o n a c t i v i t i e s .
I n s u m m a r y , s t a f f r e c o m m e n d s f u n d i n g t h e r i g h t - o f - w a y s h o r t f a l l b y p r o g r a m m i n g
u p t o $ 3 0 m i l l i o n o f f e d e r a l C M A Q f u n d s a n d $ 2 1 m i l l i o n o f t h e T C R P l o a n
r e p a y m e n t f r o m C a ! t r a n s . T h e u r g e n c y f o r r e s o l v i n g t h e a d d i t i o n a l f u n d i n g n e e d i s
s o t h a t t h e C o m m i s s i o n c a n a m e n d t h e C M I A b a s e l i n e c e r t i f i c a t i o n a n d c o o p e r a t i v e
a g r e e m e n t a n d m e e t t h e C M I A d e l i v e r y s c h e d u l e .
F i n a n c i a l I n f o r m a t i o n
I n F i s c a l Y e a r B u d g e t :
N A
Y e s
Y e a r :
F Y 2 0 0 7 / 0 8
F Y 2 0 0 8 l 0 9
A m o u n t :
$ 3 0 M i l l i o n
$ 2 1 M i l l i o n
S o u r c e o f F u n d s :
C M A Q - S 3 0 M i l l i o n s t a t e p a s s - t h r o u g h )
T C R P L o a n R e p a y m e n t - $ 2 1 M i l l i o n
B u d g e t A d j u s t m e n t :
N o
G L A N o . :
2 2 2 3 1 8 1 4 0 1 P 3 0 0 5
F i s c a l P r o c e d u r e s A p p r o v e d :
\ 1 4 , 4 4 4 , 0 3 4 , 4 4 ,
D a t e :
0 4 / 1 8 / 2 0 0 8
A g e n d a I t e m 8 C
3 8
AGENDA ITEM 8D
"
"
R I V E R S / D E C O U N T Y T R A N S P O R T A T I O N C O M M / S S / O N
D A T E :
M a y 1 4 , 2 0 0 8
T O :
R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n
F R O M :
T a n y a L o v e , P r o g r a m M a n a g e r
T H R O U G H :
A n n e M a y e r , E x e c u t i v e D i r e c t o r
S U B J E C T :
A l a m e d a C o r r i d o r E a s t S a f e , A c c o u n t a b l e , F l e x i b l e , E f f i c i e n t
T r a n s p o r t a t i o n E q u i t y A c t : A L e g a c y f o r U s e r s E a r m a r k U p d a t e
S T A F F R E C O M M E N D A T I O N :
T h i s i t e m i s f o r t h e C o m m i s s i o n t o :
1 ) A l l o c a t e $ 4 . 0 5 m i l l i o n o f t h e C o m m i s s i o n ' s S a f e , A c c o u n t a b l e , F l e x i b l e ,
E f f i c i e n t T r a n s p o r t a t i o n E q u i t y A c t : A L e g a c y f o r U s e r s ( S A F E T E A - L U )
A l a m e d a C o r r i d o r E a s t ( A C E ) e a r m a r k f u n d s t o t h e c i t y o f R i v e r s i d e f o r t h e
I o w a A v e n u e g r a d e s e p a r a t i o n ;
2 ) D e o b l i g a t e $ 4 . 0 5 m i l l i o n o f S u r f a c e T r a n s p o r t a t i o n P r o g r a m ( S T P ) f u n d s t h a t
w e r e p r e v i o u s l y a l l o c a t e d t o t h e c i t y o f R i v e r s i d e f o r t h e I o w a A v e n u e g r a d e
s e p a r a t i o n ;
3 ) A p p r o v e t h e r e p r o g r a m m i n g o f $ 6 0 0 , 0 0 0 i n S A F E T E A - L U f u n d s f r o m t h e
M c K i n l e y S t r e e t g r a d e s e p a r a t i o n t o A u t o C e n t e r D r i v e g r a d e s e p a r a t i o n ; a n d
4 ) A p p r o v e t h e R i v e r s i d e C o u n t y A C E c o r r i d o r u p d a t e d f i n a n c i a l p l a n f o r
s u b m i s s i o n t o t h e F e d e r a l H i g h w a y A d m i n i s t r a t i o n ( F H W A ) .
B A C K G R O U N D I N F O R M A T I O N :
I n J u l y 2 0 0 5 , C o n g r e s s a p p r o v e d t h e r e a u t h o r i z a t i o n o f t h e F e d e r a l T r a n s p o r t a t i o n
B i l l c o m m o n l y r e f e r r e d t o a s S A F E T E A - L U . A m o n g t h e c a t e g o r i e s o f e a r m a r k s a r e
t h e " P r o j e c t s o f N a t i o n a l a n d R e g i o n a l S i g n i f i c a n c e . " T h e C o m m i s s i o n j o i n e d w i t h
o t h e r s i n s e e k i n g a n e a r m a r k f o r $ 1 2 5 m i l l i o n f o r t h e A C E ; t h r o u g h t h i s p r o c e s s , i t
w a s a g r e e d t h a t t h e e a r m a r k w o u l d b e s p l i t e v e n l y b e t w e e n L o s A n g e l e s , O r a n g e ,
R i v e r s i d e , a n d S a n B e r n a r d i n o C o u n t i e s a n d u s e d t o f u n d g r a d e s e p a r a t i o n p r o j e c t s
t o m i t i g a t e t h e i m p a c t s o f e v e r - i n c r e a s i n g f r e i g h t t r a f f i c . I n A p r i l 2 0 0 6 , t h e
C o m m i s s i o n a p p r o v e d $ 2 1 m i l l i o n o f t h e $ 3 1 . 2 5 m i l l i o n o f t h e C o m m i s s i o n ' s
S A F E T E A - L U A C E e a r m a r k f u n d s l e a v i n g a f u n d b a l a n c e o f $ 1 0 . 2 5 m i l l i o n .
I n D e c e m b e r 2 0 0 7 , t h e C o m m i s s i o n a l l o c a t e d $ 6 . 2 m i l l i o n o f t h e r e m a i n i n g f u n d s
t o t h e c i t y o f C o r o n a f o r A u t o C e n t e r D r i v e a s p a r t o f t h e p r o j e c t n o m i n a t i o n s f o r
t h e T r a d e C o r r i d o r s I m p r o v e m e n t F u n d ( T C I F ) P r o p o s i t i o n 1 B f u n d i n g , l e a v i n g a n
e a r m a r k f u n d b a l a n c e o f $ 4 . 0 5 m i l l i o n t o b e a l l o c a t e d o n a f i r s t c o m e , f i r s t - s e r v e d
b a s i s :
A g e n d a I t e m 8 D
3 9
Project
Allocation Fund Balance
$ 31.25
Avenue 48/Dillon Road $ 2.50
Auto Center Drive 7.70
Clay Street 2.50
Jurupa Avenue 6.00
McKinley Street 1.00
Sunset Avenue 7.50
Total Allocated: $ 27.20 $ 27.20
Balance Available: $ 4.050
Commission staff is requesting that the balance of $4.05 million be allocated to the
city of Riverside for the Iowa Avenue grade separation, which was recently
awarded $13 million in TCIF funds. The project, which is designed as an overpass,
is scheduled to begin construction by March 2010. In exchange for the $4.05 in
SAFETEA-LU funds, staff is requesting that $4.05 million of the $8 million in STP
funds that was originally allocated to the city of Riverside for the Iowa Avenue
grade separation be deobligated'.
To cover design and right-of-way costs on Auto Center Drive, Commission staff
received a request from the city of Corona to reprogram $600,000 of the funds
originally programmed in 2006 for the McKinley Street grade separation to Auto
Center Drive. If approved, this would add an additional $600,000 to Auto Center
Drive increasing the SAFETEA-LU allocation from $7.7 million to $8.3 million;
decreasing the McKinley Street earmark from $1 million to $400,000.
Once the various allocation and reprogramming requests are approved, staff will
work with the FHWA to update the Riverside County portion of the ACE Corridor
program application so that recipient agencies can draw down the funds identified
on the attached corridor plan spreadsheet.
Attachment: ACE Corridor Plan - Section 1301
' Total federal funding for the Iowa Avenue grade separation would remain at $8 million ($4.05 in
SAFETEA-LU + $3.95 in STP funds)
Agenda Item 8D
•
40
"
A L A M E D A C O R R I D O R - E A S T T R A D E C O R R I D O R P L A N
S e c t i o n 1 3 0 1
C C i l l k e 1
T a b l e C l
P r o j e c t A l l o c a t i o n
N o . Y e a r A g e n c y
P r o j e c t
Y e a r o f
T a s k E x p e n d i t u r e
L o c a l M a t c h
S A F E T E A - L U
S o u r c e
A m o u n t
% o f
T o t a l
A u t h o r i z e d
A m o u n t
N e t
C o m m i t t e d
P r o j e c t D e t a i l
P r o j e c t 1
1 F Y 0 7 R C T C
A v e 4 8 / D i l l o n R d
C o n s t r u c t i o n F Y 0 7
C i t y L o c a l
6 2 5 , 0 0 0
2 0 . 0 %
2 , 5 0 0 , 0 0 0
2 , 5 0 0 , 0 0 0
T o t a l - P r o j e c t N o . 1
6 2 5 , 0 0 0
2 0 . 0 %
2 , 5 0 0 , 0 0 0
2 , 5 0 0 , 0 0 0
P r o j e c t 2
2 F Y 0 7 R C T C
2 F Y 0 8 R C T C
J u m p s A v e n u e
J u r u p a A v e n u e
C o n s t r u c t i o n F Y 0 7
C o n s t r u c t i o n F Y 0 8
C i t y L o c a l
C i t y L o c a l
5 0 0 , 0 0 0
1 , 0 0 0 , 0 0 0
2 0 . 0 %
2 0 . 0 %
2 , 0 0 0 , 0 0 0
4 , 0 0 0 , 0 0 0
2 , 0 0 0 , 0 0 0
4 , 0 0 0 , 0 0 0
T o t a l - P r o j e c t N o . 2
1 , 5 0 0 , 0 0 0
2 0 . 0 %
6 , 0 0 0 , 0 0 0
6 , 0 0 0 , 0 0 0
P r o j e c t 3
3 F Y 0 8 R C T C
S u n s e t A v e n u e
C o n s t r u c t i o n F Y 0 8
C i t y L o c a l
1 , 8 7 5 , 0 0 0
2 0 . 0 %
7 , 5 0 0 , 0 0 0
7 , 5 0 0 , 0 0 0
T o t a l - P r o j e c t N o . 3
1 , 8 7 5 , 0 0 0
2 0 . 0 %
7 , 5 0 0 , 0 0 0
7 , 5 0 0 , 0 0 0
P r o j e c t 4
4 F Y 0 8 R C T C
4 F Y 0 9 R C T C
A u t o C e n t e r D r i v e
A u t o C e n t e r D r i v e
D e s i g n & R O W F Y 0 8
C o n s t r u c t i o n F Y 0 9
T U M F & C i t y L o c a l
C i t y L o c a l
4 2 0 , 0 0 0
1 , 2 4 0 , 0 0 0
2 0 , 0 %
2 0 . 0 %
2 , 1 0 0 , 0 0 0
6 , 2 0 0 , 0 0 0
2 , 1 0 0 , 0 0 0
6 , 2 0 0 , 0 0 0
T o t a l - P r o j e c t N o . 4
1 , 6 6 0 , 0 0 0
2 0 . 0 %
8 , 3 0 Q 0 0 0
8 , 3 0 0 , 0 0 0
P r o j e c t 5
5 F Y 0 7 R C T C
5 F Y 0 8 R C T C
C l a y S t r e e t
C l a y S t r e e t
P r e l i m i n a r y E n g F Y 0 8
D e s i g n F Y 0 9
C o u n t y L o c a l
C o u n t y L o c a l
2 2 5 , 0 0 0
4 0 0 , 0 0 0
2 0 . 0 %
2 0 . 0 %
9 0 0 , 0 0 0
1 , 6 0 0 , 0 0 0
9 0 0 , 0 0 0
1 , 6 0 0 , 0 0 0
T o t a l - P r o j e c t N o . 5
6 2 5 , 0 0 0
2 0 . 0 %
2 , 5 0 0 , 0 0 0
2 , 5 0 0 , 0 0 0
P r o j e c t 6
6 F Y 0 7 R C T C
6 F Y 0 8 R C T C
M c K i n l e y S t r e e t
M c K i n l e y S t r e e t
P r e l i m i n a r y E n g F Y 0 7
P r e l i m i n a r y E n g F Y 0 8
T U M F L o c a l
T U M F L o c a l
1 2 , 4 0 0
6 7 , 6 0 0
2 0 . 0 %
2 0 . 0 %
6 2 , 0 0 0
3 3 8 , 0 0 0
6 2 , 0 0 0
3 3 8 , 0 0 0
T o t a l - P r o j e c t N o . 6
8 0 , 0 0 0
2 0 . 0 %
4 0 0 , 0 0 0
4 0 0 , 0 0 0
P r o j e c t 7
7 F Y 0 8 R C T C
I o w a A v e n u e
R O W F Y 0 9
C i t y L o c a l
1 , 0 1 2 , 5 0 0
2 0 . 0 %
4 , 0 5 0 , 0 0 0
4 , 0 5 0 , 0 0 0
T o t a l - P r o j e c t N o . 7
1 , 0 1 2 , 5 0 0
2 0 . 0 %
4 , 0 5 0 , 0 0 0
4 , 0 5 0 , 0 0 0
T o t a l D e t a i l
7 , 3 7 7 , 5 0 0
2 0 . 0 %
3 1 , 2 5 0 , 0 0 0
3 1 , 2 5 0 , 0 0 0
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"
R I V E R S / D E C O U N T Y T R A N S P O R T A T I O N C O M M I S S I O N
D A T E :
M a y 1 4 , 2 0 0 8
T O :
R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n
F R O M :
P r o p e r t y C o m m i t t e e
S t e p h a n i e W i g g i n s , R e g i o n a l P r o g r a m s D i r e c t o r
M i n S a y s a y , R i g h t - o f - W a y M a n a g e r
T H R O U G H :
A n n e M a y e r , E x e c u t i v e D i r e c t o r
S U B J E C T :
A m e n d m e n t N o . 2 w i t h B R E P r o p e r t i e s f o r T r a n s i t
D e v e l o p m e n t a t t h e L a S i e r r a M e t r o l i n k S t a t i o n
O r i e n t e d
P R O P E R T Y C O M M I T T E E A N D S T A F F R E C O M M E N D A T I O N :
T h i s i t e m i s f o r t h e C o m m i s s i o n t o :
1 ) A p p r o v e A g r e e m e n t N o . 0 7 - 6 7 - 0 0 4 - 0 2 , A m e n d m e n t N o . 2 t o A g r e e m e n t
N o . 0 7 - 6 7 - 0 0 4 - 0 0 , w i t h B R E P r o p e r t i e s f o r t r a n s i t o r i e n t e d d e v e l o p m e n t
( T O D ) a t t h e L a S i e r r a M e t r o l i n k s t a t i o n ; a n d
2 ) A u t h o r i z e t h e C h a i r , p u r s u a n t t o l e g a l c o u n s e l r e v i e w t o e x e c u t e t h e
a g r e e m e n t o n b e h a l f o f t h e C o m m i s s i o n .
B A C K G R O U N D I N F O R M A T I O N :
A t i t s J u l y 1 2 , 2 0 0 6 m e e t i n g , t h e C o m m i s s i o n a w a r d e d a n e x c l u s i v e n e g o t i a t i n g
a g r e e m e n t ( E N A ) N o . 0 7 - 6 7 - 0 0 4 - 0 0 f o r j o i n t d e v e l o p m e n t a t t h e L a S i e r r a
M e t r o l i n k s t a t i o n t o B R E P r o p e r t i e s f o r a 1 8 0 - d a y p e r i o d . T h e E N A a l l o w s f o r t h e
C o m m i s s i o n t o n e g o t i a t e e x c l u s i v e l y w i t h B R E P r o p e r t i e s . A t i t s F e b r u a r y 1 4 ,
2 0 0 7 m e e t i n g , t h e C o m m i s s i o n a p p r o v e d A g r e e m e n t N o . 0 7 - 6 7 - 0 0 4 - 0 1 a u t h o r i z i n g
a s i x - m o n t h e x t e n s i o n o f t h e n e g o t i a t i n g p e r i o d .
R e p r e s e n t a t i v e s f r o m t h e C o m m i s s i o n , B R E P r o p e r t i e s , B e s t , B e s t & K r i e g e r , t h e
c i t y o f R i v e r s i d e P l a n n i n g a n d R e d e v e l o p m e n t , a n d K e y s e r M a r s t o n A s s o c i a t e s ( r e a l
e s t a t e f i n a n c i a l a d v i s o r y ) h a v e p a r t i c i p a t e d i n t h e n e g o t i a t i o n s . B r i e f i n g s w i t h
R i v e r s i d e P u b l i c U t i l i t i e s a n d R i v e r s i d e T r a n s i t A g e n c y r e p r e s e n t a t i v e s h a v e a l s o
b e e n h e l d .
T h e T O D p r o j e c t a t t h e L a S i e r r a s t a t i o n p r o p o s e d b y B R E P r o p e r t i e s c o n t e m p l a t e s
c o n s t r u c t i o n o f t w o 1 , 0 0 0 s p a c e p a r k i n g s t r u c t u r e s t o t h e C o m m i s s i o n f o r
M e t r o l i n k p a r k i n g i n e x c h a n g e f o r C o m m i s s i o n p r o p e r t y i n t w o p h a s e s . T h e f i r s t
p h a s e o p t i o n w o u l d t e r m i n a t e i n D e c e m b e r 2 0 0 9 , w h i l e t h e s e c o n d p h a s e o p t i o n
w o u l d t e r m i n a t e i n D e c e m b e r 2 0 1 2 .
A g e n d a I t e m 8 E
4 3
At its September 2007 meeting, the Commission approved Agreement
No. 08-67-018-00 with BRE Properties for a TOD option at the La Sierra station.
The proposed option agreement also contemplates the use of the Infrastructure
Financing Act (Government Code Section 5956-5956.10), which would require a
public hearing prior to the opening of each Metrolink parking structure related to a
parking fee to cover maintenance of the parking structure. The proposal does not
require a fee for the capital construction of the parking structure since the
Commission would convey its property to the developer, BRE Properties.
Need For Exclusive Negotiating Agreement Extension
Since the September 2007 meeting, the option agreement has not been executed
at the request of BRE Properties. During the last few months, the downturn in the
residential market coupled with the costs of the public infrastructure requirements
give pause to BRE Properties in light of their impact to the pro -forma. BRE
Properties continues to meet with the city of Riverside and Commission staff to
discuss funding alternatives. BRE recently submitted a joint application with the
Commission for Prop 1 C TOD funds for the parking structure at the . La Sierra
station. As a result, BRE Properties is requesting an ENA extension in order to
pursue other funding/financing options to complete its funding plan. Staff
recommends that the ENA extension term end September 30, 2008.
Agenda Item 8E
44
"
A G E N D A I T E M 8 F
"
"
"
R I V E R S / D E C O U N T Y T R A N S P O R T A T I O N C O M M I S S I O N
D A T E :
M a y 1 4 , 2 0 0 8
T O :
R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n
F R O M :
P r o p e r t y C o m m i t t e e
S h e l d o n P e t e r s o n , P r o g r a m M a n a g e r
M i n S a y s a y , R i g h t - o f - W a y M a n a g e r
T H R O U G H :
A n n e M a y e r , E x e c u t i v e D i r e c t o r
S U B J E C T :
P r o p e r t y E a s e m e n t A m e n d m e n t s t o A c c o m m o d a t e T r a n s i t O r i e n t e d
D e v e l o p m e n t P l a n s w i t h B R E P r o p e r t i e s A d j a c e n t t o t h e R i v e r s i d e
D o w n t o w n M e t r o l i n k S t a t i o n
P R O P E R T Y C O M M I T T E E A N D S T A F F R E C O M M E N D A T I O N :
T h i s i t e m i s f o r t h e C o m m i s s i o n t o :
1 ) A m e n d p r o p e r t y e a s e m e n t n o s . 7 3 0 6 0 a n d 3 1 3 7 5 6 t o a c c o m m o d a t e t r a n s i t
o r i e n t e d d e v e l o p m e n t ( T O D ) p l a n s w i t h B R E P r o p e r t i e s a d j a c e n t t o t h e
R i v e r s i d e D o w n t o w n M e t r o l i n k s t a t i o n ; a n d
2 ) A u t h o r i z e t h e C h a i r , p u r s u a n t t o l e g a l c o u n s e l r e v i e w , t o e x e c u t e t h e
a g r e e m e n t o n b e h a l f o f t h e C o m m i s s i o n .
B A C K G R O U N D I N F O R M A T I O N :
A f t e r t h e c o n s t r u c t i o n o f t h e s o u t h s i d e p l a t f o r m s a t t h e R i v e r s i d e D o w n t o w n
s t a t i o n , t h e C o m m i s s i o n e s t a b l i s h e d p r o p e r t y e a s e m e n t n o s . 7 3 0 6 0 a n d 3 1 3 7 5 6 i n
1 9 9 7 . T h e s e w e r e d e v e l o p e d f o r t h e p u r p o s e o f p r o v i d i n g p e d e s t r i a n a n d v e h i c u l a r
a c c e s s t o t h e p l a t f o r m f o r m a i n t e n a n c e a n d e m e r g e n c y p u r p o s e s a n d t o p r o v i d e
e m e r g e n c y a c c e s s , i n g r e s s a n d e g r e s s t o a n d f r o m t h e p l a t f o r m . T h e s e e a s e m e n t s
a r e l o c a t e d a l o n g t h e p r o p e r t y e a s t o f t h e s t a t i o n a n d p r o v i d e a c c e s s a l o n g t h e
c o n t i n u a t i o n o f 1 2 1 " S t r e e t t o H o w a r d A v e n u e a n d r o u g h l y f r o m t h e p e d e s t r i a n
a c c e s s l o c a t i o n w e s t t o w a r d s 1 4 ` " S t r e e t . F r o m t h e s t a t i o n p l a t f o r m , t h e r e i s a
p e d e s t r i a n c r o s s i n g o f t h e s t a t i o n t r a c k s a n d a g a t e t h a t p r o v i d e s a c c e s s t o t h e
e a s e m e n t .
T h e p r o p e r t y e n c u m b e r e d b y t h e s e e a s e m e n t s i s o w n e d i n f e e b y B R E P r o p e r t i e s
a n d i s c u r r e n t l y b e i n g d e s i g n e d a s a T O D t h a t w i l l i n c l u d e a 1 4 . 9 a c r e d e v e l o p m e n t
w i t h 4 2 7 r e n t a l a p a r t m e n t u n i t s a n d 7 7 1 p a r k i n g s p a c e s . T h e d e v e l o p e r i s
r e q u e s t i n g t h a t t h e C o m m i s s i o n m o d i f y t h e e x i s t i n g e a s e m e n t s t o r e l o c a t e t h e m t o
c o o r d i n a t e w i t h v e h i c l e a n d p e d e s t r i a n a c c e s s a r e a s d e s i g n a t e d w i t h i n t h e p r o j e c t
p l a n s . T h i s m e a n s t h a t t h e e a s e m e n t s w i l l s h i f t a p p r o x i m a t e l y 2 0 t o 5 0 f e e t w i t h i n
A g e n d a I t e m 8 F
4 5
the property to meet the proposed driveway locations. There will be no change in
the total area of the easements and the Commission's rights will be fully retained.
This change will support the creation of the first TOD in Downtown Riverside that
will help to revitalize the neighborhood and increase Metrolink ridership. There is
no fiscal impact with this easement modification.
Attachment: Site Plan with Current Easement
Agenda Item 8F
46
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i
AGENDA ITEM 8G
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
DATE:
May 14, 2008
TO:
Riverside County Transportation Commission
FROM:
Plans and .Programs Committee
Henry Nickel, Staff Analyst
Sheldon Peterson, Program Manager
THROUGH:
Anne Mayer, Executive Director
SUBJECT:
Commuter Rail Program Update
PLANS AND PROGRAMS COMMITTEE AND STAFF RECOMMENDATION:
This item is for the Committee to receive and file an update on the Commuter Rail
Program.
BACKGROUND INFORMATION:
Inland Empire -Orange County Weekend Service Performance
Q3/Q4 FY 07/08 Passenger Trips
IEOC Weekend Service
FY 06/07
—®—FY 07/08
A� e � w � o$ o� A° o� o0 0� o°
lac �acc° �a� aa� � k�� F°' <<° mac �aV �aV e 4$' P2 79
V q(l. �0 io `l% Of ^go e � qi ,th ,lit% `Lg F1 0
Daily passenger trips on the year-round Inland Empire -Orange County (IEOC) Metrolink
weekend service have continued to grow through the third quarter and into the fourth
quarter, providing 1,742 passenger trips quarter to date. This is an increase of nearly
24% over the 1,403 trips provided at this point last year. The success of this service
is due in large part to the coordinated marketing efforts among the Commission,
Orange County Transportation Authority (OCTA) and San Bernardino Associated
Governments. Most all responsibilities for marketing of the service have transitioned
to Metrolink; this has included revised seat drops, branding, and consolidation of the
various weekend services under a single promotional umbrella.
Agenda Item 86
48
La Sierra Photovoltaic Carport Structure Update
In furtherance of the Riverside Public Utilities (RPU) goal to have one megawatt of
local renewable resources in place by 2004, RPU and the Commission entered into an
agreement for the construction of a photovoltaic carport generation structure at the
Commission's La Sierra Metrolink station. Under the Self -Generation Incentive
Program, authorized by the California Public Utilities Commission at that time, more
than $1.2 million was allocated to the project. The program encouraged the
installation of self -generation technologies by offering monetary incentives.
Photovoltaic Carport Structure at the La Sierra Metrolink.
RPU maintains the power generation equipment while the renewable energy benefit is
shared with the Commission. As a result of the electricity generated by this facility
and its agreement with RPU, the Commission has reduced its electricity costs at the
station by nearly 60%. To date the Commission has saved an estimated $80,000
and is expected to save more than $400,000 over the anticipated 20-year life of the
facility. Additionally, the carport provides 128 covered spaces, an added benefit for
commuters utilizing the station.
May 17 Ride Free Day on the IEOC Line from Riverside Downtown Station
In order to further promote the IEOC weekend service and stimulate increased
ridership, the Commission has partnered with OCTA to provide a free ride day for
passengers who board the IEOC line at the Riverside Downtown station on Saturday
May 17. Passengers who board at the Riverside Downtown station will be provided a
special ticket allowing travel to any destination on the IEOC line between Riverside
Downtown station and Oceanside. The cost of this promotion is to be shared
between the Commission and OCTA. Marketing activities will include newspaper
advertisement, seat drops, station banners and online promotion on the Metrolink
website.
Bicycle Facility Upgrade at Riverside Downtown and North Main Corona Stations
To mitigate the costs of ever increasing Metrolink ridership and additional parking
facilities, and to promote alternatives to single driver auto commutes, it is important
for the Commission to reasonably accommodate alternative modes of transportation
to its stations. This includes connecting bicycle commutes. In order to accommodate
Agenda Item 8G
•
49
"
"
"
a n d p r o m o t e b i c y c l e r i d e r s h i p , t h e C o m m i s s i o n h a s i n v e s t e d i n b o t h b i c y c l e l o c k e r s
a n d r a c k s a t i t s W e s t C o r o n a , L a S i e r r a a n d P e d l e y s t a t i o n s . U n t i l r e c e n t l y , t h e
C o m m i s s i o n l a c k e d s e c u r e a n d c o v e r e d b i c y c l e f a c i l i t i e s a t i t s t w o m o s t u t i l i z e d
s t a t i o n s , R i v e r s i d e D o w n t o w n a n d N o r t h M a i n C o r o n a .
I n a d d i t i o n t o b i c y c l e r a c k s , l o c k e r s p r o v i d e a n a d d e d l e v e l o f s e c u r i t y a g a i n s t p o s s i b l e
t h e f t a n d v a n d a l i s m . H o w e v e r , c o n v e n t i o n a l l o c k e r s r e q u i r e c o n t i n u o u s m a i n t e n a n c e
a n d m a n a g e m e n t . L o c k m e c h a n i s m s b r e a k ; k e y s h a v e t o b e d i s t r i b u t e d , t r a c k e d a n d
h o p e f u l l y r e t u r n e d ; k e y d e p o s i t s a n d r e f u n d s h a v e t o b e t r a c k e d a n d a c c o u n t e d f o r ;
t h e p o t e n t i a l f o r m i s u s e , n o n - u s e a n d u n d e r u s e i s s i g n i f i c a n t a s c o n v e n t i o n a l l o c k e r s
a r e a s s i g n e d . A l l t h i s a d d s c o m p l e x i t y a n d c o s t t o a c o n v e n t i o n a l b i k e l o c k e r
p r o g r a m , d i m i n i s h i n g t h e b e n e f i t t o t h e C o m m i s s i o n a s w e l l a s t h e o v e r a l l p a s s e n g e r
e x p e r i e n c e .
T o a d d r e s s s u c h c o m p l e x i t y a n d c o s t s , a l t e r n a t i v e s t o c o n v e n t i o n a l b i k e l o c k e r s w e r e
e x p l o r e d . T h e p r i m a r y f a c t o r c o n t r i b u t i n g t o t h e c o m p l e x i t y a n d c o s t o f c o n v e n t i o n a l
l o c k e r s i s t h e d e s i g n . E s s e n t i a l l y m e t a l b o x e s , c o n v e n t i o n a l l o c k e r s p o s e p a r t i c u l a r
c h a l l e n g e s t o e n s u r e p r o p e r a n d e f f i c i e n t u s e . I n t h e p a s t , l o c k e r s h a v e b e e n u s e d f o r
s t o r a g e , r e m a i n e d a s s i g n e d b u t u n u s e d , a r e a n i d e a l h a b i t a t f o r a n y n u m b e r o f p e s t s
a n d p o s e a p o t e n t i a l s a f e t y t h r e a t c o n c e a l i n g d e v i c e s i n t e n d e d t o i n f l i c t p u b l i c h a r m .
D e m o n s t r a t i o n o f t h e B i k e L i d ' s c l a m s h e l l d e s i g n .
I n c o n s i d e r a t i o n o f t h e s e c o n c e r n s , t h e C o m m i s s i o n h a s p u r c h a s e d a n d i n s t a l l e d s i x
B i k e L i d s a t b o t h t h e R i v e r s i d e D o w n t o w n a n d N o r t h M a i n C o r o n a s t a t i o n s . T h e
B i k e L i d i s a c o m p e t i t i v e l y p r i c e d a l t e r n a t i v e p r o d u c t t h a t s i g n i f i c a n t l y a l l e v i a t e s b o t h
t h e c o m p l e x i t y a n d c o s t o f a t r a d i t i o n a l b i k e l o c k e r . T h e d e s i g n i s e s s e n t i a l l y h y b r i d ,
i n t e g r a t i n g t h e s i m p l i c i t y o f a b i k e r a c k w i t h a c l a m s h e l l h i n g e d l o c k a b l e c o v e r .
B i k e L i d s a l l o w f i r s t c o m e / f i r s t s e r v e d s i n g l e u s e w h i l e p a t r o n s u t i l i z e t h e i r o w n
s t a n d a r d b i c y c l e l o c k . T h i s e l i m i n a t e s t h e n e e d o f a s e p a r a t e k e y a n d l o c k m e c h a n i s m
w h i l e s t i l l p r o v i d i n g t h e s e c u r i t y o f c o v e r e d s t o r a g e , d i s c o u r a g i n g m i s u s e a n d
o p t i m i z i n g p r o p e r u s e . F u r t h e r m o r e , t h e u n i q u e d e s i g n h a s b e e n d e m o n s t r a t e d t o
i n c r e a s e a w a r e n e s s a n d c o n s i d e r a t i o n o f b i c y c l e u s e . T h e B i k e L i d p r o d u c t i s u t i l i z e d
a t t h e O c e a n s i d e t r a n s i t c e n t e r . T h e u n i t s a r e d u r a b l e , s i m p l e a n d a t t r a c t i v e . B i k e L i d
p r o v i d e s a 5 - y e a r w a r r a n t y o n m a t e r i a l a n d w o r k m a n s h i p . I n a d d i t i o n , t h e
C o m m i s s i o n s t a f f i s c o n s i d e r i n g a d d i t i o n a l b i c y c l e f a c i l i t i e s a t t h e t w o s t a t i o n s , h a v i n g
c o n s t r u c t e d a d e s i g n a t e d b i c y c l e a r e a a t t h e R i v e r s i d e D o w n t o w n s t a t i o n .
A g e n d a I t e m 8 G
5 0
Riverside Line
6,000
5,600
0 5,200
F` 4,800
c 4,400
ik 4,000
3,600
3,200
Passenger Trips
Riverside Line
�p� o� �� 01 J�0'� �01 00 1 �off 0A �0� �CIS 093
Ct V9 � )%° ) PJ y�Q 0a 45
4.06
Month
Daily passenger trips on Metrolink's Riverside line for the month of March averaged
5,150, an increase of 142, 3% more than the month of February. Compared to one
year prior, the line averaged an overall daily increase of 221 passenger trips. This is
nearly 4% more than a year ago.
On Time Performance (95% Goal)
Riverside Line
c T-
ro 85
so
m
a 75
70 r
4 4 0 o\ 0 01 01 6\ 4.k 1 � o0 00
A )J0 )o\ P0� coos Our �0 �0 )ass Qe� lac
Month
March on -time performance averaged 95% inbound (-1 % from February) and 96%
outbound (-2% from February). There were six delays greater than five minutes
during the month of March. The following are primary causes:
Signals/Track/MOW
Dispatching
Mechanical
Operations
Agenda Item 8G
51
"
"
"
I n l a n d E m p i r e - O r a n g e C o u n t y L i n e
5 , 0 0 0
4 , 8 0 0
m 4 , 6 0 0
a
F 4 , 4 0 0
c 4 , 2 0 0
4 , 0 0 0
3 , 8 0 0
3 , 6 0 0
P a s s e n g e r T r i p s
I n l a n d E m p i r e O r a n g e C o u n t y L i n e
M o n t h
D a i l y p a s s e n g e r t r i p s o n M e t r o l i n k ' s I E O C l i n e f o r t h e m o n t h o f M a r c h a v e r a g e d
4 , 9 8 4 , a n i n c r e a s e o f 1 6 3 t r i p s , 3 % m o r e t h a n t h e m o n t h o f F e b r u a r y . T h e l i n e h a s
i n c r e a s e d b y 1 3 6 d a i l y t r i p s o r 3 % f r o m a y e a r a g o M a r c h 2 0 0 7 .
P e r c e n t a g e
O n T i m e P e r f o r m a n c e ( 9 5 % G o a l )
I n l a n d E m p i r e O r a n g e C o u n t y L i n e
1 0 0
9 5
9 0
8 5
8 0
7 5
7 0
o �� x o ` e 0 \ A l 0 o ` o q ' o ` b
\ g ) J J a o t i � �� p a y
O p ��
M o n t h
M a r c h o n - t i m e p e r f o r m a n c e a v e r a g e d 9 8 % s o u t h b o u n d ( + 1 % f r o m F e b r u a r y ) a n d
9 5 % n o r t h b o u n d ( n o c h a n g e f r o m F e b r u a r y ) . T h e r e w e r e 2 0 d e l a y s g r e a t e r t h a n f i v e
m i n u t e s d u r i n g t h e m o n t h o f M a r c h . T h e f o l l o w i n g a r e p r i m a r y c a u s e s :
A g e n d a I t e m 8 G
S i g n a l s / T r a c k / M O W
D i s p a t c h i n g
M e c h a n i c a l
O p e r a t i o n s
5 2
91 Line
2,800
2,600
w 2,400
H 2,200
`0 2,000
ae 1,800
1,600
1,400
Passenger Trips
91 Line
PJ 5e4 oc, °�pecf0 )a0 Qo 40c
Month
Daily passenger trips on Metrolink's 91 line for the month of March averaged 2,400'
an increase of five trips, no significant change from the month of February. The line
has increased by 179 daily trips or 8% from a year ago March 2007.
On Time Performance (95% Goal)
91 Line
100
d 95
w 90
N 85
• 80
a 75
70
4 01 O\ 0\ Al 0� p1 4p1 �j1 00 p0 !zit' PQt �`�� �Jc �J� PJA gel Oo ;os peo �e� <ce, sec
Month
March on -time performance averaged 96% inbound (+2% from February) and 95%
outbound (-2% from February). There were two delays greater than five minutes
during the month of March. The following are primary causes:
Signals/Track/MOW
Dispatching
Mechanical
Operations
Agenda Item 8G
53
"
C o n n e c t i n g T r a n s i t S e r v i c e P e r f o r m a n c e
T h e C o m m i s s i o n ' s r o l e f a c i l i t a t i n g i n t e r c o n n e c t i v i t y b e t w e e n M e t r o l i n k a n d c o n n e c t i n g
t r a n s i t s e r v i c e s i s e s s e n t i a l t o o n g o i n g v i a b i l i t y o f t h e s y s t e m . S u c h s e r v i c e s a d d r e s s
t h e n e e d s o f t r a n s i t d e p e n d e n t r i d e r s a s w e l l a s h e l p m i t i g a t e c o n g e s t i o n a n d t h e
n e c e s s i t y f o r e x p e n s i v e p a r k i n g c a p a c i t y a t t h e C o m m i s s i o n s t a t i o n s . T h e
C o m m i s s i o n i s w o r k i n g t o i m p r o v e t h e e f f i c i e n c y a n d e f f e c t i v e n e s s o f t r a n s i t
c o n n e c t i o n s .
I n o r d e r t o m e e t t h e s e r e q u i r e m e n t s , t h e C o m m i s s i o n h a s w o r k e d w i t h M e t r o l i n k a n d
l o c a l t r a n s i t o p e r a t o r s t o o f f e r c o n n e c t i n g s e r v i c e s t o a n d f r o m R i v e r s i d e C o u n t y
M e t r o l i n k s t a t i o n s a t n o c o s t f o r t h o s e w i t h v a l i d M e t r o l i n k t i c k e t s . W i t h i n R i v e r s i d e
C o u n t y , s e r v i c e s i n c l u d e f r e e t r a n s f e r s t o r o u t e s o p e r a t e d b y R T A , R T A ' s C o m m u t e r
L i n k s e r v i c e a n d C o r o n a C r u i s e r . T h e f o l l o w i n g g r a p h s s h o w t o t a l m o n t h l y M e t r o l i n k
t r a n s f e r p a s s e n g e r t r i p s o n e a c h o f t h e t h r e e s e r v i c e s .
P a s s e n g e r T r i p s
R T A F i x e d R o u t e
3 , 0 0 0
H 2 , 5 0 0
a
1 2 , 0 0 0
w
0
* 1 , 5 0 0
1 , 0 0 0
��6 6 �� 0 ��o �� J o 1 ��o \ 0 1 0 �� ��0 1 6 ��o ��' o 9 3 . 0 0
Q Q �� ��y a ��J , s 3 ` . ��e Q O � �� O �� ) a
M o n t h
M o n t h l y M e t r o l i n k t r a n s f e r t r i p s o n R T A ' s c o n n e c t i n g f i x e d r o u t e s ( 1 , 3 , 1 5 , 1 6 , 2 1 ,
2 9 , a n d 3 8 ) t o t a l e d 2 , 3 4 1 f o r t h e m o n t h o f M a r c h , a d e c r e a s e o f 1 1 t r i p s , - 0 . 4 7 %
l e s s t h a n t h e m o n t h o f F e b r u a r y . M o n t h l y t r i p s i n c r e a s e d b y 6 1 o r 2 . 6 8 % � o v e r l a s t
y e a r .
A g e n d a I t e m 8 G
5 4
7,000
6,400
O.
5,800
F
c 5,200
4,600
4,000
0 :0 01 1
NV- PQ� Asa
Passenger Trips
RTA Commuter Link
�6\ O\ 01 �6\ O\ O\
Pp� �0 pc ��' O#
Month
6'
Monthly Metrolink transfer trips on RTA's Commuter Link routes (202, 204, 206,
208, and 210) totaled 6,261 for the month of March, an increase of 200 trips, or
3.30% from the month of February. Monthly trips have increased by 325 or 5.48%
over the last year.
Passenger Trips
Corona Cruiser
700
600
500
400
300
200
100
0� 6\ oS\ 6\ o� 6\ 01 0"\ 6\ 00 06 04'
far PQc �a� 'J� �J� P°� �0� cf' 434 Of �a� (eeo far
Month
Monthly Metrolink transfer trips on the Corona Cruiser totaled 536 for the month of
March, an increase of 126, 30.73% from the month of February. Monthly trips have
increased by 88 or +19.64% over the past fiscal year.
Attachments:
1) Metrolink Average Weekday Passenger Trips
2) Metrolink Schedule Adherence Summary - Weekday Service
Agenda Item 8G
55
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AGENDA ITEM 8H
"
"
"
R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N C O M M I S S I O N
D A T E :
M a y 1 4 , 2 0 0 8
T O :
R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n
F R O M :
P l a n s a n d P r o g r a m s C o m m i t t e e
B r i a n C h a m p i o n , P r o g r a m M a n a g e r
T H R O U G H :
A n n e M a y e r , E x e c u t i v e D i r e c t o r
S U B J E C T :
R i v e r s i d e T r a n s i t A g e n c y ' s F i s c a l Y e a r 2 0 0 7 / 0 8 S h o r t
T r a n s i t P l a n
R a n g e
P L A N S A N D P R O G R A M S C O M M I T T E E A N D S T A F F R E C O M M E N D A T I O N :
T h i s i t e m i s f o r t h e C o m m i s s i o n t o a p p r o v e A m e n d m e n t N o . 4 t o R i v e r s i d e T r a n s i t
A g e n c y ' s ( R T A ) F Y 2 0 0 7 / 0 8 S h o r t R a n g e T r a n s i t P l a n ( S R T P ) t o r e f l e c t a n
a d d i t i o n a l $ 1 3 5 , 0 0 0 i n C o m m u t e r R a i l L o c a l T r a n s p o r t a t i o n F u n d ( L T F ) f u n d s t o
p r o v i d e s h u t t l e s e r v i c e s t o t h e l e a s e d s a t e l l i t e p a r k i n g l o t d u r i n g c o n s t r u c t i o n o f t h e
N o r t h M a i n C o r o n a p a r k i n g s t r u c t u r e .
B A C K G R O U N D I N F O R M A T I O N :
I n J a n u a r y 2 0 0 8 , t h e C o m m i s s i o n b e g a n c o n s t r u c t i o n o f t h e N o r t h M a i n C o r o n a
M e t r o l i n k p a r k i n g s t r u c t u r e . W i t h t h e i m p l e m e n t a t i o n o f t h e p a r k i n g s t r a t e g y
p r o g r a m , t h e r e h a s b e e n a n i n c r e a s e i n t r a n s i t c o n n e c t i o n s t o t h e s t a t i o n s o n b o t h
R T A a n d C o r o n a C r u i s e r . A l s o , t h e a l t e r n a t i v e M e t r o l i n k s t a t i o n s a t W e s t C o r o n a
a n d L a S i e r r a h a v e s e e n a n i n c r e a s e i n r i d e r s h i p . T h e m a i n c o m p o n e n t o f t h e
s t r a t e g y i s t h e s a t e l l i t e p a r k i n g p r o g r a m a t 3 5 1 W . R i n c o n S t r e e t i n C o r o n a , w h i c h
h a s p r o v e n t o b e a s u c c e s s . S i n c e J a n u a r y , o v e r 2 0 0 v e h i c l e s d a i l y a r e u s i n g t h i s
s i t e t o p a r k f o r t h e N o r t h M a i n C o r o n a M e t r o l i n k s t a t i o n . T h e g r e a t e r f r e q u e n c i e s
o f t h e R T A s e r v i c e h e l p m o r n i n g c o m m u t e r s b y p r o v i d i n g q u i c k a n d r e l i a b l e
c o n n e c t i o n s i n o r d e r t o n o t m i s s t h e i r t r a i n s . T h e l a r g e r b u s e s a r e e s p e c i a l l y h e l p f u l
i n t h e a f t e r n o o n s w h e n t h e t r a i n s a r r i v e a n d t h e r e i s t h e n e e d t o m o v e m a n y
p a s s e n g e r s q u i c k l y . P a s s e n g e r s a r e e x t r e m e l y h a p p y w i t h t h e l e v e l o f s h u t t l e
s e r v i c e , a n d t h e r e h a v e b e e n n o c o m p l a i n t s r e c e i v e d f o r t h e s h u t t l e s o r t h e s a t e l l i t e
p a r k i n g l o t .
A t i t s A p r i l 9 , 2 0 0 8 m e e t i n g , t h e C o m m i s s i o n a p p r o v e d A g r e e m e n t N o .
0 8 - 2 5 - 0 9 5 - 0 0 w i t h R T A t o p r o v i d e s h u t t l e s e r v i c e s t o t h e N o r t h M a i n C o r o n a
s t a t i o n , h o w e v e r t h e r e q u i r e d a m e n d m e n t t o t h e S R T P w a s i n a d v e r t e n t l y o m i t t e d
f r o m t h e i t e m .
A g e n d a I t e m 8 H
5 8
The cost related to RTA's shuttle services for the six-month period in FY 2007/08
totals $135,000 and will be paid from Commuter Rail operating LTF funds. The
costs for shuttle services next year will be included in the Commission's
FY 2008/09 budget and RTA's FY 2008/09 SRTP (both service levels and required
funding).
Agenda Item 8H
•
•
59
r
1
AGENDA ITEM 81
rr
"
R I V E R S / D E C O U N T Y T R A N S P O R T A T I O N C O M M I S S I O N
D A T E :
M a y 1 4 , 2 0 0 8
T O :
R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n
F R O M :
P l a n s a n d P r o g r a m s C o m m i t t e e
F i n a C l e m e n t e , S t a f f A n a l y s t
S t e p h a n i e W i g g i n s , R e g i o n a l P r o g r a m s D i r e c t o r
T H R O U G H :
A n n e M a y e r , E x e c u t i v e D i r e c t o r
S U B J E C T :
W e s t e r n R i v e r s i d e M e a s u r e A S p e c i a l i z e d T r a n s i t P r o g r a m
A l l o c a t i o n t o t h e I n d e p e n d e n t L i v i n g P a r t n e r s h i p
F u n d s
P L A N S A N D P R O G R A M S C O M M I T T E E A N D S T A F F R E C O M M E N D A T I O N ;
T h i s i t e m i s f o r t h e C o m m i s s i o n t o :
1 ) A l l o c a t e $ 3 2 , 0 0 0 i n W e s t e r n R i v e r s i d e M e a s u r e A S p e c i a l i z e d T r a n s i t f u n d s
t o I n d e p e n d e n t L i v i n g P a r t n e r s h i p t o a c c o m m o d a t e a d d i t i o n a l p r o g r a m
p a r t i c i p a t i o n ; a n d
2 ) A p p r o v e a b u d g e t a d j u s t m e n t f o r a $ 3 2 , 0 0 0 i n c r e a s e t o M e a s u r e A
S p e c i a l i z e d T r a n s i t e x p e n d i t u r e s i n F Y 2 0 0 7 / 0 8 .
B A C K G R O U N D I N F O R M A T I O N :
A s p a r t o f t h e C o m m i s s i o n ' s b i e n n i a l c a l l f o r p r o j e c t s f o r t h e W e s t e r n R i v e r s i d e
M e a s u r e A S p e c i a l i z e d T r a n s i t p r o g r a m , t h e I n d e p e n d e n t L i v i n g P a r t n e r s h i p w a s
a l l o c a t e d $ 4 1 6 , 5 9 8 i n F Y 2 0 0 7 / 0 8 f o r i t s T r i p R e i m b u r s e m e n t a n d I n f o r m a t i o n
P r o j e c t ( T R I P ) , w h i c h p r o v i d e s e s c o r t e d t r a v e l f o r e l i g i b l e p r o g r a m p a r t i c i p a n t s b y
v o l u n t e e r d r i v e r s . T h e p r o g r a m p r o v i d e s d i s a b l e d a n d f r a i l s e n i o r c i t i z e n s w i t h
t r a n s p o r t a t i o n t o m e d i c a l a p p o i n t m e n t s a n d o t h e r n e e d e d s o c i a l s e r v i c e
d e s t i n a t i o n s . V o l u n t e e r d r i v e r s a r e r e i m b u r s e d a t $ 0 . 3 2 p e r m i l e f o r a s s i s t e d t r a v e l .
T h e I n d e p e n d e n t L i v i n g P a r t n e r s h i p a l s o p r o v i d e s i n f o r m a t i o n r e l a t i n g t o o t h e r
a v a i l a b l e m e a n s o f t r a n s p o r t a t i o n a n d d i s c o u n t e d o r f r e e b u s t i c k e t s f o r u s e o n
p u b l i c t r a n s i t f o r i t s c l i e n t s .
A n n u a l l y , v o l u n t e e r s p r o v i d e a p p r o x i m a t e l y 5 0 0 c l i e n t s w i t h o v e r 6 0 , 0 0 0
( o n e - w a y ) t r i p s . T h r o u g h t h e e n d o f F e b r u a r y 2 0 0 8 , 1 3 6 n e w T R I P a p p l i c a n t s h a v e
b e e n a p p r o v e d f o r p r o g r a m p a r t i c i p a t i o n r e s u l t i n g i n m i l e a g e r e i m b u r s e m e n t s
p r o j e c t e d t o e x c e e d a v a i l a b l e f u n d i n g . A s a r e s u l t , T R I P i s r e q u e s t i n g a n a d d i t i o n a l
a l l o c a t i o n o f $ 3 0 , 0 0 0 t o c o v e r i n c r e a s e d p r o g r a m p a r t i c i p a t i o n . T h e p r o g r a m i s
a l s o r e q u e s t i n g $ 2 , 0 0 0 a s m a t c h i n g f u n d s t o a c q u i r e a n u p d a t e d v e r s i o n o f
A g e n d a I t e m 8 1
6 0
TripTrak software, the database program currently used to manage and monitor
TRIP program operations and performance records.
If approved, the additional funding will cover the cost of mileage reimbursement
payments for Measure A participants through the end of June 2008 as well as the
agency's software upgrade. There are adequate Measure A Specialized Transit
funds available to cover the additional costs.
Financial Information
In Fiscal Year Budget:
No
Year:
FY 2007/08
Amount:
032,000
Source of Funds:
Western Riverside Measure A
Budget Adjustment:
Yes
GLA No.:
225 26 86101
Fiscal Procedures Approved:
\ 19
Date:
04/18/2008
Agenda Item 81
61
AGENDA ITEM 8J
"
R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N C O M M I S S I O N
D A T E :
M a y 1 4 , 2 0 0 8
T O :
R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n
F R O M :
B u d g e t a n d I m p l e m e n t a t i o n C o m m i t t e e
M i n S a y s a y , R i g h t - o f - W a y M a n a g e r
T H R O U G H :
A n n e M a y e r , E x e c u t i v e D i r e c t o r
S U B J E C T :
A g r e e m e n t s w i t h E p i c L a n d S o l u t i o n s , I n c . , R e a l E s t a t e C o n s u l t i n g
& S e r v i c e s , I n c . , , a n d O v e r l a n d P a c i f i c & C u t l e r , I n c . t o P r o v i d e
O n - C a l l P r o p e r t y M a n a g e m e n t S e r v i c e s
B U D G E T A N D I M P L E M E N T A T I O N C O M M I T T E E A N D S T A F F R E C O M M E N D A T I O N :
T h i s i t e m i s f o r t h e C o m m i s s i o n t o :
1 ) A p p r o v e A g r e e m e n t N o . 0 7 - 3 3 - 1 5 1 - 0 1 , A m e n d m e n t N o . 1 t o A g r e e m e n t
N o . 0 7 - 3 3 - 1 5 1 - 0 0 , w i t h E p i c L a n d S o l u t i o n s , I n c . ;
2 ) A p p r o v e A g r e e m e n t N o . 0 7 - 3 3 - 1 5 3 - 0 5 , A m e n d m e n t N o . 2 t o A g r e e m e n t
N o . 0 7 - 3 3 - 1 5 3 - 0 0 , w i t h R e a l E s t a t e C o n s u l t i n g & S e r v i c e s , I n c ;
" 3 ) A p p r o v e A g r e e m e n t N o . 0 7 - 3 3 - 1 5 2 - 0 1 , A m e n d m e n t N o . 1 t o A g r e e m e n t
N o . 0 7 - 3 3 - 1 5 2 - 0 0 , w i t h O v e r l a n d P a c i f i c & C u t l e r , I n c . , t o p r o v i d e
o n - c a l l r i g h t - o f - w a y p r o p e r t y m a n a g e m e n t s e r v i c e s i n t h e a m o u n t o f
$ 7 5 0 , 0 0 0 e a c h , p l u s a p o o l c o n t i n g e n c y o f $ 1 m i l l i o n , f o r a t o t a l s e r v i c e s
a m o u n t o f $ 3 . 8 7 m i l l i o n ; a n d
4 ) A u t h o r i z e t h e C h a i r , p u r s u a n t t o l e g a l c o u n s e l r e v i e w , t o e x e c u t e t h e
a g r e e m e n t s o n b e h a l f o f t h e C o m m i s s i o n .
B A C K G R O U N D I N F O R M A T I O N :
A t i t s J u n e 1 3 , 2 0 0 7 m e e t i n g , t h e C o m m i s s i o n a p p r o v e d A g r e e m e n t
N o . 0 7 - 3 3 - 1 5 1 - 0 0 t o E p i c L a n d S o l u t i o n s , I n c . ; A g r e e m e n t N o . 0 7 - 3 3 - 1 5 3 - 0 0 t o
R e a l E s t a t e C o n s u l t i n g & S e r v i c e s , I n c . ; a n d A g r e e m e n t N o . 0 7 - 3 3 - 1 5 2 - 0 0 t o
O v e r l a n d P a c i f i c & C u t l e r , I n c . f o r o n - c a l l r i g h t - o f - w a y p r o p e r t y m a n a g e m e n t
s e r v i c e s i n t h e a m o u n t o f $ 1 4 0 , 0 0 0 e a c h .
A t t h e t i m e o f a p p r o v a l , i t w a s n o t p o s s i b l e t o a c c u r a t e l y i d e n t i f y p r o j e c t s a n d
s p e c i f i c p r o p e r t i e s t h a t w o u l d r e q u i r e d e m o l i t i o n , t e s t i n g f o r a n d r e m o v a l o f
h a z a r d o u s m a t e r i a l s , f e n c i n g , s e c u r i t y , a n d o t h e r s i m i l a r s i t e - c l e a r i n g r e l a t e d
s e r v i c e s . D u r i n g t h e l a s t f e w m o n t h s , m o r e d e t a i l e d p r e l i m i n a r y e n g i n e e r i n g w o r k
h a s b e e n c o m p l e t e d w h i c h i d e n t i f i e d m o r e s p e c i f i c a l l y t h e p r o p e r t i e s t h a t
w o u l d b e n e e d e d f o r t h e P e r r i s V a l l e y L i n e , t h e P e r r i s M u l t i m o d a l F a c i l i t y , t h e
A g e n d a I t e m 8 J
6 2
State Route 91/Adams Street to 60/91/215 interchange high occupancy vehicle
(HOV) lanes, and the SR-60/East Junction to 1-215 HOV lanes.
The total cost to test, abate, demolish, and secure the improvements located on
these properties is estimated to require more funding than the unencumbered
amounts remaining in the various contracts. Staff projects that an additional
$2.25 million plus a pool contingency of $1 million or a total services amount of
$3.25 million will be required to cover the anticipated work. A budget adjustment
of $250,000 for the current fiscal year is requested. Staff recommends approval
of amendments to the contracts concerned, which will increase compensation by
$750,000 for each of the three consultants. With these amendments, the total
services amount will be $3.87 million.
Financial Information
No
FY 2007/08
$ 250,000
In Fiscal Year Budget:
Yes
Year:
FY 2008/09
Amount:
$1,825,000
N/A
FY 2009/10
$1,175,000
Source of Funds:
Measure A and State funds
Budget Ad ustment:
Yes*
221 33 81403 P3800 $ 975,000
GLA No.:
105 51 81403 $ 250,000*
222 31 81403 P3005 $1,537,500
222 31 81403 P3017 $ 487,500
Fiscal Procedures Approved:
\�biAi;oi
Date:
04/18/2008.
Agenda Item 8J
63
AGENDA ITEM 8K
J
"
"
"
R I V E R S / D E C O U N T Y T R A N S P O R T A T I O N C O M M I S S I O N
D A T E :
M a y 1 4 , 2 0 0 8
T O :
R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n
F R O M :
B u d g e t a n d I m p l e m e n t a t i o n C o m m i t t e e
M i n S a y s a y , R i g h t - o f - W a y M a n a g e r
T H R O U G H :
A n n e M a y e r , E x e c u t i v e D i r e c t o r
S U B J E C T :
A g r e e m e n t s w i t h B r y a n A . S t i r r a t & A s s o c i a t e s , L e i g h t o n
C o n s u l t i n g , I n c . , N i n y o & M o o r e G e o t e c h n i c a l , B u r e a u V e r i t a s N A ,
I n c . , a n d T e t r a T e c h f o r O n - C a l l R i g h t - o f - W a y P h a s e I a n d P h a s e I I
E n v i r o n m e n t a l S o i l A s s e s s m e n t S e r v i c e s
B U D G E T A N D I M P L E M E N T A T I O N C O M M I T T E E A N D S T A F F R E C O M M E N D A T I O N :
T h i s i t e m i s f o r t h e C o m m i s s i o n t o :
1 ) A p p r o v e A g r e e m e n t N o . 0 7 - 3 1 - 1 4 6 - 0 3 , A m e n d m e n t N o . 1 t o A g r e e m e n t
N o . 0 7 - 3 1 - 1 4 6 - 0 0 , w i t h B r y a n A . S t i r r a t & A s s o c i a t e s ;
2 ) A p p r o v e A g r e e m e n t N o . 0 7 - 3 1 - 1 4 7 - 0 6 , A m e n d m e n t N o . 2 t o A g r e e m e n t
N o . 0 7 - 3 1 - 1 4 7 - 0 0 , w i t h L e i g h t o n C o n s u l t i n g , I n c . ;
3 ) A p p r o v e A g r e e m e n t N o . 0 7 - 3 1 - 1 4 8 - 0 1 , A m e n d m e n t N o . 1 t o A g r e e m e n t
N o . 0 7 - 3 1 - 1 4 8 - 0 0 , w i t h N i n y o & M o o r e G e o t e c h n i c a l ;
4 ) A p p r o v e A g r e e m e n t N o . 0 7 - 3 1 - 1 4 9 - 0 2 , A m e n d m e n t N o . 1 t o A g r e e m e n t
N o . 0 7 - 3 1 - 1 4 9 - 0 0 , w i t h B u r e a u V e r i t a s N A , I n c . ;
5 ) A p p r o v e A g r e e m e n t N o . 0 7 - 3 1 - 1 5 0 - 0 2 , A m e n d m e n t N o . 1 t o A g r e e m e n t
N o . 0 7 - 3 1 - 1 5 0 - 0 0 , w i t h T e t r a T e c h t o p e r f o r m o n - c a l l r i g h t - o f - w a y p h a s e I
a n d p h a s e I I e n v i r o n m e n t a l a s s e s s m e n t s e r v i c e s i n t h e a m o u n t o f
$ 3 5 0 , 0 0 0 e a c h , p l u s a p o o l c o n t i n g e n c y o f $ 1 m i l l i o n , f o r a t o t a l s e r v i c e s
a m o u n t o f $ 3 . 1 3 8 m i l l i o n ; a n d
6 ) A u t h o r i z e t h e C h a i r , p u r s u a n t t o l e g a l c o u n s e l r e v i e w , t o e x e c u t e t h e
a g r e e m e n t s o n b e h a l f o f t h e C o m m i s s i o n .
B A C K G R O U N D I N F O R M A T I O N :
A t i t s J u n e 1 3 , 2 0 0 7 m e e t i n g , t h e C o m m i s s i o n a p p r o v e d A g r e e m e n t N o .
0 7 - 3 1 - 1 4 6 - 0 0 t o B r y a n A . S t i r r a t & A s s o c i a t e s ; A g r e e m e n t N o . 0 7 - 3 1 - 1 4 7 - 0 0 t o
L e i g h t o n C o n s u l t i n g , I n c . ; A g r e e m e n t N o . 0 7 - 3 1 - 1 4 8 - 0 0 t o N i n y o & M o o r e
G e o t e c h n i c a l ; A g r e e m e n t N o . 0 7 - 3 1 - 1 4 9 - 0 0 t o B u r e a u V e r i t a s N A , I n c . ; a n d
A g r e e m e n t N o . 0 7 - 3 1 - 1 5 0 - 0 0 t o T e t r a T e c h t o p e r f o r m o n - c a l l r i g h t - o f - w a y p h a s e
a n d p h a s e I I e n v i r o n m e n t a l a s s e s s m e n t s e r v i c e s i n t h e a m o u n t o f $ 7 5 , 6 0 0 e a c h .
A g e n d a I t e m 8 K
6 4
At the time of approval, it was not possible to accurately identify projects and
specific properties that would require phase 1 and phase II ,environmental soil
assessment services. During the last few months, more detailed preliminary
engineering work has been completed which identified more specifically the
properties that would be needed for the proposed SR-79 realignment, the Perris
Valley Line, the Perris Multimodal Facility, the SR-91 /Adams Street to 60/91 /215
interchange high occupancy vehicle (HOV) lanes, SR-74/G Street to 1-215
widening, and the SR-60 /East Junction to 1-215 HOV lanes.
The total cost of phase I and phase II environmental soil assessment services for
the properties required for the projects is estimated to require more funding than
the unencumbered amounts remaining in the various contracts. Staff projects that
an additional $1.75 million plus a pool contingency of $1 million or a total services
amount of $2.75 million will be required to cover the anticipated work. Staff
recommends approval of amendments to the contracts concerned, which will
increase compensation by $350,000 for each of the five consultants. With these
amendments, the total services amount will be $3.138 million.
Financial Information
In Fiscal Year Budget:
Yes
Yes
N/A
Year:
FY 2007/08
FY 2008/09
FY 2009/10
Amount:
$ 275,000
$1,375,000
$1,100,000
Source of Funds:
Measure A, State, and TUMF funds
Budget Ad ustment:
No
GLA No.:
210 72 81403 P5127 $ 137,500
221 33 81403 P3800 $ 770,000
221 33 81403 P3816 $ 192,500
222 31 81403 P3005 $1,237,500
222 31 81403 P3015 $ 220,000
222 31 81403 P3017 $ 192,500
Fiscal Procedures Approved:
\14,4,4,0040,
Date:
04/18/2008
Agenda Item 8K
65
AGENDA ITEM 8L
I
!I
9
.1
U
i
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
DATE:
May 14, 2008
TO:
Riverside County Transportation Commission
FROM:
Budget and Implementation Committee
Min Saysay, Right -of -Way Manager
THROUGH:
Anne Mayer, Executive Director
SUBJECT:
Agreement with Volt Edge Services to Provide Minor General,
Electrical, Maintenance, and Repair Services for the Commission -
owned Metrolink Stations
BUDGET AND IMPLEMENTATION COMMITTEE AND STAFF RECOMMENDATION:
This item is for the Commission to:
1) Approve Agreement No. 08-24-087-00 with Volt Edge Services to provide
minor general, electrical maintenance, and repair services for the five
Commission -owned Metrolink stations in the amount of $150,000; and
2) Authorize the Chair, pursuant to legal counsel review, to execute the
agreement son behalf of the Commission.
BACKGROUND INFORMATION:
After having been involved with the construction of all of the Metrolink stations in
Riverside County over 14 years ago, Volt Edge was contracted by the Commission
to provide various minor general, electrical, and mechanical repair services on an
as -needed basis at those same stations. In addition, Volt Edge has provided
installation, repair, and maintenance services for Metrolink/Southern California
Regional Rail Authority (SCRRA).
As a result of its involvement in construction and the years of experience doing
maintenance and repairs on the Metrolink stations, Volt Edge has gained a
specialized and detailed knowledge of the electrical fixtures, hidden wiring and
plumbing, and potential problem areas. This has benefited the Commission in
terms of greater time and cost efficiencies in resolving electrical, plumbing, and
equipment failures, enhancing staff's ability to respond effectively to emergencies.
The existing contract with Volt Edge will soon expire. Given the specialized
knowledge of this firm, staff therefore recommends that an agreement be executed
with Volt Edge Services for a period of three years, at $50,000 per year, with a
not to exceed amount of $150,000.
Agenda Item 8L
66
Financial Information
Yes
FY 2007/08
$ 8,300
In Fiscal Year Budget:
Yes
Year:
FY 2008/09
Amount:
$50,000
N/A
FY 2009/10
$50,000
N/A
FY 2010/11
$41,700
Source of Funds:
Measure A
Budget Ad ustment:
No
103 24 73315 P4001
$60,000
103 24 73315 P4002
$ 7,500
GLA No.:
103 24 73315 P4003
$30,000
103 24 73315 P4004
$22,500
103 24 73315 P4006
$30,000
Fiscal Procedures Approved:\14,444,,avivrtDate:
04/18/2008
Agenda Item 8L
67
AGENDA ITEM 8M
T
II
*
i
"
"
R I V E R S / D E C O U N T Y T R A N S P O R T A T I O N C O M M / S S / O N
D A T E :
M a y 1 4 , 2 0 0 8
T O :
R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n
F R O M :
B u d g e t a n d I m p l e m e n t a t i o n C o m m i t t e e
A a r o n H a k e , G o v e r n m e n t R e l a t i o n s M a n a g e r
T H R O U G H :
A n n e M a y e r , E x e c u t i v e D i r e c t o r
S U B J E C T :
S t a t e a n d F e d e r a l L e g i s l a t i v e U p d a t e
B U D G E T A N D I M P L E M E N T A T I O N C O M M I T T E E A N D S T A F F R E C O M M E N D A T I O N :
T h i s i t e m i s f o r t h e C o m m i s s i o n t o :
1 ) R e c e i v e a n d f i l e a n u p d a t e o n s t a t e a n d f e d e r a l l e g i s l a t i o n ; a n d
2 ) A p p r o v e p o s i t i o n s o n t h e f o l l o w i n g s t a t e b i l l s a n d p r o p o s i t i o n :
a ) A B 3 0 2 1 ( N a v a ) - S u p p o r t ;
b ) A B 1 8 5 4 ( D u v a l l ) - W o r k w i t h a u t h o r ;
c ) P r o p o s i t i o n 9 8 - O p p o s e .
B A C K G R O U N D I N F O R M A T I O N :
C o m m i s s i o n L e g i s l a t i o n M o v e s F o r w a r d
B o t h o f t h e C o m m i s s i o n ' s s p o n s o r e d b i l l s i n S a c r a m e n t o h a v e b e e n a p p r o v e d b y
t h e i r f i r s t p o l i c y c o m m i t t e e s . A B 1 9 5 4 ( J e f f r i e s ) , t o a u t h o r i z e t h e C o m m i s s i o n t o
i m p l e m e n t h i g h o c c u p a n c y t o l l ( H O T ) l a n e s o n I n t e r s t a t e 1 5 , c l e a r e d t h e A s s e m b l y
T r a n s p o r t a t i o n C o m m i t t e e u n a n i m o u s l y . E x e c u t i v e D i r e c t o r A n n e M a y e r t e s t i f i e d
o n b e h a l f o f t h e b i l l . A B 1 9 5 4 w i l l n o w m o v e t o t h e A s s e m b l y A p p r o p r i a t i o n s
C o m m i t t e e , w h e r e t h e b i l l w i l l b e a s s e s s e d f o r i t s c o s t t o t h e s t a t e . S B 1 3 1 6
( C o r r e a ) , w h i c h w i l l a l l o w t h e C o m m i s s i o n t o i m p l e m e n t a n e x t e n s i o n o f t h e S t a t e
R o u t e 9 1 e x p r e s s l a n e s , w a s a p p r o v e d b y t h e S e n a t e T r a n s p o r t a t i o n a n d H o u s i n g
C o m m i t t e e b y a n 8 - 2 v o t e . C o m m i s s i o n e r M a r y C r a t o n t r a v e l e d t o S a c r a m e n t o t o
m e e t w i t h t h e c o m m i t t e e ' s c h a i r m a n , S e n a t o r A l a n L o w e n t h a l I D - L o n g B e a c h ) , a n d
t e s t i f y i n s u p p o r t o f t h e b i l l a l o n g s i d e r e p r e s e n t a t i v e s f r o m O r a n g e C o u n t y
T r a n s p o r t a t i o n A u t h o r i t y ( O C T A ) . T h a t b i l l w i l l n o w g o t o t h e S e n a t e
A p p r o p r i a t i o n s C o m m i t t e e t o a s s e s s i t s c o s t t o t h e s t a t e .
T h e s e i n i t i a l s t e p s a r e e n c o u r a g i n g s i g n s , a l t h o u g h b o t h b i l l s h a v e a l o n g v e t t i n g
p r o c e s s b y t h e L e g i s l a t u r e s t i l l a h e a d . A s s e m b l y m e m b e r K e v i n J e f f r i e s a n d S e n a t o r
L o u C o r r e a a r e b o t h o w e d c r e d i t f o r t h e i r l e a d e r s h i p i n c a r r y i n g t h i s i m p o r t a n t
l e g i s l a t i o n .
A g e n d a I t e m 8 M
6 8
AB 3021 (Nava), Recommended Position: Support
This bill would create the California Transportation Financing Authority (CTFA) for
increased construction of new capacity for the state highway system through the
issuance of revenue bonds. The objective of CTFA is to increase the construction
of new capacity for the state highway system through the issuance of, or the
approval of the issuance of, revenue bonds secured by Local Transportation Funds
(LTF), fuel taxes, fuel sales taxes, local transportation sales taxes, developer fees,
tolls, and other state revenues approved for this purposes by the Legislature or by
initiative. The CTFA would be chaired by the state treasurer, and also include the
director of finance, state controller, Ca!trans director, California Transportation
Commission (CTC) executive director, and two local agency representatives
appointed by the Legislature.
The bill provides an entity through which agencies such as the Commission could
apply to the state for authority to perform innovative financing on projects such as
SR-91 and 1-15 for which the Commission is already pursuing authority by statute.
The bill moves the state closer to developing a coherent policy on issues of tolling
and alternative project financing. Staff recommends a support position on the bill,
based on the Commission's experience of pursuing authority to finance important
capacity -enhancing projects absent an existing comprehensive legal framework.
AB 1854 (Duvall), Recommended Position: Work with Author
This bill would delete the California Public Utilities Commission's Section 190 grade
separation funding program. The program provides $15 million annually to grade
separation projects according to a prioritized statewide list. The program was the
subject of a Bureau of State Audits report last year at the request of local
Assemblymember John Benoit (R-Bermuda Dunes). The audit recommended that
the Legislature follow one of two paths: fund the program at a higher level or
eliminate it all together and reconsider the state's role in funding grade separations.
Previous attempts to fund the program at a higher level have failed, and considering
the state's fiscal problems, it is unlikely that the program will receive more money
anytime soon. Assemblymember Benoit has passed legislation that helps clean-up
some of the arcane parts of the program, and Assemblymember Cathleen Galgiani
(D-Merced) is currently authoring a bill, which the Commission is seeking to amend
that would further reform the structure of the program. Assemblymember Michael
Duvall's bill would take the state auditor's latter recommendation and do away
with the program. Grade separations would then become eligible to compete in the
State Transportation Improvement Program (STIP) and the $15 million that would
otherwise be spent on grade separations would be added to the STIP program.
This bill has cleared its first policy committee; however it is expected to be further
amended upon stakeholder input. Mr. Duvall's office has expressed an openness to
Agenda Item 8M
69
"
d i s c u s s c h a n g e s t o t h e b i l l . C o m m i s s i o n s t a f f r e c o m m e n d s t h a t t h e C o m m i s s i o n
a d o p t a " w o r k w i t h a u t h o r " p o s i t i o n o n t h i s b i l l . T h e i m p a c t o f m o v i n g g r a d e
s e p a r a t i o n s t o t h e S T I P p r o g r a m r e q u i r e s f u r t h e r e v a l u a t i o n . C h a n g e s t o g r a d e
s e p a r a t i o n f u n d i n g s h o u l d e n h a n c e t h e s t a t e ' s r o l e i n f u n d i n g g r a d e s e p a r a t i o n s .
P r o p o s i t i o n 9 8 , R e c o m m e n d e d P o s i t i o n : O p p o s e
T h e J u n e C a l i f o r n i a P r i m a r y b a l l o t w i l l i n c l u d e t w o i n i t i a t i v e s r e l a t i n g t o e m i n e n t
d o m a i n : P r o p o s i t i o n s 9 8 a n d 9 9 . C o n s i s t e n t w i t h t h e C o m m i s s i o n ' s p o s i t i o n o n
t h e m o s t r e c e n t e m i n e n t d o m a i n i n i t i a t i v e t o q u a l i f y f o r t h e b a l l o t i n 2 0 0 6 ,
P r o p o s i t i o n 9 0 , s t a f f i s r e c o m m e n d i n g a n o p p o s e p o s i t i o n f o r P r o p o s i t i o n 9 8 . I n
m a n y w a y s , P r o p 9 8 i s s i m i l a r t o P r o p 9 0 , a n d i s a n a t t e m p t b y P r o p 9 0
p r o p o n e n t s t o a g a i n a c h i e v e " r e f o r m " o f e m i n e n t d o m a i n i n C a l i f o r n i a i n t h e w a k e
o f t h e K e l o v s . N e w L o n d o n , C T S u p r e m e C o u r t d e c i s i o n . P r o p 9 8 h a s b e e n
o p p o s e d b y t h e L e a g u e o f C a l i f o r n i a C i t i e s , t h e C a l i f o r n i a T r a n s p o r t a t i o n
C o m m i s s i o n , a n d o t h e r t r a n s p o r t a t i o n a g e n c i e s i n C a l i f o r n i a .
T h e b a s i s f o r t h e r e c o m m e n d e d o p p o s e p o s i t i o n i s t h e v a s t p o t e n t i a l f o r i n c r e a s e d
t r a n s p o r t a t i o n p r o j e c t c o s t s a n d d e l a y s t o p r o j e c t d e l i v e r y . P r o p 9 8 i n s t i t u t e s n e w
r e q u i r e m e n t s a n d p r o c e s s e s m a n d a t e d w i t h r e g a r d t o p r o p e r t y a c q u i s i t i o n b y
a g e n c i e s s u c h a s t h e C o m m i s s i o n o r C a ! t r a n s . T h e i n i t i a t i v e w o u l d r e q u i r e
t r a n s p o r t a t i o n a g e n c i e s t o c o m p e n s a t e p r o p e r t y o w n e r s f o r a t t o r n e y ' s f e e s a n d
l i t i g a t i o n e x p e n s e s i f t h e c o u r t a w a r d s m o r e f o r a p r o p e r t y t h a n t h e a g e n c y w a s
o f f e r i n g , e v e n i f a g e n c i e s a c t s i n g o o d f a i t h w i t h a r e a s o n a b l e s e t t l e m e n t o f f e r .
C u r r e n t l y p r o p e r t y o w n e r s a r e r e s p o n s i b l e f o r t h e i r o w n e x p e n s e s i n t h i s r e g a r d .
" J u s t c o m p e n s a t i o n " i s a l s o e x p a n d e d t o i n c l u d e t e m p o r a r y b u s i n e s s l o s s e s ,
r e l o c a t i o n e x p e n s e s , b u s i n e s s r e e s t a b l i s h m e n t c o s t s , a n d " o t h e r a c t u a l a n d
r e a s o n a b l e e x p e n s e s i n c u r r e d . " T h i s d e f i n i t i o n i s n o t w e l l - d e f i n e d a n d r a t h e r o p e n -
e n d e d , e x p o s i n g t h e C o m m i s s i o n t o a n u n k n o w n m a g n i t u d e o f c o s t i m p a c t s o n
t r a n s p o r t a t i o n p r o j e c t s . A l s o , a s P r o p 9 0 d i d , t h e r e i s a n i n c r e a s e d e x p o s u r e t o
l i t i g a t i o n o v e r t h e i n t e n t o f t h e v a g u e a n d o p e n - e n d e d l a n g u a g e o f P r o p 9 8 . T h i s i s
l i k e l y t o r e s u l t i n i n c r e a s e d p r o j e c t d e l a y s a n d i n c r e a s e d c o s t s . T h e i n i t i a t i v e a l s o
c r e a t e s i m p e d i m e n t s t o t r a n s p o r t a t i o n a g e n c i e s i m p l e m e n t i n g " p u b l i c - p r i v a t e
p a r t n e r s h i p s " b e c a u s e o f t h e p r o p o s i t i o n ' s r e s t r i c t i o n s o n a c q u i r i n g l a n d f o r p r i v a t e
p u r p o s e s .
F e d e r a l U p d a t e
T r a n s p o r t a t i o n h a s f i n a l l y b e c o m e a t o p i c i n t h e r a c e f o r W h i t e H o u s e . S e n a t o r
J o h n M c C a i n ( R - A r i z o n a ) , t h e p r e s u m e d R e p u b l i c a n n o m i n e e f o r P r e s i d e n t , h a s
p r o p o s e d t o s u s p e n d t h e f e d e r a l g a s t a x f o r t h r e e m o n t h s t h i s s u m m e r i n o r d e r t o
p r o v i d e a n e c o n o m i c s t i m u l u s . S e n a t o r M c C a i n b r o u g h t t h i s m a t t e r b e f o r e t h e U . S .
S e n a t e i n t h e f o r m o f a n a m e n d m e n t t o t h e S a f e , A c c o u n t a b l e , F l e x i b l e , E f f i c i e n t
A g e n d a I t e m 8 M
7 0
Transportation Equity Act: A Legacy for Users (SAFETEA-LU) Technical Corrections
bill, which was being debated on the Senate floor. The outcome of Senator
McCain's amendment was not yet resolved at the time this agenda .item was
written. Commission staff and lobbyists will keep up-to-date on the issue as it
develops.
Agenda Item 8M
•
71
AGENDA ITEM 9
"
R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N C O M M I S S I O N
D A T E :
M a y 1 4 , 2 0 0 8
T O :
R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n
F R O M :
T h e r e s i a T r e v i n o , C h i e f F i n a n c i a l O f f i c e r
T H R O U G H :
A n n e M a y e r , E x e c u t i v e D i r e c t o r
S U B J E C T :
A u t h o r i z a t i o n f o r I s s u a n c e o f S a l e s T a x R e v e n u e B o n d s
S T A F F R E C O M M E N D A T I O N :
T h i s i t e m i s f o r t h e C o m m i s s i o n t o :
1 ) R e c e i v e a n d f i l e t h e o v e r v i e w p r e s e n t a t i o n r e g a r d i n g t h e i s s u a n c e o f t h e
2 0 0 8 S e r i e s A S a l e s T a x R e v e n u e B o n d s ;
2 ) A d o p t R e s o l u t i o n N o . 0 8 - 0 1 0 , " R e s o l u t i o n A u t h o r i z i n g t h e I s s u a n c e a n d S a l e
o f N o t t o E x c e e d $ 1 3 0 , 0 0 0 , 0 0 0 A g g r e g a t e P r i n c i p a l A m o u n t o f R i v e r s i d e
C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n S a l e s T a x R e v e n u e B o n d s ( L i m i t e d T a x
B o n d s ) , S e r i e s 2 0 0 8 , t h e E x e c u t i o n a n d D e l i v e r y o f a n I n d e n t u r e ,
S u p p l e m e n t a l I n d e n t u r e , P u r c h a s e C o n t r a c t , O f f i c i a l S t a t e m e n t a n d
C o n t i n u i n g D i s c l o s u r e A g r e e m e n t a n d t h e T a k i n g o f A l l O t h e r A c t i o n s
N e c e s s a r y i n C o n n e c t i o n T h e r e w i t h ' ;
3 ) A p p r o v e t h e d r a f t P r e l i m i n a r y O f f i c i a l S t a t e m e n t f o r t h e i s s u a n c e o f
$ 1 3 0 , 0 0 0 , 0 0 0 i n 2 0 0 8 S e r i e s A S a l e s T a x R e v e n u e B o n d s a n d a u t h o r i z e t h e
E x e c u t i v e D i r e c t o r t o a p p r o v e a n d e x e c u t e t h e i s s u a n c e o f t h e f i n a l O f f i c i a l
S t a t e m e n t ;
4 ) A p p r o v e t h e d r a f t I n d e n t u r e b e t w e e n t h e R i v e r s i d e C o u n t y T r a n s p o r t a t i o n
C o m m i s s i o n a n d U . S . B a n k N a t i o n a l A s s o c i a t i o n , a s T r u s t e e , a n d a u t h o r i z e
t h e E x e c u t i v e D i r e c t o r t o a p p r o v e a n d e x e c u t e t h e f i n a l i n d e n t u r e ;
5 ) A p p r o v e t h e d r a f t F i r s t S u p p l e m e n t a l I n d e n t u r e b e t w e e n t h e R i v e r s i d e
C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n a n d U . S . B a n k N a t i o n a l A s s o c i a t i o n , a s
T r u s t e e , a n d a u t h o r i z e t h e E x e c u t i v e D i r e c t o r t o a p p r o v e a n d e x e c u t e t h e
f i n a l f i r s t s u p p l e m e n t a l i n d e n t u r e ; a n d
6 ) A p p r o v e t h e d r a f t B o n d P u r c h a s e A g r e e m e n t b e t w e e n t h e R i v e r s i d e C o u n t y
T r a n s p o r t a t i o n C o m m i s s i o n a n d L e h m a n B r o t h e r s , a s U n d e r w r i t e r
R e p r e s e n t a t i v e a c t i n g o n b e h a l f o f i t s e l f a n d B a n c o f A m e r i c a S e c u r i t i e s L L C ,
a n d a u t h o r i z e t h e E x e c u t i v e D i r e c t o r t o a p p r o v e a n d e x e c u t e t h e f i n a l b o n d
p u r c h a s e a g r e e m e n t .
A g e n d a I t e m 9 7 2
BACKGROUND INFORMATION:
At its April 9, 2008 meeting, the Commission directed staff to continue: efforts to
develop a plan to refinance the outstanding commercial paper as a result of the
need for additional financing capacity. Drafts of the proposed documents relating
to the issuance of the 2008 Series A Sales Tax Revenue Bonds (2008 Bonds) were
also provided at that meeting for preliminary consideration.
The continuing efforts regarding the plan to refinance the commercial paper
included presentations to the rating agencies to confirm the strong credit ratings on
the Commission's outstanding bonds and to seek ratings on the 2008 Bonds.
Meetings were held on April 21, 2008 in New York with Standards & Poor's and
Fitch Ratings and on April 30, 2008 in San Francisco with Moody's Investors
Service. Credit ratings are expected to be received by May 7, 2008 and will be
presented at the May 14, 2008 Commission meeting.
The financing team has also continued to review and revise the draft documents as
the specific details of the plan of finance have been refined. The financing team is
comprised of the following key members:
• Financial Advisor: Fieldman, Rolapp & Associates;
• Bond Counsel: Orrick Herrington & Sutcliffe LLP;
• Disclosure Counsel: Nossaman, Guthner, Knox & Elliott LLP;
• General Counsel: Best, Best & Krieger LLP;
• Underwriters/Remarketing Agents: Lehman Brothers and Banc of America
Securities LLC; and
• Underwriters Counsel: Stradling Yocca Carlson & Rauth.
The latest drafts of the following documents for the 2008 Bonds are included as
attachments to this staff report for the Commission's adoption or approval:
• Preliminary official statement (draft);
• Resolution No. 08-010 (draft) authorizing the issuance and sale of a not to
exceed amount of sales tax revenue bonds; the execution and delivery of an
indenture, supplemental indenture, purchase contract, and official statement;
and the taking of all other actions necessary in connection with this
transaction;
• Indenture between the Commission and the trustee (draft) regarding the
terms and conditions of the issuance of sales tax revenue bonds;
• First supplemental indenture between the Commission and the trustee (draft)
regarding the terms and conditions of the issuance of the 2008 Bonds; and
Agenda Item 9 73
•
"
"
" B o n d p u r c h a s e a g r e e m e n t ( d r a f t ) b e t w e e n L e h m a n B r o t h e r s , a s s e n i o r
m a n a g i n g u n d e r w r i t e r a n d r e p r e s e n t a t i v e o f t h e u n d e r w r i t e r s , a n d t h e
C o m m i s s i o n r e g a r d i n g t h e p u r c h a s e o f t h e 2 0 0 8 B o n d s .
A s n o t e d a t t h e A p r i l 9 , 2 0 0 8 C o m m i s s i o n m e e t i n g , o n e o f t h e a c t i o n s a t t o d a y ' s
m e e t i n g i s f o r t h e C o m m i s s i o n t o a p p r o v e t h e f o r m o f t h e P r e l i m i n a r y O f f i c i a l
S t a t e m e n t a n d a u t h o r i z e i t s d i s t r i b u t i o n i n c o n n e c t i o n w i t h t h e s a l e s o f t h e 2 0 0 8
B o n d s , a s w e l l a s t h e p r e p a r a t i o n o f a f i n a l O f f i c i a l S t a t e m e n t o n c e t h e 2 0 0 8 B o n d s
h a v e b e e n p r i c e d . T h e s e o f f e r i n g d o c u m e n t s a r e r e q u i r e d u n d e r s t a t e a n d f e d e r a l
s e c u r i t i e s l a w s p r o h i b i t i n g t h e o f f e r a n d s a l e o f s e c u r i t i e s s u c h a s t h e 2 0 0 8 B o n d s
u n l e s s a l l m a t t e r s t h a t w o u l d b e m a t e r i a l t o a n i n v e s t o r i n t h e 2 0 0 8 B o n d s h a v e
b e e n a d e q u a t e l y d i s c l o s e d a n d t h a t t h e r e i s n o o m i s s i o n o f m a t e r i a l f a c t s .
F u r t h e r m o r e , u n d e r r u l e s o f t h e S e c u r i t i e s a n d E x c h a n g e C o m m i s s i o n , t h e
u n d e r w r i t e r s c a n n o t p u r c h a s e t h e 2 0 0 8 B o n d s u n l e s s t h e y h a v e r e c e i v e d a
" s u b s t a n t i a l l y f i n a l " o f f e r i n g d o c u m e n t w h i c h d i s c l o s e s a l l m a t e r i a l i n f o r m a t i o n t h a t
t h e y r e a s o n a b l y b e l i e v e t o b e t r u e a n d c o r r e c t .
T h e C o m m i s s i o n e r s s e r v i n g o n t h e B o a r d a s t h e g o v e r n i n g b o d y o f t h e i s s u e r o f t h e
2 0 0 8 B o n d s a r e e x p e c t e d t o r e a d a n d b e f a m i l i a r w i t h t h e i n f o r m a t i o n d e s c r i b e d i n
t h e d r a f t P r e l i m i n a r y O f f i c i a l S t a t e m e n t i n c l u d e d w i t h t h i s s t a f f r e p o r t . T h e
C o m m i s s i o n e r s m a y e m p l o y t h e s e r v i c e s o f e x p e r t s t o t a k e t h e l e a d i n t h e d r a f t i n g
a n d r e v i e w o f t h e o f f i c i a l s t a t e m e n t ; h o w e v e r , t h e C o m m i s s i o n e r s h a v e t h e d u t y t o
r e v i e w t h e i n f o r m a t i o n a n d b r i n g t o t h e a t t e n t i o n o f t h o s e r e s p o n s i b l e f o r t h e
p r e p a r a t i o n o f t h e o f f e r i n g d o c u m e n t a n y m i s s t a t e m e n t s o r o m i s s i o n s i n t h e d r a f t
a n d t o a s k q u e s t i o n s i f t h e y a r e u n c l e a r a b o u t t h e i n f o r m a t i o n o r t h e i r r o l e . T h e
f i n a n c i n g t e a m w i l l b e a v a i l a b l e a t t h e C o m m i s s i o n m e e t i n g t o r e s p o n d t o t h e
i d e n t i f i c a t i o n o f a n y m i s s t a t e m e n t s o r o m i s s i o n s o r t o s u c h q u e s t i o n s .
S i g n i f i c a n t c h a n g e s t o t h e s e d o c u m e n t s a r e n o t a n t i c i p a t e d , w i t h t h e e x c e p t i o n o f
t h e f i n a l d e t a i l s o f t h e b o n d p r i c i n g s c h e d u l e d f o r M a y 2 8 - 2 9 , 2 0 0 8 . S i n c e g e n e r a l
l e g a l c o u n s e l i s a k e y m e m b e r o f t h e f i n a n c i n g t e a m , s t a f f r e c o m m e n d s t h a t t h e
e x e c u t i v e d i r e c t o r b e a u t h o r i z e d t o a p p r o v e a n d e x e c u t e t h e f i n a l d o c u m e n t s . T h e
p r e c l o s i n g a c t i v i t i e s r e l a t e d t o t h e 2 0 0 8 B o n d s , i n c l u d i n g t h e e x e c u t i o n o f a l l
d o c u m e n t s , i s s c h e d u l e d f o r J u n e 9 , 2 0 0 8 a t t h e o f f i c e s o f b o n d c o u n s e l i n
S a n F r a n c i s c o . E x e c u t i v e D i r e c t o r A n n e M a y e r a n d C h i e f F i n a n c i a l O f f i c e r
T h e r e s i a T r e v i n o a r e s c h e d u l e d t o a t t e n d t h e p r e c l o s i n g m e e t i n g .
P l a n o f F i n a n c e
T h e p l a n o f f i n a n c e i s t o i s s u e a p p r o x i m a t e l y $ 1 3 0 m i l l i o n o f s a l e s t a x r e v e n u e
b o n d s t o r e f i n a n c e t h e o u t s t a n d i n g c o m m e r c i a l p a p e r o f a p p r o x i m a t e l y
$ 1 1 0 m i l l i o n ; f u n d c a p i t a l i z e d i n t e r e s t o n t h e b o n d s t h r o u g h D e c e m b e r 1 , 2 0 0 9 ,
A g e n d a I t e m 9 7 4
since sales tax receipts will not commence until September 2009; establish a debt
service reserve fund; and pay costs of issuance of the 2008 Bonds.
The 2008 Bonds are long-term bonds due in June 2029 with a mandatory tender to
purchase the' 2008 Bonds on December 1, 2009. The initial interest rate will be a
fixed interest rate through December 1, 2009. On December 1, 2009, the 2008
Bonds will be required to be remarketed and a new long-term rate period would be
established. In the unlikely event that the Commission does not have access to the
capital markets on December 1, 2009, the existing bond holders would continue to
own the 2008 Bonds and those bonds will bear an interest rate of 11 % until such
time as the bonds can be remarketed. Considering the Commission's current
strong underlying credit ratings, there are no plans to obtain a liquidity facility (e.g.,
letter of credit) or credit enhancement (e.g., bond insurance) to support the 2008
Bonds. The 2008 Bonds will be repaid solely from 2009 Measure A sales tax
receipts. This plan of finance was presented to the rating agencies, and the
presentation is included as an attachment to this staff report.
Staff recommends adoption of Resolution 08-010, approval of the draft preliminary
official statement; indenture, first supplemental indenture, and bond purchase
agreement, and authorization of the Executive Director to approve and execute the
final documents.
Financial Information
$130,000,000 bond
proceeds;
In Fiscal Year Budget:
No
Year:
FY 2007/08
Amount:
$1 10,005,000
principal payment;
$950,000 costs of
issuance
Source of Funds:.
2008 Sales Tax Revenue Bonds
Budget Ad ustment:
Yes
303 31 59102 $130,000,000 Bond Proceeds
GLA No.:
303 31 97101 $110,005,000 Principal Payment
303 31 96103 $ 950,000 Costs of Issuance
Fiscal Procedures Approved:
Date:
Attachments:
(1) April 2008 Presentation to the Rating Agencies
(2) Resolution No. 08-010 (Draft)
(3) Preliminary Official Statement (Draft)
(4) Indenture (Draft)
(5) First Supplemental Indenture (Draft)
(6) Bond Purchase Agreement (Draft)
Agenda Item 9 75
MEASURE A SALES TAX REVENUE IS THE
PRIMARY SOURCE OF FINANCING
O 7.71% average growth in Measure A annual receipts since 1991
O Measure A revenues reflect stable, diversified local
economy and population growth
FINANCING PROGRAM OVERVIEW
O 1989 Measure A bonds are performing well with coverage in
excess of 3x debt service
• All bonds mature in 2009
O 2009 Measure A interim financing program performing as planned
• $185 million commercial paper program started in 2005
• Forward starting swaps executed in 2006, hedging
$185 million long-term financing in 2009
• New $130 million Series 2008 Bonds pricing in May 2008
O RCTC has no exposure to auction rate securities and, therefore,
no impact from market fallout
1989 MEASURE A DEBT SERVICE COVERAGE
O Outstanding bonds of $65,495,000 on June 30, 2007
- Maturing in June 2009 with annual debt service payments
of approximately $35.5 million
• No plans for additional bond issuance under 1989 Measure A
O Additional Bonds Test
• 1.50x Maximum Annual Debt Service
- 1.15x on Junior Debt
O Commission Policy
• Maintain 2.0x debt service coverage
O Projected Debt Service Coverage of at least 3.0x through 2009
• Includes all senior and subordinate debt
• Assumes revenue projections provided by RCTC
HISTORICAL AND PROJECTED
DEBT SERVICE COVERAGE
$100,000,000
$90,000,000
$90,0011,000 -
$70,000,000
$60,000 000 -
$50,000,000
$40,000,000
$30,000000
$20,000,000
$10,000,000
Rejected
1997 19913 1999 2000 2001 2002 2003 2004 2005 2006 2007 2036 2009
rsswl Year 77
5.00
450
4.00
3.50
3.00
250
2.00
150
1AD
050
0.00
FINANCIAL
UPDATE &
SERIES 2008
SALES TAX
REVENUE. BONDS
;FINANCIAL
' IPDATE &
=RIES 2008
SALES TAX
REVENUE BONDS
2009 MEASURE A COMMERCIAL
PAPER PROGRAM
O $185 million commercial paper authorization
• Secured by letter of credit from Bank of America which
expires March 2010
O $110 million of commercial paper issued as of April 2008
• Significant land mitigation acquisitions
• Strategic partnership efforts
• Local jurisdiction projects
• Preliminary engineering on highway projects
O FY 2008/09 project requirements exceed remaining capacity
of the program
2006 FORWARD STARTING SWAPS
O $185 million notional amount
- $100 million — Banc of America Securities
• $85 million— Lehman Brothers
O 3.679% for 20 years vs. 67% of 1-month LIBOR
O Effective date: October 1, 2009
SWAP -RELATED FINANCING ALTERNATIVES
O In 2009 RCTC will have the following financing alternatives with
respect to the outstanding swaps:
• Issue $185 million of variable rate bonds matching the swaps
- Issue $185 million under the existing commercial paper
program to match the swaps
• Terminate the swaps
78
NEW FINANCING: 2008 BONDS
O Commercial paper program has met interim financing needs for 2009
Measure A program since March 2005
O Success with Perris Valley Line and other projects has expanded interim
financing demand beyond the $185 million commercial paper program
O Short-term fixed rate bond financing with 2009 maturity is most cost-
effective way to expand interim funding capacity through start of new
Measure A sales tax collections in 2009
SECURITY AND STRUCTURE FOR
2008 BONDS
O Series 2008 bonds are secured by a gross pledge of 2009 Measure A
sales tax revenues
O Series 2008 bonds will be uninsured
O $130 million* par amount of bonds
• Refinance outstanding commercial paper of $110 million
• Capitalized interest fund for interest payments through 12/1/2009
(2009 Measure A sales tax receipts begin in late 2009)
• Debt service reserve fund to be established
O Conventional 1.5x ABT for Senior Lien parity bonds
• No parity bonds are expected to be issued before 2009 financing/
refinancing
• 2009 Measure A Ordinance currently has a $500 million debt limit
O Bonds will carry a fixed interest rate through December 2009
O On or before the maturity of the bonds (likely October 2009) RCTC
will refinance these bonds and use the proceeds to repay bond holders
O If RCTC does not have market access in 2009 as planned, bond holders
keep the bonds and RCTC will pay a higher interest rate until bonds can
be refinanced
- Bondholders receive a failed tender rate of 11% until RCTC can
refinance
"preliminary, subject to change
79
FINANCIAL
UPDATE &
SERIES 2008
SALES TAX
REVENUE BONDS
FINAIvcAL
' IPDATE.& •
CRIES 200$
SALES TAX
REVENUE BONDS:
4
2009 MEASURE A COVERAGE &
STRESS SCENARIOS
O Ordinance limits outstanding debt to $500 million
O Estimated 2008 revenues are $145 million
O Expected debt service coverage for 2009 bonds is well over 6.0x
O Stress Scenario 1: Refund 2008 bonds and all CP: $315 million 2009
senior lien refunding
• $185 million of VRDBs at the 3.679% swap rate
• $130 million of fixed rate bonds at 6%
• 20 year level debt service amortization
O Stress Scenario 2: Refund 2008 bonds and all CP + new money to
hit debt limit: $500 million senior lien issue in 2009
• $185 million of VRDBs at the 3.679% swap rate
• $315 million of fixed rate bonds at 6%
• 20 year level debt service amortization
O More modest utilization of debt and the ability to amortize debt
up to 30 years add cushions that make these stress case coverage
scenarios very conservative
0
SUMMARY OF CREDIT STRENGTHS
O Strong historical sales tax growth
O Strong economic foundation for continued sales tax receipts
O Proactive organization and leadership
O $500 million debt limit ensures strong debt service coverage under
any scenario
O Both sales tax measures achieved more than 2/3 voter support
TIMELINE
Wednesday, April 9, 2008
Monday, April 14, 2008
Monday, April 21, 2008
Wednesday, April 30, 2008
Wednesday, May 7, 2008
Wednesday, May 14, 2008
Thursday, May 29, 2008
Tuesday, June 10, 2008
80
Commission Approves Plan of Finance
Documents Sent to Rating Agencies
Meetings with Rating Agencies in New York
Meeting with Rating Agency in San Francisco
Bond Ratings Received
Commission Approves Financing Documents
Bond Sale
Bond Closing
800Z PVT AeN
M
in
X
X
M
as
0
c
m
03
O
O.
Why Issue 2008 Bonds?
• Commercial paper program has provided ability
to advance project development on 2009
Measure A projects
— FY 2008/09 project requirements exceed remaining
capacity
— Short-term financing plan required for Perris Valley
Line
• Plan of finance fits with anticipated 2009 bond
financing
— Forward -starting interest rate swaps are effective
October 1, 2009
Summary of 2008 Bonds
• Secured by 2009 Measure A sales tax revenues
• $130 million par amount of bonds (uninsured)
— Refinancing of outstanding commercial paper of $110 million
— Funding of capitalized interest fund for interest payments
through 12/1/09
— Establishment of debt service reserve
— Fixed interest rate through 12/1/09
— Required remarketing of bonds on 12/1/09
• Failed remarketing results in 11% interest rate to bondholders
until bonds are remarketed
• Intent is to refinance bonds in October 2009 to match swaps
3
2008 Bonds Analysis
• Bond documents require 1 5x debt service
coverage
— RCTC board policy is 2.0x
• 2008 Bonds indicate strong debt service
coverage
• Expected coverage of nearly 6.0x for anticipated
2009 bond issuance
— Stress case of $500 million bonds = 3.5x coverage
— Significant decline in revenues greater than 40%
would be necessary to drive coverage below 2.0x
2008 Bond Ratings
• April 2008 meetings in NY and San Francisco
with three rating agencies
• Exciting results
— S&P: AA+ (stable outlook)
• 1989 Measure A bonds: AAA
Moody's: Aa2
— Fitch: AA (stable outlook)
2008 Bonds Documents
• Resolution 08-010
• Preliminary Official Statement
• Indenture
• First Supplemental Indenture
• Bond Purchase Agreement
" C o m m i s s i o n a p p r o v a l o f f i n a n c i n g d o c u m e n t s
t o d a y
A u t h o r i z a t i o n f o r E x e c u t i v e D i r e c t o r t o a p p r o v e a n d
e x e c u t e f i n a l d o c u m e n t s
" S a l e o f b o n d s o n M a y 2 8 - 2 9 , 2 0 0 8
" P r e c l o s i n g a c t i v i t i e s o n J u n e 9 , 2 0 0 8
" C l o s i n g a n d r e c e i p t o f b o n d p r o c e e d s o n J u n e
1 0 , 2 0 0 8
" B e g i n p l a n n i n g a c t i v i t i e s f o r 2 0 0 9 B o n d s i s s u a n c e
i n F a l l 2 0 0 8
i
i
I
ATTACHMENT 2
OH&S Draft
4/18/08
NO.08-010
RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF NOT TO EXCEED
$130,000,000 AGGREGATE PRINCIPAL AMOUNT OF RIVERSIDE COUNTY
TRANSPORTATION COMMISSION SALES TAX REVENUE BONDS (LIMITED TAX
BONDS), 2008 SERIES A, THE EXECUTION AND DELIVERY OF AN INDENTURE,
SUPPLEMENTAL INDENTURE, PURCHASE CONTRACT, OFFICIAL STATEMENT
AND CONTINUING DISCLOSURE AGREEMENT AND THE TAKING OF ALL
OTHER ACTIONS NECESSARY IN CONNECTION THEREWIT73
WHEREAS, the Riverside County Transportation Commission (the "Commission") is a
county transportation commission duly organized and existing pursuant to the County
Transportation Commissions Act, being Division 12 of the Public Utilities Code of the State of
California (Section 130000 et seq.);
WHEREAS, the Commission is authorized pursuant to the Riverside County
Transportation Sales Tax Act, being Division 25 of the Public Utilities Code of the State of
California (Section 240000 et seq.) (the "Act"), to, among other things, and with voter approval,
levy a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing
with Section 7251) of Division 2 of the California Revenue and Taxation Code (the "Sales Tax
Law") and to issue limited tax bonds payable from the proceeds of such tax;
WHEREAS, the Commission adopted Ordinance No. 88-1, named the "Transportation
Expenditure Plan and Retail Transaction and Use Tax Ordinance" ("Ordinance No. 88-1"), on
July 6, 1988, pursuant to the provisions of the Act, which Ordinance provided for the imposition
of a retail transactions and use tax (the "1988 Sales Tax") applicable in the incorporated and
unincorporated territory of the County of Riverside (the "County") in accordance with the Sales
Tax Law at the rate of one-half of one percent (1/2%) for a period not to exceed twenty (20)
years;
WHEREAS, by its terms, Ordinance No. 88-1 became effective at the close of the polls
on November 8, 1988, the day of the election at which the proposition imposing the 1988 Sales
Tax was approved by a majority vote of the electors voting on the measure, and the collection of
the 1988 Sales Tax commenced on July 1, 1989;
WHEREAS, the Commission adopted Ordinance No. 02-001, named the "Transportation
Expenditure Plan and Retail Transaction and Use Tax Ordinance" (the "Ordinance") on May 8,
2002, pursuant to the provisions of the Act, which Ordinance provides for the imposition of a
retail transactions and use tax (the "Sales Tax") applicable in the incorporated and
unincorporated territory of the County in accordance with the provisions of the Sales Tax Law at
the rate of zero percent (0%) until the expiration of the 1988 Sales Tax on June 30, 2009, and
thereafter at the rate of one-half of one percent (1/2%) for a period not to exceed thirty (30)
yew;
0118 West:260379561.8
81
WHEREAS, by its terms, the Ordinance became effective at the close of the polls on
November 5, 2002, the day of the election at which the proposition imposing the Sales Tax was
approved by more than two-thirds of the electors voting on the measure;
WHEREAS, the Ordinance empowers the Commission to sell or issue, from time to
time, on or before the collection of the Sales Tax, bonds, or other evidences of indebtedness, in
the aggregate principal amount at any one time outstanding not to exceed $500 million for
capital expenditures for various purposes, including to carry out the transportation projects
described in the Riverside County Transportation Improvement Plan, adopted as part of the
Ordinance, including any future amendments thereto (the "Expenditure Plan");
WHEREAS, the Commission is authorized by Section 240309 of the California Public
Utilities Code to issue from time to time limited tax bonds (defined to include indebtedness and
securities of any kind or class, including sales tax revenue bonds), secured and payable in whole
or in part from revenues of the Sales Tax ("Sales Tax Revenues");
WHEREAS, the Commission has heretofore authorized the issuance of not to exceed
$200,000,000 in aggregate principal amount of its Commercial Paper Notes (Limited Tax
Bonds), Series A and Series B (collectively, the "CP Notes"), pursuant to an Indenture dated as
of March 1, 2005 (the "CP Indenture"), by and between the Commission and U.S. Bank National
Association, as successor trustee;
WHEREAS, the Commission has heretofore executed and delivered interest rate swap
agreements in an aggregate notional amount of $185 million (the "Initial Swaps"), which Initial
Swaps have an effective date of October 1, 2009;
WHEREAS, the Commission hereby determines that one or more new series or
subseries of bonds in an aggregate principal amount not to exceed one hundred thirty million
dollars ($130,000,000) is necessary in order to fmance (i) the refunding of all or a portion of the
outstanding CP Notes, (ii) capitalized interest on the bonds through December 1, 2009, (iii) the
reserve fund for such bonds, if any, (iv) swap termination payments, if any, (v) funds for projects
authorized in the Expenditure Plan, and (vi) the costs of issuance incurred in connection with
such bonds, and the Commission has determined that such bonds in an amount not to exceed
such principal amount shall be issued, secured by the Sales Tax Revenues and entitled,
"Riverside County Transportation Commission Sales Tax Revenue Bonds (Limited Tax Bonds),
2008 Series A" (the "Series 2008 Bonds");
WHEREAS, the Commission hereby further determines that the Series 2008 Bonds shall
be issued pursuant to an Indenture (the "Indenture"), as amended and supplemented, including as
amended and supplemented by a Supplemental Indenture thereto (the "Supplemental
Indenture"), which Indenture and Supplemental Indenture are proposed to be entered into by the
Commission and U.S. Bank National Association, as trustee (the "Trustee");
WHEREAS, there has been prepared and presented to the Board a proposed form of
Indenture and proposed form of Supplemental Indenture;
WHEREAS, in order to minimize debt service and maximize benefits to the Commission
in connection with the issuance of the Series 2008 Bonds, it may be desirable to issue the Series
OHS West:260379561.8
-2-
82
"
"
"
2 0 0 8 B o n d s a s f i x e d r a t e b o n d s o r a s v a r i a b l e r a t e b o n d s i n a t e r m m o d e ( t h e " V a r i a b l e R a t e
B o n d s " ) ;
W H E R E A S , i n o r d e r t o s e t f o r t h t h e t e r m s o f s a l e o f t h e S e r i e s 2 0 0 8 B o n d s , t h e
C o m m i s s i o n p r o p o s e s t o e n t e r i n t o a b o n d p u r c h a s e a g r e e m e n t ( t h e " P u r c h a s e C o n t r a c t " ) w i t h
L e h m a n B r o t h e r s I n c . a n d B a n c o f A m e r i c a S e c u r i t i e s L L C ( c o l l e c t i v e l y , t h e " P u r c h a s e r s " ) ;
W H E R E A S , t h e P u r c h a s e r s h a v e c a u s e d t o b e p r e p a r e d a n d s u b m i t t e d t o t h e
C o m m i s s i o n a p r o p o s e d f o r m o f P u r c h a s e C o n t r a c t ;
W H E R E A S , i n o r d e r t o p r o v i d e l i q u i d i t y s u p p o r t , c r e d i t e n h a n c e m e n t o r b o t h , f o r t h e
S e r i e s 2 0 0 8 B o n d s , t h e C o m m i s s i o n m a y p u r c h a s e b o n d i n s u r a n c e o r e n t e r i n t o o n e o r m o r e
c r e d i t a g r e e m e n t s , r e i m b u r s e m e n t a g r e e m e n t s , s t a n d b y b o n d p u r c h a s e a g r e e m e n t s o r o t h e r
l i q u i d i t y o r c r e d i t s u p p o r t a g r e e m e n t s ( e a c h , a " S u p p o r t A g r e e m e n t ' ) , c o n t a i n i n g s u c h t e r m s a n d
c o n d i t i o n s a s t h e E x e c u t i v e D i r e c t o r o f t h e C o m m i s s i o n ( t h e " E x e c u t i v e D i r e c t o r " ) o r t h e C h i e f
F i n a n c i a l O f f i c e r o f t h e C o m m i s s i o n ( t h e " C h i e f F i n a n c i a l O f f i c e r " ) c o n s i d e r s a p p r o p r i a t e a n d
w i t h a b a n k o r o t h e r f i n a n c i a l i n s t i t u t i o n o r i n s u r a n c e c o m p a n y o r a s s o c i a t i o n ( e a c h a " S u p p o r t
P r o v i d e r , " a n d c o l l e c t i v e l y , t h e " S u p p o r t P r o v i d e r s " ) t o b e s e l e c t e d b y t h e E x e c u t i v e D i r e c t o r o r
C h i e f F i n a n c i a l O f f i c e r i n t h e e v e n t a S u p p o r t A g r e e m e n t i s d e t e r m i n e d t o b e b e n e f i c i a l t o t h e
m a r k e t i n g o f t h e S e r i e s 2 0 0 8 B o n d s ;
W H E R E A S , i n o r d e r t o p r o v i d e i n f o r m a t i o n a b o u t t h e S e r i e s 2 0 0 8 B o n d s a n d r e l a t e d
m a t t e r s t o p u r c h a s e r s a n d p o t e n t i a l p u r c h a s e r s o f t h e . S e r i e s 2 0 0 8 B o n d s , t h e C o m m i s s i o n
p r o p o s e s t o e x e c u t e a n d d e l i v e r a n o f f i c i a l s t a t e m e n t ( t h e " O f f i c i a l S t a t e m e n t ' ) ;
W H E R E A S , t h e r e h a s b e e n p r e p a r e d a n d p r e s e n t e d t o t h e B o a r d a p r o p o s e d f o r m o f .
O f f i c i a l S t a t e m e n t i n p r e l i m i n a r y f o r m ( t h e " P r e l i m i n a r y O f f i c i a l S t a t e m e n t ' ) a n d a p r o p o s e d
f o r m o f C o n t i n u i n g D i s c l o s u r e A g r e e m e n t ( t h e " C o n t i n u i n g D i s c l o s u r e A g r e e m e n t ' ) ;
W H E R E A S , t h e C o m m i s s i o n h a s b e e n p r e s e n t e d w i t h t h e f o r m s o f t h e I n d e n t u r e , t h e
S u p p l e m e n t a l I n d e n t u r e , t h e P u r c h a s e C o n t r a c t , t h e C o n t i n u i n g D i s c l o s u r e A g r e e m e n t a n d t h e
O f f i c i a l S t a t e m e n t r e l a t i n g t o t h e f i n a n c i n g d e s c r i b e d h e r e i n ( t h e " F i n a n c i n g " ) , a n d t h e
C o m m i s s i o n h a s e x a m i n e d a n d a p p r o v e d e a c h d o c u m e n t a n d d e s i r e s t o a u t h o r i z e a n d d i r e c t t h e
e x e c u t i o n o f s u c h d o c u m e n t s a s a r e s p e c i f i e d h e r e i n a n d s u c h o t h e r d o c u m e n t s a s a r e n e c e s s a r y
i n c o n n e c t i o n w i t h t h e F i n a n c i n g a n d t o a u t h o r i z e a n d d i r e c t t h e c o n s u m m a t i o n o f t h e F i n a n c i n g ;
a n d
W H E R E A S , a l l a c t s , c o n d i t i o n s a n d t h i n g s r e q u i r e d b y t h e L a w a n d t h e C o n s t i t u t i o n a n d
l a w s o f t h e S t a t e o f C a l i f o r n i a t o e x i s t , t o h a v e h a p p e n e d a n d t o h a v e b e e n p e r f o r m e d p r e c e d e n t
t o a n d i n c o n n e c t i o n w i t h t h e c o n s u m m a t i o n o f t h e F i n a n c i n g a u t h o r i z e d h e r e b y d o e x i s t , h a v e
h a p p e n e d a n d h a v e b e e n p e r f o r m e d i n r e g u l a r a n d d u e t i m e , f o r m a n d m a n n e r a s r e q u i r e d b y l a w ,
a n d t h e C o m m i s s i o n i s n o w d u l y a u t h o r i z e d a n d e m p o w e r e d , p u r s u a n t t o e a c h a n d e v e r y
r e q u i r e m e n t o f l a w , t o a u t h o r i z e s u c h F i n a n c i n g a n d t o a u t h o r i z e t h e e x e c u t i o n o f t h e I n d e n t u r e ,
t h e S u p p l e m e n t a l I n d e n t u r e , t h e P u r c h a s e C o n t r a c t , o n e o r m o r e S u p p o r t A g r e e m e n t s , t h e
O f f i c i a l S t a t e m e n t a n d t h e C o n t i n u i n g D i s c l o s u r e A g r e e m e n t f o r t h e p u r p o s e s , i n t h e m a n n e r a n d
u p o n t h e t e r m s p r o v i d e d ;
O H S W e s t : 2 6 0 3 7 9 5 6 1 . S
- 3 -
8 3
NOW THEREFORE, THE RIVERSIDE COUNTY TRANSPORTATION
COMMISSION RESOLVES:
Section 1. The Commission finds and determines that the foregoing recitals are true
and correct.
Section 2. The issuance by the Commission of not to exceed $130,000,000 aggregate
principal amount of Riverside County Transportation Commission Sales Tax Revenue Bonds
(Limited Tax Bonds), 2008 Series A, in accordance with the provisions set forth in the Indenture,
in one or more series or subseries, is hereby authorized and approved.
Section 3. The proposed form of Indenture and Supplemental Indenture presented to
this meeting and the terms and conditions thereof are hereby approved. The structure, date,
maturity date or dates (not to exceed June 1, 2039), fixed or variable interest rate or rates (such
rates not to exceed a maximum of 12% per annum) or methods of determining the same, interest
payment dates, forms, registration privileges, place or places of payment, terns of redemption,
tender, mandatory purchase, additional series designation and number thereof and other terms of
the Series 2008 Bonds shall be (subject to the foregoing limitations) as provided in the Indenture
and the Supplemental Indenture as finally executed and delivered.
The Executive Director is hereby authorized and directed, for and in the name and on
behalf of the Commission, to execute and deliver the Indenture and the Supplemental Indenture,
in substantially said form, with such changes therein as the officer executing the same may
require or approve, such approval to be conclusively evidenced by the execution and delivery
thereof.
Section 4. The proposed form of Purchase Contract presented to this meeting and the
terns and conditions thereof are hereby approved. The Executive Director is hereby authorized
and directed, for and in the name and on behalf of the Commission, to sell the Series 2008 Bonds
to the Purchasers pursuant to the Purchase Contract with the Purchasers' compensation not to
exceed 1% of the principal amount of the Series 2008 Bonds and to execute and deliver a
Purchase Contract, in substantially said form, with such changes therein as the officer executing
the same may require or approve, such approval to be conclusively evidenced by the execution
and delivery thereof.
Section 5. The Executive Director is hereby authorized to negotiate with Support
Providers a Support Agreement for the Series 2008 Bonds, and, if the Executive Director, with
the advice of Fieldman, Rolapp & Associates (the "Financial Advisor"), determines that doing so
is in the best interests of the Commission, to enter into such Support Agreement on such terms as
the Executive Director, with the advice of the Financial Advisor, determines are appropriate.
Section 6. The proposed form of Preliminary Official Statement presented to this
meeting is hereby approved. The Executive Director is hereby authorized and directed to
execute and deliver to the Purchasers a certificate deeming the Preliminary Official Statement, in
substantially the form on file with the Clerk and presented to this meeting and with such changes
as the Executive Director approves in the interest of the Commission, final within the meaning of
Securities Exchange Commission Rule 15c2-12. The Purchasers are hereby authorized to
OHS West:260379561.8
-4-
•
84
"
d i s t r i b u t e t h e P r e l i m i n a r y O f f i c i a l S t a t e m e n t i n t h e f o r m s o d e e m e d f i n a l b y t h e E x e c u t i v e
D i r e c t o r . T h e E x e c u t i v e D i r e c t o r i s h e r e b y a u t h o r i z e d a n d d i r e c t e d , f o r a n d i n t h e n a m e a n d o n
b e h a l f o f t h e C o m m i s s i o n , t o e x e c u t e a n d d e l i v e r a f i n a l O f f i c i a l S t a t e m e n t , i n s u b s t a n t i a l l y s a i d
f o r m , w i t h s u c h c h a n g e s t h e r e i n a s t h e o f f i c e r e x e c u t i n g t h e s a m e m a y r e q u i r e o r a p p r o v e , s u c h
a p p r o v a l t o b e c o n c l u s i v e l y e v i d e n c e d b y t h e e x e c u t i o n a n d d e l i v e r y t h e r e o f .
S e c t i o n 7 . T h e p r o p o s e d f o r m o f C o n t i n u i n g D i s c l o s u r e A g r e e m e n t p r e s e n t e d t o t h i s
m e e t i n g i s h e r e b y a p p r o v e d . T h e E x e c u t i v e D i r e c t o r i s h e r e b y a u t h o r i z e d a n d d i r e c t e d , f o r a n d
i n t h e n a m e a n d o n b e h a l f o f t h e C o m m i s s i o n , t o e x e c u t e a n d d e l i v e r t h e C o n t i n u i n g D i s c l o s u r e
A g r e e m e n t , i n s u b s t a n t i a l l y s a i d f o r m , w i t h s u c h c h a n g e s t h e r e i n a s s u c h o f f i c e r e x e c u t i n g t h e
s a m e m a y r e q u i r e o r a p p r o v e , s u c h a p p r o v a l t o b e c o n c l u s i v e l y e v i d e n c e d b y t h e e x e c u t i o n a n d
d e l i v e r y t h e r e o f .
S e c t i o n 8 . T h e E x e c u t i v e D i r e c t o r i s h e r e b y a u t h o r i z e d t o n e g o t i a t e w i t h f i n a n c i a l
i n s t i t u t i o n s a n d / o r i n s u r a n c e c o m p a n i e s , a s a p p l i c a b l e , a n i r r e v o c a b l e l e t t e r o f c r e d i t , o r a s u r e t y
b o n d , o r a n i n s u r a n c e p o l i c y , a n d , i f t h e E x e c u t i v e D i r e c t o r , w i t h t h e a d v i c e o f t h e F i n a n c i a l
A d v i s o r , d e t e r m i n e s t h a t d o i n g s o i s i n t h e b e s t i n t e r e s t o f t h e C o m m i s s i o n , t o s e c u r e s u c h
i r r e v o c a b l e l e t t e r o f c r e d i t , s u r e t y b o n d , o r i n s u r a n c e p o l i c y o n s u c h t e r m s a s t h e E x e c u t i v e
D i r e c t o r , w i t h t h e a d v i c e o f t h e F i n a n c i a l A d v i s o r , d e t e r m i n e s a r e a p p r o p r i a t e , i n o r d e r t o f u n d
a n y b o n d r e s e r v e f u n d e s t a b l i s h e d p u r s u a n t t o t h e I n d e n t u r e o r t h e S u p p l e m e n t a l I n d e n t u r e .
S e c t i o n 9 . T h e E x e c u t i v e D i r e c t o r i s h e r e b y a u t h o r i z e d t o e n t e r i n t o o r t o i n s t r u c t t h e
T r u s t e e t o e n t e r i n t o , w i t h t h e a d v i c e o f t h e F i n a n c i a l A d v i s o r , o n e o r m o r e i n v e s t m e n t
a g r e e m e n t s , f l o a t c o n t r a c t s , s w a p s o r o t h e r h e d g i n g p r o d u c t s o r t o t e r m i n a t e o r r e v i s e t h e I n i t i a l
S w a p s ( h e r e i n a f t e r c o l l e c t i v e l y r e f e r r e d t o a s " H e d g e A g r e e m e n t s " ) p r o v i d i n g f o r t h e h e d g i n g o f
i n t e r e s t r a t e o r t h e i n v e s t m e n t o f m o n e y s i n a n y o f t h e f u n d s a n d a c c o u n t s c r e a t e d u n d e r t h e
I n d e n t u r e o r t h e S u p p l e m e n t a l I n d e n t u r e , o n s u c h t e r m s a s t h e E x e c u t i v e D i r e c t o r s h a l l d e e m
a p p r o p r i a t e . P u r s u a n t t o S e c t i o n 5 9 2 2 o f t h e C a l i f o r n i a G o v e r n m e n t C o d e , t h e C o m m i s s i o n
h e r e b y f i n d s a n d d e t e r m i n e s t h a t t h e H e d g e A g r e e m e n t s w i l l r e d u c e t h e a m o u n t a n d d u r a t i o n o f
i n t e r e s t r a t e r i s k w i t h r e s p e c t t o a m o u n t s i n v e s t e d p u r s u a n t t o t h e H e d g e A g r e e m e n t s a n d / o r i s
d e s i g n e d t o r e d u c e t h e a m o u n t o r d u r a t i o n o f p a y m e n t , r a t e , s p r e a d o r s i m i l a r r i s k o r r e s u l t i n a
l o w e r c o s t o f b o r r o w i n g w h e n u s e d i n c o m b i n a t i o n w i t h t h e I n i t i a l S w a p s a n d t h e S e r i e s 2 0 0 8
B o n d s o r e n h a n c e t h e r e l a t i o n s h i p b e t w e e n r i s k a n d r e t u r n w i t h r e s p e c t t o i n v e s t m e n t s .
S e c t i o n 1 0 . A l l a p p r o v a l s , c o n s e n t s , d i r e c t i o n s , n o t i c e s , o r d e r s , r e q u e s t s a n d o t h e r
a c t i o n s p e r m i t t e d o r r e q u i r e d b y a n y o f t h e d o c u m e n t s a u t h o r i z e d b y t h i s R e s o l u t i o n o r t h e I n i t i a l
S w a p s , i n c l u d i n g , w i t h o u t l i m i t a t i o n , a n y a m e n d m e n t o f a n y o f t h e d o c u m e n t s a u t h o r i z e d b y t h i s
R e s o l u t i o n o r t h e I n i t i a l S w a p s o r o t h e r a g r e e m e n t r e l a t e d t h e r e t o , a n d a n y o f t h e f o r e g o i n g t h a t
m a y b e n e c e s s a r y o r d e s i r a b l e i n c o n n e c t i o n w i t h a n y S u p p o r t A g r e e m e n t o r t h e e x t e n s i o n o r
r e p l a c e m e n t t h e r e o f , o r a n y r e s e r v e f a c i l i t y , a n y i n v e s t m e n t o f p r o c e e d s o f t h e S e r i e s 2 0 0 8
B o n d s , o r i n c o n n e c t i o n w i t h t h e a d d i t i o n , s u b s t i t u t i o n o r r e p l a c e m e n t o f u n d e r w r i t e r s o r
r e m a r k e t i n g a g e n t s , o r a n y a g r e e m e n t s w i t h p a y i n g a g e n t s , e s c r o w a g e n t s o r v e r i f i c a t i o n a g e n t s ,
t h e r e m o v a l o r r e p l a c e m e n t o f t h e T r u s t e e o r a n y s i m i l a r a c t i o n m a y b e g i v e n o r t a k e n b y a n
A u t h o r i z e d R e p r e s e n t a t i v e ( a s s u c h t e r m i s d e f i n e d i n t h e I n d e n t u r e ) , w i t h o u t f u r t h e r
a u t h o r i z a t i o n o r d i r e c t i o n b y t h i s B o a r d , a n d e a c h A u t h o r i z e d R e p r e s e n t a t i v e i s h e r e b y
a u t h o r i z e d a n d d i r e c t e d t o g i v e a n y s u c h a p p r o v a l , c o n s e n t , d i r e c t i o n , n o t i c e , o r d e r , r e q u e s t o r
O H S W e s t : 2 6 0 3 7 9 5 6 1 . 8
8 5
other action and to take any such action which such Authorized Representative may deem
necessary or desirable to further the purposes of this Resolution.
All consents, approvals, notices, orders, requests and other actions permitted or required
by any of the documents authorized by this Resolution, whether before or after the issuance of
the Series 2008 Bonds, which may be necessary or desirable in connection with any default
under or amendment of such documents, settlements or revisions, may be taken or given by the
Authorized Representative, without further authorization by this Board, and the Authorized
Representative is hereby authorized and directed to give such consent, approval, notice, order or
request and to take any such action which such officer may deem necessary or desirable to
further the purposes of this Resolution and the transactions contemplated hereby.
Section 11. All actions heretofore taken by the officers and agents of the Commission
with respect to the Financing and the issuance and sale of the Series 2008 Bonds are hereby
ratified, confirmed and approved. If at the time of execution of any of the documents authorized
herein, the Executive Director is unavailable, such documents may be executed by the Deputy
Executive Director of the Commission or the Chief Financial Officer in lieu of the Executive
Director. The Chief Financial Officer of the Commission shall act as the Auditor -Controller of
the Commission for execution of the Series 2008 Bonds. TheClerkof the Board of the
Commission is hereby authorized to attest to the execution by the Executive Director or the
Deputy Executive Director or the Chief Financial Officer of any of such documents assaid
officers deem appropriate.
The proper officers and agents of the Commission are hereby authorized and directed,
jointly and severally, for and in the name and on behalf of the Commission, to do any and all
things and to take any and all actions and to execute and deliver any and all agreements,
certificates and documents, including, without limitation, any tax certificates or agreements, any
agreements for depository or verification services, and any agreements for rebate compliance
services, which they, or any of them, may deem necessary or advisable in order to consummate
the Financing and the issuance and sale of the Series 2008 Bonds and otherwise to carry out, give
effect to and comply with the terms and intent of the Ordinance, this Resolution, the Series 2008
Bonds and the documents approved hereby.
OHS West:2603795611
-6-
86
"
S e c t i o n 1 3 . T h i s R e s o l u t i o n s h a l l t a k e e f f e c t i m m e d i a t e l y u p o n i t s a d o p t i o n a n d
a p p r o v a l .
A P P R O V E D A N D A D O P T E D b y t h e R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n a t
i t s m e e t i n g o n M a y 1 4 , 2 0 0 8 .
A T T E S T :
B y :
C l e r k o f t h e B o a r d o f t h e C o m m i s s i o n
O H S W e s t : 2 6 0 3 7 9 5 6 1 . 8
B y :
C h a i r m a n , B o a r d o f C o m m i s s i o n e r s
- 7 -
8 7
CERTIFICATE OF THE CLERK OF THE BOARD OF THE
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
I, Jennifer Harmon, Clerk of the Board of the Riverside County Transportation
Commission (the "Commission"), hereby certify that the foregoing is a full, true and correct
copy of a resolution duly adopted at a meeting of the governing board of said Commission duly
and regularly held in Riverside, California, on May 14, 2008, of which meeting all of the
members of said Commission had due notice.
I further certify that I have carefully compared the foregoing copy with the original
minutes of said meeting on file and of record in my office; that said copy is a full, true and
correct copy of the original resolution adopted at said meeting and entered in said minutes; and
that said resolution has not been amended, modified, rescinded or revoked in any manner since
the date of its adoption, and the same is now in full force and effect.
I fiuther certify that an agenda of said meeting was posted at least 72 hours before said
meeting at a location in Riverside, California, freely accessible to the public and a brief general
description of the resolution to be adopted at said meeting appeared on said agenda.
IN WITNESS WHEREOF, I have executed this certificate hereto as of this date,
, 2008.
.OHS West.•260379561.8
By
Clerk
-8-
88
I
ATTACHMENT 3
NGKE Draft dated May 6, 2008
PRELIMINARY OFFICIAL STATEMENT, DATED , 2008
"VW ISSUE —BOOK -ENTRY ONLY Ratings for the Series 2008 Bonds (as defined herein):
Moody's: " "
Fitch" "
S&P: " "
See "RATINGS" herein
[DAC Logo]
In the opinion of Orrick, Herrington & Sutcliffe LLP, Bond Counsel to the Commission, based upon an analysis of
existing laws, regulations, rulings and court decisions, and assuming, among other matters, the accuracy of certain
representations and compliance with certain covenants, interest on the Series 2008 Bonds is excluded from gross
income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986 and is exempt
from State of California personal income taxes. In the further opinion of Bond Counsel, interest on the Series 2008
Bonds is not a specific preference item for purposes of the federal individual or corporate alternative minimum
taxes, although Bond Counsel observes that such interest is included in adjusted current earnings when calculating
corporate alternative minimum taxable income. Bond Counsel expresses no opinion regarding any other tax
consequences related to the ownership or disposition of, or the accrual or receipt of interest on, the Series 2008
Bonds. See "TAX MATTERS" herein.$ '
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
Sales Tax Revenue Bonds
(Limited Tax Bonds)
2008 Series A
Initial Initial Long -Term
Bated: Final Maturity Mandatory Rate ending on (but Yield to Initial Mandatory
Date Tender Date excluding) December 1, Tender Date
2009
December 1,
Date of Delivery June 1, 2029 2009 % %
CUSIP No t
The Sales Tax Revenue Bonds described above (the "Series 2008 Bonds") are being issued by the Riverside County
Transportation Commission (the "Commission") to (i) refinance all of the outstanding principal amount of the Commission's Commercial
Paper Notes (Limited Tax Bonds), Series A and Series B, as more particularly described herein (collectively, the "Notes") and all or a
portion of accrued interest thereon, (ii) fund capitalized interest on the Series 2008 Bonds through December 1, 2009, (iii) fund a reserve
fund for the Series 2008 Bonds, and (iv) pay costs of issuance of the Series 2008 Bonds.
The initial Rate Period for the Series 2008 Bonds will be a Long -Term Rate Period and the initial Long -Term Rate Period will be
the period commencing on and including the date of delivery of the Series 2008 Bonds and ending on and excluding December 1, 2009.
The Series 2008 Bonds shall initially bear interest at a rate of % per annum. During the initial Long -Term Rate Period, interest on the
Series 2008 Bonds is payable semi-annually on June 1 and December 1 of each year, commencing on December 1, 2008, and the final
interest payment with respect to the initial Long Term Rate Period shall be paid on December 1, 2009.
On December 1, 2009, the day following the end of the initial Long -Tenn Rate Period, the Series 2008 Bonds will be subject to
redemption, at the option of the Commission, as more fully described herein. In order to synchronize with the effective date of the initial
interest rate swap agreements described herein, the Commission may elect to issue refunding bonds on or about October 1, 2009 to
redeem the Series 2008 Bonds. Such redemption from the proceeds of refunding bonds would occur on December 1, 2009. The Bonds
are not subject to redemption prior to December I, 2009. Any redemption of the Series 2008 Bonds on December 1, 2009 will be at
the Commission's sole discretion, and the Commission will be under no obligation to redeem the Series 2008 Bonds on that date.
If the Commission does not exercise its option to redeem the Series 2008 Bonds on December 1, 2009, there will be a mandatory
tender for purchase of the Series 2008 Bonds on that date (the "Initial Mandatory Tender Date"). On the Initial Mandatory Tender Date,
the Commission will have the right to convert the interest rate on the Series 2008 Bonds to a Daily Rate, Weekly Rate, Commercial Paper
Rate or Fixed Rate, or to establish another Long -Tenn Rate (each such interest rate, an "Interest Rate Determination Method").
The Commission is required under the Indenture to hire remarketing agents which will be required to use their best efforts to
remarket the Series 2008 Bonds on the Initial Mandatory Tender Date. Hthe remarketing agents are unable to remarket all the Series
2008 Bonds on the Initial Mandatory Tender Date, the Series 2008 Bonds will continue to be owned by the then current Holders
and will automatically commence to bear interest at a Weekly Rate of 11% per annum until such time as the Series 2008 Bonds
•re successfully remarketed at an Interest Rate Determination Method. There is no liquidity facility supporting the purchase of
* Preliminary, subject to change.
t CUSIP numbers are provided for convenience of reference only_ Neither the Commission nor the Underwriters
take any responsibility for the accuracy of such numbe6s.
the Series 2008 Bonds on the Initial Mandatory Tender Date, nor is there any plan to provide such a liquidity facility. The Series'
2008 Bonds are initially being issued as fully registered bonds without coupons in the denominations of $5,000 or any integral multiple
thereof. The Series 2008 Bonds will be registered in the name of Cede & Co., as holder of the Series 2008 Bonds and nominee for The
Depository Trust Company ("DTC"), New York, New York. Purchasers will not receive certificates representing their interest in the
Series 2008 Bonds purchased. The principal or redemption price of and interest on the Series 2008 Bonds are payable by wire transfer to
DTC which, in hum, will remit such principal, redemption price or interest to the DTC Participants for subsequent disbursement to the
Beneficial Owners of the Series 2008 Bonds, as more fully discussed herein.
The Series 2008 Bonds will mature on June 1, 2029.
This Official Statement is not intended to provide detailed information with respect to the Series 2008 Bonds (including the
terms of such Series 2008 Bonds) after conversion from the initial Long -Term Rate. There can be no conversion of the interest rate on the
Series 2008 Bonds during the Initial Long -Term Rate Period. Owners and prospective purchasers of the Series 2008 Bonds should not
rely on this Official Statement for information conceming the Series 2008 Bonds in connection with, any conversion of the Series 2008
Bonds to Series 2008 Bonds bearing interest at a rate other than a Long -Term Rate, but should look solely to the offering document to be
used in connection with any such conversion.
The Series 2008 Bonds are special obligations of the Commission payable from and secured solely by a pledge of the Revenues
(which is defined herein and which principally includes the receipts from the imposition in the County of Riverside, California of a'h-
cent sales tax scheduled to take effect July t, 2009 (the "Sales Tax"), less certain administrative fees paid to the California State Board of
Equalization), as described herein. The Sales Tax was approved by more than a two-thirds vote of the electorate of the County of
Riverside on November 5, 2002 and is scheduled to expire on June 30, 2039.
NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE COUNTY OF RIVERSIDE, THE STATE OF
CALIFORNIA OR ANY POLITICAL SUBDIVISION OR PUBLIC AGENCY THEREOF, OTHER THAN THE COMMISSION TO
THE EXTENT OF THE PLEDGE OF THE REVENUES, IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF,
REDEMPTION PREMIUM, IF ANY, OR INTEREST ON THE SERIES 2008 BONDS.
The Series 2008 Bonds are offered when, as and if issued and received by the Underwriters, subject to the approval of validity by
Orrick, Herrington & Sutcliffe LLP, Bond Counsel, and certain other conditions. Certain legal matters will be passed on for the
Commission by Nossaman, Guthner, Knox & Elliott, LLP, Los Angeles, California, as disclosure counsel, and by Best Best & Krieger,
LLP, Riverside, California, the Commission's General Counsel. Certain legal matters will be passed upon for the Underwriters by
Stradling, Yocca, Carlson & Rauth; Newport Beach, California. It is anticipated that the Series 2008 Bonds will be available for delivery
to DTC on or about June 10 , 2008.
Lehman Brothers Banc of America Securities LLC
Dated: , 2008
9.A3.TT.Comm.Bonds.Att 3 POS.DOC
90
"
N o d e a l e r , s a l e s m a n o r a n y o t h e r p e r s o n h a s b e e n a u t h o r i z e d b y t h e R i v e r s i d e C o u n t y
T r a n s p o r t a t i o n C o m m i s s i o n ( t h e " C o m m i s s i o n " ) o r t h e U n d e r w r i t e r s t o g i v e a n y i n f o r m a t i o n o r
t o m a k e a n y s t a t e m e n t s o r r e p r e s e n t a t i o n s , o t h e r t h a n t h o s e c o n t a i n e d i n t h i s O f f i c i a l S t a t e m e n t ,
a n d , i f g i v e n o r m a d e , s u c h o t h e r i n f o r m a t i o n , s t a t e m e n t s o r r e p r e s e n t a t i o n s m u s t n o t b e r e l i e d
u p o n a s h a v i n g b e e n a u t h o r i z e d . T h e i n f o r m a t i o n s e t f o r t h h e r e i n h a s b e e n o b t a i n e d f r o m t h e
C o m m i s s i o n a n d o t h e r s o u r c e s w h i c h a r e b e l i e v e d t o b e r e l i a b l e , b u t i t i s n o t g u a r a n t e e d a s t o
a c c u r a c y o r c o m p l e t e n e s s , a n d i t i s n o t t o b e c o n s t r u e d a s a r e p r e s e n t a t i o n b y t h e U n d e r w r i t e r s .
T h e i n f o r m a t i o n i n t h i s O f f i c i a l S t a t e m e n t i s s u b j e c t t o c h a n g e , a n d n e i t h e r t h e d e l i v e r y o f t h i s
O f f i c i a l S t a t e m e n t n o r a n y s a l e m a d e a f t e r a n y d e l i v e r y s h a l l , u n d e r a n y c i r c u m s t a n c e s , c r e a t e
a n y i m p l i c a t i o n t h a t t h e r e h a s b e e n n o c h a n g e s i n c e t h e d a t e o f t h i s O f f i c i a l S t a t e m e n t . T h i s
O f f i c i a l S t a t e m e n t d o e s n o t c o n s t i t u t e a n o f f e r t o s e l l o r s o l i c i t a t i o n o f a n o f f e r t o b u y a n y o f t h e
S e r i e s 2 0 0 8 B o n d s i n a n y j u r i s d i c t i o n i n w h i c h s u c h o f f e r o r s o l i c i t a t i o n a s n o t a u t h o r i z e d , o r i n
w h i c h a n y p e r s o n m a k i n g s u c h o f f e r o r s o l i c i t a t i o n i s n o t q u a l i f i e d t o d o s o , o r t o a n y p e r s o n t o
w h o m i t i s u n l a w f u l t o m a k e s u c h o f f e r o r s o l i c i t a t i o n i n s u c h j u r i s d i c t i o n .
T h i s O f f i c i a l S t a t e m e n t i s n o t t o b e c o n s t r u e d a s a c o n t r a c t w i t h t h e P u r c h a s e r s o f t h e
S e r i e s 2 0 0 8 B o n d s . S t a t e m e n t s c o n t a i n e d i n t h i s O f f i c i a l S t a t e m e n t w h i c h i n v o l v e e s t i m a t e s ,
f o r e c a s t s o r m a t t e r s o f o p i n i o n w h e t h e r o r n o t e x p r e s s l y s o d e s c r i b e d h e r e i n , a r e i n t e n d e d s o l e l y
a s s u c h a n d a r e n o t t o b e c o n s t r u e d a s r e p r e s e n t a t i o n s o f f a c t .
T H E P R I C E S A T W H I C H T H E S E R I E S 2 0 0 8 B O N D S A R E O F F E R E D T O T H E
P U B L I C B Y T H E U N D E R W R I T E R S ( A N D T H E Y I E L D S R E S U L T I N G T H E R E F R O M )
M A Y V A R Y F R O M T H E I N I T I A L P U B L I C O F F E R I N G P R I C E S O R Y I E L D S A P P E A R I N G
O N T H E C O V E R P A G E H E R E O F . I N A D D I T I O N , T H E U N D E R W R I T E R S M A Y A L L O W
C O N C E S S I O N S O R D I S C O U N T S F R O M S U C H I N I T I A L P U B L I C O F F E R I N G P R I C E S T O
D E A L E R S A N D O T H E R S . I N C O N N E C T I O N W I T H T H E O F F E R I N G O F T H E S E R I E S
2 0 0 8 B O N D S , T H E U N D E R W R I T E R S M A Y E F F E C T T R A N S A C T I O N S T H A T S T A B I L I Z E
O R M A I N T A I N T H E M A R K E T P R I C E O F T H E S E R I E S 2 0 0 8 B O N D S A T A L E V E L
A B O V E T H A T W H I C H M I G H T O T H E R W I S E P R E V A I L I N T H E O P E N M A R K E T . S U C H
S T A B I L I Z I N G , I F C O M M E N C E D , M A Y B E D I S C O N T I N U E D A T A N Y T I M E .
I N M A K I N G A N I N V E S T M E N T D E C I S I O N I N V E S T O R S M U S T R E L Y O N T H E I R
O W N E X A M I N A T I O N C O N C E R N I N G T H E C O M M I S S I O N A N D T H E T E R M S O F T H E
O F F E R I N G , I N C L U D I N G T H E M E R I T S A N D R I S K S I N V O L V E D . T H E S E S E C U R I T I E S
H A V E N O T B E E N R E C O M M E N D E D B Y A N Y F E D E R A L O R S T A T E S E C U R I T I E S
C O M M I S S I O N O R R E G U L A T O R Y C O M M I S S I O N . F U R T H E R M O R E , T H E F O R E G O I N G
A U T H O R I T I E S H A V E N O T C O N F I R M E D T H E A C C U R A C Y O R D E T E R M I N E D T H E
A D E Q U A C Y O F T H I S D O C U M E N T . A N Y R E P R E S E N T A T I O N T O T H E C O N T R A R Y I S
A C R I M I N A L O F F E N S E .
T h e U n d e r w r i t e r s h a v e p r o v i d e d t h e f o l l o w i n g s e n t e n c e f o r i n c l u s i o n i n t h i s O f f i c i a l
S t a t e m e n t . T h e U n d e r w r i t e r s h a v e r e v i e w e d t h e i n f o r m a t i o n i n t h i s O f f i c i a l S t a t e m e n t i n
a c c o r d a n c e w i t h , a n d a s p a r t o f , t h e i r r e s p o n s i b i l i t y t o i n v e s t o r s u n d e r t h e f e d e r a l s e c u r i t i e s l a w
a s a p p l i e d t o t h e f a c t s a n d c i r c u m s t a n c e s o f t h i s t r a n s a c t i o n , b u t t h e U n d e r w r i t e r s d o n o t
g u a r a n t e e t h e a c c u r a c y o r c o m p l e t e n e s s o f s u c h i n f o r m a t i o n . T h e i n f o r m a t i o n a n d e x p r e s s i o n o f
o p i n i o n h e r e i n a r e s u b j e c t t o c h a n g e w i t h o u t n o t i c e a n d n e i t h e r t h e d e l i v e r y o f t h i s O f f i c i a l
S t a t e m e n t n o r a n y s a l e m a d e h e r e u n d e r s h a l l , u n d e r a n y c i r c u m s t a n c e s , c r e a t e a n y i m p l i c a t i o n
t h a t t h e r e h a s b e e n n o c h a n g e i n a f f a i r s o f t h e C o m m i s s i o n s i n c e t h e d a t e h e r e o f . T h i s O f f i c i a l
9 1
Statement, including any supplement or amendment hereto, is intended to be deposited with one
or more repositories.
FORWARD -LOOKING STATEMENTS
Certain statements included or incorporated by reference in this Official Statement
constitute forward -looking statements. Such statements are generally identifiable by the
terminology used such as "plan," "expect," "estimate," "project, "budget" or other similar
words. The achievement of certain results or other expectations contained in such forward-
looking statements involve known and unknown risks, uncertainties and other factors which may
cause actual results, performance or achievements described to be materially different from any
future results, performance or achievements expressed or implied by such forward -looking
statements. No assurance is given that actual results will meet the forecasts of the Commission
in any way, regardless of the level of optimism communicated in the information. The
Commission is not obligated to issue any updates or revisions to the forward -looking statements
if or when its expectations, or events, conditions or circumstances on which such statements are
based occur.
THE ACHIEVEMENT OF CERTAIN RESULTS OR OTHER EXPECTATIONS
CONTAINED IN SUCH FORWARD LOOKING STATEMENTS INVOLVE KNOWN AND
UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE
ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS DESCRIBED TO BE
MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR
ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD -LOOKING
STATEMENTS. THE COMMISSION DOES NOT PLAN TO ISSUE ANY UPDATES OR
REVISIONS TO THOSE FORWARD -LOOKING STATEMENTS IF OR WHEN ANY OF ITS
EXPECTATIONS, OR EVENTS, CONDITIONS OR CIRCUMSTANCES ON WHICH SUCH
STATEMENTS ARE BASED OCCUR, OTHER THAN AS DESCRIBED UNDER
"CONTINUING DISCLOSURE" HEREIN.
92
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R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N C O M M I S S I O N
B O A R D M E M B E R S
J e f f S t o n e , C h a i r
B o b M a g e e , 1 s t V i c e C h a i r B o b B u s t e r , 2 n d V i c e C h a i r
J o h n F . T a v a g l i o n e M i c h a e l H . W i l s o n
R o y W i l s o n T e r r y H e n d e r s o n
M a r i o n A s h l e y F r a n k W e s t
B o b B o t t s R i c k G i b b s
R o g e r B e r g F r a n k H a l l
J o s e p h D e C o n i n c k D i c k K e l l y
J o h n C h l e b n i k G i n n y F o a t
M a r y C r a t o n D a r y l B u s c h
G r e g o r y S . P e t t i s G o r d o n M o l l e r
E d u a r d o G a r c i a S t e v e A d a m s
J e f f M i l l e r C h r i s C a r l s o n
Y v o n n e P a r k s R o n R o b e r t s
R o b i n L o w e M i k e P e r o v i c h
P a t r i c k J . M u l l a n y
M A N A G E M E N T
E x e c u t i v e D i r e c t o r
A n n e M a y e r
D e p u t y E x e c u t i v e D i r e c t o r
J o h n S t a n d i f o r d
C h i e f F i n a n c i a l O f f i c e r
T h e r e s i a T r e v i n o
S P E C I A L S E R V I C E S
F i n a n c i a l A d v i s o r
F i e l d m a n , R o l a p p & A s s o c i a t e s
I r v i n e , C a l i f o r n i a
B o n d C o u n s e l
O r r i c k , H e r r i n g t o n & S u t c l i f f e L L P
S a n F r a n c i s c o , C a l i f o r n i a
T r u s t e e
U . S . B a n k N a t i o n a l A s s o c i a t i o n
L o s A n g e l e s , C a l i f o r n i a
9 3
i
TABLE OF CONTENTS
Page
INTRODUCTION 1
General 1
Authority for Issuance 1
Purpose 1
Security 1
Continuing Disclosure 2
References 2
THE SERIES 2008 BONDS 3
General 3
Initial Rate Period 4
Conversion of Interest Rate Determination Method After the Initial Long -Term Rate
Period 5
Long -Term Rate Period 7
Payment of Principal and Interest 9
Redemption Terms of the Series 2008 Bonds 9
Purchase In Lieu of Redemption 11
General Redemption Provisions 11
Mandatory Tender Provisions 12
PLAN OF FINANCE 12
APPLICATION OF SERIES 2008 BOND PROCEEDS 13
SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2008 BONDS 14
Limited Obligation 14
Pledge of Revenues 14
Revenue Fund; Allocation of Revenues 14
Bond Reserve Fund 16
Additional Bonds and Parity Obligations 17
Initial Swap Agreements 18
Subordinate Obligations 19
THE SALES TAX 19
General 19
Collection of Sales Tax Revenues 20
1988 Sales Tax Revenues 21
RIVERSIDE COUNTY TRANSPORTATION COMMISSION 22
General 22
Commissioners 23
Executive Staff 23
THE TRANSPORTATION EXPENDITURE PLAN 24
INVESTMENT CONSIDERATIONS 24
Economy of the County and the State 24
No Liquidity Facility 25
The Sales Tax 25
Proposition 218 25
Further. Initiatives 26
Loss of Tax Exemption 26
94
FINANCIAL STATEMENTS 26
LITIGATION 26
TAX MATTERS 26
CERTAIN LEGAL MATTERS 28
RATINGS 29
UNDERWRITING 29
FINANCIAL ADVISOR 29
CONTINUING DISCLOSURE 29
MISCELLANEOUS 30
APPENDIX A
APPENDIX B
APPENDIX C
APPENDIX D
APPENDIX E
APPENDIX F
Commission Audited Financial Statements For Fiscal Year
Ended June 30, 2007 A-1
County Demographic and Economic Information B-1
Summary of Certain Provisions of the Indenture C-1
Book -Entry System D-1
Proposed Form of Bond Counsel Opinion E-1
Proposed Form of Continuing Disclosure Certificate F-1.
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O F F I C I A L S T A T E M E N T
R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N C O M M I S S I O N
S A L E S T A X R E V E N U E B O N D S
( L i m i t e d T a x B o n d s )
2 0 0 8 S e r i e s A
I N T R O D U C T I O N
G e n e r a l
T h i s O f f i c i a l S t a t e m e n t , w h i c h i n c l u d e s t h e c o v e r p a g e a n d t h e a p p e n d i c e s h e r e t o , s e t s
f o r t h c e r t a i n i n f o r m a t i o n i n c o n n e c t i o n w i t h t h e o f f e r i n g b y t h e R i v e r s i d e C o u n t y T r a n s p o r t a t i o n
C o m m i s s i o n ( t h e " C o m m i s s i o n ' ) o f $ * p r i n c i p a l a m o u n t o f R i v e r s i d e C o u n t y
T r a n s p o r t a t i o n C o m m i s s i o n S a l e s T a x R e v e n u e B o n d s ( L i m i t e d T a x B o n d s ) , 2 0 0 8 S e r i e s A ( t h e
" S e r i e s 2 0 0 8 B o n d s " ) .
A u t h o r i t y f o r I s s u a n c e
T h e S e r i e s 2 0 0 8 B o n d s a r e b e i n g i s s u e d b y t h e C o m m i s s i o n u n d e r a n d p u r s u a n t t o t h e
R i v e r s i d e C o u n t y T r a n s p o r t a t i o n S a l e s T a x A c t , b e i n g D i v i s i o n 2 5 o f t h e P u b l i c U t i l i t i e s C o d e o f
t h e S t a t e o f C a l i f o r n i a ( S e c t i o n 2 4 0 0 0 0 e t s e q . ) ( t h e " A c t " ) , t h e T r a n s p o r t a t i o n E x p e n d i t u r e P l a n
a n d R e t a i l T r a n s a c t i o n a n d U s e T a x O r d i n a n c e , a d o p t e d b y t h e C o m m i s s i o n o n M a y 8 , 2 0 0 2 a n d
a p p r o v e d b y a t l e a s t t w o - t h i r d s o f e l e c t o r s v o t i n g o n s u c h p r o p o s i t i o n i n t h e N o v e m b e r 5 , 2 0 0 2
e l e c t i o n , a n d a n y a m e n d m e n t s o r e x t e n s i o n s t h e r e t o ( c o l l e c t i v e l y , a n d t o g e t h e r w i t h t h e A c t , t h e
" L a w " ) , a n I n d e n t u r e , d a t e d a s o f J u n e 1 , 2 0 0 8 ( t h e " 2 0 0 8 I n d e n t u r e " ) , b e t w e e n t h e C o m m i s s i o n
a n d U . S . B a n k N a t i o n a l A s s o c i a t i o n ( t h e " T r u s t e e " ) , a n d t h e F i r s t S u p p l e m e n t a l I n d e n t u r e , d a t e d
a s o f J u n e 1 , 2 0 0 8 ( t h e " F i r s t S u p p l e m e n t a l I n d e n t u r e " a n d , c o l l e c t i v e l y w i t h t h e 2 0 0 8 I n d e n t u r e ,
t h e " I n d e n t u r e " ) . A l l c a p i t a l i z e d t e r m s u s e d a n d n o t o t h e r w i s e d e f i n e d h e r e i n s h a l l h a v e t h e
m e a n i n g s a s s i g n e d t o s u c h t e r m s i n " A P P E N D I X C - S U M M A R Y O F C E R T A I N P R O V I S I O N S
O F T H E I N D E N T U R E , " o r , i f n o t d e f i n e d t h e r e i n , i n t h e I n d e n t u r e .
P u r p o s e
T h e S e r i e s 2 0 0 8 B o n d s a r e b e i n g i s s u e d i n o r d e r t o ( i ) r e f i n a n c e a l l o f t h e o u t s t a n d i n g
p r i n c i p a l a m o u n t o f t h e C o m m i s s i o n ' s C o m m e r c i a l P a p e r N o t e s ( L i m i t e d T a x B o n d s ) , S e r i e s A
a n d S e r i e s B , a n d a l l o r a p o r t i o n o f t h e a c c r u e d i n t e r e s t t h e r e o n , a s m o r e p a r t i c u l a r l y d e s c r i b e d
h e r e i n ( c o l l e c t i v e l y , t h e " N o t e s " ) , ( i i ) f u n d c a p i t a l i z e d i n t e r e s t o n t h e S e r i e s 2 0 0 8 B o n d s t o
D e c e m b e r 1 , 2 0 0 9 , ( i i i ) f u n d a r e s e r v e f u n d f o r t h e S e r i e s 2 0 0 8 B o n d s , a n d ( i v ) p a y c o s t s o f
i s s u a n c e o f t h e S e r i e s 2 0 0 8 B o n d s .
S e c u r i t y
T h e S e r i e s 2 0 0 8 B o n d s a r e l i m i t e d o b l i g a t i o n s o f t h e C o m m i s s i o n p a y a b l e f r o m a n d
s e c u r e d b y c e r t a i n r e v e n u e s ( t h e " R e v e n u e s " ) p l e d g e d u n d e r t h e I n d e n t u r e , i n c l u d i n g a p l e d g e o f
# P r e l i m i n a r y , s u b j e c t t o c h a n g e .
l
9 6
revenues (the "Sales Tax Revenues") derived from a '/z-cent sales tax scheduled to take effect
July 1, 2009 (the "Sales Tax"), imposed in accordance with the Law and the California
Transactions and Use Tax Law (Revenue and Taxation Code Section 7251 et seq.), net of an
administrative fee paid to the California State Board of Equalization (the "Board of
Equalization") in connection with the collection and disbursement of the Sales Tax. The Sales
Tax was approved by more than a two-thirds vote of the electorate of the County of Riverside on
November 5, 2002 and is scheduled to expire on June 30, 2039.
Additional Parity Obligations may hereafter be issued and paid from the Sales Tax
Revenues. See "SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2008
BONDS - Additional Bonds and Parity Obligations" and "PLAN OF FINANCE" herein.
A 2008 Bonds Reserve Fund is established under the Indenture. The 2008 Bonds
Reserve Requirement under the Indenture with respect to the Series 2008 Bonds in the amount of
$ will be funded from the proceeds of the sale of the Series 2008 Bonds.. See
"SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2008 BONDS - Bond
Reserve Fund," and "APPENDIX C - SUMMARY OF CERTAIN PROVISIONS OF THE
INDENTURE - Definitions" herein.
NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE
COUNTY OF RIVERSIDE, THE STATE OF CALIFORNIA OR ANY POLITICAL
SUBDIVISION OR PUBLIC AGENCY THEREOF, OTHER THAN THE COMMISSION TO
THE EXTENT OF THE PLEDGE OF THE REVENUES, IS PLEDGED TO THE PAYMENT
OF THE SERIES 2008 BONDS.
Continuing Disclosure
The Commission has covenanted for the benefit of the owners and beneficial owners of
the Series 2008 Bonds to provide certain financial information and operating data relating to the
Commission by not later than 210 days following the end of the Commission's Fiscal Year
(presently June 30), commencing with the report for the 2007-08 Fiscal Year, and to provide
notices of occurrence of certain enumerated events, if material. See "CONTINUING
DISCLOSURE" herein and "APPENDIX F - PROPOSED FORM OF CONTINUING
DISCLOSURE CERTIFICATE."
References
The descriptions and summaries of various documents hereinafter set forth do not purport
to be comprehensive or definitive, and reference is made to each such document for the complete
details of all terms and conditions. All statements herein are qualified in their entirety by
reference to each such document, copies of which are available for inspection at the offices of
the Commission.
2
97
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T H E S E R I E S 2 0 0 8 B O N D S
G e n e r a l
T h e S e r i e s 2 0 0 8 B o n d s a r e b e i n g i s s u e d i n t h e a g g r e g a t e p r i n c i p a l a m o u n t o f
$ ` t o ( i ) r e f i n a n c e a l l o f t h e o u t s t a n d i n g p r i n c i p a l a m o u n t o f t h e N o t e s a n d p a y a l l
o r a p o r t i o n o f t h e a c c r u e d i n t e r e s t t h e r e o n , ( i i ) f u n d c a p i t a l i z e d i n t e r e s t o n t h e S e r i e s 2 0 0 8
B o n d s t o D e c e m b e r 1 , 2 0 0 9 , ( i i i ) f u n d a r e s e r v e f u n d f o r t h e S e r i e s 2 0 0 8 B o n d s , a n d ( i v ) p a y
c o s t s o f i s s u a n c e o f t h e S e r i e s 2 0 0 8 B o n d s .
T h e f o l l o w i n g i s a s u m m a r y o f c e r t a i n p r o v i s i o n s o f t h e S e r i e s 2 0 0 8 B o n d s . R e f e r e n c e i s
m a d e t o t h e S e r i e s 2 0 0 8 B o n d s f o r t h e c o m p l e t e t e x t t h e r e o f a n d t o t h e I n d e n t u r e f o r a m o r e
d e t a i l e d d e s c r i p t i o n o f t h e s e p r o v i s i o n s . T h e d i s c u s s i o n h e r e i n i s q u a l i f i e d b y s u c h r e f e r e n c e .
S e e " A P P E N D I X C S U M M A R Y O F C E R T A I N P R O V I S I O N S O F T H E I N D E N T U R E "
h e r e i n .
A s u s e d h e r e i n , t h e t e r m " B o n d s " m e a n s a n y B o n d s , i n c l u d i n g t h e S e r i e s 2 0 0 8 B o n d s ,
i s s u e d p u r s u a n t t o t h e I n d e n t u r e . F u r t h e r , " S e r i e s " m e a n s B o n d s d e s i g n a t e d a s b e i n g o f t h e s a m e
S e r i e s a n d " V a r i a b l e I n t e r e s t R a t e " m e a n s a D a i l y R a t e , W e e k l y R a t e , C o m m e r c i a l P a p e r R a t e
a n d a L o n g - T e r m R a t e .
T h e S e r i e s 2 0 0 8 B o n d s w i l l b e i s s u e d i n t h e a g g r e g a t e p r i n c i p a l a m o u n t a n d w i l l m a t u r e
o n t h e M a t u r i t y D a t e s h o w n o n t h e p a g e s i m m e d i a t e l y s u c c e e d i n g t h e c o v e r p a g e o f t h i s O f f i c i a l
S t a t e m e n t . T h e S e r i e s 2 0 0 8 B o n d s w i l l b e d a t e d t h e d a t e o f o r i g i n a l d e l i v e r y . T h e S e r i e s 2 0 0 8
B o n d s s h a l l b e a r i n t e r e s t o n t h e u n p a i d p r i n c i p a l a m o u n t t h e r e o f a s d e s c r i b e d b e l o w .
A t n o t i m e s h a l l a n y S e r i e s 2 0 0 8 B o n d s b e a r i n t e r e s t a t a r a t e i n e x c e s s o f t h e M a x i m u m
I n t e r e s t R a t e , w h i c h i s d e f i n e d a s t h e l e s s e r o f : ( i ) 1 2 % p e r a n n u m o r ( i i ) t h e m a x i m u m r a t e o f
i n t e r e s t t h a t m a y l e g a l l y b e p a i d o n t h e S e r i e s 2 0 0 8 B o n d s .
T h e D e p o s i t o r y T r u s t C o m p a n y , o r D T C , w i l l a c t a s t h e i n i t i a l s e c u r i t i e s d e p o s i t o r y f o r
t h e S e r i e s 2 0 0 8 B o n d s , w h i c h w i l l b e i s s u e d i n i t i a l l y p u r s u a n t t o a b o o k - e n t r y o n l y s y s t e m . S e e
" A P P E N D I X D B O O K - E N T R Y S Y S T E M " h e r e i n . U n d e r t h e I n d e n t u r e , t h e C o m m i s s i o n
m a y a p p o i n t a s u c c e s s o r s e c u r i t i e s d e p o s i t o r y t o D T C f o r t h e S e r i e s 2 0 0 8 B o n d s . T h e H o l d e r s o f
t h e S e r i e s 2 0 0 8 B o n d s h a v e n o r i g h t t o a b o o k - e n t r y o n l y s y s t e m f o r t h e S e r i e s 2 0 0 8 B o n d s . T h e
i n f o r m a t i o n u n d e r t h i s c a p t i o n , " T H E S E R I E S 2 0 0 8 B O N D S " , i s s u b j e c t i n i t s e n t i r e t y t o t h e
p r o v i s i o n s d e s c r i b e d b e l o w u n d e r " A P P E N D I X D B O O K - E N T R Y S Y S T E M " w h i l e t h e S e r i e s
2 0 0 8 B o n d s a r e i n t h e b o o k - e n t r y o n l y s y s t e m .
T h i s O f f i c i a l S t a t e m e n t i s n o t i n t e n d e d t o p r o v i d e i n f o r m a t i o n w i t h r e s p e c t t o t h e
S e r i e s 2 0 0 8 B o n d s ( i n c l u d i n g t h e t e r m s o f s u c h S e r i e s 2 0 0 8 B o n d s ) a f t e r c o n v e r s i o n f r o m
t h e i n i t i a l L o n g - T e r m R a t e . O w n e r s a n d p r o s p e c t i v e p u r c h a s e r s o f t h e S e r i e s 2 0 0 8 B o n d s
s h o u l d n o t r e l y o n t h i s O f f i c i a l S t a t e m e n t f o r i n f o r m a t i o n c o n c e r n i n g t h e S e r i e s 2 0 0 8 B o n d s
i n c o n n e c t i o n w i t h a n y c o n v e r s i o n o f t h e S e r i e s 2 0 0 8 B o n d s t o S e r i e s 2 0 0 8 B o n d s b e a r i n g
i n t e r e s t a t a r a t e o t h e r t h a n a L o n g - T e r m R a t e , b u t s h o u l d l o o k s o l e l y t o t h e o f f e r i n g
d o c u m e n t t o b e u s e d i n c o n n e c t i o n w i t h a n y s u c h c o n v e r s i o n .
* P r e l i m i n a r y , s u b j e c t t o c h a n g e .
3
9 8
Initial Rate Period
The initial Rate Period for the Series 2008 Bonds will be a Long -Term Rate Period and
the initial Long -Term Rate Period will be the period commencing on and including the date of
delivery of the Series 2008 Bonds and ending on and excluding December 1, 2009, the last day
of the initial Long -Term Rate Period. The Series 2008 Bonds shall initially bear interest at the
rate as set forth on cover hereof. During the initial Long -Term Rate Period, interest on the Series
2008 Bonds is payable semi-annually on June 1 and December 1 of each year, commencing on
December 1, 2008, and the final interest payment with respect to the initial Long -Term Rate
Period will be paid on December 1, 2009.
On December 1, 2009, the day following the end of the initial Long -Term Rate Period,
the Series 2008 Bonds will be subject to redemption, at the option of the Commission, in whole
or in part, at a redemption price equal to the amount of Series 2008 Bonds called for redemption,
plus accrued interest, without premium. See "Redemption Terms of the Series 2008 Bonds"
below. In order to synchronize with the effective date of the Initial Swap Agreements (described
under "SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2008 BONDS — Initial
Swap Agreements" below), the Commission may elect to issue refunding bonds on or about
October 1, 2009 to redeem the Series 2008 Bonds. Such redemption from the proceeds of
refunding bonds would occur on December 1, 2009. If the Commission exercises its option to
redeem the Series 2008 Bonds on December 1, 2009, the Trustee will be required to send notice
of redemption to DTC not less than 10 nor more than 90 days prior to such date. Any redemption
of all or some of the Series 2008 Bonds on December 1, 2009 will be at the Commission's sole
discretion, and the Commission will be under no obligation to redeem the Series 2008 Bonds on
that date.
If the Commission does not exercise its option to redeem the Series 2008 Bonds on
December 1, 2009, there will be a mandatory tender for purchase of the Series 2008 Bonds on
such date (the "Initial Mandatory Tender Date"). On the Initial Mandatory Tender Date, the -
Commission will have the right to convert the interest rate on the Series 2008 Bonds to a Daily
Rate, Weekly Rate, Commercial Paper Rate or Fixed Rate, or to establish another Long -Tenn
Rate (each such interest rate, an "Interest Rate Determination Method"). To exercise such right,
the Commission will be required to deliver notice to the Trustee and the other Notice Parties in
accordance with the Indenture. Upon receipt of such notice and not less than 15 days prior to the
Initial Mandatory Tender Date, the Trustee will be required to give notice to DTC of the
proposed conversion or the proposed establishment of a new Long -Term Rate.
The Commission is required under the Indenture to hire one or more remarketing agents
which will be required to use their best efforts to remarket the Series 2008 Bonds on the Initial
Mandatory Tender Date. If, prior to the Initial Mandatory Tender Date, the Commission has not
given notice to the Trustee of the proposed conversion to a new Interest Rate Determination
Method or the proposed establishment of another Long -Term Rate at the time required by the
Indenture, or if the conditions to the effectiveness of such conversion or of such Long -Term Rate
set forth in the Indenture are not satisfied, including as a result of the remarketing agents failing
to remarket all the Series 2008 Bonds on the Initial Mandatory Tender Date, then on the Initial
Mandatory Tender Date the Series 2008 Bonds will automatically commence to bear interest at a
Weekly Rate of 11% per annum. The Series 2008 Bonds will continue to bear interest at a
Weekly Rate of 11% per annum until such time as the Series 2008 Bonds are successfully
4
99
"
"
"
r e m a r k e t e d a t a n I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d i n a c c o r d a n c e w i t h t h e I n d e n t u r e . D u r i n g
s u c h W e e k l y R a t e P e r i o d , t h e S e r i e s 2 0 0 8 B o n d s w i l l n o t b e s u b j e c t t o o p t i o n a l t e n d e r , a n d
n o t i c e o f C o n v e r s i o n t o a n o t h e r I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d m a y b e g i v e n 5 B u s i n e s s
D a y s p r i o r t o t h e C o n v e r s i o n D a t e . S e e " L o n g - T e r m R a t e P e r i o d " h e r e i n . A l s o s u b j e c t t o
r e d e m p t i o n f r o m r e f u n d i n g b o n d s o r o t h e r s o u r c e s a n y t i m e i n t h i s p e r i o d .
C o n v e r s i o n o f I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d A f t e r t h e I n i t i a l L o n g - T e r m R a t e
P e r i o d
R i g h t o f C o n v e r s i o n . A f t e r t h e i n i t i a l L o n g - T e r m R a t e P e r i o d , t h e S e r i e s 2 0 0 8 B o n d s a r e
s u b j e c t t o c o n v e r s i o n f r o m o n e I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d t o a n o t h e r f r o m t i m e t o t i m e
b y t h e C o m m i s s i o n , w i t h s u c h r i g h t t o b e e x e r c i s e d b y d e l i v e r y o f a C o n v e r s i o n N o t i c e t o t h e
N o t i c e P a r t i e s f o r t h e S e r i e s 2 0 0 8 B o n d s a s f o l l o w s : ( 1 ) a t l e a s t t w o B u s i n e s s D a y s p r i o r t o t h e
f i f t e e n t h d a y p r e c e d i n g t h e e f f e c t i v e d a t e o f s u c h p r o p o s e d C o n v e r s i o n , i n t h e e v e n t o f a
C o n v e r s i o n t o a D a i l y R a t e , W e e k l y R a t e o r C o m m e r c i a l P a p e r R a t e ; a n d ( 2 ) a t l e a s t t h r e e
B u s i n e s s D a y s p r i o r t o t h e f i f t e e n t h d a y p r e c e d i n g t h e e f f e c t i v e d a t e o f s u c h p r o p o s e d
C o n v e r s i o n , i n t h e e v e n t o f a C o n v e r s i o n t o a L o n g - T e r m R a t e o r a F i x e d R a t e .
T h e d a t e o f t h e p r o p o s e d C o n v e r s i o n m u s t b e a d a t e o n w h i c h t h e S e r i e s 2 0 0 8 B o n d s a r e
s u b j e c t t o m a n d a t o r y t e n d e r .
T h e C o n v e r s i o n N o t i c e m u s t b e a c c o m p a n i e d b y ( i ) a n O p i n i o n o f B o n d C o u n s e l s t a t i n g
t h a t t h e C o n v e r s i o n i s a u t h o r i z e d a n d p e r m i t t e d u n d e r t h e I n d e n t u r e a n d w i l l n o t , i n a n d o f i t s e l f ,
a d v e r s e l y a f f e c t t h e T a x - E x e m p t s t a t u s o f t h e i n t e r e s t o n t h e S e r i e s 2 0 0 8 B o n d s , a n d ( i i ) a n o t i c e
o f a n y 2 0 0 8 L i q u i d i t y F a c i l i t y o r a n y 2 0 0 8 C r e d i t E n h a n c e m e n t , i f a t t h e s a m e t i m e a s t h e S e r i e s
2 0 0 8 B o n d s a r e b e i n g c o n v e r t e d t h e r e w i l l b e a n y 2 0 0 8 L i q u i d i t y F a c i l i t y o r 2 0 0 8 C r e d i t
E n h a n c e m e n t w i t h r e s p e c t t o t h e S e r i e s 2 0 0 8 B o n d s .
N o C o n v e r s i o n t o a n e w I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d m a y t a k e e f f e c t u n d e r t h e
I n d e n t u r e u n l e s s e a c h o f t h e f o l l o w i n g c o n d i t i o n s s h a l l h a v e b e e n s a t i s f i e d :
( i ) t h e T r u s t e e s h a l l h a v e r e c e i v e d a F a v o r a b l e O p i n i o n o f B o n d C o u n s e l w i t h
r e s p e c t t o s u c h C o n v e r s i o n ;
( i i ) a l l S e r i e s 2 0 0 8 B o n d s a r e s u c c e s s f u l l y p u r c h a s e d o r d e e m e d p u r c h a s e d
f r o m r e m a r k e t i n g p r o c e e d s o r f r o m f u n d s p r o v i d e d b y a 2 0 0 8 L i q u i d i t y P r o v i d e r , i f a n y , a n d
r e m a r k e t e d i n t h e n e w I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d o n t h e C o n v e r s i o n D a t e ;
( i i i ) i n t h e c a s e o f a C o n v e r s i o n t o a D a i l y R a t e , W e e k l y R a t e o r C o m m e r c i a l
P a p e r R a t e , t h e 2 0 0 8 L i q u i d i t y F a c i l i t y m u s t c o v e r p r i n c i p a l p l u s a c c r u e d i n t e r e s t , c a l c u l a t e d a s
p r o v i d e d i n t h e I n d e n t u r e ; a n d
( i v ) s u c h o t h e r c o n d i t i o n s a s a r e s p e c i f i e d i n t h e I n d e n t u r e .
O n t h e C o n v e r s i o n D a t e , t h e C o m m i s s i o n m a y , a t i t s s o l e o p t i o n , p u r c h a s e S e r i e s 2 0 0 8 B o n d s
n o t r e m a r k e t e d t o o t h e r i n v e s t o r s , b u t i t w i l l b e u n d e r n o o b l i g a t i o n t o d o s o .
S e e " A P P E N D I X C S U M M A R Y O F C E R T A I N P R O V I S I O N S O F T H E
I N D E N T U R E " h e r e i n .
5
1 0 0
Conversion to a different Interest Rate Determination Method requires that all Series
2008 Bonds must be tendered for purchase on the Conversion Date. See "Mandatory Tender
Provisions" below.
Notice of Conversion to DTC and Beneficial Owners. Upon receipt of a Conversion
Notice, as soon as possible, but in any event not less than 15 days prior to the proposed
Conversion Date, the Trustee is to give notice of the proposed Conversion to DTC by first-class
mail. Conveyance of notices and other communications by DTC to DTC Direct Participants, by
DTC Direct Participants to DTC Indirect Participants, and by DTC Direct Participants and DTC
Indirect Participants to Beneficial Owners of Series 2008 Bonds will be governed by
arrangements among them, and the Commission and the Trustee will not have any responsibility
or obligation to send a Conversion Notice to Beneficial Owners of Series 2008 Bonds.
Rescission of Notice of Conversion. Notwithstanding anything in the Indenture to the
contrary, the Commission may rescind any previously given Conversion Notice by giving
written notice thereof to the Notice Parties two or more Business Days prior to the proposed
Conversion Date. If the Trustee receives notice of such rescission prior to the time the Trustee
has given notice of the proposed Conversion to DTC, then the Conversion Notice previously
delivered by the Commission shall be of no force and effect. If the Trustee receives notice from
the Commission of such rescission after the Trustee has given notice of the proposed Conversion
to DTC, then the Series 2008 Bonds shall continue to be subject to mandatory tender for
purchase on the proposed Conversion Date (unless, prior to the proposed Conversion Date, the
Series 2008 Bonds were in a Long -Term Rate Period for which there was no Liquidity Facility)
and the Rate Period for the Series 2008 Bonds shall automatically adjust to, or continue as, a
Weekly Rate Period on the proposed Conversion Date.
Failure to Convert. The Indenture includes provisions setting forth the procedures and
conditions for the exercise by the Commission of its right of conversion of Series 2008 Bonds
from one Interest Rate Determination Method to another, including the conditions described
above under "— Right of Conversion'. Under certain circumstances, a planned conversion may
not be completed. However, once a notice of conversion is provided to DTC as described above,
all Series 2008 Bonds must be tendered for purchase (whether or not the planned conversion is
completed, unless the planned conversion is from a Long -Term Rate Period for which there is no
Liquidity Facility and the conversion is not completed, in which case the tender will be
cancelled).
The Indenture provides that a failed conversion of Series 2008 Bonds to another Interest
Rate Determination Method means that the Series 2008 Bonds will continue to bear interest at
the Interest Rate Determination Method in effect prior to the proposed Conversion Date (as if no
proceedings for Conversion had taken place) and the rate of interest thereon shall be determined
on the proposed Conversion Date. If the failed conversion is due to insufficient funds to purchase
all Series 2008 Bonds (from remarketing proceeds or from funds provided by a 2008 Liquidity
Provider, if any), that interest rate is required by the Indenture to be the lesser of the SIFMA
Swap Index plus 3% and the Maximum Interest Rate (unless the conditions described below
under "Long -Term Rate Period — End of Long -Term Rate" apply, in which case the interest rate
is required to be 11% per annum) from the date of such failed purchase until all Series 2008
Bonds are purchased as required in accordance with the Indenture, and all tendered Series 2008
Bonds will be returned to their respective owners.
6
•
•
101
i
Long -Term Rate Period
Conversion to or Continuation of Long -Term Rate. During a Long -Term Rate Period
after the initial Long -Term Rate Period, the Series 2008 Bonds shall bear interest at the Long -
Term Rate. The Interest Rate Determination Method for the Series 2008 Bonds may be
converted by the Commission to a Long -Term Rate from another Interest Rate Determination
Method, by the Commission's delivery of a Conversion Notice to the Notice Parties. See
"Conversion of Interest Rate Determination Method" above. Prior to the end of a Long -Term
Rate Period, the Commission may also elect to establish a new Long -Term Rate Period and
Long -Term Rate for the Series 2008 Bonds, by its delivery of a Long -Term Rate Continuation
Notice to the Notice Parties. The Long -Term Rate Continuation Notice must be accompanied by
(i) an Opinion of Bond Counsel stating that the new Long -Term. Rate Period is authorized and
permitted under the Indenture and will not, in and of itself, adversely affect the Tax -Exempt
status of the interest on the Series 2008 Bonds, and (ii) a notice of any 2008 Liquidity Facility or
any 2008 Credit Enhancement, if at the same time as the new Long -Term Rate Period is being
established there will be any 2008 Liquidity Facility or 2008 Credit Enhancement with respect to
the Series 2008 Bonds.
The Commission shall select the duration of each Long -Term Rate Period and shall
include the duration of the Long -Term Rate Period in the Conversion Notice or the Long -Term
Rate Continuation Notice, as applicable, delivered with respect to such Long -Term Rate Period.
Each Long -Term Rate Period shall commence on the Long -Term Rate Conversion Date and end
on a Business Day selected by the Commission which is a minimum of 180 days after the Long -
Term Rate Conversion Date, but in no event later than the maturity date of the Series 2008
Bonds. The Long -Term Rate shall be determined by the Remarketing Agent on a Business Day
no later than the Business Day next preceding the Long -Term Conversion Date. Subject to
certain provisions of the Indenture, the Long -Term Rate shall be the rate of interest per annum
determined by the Remarketing Agent to be the minimum interest rate which, if borne by the
Series 2008 Bonds, would enable the Remarketing Agent to sell the Series 2008 Bonds on the
Long -Term Conversion Date at a price (without regard to accrued interest) equal to the principal
amount thereof (except as otherwise provided under "- Sale at Premium or Discount" below)
End of Long -Term Rate. If, prior to the end of any Long -Term Rate Period, the
Commission has not given a Long -Term Rate Continuation Notice or a Conversion Notice at the
time required by the Indenture, or if the conditions to the effectiveness of a new Long -Term Rate
Period or Conversion to a new Interest Rate Determination Method set forth in the Indenture are
not satisfied, including as a result of the Remarketing Agent failing to remarket all the Series
2008 Bonds on the day following the last day of the current Long -Term Rate Period, then on
such day the Series 2008 Bonds will automatically commence to bear interest at a Weekly Rate
of 11% per annum. The Series 2008 Bonds will continue to bear interest at a Weekly Rate of
11% per annum until such time as the Series 2008 Bonds are successfully remarketed at an
Interest Rate Determination Method in accordance with the Indenture. During such Weekly Rate
Period, the Series 2008 Bonds will not be subject to optional tender, and notice of Conversion to
another Interest Rate Determination Method may be given 5 Business Days prior to the
Conversion Date.
Notice of Conversion to or Continuation of Long -Term Rate. The Trustee shall give
notice of a conversion to a (or the establishment of another) Long -Term Rate Period for the
7
102
Series 2008 Bonds to DTC not less than 15 days prior to the proposed effective date of such
Long -Term Rate Period. Such notice shall state: (i) that the Interest Rate Determination Method
for the Series 2008 Bonds shall be converted to, or shall continue to be, a Long -Term Rate on the
applicable Long -Term Rate Conversion Date if the conditions specified in the Indenture are
satisfied on or before such date, (ii) that all 2008 Bonds are subject to mandatory tender for
purchase on the Long -Term Rate Conversion Date (whether or not the proposed new Long -Term
Rate Period becomes effective on such date) at the Purchase Price, which shall be specified
therein; provided, however, that if (a) prior to the Long -Term Rate Conversion Date, the Series
2008 Bonds were in.a Long -Term Rate Period for which there was no Liquidity Facility and (b)
the new Long -Term Rate Period does not become effective, the mandatory tender will be
cancelled; (iii) the Long -Term Rate Conversion Date and (iv) such other information as is
specified in the Indenture.
Sale at Premium or Discount. Notwithstanding the above provisions, the Long -Term
Rate shall be the rate of interest per annum determined by the Remarketing Agent to be the
interest rate which, if borne by the Series 2008 Bonds, would enable the Remarketing Agent to
sell the Series 2008 Bonds at a price (without regard to accrued interest) which will result in the
lowest net interest cost for the Series 2008 Bonds, after taking into account any premium or
discount at which the Series 2008 Bonds are sold by the Remarketing Agent, provided that:
(1) The Remarketing Agent certifies to the Trustee and the Commission that
the sale of the Series 2008 Bonds at the interest rate and premium or discount specified by the
Remarketing Agent is expected to result in the lowest net interest cost for the Series 2008 Bonds
on the Long -Term Rate Conversion Date;
(2) The Commission consents in writing to the sale of the Series 2008 Bonds
by the Remarketing Agent at such premium or discount;
(3) In the case of Series 2008 Bonds to be sold at a discount, either (a) a
Series 2008 Liquidity Facility is in effect with respect to such Series 2008 Bonds and provides
for the purchase of such Series 2008 Bonds at such discount or (b) the Commission agrees to
transfer to the Remarketing Agent on the Long -Term Rate Conversion Date, in immediately
available funds, for deposit in the 2008 Bonds Purchase Fund, an amount equal to such discount;
(4) In the case of Series 2008 Bonds to be sold at a premium, the Remarketing
Agent shall transfer to the Trustee for deposit in the Revenue Fund an amount equal to such
premium, which amount may be used to pay the specific costs of conversion;
(5) On or before the date of the determination of the Long -Term Rate, the
Commission delivers to the Trustee and the Remarketing Agent a letter of Bond Counsel to the
effect that Bond Counsel expects to be able to give a Favorable Opinion of Bond Counsel on the
Long -Term Rate Conversion Date; and
(6) On or before the Long -Term Rate Conversion Date, a Favorable Opinion
of Bond Counsel shall have been received by the Trustee and confirmed to the Commission and
the Remarketing Agent.
8
103
"
P a y m e n t o f P r i n c i p a l a n d I n t e r e s t
T h e S e r i e s 2 0 0 8 B o n d s w i l l b e i s s u e d a s f u l l y r e g i s t e r e d b o n d s w i t h o u t c o u p o n s a n d ,
w h e n i s s u e d , w i l l b e r e g i s t e r e d i n t h e n a m e o f C e d e & C o . , a s n o m i n e e o f D T C . I n d i v i d u a l
p u r c h a s e s o f i n t e r e s t s i n t h e S e r i e s 2 0 0 8 B o n d s w i l l b e m a d e i n b o o k - e n t r y f o r m o n l y , i n
a u t h o r i z e d d e n o m i n a t i o n s o f $ 5 , 0 0 0 o r a n y i n t e g r a l m u l t i p l e t h e r e o f . P u r c h a s e r s o f i n t e r e s t s w i l l
n o t r e c e i v e c e r t i f i c a t e s r e p r e s e n t i n g t h e i r i n t e r e s t s i n t h e S e r i e s 2 0 0 8 B o n d s . F o r a d e s c r i p t i o n o f
t h e m e t h o d o f p a y m e n t o f p r i n c i p a l , p r e m i u m , i f a n y , a n d i n t e r e s t o n t h e S e r i e s 2 0 0 8 B o n d s a n d
m a t t e r s p e r t a i n i n g t o t r a n s f e r s a n d e x c h a n g e s w h i l e i n t h e b o o k - e n t r y s y s t e m , s e e " A P P E N D I X
D B O O K - E N T R Y S Y S T E M "
S o l o n g a s C e d e & C o . i s t h e r e g i s t e r e d o w n e r o f t h e S e r i e s 2 0 0 8 B o n d s , t h e T r u s t e e w i l l
p a y p r i n c i p a l o f a n d p r e m i u m , i f a n y , a n d i n t e r e s t o n t h e S e r i e s 2 0 0 8 B o n d s t o D T C , w h i c h w i l l
r e m i t p r i n c i p a l , p r e m i u m , i f a n y , a n d i n t e r e s t p a y m e n t s t o t h e B e n e f i c i a l O w n e r s o f t h e S e r i e s
2 0 0 8 B o n d s , a s d e s c r i b e d u n d e r " A P P E N D I X D B O O K - E N T R Y S Y S T E M . "
T h e p r i n c i p a l , p u r c h a s e p r i c e o r r e d e m p t i o n p r i c e o f t h e S e r i e s 2 0 0 8 B o n d s a n d i n t e r e s t
t h e r e o n s h a l l b e p a y a b l e i n l a w f u l m o n e y o f t h e U n i t e d S t a t e s o f A m e r i c a a t t h e p r i n c i p a l
c o r p o r a t e t r u s t o f f i c e o f t h e T r u s t e e .
R e d e m p t i o n T e r m s o f t h e S e r i e s 2 0 0 8 B o n d s
O p t i o n a l R e d e m p t i o n o f t h e S e r i e s 2 0 0 8 B o n d s L o n g - T e r m R a t e P e r i o d . W h i l e a n y
L o n g - T e r m R a t e i s i n e f f e c t , t h e S e r i e s 2 0 0 8 B o n d s a r e s u b j e c t t o r e d e m p t i o n p r i o r t o t h e i r s t a t e d
m a t u r i t y , a t t h e o p t i o n o f t h e C o m m i s s i o n , i n w h o l e o r i n p a r t , i n A u t h o r i z e d D e n o m i n a t i o n s , i n
s u c h a m o u n t s a s m a y b e s p e c i f i e d b y t h e C o m m i s s i o n , o n t h e d a y f o l l o w i n g t h e l a s t d a y o f t h e
L o n g - T e r m R a t e P e r i o d a n d ( f o r a n y L o n g - T e r m R a t e P e r i o d o t h e r t h a n t h e i n i t i a l L o n g - T e r m
R a t e P e r i o d ) o n s u c h o t h e r d a t e s s p e c i f i e d i n t h e c o n v e r s i o n n o t i c e w i t h r e s p e c t t o s u c h L o n g -
T e r m R a t e P e r i o d , a t a R e d e m p t i o n P r i c e e q u a l t o t h e a m o u n t o f S e r i e s 2 0 0 8 B o n d s c a l l e d f o r
r e d e m p t i o n , p l u s a c c r u e d i n t e r e s t t o t h e d a t e f i x e d f o r r e d e m p t i o n , w i t h o u t p r e m i u m .
O p t i o n a l R e d e m p t i o n o f t h e S e r i e s 2 0 0 8 B o n d s O t h e r R a t e P e r i o d s . W h i l e b e a r i n g
i n t e r e s t a t a D a i l y R a t e o r a W e e k l y R a t e , t h e S e r i e s 2 0 0 8 B o n d s w i l l b e s u b j e c t t o r e d e m p t i o n
p r i o r t o t h e i r s t a t e d m a t u r i t y , a t t h e o p t i o n o f t h e C o m m i s s i o n , i n w h o l e o r i n p a r t , i n A u t h o r i z e d
D e n o m i n a t i o n s , o n a n y B u s i n e s s D a y , a t a R e d e m p t i o n P r i c e e q u a l t o t h e a m o u n t o f S e r i e s 2 0 0 8
B o n d s c a l l e d f o r r e d e m p t i o n , p l u s a c c r u e d i n t e r e s t , i f a n y , w i t h o u t p r e m i u m .
W h i l e b e a r i n g i n t e r e s t a t a C o m m e r c i a l P a p e r R a t e , t h e S e r i e s 2 0 0 8 B o n d s w i l l b e s u b j e c t
t o r e d e m p t i o n a t t h e o p t i o n o f t h e C o m m i s s i o n , i n w h o l e o r i n p a r t , o n t h e d a y f o l l o w i n g t h e e n d
o f t h e C o m m e r c i a l P a p e r R a t e P e r i o d a t a R e d e m p t i o n P r i c e e q u a l t o t h e a m o u n t o f S e r i e s 2 0 0 8
B o n d s c a l l e d f o r r e d e m p t i o n , p l u s a c c r u e d i n t e r e s t , i f a n y , w i t h o u t p r e m i u m .
U n l e s s t h e C o m m i s s i o n o b t a i n s a F a v o r a b l e O p i n i o n o f B o n d C o u n s e l a n d c h a n g e s
r e d e m p t i o n p r o v i s i o n s a s p r o v i d e d i n t h e I n d e n t u r e , S e r i e s 2 0 0 8 B o n d s b e a r i n g i n t e r e s t a t a
F i x e d R a t e a r e s u b j e c t t o r e d e m p t i o n i n w h o l e o r i n p a r t ( a n d i f i n p a r t , i n s u c h o r d e r o f m a t u r i t y
a n d M a n d a t o r y S i n k i n g A c c o u n t P a y m e n t d a t e s a s t h e C o m m i s s i o n s h a l l s p e c i f y a n d w i t h i n a
m a t u r i t y o f M a n d a t o r y S i n k i n g A c c o u n t P a y m e n t d a t e s b y l o t o r b y s u c h o t h e r m e t h o d a s t h e
9
1 0 4
Trustee determines to be fair and reasonable and in Authorized Denominations), on any date, at
such times and at such Redemption Prices as follows:
(1) If, on the Fixed Rate Conversion Date, the remaining term of the Series
2008 Bonds is greater than eight (8) years, then the Series 2008 Bonds will not be subject to
optional redemption until the first June I or December 1 (whichever is earlier) to follow the
eighth (8th) anniversary of the conversion of such Series 2008 Bonds to a Fixed Rate. On such
first June 1 or December 1, the Series 2008 Bonds will be subject to redemption at 102% of the
principal amount thereof, plus accrued interest, if any, to the date of redemption, which
Redemption Price will decline by one percent (1%) per annum on each succeeding anniversary
of such first June 1 or December 1 until reaching a Redemption Price of 100% of the principal
amount thereof, plus accrued interest, if any, to the date of redemption, and thereafter at a
Redemption Price of 100% of the principal amount thereof, plus accrued interest, if any, to the
date of redemption.
(2) If, on the Fixed Rate Conversion Date, the remaining term of the Series
2008 Bonds is less than eight (8) years, then the Series 2008 Bond will not be subject to optional
redemption.
Mandatory Redemption of the Series 2008 Bonds from Mandatory Sinking Account
Payments. The Series 2008 Bonds are subject to mandatory redemption from Mandatory
Sinking Account Payments for the Series 2008 Bonds, on each date a Mandatory Sinking
Account Payment for the Series 2008 Bonds is due, and in the principal amount equal to the
Mandatory Sinking Account Payment due on such date at a redemption price equal to the
principal amount thereof, plus accrued but unpaid interest to the redemption date, without
premium, as set forth below.
Redemption Mandatory Redemption Mandatory
Date Sinking Account Date Sinking Account
(June 1) Payment (June 1) Payment*
j Final Maturity
10
105
"
P u r c h a s e I n L i e u o f R e d e m p t i o n
T h e C o m m i s s i o n r e s e r v e s t h e r i g h t a t a l l t i m e s t o p u r c h a s e a n y o f i t s S e r i e s 2 0 0 8 B o n d s
o n t h e o p e n m a r k e t . I n l i e u o f m a n d a t o r y r e d e m p t i o n , t h e C o m m i s s i o n m a y s u r r e n d e r t o t h e
T r u s t e e f o r c a n c e l l a t i o n S e r i e s 2 0 0 8 B o n d s p u r c h a s e d o n t h e o p e n m a r k e t , a n d s u c h S e r i e s 2 0 0 8
B o n d s s h a l l b e c a n c e l l e d b y t h e T r u s t e e . I f a n y S e r i e s 2 0 0 8 B o n d s a r e s o c a n c e l l e d , t h e
C o m m i s s i o n m a y d e s i g n a t e t h e M a n d a t o r y S i n k i n g A c c o u n t P a y m e n t s o r p o r t i o n s t h e r e o f w i t h i n
s u c h S e r i e s 2 0 0 8 B o n d s s o p u r c h a s e d t h a t a r e t o b e r e d u c e d a s a r e s u l t o f s u c h c a n c e l l a t i o n .
G e n e r a l R e d e m p t i o n P r o v i s i o n s
S e l e c t i o n o f S e r i e s 2 0 0 8 B o n d s f o r R e d e m p t i o n . T h e C o m m i s s i o n w i l l d e s i g n a t e w h i c h
m a t u r i t i e s o f S e r i e s 2 0 0 8 B o n d s a r e t o b e r e d e e m e d ; p r o v i d e d t h a t S e r i e s 2 0 0 8 B o n d s r e g i s t e r e d
i n t h e n a m e o f a 2 0 0 8 L i q u i d i t y P r o v i d e r m u s t b e r e d e e m e d p r i o r t o r e d e e m i n g a n y o t h e r S e r i e s
2 0 0 8 B o n d s . I f l e s s t h a n a l l S e r i e s 2 0 0 8 B o n d s m a t u r i n g o n a n y o n e d a t e a r e t o b e r e d e e m e d a t
a n y o n e t i m e , D T C ' s p r a c t i c e i s t o d e t e r m i n e b y l o t t h e a m o u n t o f t h e i n t e r e s t o f e a c h D T C
D i r e c t P a r t i c i p a n t i n t h e S e r i e s 2 0 0 8 B o n d s t o b e r e d e e m e d . F o r p u r p o s e s o f s u c h s e l e c t i o n , t h e
S e r i e s 2 0 0 8 B o n d s s h a l l b e d e e m e d t o b e c o m p o s e d o f m u l t i p l e s o f m i n i m u m A u t h o r i z e d
D e n o m i n a t i o n s a n d a n y s u c h m u l t i p l e m a y b e s e p a r a t e l y r e d e e m e d . T h e C o m m i s s i o n m a y
d e s i g n a t e t h e M a n d a t o r y S i n k i n g A c c o u n t P a y m e n t s , o r p o r t i o n s t h e r e o f , t h a t a r e t o b e r e d u c e d
a s a r e s u l t o f s u c h r e d e m p t i o n .
N o t i c e o f R e d e m p t i o n . T h e T r u s t e e w i l l s e n d e a c h n o t i c e o f r e d e m p t i o n b y f i r s t c l a s s
m a i l n o t l e s s t h a n 1 0 n o r m o r e t h a n 9 0 d a y s p r i o r t o t h e r e d e m p t i o n d a t e , t o D T C , t h e
R e m a r k e t i n g A g e n t a n d o t h e r p a r t i e s s p e c i f i e d i n t h e I n d e n t u r e . C o n v e y a n c e o f n o t i c e s a n d o t h e r
c o m m u n i c a t i o n s b y D T C t o D T C D i r e c t P a r t i c i p a n t s , b y D T C D i r e c t P a r t i c i p a n t s t o D T C
I n d i r e c t P a r t i c i p a n t s , a n d b y D T C D i r e c t P a r t i c i p a n t s a n d D T C I n d i r e c t P a r t i c i p a n t s t o B e n e f i c i a l
O w n e r s o f S e r i e s 2 0 0 8 B o n d s w i l l b e g o v e r n e d b y a r r a n g e m e n t s a m o n g t h e m , a n d t h e
C o m m i s s i o n a n d t h e T r u s t e e w i l l n o t h a v e a n y r e s p o n s i b i l i t y o r o b l i g a t i o n t o s e n d a n o t i c e o f
r e d e m p t i o n e x c e p t t o D T C . F a i l u r e o f D T C t o r e c e i v e a n y n o t i c e o f r e d e m p t i o n o r a n y d e f e c t
t h e r e i n w i l l n o t a f f e c t t h e s u f f i c i e n c y o f a n y p r o c e e d i n g s f o r r e d e m p t i o n . E a c h n o t i c e o f
r e d e m p t i o n s h a l l s t a t e ( i ) t h e d a t e o f t h e n o t i c e , ( i i ) t h e d a t e o f i s s u e o f t h e S e r i e s 2 0 0 8 B o n d s ,
( i i i ) t h e r e d e m p t i o n d a t e , ( i v ) t h e R e d e m p t i o n P r i c e , ( v ) t h e p l a c e o r p l a c e s o f r e d e m p t i o n ,
i n c l u d i n g t h e n a m e a n d a d d r e s s o f t h e T r u s t e e , ( v i ) t h e m a t u r i t y , ( v i i ) t h e C U S I P n u m b e r s , i f a n y ,
a n d ( v i i i ) i n t h e c a s e o f S e r i e s 2 0 0 8 B o n d s t o b e r e d e e m e d i n p a r t o n l y , t h e r e s p e c t i v e p o r t i o n s o f
t h e p r i n c i p a l a m o u n t t h e r e o f t o b e r e d e e m e d .
R e s c i s s i o n . T h e C o m m i s s i o n m a y , a t i t s o p t i o n , p r i o r t o t h e d a t e f i x e d f o r r e d e m p t i o n i n
a n y n o t i c e o f r e d e m p t i o n r e s c i n d a n d c a n c e l s u c h n o t i c e o f r e d e m p t i o n b y w r i t t e n n o t i c e o f t h e
C o m m i s s i o n t o t h e T r u s t e e a n d t h e T r u s t e e s h a l l m a i l n o t i c e o f s u c h c a n c e l l a t i o n t o t h e r e c i p i e n t s
o f t h e n o t i c e o f r e d e m p t i o n b e i n g c a n c e l l e d .
E f f e c t o f R e d e m p t i o n . N o t i c e o f r e d e m p t i o n h a v i n g b e e n d u l y g i v e n a s a f o r e s a i d , a n d
m o n e y s f o r p a y m e n t o f t h e r e d e m p t i o n p r i c e o f , t o g e t h e r w i t h i n t e r e s t a c c r u e d t o t h e r e d e m p t i o n
d a t e o n , t h e S e r i e s 2 0 0 8 B o n d s ( o r p o r t i o n s t h e r e o f ) s o c a l l e d f o r r e d e m p t i o n b e i n g h e l d b y t h e
T r u s t e e , o n t h e r e d e m p t i o n d a t e d e s i g n a t e d i n s u c h n o t i c e , t h e S e r i e s 2 0 0 8 B o n d s ( o r p o r t i o n s
t h e r e o f ) s o c a l l e d f o r r e d e m p t i o n s h a l l b e c o m e d u e a n d p a y a b l e a t t h e r e d e m p t i o n p r i c e s p e c i f i e d
1 0 6
in such notice, together with interest accrued thereon to the date fixed for redemption, interest on
the Series 2008 Bonds so called for redemption shall cease to accrue, such Series 2008 Bonds (or
portions thereof) shall cease to be entitled to any benefit or security under the Indenture, and the
Holders of such Series 2008 Bonds shall have no rights in respect thereof except to receive
payment of said redemption price and accrued interest to the date fixed for redemption.
Partial Redemption of Bonds. Upon surrender of any Bond to be redeemed in part only,
the Commission shall execute, and the Trustee shall authenticate and deliver to the Holder of
such Series 2008 Bond, at the expense of the Commission, a new Bond or Bonds of Minimum
Authorized Denominations equal in aggregate principal amount to the unredeemed portion of the
Bond surrendered, at the same maturity and terms as the surrendered Bond.
Mandatory Tender Provisions
Tenders of Series 2008 Bonds and Deliveries of Converted Series 2008 Bonds Are
Subject to DTC Procedures. As long as the book -entry only system is in effect with respect to
the Series 2008 Bonds, all tenders for purchase and deliveries upon Conversion of Series 2008
Bonds tendered for purchase or subject to mandatory tender under the provisions of the Indenture
shall be made pursuant to DTC's procedures as in effect from time to time, and neither the
Commission; the Trustee, nor any Remarketing Agent shall have any responsibility for or
liability with respect to the implementation of these procedures. For a description of the tender
procedures through DTC, see "APPENDIX D — BOOK —ENTRY SYSTEM."
Mandatory Tender for Purchase. The Series 2008 Bonds will be subject to mandatory
tender for purchase, at a Purchase Price equal to the principal amount thereof, on the Interest
Payment Date immediately following the initial Long -Term Rate Period; provided, however, that
if all Series 2008 Bonds are not successfully remarketed on such date, the mandatory tender will
be cancelled. See "Initial Rate Period" above. After the initial Long -Term Rate Period, the
Series 2008 Bonds will be subject to mandatory tender for purchase on the date of each proposed
Conversion to a new Interest Rate Determination Method and on such other dates as are
specified in the Indenture.
PLAN OF FINANCE
The Series 2008 Bonds are being issued in order to refinance all of the outstanding
principal amount of the Commercial Paper Notes and all or a portion of the accrued interest
thereon, (ii) fund capitalized interest on the Series 2008 Bonds to December 1, 2009, (iii) fund a
reserve fund for the Series 2008 Bonds, and (iv) pay costs of issuance of the Series 2008 Bonds.
In March 2005, the Commission authorized the issuance of its Commercial Paper Notes
(Limited Tax Bonds) Series A in an aggregate principal amount up to $110,000,000 and Series B
in an aggregate principal amount up to $75,000,000. As of April 15, 2008, there is $110,005,000
outstanding principal amount of Notes. The Notes are secured by a pledge of the Sales Tax
Revenues subordinate to the pledge of the Sales Tax Revenues in favor of the holders of the
Series 2008 Bonds. The principal of and interest on the Notes are payable from draws under an
irrevocable, direct pay letter of credit issued by Bank of America, N.A. (the `Bank"), pursuant to
a reimbursement agreement dated as of March 1, 2005 ("Reimbursement Agreement") by and
between the Commission and the Bank. The stated amount of the letter of credit may not exceed
$190,000,000. The letter of credit expires March 29, 2010, unless terminated earlier as provided
12
•
107
"
"
"
i n t h e R e i m b u r s e m e n t A g r e e m e n t . T h e C o m m i s s i o n ' s o b l i g a t i o n t o r e i m b u r s e t h e B a n k f o r
d r a w s u n d e r t h e l e t t e r o f c r e d i t t o p a y t h e p r i n c i p a l o f a n d i n t e r e s t o n t h e N o t e s i s s e c u r e d b y a
p l e d g e o f S a l e s T a x R e v e n u e s s u b o r d i n a t e t o t h e p l e d g e i n f a v o r o f t h e h o l d e r s o f t h e S e r i e s
2 0 0 8 B o n d s a n d o n p a r i t y w i t h t h e o b l i g a t i o n t o p a y N o t e h o l d e r s . T h e C o m m i s s i o n m a y
c o n t i n u e t o i s s u e t h e N o t e s w h i l e t h e S e r i e s 2 0 0 8 B o n d s a r e o u t s t a n d i n g .
T h e C o m m i s s i o n h a s e n t e r e d i n t o t h e I n i t i a l S w a p A g r e e m e n t s , i n a c o m b i n e d n o t i o n a l
a m o u n t o f $ 1 8 5 , 0 0 0 , 0 0 0 , w h i c h I n i t i a l S w a p A g r e e m e n t s h a v e a n e f f e c t i v e d a t e o f O c t o b e r 1 ,
2 0 0 9 a n d e x p i r e o n J u n e 1 , 2 0 2 9 . S e e " S E C U R I T Y A N D S O U R C E S O F P A Y M E N T F O R T H E
S E R I E S 2 0 0 8 B O N D S I n i t i a l S w a p A g r e e m e n t s " h e r e i n . _ P u r s u a n t t o t h e I n i t i a l S w a p
A g r e e m e n t s , t h e C o m m i s s i o n h a s a g r e e d t o p a y a f i x e d i n t e r e s t r a t e t o t h e B a n k a n d L e h m a n ,
a n d t h e B a n k a n d L e h m a n h a v e a g r e e d t o p a y t h e C o m m i s s i o n a f l o a t i n g r a t e o f i n t e r e s t . T o
s e c u r e i t s o b l i g a t i o n t o m a k e r e g u l a r l y s c h e d u l e d p a y m e n t s t o t h e B a n k a n d L e h m a n p u r s u a n t t o
t h e I n i t i a l S w a p A g r e e m e n t s , u n t i l t h e C o m m i s s i o n i s s u e s v a r i a b l e r a t e d e b t p a y a b l e f r o m t h e
S a l e s T a x R e v e n u e s o n a s e n i o r l i e n b a s i s t o t h e N o t e s , t h e C o m m i s s i o n h a s p l e d g e d t h e S a l e s
T a x R e v e n u e s o n a p a r i t y b a s i s w i t h t h e o b l i g a t i o n t o p a y p r i n c i p a l o f a n d i n t e r e s t o n t h e N o t e s
a n d t o r e i m b u r s e t h e B a n k f o r d r a w s u n d e r t h e l e t t e r o f c r e d i t ; a f t e r i s s u a n c e o f a n y v a r i a b l e r a t e
d e b t p a y a b l e f r o m t h e S a l e s T a x R e v e n u e s o n a s e n i o r l i e n b a s i s t o t h e N o t e s ( s u c h a s t h e S e r i e s
2 0 0 8 B o n d s ) , t h e p l e d g e o f S a l e s T a x R e v e n u e s i n f a v o r o f L e h m a n a n d t h e B a n k w i l l b e o n a
p a r i t y b a s i s w i t h t h e p l e d g e o f t h e S a l e s T a x R e v e n u e s i n f a v o r o f t h e s e n i o r l i e n v a r i a b l e r a t e
b o n d h o l d e r s . A c c o r d i n g l y , t h e C o m m i s s i o n ' s o b l i g a t i o n t o m a k e r e g u l a r l y s c h e d u l e d p a y m e n t s
u n d e r t h e I n i t i a l S w a p A g r e e m e n t s w i l l c o n s t i t u t e a P a r i t y O b l i g a t i o n u n d e r t h e I n d e n t u r e . T h e
C o m m i s s i o n ' s o b l i g a t i o n t o p a y a n y e a r l y t e r m i n a t i o n a m o u n t s t o L e h m a n a n d t h e B a n k
p u r s u a n t t o t h e I n i t i a l S w a p A g r e e m e n t s i s s e c u r e d b y a p l e d g e o f t h e S a l e s T a x R e v e n u e s
s u b o r d i n a t e t o t h e p l e d g e i n f a v o r o f t h e S e r i e s 2 0 0 8 B o n d s a n d t h e N o t e s . S e e " S E C U R I T Y
A N D S O U R C E S O F P A Y M E N T F O R T H E S E R I E S 2 0 0 8 B O N D S I n i t i a l S w a p
A g r e e m e n t s " .
A P P L I C A T I O N O F S E R I E S 2 0 0 8 B O N D P R O C E E D S
T h e p r o c e e d s f r o m t h e s a l e o f t h e S e r i e s 2 0 0 8 B o n d s w i l l b e a p p l i e d a s f o l l o w s :
S o u r c e s o f F u n d s :
P r i n c i p a l A m o u n t o f B o n d s $
[ P l u s / L e s s ] : O r i g i n a l I s s u e
[ P r e m i u m / D i s c o u n t ]
T o t a l S o u r c e s : $
U s e s o f F u n d s :
N o t e s E s c r o w
2 0 0 8 C a p i t a l i z e d I n t e r e s t F u n d ( 1 )
C o s t s o f I s s u a n c e ( 2 )
R e s e r v e F u n d
T o t a l U s e s :
0 ) C a p i t a l i z e d i n t e r e s t c a l c u l a t e d f r o m t h e d a t e o f t h e d e l i v e r y o f t h e S e r i e s 2 0 0 8 B o n d s t o D e c e m b e r 1 , 2 0 0 9 .
( 2 ) I n c l u d e s u n d e r w r i t e r s ' d i s c o u n t , r a t i n g a g e n c y f e e s , t r u s t e e f e e s , p r i n t i n g c o s t s , b o n d c o u n s e l , d i s c l o s u r e
c o u n s e l a n d f i n a n c i a l a d v i s o r f e e s a n d e x p e n s e s a n d o t h e r m i s c e l l a n e o u s e x p e n s e s .
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SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2008 BONDS
Limited Obligation
The Series 2008 Bonds are limited obligations of the Commission and are payable as to
both principal and interest, and any premium upon redemption thereof, exclusively from the
Revenues, which principally include Sales Tax Revenues, pledged under the Indenture.
NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE
COUNTY OF RIVERSIDE, THE STATE OF CALIFORNIA OR ANY POLITICAL
SUBDIVISION OR PUBLIC AGENCY THEREOF, OTHER THAN THE COMMISSION TO
THE EXTENT OF THE PLEDGED REVENUES, IS PLEDGED TO THE PAYMENT OF THE
PRINCIPAL OF, REDEMPTION PREMIUM, IF ANY, OR INTEREST ON, THE SERIES
2008 BONDS.
Pledge of Revenues
All Sales Tax Revenues are irrevocably pledged by the Commission to secure the
punctual payment of the principal of, premium, if any, and interest on the Series 2008 Bonds and
any additional Series of Bonds issued under the Indenture (collectively, the "Bonds") and all
amounts owing on any Parity Obligations in accordance with their terms. The Sales Tax
Revenues shall not be used for any other purpose while any of the Bonds or Parity Obligations
remain Outstanding, except as permitted by the provisions of the Indenture permitting the
application thereof for the purposes and on the terms and conditions set forth therein.
Additionally, all amounts (including proceeds of the Bonds) held by the Trustee under the
Indenture (except for amounts held in the Rebate Fund, any Letter of Credit Account and any
Bond Purchase Fund) are pledged to secure the payment of all amounts owing on the Bonds and
Parity Obligations, subject only to the provisions of the Indenture permitting the application
thereof for the purposes and on the terms and conditions set forth therein. Pursuant to the
Indenture, the pledge of Sales Tax Revenues constitutes a first lien to secure the Bonds and
Parity Obligations. The pledge of Sales Tax Revenues shall be irrevocable until all Bonds issued
under the Indenture, including the Series 2008 Bonds, and all Parity Obligations are no longer
Outstanding.
The Sales Tax Revenues pledged to the payment of the Bonds and Parity Obligations
shall be applied without priority or distinction of one over the other and the Sales Tax Revenues
shall constitute a trust fund for the security and payment of the Bonds and Parity Obligations; but
nevertheless out of Sales Tax Revenues certain amounts may be applied for other purposes as
provided in the Indenture.
For a detailed description of the Sales Tax and projected receipts of Sales Tax Revenues,
see "THE SALES TAX" herein.
Revenue Fund; Allocation of Revenues
As long as any Bonds are Outstanding or any Parity Obligations remain unpaid, the
Commission has assigned the Sales Tax Revenues to the Trustee and shall cause the Board of
Equalization to transmit the same directly to the Trustee. The Sales Tax Revenues shall be
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r e c e i v e d a n d h e l d i n t r u s t b y t h e T r u s t e e f o r t h e b e n e f i t o f t h e H o l d e r s o f t h e B o n d s a n d a n y
P a r i t y O b l i g a t i o n s . T h e T r u s t e e s h a l l f o r t h w i t h d e p o s i t a l l S a l e s T a x R e v e n u e s i n t h e R e v e n u e
F u n d , m a i n t a i n e d a n d h e l d i n t r u s t b y t h e T r u s t e e , w h e n a n d a s s u c h S a l e s T a x R e v e n u e s a r e
r e c e i v e d b y t h e T r u s t e e . S e e " A P P E N D I X C S U M M A R Y O F C E R T A I N P R O V I S I O N S O F
T H E I N D E N T U R E A l l o c a t i o n o f R e v e n u e s . " I n v e s t m e n t i n c o m e o n a m o u n t s h e l d b y t h e
T r u s t e e ( o t h e r t h a n a m o u n t s h e l d i n t h e R e b a t e F u n d o r f o r w h i c h p a r t i c u l a r i n s t r u c t i o n s a r e
p r o v i d e d ) s h a l l a l s o b e d e p o s i t e d i n t h e R e v e n u e F u n d . T h e C o m m i s s i o n h a s a l s o p l e d g e d t o t h e
T r u s t e e a l l S w a p R e v e n u e s .
I n e a c h m o n t h w h i l e B o n d s r e m a i n O u t s t a n d i n g , t h e T r u s t e e i s r e q u i r e d t o s e t a s i d e
r e c e i p t s o f S a l e s T a x R e v e n u e s i n t h e f o l l o w i n g r e s p e c t i v e f u n d s , a m o u n t s a n d o r d e r o f p r i o r i t y
( p r o v i d e d t h a t d e f i c i e n c i e s i n a n y p r e v i o u s l y r e q u i r e d d e p o s i t s h a l l b e m a d e u p p r i o r t o t h e
d e p o s i t t o a f u n d s u b s e q u e n t i n p r i o r i t y a n d f u r t h e r p r o v i d e d t h a t s e t a s i d e s o r t r a n s f e r s r e q u i r e d
w i t h r e s p e c t t o P a r i t y O b l i g a t i o n s s h a l l b e m a d e o n a p a r i t y b a s i s , a s p r o v i d e d i n t h e I n d e n t u r e ) :
1 . I n t e r e s t F u n d . T h e I n d e n t u r e r e q u i r e s t h e T r u s t e e t o m a k e m o n t h l y
d e p o s i t s i n t h e I n t e r e s t F u n d i n a n a m o u n t e q u a l t o ( a ) o n e - s i x t h o f t h e a g g r e g a t e h a l f -
y e a r l y a m o u n t o f i n t e r e s t b e c o m i n g d u e a n d p a y a b l e o n O u t s t a n d i n g C u r r e n t I n t e r e s t
B o n d s ( o t h e r t h a n B o n d s c o n s t i t u t i n g V a r i a b l e R a t e I n d e b t e d n e s s ) d u r i n g t h e e n s u i n g s i x -
m o n t h p e r i o d , p l u s ( b ) t h e a g g r e g a t e a m o u n t o f i n t e r e s t t o a c c r u e d u r i n g t h a t m o n t h ,
c a l c u l a t e d a s p r o v i d e d i n t h e I n d e n t u r e , o n t h e O u t s t a n d i n g V a r i a b l e R a t e I n d e b t e d n e s s ; -
p r o v i d e d t h a t a l l S w a p R e v e n u e s r e c e i v e d w i t h r e s p e c t t o I n t e r e s t R a t e S w a p A g r e e m e n t s
t h a t a r e P a r i t y O b l i g a t i o n s s h a l l b e d e p o s i t e d i n t h e I n t e r e s t F u n d a n d c r e d i t e d t o t h e
a b o v e - r e q u i r e d d e p o s i t s , a n d t h a t p a y m e n t s o n s u c h I n t e r e s t R a t e S w a p A g r e e m e n t s
( o t h e r t h a n f e e s a n d e x p e n s e s a n d t e r m i n a t i o n p a y m e n t s ) s h a l l b e p a y a b l e f r o m t h e
I n t e r e s t F u n d a n d t h e a b o v e - r e q u i r e d d e p o s i t s s h a l l b e a d j u s t e d t o i n c l u d e s u c h p a y m e n t s .
2 . P r i n c i p a l F u n d ; S i n k i n g A c c o u n t s . T h e I n d e n t u r e a l s o r e q u i r e s t h e
T r u s t e e t o m a k e m o n t h l y d e p o s i t s i n t h e P r i n c i p a l F u n d i n a n a m o u n t e q u a l t o a t l e a s t ( a )
o n e - s i x t h o f t h e a g g r e g a t e s e m i a n n u a l a m o u n t o f p r i n c i p a l , a c c r e t e d v a l u e , i f a p p l i c a b l e ,
b e c o m i n g d u e a n d p a y a b l e w i t h i n t h e n e x t s i x m o n t h s o n O u t s t a n d i n g B o n d s h a v i n g
s e m i a n n u a l m a t u r i t y d a t e s , p l u s ( b ) o n e - t w e l f t h o f t h e a g g r e g a t e y e a r l y a m o u n t o f
p r i n c i p a l , a c c r e t e d v a l u e , i f a p p l i c a b l e , b e c o m i n g d u e a n d p a y a b l e w i t h i n t h e n e x t t w e l v e
m o n t h s o n O u t s t a n d i n g B o n d s h a v i n g a n n u a l m a t u r i t y d a t e s , p l u s ( c ) o n e - s i x t h o f t h e
a g g r e g a t e o f t h e M a n d a t o r y S i n k i n g A c c o u n t P a y m e n t s t o b e p a i d d u r i n g t h e n e x t s i x -
m o n t h p e r i o d i n t o t h e r e s p e c t i v e S i n k i n g A c c o u n t s f o r t h e T e r m B o n d s o f a l l S e r i e s f o r
w h i c h S i n k i n g A c c o u n t s h a v e b e e n c r e a t e d a n d f o r w h i c h s e m i a n n u a l m a n d a t o r y
r e d e m p t i o n i s r e q u i r e d f r o m s a i d S i n k i n g A c c o u n t s , p l u s ( d ) o n e - t w e l f t h o f t h e a g g r e g a t e
o f t h e M a n d a t o r y S i n k i n g A c c o u n t P a y m e n t s t o b e p a i d d u r i n g t h e n e x t 1 2 - m o n t h p e r i o d
i n t o t h e r e s p e c t i v e S i n k i n g A c c o u n t s f o r t h e T e r m B o n d s o f a l l S e r i e s f o r w h i c h S i n k i n g
A c c o u n t s h a v e b e e n c r e a t e d a n d f o r w h i c h a n n u a l m a n d a t o r y r e d e m p t i o n i s r e q u i r e d f r o m
s u c h S i n k i n g A c c o u n t s .
3 . B o n d R e s e r v e F u n d . T h e I n d e n t u r e a l s o r e q u i r e s t h e T r u s t e e t o m a k e
d e p o s i t s t o t h e B o n d R e s e r v e F u n d a s s e t f o r t h b e l o w . S e e " B o n d R e s e r v e F u n d "
b e l o w .
4 . S u b o r d i n a t e O b l i g a t i o n s F u n d . A s l o n g a s a n y S u b o r d i n a t e O b l i g a t i o n s
r e m a i n u n p a i d , a n y R e v e n u e s r e m a i n i n g i n t h e R e v e n u e F u n d a f t e r t h e t r a n s f e r s
1 5
1 1 0
described in (1), (2) and (3) above have been made shall be transferred to the Subordinate
Trustee. After the Subordinate Trustee has made the required deposit of Revenues under
the Subordinate Indenture, the Subordinate Trustee shall transfer any remaining
Revenues back to the Trustee.
5. Fees and Expenses Fund. At the direction of the Commission, after the
transfers described in (1), (2), (3) and (4) above have been made, the Trustee is required
to deposit as soon as practicable in each month in the Fees and Expenses Fund (i)
amounts necessary for payment of fees, expenses and similar charges (including fees,
expenses and similar charges relating to any Liquidity Facility or Credit Enhancement for
the Bonds or any Parity Obligations) owing in such month or the following month by the
Commission in connection with the Bonds or any Parity Obligations and (ii) amounts
necessary for payment of fees, expenses and similar charges owing in such month or the
following month by the Commission in connection with Subordinate Obligations. The
Commission shall inform the Trustee of such amounts, in writing, on or prior to the first
Business Day of each month.
Any Revenues remaining in the Revenue Fund after the foregoing transfers described in (1), (2),
(3), (4) and (5) above, except as the Commission shall otherwise direct in writing or as is
otherwise provided in a supplemental indenture, shall be transferred to the Commission on the
same Business Day or as soon as practicable thereafter. The Commission may use and apply the
Revenues when received by it for any lawful purpose of the Commission, including . the
redemption of Bonds upon the terms and conditions set forth in the supplemental indenture
relating to such Bonds and the purchase of Bonds as and when and at such prices as it may
determine.
See "APPENDIX C—SUMMARY OF CERTAIN PROVISIONS OF THE
INDENTURE — Allocation of Revenues" and " — Definitions" for a more complete discussion.
Bond Reserve Fund
Upon issuance of the Series 2008 Bonds, a 2008 Bonds Reserve. Fund is established
pursuant to the Indenture to be maintained in an amount equal to the 2008 Bonds Reserve
Requirement, for the purpose of paying principal of and interest on the Series 2008 Bonds when
due when insufficient moneys for such payment are on deposit in the Principal Account and the
Interest Account, and for such other purposes as are specified in the Indenture. The initial 2008
Bonds Reserve Requirement under the Indenture in the amount of $ will be
funded from the proceeds of the sale of the Series 2008 Bonds. "2008 Bonds Reserve
Requirement" is defined under the Indenture as follows: as of any date of calculation, the least
of (i) 10% of the aggregate original principal amount of Series 2008 Bonds (or, if the amount of
any original issue discount or premium exceeds 2%, 10% of the issue price of the Series 2008
Bonds), (ii) 125% of average Annual Debt Service for the Series 2008 Bonds or (iii) 100% of
Maximum Annual Debt Service for the Series 2008 Bonds. Except as otherwise provided in the
Indenture, upon the occurrence of any deficiency in the Bond Reserve Fund, the Trustee shall
deposit in the Bond Reserve Fund, as soon as possible in each month, until the Balance therein is
at least equal to the 2008 Bonds Reserve Requirement, one -twelfth (1/12th) of the aggregate
amount of each unreplenished prior withdrawal from the Bond Reserve Fund or decrease
resulting from any required valuation of the investments in the Bond Reserve Fund.
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I n l i e u o f a c a s h d e p o s i t , t h e C o m m i s s i o n m a y f u l f i l l a l l o r a p o r t i o n o f i t s o b l i g a t i o n t o
f u n d t h e B o n d R e s e r v e F u n d b y d e p o s i t i n g a l e t t e r o f c r e d i t , s u r e t y b o n d o r i n s u r a n c e p o l i c y , a s
p r o v i d e d i n t h e I n d e n t u r e . S e e " A P P E N D I X C S U M M A R Y O F C E R T A I N P R O V I S I O N S O F
T H E I N D E N T U R E - F u n d i n g a n d A p p l i c a t i o n o f B o n d R e s e r v e F u n d " a n d " D e f i n i t i o n s " f o r
a m o r e c o m p l e t e d i s c u s s i o n .
A d d i t i o n a l B o n d s a n d P a r i t y O b l i g a t i o n s
U n d e r t h e I n d e n t u r e , t h e C o m m i s s i o n m a y i s s u e o t h e r o b l i g a t i o n s p a y a b l e i n w h o l e o r i n
p a r t f r o m S a l e s T a x R e v e n u e s , s u b j e c t t o t h e t e r m s a n d c o n d i t i o n s c o n t a i n e d i n t h e I n d e n t u r e .
I s s u a n c e o f A d d i t i o n a l S e r i e s o f B o n d s . T h e C o m m i s s i o n m a y b y S u p p l e m e n t a l
I n d e n t u r e e s t a b l i s h o n e o r m o r e a d d i t i o n a l S e r i e s o f B o n d s p a y a b l e f r o m S a l e s T a x R e v e n u e s
a n d s e c u r e d b y t h e p l e d g e m a d e u n d e r t h e I n d e n t u r e e q u a l l y a n d r a t a b l y w i t h t h e S e r i e s 2 0 0 8
B o n d s , b u t o n l y u p o n c o m p l i a n c e b y t h e C o m m i s s i o n w i t h t h e p r o v i s i o n s o f t h e I n d e n t u r e .
C e r t a i n o f t h e a p p l i c a b l e p r o v i s i o n s o f t h e I n d e n t u r e a r e d e s c r i b e d b e l o w :
( a ) N o E v e n t o f D e f a u l t s h a l l h a v e o c c u r r e d a n d t h e n b e c o n t i n u i n g .
( b ) I f s o r e q u i r e d i n t h e S u p p l e m e n t a l I n d e n t u r e p r o v i d i n g f o r t h e i s s u a n c e o f
s u c h S e r i e s , e i t h e r ( i ) a B o n d R e s e r v e F u n d s h a l l b e e s t a b l i s h e d t o p r o v i d e a d d i t i o n a l s e c u r i t y f o r
s u c h S e r i e s o f B o n d s o r ( i i ) t h e b a l a n c e i n t h e e x i s t i n g B o n d R e s e r v e F u n d , f o r t h w i t h u p o n t h e
r e c e i p t o f t h e p r o c e e d s o f t h e s a l e o f B o n d s o f s u c h S e r i e s s h a l l b e i n c r e a s e d , i f n e c e s s a r y , t o a n
a m o u n t a t l e a s t e q u a l t o t h e B o n d R e s e r v e R e q u i r e m e n t w i t h r e s p e c t t o a l l B o n d s t o b e
c o n s i d e r e d O u t s t a n d i n g u p o n t h e i s s u a n c e o f B o n d s o f s u c h S e r i e s . S a i d d e p o s i t m a y b e m a d e
f r o m t h e p r o c e e d s o f t h e s a l e o f B o n d s o f s u c h S e r i e s o r f r o m o t h e r f u n d s o f t h e C o m m i s s i o n o r
f r o m b o t h s u c h s o u r c e s o r i n t h e f o r m o f a l e t t e r o f c r e d i t o r s u r e t y b o n d o r i n s u r a n c e p o l i c y a s
d e s c r i b e d u n d e r " A P P E N D I X C S U M M A R Y O F C E R T A I N P R O V I S I O N S O F T H E
I N D E N T U R E - F u n d i n g a n d A p p l i c a t i o n o f B o n d R e s e r v e F u n d . "
( c ) T h e C o m m i s s i o n s h a l l p l a c e o n f i l e w i t h t h e T r u s t e e a C e r t i f i c a t e o f t h e
C o m m i s s i o n c e r t i f y i n g t h a t t h e a m o u n t o f S a l e s T a x R e v e n u e s a n d 1 9 8 8 S a l e s T a x R e v e n u e s
c o l l e c t e d d u r i n g t h e F i s c a l Y e a r f o r w h i c h a u d i t e d f i n a n c i a l s t a t e m e n t s a r e a v a i l a b l e p r e c e d i n g
t h e d a t e o n w h i c h s u c h a d d i t i o n a l S e r i e s o f B o n d s w i l l b e c o m e O u t s t a n d i n g s h a l l h a v e b e e n a t
l e a s t e q u a l t o 1 . 5 t i m e s M a x i m u m A n n u a l D e b t S e r v i c e o n a l l S e r i e s o f B o n d s a n d P a r i t y
O b l i g a t i o n s t h e n O u t s t a n d i n g a n d t h e a d d i t i o n a l S e r i e s o f B o n d s t h e n p r o p o s e d t o b e i s s u e d ,
w h i c h C e r t i f i c a t e s h a l l a l s o s e t f o r t h t h e c o m p u t a t i o n s u p o n w h i c h s u c h C e r t i f i c a t e i s b a s e d .
N o t h i n g i n t h e I n d e n t u r e s h a l l p r e v e n t o r b e c o n s t r u e d t o p r e v e n t t h e S u p p l e m e n t a l
I n d e n t u r e p r o v i d i n g f o r t h e i s s u a n c e o f a n a d d i t i o n a l S e r i e s o f B o n d s f r o m p l e d g i n g o r o t h e r w i s e
p r o v i d i n g , i n a d d i t i o n t o t h e s e c u r i t y g i v e n o r i n t e n d e d t o b e g i v e n b y t h e I n d e n t u r e , a d d i t i o n a l
s e c u r i t y f o r t h e b e n e f i t o f s u c h a d d i t i o n a l S e r i e s o f B o n d s o r a n y p o r t i o n t h e r e o f
I s s u a n c e o f R e f u n d i n g B o n d s . R e f u n d i n g B o n d s m a y b e a u t h o r i z e d a n d i s s u e d b y t h e
C o m m i s s i o n w i t h o u t c o m p l i a n c e w i t h t h e p r o v i s i o n s o f t h e I n d e n t u r e d e s c r i b e d a b o v e u n d e r
" I s s u a n c e o f A d d i t i o n a l S e r i e s o f B o n d s " a n d o t h e r t e r m s o f t h e I n d e n t u r e ; p r o v i d e d t h a t
M a x i m u m A n n u a l D e b t S e r v i c e o n a l l B o n d s a n d P a r i t y O b l i g a t i o n s O u t s t a n d i n g f o l l o w i n g t h e
i s s u a n c e o f s u c h R e f u n d i n g B o n d s i s l e s s t h a n o r e q u a l t o M a x i m u m A n n u a l D e b t S e r v i c e o n a l l
B o n d s a n d P a r i t y O b l i g a t i o n s O u t s t a n d i n g p r i o r t o t h e i s s u a n c e o f s u c h R e f u n d i n g B o n d s .
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Issuance of Parity Obligations. The Commission may also issue Parity Obligations
which will have, when issued, an equal lien and charge upon the Sales Tax Revenues, provided
that the conditions to the issuance of such Parity Obligations set forth in the Indenture are
satisfied, including satisfaction of the coverage test described in subsection (c) above under the
caption "Issuance of Additional Series of Bonds (unless such Parity Obligations are being issued
for refunding purposes, in which case the coverage test shall not apply)."
As defined in the Indenture, "Parity Obligations" means any indebtedness, installment
sale obligation, lease obligation or other obligation of the Commission for borrowed money, the
Initial Swap Agreements and any other Interest Rate Swap Agreement (excluding fees and
expenses and termination payments on Interest Rate Swap Agreements) entered into in
connection with a Series of Bonds, in each case incurred in accordance with the provisions of the
Indenture and having an equal lien and charge upon the Sales Tax Revenues and therefore being
payable on a parity with the Bonds (whether or not any Bonds are Outstanding).
The Commission's obligation to make regularly scheduled payments under the Initial
Swap Agreements constitutes a Parity Obligation under the Indenture.
Initial Swap Agreements
The Commission has entered into the following interest rate swap agreements
(collectively, the "Initial Swap Agreements"), in a combined notional amount of $185,000000,
which Initial Swap Agreements have an effective date of October 1, 2009 and expire on June 1,
2029:
a. An ISDA Master Agreement, dated as of August 22, 2006, between the Bank and
the Commission, as supplemented by the Schedule, dated as of August 22, 2006
and the confirmation of a transaction entered into on August 22, 2006 between the
Bank and the Commission (the "Bank Swap Agreement"); and
b. An ISDA Master Agreement, dated as of August 22, 2006, between Lehman
Brothers Derivative Products Inc. ("Lehman") and the Commission, as
supplemented by the Schedule, dated as of August 22, 2006 and the confirmation
of a transaction entered into on August 22, 2006 between Lehman and the
Commission (the "Lehman Swap Agreement").
The Commission's obligation to make regularly scheduled payments to the swap counterparties
under the Initial Swap Agreements is secured by Sales Tax Revenues on a parity basis with the
Commission's obligation to pay principal of and interest on the Series 2008 Bonds, and therefore
such obligation constitutes a Parity Obligation under the Indenture. The Commission's
obligation to make any early termination payment under the Initial Swap Agreements is secured
by a pledge of Sales Tax Revenues subordinate to the pledge of Sales Tax Revenues in favor of
the Series 2008 Bonds, Parity Obligations and payment of principal of and interest on
Subordinate Obligations.
The Bank Swap Agreement is in the notional amount of $100,000,000. Pursuant to this
agreement, the Commission has agreed to pay the Bank a floating rate equal to 67% of USD-
LIBOR (One Month) and the Bank has agreed to pay the Commission a fixed rate equal to
3.6790%. The Bank Swap Agreement is subject to early termination in the event that the
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u n e n h a n c e d r a t i n g s o n t h e S e r i e s 2 0 0 8 B o n d s i s s u e d b y M o o d y ' s a n d S & P f a l l b e l o w i n v e s t m e n t
g r a d e o r a r e w i t h d r a w n o r s u s p e n d e d ; a r e d u c t i o n i n t h e l o n g - t e r m u n s u b o r d i n a t e d r a t i n g s o f t h e
B a n k b e l o w i n v e s t m e n t g r a d e c a n a l s o r e s u l t i n a n e a r l y t e r m i n a t i o n o f t h e B a n k S w a p
A g r e e m e n t . T h e C o m m i s s i o n h a s t h e o p t i o n o f t e r m i n a t i n g t h e B a n k S w a p A g r e e m e n t u p o n t w o
B u s i n e s s D a y s ' n o t i c e p r o v i d e d i t h a s s u f f i c i e n t f u n d s t o p a y a n y e a r l y t e r m i n a t i o n a m o u n t .
T h e L e h m a n S w a p A g r e e m e n t i s i n t h e n o t i o n a l a m o u n t o f $ 8 5 , 0 0 0 , 0 0 0 . P u r s u a n t t o t h i s
a g r e e m e n t , t h e C o m m i s s i o n h a s a g r e e d t o p a y L e h m a n a f l o a t i n g r a t e e q u a l t o 6 7 % o f U S D -
L I B O R ( O n e M o n t h ) a n d L e h m a n h a s a g r e e d t o p a y t h e C o m m i s s i o n a f i x e d r a t e e q u a l t o
3 . 6 7 9 0 % . U n d e r c e r t a i n c i r c u m s t a n c e s , L e h m a n ' s r i g h t s a n d o b l i g a t i o n s u n d e r t h e L e h m a n
S w a p A g r e e m e n t c a n b e a s s i g n e d t o L e h m a n B r o t h e r s S p e c i a l F i n a n c i n g I n c . ( " L B S F " ) i n w h i c h
e v e n t L B S F ' s o b l i g a t i o n s w o u l d b e g u a r a n t e e d b y L e h m a n B r o t h e r s H o l d i n g s I n c . T h e L e h m a n
S w a p A g r e e m e n t i s s u b j e c t t o e a r l y t e r m i n a t i o n i n t h e e v e n t t h a t t h e u n e n h a n c e d r a t i n g s o n t h e
S e r i e s 2 0 0 8 B o n d s i s s u e d b y M o o d y ' s a n d S & P f a l l b e l o w i n v e s t m e n t g r a d e o r a r e w i t h d r a w n o r
s u s p e n d e d ; i f L B S F h a s b e e n s u b s t i t u t e d f o r L e h m a n , a r e d u c t i o n i n t h e u n e n h a n c e d u n s e c u r e d
s e n i o r d e b t r a t i n g s o f L e h m a n B r o t h e r s H o l d i n g s I n c . b e l o w i n v e s t m e n t g r a d e c a n a l s o r e s u l t i n
a n e a r l y t e r m i n a t i o n o f t h e L e h m a n S w a p A g r e e m e n t . T h e C o m m i s s i o n h a s t h e o p t i o n o f
t e r m i n a t i n g t h e L e h m a n S w a p A g r e e m e n t u p o n t w o B u s i n e s s D a y s ' n o t i c e p r o v i d e d i t h a s
s u f f i c i e n t f u n d s t o p a y a n y e a r l y t e r m i n a t i o n a m o u n t .
S u b o r d i n a t e O b l i g a t i o n s
T h e C o m m i s s i o n m a y i s s u e o b l i g a t i o n s ( " S u b o r d i n a t e O b l i g a t i o n s " ) p a y a b l e o u t o f S a l e s
T a x R e v e n u e s o n a b a s i s s u b o r d i n a t e t o t h e p a y m e n t o f t h e p r i n c i p a l , p r e m i u m , i n t e r e s t a n d
r e s e r v e f u n d r e q u i r e m e n t s f o r t h e B o n d s a n d a l l P a r i t y O b l i g a t i o n s , a s t h e s a m e b e c o m e d u e a n d
p a y a b l e . T h e N o t e s a n d t h e c r e d i t a g r e e m e n t s s u p p o r t i n g t h e N o t e s c o n s t i t u t e S u b o r d i n a t e
O b l i g a t i o n s u n d e r t h e I n d e n t u r e . T h e C o m m i s s i o n ' s o b l i g a t i o n t o m a k e e a r l y t e r m i n a t i o n
p a y m e n t s u n d e r t h e I n i t i a l S w a p A g r e e m e n t s i s s e c u r e d b y a p l e d g e o f t h e S a l e s T a x R e v e n u e s
s u b o r d i n a t e t o t h e p l e d g e i n f a v o r o f t h e S e r i e s 2 0 0 8 B o n d s , P a r i t y O b l i g a t i o n s a n d p a y m e n t o f
p r i n c i p a l o f a n d i n t e r e s t o n S u b o r d i n a t e O b l i g a t i o n s .
T H E S A L E S T A X
G e n e r a l
T h e A c t , a m o n g o t h e r t h i n g s , a u t h o r i z e s t h e C o m m i s s i o n t o d e v e l o p a c o u n t y w i d e
c o n s e n s u s o n a p r o p o s e d t r a n s a c t i o n e x p e n d i t u r e p l a n t o b e s u b m i t t e d t o t h e v o t e r s a s p a r t o f a n
o r d i n a n c e i m p o s i n g a r e t a i l t r a n s a c t i o n s a n d u s e t a x i n t h e C o u n t y i n a c c o r d a n c e w i t h t h e
p r o v i s i o n s o f t h e C a l i f o r n i a T r a n s a c t i o n s a n d U s e T a x L a w ( R e v e n u e a n d T a x a t i o n C o d e S e c t i o n
7 2 5 1 , e t . s e q . ) . I n a c c o r d a n c e w i t h t h e A c t , o n N o v e m b e r 5 , 2 0 0 2 , m o r e t h a n t w o - t h i r d s o f t h e
v o t e r s o f t h e C o u n t y v o t i n g o n t h e m e a s u r e a p p r o v e d M e a s u r e " A " , w h i c h a u t h o r i z e d t h e
i m p o s i t i o n o f t h e S a l e s T a x i n t h e C o u n t y c o m m e n c i n g i n J u l y 2 0 0 9 . T h e S a l e s T a x w i l l b e
c o l l e c t e d f o r a t h i r t y y e a r p e r i o d . T h e S a l e s T a x c o n s i s t s o f a o n e - h a l f o f o n e p e r c e n t ( 1 / 2 % )
s a l e s t a x o n t h e g r o s s r e c e i p t s o f r e t a i l e r s f r o m t h e s a l e o f t a n g i b l e p e r s o n a l p r o p e r t y s o l d i n t h e
c o u n t y a n d a u s e t a x a t t h e s a m e r a t e u p o n t h e s t o r a g e , u s e o r o t h e r c o n s u m p t i o n i n t h e c o u n t y o f
s u c h p r o p e r t y p u r c h a s e d f r o m a n y r e t a i l e r f o r s t o r a g e , u s e o r o t h e r c o n s u m p t i o n i n t h e c o u n t y ,
s u b j e c t t o c e r t a i n l i m i t e d e x c e p t i o n s d e s c r i b e d b e l o w .
1 9
1 1 4
The one-half of one percent sales tax imposed in the county for transportation purposes
and administered by the Commission, is in addition to a seven and one -quarter percent sales tax
levied statewide by the State of California. In general, the statewide sales tax applies to the gross
receipts of retailers from the sale of tangible personal property. The statewide use tax is imposed
on the storage, use or other consumption in the state of property purchased from a retailer for
such storage, use or other consumption. Since the use tax does not apply to cases where the sale
of the property is subject to the sales tax, the application of the use tax generally is to purchases
made outside of the state for use within the state.
The Sales Tax is generally imposed upon the same transactions and items subject to the
sales and use tax levied statewide by the state (hereinafter collectively referred to as the "State
Sales Tax"), with generally the same exceptions. Many categories of transactions are exempt
from the State Sales Tax and the Sales Tax. The most important of these exemptions are: sales
of food products for home consumption, prescription medicine, edible livestock and their feed,
seed and fertilizer used in raising food for human consumption, and gas, electricity and water
when delivered to consumers through mains, lines and pipes. In addition, "Occasional Sales"
(i.e., sales of property not held or used by a seller in the course of activities for which he or she is
required to hold a seller's permit) are generally exempt from the State Sales Tax and from the
Sales Tax; however, the "Occasional Sales" exemption does not apply to the sale of an entire
business and other sales of machinery and equipment used in a business. Sales of property to be
used outside the county which are shipped to a point outside the county, pursuant to the contract
of sale, by delivery to such point by the retailer, or by delivery by the retailer to a carrier for
shipment to a consignee, at such point, are exempt from the State Sales Tax and from the Sales
Tax.
Action by the State Legislature or by voter initiative could change the transactions and
items upon which the State Sales Tax and the Sales Tax are imposed. The State Legislature
could further change the transactions and items upon which the State Sales Tax and the Sales
Tax are imposed. In addition, other voter initiative measures could be adopted, further affecting
the receipt of sales tax revenues. Such changes or amendments could have either an adverse or
beneficial effect on the sales tax revenues. The Commission is not currently aware of any
proposed legislative change which would have a material adverse effect on sales tax revenues.
See also "INVESTMENT CONSIDERATIONS Proposition 218" below.
Collection of Sales Tax Revenues
Collection of the Sales Tax is administered by the California State Board of Equalization
(the 'BOE" or the "State Board of Equalization"). The Commission and the State Board of
Equalization have entered into an agreement for state administration of district transactions and
use taxes to authorize payment of Sales Tax Revenues directly to the Trustee. The State Board
of Equalization, after deducting amounts payable to itself, is required to remit the balance of
amounts received from the Sales Tax directly to the Trustee. The Trustee is required to apply the
Sales Tax Revenues to make deposits to the funds and accounts established under the Indenture
and to transfer the remaining amounts to U.S. Bank Trust National Association,, as issuing and
paying agent for the Notes (the "Issuing and Paying Agent"). The remaining unapptied Sales
Tax Revenues, if any, are transferred to the Commission for use for any purpose contemplated
by the ordinance. The fee charged by the BOE to the Commission for fiscal year 2006-07 for
collection of the 1988 Sales Tax was $1,395,000. The fee that the BOE is authorized to charge
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for collection of The Sales Tax is determined by State Legislation; there can be no assurances
that the amount of this fee or the method for determining the amount of the fee will be the same
in July 2009, when collection of the Sales Tax commences.
1988 Sales Tax Revenues
The 1988 Sales Tax (as defined below) represents an additional source of revenue to the
Commission, is a separate tax from the Sales Tax and does not secure the Series 2008 Bonds.
On November 8, 1988, more than two-thirds of the voters approved the Riverside County
Transportation Commission Transportation Expenditure Plan and Retail Transaction and Use
Tax Ordinance (the "Prior Ordinance") which authorized the imposition of a -retail transactions
and use tax of one-half of one percent (0.5%) of the gross receipts of retailers from the sales of
all tangible personal property sold at retail in the county and a use tax at the same rate upon the
storage, use or other consumption in the County of Riverside ("County") of such property
purchased from any retailer for storage, use or other consumption in the county, subject to
certain limited exceptions (the "1988 Sales Tax"). The 1988 Sales Tax ceases to be effective on
June 30, 2009, with major collection of the 1988 Sales Tax to be received by the Commission no
later than September 30, 2009.
The Commission has issued indebtedness secured by the 1988 Sales Tax and expects all
outstanding principal and interest on these obligations to be fully paid on or before June 1, 2009.
The Sales Tax does not serve as security for the repayment of the obligations secured by the
1988 Sales Tax.
The following table shows the 1988 Sales Tax remitted to the Commission during the
fiscal years ended June 30, 1997 through June 30, 2007.
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
HISTORICAL 1988 SALES TAX REVENUE RECEIPTS
Fiscal Year Net Sales % Change
Ended June 30 Tax Receipts") From Prior Fiscal Year
1997 $57,888,147 4.46
1998 63;496,222 9.69
1999 70,396,828 10.87
2000 81,543,732 15.83
2001 89,464,634 9.71
2002 94,400,890 5.52
2003 102,817,407 8.92
2004 117,632,722 14.41
2005 134,516,986 14.35
2006 155,206,029 15.38
2007 157,092,807 1.22
(1)
Net of State Board of Equalization administrative fee.
Source: The Commission
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The Series 2008 Bonds are not secured by 1988 Sales Tax Revenues.
Annual 1988 Sales Tax Revenues to be received as projected for the Fiscal Year ended
June 30, 2008, total $145,000,000. The projection of 1988 Sales Tax receipts for Fiscal Year
ended June 30, 2008 represents a 7.70% decline from Fiscal Year ended June 30, 2007. This
decline is higher than what is being experienced at the state and national level with regard to
sales tax receipts for this period. There can be no assurances if and when sales tax receipts will
begin to increase.
For a summary of historical taxable retail sales within the County see the table entitled
"County of Riverside, Taxable Sales Transactions" in APPENDIX B of this Official Statement.
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
General
The Commission is charged with a number of important responsibilities in serving the
residents of the County. Administering the prior sales tax program, which has raised more than
$1 billion, is by far the most prominent of these responsibilities. The Commission, which has the
responsibility of placing future transportation ballot measures before the public, was successful
in November 2002 in obtaining more than two-thirds voter approval of the Sales Tax.
In addition to the Commission's Measure A responsibilities, the Commission has also
been designated as the congestion management agency (the "CMA") for the County. As the
CMA, the Commission has developed a congestion management program that more effectively
utilizes transportation funds by linking land use, transportation and air quality efforts.
The Commission serves as the service authority for freeway emergencies and operates the
freeway service patrol (the "FSP") for the County. The results of these programs — 650 call
boxes along the County roadways and 20 FSP tow trucks providing assistance to more than
55,000 motorists annually — are among the most visible of the Commission's programs.
In 1998, the State Legislature gave new authority to the Commission by changing the
way funding is distributed from the State Transportation Improvement Program, which is funded
through state and federal gas taxes. In simple terms, counties no longer apply to the State for
funding their most urgent transportation needs. Instead, State transportation dollars are given
directly as an entitlement, leaving the decision -making about transportation spending up to the
designated county transportation commission like the Commission. While this gives the
Commission greater control over how transportation dollars are spent, it also requires a much
higher level of local communication and participation to determine how these dollars are spent
throughout a county with so many transportation needs. The Commission has the responsibility
to program funds received under the California Transportation Development Act, a statewide
source of funding for transit purposes, primarily to the County's major public transit providers,
although the Commission has no responsibility to provide transit services.
In order to enhance county -wide participation and improve its decision -making, the
Commission made a major change in its structure in 1999 by expanding the Board from eight
members to thirty. The expanded Commission ensures better representation throughout the
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C o u n t y a n d p r o v i d e s t h e p a r t i c i p a t o r y f r a m e w o r k f o r c o n t i n u e d s u c c e s s a m o n g t h e s e
r e s p o n s i b i l i t i e s .
C o m m i s s i o n e r s
S e c t i o n 1 3 0 0 5 3 o f t h e C a l i f o r n i a P u b l i c U t i l i t i e s C o d e s p e c i f i e s t h a t t h e C o m m i s s i o n
c o n s i s t s o f f i v e m e m b e r s o f t h e R i v e r s i d e C o u n t y B o a r d o f S u p e r v i s o r s , o n e m e m b e r f r o m e a c h
i n c o r p o r a t e d c i t y i n R i v e r s i d e C o u n t y ( e a c h o f w h o m m u s t b e a m a y o r o r m e m b e r o f t h e C i t y
C o u n c i l ) a n d o n e n o n - v o t i n g m e m b e r a p p o i n t e d b y t h e g o v e r n o r o f t h e S t a t e o f C a l i f o r n i a . T h e
r o l e o f t h e C o m m i s s i o n i s t o a c t a s t h e p o l i c y - m a k i n g b o a r d f o r R i v e r s i d e C o u n t y t r a n s p o r t a t i o n
a c t i v i t i e s .
E x e c u t i v e S t a f f
T h e C o m m i s s i o n ' s k e y s t a f f m e m b e r s , t h e p o s i t i o n h e l d b y e a c h a n d a b r i e f s t a t e m e n t o f
t h e b a c k g r o u n d o f e a c h s t a f f m e m b e r a r e s e t f o r t h b e l o w .
A N N E M A Y E R , E X E C U T I V E D I R E C T O R . A n n e M a y e r w a s a p p o i n t e d i n O c t o b e r
2 0 0 7 a s t h e C h i e f E x e c u t i v e O f f i c e r o f t h e C o m m i s s i o n . S h e i s r e s p o n s i b l e f o r o v e r a l l
m a n a g e m e n t o f t h e C o m m i s s i o n i n c l u d i n g e x e c u t i o n o f o p e r a t i o n a l p o l i c i e s a n d p r o c e d u r e s a n d
a l l p e r s o n n e l d e c i s i o n s . M s . M a y e r j o i n e d t h e C o m m i s s i o n i n M a y 2 0 0 5 a s D e p u t y E x e c u t i v e
D i r e c t o r . P r i o r t o j o i n i n g t h e C o m m i s s i o n , s h e w a s t h e D i s t r i c t 8 D i r e c t o r f o r t h e C a l i f o r n i a
D e p a r t m e n t o f T r a n s p o r t a t i o n ( C A L T R A N S ) . A s D i s t r i c t D i r e c t o r , s h e w a s r e s p o n s i b l e f o r
m a n a g e m e n t o f t h e s t a t e h i g h w a y s y s t e m i n S a n B e r n a r d i n o a n d R i v e r s i d e c o u n t i e s . W i t h o v e r
2 4 y e a r s o f e x p e r i e n c e i n t h e p u b l i c w o r k s f i e l d , M s . M a y e r w a s w i t h C A L T R A N S f o r 1 4 o f
t h o s e y e a r s . M s . M a y e r h o l d s a c i v i l e n g i n e e r i n g d e g r e e f r o m M i c h i g a n S t a t e U n i v e r s i t y .
J O H N S T A N D I F O R D , D E P U T Y E X E C U T I V E D I R E C T O R . I n J a n u a r y 2 0 0 8 , J o h n
S t a n d i f o r d w a s a p p o i n t e d a s D e p u t y E x e c u t i v e D i r e c t o r f o r t h e C o m m i s s i o n , h e j o i n e d t h e
C o m m i s s i o n i n 1 9 9 9 a n d w a s t h e P u b l i c A f f a i r s D i r e c t o r p r i o r t o h i s n e w a p p o i n t m e n t . H e a l s o
s e r v e d a s t h e M a n a g e r o f G o v e r n m e n t a n d M e d i a R e l a t i o n s f o r t h e O r a n g e C o u n t y
T r a n s p o r t a t i o n A u t h o r i t y , w h e r e h e w o r k e d f o r m o r e t h a n s e v e n y e a r s . E a r l i e r i n h i s c a r e e r , M r .
S t a n d i f o r d w o r k e d f o r t h r e e s t a t e l e g i s l a t o r s f r o m t h e L o s A n g e l e s a r e a . H e r e c e i v e d h i s
b a c h e l o r a n d m a s t e r s d e g r e e s f r o m t h e U n i v e r s i t y o f C a l i f o r n i a , I r v i n e .
T H E R E S I A T R E V I N O , C H I E F F I N A N C I A L O F F I C E R . M s . T r e v i n o j o i n e d t h e
C o m m i s s i o n a s t h e C h i e f F i n a n c i a l O f f i c e r i n J a n u a r y 2 0 0 4 . M s . T r e v i n o p r e v i o u s l y w o r k e d a s
M a n a g e r o f A c c o u n t i n g a n d F i n a n c i a l R e p o r t i n g f o r t h e O r a n g e C o u n t y T r a n s p o r t a t i o n
A u t h o r i t y . S h e a l s o s e r v e d a s a n a d j u n c t p r o f e s s o r f o r g o v e r n m e n t a l a c c o u n t i n g a n d r e p o r t i n g a t
t h e U n i v e r s i t y o f R e d l a n d s . M s . T r e v i n o ' s 1 9 - y e a r p u b l i c a c c o u n t i n g c a r e e r i n c l u d e d 1 6 y e a r s
w i t h E r n s t & Y o u n g L L P . A s S e n i o r M a n a g e r i n i t s A s s u r a n c e a n d A d v i s o r y B u s i n e s s S e r v i c e s
p r a c t i c e s e r v i n g g o v e r n m e n t c l i e n t s , s h e l e d t h e d e v e l o p m e n t o f t h e S o u t h e r n C a l i f o r n i a p r a c t i c e
a n d s e r v e d a s a n a t i o n a l t e c h n i c a l r e s o u r c e . S h e i s a C e r t i f i e d P u b l i c A c c o u n t a n t i n C a l i f o r n i a
a n d c o m p l e t e d t h e E x e c u t i v e M a n a g e m e n t P r o g r a m a t t h e U n i v e r s i t y o f C a l i f o r n i a , R i v e r s i d e .
M s . T r e v i n o r e c e i v e d a b a c h e l o r o f s c i e n c e d e g r e e i n a c c o u n t i n g f r o m L o y o l a M a r y m o u n t
U n i v e r s i t y w i t h M a g n a C u m L a u d e H o n o r s .
2 3
1 1 8
THE TRANSPORTATION EXPENDITURE PLAN
On November 5, 2002, 69.2 percent of the voters of the County approved Measure "A" —
The Riverside County Transportation Commission Transportation Expenditure Plan (the "Plan")
and Retail Transaction and Use Tax Ordinance which expressed the following concerns in its
preamble:
"The transportation system in Riverside County is rapidly deteriorating and our
population and economy are growing rapidly. Maintenance and repairs of existing roadways and
improvements to relieve congestion cannot be accomplished with available funds. Without
additional funds, the system will bog down and pavement will crumble into permanent
disrepair... Local governments must either generate revenues to expand our system and maintain
our investments or watch the system collapse and endanger the health, welfare and safety of all
Riverside County residents."
The goals of the Plan are as follows:
(1) Maintain and improve the quality of life in Riverside County by
supplementing existing funds for transportation;
(2) provide for accountability in the expenditure of taxpayer funds;
(3)
provide for equity in the distribution of Measure "A" Revenues; and
(4) provide for local control of the Transportation Improvement Program.
To address the concerns as expressed in the preamble, and to accomplish its goals and
policies, the ordinance provided that sales tax revenues be distributed to the specific geographic
areas of Riverside County (i.e., Western County, Coachella Valley, and Palo Verde Valley)
based on their proportionate share of revenues generated in the County, and that funds be
allocated for highway and regional arterial projects, local streets and roads, transit and commuter
rail, new corridors and economic development. In the Western County, $370 million is to be
used for new corridor projects, $1.020 million for highway projects, $300 million for regional
arterial projects, $390 million for public transit, $970 million for local street and road
improvements, $270 million for bond financing costs, and the remaining $40 million for
economic development projects. In the Coachella Valley, fifty percent is to be earmarked for its
highway and regional arterial system, thirty-five percent for local streets and roads, and the
remaining fifteen percent for transit. All Palo Verde Valley funds are designated for the
maintenance of local streets and roads.
INVESTMENT CONSIDERATIONS
Economy of the County and the State
The level of Sales Tax Revenues collected at any time is dependent upon the level of
retail sales within the County, which level of retail sales is, in turn, dependent upon the level of
economic activity in the County and in the State generally. The economy of the County is
currently experiencing a slowdown as evidenced by an increased unemployment rate, a
slowdown in total personal income and taxable sales, a drop in residential building permits, a
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i
decline in the rate of home sales and the median price of single-family homes and condominiums
and in increase in notices of default on mortgage loans secured by homes and condominiums.
Any substantial deterioration in the level of economic activity within the County or in the State
could have a material adverse impact upon the level of Sales Tax Revenues and therefore upon
the ability of the Commission to issue sales tax revenue bonds in the future. For information
relating to current economic conditions within the County and the State see "APPENDIX B -
COUNTY DEMOGRAPHIC AND ECONOMIC INFORMATION."
No Liquidity Facility
There is no initial or planned third -party liquidity facility supporting the purchase of the
Series 2008 Bonds. If the remarketing agents appointed by the Commission are unable to
remarket all the Series 2008 Bonds on the Initial Mandatory Tender Date, the Series 2008 Bonds
will continue to be owned by the then current Holders and will commence to bear interest at a
Weekly Rate of 11% per annum until such time as the Series 2008 Bonds are successfully
remarketed at a Daily Rate, Weekly Rate, Long -Term Rate, Commercial Paper Rate or Fixed
Rate. See "THE SERIES 2008 BONDS — Initial Rate Period" herein.
The Sales Tax
With limited exceptions, the Sales Tax will be imposed upon the same transactions and
items subject to the sales tax levied statewide by the State. The State Legislature or the voters
within the State, through the initiative process, could change or limit the transactions and items
upon which the statewide sales tax and the Sales Tax are imposed. Any such change or
limitation could have an adverse impact on the Sales Tax Revenues collected. For a further
description of the Sales Tax, see "THE SALES TAX."
Proposition 218
On November 5, 1996, voters in the State approved an initiative known as the Right to
Vote on Taxes Act ("Proposition 218"). Proposition 218 added Articles XIIIC and XIIID to the
California Constitution. Article XIIIC requires majority voter approval for the imposition,
extension or increase of general taxes and two-thirds voter approval for the imposition, extension
or increase of special taxes by a local government, which is defined to include local or regional
governmental agencies such as the Commission. The Sales Tax was approved by more than two-
thirds of the voters in Riverside County and is therefore in compliance with the requirements of
Proposition 218. Article XIIIC also removes limitations that may have applied to the voter
initiative power with regard to reducing or repealing previously authorized local taxes, even
previously voter -approved taxes like the Sales Tax. In the view of the Commission, however,
any attempt by the voters to use the initiative provisions of Proposition 218 to rescind or reduce
the levy and collection of the Sales Tax in a manner which would prevent the payment of debt
service on the Notes, would violate the Impairment Clause of the united States Constitution and,
accordingly, would be precluded. However, the interpretation and application of Proposition 218
will ultimately be determined by the courts.
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Further Initiatives
Proposition 218 was adopted as a measure that qualified for the ballot pursuant to
California's initiative process. From time to time other initiative measures could be adopted,
which may affect the Commission's ability to levy and collect the Sales Tax, or change the types
of products or items subject to a sales tax.
Loss of Tax Exemption
As discussed under "TAX MAI IERS," interest on the Series 2008 Bonds could become
includable in federal gross income, possibly from the date of issuance of the Series 2008 Bonds,
as a result of acts or omissions of the Commission subsequent to the issuance of the Series 2008
Bonds. Should interest become includable in federal gross income, the Series 2008 Bonds are
not subject to redemption by reason thereof and will remain outstanding until maturity.
FINANCIAL STATEMENTS
The financial statements of the Commission for the Fiscal Year ended June 30, 2007,
included in APPENDIX A of this Official Statement, have been audited by McGladrey & Pullen,
LLP, certified public accountants, as stated in their report therein. McGladrey & Pullen, LLP
was not requested to consent to the inclusion of its report in APPENDIX A, nor has it undertaken
to update its report or to take any action intended or likely to elicit information concerning the
accuracy, completeness or fairness of the statements made in this Official Statement, and no
opinion is expressed by McGladrey & Pullen, LLP with respect to any event subsequent to the
date of its report. Except as described herein, the Commission represents that there has been no
material adverse change in its financial position since June 30, 2007.
LITIGATION
There is not now pending any litigation restraining or enjoining the issuance or delivery
of the Series 2008 Bonds or questioning or affecting the validity of the Bonds or the proceedings
and authority under which they are to be issued. Neither the creation, organization or existence
of the Commission, nor the title of the present members of the Commission to their respective
offices, is being contested.
TAX MATTERS
In the opinion of Orrick, Herrington & Sutcliffe LLP, Bond Counsel to the Commission
("Bond Counsel"), based upon an analysis of existing laws, regulations, rulings and court
decisions, and assuming, among other matters, the accuracy of certain representations and
compliance with certain covenants, interest on the Series 2008 Bonds is excluded from gross
income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986
(the "Code") and is exempt from State of California personal income taxes. Bond Counsel is of
the further opinion that interest on the Series 2008 Bonds is not a specific preference item for
purposes of the federal individual or corporate alternative minimum taxes, although Bond
Counsel observes that such interest is included in adjusted current earnings when calculating
corporate alternative minimum taxable income. A complete copy of the proposed form of
opinion of Bond Counsel is set forth in Appendix E hereto.
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To the extent the issue price of any maturity of the Series 2008 Bonds is less than the
amount to be paid at maturity of such Series 2008 Bonds (excluding amounts stated to be interest
and payable at least annually over the term of such Series 2008 Bonds), the difference constitutes
"original issue discount," the accrual of which, to the extent properly allocable to each beneficial
owner thereof, is treated as interest on the Series 2008 Bonds which is excluded from gross
income for federal income tax purposes and State of California personal income taxes. For this
purpose, the issue price of a particular maturity of the Series 2008 Bonds is the first price at
which a substantial amount of such maturity of the Series 2008 Bonds is sold to the public
(excluding bond houses, brokers, or similar persons or organizations acting in the capacity of
underwriters, placement agents or wholesalers). The original issue discount with respect to any
maturity of the Series 2008 Bonds accrues daily over the term to maturity of such Series 2008
Bonds on the basis of a constant interest rate compounded semiannually (with straight-line
interpolations between compounding dates). The accruing original issue discount is added to the
adjusted basis of such Series 2008 Bonds to determine taxable gain or loss upon disposition
(including sale, redemption, or payment on maturity) of such Series 2008 Bonds. Beneficial
owners of the Series 2008 Bonds should consult their own tax advisors with respect to the tax
consequences of ownership of Series 2008 Bonds with original issue discount, including the
treatment of beneficial owners who do not purchase such Series 2008 Bonds in the original
offering to the public at the first price at which a substantial amount of such Series 2008 Bonds is
sold to the public.
The Series 2008 Bonds purchased, whether at original issuance or otherwise, for an
amount higher than their principal amount payable at maturity (or, in some cases, at their earlier
call date) ("Premium Series 2008 Bonds") will be treated as having amortizable bond premium.
No deduction is allowable for the amortizable bond premium in the case of bonds, like the
Premium Series 2008 Bonds, the interest on which is excluded from gross income for federal
income tax purposes. However, the amount of tax-exempt interest received, and a beneficial
owner's basis in a Premium Bond, will be reduced by the amount of amortizable bond premium
properly allocable to such beneficial owner. Beneficial owners of Premium Series 2008 Bonds
should consult their own tax advisors with respect to the proper treatment of amortizable bond
premium in their particular circumstances.
The Code impose various restrictions, conditions and requirements relating to the
exclusion from gross income for federal income tax purposes of interest on obligations such as
the Series 2008 Bonds. The Commission has made certain representations and covenanted to
comply with certain restrictions, conditions and requirements designed to ensure that interest on
the Series 2008 Bonds will not be included in federal gross income. Inaccuracy of these
representations or failure to comply with these covenants may result in interest on the Series
2008 Bonds being included in gross income for federal income tax purposes, possibly from the
date of original issuance of the Series 2008 Bonds. The opinion of Bond Counsel assumes the
accuracy of these representations and compliance with these covenants. Bond Counsel has not
undertaken to determine (or to inform any person) whether any actions taken (or not taken), or
events occurring (or not occurring), or any other matters coming to Bond Counsel's attention
after the date of issuance of the Series 2008 Bonds may adversely affect the value of, or the tax
status of interest on, the Series 2008 Bonds. Accordingly, the opinion of Bond Counsel is not
intended to, and may not, be relied upon in connection with any such actions, events or matters.
Although Bond Counsel is of the opinion that interest on the Series 2008 Bonds is
excluded from gross income for federal income tax purposes and is exempt from State of
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California personal income taxes, the ownership or disposition of, or the accrual or receipt of
interest on, the Series 2008 Bonds may otherwise affect a beneficial owner's federal, state or
local tax liability. The nature and extent of these other tax consequences depends upon the
particular tax status of the beneficial owner or the beneficial owner's other items of income or
deduction. Bond Counsel expresses no opinion regarding any such other tax consequences.
Future legislative proposals, if enacted into law, clarification of the Code or court
decisions may cause interest on the Series 2008 Bonds to be subject, directly or indirectly, to
federal income taxation or to be subject to or exempted from state income taxation, or otherwise
prevent beneficial owners from realizing the full current benefit of the tax status of such interest.
As one example, on November 5, 2007, the United States Supreme Court heard an appeal from a
Kentucky state court which ruled that the United States Constitution prohibited the state from
providing a tax exemption for interest on bonds issued by the state and its political subdivisions
but taxing interest on obligations issued by other states and their political subdivisions. The
introduction or enactment of any such future legislative proposals, clarification of the Code or
court decisions may also affect the market price for, or marketability of, the Series 2008 Bonds.
Prospective purchasers of the Series 2008 Bonds should consult their own tax advisors regarding
any pending or proposed federal or state tax legislation, regulations or litigation, as to which
Bond Counsel expresses no opinion.
The opinion of Bond Counsel is based on current legal authority, covers certain matters
not directly addressed by such authorities, and represents Bond Counsel's judgment as to the
proper treatment of the Series 2008 Bonds for federal income tax purposes. It is not binding on
the Internal Revenue Service ("IRS") or the courts. Furthermore, Bond Counsel cannot give and
has not given any opinion or assurance about the future activities of the Commission or about the
effect of future changes in the Code, the applicable regulations, the interpretation thereof or the
enforcement thereof by the IRS. The Commission has covenanted, however, to comply with the
requirements of the Code.
Bond Counsel's engagement with respect to the Series 2008 Bonds ends with the
issuance of the Series 2008 Bonds, and, unless separately engaged, Bond Counsel is not
obligated to defend the Commission or the beneficial owners regarding the tax-exempt status of
the Series 2008 Bonds in the event of an audit examination by the IRS. Under current
procedures, parties other than the Commission and their appointed counsel, including the
beneficial owners, would have little, if any, right to participate in the audit examination process.
Moreover, because achieving judicial review in connection with an audit examination of tax-
exempt bonds is difficult, obtaining an independent review of IRS positions with which the
Commission legitimately disagrees, may not be practicable. Any action of the IRS, including but
not limited to selection of the Series 2008 Bonds for audit, or the course or result of such audit,
or an audit of bonds presenting similar tax issues may affect the marketprice for, or the
marketability of, the Series 2008 Bonds, and may cause the Commission or the beneficial owners
to incur significant expense.
CERTAIN LEGAL MATTERS
Orrick, Herrington & Sutcliffe LLP, Bond Counsel, will render an opinion with respect to
the validity of the Series 2008 Bonds. The proposed form of such approving opinion is attached
hereto as APPENDIX E. Bond Counsel assumes no responsibility for the accuracy,
completeness, or faimess of this Official Statement. Compensation paid to Bond Counsel,
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"
"
D i s c l o s u r e C o u n s e l a n d U n d e r w r i t e r s ' C o u n s e l i s c o n d i t i o n e d u p o n t h e s u c c e s s f u l i s s u a n c e o f
t h e S e r i e s 2 0 0 8 B o n d s . C e r t a i n l e g a l m a t t e r s w i l l b e p a s s e d u p o n f o r t h e C o m m i s s i o n b y
N o s s a m a n , G u t h n e r , K n o x & E l l i o t t , L L P , L o s A n g e l e s , C a l i f o r n i a , a s d i s c l o s u r e c o u n s e l , a n d b y
B e s t B e s t & K r i e g e r L L P , R i v e r s i d e , C a l i f o r n i a , t h e g e n e r a l c o u n s e l f o r t h e C o m m i s s i o n .
C e r t a i n l e g a l m a t t e r s w i l l b e p a s s e d u p o n f o r t h e U n d e r w r i t e r s b y S t r a d l i n g , Y o c c a , C a r l s o n &
R a u t h , N e w p o r t B e a c h , C a l i f o r n i a .
R A T I N G S
T h e S e r i e s 2 0 0 8 B o n d s h a v e b e e n a s s i g n e d r a t i n g s o f " " b y M o o d y ' s I n v e s t o r s
S e r v i c e , I n c . , " " b y F i t c h R a t i n g s a n d " " b y S t a n d a r d & P o o r ' s R a t i n g s G r o u p , a d i v i s i o n
o f t h e M c G r a w H i l l C o m p a n i e s , I n c . T h e s e r a t i n g s r e f l e c t o n l y t h e v i e w s o f t h e r a t i n g a g e n c i e s ,
a n d d o n o t c o n s t i t u t e a r e c o m m e n d a t i o n t o b u y , s e l l o r h o l d s e c u r i t i e s . T h e C o m m i s s i o n h a s
f u r n i s h e d t o t h e r a t i n g a g e n c i e s c e r t a i n i n f o r m a t i o n r e s p e c t i n g t h e S e r i e s 2 0 0 8 B o n d s a n d t h e
C o m m i s s i o n . G e n e r a l l y , r a t i n g a g e n c i e s b a s e t h e i r r a t i n g s o n s u c h i n f o r m a t i o n a n d m a t e r i a l s a n d
t h e i r o w n i n v e s t i g a t i o n s , s t u d i e s a n d a s s u m p t i o n s . T h e r a t i n g s a r e s u b j e c t t o r e v i s i o n o r
w i t h d r a w a l a t a n y t i m e b y t h e r a t i n g a g e n c i e s , a n d t h e r e i s n o a s s u r a n c e t h a t t h e r a t i n g s w i l l
c o n t i n u e f o r a n y p e r i o d o f t i m e o r t h a t t h e y w i l l n o t b e l o w e r e d o r w i t h d r a w n . A n y r e d u c t i o n o r
w i t h d r a w a l o f t h e r a t i n g s m a y h a v e a n a d v e r s e e f f e c t o n t h e m a r k e t p r i c e o f t h e S e r i e s 2 0 0 8
B o n d s o r t h e a b i l i t y t o r e m a r k e t t h e S e r i e s 2 0 0 8 B o n d s .
U N D E R W R I T I N G
L e h m a n B r o t h e r s I n c . , a s r e p r e s e n t a t i v e o f t h e u n d e r w r i t e r s o f t h e S e r i e s 2 0 0 8 B o n d s , h a s
a g r e e d , s u b j e c t t o c e r t a i n c o n d i t i o n s , t o p u r c h a s e t h e S e r i e s 2 0 0 8 B o n d s a t a p r i c e o f $
( r e p r e s e n t i n g $ a g g r e g a t e p r i n c i p a l a m o u n t o f t h e S e r i e s 2 0 0 8 B o n d s , { p l u s / l e s s ]
o r i g i n a l i s s u e [ p r e m i u m / d i s c o u n t ] o f $ a n d l e s s $ U n d e r w r i t e r s '
d i s c o u n t ) . T h e P u r c h a s e C o n t r a c t p r o v i d e s t h a t t h e U n d e r w r i t e r s w i l l p u r c h a s e a l l t h e S e r i e s
2 0 0 8 B o n d s i f a n y a r e p u r c h a s e d .
F I N A N C I A L A D V I S O R
T h e C o m m i s s i o n h a s r e t a i n e d F i e l d m a n , R o l a p p & A s s o c i a t e s , I r v i n e , C a l i f o r n i a , a s
F i n a n c i a l A d v i s o r i n c o n n e c t i o n w i t h t h e a u t h o r i z a t i o n a n d d e l i v e r y o f t h e S e r i e s 2 0 0 8 B o n d s .
C o m p e n s a t i o n p a i d t o t h e F i n a n c i a l A d v i s o r i s c o n d i t i o n e d o n t h e s u c c e s s f u l i s s u a n c e o f t h e
S e r i e s 2 0 0 8 B o n d s .
C O N T I N U I N G D I S C L O S U R E
T h e C o m m i s s i o n h a s c o v e n a n t e d f o r t h e b e n e f i t o f t h e o w n e r s a n d b e n e f i c i a l o w n e r s o f
t h e S e r i e s 2 0 0 8 B o n d s t o p r o v i d e c e r t a i n f i n a n c i a l i n f o r m a t i o n a n d o p e r a t i n g d a t a r e l a t i n g t o t h e
C o m m i s s i o n b y n o t l a t e r t h a n 2 1 0 d a y s f o l l o w i n g t h e e n d o f t h e C o m m i s s i o n ' s F i s c a l Y e a r
( p r e s e n t l y J u n e 3 0 ) ( t h e " A n n u a l R e p o r t " ) , c o m m e n c i n g w i t h t h e r e p o r t f o r t h e 2 0 0 7 - 0 8 F i s c a l
Y e a r , a n d t o p r o v i d e n o t i c e s o f t h e o c c u r r e n c e o f c e r t a i n e n u m e r a t e d e v e n t s , i f m a t e r i a l . T h e
A n n u a l R e p o r t w i l l b e f i l e d b y t h e D i s s e m i n a t i o n A g e n t o n b e h a l f o f t h e C o m m i s s i o n w i t h e a c h
N a t i o n a l l y R e c o g n i z e d M u n i c i p a l S e c u r i t i e s I n f o r m a t i o n R e p o s i t o r y ( t h e " N R M S I R s " ) . T h e
n o t i c e s o f m a t e r i a l e v e n t s w i l l b e f i l e d b y t h e D i s s e m i n a t i o n A g e n t o n b e h a l f o f t h e C o m m i s s i o n
w i t h t h e M u n i c i p a l S e c u r i t i e s R u l e m a k i n g B o a r d a n d w i t h t h e N R M S I R s . T h e s p e c i f i c n a t u r e o f
t h e i n f o r m a t i o n t o b e c o n t a i n e d i n t h e A n n u a l R e p o r t a n d t h e n o t i c e s o f m a t e r i a l e v e n t s i s s e t
f o r t h u n d e r t h e c a p t i o n " A P P E N D I X F P R O P O S E D F O R M O F C O N T I N U I N G
2 9
1 2 4
DISCLOSURE CERTIFICATE." These covenants have been made in order to assist the
Underwriters in complying with Securities and Exchange Commission Rule 15c2-12(b)(5). The
Commission is in compliance with all continuing disclosure requirements applicable to its
securities.
MISCELLANEOUS
The references herein to the Act and the Indenture are brief outlines of certain provisions
thereof. Such outlines do not purport to be complete and for full and complete statements of
such provisions reference is made to said documents or the Act, as the case may be. Copies of
the documents mentioned under this heading are available for inspection at the Commission and
following delivery of the Series 2008 Bonds will be on file at the offices of the Trustee in Los
Angeles, California.
References are made herein to certain documents and reports which are brief summaries
thereof which do not purport go be complete or definitive. Reference is made to such documents
and reports for full and complete statements of the content thereof.
Any statement in this Official Statement involving matters of opinion, whether or not
expressly so stated, are intended as such and not as representations of fact. This Official
Statement is not to be construed as a contract or agreement between the Commission and the
purchasers or Holders of any of the Series 2008 Bonds.
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"
T h e e x e c u t i o n a n d d e l i v e r y o f t h i s O f f i c i a l S t a t e m e n t h a s b e e n d u l y a u t h o r i z e d b y t h e
C o m m i s s i o n .
R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N
C O M M I S S I O N
B y :
3 1
1 2 6
E x e c u t i v e D i r e c t o r
APPENDIX A
COMMISSION AUDITED FINANCIAL STATEMENTS FOR
FISCAL YEAR ENDED JUNE 30, 2007
A-1
127
"
"
"
A P P E N D I X B
C O U N T Y D E M O G R A P H I C A N D E C O N O M I C I N F O R M A T I O N
S e t f o r t h b e l o w i s c e r t a i n d e m o g r a p h i c a n d e c o n o m i c i n f o r m a t i o n w i t h r e s p e c t t o t h e C o u n t y o f
R i v e r s i d e ( t h e " C o u n t y " ) . S u c h i n f o r m a t i o n w a s p r o v i d e d b y t h e C o u n t y e x c e p t a s o t h e r w i s e i n d i c a t e d .
P o p u l a t i o n
A c c o r d i n g t o t h e S t a t e D e p a r t m e n t o f F i n a n c e , D e m o g r a p h i c R e s e a r c h U n i t , t h e C o u n t y ' s
p o p u l a t i o n w a s e s t i m a t e d a t 2 , 0 3 1 , 6 2 5 a s o f J a n u a r y 1 , 2 0 0 7 , r e f l e c t i n g a 3 . 3 % i n c r e a s e o v e r J a n u a r y 1 ,
2 0 0 6 .
T h e l a r g e s t c i t i e s i n t h e C o u n t y a r e t h e c i t i e s o f R i v e r s i d e , M o r e n o V a l l e y , C o r o n a , M u r r i e t a ,
T e m e c u l a , H e m e t , I n d i o a n d C a t h e d r a l C i t y . T h e a r e a s o f m o s t r a p i d p o p u l a t i o n g r o w t h c o n t i n u e t o b e
t h o s e m o r e p o p u l a t e d a n d i n d u s t r i a l i z e d c i t i e s i n t h e w e s t e r n a n d c e n t r a l r e g i o n s o f t h e C o u n t y a n d t h e
s o u t h w e s t e r n u n i n c o r p o r a t e d r e g i o n o f t h e C o u n t y b e t w e e n S u n C i t y a n d T e m e c u l a .
T h e f o l l o w i n g t a b l e s e t s f o r t h a n n u a l p o p u l a t i o n f i g u r e s a s o f J a n u a r y 1 o f e a c h y e a r f o r c i t i e s
l o c a t e d w i t h i n t h e C o u n t y f o r e a c h o f t h e y e a r s l i s t e d :
B - 1
1 2 8
"
C O U N T Y O F R I V E R S I D E
P O P U L A T I O N O F C I T I E S W I T H I N T H E C O U N T Y
( A s o f J a n u a r y 1 )
C I T Y 1 9 9 0 2 0 0 0 2 0 0 4
2 0 0 5
2 0 0 6 2 0 0 7
B a n n i n g 2 0 , 5 7 0 2 3 , 5 6 2 2 7 , 6 6 7 2 8 , 1 3 0 2 8 , 1 2 8 2 8 , 2 7 2
B e a u m o n t 9 , 6 8 5 1 1 , 3 8 4 1 6 , 6 3 1 1 9 , 1 0 5 2 3 , 1 4 5 2 8 , 2 5 0
B l y t h e 8 , 4 2 8 1 2 , 1 5 5 2 2 , 1 9 7 2 2 , 0 8 9 2 2 , 1 7 9 2 2 , 6 2 5
C a l i m e s a 7 , 1 3 9 7 , 4 7 7 7 , 4 8 2 7 , 4 1 5 7 , 4 1 4
C a n y o n L a k e 9 , 9 5 2 1 0 , 8 4 7 1 0 , 9 8 1 1 0 , 9 3 9 1 0 , 9 6 9
C a t h e d r a l C i t y 3 0 , 0 8 5 4 2 , 6 4 7 4 9 , 4 4 7 5 0 , 9 5 7 5 1 , 0 8 1 5 2 , 1 1 5
C o a c h e l l a 1 6 , 8 9 6 2 2 , 7 2 4 2 8 , 1 4 4 3 0 , 9 6 4 3 5 , 2 0 7 3 8 , 4 8 6
C o r o n a 7 6 , 0 9 5 1 2 4 , 9 6 6 1 4 4 , 2 5 4 1 4 4 , 9 9 2 1 4 4 , 6 6 1 1 4 6 , 1 6 4
D e s e r t H o t S p r i n g s 1 1 , 6 6 8 1 6 , 5 8 2 1 8 , 0 0 0 1 9 , 5 0 7 2 2 , 0 1 1 2 3 , 5 4 4
H e m e t 3 6 , 0 9 4 5 8 , 8 1 2 6 4 , 8 8 0 6 6 , 8 7 3 6 9 , 5 4 4 7 1 , 7 0 5
I n d i a n W e l l s 2 , 6 4 7 3 , 8 1 6 4 , 5 1 2 4 , 8 1 0 4 , 8 6 5 4 , 9 4 2
I n d i o 3 6 , 7 9 3 4 9 , 1 1 6 6 0 , 1 6 7 6 6 , 5 3 9 7 1 , 6 5 4 7 7 , 1 4 6
L a k e E l s i n o r e 1 8 , 2 8 5 2 8 , 9 2 8 3 5 , 9 8 3 3 8 , 2 8 9 4 0 , 9 8 5 4 7 , 6 3 4
L a Q u i n t a 1 1 , 2 1 5 2 3 , 6 9 4 3 3 , 0 9 9 3 6 , 3 7 7 3 8 , 3 4 0 4 1 , 0 9 2
M o r e n o V a l l e y 1 1 8 , 7 7 9 1 4 2 , 3 8 1 1 5 7 , 8 4 2 1 6 6 , 3 8 5 1 7 4 , 5 6 5 1 8 0 , 4 6 6
M u r r i e t a 4 4 , 2 8 2 7 9 , 0 3 7 8 5 , 6 4 8 9 2 , 9 3 3 9 7 , 2 5 7
N o r c o 2 3 , 3 0 2 2 4 , 1 5 7 2 5 , 8 5 9 2 6 , 8 4 6 2 7 , 2 6 3 2 7 , 3 6 1
P a l m D e s e r t 2 3 , 2 5 2 4 1 , 1 5 5 4 5 , 6 0 4 4 9 , 5 9 5 4 9 , 5 3 9 4 9 , 7 5 2
P a l m S p r i n g s 4 0 , 1 8 1 4 2 , 8 0 7 4 5 , 0 3 3 4 6 , 0 0 0 4 6 , 4 3 7 4 8 , 8 5 8
P e r r i s 2 1 , 4 6 0 3 6 , 1 8 9 4 2 , 0 4 3 4 4 , 8 8 0 4 7 , 1 3 9 5 0 , 6 6 3
R a n c h o M i r a g e 9 , 7 7 8 1 3 , 2 4 9 1 5 , 7 8 7 1 6 , 5 2 0 1 6 , 6 7 2 1 6 , 9 4 4
R i v e r s i d e 2 2 6 , 5 0 5 2 5 5 , 1 6 6 2 8 1 , 7 7 5 2 8 7 , 3 2 1 2 8 7 , 8 2 0 2 9 1 , 3 9 8
S a n J a c i n t o 1 6 , 2 1 0 2 3 , 7 7 9 2 7 , 1 9 4 2 8 , 6 1 8 3 1 , 0 6 6 3 4 , 3 4 5
T e m e c u l a 2 7 . 0 9 9 5 7 , 7 1 6 7 8 . 8 3 1 8 1 9 2 1 9 3 , 9 2 3 9 7 , 9 3 5
T O T A L S
I n c o r p o r a t e d 3 8 5 , 3 8 6 1 , 1 2 4 , 6 6 6 1 , 3 2 0 , 7 7 1 1 , 3 7 8 , 8 6 1 1 , 4 4 7 , 2 4 4 1 , 4 9 3 , 3 3 7
U n i n c o r p o r a t e d 7 8 5 , 0 2 7 4 2 0 , 7 2 1 4 8 4 . 7 4 8 5 0 6 , 7 6 6 5 1 9 , 3 6 3 5 3 8 , 2 8 8
C o u n t y - W i d e 1 , 1 7 0 , 4 1 3 1 , 5 4 5 , 3 8 7 1 , 8 0 5 , 5 1 9 1 , 8 8 5 , 6 2 7 1 , 9 6 6 , 6 0 7 2 , 0 3 1 , 6 2 5
C a l i f o r n i a 2 9 , 4 7 3 , 0 0 0 3 3 , 8 7 3 , 0 8 6 3 6 , 2 5 2 , 8 7 8 3 6 , 7 4 3 , 1 8 6 3 7 , 1 9 5 , 2 4 0 3 7 , 6 6 2 , 5 1 8
S o u r c e : U . S . C e n s u s B u r e a u , e x c e p t t h a t 2 0 0 4 , 2 0 0 5 , 2 0 0 6 a n d 2 0 0 7 d a t a i s f r o m t h e S t a t e D e p a r t m e n t o f F i n a n c e ,
D e m o g r a p h i c R e s e a r c h U n i t ( w i t h 2 0 0 0 D R U B e n c h m a r k ) .
E f f e c t i v e B u y i n g I n c o m e
" E f f e c t i v e B u y i n g I n c o m e " i s d e f i n e d a s p e r s o n a l i n c o m e l e s s p e r s o n a l t a x a n d n o n t a x p a y m e n t s ,
a n u m b e r o f t e n r e f e r r e d t o a s " d i s p o s a b l e " o r " a f t e r - t a x " i n c o m e . P e r s o n a l i n c o m e i s t h e a g g r e g a t e o f
w a g e s a n d s a l a r i e s , o t h e r t h a n l a b o r - r e l a t e d i n c o m e ( s u c h a s e m p l o y e r c o n t r i b u t i o n s t o p r i v a t e p e n s i o n
f u n d s ) , p r o p r i e t o r ' s i n c o m e , r e n t a l i n c o m e ( w h i c h i n c l u d e s i m p u t e d r e n t a l i n c o m e o f o w n e r - o c c u p a n t s o f
n o n - f a r m d w e l l i n g s ) , d i v i d e n d s p a i d b y c o r p o r a t i o n s , i n t e r e s t i n c o m e f r o m a l l s o u r c e s a n d t r a n s f e r
p a y m e n t s ( s u c h a s p e n s i o n s a n d w e l f a r e a s s i s t a n c e ) . D e d u c t e d f r o m t h i s t o t a l a r e p e r s o n a l t a x e s ( f e d e r a l ,
s t a t e a n d l o c a l , n o n t a x p a y m e n t s f i n e s , f e e s , p e n a l t i e s , e t c . ) a n d p e r s o n a l c o n t r i b u t i o n s t o s o c i a l s e c u r i t y
i n s u r a n c e a n d f e d e r a l r e t i r e m e n t p a y r o l l d e d u c t i o n s . A c c o r d i n g t o U . S . g o v e r n m e n t d e f i n i t i o n s , t h e
r e s u l t a n t f i g u r e i s c o m m o n l y k n o w n a s " d i s p o s a b l e p e r s o n a l i n c o m e . "
T h e f o l l o w i n g t a b l e s u m m a r i z e s t h e t o t a l e f f e c t i v e b u y i n g i n c o m e f o r t h e C o u n t y a n d t h e S t a t e
f o r t h e p e r i o d 2 0 0 1 t h r o u g h 2 0 0 7 .
B - 2
1 2 9
RIVERSIDE COUNTY AND CALIFORNIA
TOTAL EFFECTIVE BUYING INCOME,
MEDIAN HOUSEHOLD EFFECTIVE BUYING INCOME AND
PERCENT OF HOUSEHOLDS WITH INCOMES OVER $50,000(1)
Total Median Household Percent of Households
Effective Buying Effective Buying with
Income(2) Income Income over $50,000
2001
Riverside County $ 25,144,120 $39,293 38.1%
California 652,190,282 44,464 44.3
2002
Riverside County 23,617,301
California 650,521,407
2003
Riverside County 25,180,040
California 647,879,427
2004
Riverside County 27,623,743
California 674,721,020
2005
Riverside County 29,468,208
California 705,108,410
2006
Riverside County 32,004,418
California 720,799,048
2007
Riverside County 35,656,620
California 764,120,982
37,480
43,532
38,691
42,484
39,321
42,924
40,275
43,915
41,326
44,681
43,490
46,275
31.9
41.9
34.8
40.5
36.0
41.2
37.1
42.5
38.9
43.7
41.8
45.6
Source: "Survey of Buying Power," Sales & Marketing Management Magazine, dated 2001, 2002, 2003
and 2004 and 2005, and Demographics USA, Trade Dimensions for 2006 and 2007.
(1) Estimated.
(2) Dollars in thousands.
Industry and Employment
The County is a part of the Riverside -San Bernardino Primary Metropolitan Statistical Area
("PMSA"), which includes all of Riverside and San Bernardino Counties. In addition to varied
manufacturing employment, the Riverside -San Bernardino PMSA has large and growing commercial and
service sector employment, as reflected in the following table.
B-3
130
"
I N D U S T R Y
R I V E R S I D E - S A N B E R N A R D I N O - O n t a r i o P M S A
A N N U A L A V E R A G E E M P L O Y M E N T ( ' )
( I n T h o u s a n d s )
2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7
A g r i c u l t u r e 2 0 . 3 2 0 . 3 1 8 . 7 1 8 . 3 1 7 . 2 1 6 . 8
C o n s t r u c t i o n 9 0 . 9 9 9 . 0 1 1 1 . 8 1 2 3 . 3 1 2 9 . 5 1 1 2 . 8
F i n a n c e , I n s u r a n c e
a n d R e a l E s t a t e 3 9 . 5 4 2 . 6 4 5 . 7 4 9 . 0 5 1 . 8 5 0 . 1
G o v e r n m e n t 2 1 2 . 7 2 1 1 . 6 2 1 2 . 5 2 2 0 . 4 2 2 4 . 2 2 2 5 . 7
M a n u f a c t u r i n g : 1 1 5 . 4 1 1 6 . 1 1 2 0 . 1 1 2 1 . 0 1 2 4 . 0 1 1 8 . 9
N o n d u r a b l e s 3 3 . 4 3 3 . 7 3 4 . 6 3 5 . 0 3 6 . 4 3 6 . 4
D u r a b l e s 8 2 . 0 8 2 . 4 8 5 . 5 8 6 . 1 8 7 . 6 8 2 . 5
N a t u r a l R e s o u r c e s
a n d M i n i n g 1 . 2 1 . 2 1 . 2 1 . 4 1 . 4 1 . 4
R e t a i l T r a d e 1 3 7 . 5 1 4 2 . 7 1 5 3 . 8 1 6 5 . 7 1 7 1 . 5 1 7 5 . 4
P r o f . , E d u c . a n d o t h e r
S e r v i c e s 3 6 4 . 5 3 7 8 . 6 3 9 9 . 9 4 1 6 . 5 4 3 6 . 2 4 4 6 . 3
T r a n s . , W h s e . a n d
U t i l i t i e s 4 6 . 8 5 0 . 1 5 5 . 5 6 0 . 2 6 3 . 8 6 6 . 7
W h o l e s a l e T r a d e 4 1 . 9 4 3 . 5 4 5 . 6 4 9 . 9 5 3 . 8 5 6 . 4
I n f o r m a t i o n , P u b . a n d
T e l e c o m . 1 4 . 1 1 3 . 9 1 4 . 0 1 4 . 5 1 5 . 2 1 5 . 2
T o t a l , A l l I n d u s t r i e s
1 , 0 8 4 . 8 1 , 1 1 9 . 4
1 , 1 7 8 . 7 1 , 2 4 0 . 3
1 , 2 8 8 . 4 1 , 2 8 5 . 5
S o u r c e : S t a t e E m p l o y m e n t D e v e l o p m e n t D e p a r t m e n t , L a b o r M a r k e t I n f o r m a t i o n D i v i s i o n .
( 1 ) T h e e m p l o y m e n t f i g u r e s b y I n d u s t r y w h i c h a r e s h o w n a b o v e a r e n o t d i r e c t l y c o m p a r a b l e t o t h e " T o t a l ,
A l l I n d u s t r i e s " e m p l o y m e n t f i g u r e s d u e t o r o u n d e d d a t a .
B - 4
1 3 1
2007:
The following table sets forth certain of the ten major employers located in the County as of
COUNTY OF RIVERSIDE
CERTAIN MAJOR EMPLOYERS(1)
(2007)
Company Name
The County of Riverside
March Air Reserve Base
University of California, Riverside
Stater Brothers Markets
Pechanga Resort & Casino
Abbott Vascular
Riverside Unified School District
Riverside Community College District
Kaiser Permanente'Riverside Med. Center
Temecula Valley USD
Product/Service
County Government
Government/Military
College/University
Grocery Retailer
Casino/Resort
Medical Device
Manufacturer
Education
Higher Education
Health Care
Education
No. of Local
Employees(2)
19,595
8,400
6,657
6,425
4,800
4,500
4,041
3,753
3,200
2,952
Source: The Business Press 2008 Book of Lists.
(1) Certain major employers in the County may have been excluded because of the data collection methodology
used by The Business Press.
(2) Includes employees within the County; includes, under certain circumstances, temporary, seasonal and per diem
employees.
Unemployment statistics for the County, the State and the United States are set forth in the
following table.
COUNTY OF RIVERSIDE
COUNTY, STA 1'E AND NATIONAL UNEMPLOYMENT DATA
County(l)
California(')
United States
2002 2003 2004 2005 2006 2007
6.4%
6.7
5.9
6.3%
6.8
6.0
5.7%
6.2
5.5
5.1%
5.4
5.1
5.0%
4.9
4.6
6.2%
5A
4.6
Source: State of California Employment Development Department Labor Market Information Division;
U.S. Bureau of Labor Statistics.
(1) Data is not seasonally adjusted. The unemployment data for the County and State is calculated
using unrounded data.
Commercial Activity
Commercial activity is an important factor in the County's economy. Much of the County's
commercial activity is concentrated in central business districts or small neighborhood commercial
centers in cities. There are nine regional shopping malls in the County: Riverside Plaza, Galleria at Tyler
(Riverside), Palm Springs Mall, Desert Fashion Mall, Indio Fashion Mall, Hemet Valley Mall, Palm
Desert Town Center, Moreno Valley Mall at Towngate and Temecula Promenade Mall. There are also
B-5
132
"
t w o f a c t o r y o u t l e t m a l l s ( D e s e r t H i l l s F a c t o r y S t o r e s a n d L a k e E l s i n o r e O u t l e t C e n t e r ) a n d o v e r 2 0 0 a r e a
c e n t e r s i n t h e C o u n t y .
T h e f o l l o w i n g t a b l e s e t s f o r t h t a x a b l e t r a n s a c t i o n s i n t h e C o u n t y f o r t h e y e a r s 2 0 0 2 t h r o u g h 2 0 0 6 .
C O U N T Y O F R I V E R S I D E
T A X A B L E S A L E S T R A N S A C T I O N S
( I n T h o u s a n d s )
2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6
A p p a r e l S t o r e s $ 6 1 0 , 3 8 8 $ 7 4 6 , 0 1 5 $ 8 6 7 , 2 7 6 $ 9 9 0 , 1 2 9 $ 1 0 8 0 3 8 5
G e n e r a l M e r c h a n d i s e S t o r e s 2 , 2 3 7 , 6 0 5 2 , 4 2 7 , 4 1 1 2 , 7 5 6 , 0 1 9 3 , 0 2 1 , 9 0 8 3 , 2 5 0 , 3 7 7
D r u g S t o r e s 2 2 1 , 4 4 1 2 4 4 , 5 6 0 2 7 0 , 3 1 6 2 8 2 , 5 6 6 3 0 3 , 1 7 7
F o o d S t o r e s 9 6 7 , 1 7 1 1 , 0 2 8 , 3 9 2 1 , 0 7 9 , 9 7 2 1 , 1 9 7 , 4 3 8 1 , 3 0 9 , 7 8 2
P a c k a g e d L i q u o r S t o r e s 5 8 , 4 5 9 6 1 , 5 1 4 6 6 , 7 2 8 7 4 , 8 2 8 7 8 , 8 9 5
E a t i n g a n d D r i n k i n g P l a c e s 1 , 5 5 9 , 2 1 5 1 , 7 1 3 , 6 3 2 1 , 9 4 0 , 6 1 0 2 , 1 5 7 , 8 0 1 2 , 3 1 6 , 4 2 2
H o m e F u r n i s h i n g a n d
A p p l i a n c e s 5 9 4 , 0 4 9 6 9 1 , 0 5 1 8 6 2 , 5 5 1 9 6 4 , 6 2 9 9 4 8 , 2 1 7
B u i l d i n g M a t e r i a l s & F a r m
I m p l e m e n t s 1 , 5 8 1 , 7 9 2 1 , 8 6 8 , 9 9 5 2 , 4 7 6 , 0 9 2 2 , 7 5 6 , 2 8 0 2 , 7 3 8 , 1 5 3
A u t o D e a l e r s S u p p l i e s 3 , 3 1 4 , 1 3 3 3 , 6 6 2 , 1 5 1 4 , 1 7 9 , 9 4 0 4 , 4 7 4 , 5 6 6 4 , 3 2 6 , 0 4 0
S e r v i c e S t a t i o n s 1 , 2 4 9 , 6 4 6 1 , 5 3 6 , 2 4 0 1 , 8 5 5 , 2 6 3 2 , 2 7 7 , 0 8 2 2 , 6 3 0 , 7 1 6
O t h e r R e t a i l S t o r e s 1 , 8 5 6 8 3 4 2 0 5 0 , 9 9 1 2 , 3 6 1 , 1 8 2 2 , 6 4 1 , 9 8 5 2 , 8 6 0 , 1 8 1
R e t a i l S t o r e s T o t a l $ 1 4 , 2 5 0 , 7 3 3 $ 1 6 , 0 3 0 , 9 5 2 $ 1 8 , 7 1 5 , 9 4 9 2 0 , 8 3 9 , 2 1 2 2 1 , 8 4 2 , 3 4 5
A l l O t h e r O u t l e t s 5 , 2 4 8 , 2 6 1 5 , 6 7 8 , 1 8 3 6 , 5 2 1 , 1 9 9 7 , 4 1 7 , 2 7 9 7 , 9 7 3 , 8 9 2
T o t a l A l l O u t l e t s $ 1 9 , 4 9 8 , 9 9 4 $ 2 1 , 7 0 9 , 1 3 5 $ 2 5 . 2 3 7 . 1 4 8 $ 2 8 , 2 6 4 9 1 $ 2 9 8 1 6 . 2 3 7
S o u r c e : C a l i f o r n i a S t a t e B o a r d o f E q u a l i z a t i o n , R e s e a r c h a n d S t a t i s t i c s D i v i s i o n .
B u i l d i n g a n d R e a l E s t a t e A c t i v i t y
T h e t w o t a b l e s b e l o w a r e a f i v e - y e a r s u m m a r y o f b u i l d i n g p e r m i t v a l u a t i o n s a n d n e w d w e l l i n g
u n i t s a u t h o r i z e d i n t h e C o u n t y ( i n b o t h i n c o r p o r a t e d a n d u n i n c o r p o r a t e d a r e a s ) s i n c e 2 0 0 3 .
B - 6
1 3 3
RESIDENTIAL
New Single -Family
New Multi -Family
Alterations and Adjustments
Total Residential
NON-RESIDENTIAL
New Commercial
New Industry
New Other(1)
Alterations &
Adjustments
Total Nonresidential
TOTAL ALL BUILDING
COUNTY OF RIVERSIDE
BUILDING PERMIT VALUATIONS
(In Thousands)
2003 2004 2005 2006 2007
$4,665,678.0 $5,997,514.0 $6,243,790.0 $4,409.675.8 $2,209,586.7
406,483.0 404,616.0 407,429.0 431,864.8 237,887.0
106, 8 55.0 135,178.0 164,312.0 157,167.9 141,952.4
$5,179,016.0 $6,537,308.0 $6,815,531.0 $4,998,708.5 $2,589,426.0
$ 360,709.0 $ 580,058.0 $ 552,665.0 $647,460.4 $ 682,416.6
112,707.0 203,311.0 120,366.0 288,352.6 151,994.4
261,795.0 334,002.0 344,702.0 288,768.2 239,835.3
173,166.0 222,496.0 274,339.0 305,262.6 400.604.5
$ 908,377.0 $1,339,867.0 $1,292,072.0 $1,529,843.8 $1,474,850.9
$6,087,393 0 $7.87/.1110 $8,107,603.0 $ ,5?8,552 3 $4,064,276.9
Source: Construction Industry Research Board.
(1) Includes churches and religious buildings, hospitals and institutional buildings, schools and educational
buildings, residential garages, public works and utilities buildings and non-residential alterations and
additions.
COUNTY OF RIVERSIDE
NUMBER OF NEW DWELLING UNITS
2002 2003 2004 2005 2006 2007
Single Family 20,591 25,137 29,478 29,994 20,725 9,766
Multi -Family 2,073 5,224 4,748 4,140 4,521 2,679.
TOTAL 22.664 30,361 34,226 34,134 25 246 12,445
Source: Construction Industry Research Board.
Agriculture
Agriculture remains an important source of income in the County. Principal agricultural products
are: nursery, milk, table grapes, eggs, avocados, grapefruit, alfalfa, bell peppers, dates, and lemons. Four
areas in the County account for the major portion of agricultural activity: the Riverside/Corona and San
Jacinto/Temecula Valley Districts in the western portion of the County, the Coachella Valley in the
central portion and the Palo Verde Valley near the County's eastern border. The value of agricultural
production in the County for 2002 through 2006 is presented in the following table.
B-7
134
"
"
r
C O U N T Y O F R I V E R S I D E
V A L U E O F A G R I C U L T U R A L P R O D U C T I O N
2 0 0 2 2 0 0 3
2 0 0 4 2 0 0 5 2 0 0 6
C i t r u s F r u i t s $ 9 5 , 4 0 2 , 3 0 0 $ 8 4 , 9 0 0 , 1 0 0 $ 1 2 3 , 5 7 4 , 1 0 0
T r e e s a n d V i n e s 1 8 3 , 1 3 8 , 9 0 0 2 1 6 , 5 6 6 , 2 0 0 2 1 1 , 9 3 6 , 5 0 0
V e g e t a b l e s , M e l o n s , M i s c . 2 1 5 , 4 1 2 , 8 0 0 1 7 9 , 0 0 1 , 9 0 0 1 7 4 , 8 6 6 , 3 0 0
F i e l d a n d S e e d C r o p s 7 1 , 9 6 0 , 4 0 0 7 3 , 6 9 2 , 0 0 0 7 5 , 2 1 9 , 0 0 0
N u r s e r y 1 8 3 , 0 7 3 , 6 0 0 2 0 5 , 8 4 6 , 3 0 0 2 1 1 , 2 7 1 , 2 0 0
A p i c u l t u r e 2 , 8 0 3 , 8 0 0 3 , 5 2 0 , 6 0 0 2 , 9 5 1 , 3 0 0
A q u a c u l t u r e P r o d u c t s 1 5 , 7 5 7 , 6 0 0 1 5 , 9 3 1 , 6 0 0 1 5 5 7 9 , 1 0 0
T o t a l C r o p V a l u a t i o n $ 7 6 7 , 5 4 9 , 4 0 0 $ 7 7 9 , 4 5 8 , 7 0 0 $ 8 1 5 , 3 9 7 , 5 0 0
L i v e s t o c k a n d P o u l t r y
V a l u a t i o n 2 9 5 , 9 2 8 , 7 0 0 2 8 7 , 9 0 8 , 6 0 0 3 1 6 , 2 0 7 , 7 0 0
G r a n d T o t a l $ 1 0 6 3 4 7 8 3 0 0 $ 1 0 6 7 3 6 7 3 0 0 $ 1 , 1 3 1 , 6 0 5 , 2 0 0
S o u r c e : R i v e r s i d e C o u n t y A g r i c u l t u r a l C o m m i s s i o n e r .
T r a n s p o r t a t i o n
$ 1 3 8 , 2 4 4 , 7 0 0
1 8 8 , 5 5 3 , 2 0 0
2 6 1 , 0 1 9 , 5 0 0
7 7 , 6 8 7 , 3 0 0
2 2 9 , 2 1 0 , 2 0 0
2 , 7 3 6 , 8 0 0
1 3 , 3 6 7 , 3 0 0
$ 9 1 0 , 8 1 9 , 0 0 0
$ 1 0 7 , 8 9 7 , 0 0 0
1 9 1 , 3 2 1 , 2 0 0
2 1 3 , 6 4 3 , 3 0 0
6 8 , 6 1 1 , 7 0 0
2 7 0 , 9 9 2 , 8 0 0
3 , 5 5 4 , 3 0 0
1 3 . 3 6 7 , 3 0 0
$ 8 6 9 , 3 8 7 , 6 0 0
2 5 7 , 8 5 2 , 1 0 0 2 3 4 , 9 0 3 , 4 0 0
$ L 1 6 8 , 6 7 1 , M O 1 , 1 0 4 , 2 9 1 , 0 0 0
S e v e r a l m a j o r f r e e w a y s a n d h i g h w a y s p r o v i d e a c c e s s b e t w e e n t h e C o u n t y a n d a l l p a r t s o f
S o u t h e r n C a l i f o r n i a . T h e R i v e r s i d e F r e e w a y ( S t a t e R o u t e 9 1 ) e x t e n d s s o u t h w e s t t h r o u g h C o r o n a a n d
c o n n e c t s w i t h t h e O r a n g e C o u n t y f r e e w a y n e t w o r k i n F u l l e r t o n . I n t e r s t a t e 1 0 t r a v e r s e s t h e w i d t h o f t h e
C o u n t y , t h e w e s t e r n - m o s t p o r t i o n o f w h i c h l i n k s u p w i t h m a j o r c i t i e s a n d f r e e w a y s i n t h e s o u t h e r n p a r t o f
S a n B e r n a r d i n o C o u n t y w i t h t h e e a s t e r n p a r t l i n k i n g t o t h e C o u n t y ' s D e s e r t c i t i e s a n d A r i z o n a . I n t e r s t a t e
1 5 a n d 2 l 5 e x t e n d n o r t h a n d t h e n e a s t t o L a s V e g a s , a n d s o u t h t o S a n D i e g o . S t a t e R o u t e 6 0 p r o v i d e s a n
a l t e r n a t e ( t o I n t e r s t a t e 1 0 ) e a s t - w e s t l i n k t o L o s A n g e l e s C o u n t y .
C u r r e n t l y , M e t r o l i n k p r o v i d e s c o m m u t e r r a i l s e r v i c e t o L o s A n g e l e s , S a n B e r n a r d i n o a n d O r a n g e
C o u n t i e s f r o m s e v e r a l s t a t i o n s i n t h e C o u n t y . T r a n s c o n t i n e n t a l p a s s e n g e r r a i l s e r v i c e i s p r o v i d e d b y
A m t r a k w i t h s t o p s i n R i v e r s i d e a n d I n d i o . F r e i g h t s e r v i c e t o m a j o r w e s t c o a s t a n d n a t i o n a l m a r k e t s i s
p r o v i d e d b y t w o t r a n s c o n t i n e n t a l r a i l r o a d s ( i ) U n i o n P a c i f i c R a i l r o a d a n d ( i i ) B u r l i n g t o n N o r t h e r n a n d
S a n t a F e R a i l w a y C o m p a n y . T r u c k s e r v i c e i s p r o v i d e d b y s e v e r a l c o m m o n c a r r i e r s , m a k i n g a v a i l a b l e
o v e r n i g h t d e l i v e r y s e r v i c e t o m a j o r C a l i f o r n i a c i t i e s .
T r a n s c o n t i n e n t a l b u s s e r v i c e i s p r o v i d e d b y G r e y h o u n d L i n e s . I n t e r c o u n t y , i n t e r c i t y a n d l o c a l
b u s s e r v i c e i s p r o v i d e d b y t h e R i v e r s i d e T r a n s i t A g e n c y t o w e s t e r n C o u n t y c i t i e s a n d c o m m u n i t i e s .
T h e r e a r e a l s o f o u r m u n i c i p a l t r a n s i t o p e r a t o r s i n t h e w e s t e r n C o u n t y p r o v i d i n g s e r v i c e s w i t h i n t h e c i t i e s
o f B a n n i n g , B e a u m o n t , C o r o n a a n d R i v e r s i d e . T h e S u n L i n e T r a n s i t A g e n c y p r o v i d e s l o c a l b u s s e r v i c e
t h r o u g h o u t t h e C o a c h e l l a V a l l e y , i n c l u d i n g t h e c i t i e s o f P a l m S p r i n g s a n d I n d i o . T h e P a l o V e r d e V a l l e y
T r a n s i t A u t h o r i t y p r o v i d e d s e r v i c e i n t h e f a r e a s t e r n p o r t i o n o f t h e C o u n t y ( C i t y o f B l y t h e a n d
s u r r o u n d i n g c o m m u n i t i e s ) .
T h e C o u n t y s e a t , l o c a t e d i n t h e C i t y o f R i v e r s i d e , i s w i t h i n 2 0 m i l e s o f t h e O n t a r i o I n t e r n a t i o n a l
A i r p o r t i n n e i g h b o r i n g S a n B e r n a r d i n o C o u n t y . T h i s a i r p o r t i s o p e r a t e d b y t h e L o s A n g e l e s D e p a r t m e n t
o f A i r p o r t s . F o u r m a j o r a i r l i n e s s c h e d u l e c o m m e r c i a l f l i g h t s e r v i c e a t P a l m S p r i n g s R e g i o n a l A i r p o r t .
C o u n t y - o p e r a t e d g e n e r a l a v i a t i o n a i r p o r t s i n c l u d e t h o s e i n T h e r m a l , H e m e t , B l y t h e a n d F r e n c h V a l l e y .
T h e c i t i e s o f R i v e r s i d e , C o r o n a a n d B a n n i n g a l s o o p e r a t e g e n e r a l a v i a t i o n a i r p o r t s . T h e r e i s a m i l i t a r y
b a s e a t M a r c h A i r R e s e r v e B a s e , w h i c h c o n v e r t e d f r o m a n a c t i v e d u t y b a s e t o a r e s e r v e - o n l y b a s e o n
A p r i l 1 , 1 9 9 6 . P l a n s f o r j o i n t m i l i t a r y a n d c i v i l i a n u s e o f t h e b a s e t h e r e a f t e r a r e p r e s e n t l y b e i n g
f o r m u l a t e d b y t h e M a r c h A F B J o i n t P o w e r s A u t h o r i t y , c o m p r i s e d o f t h e C o u n t y a n d t h e C i t i e s o f
R i v e r s i d e , M o r e n o V a l l e y a n d P e r r i s .
B - 8
1 3 5
Education
There are four elementary school districts, one high school district, eighteen unified (K-12)
school districts and four community college districts in the County. Ninety-five percent of all K-12
students attend schools in the unified school districts. The three largest unified school districts are
Riverside Unified School District, Moreno Valley Unified School District and Corona -Norco Unified
School District.
There are seven two-year community college campuses located in the communities of Riverside,
Moreno Valley, Norco, San Jacinto, Menifee, Coachella Valley and Palo Verde Valley. There are also
three universities located in the City of Riverside — the University of California, Riverside, La Sierra
University and California Baptist University.
B-9
136
"
"
A P P E N D I X C
S U M M A R Y O F C E R T A I N P R O V I S I O N S O F T H E I N D E N T U R E
C - 1
1 3 7
"
A P P E N D I X D
B O O K E N T R Y S Y S T E M
T h e i n f o r m a t i o n c o n c e r n i n g D T C s e t f o r t h h e r e i n h a s b e e n s u p p l i e d b y D T C , a n d t h e
C o m m i s s i o n a s s u m e s n o r e s p o n s i b i l i t y f o r t h e a c c u r a c y t h e r e o f .
D T C i s a l i m i t e d - p u r p o s e t r u s t c o m p a n y . o r g a n i z e d u n d e r t h e N e w Y o r k B a n k i n g L a w , a
" b a n k i n g o r g a n i z a t i o n " w i t h i n t h e m e a n i n g o f t h e N e w Y o r k B a n k i n g L a w , a m e m b e r o f t h e
F e d e r a l R e s e r v e S y s t e m , a " c l e a r i n g c o r p o r a t i o n " w i t h i n t h e m e a n i n g o f t h e N e w Y o r k U n i f o r m
C o m m e r c i a l C o d e , a n d a " c l e a r i n g a g e n c y " r e g i s t e r e d p u r s u a n t t o t h e p r o v i s i o n s o f S e c t i o n 1 7 A
o f t h e S e c u r i t i e s E x c h a n g e A c t o f 1 9 3 4 . D T C h o l d s s e c u r i t i e s t h a t i t s p a r t i c i p a n t s ( " D T C
P a r t i c i p a n t s " ) d e p o s i t w i t h D T C . D T C a l s o f a c i l i t a t e s t h e s e t t l e m e n t a m o n g D T C P a r t i c i p a n t s o f
s e c u r i t i e s t r a n s a c t i o n s , s u c h a s t r a n s f e r s a n d p l e d g e s , i n d e p o s i t e d s e c u r i t i e s t h r o u g h e l e c t r o n i c
c o m p u t e r i z e d b o o k - e n t r y c h a n g e s i n D T C P a r t i c i p a n t s ' a c c o u n t s , t h e r e b y e l i m i n a t i n g t h e n e e d
f o r p h y s i c a l m o v e m e n t o f s e c u r i t i e s c e r t i f i c a t e s . " D T C D i r e c t P a r t i c i p a n t s " i n c l u d e s e c u r i t i e s
b r o k e r s a n d d e a l e r s , b a n k s , t r u s t c o m p a n i e s , c l e a r i n g c o r p o r a t i o n s , a n d c e r t a i n o t h e r
o r g a n i z a t i o n s . D T C i s o w n e d b y a n u m b e r o f i t s D T C D i r e c t P a r t i c i p a n t s a n d b y t h e N e w Y o r k
S t o c k E x c h a n g e , I n c . , t h e A m e r i c a n S t o c k E x c h a n g e , I n c . , a n d t h e N a t i o n a l A s s o c i a t i o n o f
S e c u r i t i e s D e a l e r s , I n c . A c c e s s t o t h e D T C s y s t e m i s a l s o a v a i l a b l e t o o t h e r s s u c h a s s e c u r i t i e s
b r o k e r s a n d d e a l e r s , b a n k s , a n d t r u s t c o m p a n i e s t h a t c l e a r t h r o u g h o r m a i n t a i n a c u s t o d i a l
r e l a t i o n s h i p w i t h a D T C D i r e c t P a r t i c i p a n t , e i t h e r d i r e c t l y o r i n d i r e c t l y ( " D T C I n d i r e c t
P a r t i c i p a n t s " ) . T h e R u l e s a p p l i c a b l e t o D T C a n d i t s D T C P a r t i c i p a n t s a r e o n f i l e w i t h t h e
S e c u r i t i e s a n d E x c h a n g e C o m m i s s i o n .
P u r c h a s e s o f S e r i e s 2 0 0 8 B o n d s u n d e r t h e D T C s y s t e m m u s t b e m a d e b y o r t h o u g h D T C
D i r e c t P a r t i c i p a n t s , w h i c h w i l l r e c e i v e c r e d i t f o r t h e S e r i e s 2 0 0 8 B o n d s o n D T C ' s r e c o r d s . T h e
o w n e r s h i p i n t e r e s t o f e a c h a c t u a l p u r c h a s e r o f e a c h S e r i e s 2 0 0 8 B o n d ( a ` B e n e f i c i a l O w n e r " ) i s
i n t u r n t o b e r e c o r d e d o n t h e D i r e c t a n d D T C I n d i r e c t P a r t i c i p a n t s ' r e c o r d s . B e n e f i c i a l O w n e r s
w i l l n o t r e c e i v e w r i t t e n c o n f i r m a t i o n f r o m D T C o f t h e i r p u r c h a s e , b u t B e n e f i c i a l O w n e r s a r e
e x p e c t e d t o r e c e i v e w r i t t e n c o n f i r m a t i o n s p r o v i d i n g d e t a i l s o f t h e t r a n s a c t i o n , a s w e l l a s p e r i o d i c
s t a t e m e n t s o f t h e i r h o l d i n g s , f r o m t h e D T C P a r t i c i p a n t t h r o u g h w h i c h t h e B e n e f i c i a l O w n e r
e n t e r e d i n t o t h e t r a n s a c t i o n . T r a n s f e r s o f o w n e r s h i p i n t e r e s t s i n t h e S e r i e s 2 0 0 8 B o n d s a r e t o b e
a c c o m p l i s h e d b y e n t r i e s m a d e o n t h e b o o k s o f D T C P a r t i c i p a n t s a c t i n g o n b e h a l f o f B e n e f i c i a l
O w n e r s . B e n e f i c i a l O w n e r s w i l l n o t r e c e i v e c e r t i f i c a t e s r e p r e s e n t i n g t h e i r o w n e r s h i p i n t e r e s t s i n
S e r i e s 2 0 0 8 B o n d s , e x c e p t i n t h e e v e n t t h a t u s e o f t h e b o o k - e n t r y s y s t e m f o r t h e S e r i e s 2 0 0 8
B o n d s i s d i s c o n t i n u e d .
T o f a c i l i t a t e s u b s e q u e n t t r a n s f e r s , a l l S e r i e s 2 0 0 8 B o n d s d e p o s i t e d b y D T C P a r t i c i p a n t s
w i t h D T C a r e r e g i s t e r e d i n t h e n a m e o f D T C ' s n o m i n e e , C e d e & C o . T h e d e p o s i t o f S e r i e s 2 0 0 8
B o n d s w i t h D T C a n d t h e i r r e g i s t r a t i o n i n t h e n a m e o f C e d e & C o . e f f e c t n o c h a n g e i n b e n e f i c i a l
o w n e r s h i p . D T C h a s n o k n o w l e d g e o f t h e a c t u a l B e n e f i c i a l O w n e r s o f t h e S e r i e s 2 0 0 8 B o n d s ;
D T C ' s r e c o r d s r e f l e c t o n l y t h e i d e n t i t y o f t h e D T C D i r e c t P a r t i c i p a n t s t o w h o s e a c c o u n t s s u c h
S e r i e s 2 0 0 8 B o n d s a r e c r e d i t e d , w h i c h m a y o r m a y n o t b e t h e B e n e f i c i a l O w n e r s . T h e D T C
P a r t i c i p a n t s w i l l r e m a i n r e s p o n s i b l e f o r k e e p i n g a c c o u n t o f t h e i r h o l d i n g s o n b e h a l f o f t h e i r
c u s t o m e r s .
C o n v e y a n c e o f n o t i c e s a n d o t h e r c o m m u n i c a t i o n s b y D T C t o D T C D i r e c t P a r t i c i p a n t s , b y
D T C D i r e c t P a r t i c i p a n t s t o D T C I n d i r e c t P a r t i c i p a n t s , a n d b y D T C D i r e c t P a r t i c i p a n t s a n d D T C
D - 1
1 3 8
Indirect Participants to Beneficial Owners will be governed by arrangements among them,
subject to any statutory or regulatory requirements as may be in effect from time to time.
Redemption notices will be sent to Cede & Co. If less than all of the Series 2008 Bonds
within an issue are being redeemed, DTC's practice is to determine by lot the amount of the
interest of each DTC Direct Participant in such issue to be redeemed.
Neither DTC nor Cede & Co. will consent or vote with respect to Series 2008 Bonds.
Under its usual procedures, DTC mails an Omnibus Proxy to the Commission as soon as possible
after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to
those DTC Direct Participants to whose accounts the Series 2008 Bonds are credited on the
record date (identified in a listing attached to the Omnibus Proxy).
Principal and interest payments on the Series 2008 Bonds will be made to DTC. DTC's
practice is to credit DTC Direct Participants' accounts on the payment date in accordance with
their respective holdings shown on DTC's records unless DTC has reason to believe that it will
not receive payment on a payment date. Payments by DTC Participants to Beneficial Owners
will be governed by standing instructions and customary practices, as is the case with securities
held for the accounts of customers in bearer form or registered in "street name," and will be the
responsibility of such DTC Participant and not of DTC, the Trustee, or the Commission, subject
to any statutory or regulatory requirements as may be in effect from time to time. Payment of
principal and interest to DTC is the responsibility of the Trustee, disbursement of such payments
to DTC Direct Participants will be the responsibility of DTC, and disbursement of such
payments to the Beneficial Owners will be the responsibility of Direct and DTC Indirect
Participants.
The Commission and the Trustee cannot and do not give any assurances that DTC Direct
Participants or DTC Indirect Participants will distribute to the Beneficial Owners (i) principal
and interest on the Series 2008 Bonds, (ii) certificates representing an ownership interest in or
other confirmation of ownership interests in the Series 2008 Bonds, or (iii) redemption or other
notices sent to DTC or Cede & Co., its nominee, as registered owner of the Series 2008 Bonds,
or that they will do so on a timely basis or that DTC, DTC Direct Participants or DTC Indirect
Participants will service and act in the manner described in the Official Statement.
The Commission and the Trustee will be entitled to treat the person in whose name any
Series 2008 Bond is registered as the Bond Owner thereof for all purposes of the Indenture and
any applicable laws, notwithstanding any notice to the contrary received by the Trustee or the
Commission; and the Commission and the Trustee will have no responsibility for transmitting
payments to, communication with, notifying, or otherwise dealing with any Beneficial Owners of
the Series 2008 Bonds. Neither the Commission nor the Trustee will have any responsibility or
obligations, legal or otherwise, to the Beneficial Owners or to any other party including DTC or
its successor (or substitute depository or its successor), except for the registered owner of any
Series 2008 Bond.
DTC may discontinue providing its services as securities depository with respect to the
Series 2008 Bonds at any time by giving notice to the Commission or the Trustee. Under such
circumstances, in the event that a successor securities depository is not obtained, Series 2008
Bonds are required to be printed and delivered.
D-2
•
139
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"
T H E T R U S T E E , A S L O N G A S A B O O K - E N T R Y O N L Y S Y S 1 ' E M I S U S E D F O R
T H E S E R I E S 2 0 0 8 B O N D S , W I L L S E N D A N Y N O T I C E O F R E D E M P T I O N O R O T H E R
N O T I C E S T O O W N E R S O N L Y T O D T C . A N Y F A I L U R E O F D T C T O A D V I S E A N Y D T C
P A R T I C I P A N T , O R O F A N Y D T C P A R T I C I P A N T T O N O T I F Y A N Y B E N E F I C I A L
O W N E R , O F A N Y N O T I C E A N D I T S C O N T E N T O R E F F E C T W I L L N O T A F F E C T T H E
V A L I D I T Y O F S U F F I C I E N C Y O F T H E P R O C E E D I N G S R E L A T I N G T O T H E
R E D E M P T I O N O F T H E S E R I E S 2 0 0 8 B O N D S C A L L E D F O R R E D E M P T I O N O R O F A N Y
O T H E R A C T I O N P R E M I S E D O N S U C H N O T I C E .
D - 3
1 4 0
APPENDIX E
PROPOSED FORM OF BOND COUNSEL OPINION
E-1
•
141
"
"
"
A P P E N D I X F
P R O P O S E D F O R M O F C O N T I N U I N G D I S C L O S U R E C E R T I F I C A T E
T h i s C o n t i n u i n g D i s c l o s u r e C e r t i f i c a t e ( t h e " D i s c l o s u r e C e r t i f i c a t e " ) , d a t e d a s o f
, 2 0 0 8 , i s e x e c u t e d a n d d e l i v e r e d b y t h e R i v e r s i d e C o u n t y T r a n s p o r t a t i o n
C o m m i s s i o n ( t h e " C o m m i s s i o n " ) i n c o n n e c t i o n w i t h t h e i s s u a n c e o f i t s $ S a l e s T a x
R e v e n u e B o n d s , S e r i e s 2 0 0 8 ( t h e ` B o n d s " ) . T h e B o n d s a r e b e i n g i s s u e d p u r s u a n t t o a n
I n d e n t u r e , d a t e d a s o f J u n e 1 , 2 0 0 8 ( t h e " 2 0 0 8 I n d e n t u r e " ) , b y a n d b e t w e e n t h e C o m m i s s i o n a n d
U . S . B a n k N a t i o n a l A s s o c i a t i o n ( t h e " T r u s t e e " ) a n d t h e F i r s t S u p p l e m e n t a l I n d e n t u r e , d a t e d a s o f
J u n e 1 , 2 0 0 8 ( t h e " F i r s t S u p p l e m e n t a l I n d e n t u r e " a n d , t o g e t h e r w i t h t h e 2 0 0 8 I n d e n t u r e , t h e
" I n d e n t u r e " ) . P u r s u a n t t o t h e I n d e n t u r e , t h e C o m m i s s i o n c o v e n a n t s a n d a g r e e s a s f o l l o w s :
S E C T I O N 1 . P u r p o s e o f t h e D i s c l o s u r e C e r t i f i c a t e . T h i s D i s c l o s u r e C e r t i f i c a t e i s b e i n g
e x e c u t e d a n d d e l i v e r e d b y t h e C o m m i s s i o n f o r t h e b e n e f i t o f t h e H o l d e r s a n d B e n e f i c i a l O w n e r s
o f t h e B o n d s a n d i n o r d e r t o a s s i s t t h e P a r t i c i p a t i n g U n d e r w r i t e r s i n c o m p l y i n g w i t h S e c u r i t i e s
a n d E x c h a n g e C o m m i s s i o n R u l e 1 5 c 2 - 1 2 ( b ) ( 5 ) .
S E C T I O N 2 . D e f i n i t i o n s . I n a d d i t i o n t o t h e , d e f i n i t i o n s s e t f o r t h i n t h e I n d e n t u r e , w h i c h
a p p l y t o a n y c a p i t a l i z e d t e r m u s e d i n t h i s D i s c l o s u r e C e r t i f i c a t e u n l e s s o t h e r w i s e d e f i n e d i n t h i s
S e c t i o n , t h e f o l l o w i n g c a p i t a l i z e d t e r m s s h a l l h a v e t h e f o l l o w i n g m e a n i n g s :
" A n n u a l R e p o r t " s h a l l m e a n a n y A n n u a l R e p o r t p r o v i d e d b y t h e C o m m i s s i o n p u r s u a n t
t o , a n d a s d e s c r i b e d i n ; S e c t i o n s 3 a n d 4 o f t h i s D i s c l o s u r e C e r t i f i c a t e .
" B e n e f i c i a l O w n e r " s h a l l m e a n a n y p e r s o n w h i c h ( a ) h a s t h e p o w e r , d i r e c t l y o r i n d i r e c t l y ,
t o v o t e o r c o n s e n t w i t h r e s p e c t t o , o r t o d i s p o s e o f o w n e r s h i p o f , a n y B o n d s ( i n c l u d i n g p e r s o n s
h o l d i n g B o n d s t h r o u g h n o m i n e e s , d e p o s i t o r i e s o r o t h e r i n t e r m e d i a r i e s ) , o r ( b ) i s t r e a t e d a s t h e
o w n e r o f a n y B o n d s f o r f e d e r a l i n c o m e t a x p u r p o s e s .
" D i s c l o s u r e R e p r e s e n t a t i v e " s h a l l m e a n t h e d e s i g n e e o f t h e C o m m i s s i o n t o a c t a s t h e
D i s c l o s u r e R e p r e s e n t a t i v e .
" D i s s e m i n a t i o n A g e n t " s h a l l m e a n a n e n t i t y s e l e c t e d a n d r e t a i n e d b y t h e C o m m i s s i o n , o r
a n y s u c c e s s o r t h e r e t o s e l e c t e d b y t h e C o m m i s s i o n . T h e i n i t i a l D i s s e m i n a t i o n A g e n t s h a l l b e
D i g i t a l A s s u r a n c e C e r t i f i c a t e L L C .
" L i s t e d E v e n t s " s h a l l m e a n a n y o f t h e e v e n t s l i s t e d i n S e c t i o n 5 ( a ) o f t h i s D i s c l o s u r e
C e r t i f i c a t e a n d a n y o t h e r e v e n t l e g a l l y r e q u i r e d t o b e r e p o r t e d p u r s u a n t t o t h e R u l e .
" N a t i o n a l R e p o s i t o r y " s h a l l m e a n a n y N a t i o n a l l y R e c o g n i z e d M u n i c i p a l S e c u r i t i e s
I n f o r m a t i o n R e p o s i t o r y f o r p u r p o s e s o f t h e R u l e . T h e N a t i o n a l R e p o s i t o r i e s a p p r o v e d b y t h e
S e c u r i t i e s a n d E x c h a n g e C o m m i s s i o n a s o f t h e d a t e o f t h i s A g r e e m e n t a r e c u r r e n t l y s e t f o r t h a t
t h e f o l l o w i n g w e b s i t e : h t t p : / / w w w . s e c . g o v / i n f o / m u n i c i p a l / n r m s i r . h t m .
" P a r t i c i p a t i n g U n d e r w r i t e r s " s h a l l m e a n a n y o f t h e o r i g i n a l u n d e r w r i t e r s o f t h e B o n d s
r e q u i r e d t o c o m p l y w i t h t h e R u l e i n c o n n e c t i o n w i t h o f f e r i n g o f t h e B o n d s .
" R e p o s i t o r y " s h a l l m e a n e a c h N a t i o n a l R e p o s i t o r y a n d e a c h S t a t e R e p o s i t o r y .
F - 1
1 4 2
"Rule" shall mean Rule 15c2-12(b)(5) adopted by the Securities and Exchange
Commission under the Securities Exchange Act of 1934, as the same may be amended from time
to time.
"State" shall mean the State of California.
"State Repository" shall mean any public or private repository or entity designated by the
State as a state repository for the purpose of the Rule and recognized as such by the Securities
and Exchange Commission. As of the date of this Disclosure Certificate, there is no State
Repository.
SECTION 3. Provision of Annual Reports.
(a) The Commission shall provide to each Repository, or shall cause the
Dissemination Agent to provide to each Repository, not later than 210 days after the end of the
Commission's fiscal year, commencing with the fiscal year ending June 30, 2008, an Annual
Report which is consistent with the requirements of Section 4 of this Disclosure Certificate. The
Annual Report may be submitted as a single document or as separate documents comprising a
package, and may include by reference other information as provided in Section 4 of this
Disclosure Certificate. Not later than fifteen (15) Business Days prior to said date, the
Commission shall provide the Annual Report to the Dissemination Agent. The Commission
shall provide a written certification with each Annual Report furnished to the Dissemination
Agent to the effect that such Annual Report constitutes the Annual Report required to be
furnished by the Commission hereunder. The Dissemination Agent may conclusively rely upon
such certification of the Commission.
(b) If by fifteen (15) Business Days prior to the date specified in subsection (a) for
providing the Annual Report to the Repositories, the Dissemination Agent has not received a
copy of the Annual Report, the Dissemination Agent shall contact the Commission to determine
if the Commission is in compliance with subsection (a).
(c) If the Dissemination Agent is unable to verify that an Annual Report has been
provided to the Repositories by the date required in subsection (a), the Dissemination Agent shall
send a notice to the Municipal Securities Rulemaking Board in substantially the form attached as
Exhibit A.
(d) The Dissemination Agent shall:
(i) determine each year prior to the date for providing the Annual Report the
name and address of each National Repository and the State Repository, if any; and
(ii) (if the Dissemination Agent is other than the Commission), to the extent
appropriate information is available to it, file a report with the Commission certifying that the
Annual Report has been provided pursuant to this Disclosure Certificate, stating the date it was
provided and listing all the Repositories to which it was provided.
SECTION 4. Content of Annual Reports. The Commission's Annual Report shall
contain or include by reference the following:
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"
( a ) T h e a u d i t e d f i n a n c i a l s t a t e m e n t s o f t h e C o m m i s s i o n f o r t h e p r i o r f i s c a l y e a r ,
p r e p a r e d i n a c c o r d a n c e w i t h g e n e r a l l y a c c e p t e d a c c o u n t i n g p r i n c i p l e s a s p r o m u l g a t e d t o a p p l y t o
g o v e r n m e n t a l e n t i t i e s f r o m t i m e t o t i m e b y t h e G o v e r n m e n t a l A c c o u n t i n g S t a n d a r d s B o a r d . I f
t h e C o m m i s s i o n ' s a u d i t e d f i n a n c i a l s t a t e m e n t s a r e n o t a v a i l a b l e b y t h e t i m e t h e A n n u a l R e p o r t i s
r e q u i r e d t o b e f i l e d p u r s u a n t t o S e c t i o n 3 ( a ) , t h e A n n u a l R e p o r t s h a l l c o n t a i n u n a u d i t e d f i n a n c i a l
s t a t e m e n t s i n a f o r m a t s i m i l a r t o t h e f i n a n c i a l s t a t e m e n t s c o n t a i n e d i n t h e f i n a l O f f i c i a l S t a t e m e n t
r e l a t i n g t o . t h e B o n d s ( t h e " O f f i c i a l S t a t e m e n t " ) , a n d t h e a u d i t e d f i n a n c i a l s t a t e m e n t s s h a l l b e
f i l e d i n t h e s a m e m a n n e r a s t h e A n n u a l R e p o r t w h e n t h e y b e c o m e a v a i l a b l e .
( b ) A n u p d a t e ( a s o f t h e m o s t r e c e n t l y e n d e d f i s c a l y e a r o f t h e C o m m i s s i o n ) f o r t h e
t a b l e e n t i t l e d " H i s t o r i c a l 1 9 8 8 S a l e s T a x R e v e n u e s " s e t f o r t h i n t h e O f f i c i a l S t a t e m e n t u n d e r t h e
c a p t i o n " T H E S A L E S T A X - 1 9 8 8 S a l e s T a x R e v e n u e s " ; p r o v i d e d t h a t , c o m m e n c i n g w i t h t h e
f i s c a l y e a r e n d i n g J u n e 3 0 , 2 0 1 0 , t h e C o m m i s s i o n s h a l l p r o v i d e s u c h i n f o r m a t i o n w i t h r e s p e c t t o
S a l e s T a x R e v e n u e s i n l i e u o f s u c h i n f o r m a t i o n w i t h r e s p e c t t o 1 9 8 8 S a l e s T a x R e v e n u e s .
A n y o r a l l o f t h e i t e m s l i s t e d a b o v e m a y b e i n c l u d e d b y s p e c i f i c r e f e r e n c e t o o t h e r d o c u m e n t s ,
i n c l u d i n g o f f i c i a l s t a t e m e n t s o f d e b t i s s u e s w i t h r e s p e c t t o w h i c h t h e C o m m i s s i o n i s a n
" o b l i g a t e d p e r s o n " ( a s d e f i n e d b y t h e R u l e ) , w h i c h h a v e b e e n f i l e d w i t h e a c h o f t h e R e p o s i t o r i e s
o r t h e S e c u r i t i e s a n d E x c h a n g e C o m m i s s i o n . I f t h e d o c u m e n t i n c l u d e d b y r e f e r e n c e i s a f i n a l
o f f i c i a l s t a t e m e n t , i t m u s t b e a v a i l a b l e f r o m t h e M u n i c i p a l S e c u r i t i e s R u l e m a k i n g B o a r d . T h e
C o m m i s s i o n s h a l l c l e a r l y i d e n t i f y e a c h s u c h o t h e r d o c u m e n t s o i n c l u d e d b y r e f e r e n c e .
S E C T I O N 5 . R e p o r t i n g o f S i g n i f i c a n t E v e n t s .
( a ) P u r s u a n t t o t h e p r o v i s i o n s o f t h i s S e c t i o n 5 , t h e C o m m i s s i o n s h a l l g i v e , o r c a u s e
t o b e g i v e n , n o t i c e o f t h e o c c u r r e n c e o f a n y o f t h e f o l l o w i n g e v e n t s w i t h r e s p e c t t o t h e B o n d s , i f
m a t e r i a l :
1 . p r i n c i p a l a n d i n t e r e s t p a y m e n t d e l i n q u e n c i e s ;
2 . n o n - p a y m e n t r e l a t e d d e f a u l t s ;
3 . m o d i f i c a t i o n s t o r i g h t s o f B o n d h o l d e r s ;
4 . o p t i o n a l , c o n t i n g e n t o r u n s c h e d u l e d B o n d c a l l s ;
5 . d e f e a s a n c e s ;
6 . r a t i n g c h a n g e s ;
7 . a d v e r s e t a x o p i n i o n s o r e v e n t s a f f e c t i n g t h e t a x - e x e m p t s t a t u s o f t h e
B o n d s ;
8 . u n s c h e d u l e d d r a w s o n t h e d e b t s e r v i c e r e s e r v e s , i f a n y , r e f l e c t i n g f i n a n c i a l
d i f f i c u l t i e s ;
9 . u n s c h e d u l e d d r a w s o n c r e d i t e n h a n c e m e n t s , i f a n y , r e f l e c t i n g f i n a n c i a l
d i f f i c u l t i e s ;
1 0 _ s u b s t i t u t i o n o f c r e d i t o r l i q u i d i t y p r o v i d e r s , i f a n y , o r t h e i r f a i l u r e t o
p e r f o r m ; a n d
F - 3
1 4 4
11. release, substitution, or sale of property, if any, securing repayment of the
Bonds.
(b) Whenever the Commission obtains knowledge of the occurrence of a Listed
Event, the Commission shall as soon as possible determine if such event would constitute
material information for Holders of Bonds.
(c) If the Commission has determined that knowledge of the occurrence of a Listed
Event would be material under applicable federal securities laws, the Commission shall promptly
notify the Dissemination Agent in writing. Such notice shall instruct the Dissemination Agent to
report the occurrence pursuant to subsection (d).
(d) If the Dissemination Agent has been instructed by the Commission to report the
occurrence of a Listed Event, the Dissemination Agent shall file a notice of such occurrence with
the Repository. Notwithstanding the foregoing:
(i) notice of the occurrence of a Listed Event described in subsections (a)(1),
(4) or (5) shall be given by the Dissemination Agent unless the Commission gives the
Dissemination Agent affirmative instructions not to disclose such occurrence; and
(ii) notice of Listed Events described in subsections (a)(4) and (5) shall not be
given under this subsection any earlier than the notice (if any) of the underlying event is given to
the Holders of affected Bonds pursuant to the Indenture.
(e) Termination of Reporting Obligation. The obligations of the Commission and the
Dissemination Agent under this Disclosure Certificate shall terminate upon the legal defeasance,
prior redemption or payment in full of all of the Bonds. If such termination occurs prior to the
final maturity of the Bonds, the Commission shall give notice of such termination in the same
manner as for a Listed Event under Section 5(f) hereof.
SECTION 6. Dissemination Agent. The Commission may, from time to time, appoint
or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure
Certificate, and may discharge any such Dissemination Agent, with or without appointing a
successor Dissemination Agent. The Dissemination Agent may resign at any time by providing
at least 30 days' notice in writing to the Commission.
SECTION 7. Amendment; Waiver. Notwithstanding any other provision of this
Disclosure Certificate, the Commission may amend this Disclosure Certificate, provided no
amendment increasing or affecting the obligations or duties of the Dissemination Agent shall be
made without the consent of such party, and any provision of this Disclosure Certificate may be
waived if such amendment or waiver is supported by an opinion of counsel expert in federal
securities laws acceptable to the Commission and the Dissemination Agent to the effect that such
amendment or waiver would not, in and of itself, cause the undertakings herein to violate the
Rule if such amendment or waiver had been effective on the date hereof but taking into account
any subsequent change in or official interpretation of the Rule.
SECTION 8. Additional Information. Nothing in this Disclosure Certificate shall be
deemed to prevent the Commission from disseminating any other information, using the means
of dissemination set forth in this Disclosure Certificate or any other means of communication, or
including any other information in any Annual Report or notice of occurrence of a Listed Event,
F-4
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"
"
i n a d d i t i o n t o t h a t w h i c h i s r e q u i r e d b y t h i s D i s c l o s u r e C e r t i f i c a t e . I f t h e C o m m i s s i o n c h o o s e s t o
i n c l u d e a n y i n f o r m a t i o n i n a n y A n n u a l R e p o r t o r n o t i c e o f o c c u r r e n c e o f a L i s t e d E v e n t , i n
a d d i t i o n t o t h a t w h i c h i s s p e c i f i c a l l y r e q u i r e d b y t h i s D i s c l o s u r e C e r t i f i c a t e , t h e C o m m i s s i o n
s h a l l h a v e n o o b l i g a t i o n u n d e r t h i s C e r t i f i c a t e t o u p d a t e s u c h i n f o r m a t i o n o r i n c l u d e i t i n a n y
f u t u r e A n n u a l R e p o r t o r n o t i c e o f o c c u r r e n c e o f a L i s t e d E v e n t .
S E C T I O N 9 . D e f a u l t . I n t h e e v e n t o f a f a i l u r e o f t h e C o m m i s s i o n t o c o m p l y w i t h a n y
p r o v i s i o n o f t h i s D i s c l o s u r e C e r t i f i c a t e , a n y H o l d e r o r B e n e f i c i a l O w n e r o f t h e B o n d s m a y t a k e
s u c h a c t i o n s , a s m a y b e n e c e s s a r y a n d a p p r o p r i a t e , i n c l u d i n g s e e k i n g m a n d a t e o r s p e c i f i c
p e r f o r m a n c e b y c o u r t o r d e r , t o c a u s e t h e C o m m i s s i o n t o c o m p l y w i t h i t s o b l i g a t i o n s u n d e r t h i s
D i s c l o s u r e C e r t i f i c a t e . A d e f a u l t u n d e r t h i s D i s c l o s u r e C e r t i f i c a t e s h a l l n o t b e d e e m e d a n E v e n t
o f D e f a u l t u n d e r t h e I n d e n t u r e , a n d t h e s o l e r e m e d y u n d e r t h i s D i s c l o s u r e C e r t i f i c a t e i n t h e e v e n t
o f a n y f a i l u r e o f t h e C o m m i s s i o n t o c o m p l y w i t h t h i s D i s c l o s u r e C e r t i f i c a t e s h a l l b e a n a c t i o n t o
c o m p e l p e r f o r m a n c e . T h e C o m m i s s i o n h e r e b y r e p r e s e n t s a n d w a r r a n t s t h a t i t i s c u r r e n t l y n o t i n
d e f a u l t u n d e r a n y o t h e r c o n t i n u i n g d i s c l o s u r e a r r a n g e m e n t e n t e r e d i n t o i n c o n n e c t i o n w i t h t h e
R u l e .
S E C T I O N 1 0 . D u t i e s , I m m u n i t i e s a n d L i a b i l i t i e s o f D i s s e m i n a t i o n A g e n t . T h e
D i s s e m i n a t i o n A g e n t s h a l l h a v e o n l y s u c h d u t i e s a s a r e s p e c i f i c a l l y s e t f o r t h i n t h i s D i s c l o s u r e
C e r t i f i c a t e , a n d t h e C o m m i s s i o n a g r e e s t o i n d e m n i f y a n d s a v e t h e D i s s e m i n a t i o n A g e n t , i t s
o f f i c e r s , d i r e c t o r s , e m p l o y e e s a n d a g e n t s , h a r m l e s s a g a i n s t a n y l o s s , e x p e n s e a n d l i a b i l i t i e s
w h i c h t h e y m a y i n c u r a r i s i n g o u t o f o r i r e t h e e x e r c i s e o r p e r f o r m a n c e o f t h e i r r e s p e c t i v e p o w e r s
a n d d u t i e s h e r e u n d e r , i n c l u d i n g t h e c o s t s a n d e x p e n s e s ( i n c l u d i n g a t t o r n e y s ' f e e s ) o f d e f e n d i n g
a g a i n s t a n y c l a i m o f l i a b i l i t y , b u t e x c l u d i n g l i a b i l i t i e s d u e t o t h e D i s s e m i n a t i o n A g e n t ' s
n e g l i g e n c e o r w i l l f u l m i s c o n d u c t . T h e D i s s e m i n a t i o n A g e n t s h a l l b e p a i d c o m p e n s a t i o n b y t h e
C o m m i s s i o n f o r i t s s e r v i c e s p r o v i d e d h e r e u n d e r i n a c c o r d a n c e w i t h i t s s c h e d u l e o f f e e s a s
a m e n d e d f r o m t i m e t o t i m e , a n d a l l e x p e n s e s , l e g a l f e e s a n d a d v a n c e s m a d e o r i n c u r r e d b y t h e
D i s s e m i n a t i o n A g e n t i n t h e p e r f o r m a n c e o f i t s d u t i e s h e r e u n d e r . T h e D i s s e m i n a t i o n A g e n t s h a l l
h a v e n o d u t y o r o b l i g a t i o n t o r e v i e w a n y i n f o r m a t i o n p r o v i d e d t o i t h e r e u n d e r a n d s h a l l n o t b e
d e e m e d t o b e a c t i n g i n a n y f i d u c i a r y c a p a c i t y f o r t h e D i s t r a c t , t h e B o n d h o l d e r s , o r a n y o t h e r
p a r t y . T h e o b l i g a t i o n s o f t h e C o m m i s s i o n u n d e r t h i s S e c t i o n s h a l l s u r v i v e r e s i g n a t i o n o r
r e m o v a l o f t h e D i s s e m i n a t i o n A g e n t a n d p a y m e n t o f t h e B o n d s .
S E C T I O N 1 1 . B e n e f i c i a r i e s . T h i s D i s c l o s u r e C e r t i f i c a t e s h a l l i n u r e s o l e l y t o t h e b e n e f i t
o f t h e C o m m i s s i o n , t h e D i s s e m i n a t i o n A g e n t , t h e P a r t i c i p a t i n g U n d e r w r i t e r s a n d H o l d e r s a n d
B e n e f i c i a l O w n e r s f r o m t i m e t o t i m e o f t h e B o n d s , a n d s h a l l c r e a t e n o r i g h t s i n a n y o t h e r p e r s o n
o r e n t i t y .
R I V E R S I D E C O U N T Y
T R A N S P O R T A T I O N C O M M I S S I O N
B y :
F - 5
1 4 6
EXHIBIT A
NOTICE TO REPOSITORIES OF FAILURE TO FILE ANNUAL REPORT
Name of Issuer: Riverside County Transportation Commission
Name of Bond Issue: $ Sales Tax Revenue Bonds, Series 2008
Date of Issuance: , 2008
NOTICE IS HEREBY GIVEN that the Riverside County Transportation Commission
(the "Commission') has not provided an Annual Report with respect to the above -named Bonds
as required by that certain Indenture, dated as of June 1, 2008, by and between the Commission
and U.S. Bank National Association (the "Trustee") and that certain First Supplemental
Indenture, dated as of June 1, 2008, by and between the Commission and the Trustee. The
Commission anticipates that the Annual Report will be filed by
Dated:
DIGITAL ASSURANCE CERTIFICATE LLC, on behalf
of the Commission
By:
Its:
cc: Riverside County Transportation Commission
Exhibit A
147
_J
J
ATTACHMENT 4
OH&S Draft
5/6/08
INDENTURE
between
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
and
U.S. BANK NATIONAL ASSOCIATION,
as Trustee
Dated as of June 1, 2008
Relating to
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
SALES TAX REVENUE BONDS
(LIMITED TAX BONDS)
OIIS West:260379475.8
148
"
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T A B L E O F C O N T E N T S
P a g e
A R T I C L E I
E Q U A L I T Y O F S E C U R I T Y ; D E F I N I T I O N S ; C O N T E N T O F C E R T I F I C A T E S A N D
O P I N I O N S
S E C T I O N 1 . 0 1
S E C T I O N 1 . 0 2
S E C T I O N 1 . 0 3
S E C T I O N 2 . 0 1
S E C T I O N 2 . 0 2
S E C T I O N 2 . 0 3
S E C T I O N 2 . 0 4
S E C T I O N 2 . 0 5
S E C T I O N 2 . 0 6
S E C T I O N 2 . 0 7
S E C T I O N 2 . 0 8
S E C T I O N 2 . 0 9
S E C T I O N 2 . 1 0
S E C T I O N 3 . 0 1
S E C T I O N 3 . 0 2
S E C T I O N 3 . 0 3
S E C T I O N 3 . 0 4
S E C T I O N 3 . 0 5
S E C T I O N 3 . 0 6
S E C T I O N 3 . 0 7
S E C T I O N 4 . 0 1
S E C T I O N 4 . 0 2
S E C T I O N 4 . 0 3
S E C T I O N 4 . 0 4
S E C T I O N 5 . 0 1
S E C T I O N 5 . 0 2
O H S W e s t : 2 6 0 3 7 9 4 7 5 . 8
E q u a l i t y o f S e c u r i t y 3
D e f i n i t i o n s 3
C o n t e n t o f C e r t i f i c a t e s 2 1
A R T I C L E I I
T H E B O N D S
A u t h o r i z a t i o n o f B o n d s 2 2
T e r m s o f t h e B o n d s 2 2
F o r m o f B o n d s 2 2
E x e c u t i o n o f B o n d s 2 2
T r a n s f e r o f B o n d s 2 3
E x c h a n g e o f B o n d s 2 3
B o n d R e g i s t e r 2 3
T e m p o r a r y B o n d s 2 4
B o n d s M u t i l a t e d ; L o s t ; D e s t r o y e d o r S t o l e n 2 4
U s e o f S e c u r i t i e s D e p o s i t o r y 2 5
A R T I C L E I I I
I S S U A N C E O F B O N D S
I s s u a n c e o f B o n d s 2 6
I s s u a n c e o f A d d i t i o n a l B o n d s 2 6
P r o c e e d i n g s f o r I s s u a n c e o f A d d i t i o n a l B o n d s 2 7
I s s u a n c e o f R e f u n d i n g B o n d s 2 8
L i m i t a t i o n s o n t h e I s s u a n c e o f O b l i g a t i o n s P a y a b l e f r o m S a l e s T a x
R e v e n u e s ; P a r i t y O b l i g a t i o n s ; S u b o r d i n a t e O b l i g a t i o n s 2 9
C a l c u l a t i o n o f M a x i m u m A n n u a l D e b t S e r v i c e w i t h R e s p e c t t o
B o n d s a n d P a r i t y O b l i g a t i o n s 3 1
A p p l i c a t i o n o f P r o c e e d s 3 1
A R T I C L E I V
R E D E M P T I O N , T E N D E R A N D P U R C H A S E O F B O N D S
T e r m s o f R e d e m p t i o n , T e n d e r a n d P u r c h a s e 3 1
N o t i c e o f R e d e m p t i o n 3 2
P a r t i a l R e d e m p t i o n o f B o n d s 3 3
E f f e c t o f R e d e m p t i o n 3 3
A R T I C L E V
S A L E S T A X R E V E N U E S
P l e d g e o f R e v e n u e s ; R e v e n u e F u n d 3 3
A l l o c a t i o n o f S a l e s T a x R e v e n u e s 3 4
1 -
1 4 9
TABLE OF CONTENTS
(continued)
Page
SECTION 5.03 Application of Interest Fund 38
SECTION 5.04 Application of Principal Fund 38
SECTION 5.05 Establishment, Funding and Application of Bond Reserve Funds 39
SECTION 5.06 Application of Subordinate Obligations Fund 42
SECTION 5.07 Application of Fees and Expenses Fund 42
SECTION 5.08 Application of Redemption Fund 42
SECTION 5.09 Rebate Fund 42
SECTION 5.10 Payment Provisions Applicable to Interest Rate Swap Agreements 43
SECTION 5.11 Investment in Funds and Accounts 44
ARTICLE VI
COVENANTS OF THE COMMISSION
SECTION 6.01 Punctual Payments 45
SECTION 6.02 Extension of Payment of Bonds 45
SECTION 6.03 Waiver of Laws 46
SECTION 6.04 Further Assurances 46
SECTION 6.05 Against Encumbrances 46
SECTION 6.06 Accounting Records and Financial Statements 46
SECTION 6.07 Collection of Sales Tax Revenues 46
SECTION 6.08 Tax Covenants 47
SECTION 6.09 Continuing Disclosure 48
ARTICLE VII
EVENTS OF DEFAULT AND REMEDIES
SECTION 7.01 Events of Default 48
SECTION 7.02 Application of the Revenues and Other Funds After Default; No
Acceleration 49
SECTION 7.03 Trustee to Represent Bondholders 50
SECTION 7.04 Bondholders' Direction of Proceedings 51
SECTION 7.05 Limitation on Bondholders' Right to Sue 51
SECTION 7.06 Absolute Obligation of the Commission 52
SECTION 7.07 Termination of Proceedings 52
SECTION 7.08 Remedies Not Exclusive 52
SECTION 7.09 No Waiver of Default 52
SECTION 7.10 Credit Provider Directs Remedies Upon Event of Default 52
ARTICLE VIII
THE TRUSTEE
SECTION 8.01 Appointment, Duties Immunities and Liabilities of Trustee 53
SECTION 8.02 Accounting Records and Monthly Statements 54
SECTION 8.03 Merger or Consolidation 55
SECTION 8.04 Liability of Trustee 55
SECTION 8.05 Right of Trustee to Rely on Documents and Opinions 57
OHS West:260379475.8
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•
150
"
T A B L E O F C O N T E N T S
( c o n t i n u e d )
P a g e
S E C T I O N 8 . 0 6 C o m p e n s a t i o n a n d I n d e m n i f i c a t i o n o f T r u s t e e 5 8
A R T I C L E I X
M O D I F I C A T I O N O R A M E N D M E N T O F T H I S I N D E N T U R E
S E C T I O N 9 . 0 1 A m e n d m e n t s P e r m i t t e d 5 8
S E C T I O N 9 . 0 2 E f f e c t o f S u p p l e m e n t a l I n d e n t u r e 6 0
S E C T I O N 9 . 0 3 E n d o r s e m e n t o f B o n d s ; P r e p a r a t i o n o f N e w B o n d s 6 1
S E C T I O N 9 . 0 4 A m e n d m e n t o f P a r t i c u l a r B o n d s 6 1
A R T I C L E X
D E F E A S A N C E
S E C T I O N 1 0 . 0 1 D i s c h a r g e o f I n d e n t u r e 6 1
S E C T I O N 1 0 . 0 2 D i s c h a r g e o f L i a b i l i t y o n B o n d s 6 2
S E C T I O N 1 0 . 0 3 D e p o s i t o f M o n e y o r S e c u r i t i e s 6 2
S E C T I O N 1 0 . 0 4 P a y m e n t o f B o n d s A f t e r D i s c h a r g e o f I n d e n t u r e 6 3
A R T I C L E X I
M I S C E L L A N E O U S
S E C T I O N 1 1 . 0 1 L i a b i l i t y o f C o m m i s s i o n L i m i t e d t o S a l e s T a x R e v e n u e s 6 3
S E C T I O N 1 1 . 0 2 S u c c e s s o r I s D e e m e d I n c l u d e d i n A l l R e f e r e n c e s t o P r e d e c e s s o r 6 4
S E C T I O N 1 1 0 3 L i m i t a t i o n o f R i g h t s 6 4
S E C T I O N 1 1 . 0 4 W a i v e r o f N o t i c e 6 4
S E C T I O N 1 1 . 0 5 D e s t r u c t i o n o r D e l i v e r y o f C a n c e l e d B o n d s 6 4
S E C T I O N 1 1 . 0 6 S e v e r a b i l i t y o f I n v a l i d P r o v i s i o n s 6 4
S E C T I O N 1 1 . 0 7 N o t i c e t o C o m m i s s i o n a n d T r u s t e e 6 5
S E C T I O N 1 1 . 0 8 E v i d e n c e o f R i g h t s o f B o n d h o l d e r s 6 5
S E C T I O N 1 1 . 0 9 D i s q u a l i f i e d B o n d s 6 5
S E C T I O N 1 1 . 1 0 M o n e y H e l d f o r P a r t i c u l a r B o n d s 6 6
S E C T I O N 1 1 . 1 1 F u n d s a n d A c c o u n t s 6 6
S E C T I O N 1 1 . 1 2 L i m i t a t i o n s o n R i g h t s o f C r e d i t P r o v i d e r s , L i q u i d i t y P r o v i d e r s ,
R e s e r v e F a c i l i t y P r o v i d e r s 6 6
S E C T I O N 1 1 . 1 3 A r t i c l e a n d S e c t i o n H e a d i n g s a n d R e f e r e n c e s 6 7
S E C T I O N 1 1 . 1 4 W a i v e r o f P e r s o n a l L i a b i l i t y 6 7
S E C T I O N 1 1 . 1 5 G o v e r n i n g L a w 6 7
S E C T I O N 1 1 . 1 6 B u s i n e s s D a y 6 7
S E C T I O N 1 1 . 1 7 E f f e c t i v e D a t e o f I n d e n t u r e 6 7
S E C T I O N 1 1 . 1 8 E x e c u t i o n i n C o u n t e r p a r t s 6 7
O H S W e s t : 2 6 0 3 7 9 4 7 5 . 8
- l i l -
1 5 1
"
"
"
I N D E N T U R E
T h i s I N D E N T U R E , d a t e d a s o f J u n e 1 , 2 0 0 8 ( a s m o r e f u l l y d e f i n e d i n S e c t i o n 1 . 0 2 , t h e
" I n d e n t u r e " ) , b e t w e e n t h e R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N C O M M I S S I O N , a
p u b l i c e n t i t y d u l y e s t a b l i s h e d a n d e x i s t i n g u n d e r t h e l a w s o f t h e S t a t e o f C a l i f o r n i a ( t h e
" C o m m i s s i o n " ) , a n d U . S . B A N K N A T I O N A L A S S O C I A T I O N , a n a t i o n a l b a n k i n g a s s o c i a t i o n
d u l y o r g a n i z e d a n d e x i s t i n g u n d e r a n d b y v i r t u e o f t h e l a w s o f t h e U n i t e d S t a t e s o f A m e r i c a , a s
t r u s t e e ( t h e " T r u s t e e " ) ;
W I T N E S S E T H :
W H E R E A S , t h e C o m m i s s i o n i s a c o u n t y t r a n s p o r t a t i o n c o m m i s s i o n d u l y o r g a n i z e d a n d
e x i s t i n g p u r s u a n t t o t h e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n s A c t , b e i n g D i v i s i o n 1 2 o f t h e
P u b l i c U t i l i t i e s C o d e o f t h e S t a t e o f C a l i f o r n i a ( S e c t i o n 1 3 0 0 0 0 e t s e q . ) ;
W H E R E A S , t h e C o m m i s s i o n i s a u t h o r i z e d p u r s u a n t t o t h e R i v e r s i d e C o u n t y
T r a n s p o r t a t i o n S a l e s T a x A c t , b e i n g D i v i s i o n 2 5 o f t h e P u b l i c U t i l i t i e s C o d e o f t h e S t a t e o f
C a l i f o r n i a ( S e c t i o n 2 4 0 0 0 0 e t s e q . ) ( t h e " A c t " ) , t o , a m o n g o t h e r t h i n g s , a n d w i t h v o t e r a p p r o v a l ,
l e v y a r e t a i l t r a n s a c t i o n s a n d u s e t a x i n a c c o r d a n c e w i t h t h e p r o v i s i o n s o f P a r t 1 . 6 ( c o m m e n c i n g
w i t h S e c t i o n 7 2 5 1 ) o f D i v i s i o n 2 o f t h e C a l i f o r n i a R e v e n u e a n d T a x a t i o n C o d e ( t h e " S a l e s T a x
L a w " ) a n d t o i s s u e l i m i t e d t a x b o n d s p a y a b l e f r o m t h e p r o c e e d s o f s u c h t a x ;
W H E R E A S , t h e C o m m i s s i o n a d o p t e d O r d i n a n c e N o . 8 8 - 1 , n a m e d t h e " T r a n s p o r t a t i o n
E x p e n d i t u r e P l a n a n d R e t a i l T r a n s a c t i o n a n d U s e T a x O r d i n a n c e " ( " 1 9 8 8 O r d i n a n c e " ) , o n J u l y 6 ,
1 9 8 8 , p u r s u a n t t o t h e p r o v i s i o n s o f t h e A c t , w h i c h O r d i n a n c e p r o v i d e d f o r t h e i m p o s i t i o n o f a
r e t a i l t r a n s a c t i o n s a n d u s e t a x ( t h e " 1 9 8 8 S a l e s T a x " ) a p p l i c a b l e i n t h e i n c o r p o r a t e d a n d
u n i n c o r p o r a t e d t e r r i t o r y o f t h e C o u n t y o f R i v e r s i d e ( t h e " C o u n t y ' ) i n a c c o r d a n c e w i t h t h e S a l e s
T a x L a w a t t h e r a t e o f o n e - h a l f o f o n e p e r c e n t ( 1 / 2 % ) f o r a p e r i o d n o t t o e x c e e d t w e n t y ( 2 0 )
y e a r s ;
W H E R E A S , b y i t s t e r m s , 1 9 8 8 O r d i n a n c e b e c a m e e f f e c t i v e a t t h e c l o s e o f t h e p o l l s o n
N o v e m b e r 8 , 1 9 8 8 , t h e d a y o f t h e e l e c t i o n a t w h i c h t h e p r o p o s i t i o n i m p o s i n g t h e 1 9 8 8 S a l e s T a x
w a s a p p r o v e d b y a m a j o r i t y v o t e o f t h e e l e c t o r s v o t i n g o n t h e m e a s u r e , a n d t h e c o l l e c t i o n o f t h e
1 9 8 8 S a l e s T a x c o m m e n c e d o n J u l y 1 , 1 9 8 9 ;
W H E R E A S , t h e C o m m i s s i o n a d o p t e d O r d i n a n c e N o . 0 2 - 0 0 1 , n a m e d t h e " T r a n s p o r t a t i o n
E x p e n d i t u r e P l a n a n d R e t a i l T r a n s a c t i o n a n d U s e T a x O r d i n a n c e " ( t h e " 2 0 0 2 O r d i n a n c e " ) o n
M a y 8 , 2 0 0 2 , p u r s u a n t t o t h e p r o v i s i o n s o f t h e A c t , w h i c h O r d i n a n c e p r o v i d e s f o r t h e i m p o s i t i o n
o f a r e t a i l t r a n s a c t i o n s a n d u s e t a x ( t h e " S a l e s T a x " ) a p p l i c a b l e i n t h e i n c o r p o r a t e d a n d
u n i n c o r p o r a t e d t e r r i t o r y o f t h e C o u n t y i n a c c o r d a n c e w i t h t h e p r o v i s i o n s o f t h e S a l e s T a x L a w a t
t h e r a t e o f z e r o p e r c e n t ( 0 % ) u n t i l t h e e x p i r a t i o n o f t h e 1 9 8 8 S a l e s T a x o n J u n e 3 0 , 2 0 0 9 , a n d
t h e r e a f t e r a t t h e r a t e o f o n e - h a l f o f o n e p e r c e n t ( 1 / 2 % ) f o r a p e r i o d n o t t o e x c e e d t h i r t y ( 3 0 )
y e a r s ;
W H E R E A S , b y i t s t e r m s , t h e 2 0 0 2 O r d i n a n c e b e c a m e e f f e c t i v e a t t h e c l o s e o f t h e p o l l s
o n N o v e m b e r 5 , 2 0 0 2 , t h e d a y o f t h e e l e c t i o n a t w h i c h t h e p r o p o s i t i o n i m p o s i n g t h e S a l e s T a x
w a s a p p r o v e d b y m o r e t h a n t w o - t h i r d s o f t h e e l e c t o r s v o t i n g o n t h e m e a s u r e ;
O H S W e s t : 2 6 0 3 7 9 4 7 5 . 8 1
1 5 2
WHEREAS, the 2002 Ordinance empowers the Commission to sell or issue, from time to
time, on or before the collection of the Sales Tax, bonds, or other evidences of indebtedness, in
the aggregate principal amount at any one time outstanding not to exceed any limit required by
law for capital expenditures for various purposes, including to carry out the transportation
projects described in the Riverside County Transportation Improvement Plan, adopted as part of
the 2002 Ordinance, including any future amendments thereto (the 'Expenditure Plan");
WHEREAS, the Commission is authorized by Section 240309 of the California Public
Utilities Code to issue from time to time limited tax bonds (defined to include indebtedness and
securities of any kind or class, including sales tax revenue bonds), secured and payable in whole
or in part from revenues of the Sales Tax (as more fully defined in Section 1.02, the "Sales Tax
Revenues");
WHEREAS, the Commission has heretofore entered into an Indenture, dated as of
March 1, 2005 (the "Notes Indenture"), between the Commission and U.S. Bank National
Association, successor by merger to U.S. Bank Trust National Association; as trustee, pursuant
to which the Commission has authorized the issuance of certain limited tax bonds (the "Notes")
payable from and secured by the Sales Tax Revenues;
WHEREAS, the Commission has heretofore executed and delivered interest rate swap
agreements in an aggregate notional amount of $185 million (the "Initial Swaps"), which Initial
Swaps have an effective date of October 1, 2009;
WHEREAS, the Commission has determined to enter into this Indenture in order to
provide for the authentication and delivery of certain limited tax bonds (the 'Bonds"), to
establish and declare the terms and conditions upon which the Bonds and other obligations
secured by the retail transactions and use tax shall be issued and secured and to secure the
payment of the principal thereof, premium (if any), and interest on the Bonds and obligations
secured by the retail transactions and use tax on a parity with the Bonds (as more fully defined in
Section 1.02, 'Parity Obligations");
WHEREAS, the execution and delivery of this Indenture has in all respects been duly and
validly authorized by resolution duly passed and approved by the Commission; and
WHEREAS, all acts, conditions and things required by law to exist, to have happened
and to have been performed precedent to and in connection with the execution and the entering
into of this Indenture do exist, have happened and have been performed in regular and due time,
form and manner as required by law, and the parties hereto are now duly authorized to execute
and enter into this Indenture;
NOW, THEREFORE, THIS INDENTURE WITNESSETH, that in order to secure the
payment of the principal of, premium, if any, and the interest on all Bonds at any time issued,
authenticated and delivered hereunder, to secure the payment of Parity Obligations in accordance
with terms hereof and to provide the terms and conditions under which all property, rights and
interests hereby assigned and pledged are to be dealt with and disposed of, and to secure
performance and observance of the terms, conditions, stipulations, covenants, agreements, trusts,
uses and purposes hereinafter expressed, and in consideration of the premises and of the material
OHS West:260379475.8 2
153
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"
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c o v e n a n t s h e r e i n c o n t a i n e d a n d o f t h e p u r c h a s e a n d a c c e p t a n c e o f t h e B o n d s b y t h e o w n e r s
t h e r e o f , a n d f o r o t h e r v a l u a b l e c o n s i d e r a t i o n , t h e r e c e i p t a n d s u f f i c i e n c y o f w h i c h i s h e r e b y
a c k n o w l e d g e d , t h e C o m m i s s i o n d o e s h e r e b y a g r e e a n d c o v e n a n t w i t h t h e T r u s t e e f o r t h e b e n e f i t
o f t h e r e s p e c t i v e o w n e r s , f r o m t i m e t o t i m e , o f t h e B o n d s , o r a n y p a r t t h e r e o f , a n d f o r t h e b e n e f i t
o f t h e h o l d e r s o f P a r i t y O b l i g a t i o n s , i n a c c o r d a n c e w i t h t e r m s h e r e o f , a s f o l l o w s :
A R T I C L E I
E Q U A L I T Y O F S E C U R I T Y ; D E F I N I T I O N S ;
C O N T E N T O F C E R T I F I C A T E S A N D O P I N I O N S
S E C T I O N 1 . 0 1 E q u a l i t y o f S e c u r i t y . I n c o n s i d e r a t i o n o f t h e a c c e p t a n c e o f t h e
B o n d s b y t h e o w n e r s t h e r e o f f r o m t i m e t o t i m e , t h i s I n d e n t u r e s h a l l b e d e e m e d t o b e a n d s h a l l
c o n s t i t u t e a c o n t r a c t a m o n g t h e C o m m i s s i o n , t h e T r u s t e e a n d t h e o w n e r s f r o m t i m e t o t i m e o f t h e
B o n d s a n d t h e c o v e n a n t s a n d a g r e e m e n t s h e r e i n s e t f o r t h t o b e p e r f o r m e d b y o r o n b e h a l f o f t h e
C o m m i s s i o n o r t h e T r u s t e e s h a l l b e f o r t h e e q u a l a n d p r o p o r t i o n a t e b e n e f i t , s e c u r i t y a n d
p r o t e c t i o n o f a l l o w n e r s o f t h e B o n d s , w i t h o u t p r e f e r e n c e , p r i o r i t y o r d i s t i n c t i o n a s t o s e c u r i t y o r
o t h e r w i s e o f a n y o f t h e B o n d s o v e r a n y o f t h e o t h e r s b y r e a s o n s o f t h e S e r i e s , t i m e o f i s s u e , s a l e
o r n e g o t i a t i o n t h e r e o f o r f o r a n y c a u s e w h a t s o e v e r , e x c e p t a s e x p r e s s l y p r o v i d e d t h e r e i n o r
h e r e i n . N o t h i n g h e r e i n s h a l l p r e v e n t a d d i t i o n a l s e c u r i t y b e i n g p r o v i d e d f o r t h e b e n e f i t o f a
p a r t i c u l a r S e r i e s o f B o n d s u n d e r a n y s u p p l e m e n t t o t h i s I n d e n t u r e .
S E C T I O N 1 . 0 2 D e f i n i t i o n s . U n l e s s t h e c o n t e x t o t h e r w i s e r e q u i r e s , t h e t e r m s
d e f i n e d i n t h i s S e c t i o n s h a l l , f o r a l l p u r p o s e s o f t h i s I n d e n t u r e a n d o f a n y S u p p l e m e n t a l I n d e n t u r e
a n d o f a n y c e r t i f i c a t e , o p i n i o n o r o t h e r d o c u m e n t h e r e i n m e n t i o n e d , h a v e t h e m e a n i n g s h e r e i n
s p e c i f i e d , t o b e e q u a l l y a p p l i c a b l e t o b o t h t h e s i n g u l a r a n d p l u r a l f o r m s o f a n y o f t h e t e r m s
h e r e i n d e f i n e d .
" A c c r e t e d V a l u e " m e a n s , w i t h r e s p e c t t o a n y C a p i t a l A p p r e c i a t i o n B o n d , t h e p r i n c i p a l
a m o u n t t h e r e o f p l u s t h e i n t e r e s t a c c r u e d t h e r e o n , c o m p o u n d e d a t t h e a p p r o x i m a t e i n t e r e s t r a t e
t h e r e o n o n e a c h d a t e s p e c i f i e d t h e r e i n . T h e A c c r e t e d V a l u e a t a n y d a t e s h a l l b e t h e a m o u n t s s e t
f o r t h i n t h e A c c r e t e d V a l u e T a b l e a s o f s u c h d a t e , i f s u c h d a t e i s a c o m p o u n d i n g d a t e , a n d i f n o t ,
a s o f t h e i m m e d i a t e l y p r e c e d i n g c o m p o u n d i n g d a t e .
" A c c r e t e d V a l u e T a b l e " m e a n s t h e t a b l e d e n o m i n a t e d a s s u c h w h i c h a p p e a r s a s a n e x h i b i t
t o , a n d t o w h i c h r e f e r e n c e i s m a d e i n , a S u p p l e m e n t a l I n d e n t u r e p r o v i d i n g f o r a S e r i e s o f C a p i t a l
A p p r e c i a t i o n B o n d s i s s u e d p u r s u a n t t o s u c h S u p p l e m e n t a l I n d e n t u r e .
" A c t " m e a n s t h e R i v e r s i d e C o u n t y T r a n s p o r t a t i o n S a l e s T a x A c t , D i v i s i o n 2 5
( S e c t i o n 2 4 0 0 0 0 e t s e q . ) o f t h e P u b l i c U t i l i t i e s C o d e o f t h e S t a t e o f C a l i f o r n i a , a s n o w i n e f f e c t
a n d a s i t m a y f r o m t i m e t o t i m e h e r e a f t e r b e a m e n d e d o r s u p p l e m e n t e d .
" A l t e r n a t e C r e d i t E n h a n c e m e n t " m e a n s , w i t h r e s p e c t t o a S e r i e s o f B o n d s , a n y I n s u r a n c e ,
l e t t e r o f c r e d i t , l i n e o f c r e d i t , s u r e t y b o n d o r o t h e r i n s t r u m e n t , i f a n y , w h i c h s e c u r e s o r g u a r a n t e e s
t h e p a y m e n t o f p r i n c i p a l o f a n d i n t e r e s t o n a S e r i e s o f B o n d s , i s s u e d b y a n i n s u r a n c e c o m p a n y ,
c o m m e r c i a l b a n k , p e n s i o n f u n d o r o t h e r f i n a n c i a l i n s t i t u t i o n , a n d d e l i v e r e d o r m a d e a v a i l a b l e t o
t h e T r u s t e e , a s a r e p l a c e m e n t o r s u b s t i t u t i o n f o r a n y C r e d i t E n h a n c e m e n t t h e n i n e f f e c t .
O I I S W e s t 2 6 0 3 7 9 4 7 5 . 8 3
1 5 4
"Alternate Liquidity Facility" means, with respect to a Series of Bonds, a line of credit,
letter of credit, standby purchase agreement or similar liquidity facility, issued by a commercial
bank, insurance company, pension fund or other financial institution, and delivered or made
available to the Trustee, as a replacement or substitute for any Liquidity Facility then in effect.
"Annual Debt Service" means, for any Fiscal Year, the aggregate amount (without
duplication) of principal and interest on all Bonds and Parity Obligations becoming due and
payable during such Fiscal Year calculated using the principles and assumptions set forth under
the defmition of Debt Service.
"Assumed Debt Service" means for any Fiscal Year the aggregate amount of principal
and interest which would be payable on all Bonds if each Excluded Principal Payment were:
amortized on a substantially level debt service basis or other amortization schedule provided by
the Commission for a period commencing on the date of calculation of such Assumed Debt
Service and ending on the earlier of (i) the date specified by the Commission not exceeding thirty
(30) years from the date of calculation, or (ii) the Tax Expiration Date, such Assumed Debt
Service to be calculated on a level debt service basis or other amortization schedule provided by
the Commission, based on a fixed interest rate equal to the rate at which the Commission could
borrow for such period, as set forth in a certificate of a financial advisor or investment banker,
delivered to the Trustee, who may rely conclusively on such certificate, such certificate to be
delivered within thirty (30) days of the date of calculation.
"Authorized Representative" means the Executive Director, the Deputy Executive
Director, the Chief Financial Officer, the Accounting and Human Resources Manager, or any
other person designated to act on behalf of the Commission by a written certificate furnished to
the Trustee containing the specimen signature of such person and signed on behalf of the
Commission by an Authorized Representative.
"Beneficial Owner" means any Person who has the power, directly or indirectly, to vote
or consent with respect to, or to dispose of ownership of any Bond, including, without limitation,
any Person holding Bonds tbrough nominees or depositories, including the Securities Depository.
"Board" means the Board of Commissioners of the Commission.
"Bond Obligation" means, as of any given date of calculation, (1) with respect to any
Outstanding Current Interest Bond, the principal amount of such Bond, and (2) with respect to
any Outstanding Capital Appreciation Bond, the Accreted Value thereof.
"Bond Register" has the meaning given to such term in Section 2.07.
"Bond Reserve Fund" means any fund by that name established with respect to one or
more Series of Bonds pursuant to the Supplemental Indenture establishing the terms and
provisions of such Series of Bonds.
"Bond Reserve Requirement" with respect to a Series of Bonds for which the
Commission shall have established a Bond Reserve Fund shall have the meaning specified in the
Supplemental Indenture establishing the terms and provisions of such Series of Bonds.
OHS West:260379475.8 4
•
155
"
" B o n d h o l d e r " o r " H o l d e r " , w h e n e v e r u s e d h e r e i n w i t h r e s p e c t t o a B o n d , m e a n s t h e
p e r s o n i n w h o s e n a m e s u c h B o n d i s r e g i s t e r e d .
" B o n d s " m e a n s t h e R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n S a l e s T a x R e v e n u e
B o n d s ( L i m i t e d T a x B o n d s ) a u t h o r i z e d b y , a n d a t a n y t i m e O u t s t a n d i n g p u r s u a n t t o , t h i s
I n d e n t u r e .
" B u s i n e s s D a y " m e a n s , e x c e p t a s i s o t h e r w i s e p r o v i d e d i n t h e S u p p l e m e n t a l I n d e n t u r e
p u r s u a n t t o w h i c h a S e r i e s o f B o n d s a r e i s s u e d , a n y d a y o t h e r t h a n ( 1 ) a S a t u r d a y , S u n d a y , o r a
d a y o n w h i c h b a n k i n g i n s t i t u t i o n s i n t h e S t a t e , t h e S t a t e o f N e w Y o r k o r t h e j u r i s d i c t i o n i n w h i c h
t h e C o r p o r a t e T r u s t O f f i c e o f t h e T r u s t e e i s l o c a t e d a r e a u t h o r i z e d o r o b l i g a t e d b y l a w o r
e x e c u t i v e o r d e r t o b e c l o s e d , ( 2 ) f o r p u r p o s e s o f p a y m e n t s a n d o t h e r a c t i o n s r e l a t i n g t o B o n d s
s e c u r e d b y a C r e d i t E n h a n c e m e n t o r s u p p o r t e d b y a L i q u i d i t y F a c i l i t y , a d a y u p o n w h i c h
c o m m e r c i a l b a n k s i n t h e c i t y i n w h i c h i s l o c a t e d t h e o f f i c e o f t h e i s s u i n g b a n k a t w h i c h d e m a n d s
f o r p a y m e n t u n d e r t h e C r e d i t E n h a n c e m e n t o r L i q u i d i t y F a c i l i t y , a s a p p l i c a b l e , a r e t o b e
p r e s e n t e d a r e a u t h o r i z e d o r o b l i g a t e d b y l a w o r e x e c u t i v e o r d e r t o b e c l o s e d , o r ( 3 ) a d a y o n
w h i c h t h e N e w Y o r k S t o c k E x c h a n g e i s c l o s e d _
" C a p i t a l A p p r e c i a t i o n B o n d s " m e a n s t h e B o n d s o f a n y S e r i e s d e s i g n a t e d a s C a p i t a l
A p p r e c i a t i o n B o n d s i n t h e S u p p l e m e n t a l I n d e n t u r e p r o v i d i n g f o r t h e i s s u a n c e o f s u c h S e r i e s o f
B o n d s a n d o n w h i c h i n t e r e s t i s c o m p o u n d e d a n d p a i d a t m a t u r i t y o r o n p r i o r r e d e m p t i o n .
" C e r t i f i c a t e , " " S t a t e m e n t , " " R e q u e s t , " ' R e q u i s i t i o n " a n d " O r d e r " o f t h e C o m m i s s i o n
m e a n , r e s p e c t i v e l y , a w r i t t e n c e r t i f i c a t e , s t a t e m e n t , r e q u e s t , r e q u i s i t i o n o r o r d e r s i g n e d i n t h e
n a m e o f t h e C o m m i s s i o n b y a n A u t h o r i z e d R e p r e s e n t a t i v e . I f a n d t o t h e e x t e n t r e q u i r e d b y
S e c t i o n 1 . 0 3 , e a c h s u c h i n s t r u m e n t s h a l l i n c l u d e t h e s t a t e m e n t s p r o v i d e d f o r i n S e c t i o n 1 . 0 3 .
" C o d e " m e a n s t h e I n t e r n a l R e v e n u e C o d e o f 1 9 8 6 , a n d t h e r e g u l a t i o n s a p p l i c a b l e t h e r e t o
o r i s s u e d t h e r e u n d e r , o r a n y s u c c e s s o r t o t h e I n t e r n a l R e v e n u e C o d e o f 1 9 8 6 . R e f e r e n c e t o a n y
p a r t i c u l a r C o d e s e c t i o n s h a l l , i n t h e e v e n t o f s u c h a s u c c e s s o r C o d e , b e d e e m e d t o b e r e f e r e n c e t o
t h e s u c c e s s o r t o s u c h C o d e s e c t i o n .
" C o m m i s s i o n " m e a n s t h e R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n , a p u b l i c e n t i t y
o f t h e S t a t e , d u l y o r g a n i z e d a n d e x i s t i n g u n d e r t h e A c t .
" C o n t i n u i n g D i s c l o s u r e A g r e e m e n t " m e a n s , w i t h r e s p e c t t o e a c h S e r i e s o f B o n d s
r e q u i r i n g a n u n d e r t a k i n g r e g a r d i n g d i s c l o s u r e u n d e r R u l e 1 5 c 2 - 1 2 , t h e C o n t i n u i n g D i s c l o s u r e
A g r e e m e n t , d a t e d t h e d a t e o f i s s u a n c e o f s u c h S e r i e s o f B o n d s , e x e c u t e d b y t h e C o m m i s s i o n a n d
a D i s s e m i n a t i o n A g e n t , a s t h e s a m e m a y b e s u p p l e m e n t e d , m o d i f i e d o r a m e n d e d i n a c c o r d a n c e
w i t h i t s t e r m s .
" C o r p o r a t e T r u s t O f f i c e " o r c o r p o r a t e t r u s t o f f i c e m e a n s t h e c o r p o r a t e t r u s t o f f i c e o f t h e
T r u s t e e a t U . S . B a n k N a t i o n a l A s s o c i a t i o n , 6 3 3 W e s t F i f t h S t r e e t , 2 4 t h F l o o r , L o s A n g e l e s C A
9 0 0 7 1 , A t t e n t i o n : C o r p o r a t e T r u s t S e r v i c e s , o r s u c h o t h e r o r a d d i t i o n a l o f f i c e s a s m a y b e
d e s i g n a t e d b y t h e T r u s t e e f r o m t i m e t o t i m e .
" C o s t s o f I s s u a n c e " m e a n s a l l i t e m s o f e x p e n s e d i r e c t l y o r i n d i r e c t l y p a y a b l e b y o r
r e i m b u r s a b l e t o t h e C o m m i s s i o n a n d r e l a t e d t o t h e a u t h o r i z a t i o n , e x e c u t i o n , s a l e a n d d e l i v e r y o f
O H S W e s t : 2 6 0 3 7 9 4 7 5 . 8 5
1 5 6
a Series of Bonds, including but not limited to advertising and printing costs, costs of preparation
and reproduction of documents, filing and recording fees, travel expenses and costs relating to
rating agency meetings and other meetings concerning such Series of Bonds, initial fees and
charges of the Trustee, legal fees and charges, fees and disbursements of consultants and
professionals, fmancial advisor fees and expenses, rating agency fees, fees and charges for
preparation, execution, transportation and safekeeping of Bonds, surety, insurance, credit
enhancement and liquidity costs, termination fees payable in connection with the termination of
an Interest Rate Swap Agreement in connection with the delivery of such Series of Bonds, and
any other cost, charge or fee in connection with the initial delivery of a Series of Bonds or any
Parity Obligations delivered in connection with a Series of Bonds.
"Costs of Issuance Fund" means a fund by that name established pursuant to the
provisions of a Supplemental Indenture to pay Costs of Issuance with respect to a Series of
Bonds being issued pursuant to such Supplemental Indenture.
"Costs of the Project" means all items of expense related to the Project and directly or
indirectly payable by or reimbursable to the Commission in accordance with the Act and the
Ordinance.
"Counterparty" means an entity which has entered into an Interest Rate Swap Agreement
with the Commission.
"County" means the County of Riverside, California.
"Credit Enhancement" means, with respect to a Series of Bonds, any Insurance, letter of
credit, line of credit, surety bond or other instrument, if any, which secures or guarantees the
payment of principal of and interest on a Series of Bonds, issued by an insurance company,
commercial bank or other financial institution, and delivered or made available to the Trustee, as
from time to time supplemented or amended pursuant to its terms, or, in the event of the delivery
or availability of an Alternate Credit Enhancement, such Alternate Credit Enhancement.
"Credit Provider" means, with respect to a Series of Bonds, the Insurer, commercial bank
or other financial institution issuing (or having primary obligation, or acting as agent for the
financial institutions obligated, under) a Credit Enhancement then in effect with respect to such
Series of Bonds.
"Current Interest Bonds" means the Bonds of any Series designated as Current Interest
Bonds in the Supplemental Indenture providing for the issuance of such Series of Bonds and that
pay interest to the Holders thereof on a periodic basis prior to maturity.
"Debt Service," when used with respect to any Bonds or Panty Obligations (for purposes
of this defmition of "Debt Service," herein collectively referred to as "Obligations"), means, as of
any date of calculation and with respect to any Fiscal Year, the sum of (1) the interest falling due
on such Obligations during such Fiscal Year and (2) the principal or Mandatory Sinking Account
Payments required with respect to such Obligations during such Fiscal Year; computed on the
assumption that no portion of such Obligations shall cease to be Outstanding during such Fiscal
Year except by reason of the application of such scheduled payments; provided, however, that
for purposes of such computation:
OHS West:260379475.8
6
157
"
"
"
( A ) E x c l u d e d P r i n c i p a l P a y m e n t s ( a n d t h e i n t e r e s t r e l a t e d t h e r e t o p r o v i d e d s u c h
i n t e r e s t i s b e i n g p a i d f r o m t h e s a m e s o u r c e a s t h e E x c l u d e d P r i n c i p a l P a y m e n t s ) s h a l l b e
e x c l u d e d f r o m s u c h c a l c u l a t i o n a n d A s s u m e d D e b t S e r v i c e s h a l l b e i n c l u d e d i n s u c h c a l c u l a t i o n ;
( B ) i n d e t e r m i n i n g t h e p r i n c i p a l a m o u n t d u e i n e a c h F i s c a l Y e a r , p a y m e n t . s h a l l
( u n l e s s a d i f f e r e n t s u b s e c t i o n o f t h i s d e f i n i t i o n a p p l i e s f o r p u r p o s e s o f d e t e r m i n i n g p r i n c i p a l
m a t u r i t i e s o r a m o r t i z a t i o n ) b e a s s u m e d t o b e m a d e i n a c c o r d a n c e w i t h a n y a m o r t i z a t i o n s c h e d u l e
e s t a b l i s h e d f o r s u c h O b l i g a t i o n s , i n c l u d i n g a n y M a n d a t o r y S i n k i n g A c c o u n t P a y m e n t s o r a n y
s c h e d u l e d r e d e m p t i o n o r p a y m e n t o f O b l i g a t i o n s o n t h e b a s i s o f A c c r e t e d V a l u e , a n d f o r s u c h
p u r p o s e , t h e r e d e m p t i o n p a y m e n t o r p a y m e n t o f A c c r e t e d V a l u e s h a l l b e d e e m e d a p r i n c i p a l
p a y m e n t a n d i n t e r e s t t h a t i s c o m p o u n d e d a n d p a i d a s A c c r e t e d V a l u e s h a l l b e d e e m e d d u e o n t h e
s c h e d u l e d r e d e m p t i o n o r p a y m e n t d a t e o f s u c h C a p i t a l A p p r e c i a t i o n B o n d ;
( C ) i f a n y O b l i g a t i o n s b e a r , o r i f a n y O b l i g a t i o n s p r o p o s e d t o b e i s s u e d w i l l b e a r ,
i n t e r e s t a t a v a r i a b l e i n t e r e s t r a t e f o r w h i c h a n I n t e r e s t R a t e S w a p A g r e e m e n t i s n o t i n p l a c e a n d
t h e i n t e r e s t o n w h i c h i s e x c l u d e d o r e x p e c t e d t o b e e x c l u d e d f r o m g r o s s i n c o m e f o r f e d e r a l
i n c o m e t a x p u r p o s e s , t h e i n t e r e s t r a t e o n s u c h O b l i g a t i o n s f o r p e r i o d s w h e n t h e a c t u a l i n t e r e s t
r a t e c a n n o t y e t b e d e t e r m i n e d s h a l l b e a s s u m e d t o b e e q u a l t o t h e a v e r a g e o f t h e S I F M A S w a p
I n d e x f o r t h e f i v e ( 5 ) y e a r s p r e c e d i n g s u c h d a t e o f c a l c u l a t i o n ;
( D ) i f a n y O b l i g a t i o n s b e a r , o r i f a n y O b l i g a t i o n s p r o p o s e d t o b e i s s u e d w i l l b e a r ,
i n t e r e s t a t a v a r i a b l e i n t e r e s t r a t e f o r w h i c h a n I n t e r e s t R a t e S w a p A g r e e m e n t i s n o t i n p l a c e a n d
t h e i n t e r e s t o n w h i c h i s i n c l u d e d o r e x p e c t e d t o b e i n c l u d e d i n g r o s s i n c o m e f o r f e d e r a l i n c o m e
t a x p u r p o s e s , t h e i n t e r e s t r a t e o n s u c h O b l i g a t i o n s s h a l l b e c a l c u l a t e d a t a n i n t e r e s t r a t e e q u a l t o
1 0 0 % o f t h e a v e r a g e O n e M o n t h U S D L I B O R R a t e d u r i n g t h e f i v e ( 5 ) y e a r s p r e c e d i n g s u c h d a t e
o f c a l c u l a t i o n ;
( E ) w i t h r e s p e c t t o a n y O b l i g a t i o n s b e a r i n g i n t e r e s t , o r e x p e c t e d t o b e a r i n t e r e s t , a t a
v a r i a b l e i n t e r e s t r a t e f o r w h i c h a n I n t e r e s t R a t e S w a p A g r e e m e n t i s i n p l a c e p r o v i d i n g f o r a f i x e d
r a t e o f i n t e r e s t t o m a t u r i t y o r f o r a s p e c i f i c t e r m w i t h r e s p e c t t o s u c h O b l i g a t i o n s , t h e i n t e r e s t r a t e
o n s u c h O b l i g a t i o n s s h a l l b e a s s u m e d t o b e t h e s y n t h e t i c f i x e d i n t e r e s t r a t e s p e c i f i e d i n s u c h
I n t e r e s t R a t e S w a p A g r e e m e n t f o r s u c h t e r m ; p r o v i d e d t h a t i f , p u r s u a n t t o a C e r t i f i c a t e o f t h e
C o m m i s s i o n f i l e d w i t h t h e T r u s t e e , t h e s u m o f ( i ) i n t e r e s t p a y a b l e o n s u c h O b l i g a t i o n s , p l u s ( i i )
a m o u n t s p a y a b l e b y t h e C o m m i s s i o n u n d e r s u c h I n t e r e s t R a t e S w a p A g r e e m e n t , l e s s ( i i i )
a m o u n t s r e c e i v a b l e b y t h e C o m m i s s i o n u n d e r s u c h I n t e r e s t R a t e S w a p A g r e e m e n t , i s e x p e c t e d t o
b e g r e a t e r t h a n t h e i n t e r e s t p a y a b l e o n t h e O b l i g a t i o n s t o w h i c h s u c h I n t e r e s t R a t e S w a p
A g r e e m e n t r e l a t e s ( i . e . , i f s u c h I n t e r e s t R a t e S w a p A g r e e m e n t i s a n ' o f f - m a r k e t " I n t e r e s t R a t e
S w a p A g r e e m e n t ) , t h e n , i n s u c h i n s t a n c e , s u c h e x c e s s a m o u n t s e x p e c t e d t o b e p a y a b l e b y t h e
C o m m i s s i o n u n d e r s u c h I n t e r e s t R a t e S w a p A g r e e m e n t s h a l l b e i n c l u d e d i n t h e c a l c u l a t i o n o f
D e b t S e r v i c e ;
( F ) w i t h r e s p e c t t o a n y O b l i g a t i o n s b e a r i n g i n t e r e s t , o r e x p e c t e d t o b e a r i n t e r e s t , a t a
f i x e d i n t e r e s t r a t e f o r w h i c h a n I n t e r e s t R a t e S w a p A g r e e m e n t i s i n p l a c e p r o v i d i n g f o r a n e t
v a r i a b l e i n t e r e s t r a t e w i t h r e s p e c t t o s u c h O b l i g a t i o n s f o r a s p e c i f i c t e r m , t h e i n t e r e s t r a t e o n s u c h
O b l i g a t i o n s s h a l l b e a s s u m e d t o b e e q u a l f o r s u c h t e r m t o t h e s u m o f ( i ) t h e f i x e d i n t e r e s t r a t e o r
r a t e s t o b e p a i d o n t h e O b l i g a t i o n s , m i n u s ( i i ) t h e f i x e d i n t e r e s t r a t e r e c e i v a b l e b y t h e
C o m m i s s i o n u n d e r s u c h I n t e r e s t R a t e S w a p A g r e e m e n t , p l u s ( i i i ) t h e a v e r a g e i n t e r e s t r a t e o f t h e
O H S W e s t : 2 6 0 3 7 9 4 7 5 . 8 7
1 5 8
index on which the Interest Rate Swap Agreement is based, as identified in a Certificate of the
Commission, or, if not based on an identifiable index, then the SIFMA Swap Index, in each case,
over the five (5) years preceding the date of calculation;
(G) if any Obligations feature an option, on the part of the owners or an obligation
under the terms of such Obligations, to tender all or a portion of such Obligations to the
Commission, the Trustee or other fiduciary or agent, and requires that such Obligations or
portion thereof be purchased if properly presented, then for purposes of determining the amounts
of principal and interest due in any Fiscal Year on such Obligations, the options or obligations of
the owners of such Obligations to tender the same for purchase or payment prior to the stated
maturity or maturities shall be ignored and not treated as a principal maturity; and
(H) principal and interest payments on Obligations shall be excluded to the extent
such payments are to be paid from Revenues then held on deposit by the Trustee or from other
amounts on deposit with the Trustee or other fiduciary in escrow specifically therefor and
interest payments shall be excluded to the extent that such interest payments are to be paid from
the proceeds of Obligations held by the Trustee or other fiduciary as capitalized interest
specifically to pay such interest.
"Defeasance Securities" means: (i) U.S. Treasury Certificates, Notes and Bonds,
including State and Local Government Series securities; (ii) direct obligations of the U.S.
Treasury which have been stripped by the U.S. Treasury itself; (iii) Resolution Funding Corp.
securities ("REFCORP"), provided, however, only the interest component of REFCORP strips
which have been stripped by request to the Federal Reserve Bank of New York in book entry
form are acceptable; (iv) pre -refunded municipal bonds rated "Aaa" by Moody's and "AAA" by
Standard & Poor's, provided, however, that if such municipal bonds are rated only by Standard &
Poor's, then such pre -refunded municipal bonds must have been pre -refunded with cash, direct
United States or United States guaranteed obligations, or "AAA" rated pre -refunded municipal
bonds; (v) obligations issued by the following agencies, which are backed by the full faith and
credit of the United States: (a) Fanners Home Administration (FmHA) - certificates of
beneficial ownership; (b) General Services Administration - participation certificates; (c) U.S.
Maritime Administration - Guaranteed Title XI financing; (d) Small Business Administration
guaranteed participation certificates and guaranteed pool certificates; (e) GNMA guaranteed
MSB and participation certificates; and (f) U.S. Department of Housing and Urban Development
(HUD) Local Authority Bonds, or (vi) certain obligations of govemment-sponsored agencies that
are not backed by the full faith and credit of the United States limited to: (a) Federal Home Loan
Mortgage Corp. (FHLMC) debt obligations; (b) Farm Credit System (formerly Federal Land
Banks, Federal Intermediate Credit Banks, and Banks for Cooperatives) consolidated system-
wide bonds and notes; (c) Federal Home Loan Banks (FHL Banks) consolidated debt
obligations; (d) Federal National Mortgage Association (FNMA) debt obligations; (e) Student
Loan Marketing Association (SLMA) debt obligations; and (f) Financing Corp. (FICO) debt
obligations; and (g) other obligations approved by the Rating Agencies for defeasance escrows
rated in the highest Rating Category.
"Dissemination Agent" means, with respect to each Series of Bonds requiring an
undertaking regarding disclosure under Rule 15c2-12(b)(5), the dissemination agent under the
Continuing Disclosure Agreement delivered in connection with such Series of Bonds, or any
OHS West:260379475.8 $
159
successor dissemination agent designated in writing by the Commission and which has entered
into a Continuing Disclosure Agreement with the Commission.
"DTC" means The Depository Trust Company, New York, New York, or any successor
thereto.
"Electronic Means" means facsimile transmission, email transmission or other similar
electronic means of communication providing evidence of transmission, including a telephone
communication confirmed by any other method set forth in this definition.
"Event of Default" means any of the events specified in Section 7.01.
'Excluded Principal Payment' means each payment of principal of Bonds or Parity
Obligations which the Commission determines (in the Certificate of the Commission) that the
Commission intends to pay with moneys that are not Sales Tax Revenues (such as commercial
paper, balloon indebtedness or bond anticipation notes) but from future debt obligations of the
Commission, grants from the State or federal government, or any agency or instrumentality
thereof, or any other source of funds of the Commission, upon which determination of the
Commission the Trustee may conclusively rely. No such determination shall affect the security
for such Bonds or the obligation of the Commission to pay such payments from Sales Tax
Revenues or amounts on deposit in the Bond Reserve Fund, if any. No payment of principal of
Bonds may be determined to be an Excluded Principal Payment unless it is due on or prior to the
Tax Expiration Date.
"Fees and Expenses Fund" means the fiord by that name established pursuant to
Section 5.02.
"Fiscal Year" means the period beginning on July 1 of each year and ending on the next
succeeding June 30, or any other 12-month period hereafter selected and designated as the
official fiscal year period of the Commission, which designation shall be provided to the Trustee
in a Certificate delivered by the Commission.
"Fitch" means Fitch Inc., and its successors and assigns, except that if such corporation
shall be dissolved or liquidated or shall no longer perform the functions of a securities rating
agency, then the term "Fitch" shall be deemed to refer to any other nationally recognized
securities rating agency selected by the Commission.
"Holder" or "Bondholder," whenever used herein with respect to a Bond, means the
person in whose name such Bond is registered.
"Indenture" means this Indenture, dated as of June 1, 2008, between the Trustee and the
Commission, as originally executed or as it may from time to time be supplemented or amended
by any Supplemental Indenture delivered pursuant to the provisions hereof.
"Initial Swaps" means the following Interest Rate Swap Agreements, in a combined
notional amount of $185,000,000, which Initial Swaps have an effective date of October 1, 2009:
OHS West:260379475.8 9
160
a. ISDA Master Agreement, dated as of August 22, 2006, between Bank of America,
N.A. ("BOfA") and the Commission, as supplemented by the Schedule, dated as of
August 22, 2006 and the confirmation of a transaction entered into on August 22,
2006 between BofA and the Commission; and
b. ISDA Master Agreement, dated as of August 22, 2006, between Lehman Brothers
Derivative Products Inc. ("Lehman") and the Commission, as supplemented by the
Schedule, dated as of August 22, 2006 and the confirmation of a transaction entered
into on August 22, 2006 between Lehman and the Commission.
"Insurance" means any financial guaranty insurance policy or municipal bond insurance
policy issued by an Insurer insuring the payment when due of principal of and interest on a
Series of Bonds as provided in such fmancial guaranty insurance policy or municipal bond
insurance policy.
"Insurer" means any provider of Insurance with respect to a Series of Bonds.
"Interest Fund" means the fund by that name established pursuant to Section 5.02.
"Interest Payment Date," with respect to each Series of Bonds, shall have the meaning
specified in the Supplemental Indenture establishing the terms and provisions of such Series of
Bonds.
"Interest Rate Swap Agreement" means an interest rate swap, cap, collar, option, floor,
forward, derivative, or other hedging agreement, arrangement or security, however denominated,
entered into between the Commission and a Counterparty, in connection with or incidental to, the
issuance or carrying of Bonds, including, without limitation, an interest rate swap, cap, collar,
option, floor, forward, derivative, or other hedging agreement, arrangement or security entered
into in advance of the issuance of Bonds.
"Investment Securities" means the following:
(1) any bonds or other obligations which as to principal and interest constitute
direct obligations of, or are unconditionally guaranteed by, the United States of America,
including obligations of any of the federal agencies and federally sponsored entities set
forth in clause (3) below to the extent unconditionally guaranteed by the United States of
America;
(2) any certificates, receipts, securities or other obligations evidencing
ownership of, or the right to receive, a specified portion of one or more interest payments
or principal payments, or any combination thereof, to be made on any bond, note, or
other obligation described above in clause (1);
(3) obligations of the Federal National Mortgage Association, the
Government National Mortgage Association, Federal Home Loan Banks, Farmers Home
Administration and Federal Home Loan Mortgage Corporation;
OHS Wes1:260379475.8
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161
"
( 4 ) h o u s i n g a u t h o r i t y b o n d s i s s u e d b y p u b l i c a g e n c i e s o r m u n i c i p a l i t i e s a n d
f u l l y s e c u r e d a s t o t h e p a y m e n t o f b o t h p r i n c i p a l a n d i n t e r e s t b y a p l e d g e o f a n n u a l
c o n t r i b u t i o n s u n d e r a n a n n u a l c o n t r i b u t i o n s c o n t r a c t o r c o n t r a c t s w i t h t h e U n i t e d S t a t e s
o f A m e r i c a ; o r p r o j e c t n o t e s i s s u e d b y p u b l i c a g e n c i e s o r m u n i c i p a l i t i e s a n d f u l l y s e c u r e d
a s t o t h e p a y m e n t o f b o t h p r i n c i p a l a n d i n t e r e s t b y a r e q u i s i t i o n o r p a y m e n t a g r e e m e n t
w i t h t h e U n i t e d S t a t e s o f A m e r i c a ;
( 5 ) o b l i g a t i o n s o f a n y s t a t e , t e r r i t o r y o r c o m m o n w e a l t h o f t h e U n i t e d S t a t e s o f
A m e r i c a o r a n y p o l i t i c a l s u b d i v i s i o n t h e r e o f o r a n y a g e n c y o r d e p a r t m e n t o f t h e
f o r e g o i n g ; p r o v i d e d t h a t a t t h e t i m e o f t h e i r p u r c h a s e s u c h o b l i g a t i o n s a r e r a t e d i n e i t h e r
o f t h e t w o h i g h e s t l o n g - t e r m o r h i g h e s t s h o r t - t e r m R a t i n g C a t e g o r i e s b y b o t h M o o d y ' s
a n d S t a n d a r d & P o o r ' s ;
( 6 ) a n y b o n d s o r o t h e r o b l i g a t i o n s o f a n y s t a t e o f t h e U n i t e d S t a t e s o f A m e r i c a
o r a n y p o l i t i c a l s u b d i v i s i o n t h e r e o f ( a ) w h i c h a r e n o t c a l l a b l e p r i o r t o m a t u r i t y o r a s t o
w h i c h i r r e v o c a b l e i n s t r u c t i o n s h a v e b e e n g i v e n t o t h e t r u s t e e o f s u c h b o n d s o r o t h e r
o b l i g a t i o n s b y t h e o b l i g o r t o g i v e d u e n o t i c e o f r e d e m p t i o n a n d t o c a l l s u c h b o n d s f o r
r e d e m p t i o n o n t h e d a t e o r d a t e s s p e c i f i e d i n s u c h i n s t r u c t i o n s , ( b ) w h i c h a r e s e c u r e d a s t o
p r i n c i p a l a n d i n t e r e s t a n d r e d e m p t i o n p r e m i u m , i f a n y , b y a f u n d c o n s i s t i n g o n l y o f c a s h
o r b o n d s o r o t h e r o b l i g a t i o n s o f t h e c h a r a c t e r d e s c r i b e d a b o v e i n c l a u s e ( 1 ) o r ( 2 ) w h i c h
f u n d m a y b e a p p l i e d o n l y t o t h e p a y m e n t o f s u c h p r i n c i p a l o f a n d i n t e r e s t a n d r e d e m p t i o n
p r e m i u m , i f a n y , o n s u c h b o n d s o r o t h e r o b l i g a t i o n s o n t h e i n t e r e s t p a y m e n t d a t e s a n d t h e
m a t u r i t y d a t e o r d a t e s t h e r e o f o r t h e s p e c i f i e d r e d e m p t i o n d a t e o r d a t e s p u r s u a n t t o s u c h
i r r e v o c a b l e i n s t r u c t i o n s , a s a p p r o p r i a t e , ( c ) a s t o w h i c h t h e p r i n c i p a l o f a n d i n t e r e s t o n t h e
b o n d s a n d o b l i g a t i o n s o f t h e c h a r a c t e r d e s c r i b e d a b o v e i n c l a u s e ( 1 ) o r ( 2 ) w h i c h h a v e
b e e n d e p o s i t e d i n s u c h f u n d a l o n g w i t h a n y c a s h o n d e p o s i t i n s u c h f u n d a r e s u f f i c i e n t t o
p a y t h e p r i n c i p a l o f a n d i n t e r e s t a n d r e d e m p t i o n p r e m i u m , i f a n y , o n t h e b o n d s o r o t h e r
o b l i g a t i o n s d e s c r i b e d i n t h i s c l a u s e ( 6 ) o n t h e i n t e r e s t p a y m e n t d a t e s a n d t h e m a t u r i t y
d a t e o r d a t e s t h e r e o f o r o n t h e r e d e m p t i o n d a t e o r d a t e s s p e c i f i e d i n t h e i r r e v o c a b l e
i n s t r u c t i o n s r e f e r r e d t o i n s u b c l a u s e ( a ) o f t h i s c l a u s e ( 6 ) , a s a p p r o p r i a t e , a n d ( d ) w h i c h
h a v e b e e n r a t e d i n o n e o f t h e t w o h i g h e s t l o n g - t e r m R a t i n g C a t e g o r i e s b y M o o d y ' s a n d
S t a n d a r d & P o o r ' s ;
( 7 ) b o n d s , n o t e s , d e b e n t u r e s o r o t h e r e v i d e n c e s o f i n d e b t e d n e s s i s s u e d o r
g u a r a n t e e d b y a n y c o r p o r a t i o n w h i c h a r e , a t t h e t i m e o f p u r c h a s e , r a t e d b y b o t h M o o d y ' s
a n d S t a n d a r d & P o o r ' s i n t h e i r r e s p e c t i v e h i g h e s t s h o r t - t e r m R a t i n g C a t e g o r i e s , o r , i f t h e
t e r m o f s u c h i n d e b t e d n e s s i s l o n g e r t h a n t h r e e ( 3 ) y e a r s , r a t e d b y b o t h M o o d y ' s a n d
S t a n d a r d & P o o r ' s i n o n e o f t h e i r r e s p e c t i v e t w o h i g h e s t l o n g - t e r m R a t i n g C a t e g o r i e s , f o r
c o m p a r a b l e t y p e s o f d e b t o b l i g a t i o n s ;
( 8 ) d e m a n d o r t i m e d e p o s i t s o r c e r t i f i c a t e s o f d e p o s i t , w h e t h e r n e g o t i a b l e o r
n o n n e g o t i a b l e , i s s u e d b y a n y b a n k o r t r u s t c o m p a n y o r g a n i z e d u n d e r t h e l a w s o f a n y s t a t e
o f t h e U n i t e d S t a t e s o f A m e r i c a o r a n y n a t i o n a l b a n k i n g a s s o c i a t i o n ( i n c l u d i n g t h e
T r u s t e e ) , p r o v i d e d t h a t s u c h c e r t i f i c a t e s o f d e p o s i t s h a l l b e p u r c h a s e d d i r e c t l y f r o m s u c h a
b a n k , t r u s t c o m p a n y o r n a t i o n a l b a n k i n g a s s o c i a t i o n a n d s h a l l b e e i t h e r ( a ) c o n t i n u o u s l y
a n d f u l l y i n s u r e d b y t h e F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a t i o n , ( b ) c o n t i n u o u s l y a n d
f u l l y s e c u r e d b y s u c h s e c u r i t i e s a n d o b l i g a t i o n s a s a r e d e s c r i b e d a b o v e i n c l a u s e s ( 1 )
O H S W e s t : 2 6 0 3 7 9 4 7 5 . 8
1 1
1 6 2
through (5), inclusive, which shall have a market value (exclusive of accrued interest) at
all times at least equal to the principal amount of such certificates of deposit and shall be
lodged with the Trustee, as custodian, by the bank, trust company or national banking
association issuing such certificates of deposit, and the bank, trust company or national
banking association issuing each such certificate of deposit required to be so secured
shall furnish the Trustee with an undertaking satisfactory to it that the aggregate market
value of all such obligations securing each such certificate of deposit will at all times be
an amount equal to the principal amount of each such certificate of deposit and the
Trustee shall be entitled to rely on each such undertaking, or (c) be issued by an
institution the senior debt obligations of which are rated "AA" or higher by Standard &
Poor's;
(9) taxable commercial paper, other than that issued by bank holding
companies, or tax-exempt commercial paper rated in the highest Rating Category by both
Moody's and Standard & Poor's;
(10) variable rate obligations required to be redeemed or purchased by the
obligor or its agent or designee upon demand of the holder thereof secured as to such
redemption or purchase requirement by a liquidity agreement with a corporation and as to
the payment of interest and principal either upon maturity or redemption (other than upon
demand by the holder thereof) thereof by an unconditional credit facility of a corporation,
provided that the variable rate obligations themselves are rated in the highest Rating
Category for its short-term rating, if any, and in either of the two highest Rating
Categories for its long-term rating, if any, by both Moody's and Standard & Poor's, and
that the corporations providing the liquidity agreement and credit facility have, at the date
of acquisition of the variable rate obligation by the Trustee, an outstanding issue of
unsecured, uninsured and unguaranteed debt obligations rated in either of the two highest
long -tern Rating Categories by both Moody's and Standard & Poor's;
(11) any repurchase agreement with any bank or trust company organized
under the laws of any state of the United States or any national banking association
(including the Trustee) having a minimum permanent capital of one hundred million
dollars ($100,000,000) or government bond dealer reporting to, trading with, and
recognized as a primary dealer by the Federal Reserve Bank of New York, which
agreement is secured by any one or more of the securities and obligations described in
clauses (1), (2), (3) or (4) above, which shall have a market value (exclusive of accrued
interest and valued at least monthly) at least equal to 103% of the principal amount of
such investment and shall be lodged with the Trustee or other fiduciary, as custodian for
the Trustee, by the bank, trust company, national banking association or bond dealer
executing such repurchase agreement, and the entity executing each such repurchase
agreement required to be so secured shall furnish the Trustee with an undertaking
satisfactory to it that the aggregate market value of all such obligations securing each
such repurchase agreement (as valued at least monthly) will be an amount equal to 103%
of the principal amount of each such repurchase agreement and the Trustee shall be
entitled to rely on each such undertaking;
OHS West:260379475.8
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163
"
"
( 1 2 ) a n y c a s h s w e e p o r s i m i l a r a c c o u n t a r r a n g e m e n t o f o r a v a i l a b l e t o t h e
T r u s t e e , t h e i n v e s t m e n t s o f w h i c h a r e l i m i t e d t o i n v e s t m e n t s d e s c r i b e d i n c l a u s e s ( 1 ) , ( 2 ) ,
( 3 ) , ( 4 ) , ( 5 ) a n d ( 1 1 ) o f t h i s d e f i n i t i o n o f I n v e s t m e n t S e c u r i t i e s a n d a n y m o n e y m a r k e t
f u n d , t h e e n t i r e i n v e s t m e n t s o f w h i c h a r e l i m i t e d t o i n v e s t m e n t s d e s c r i b e d i n c l a u s e s ( 1 ) ,
( 2 ) , ( 3 ) , ( 4 ) , ( 5 ) a n d ( 1 1 ) o f t h i s d e f i n i t i o n o f I n v e s t m e n t S e c u r i t i e s ; p r o v i d e d t h a t a s u s e d
i n t h i s c l a u s e ( 1 2 ) a n d c l a u s e ( 1 3 ) i n v e s t m e n t s w i l l b e d e e m e d t o s a t i s f y t h e r e q u i r e m e n t s
o f c l a u s e ( 1 1 ) i f t h e y m e e t t h e r e q u i r e m e n t s s e t f o r t h i n c l a u s e ( 1 1 ) e n d i n g w i t h t h e w o r d s
" c l a u s e s ( 1 ) , ( 2 ) , ( 3 ) o r ( 4 ) a b o v e " a n d w i t h o u t r e g a r d t o t h e r e m a i n d e r o f s u c h c l a u s e
( 1 1 ) ;
( 1 3 ) a n y i n v e s t m e n t a g r e e m e n t w i t h a f m a n c i a l i n s t i t u t i o n o r i n s u r a n c e
c o m p a n y o r w h o s e o b l i g a t i o n s a r e g u a r a n t e e d b y a f m a n c i a l i n s t i t u t i o n o r i n s u r a n c e
c o m p a n y w h i c h : ( a ) h a s a t t h e d a t e o f e x e c u t i o n t h e r e o f a n o u t s t a n d i n g i s s u e o f
u n s e c u r e d , u n i n s u r e d a n d u n g u a r a n t e e d d e b t o b l i g a t i o n s o r a c l a i m s p a y i n g a b i l i t y r a t e d
i n e i t h e r o f t h e t w o h i g h e s t l o n g - t e r m R a t i n g C a t e g o r i e s b y b o t h M o o d y ' s a n d S t a n d a r d &
P o o r ' s ; o r ( b ) i s f u l l y s e c u r e d b y o b l i g a t i o n s d e s c r i b e d i n i t e m s ( 1 ) , ( 2 ) , ( 3 ) o r ( 4 ) o f t h e
d e f i n i t i o n o f I n v e s t m e n t S e c u r i t i e s w h i c h a r e ( A ) v a l u e d n o t l e s s f r e q u e n t l y t h a n m o n t h l y
a n d h a v e a f a i r m a r k e t v a l u e , e x c l u s i v e o f a c c r u e d i n t e r e s t , a t a l l t i m e s a t l e a s t e q u a l t o
t h e p r i n c i p a l a m o u n t o f t h e i n v e s t m e n t , ( B ) h e l d b y t h e T r u s t e e o r o t h e r c u s t o d i a n
a c c e p t a b l e t o t h e T r u s t e e , ( C ) s u b j e c t t o a p e r f e c t e d f i r s t l i e n i n t h e T r u s t e e , a n d ( D ) f r e e
a n d c l e a r f r o m a l l t h i r d p a r t y l i e n s ;
( 1 4 ) s h a r e s o f b e n e f i c i a l i n t e r e s t i n d i v e r s i f i e d m a n a g e m e n t c o m p a n i e s
i n v e s t i n g e x c l u s i v e l y i n s e c u r i t i e s a n d o b l i g a t i o n s d e s c r i b e d i n c l a u s e s ( 1 ) t h r o u g h ( 1 3 ) o f
t h i s d e f m i t i o n o f I n v e s t m e n t S e c u r i t i e s a n d w h i c h c o m p a n i e s h a v e e i t h e r t h e h i g h e s t
r a t i n g b y b o t h M o o d y ' s a n d S t a n d a r d & P o o r ' s o r h a v e a n i n v e s t m e n t a d v i s o r r e g i s t e r e d
w i t h t h e S e c u r i t i e s a n d E x c h a n g e C o m m i s s i o n w i t h n o t l e s s t h a n f i v e ( 5 ) y e a r s
e x p e r i e n c e i n v e s t i n g i n s u c h s e c u r i t i e s a n d o b l i g a t i o n s a n d w i t h a s s e t s u n d e r m a n a g e m e n t
i n e x c e s s o f $ 5 0 0 , 0 0 0 , 0 0 0 ;
( 1 5 ) s h a r e s i n a c o m m o n l a w t r u s t e s t a b l i s h e d p u r s u a n t t o T i t l e 1 , D i v i s i o n 7 ,
C h a p t e r 5 o f t h e G o v e r m e n t C o d e o f t h e S t a t e w h i c h i n v e s t s e x c l u s i v e l y i n i n v e s t m e n t s
p e r m i t t e d b y S e c t i o n 5 3 6 3 5 o f T i t l e 5 , D i v i s i o n 2 , C h a p t e r 4 o f t h e G o v e r n m e n t C o d e o f
t h e S t a t e , a s i t m a y b e a m e n d e d ;
( 1 6 ) b a n k e r s ' a c c e p t a n c e s i s s u e d b y d o m e s t i c o r f o r e i g n b a n k s , w h i c h a r e
e l i g i b l e f o r p u r c h a s e b y t h e F e d e r a l R e s e r v e S y s t e m , t h e s h o r t - t e r m p a p e r o f w h i c h i s
r a t e d i n t h e h i g h e s t c a t e g o r y b y b o t h M o o d y ' s a n d S t a n d a r d & P o o r ' s , w h i c h p u r c h a s e s
m a y n o t e x c e e d t w o h u n d r e d s e v e n t y ( 2 7 0 ) d a y s m a t u r i t y ;
( 1 7 ) t h e p o o l e d i n v e s t m e n t f u n d o f t h e C o u n t y o f R i v e r s i d e , C a l i f o r n i a , w h i c h
i s a d m i n i s t e r e d i n a c c o r d a n c e w i t h t h e i n v e s t m e n t p o l i c y o f s a i d C o u n t y a s e s t a b l i s h e d b y
t h e T r e a s u r e r / T a x C o l l e c t o r t h e r e o f , a s p e r m i t t e d b y S e c t i o n 5 3 6 0 1 o f t h e G o v e r n m e n t
C o d e o f t h e S t a t e , c o p i e s o f w h i c h p o l i c y a r e a v a i l a b l e u p o n w r i t t e n r e q u e s t t o s a i d
T r e a s u r e r / T a x C o l l e c t o r ,
O F I S W e 0 : 2 6 0 3 7 9 4 7 5 . 8
1 3
1 6 4
(18) the Local Agency Investment Fund or similar pooled fund operated by or
on behalf of the State of California and which is authorized to accept investments of
moneys held in any of the funds or accounts established pursuant to this Indenture;
(19) obligations of the Resolution Trust Corporation and interest obligations of
the Resolution Funding Corporation;
(20) financial futures or financial option contracts with an entity the debt
securities of which are rated in the highest short-term or one of the two highest long-term
rating categories by Fitch, Moody's and Standard & Poor's; and
(21) any other forms of investments, including repurchase agreements,
approved by the Board and consented to by each Credit Provider and Liquidity Provider
then providing Credit Enhancement or a Liquidity Facility for a Series of Bonds.
"Letter of Credit Account" means an account by that name established to hold funds that
are drawn on Credit Enhancement provided in the form of a letter of credit and that are to be
applied to pay the principal of or interest on a Series of Bonds, which account shall be
established pursuant to the Supplemental Indenture establishing the terns and provisions of such
Series of Bonds.
"Liquidity Facility" means, with respect to a Series of Bonds, a line of credit, letter of
credit, standby purchase agreement or similar liquidity facility securing or guaranteeing the.
payment of purchase price of such Series of Bonds and issued by a commercial bank, insurance
company, pension fund or other fmancial institution, and delivered or made available to. the
Trustee, as from time to time supplemented or amended pursuant to its terms, or, in the event of
the delivery or availability of an Alternate Liquidity Facility, such Alternate Liquidity Facility.
"Liquidity Facility Bonds" means any Bonds purchased with moneys drawn under (or
otherwise obtained pursuant to the terms of) a Liquidity Facility, but excluding any Bonds no
longer considered to be Liquidity Facility Bonds in accordance with the terms of the applicable
Liquidity Facility.
"Liquidity Facility Rate" means, with respect to a Series of Bonds, the interest rate per
annum, if any, specified as applicable to Liquidity Facility Bonds in the Liquidity Facility
delivered in connection with such Series of Bonds.
"Liquidity Provider" means, with respect to a Series of Bonds, the commercial bank,
insurance company, pension fund or other financial institution issuing (or having primary
obligation, or acting as agent for the financial institutions obligated, under) a Liquidity Facility
then in effect with respect to such Series of Bonds.
"Mandatory Sinking Account Payment" means, with respect to Bonds of any Series and
maturity, the amount required by the Supplemental Indenture establishing the terms and
provisions of such Series of Bonds to be deposited by the Commission in a Sinking Account for
the payment of Term Bonds of such Series and maturity.
OHS West:260379475.8
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165
"
" M a t u r i t y D a t e " m e a n s , w i t h r e s p e c t t o a S e r i e s o f B o n d s , t h e d a t e o f m a t u r i t y o r
m a t u r i t i e s s p e c i f i e d i n t h e S u p p l e m e n t a l I n d e n t u r e e s t a b l i s h i n g t h e t e r m s a n d p r o v i s i o n s o f s u c h
S e r i e s o f B o n d s .
" M a x i m u m A n n u a l D e b t S e r v i c e " m e a n s t h e m a x i m u m a m o u n t o f A n n u a l D e b t S e r v i c e
b e c o m i n g d u e a n d p a y a b l e o n a l l B o n d s O u t s t a n d i n g a n d a l l P a r i t y O b l i g a t i o n s o u t s t a n d i n g
d u r i n g t h e p e r i o d f r o m t h e d a t e o f s u c h c a l c u l a t i o n t h r o u g h t h e f i n a l m a t u r i t y d a t e o f t h e B o n d s
a n d P a r i t y O b l i g a t i o n s , c a l c u l a t e d u t i l i z i n g t h e a s s u m p t i o n s s e t f o r t h u n d e r t h e d e f i n i t i o n o f D e b t
S e r v i c e .
" M a x i m u m I n t e r e s t R a t e " m e a n s , w i t h r e s p e c t t o a l l B o n d s o t h e r t h a n L i q u i d i t y F a c i l i t y
B o n d s , t h e l e s s e r o f ( i ) t w e l v e p e r c e n t ( 1 2 % ) a n d ( i i ) t h e m a x i m u m r a t e o f i n t e r e s t t h a t m a y
l e g a l l y b e p a i d o n t h e B o n d s f r o m t i m e t o t i m e , a n d m e a n s , w i t h r e s p e c t t o L i q u i d i t y F a c i l i t y
B o n d s , t h e l e s s e r o f ( x ) t h e L i q u i d i t y F a c i l i t y R a t e a n d ( i i ) t h e m a x i m u m r a t e o f i n t e r e s t t h a t m a y
l e g a l l y b e p a i d o n t h e L i q u i d i t y F a c i l i t y B o n d s f r o m t i m e t o t i m e .
" M o o d y ' s " m e a n s M o o d y ' s I n v e s t o r s S e r v i c e , a c o r p o r a t i o n d u l y o r g a n i z e d a n d e x i s t i n g
u n d e r t h e l a w s o f t h e S t a t e o f D e l a w a r e , a n d i t s s u c c e s s o r s a n d a s s i g n s , e x c e p t t h a t i f s u c h
c o r p o r a t i o n s h a l l b e d i s s o l v e d o r l i q u i d a t e d o r s h a l l n o l o n g e r p e r f o r m t h e f u n c t i o n s o f a
s e c u r i t i e s r a t i n g a g e n c y , t h e n t h e t e r m " M o o d y ' s " s h a l l b e d e e m e d t o r e f e r t o a n y o t h e r n a t i o n a l l y
r e c o g n i z e d s e c u r i t i e s r a t i n g a g e n c y s e l e c t e d b y t h e C o m m i s s i o n .
" 1 9 8 8 O r d i n a n c e " m e a n s t h e T r a n s p o r t a t i o n E x p e n d i t u r e P l a n a n d R e t a i l T r a n s a c t i o n a n d
U s e T a x O r d i n a n c e , a d o p t e d b y t h e C o m m i s s i o n o n J u l y 6 , 1 9 8 8 a n d a p p r o v e d b y a m a j o r i t y o f
t h e e l e c t o r s v o t i n g o n s u c h p r o p o s i t i o n o n N o v e m b e r 8 , 1 9 8 8 , a s s u p p l e m e n t e d a n d a m e n d e d .
" 1 9 8 8 S a l e s T a x " m e a n s t h e s a l e s a n d u s e t a x i m p o s e d b y t h e C o m m i s s i o n p u r s u a n t t o
t h e 1 9 8 8 O r d i n a n c e f r o m J u l y 1 , 1 9 8 9 t o J u n e 3 0 , 2 0 0 9 .
" 1 9 8 8 S a l e s T a x R e v e n u e s " m e a n s 1 0 0 % o f t h e a m o u n t s c o l l e c t e d b y t h e S t a t e B o a r d o f
E q u a l i z a t i o n o n b e h a l f o f t h e C o m m i s s i o n p u r s u a n t t o t h e A c t f r o m t h e 1 9 8 8 S a l e s T a x .
" N o t e s " m e a n s t h e R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n C o m m e r c i a l P a p e r
N o t e s ( L i m i t e d T a x B o n d s ) , S e r i e s A a n d S e r i e s B , a u t h o r i z e d b y , a n d a t a n y t i m e O u t s t a n d i n g
p u r s u a n t t o , t h e N o t e s I n d e n t u r e i n a n a g g r e g a t e a m o u n t n o t t o e x c e e d t w o h u n d r e d m i l l i o n
d o l l a r s ( $ 2 0 0 , 0 0 0 , 0 0 0 ) .
" N o t e s I n d e n t u r e " m e a n s t h e I n d e n t u r e , d a t e d a s o f M a r c h 1 , 2 0 0 5 , b e t w e e n t h e
C o m m i s s i o n a n d U . S . B a n k N a t i o n a l A s s o c i a t i o n , s u c c e s s o r b y m e r g e r t o U . S . B a n k T r u s t
N a t i o n a l A s s o c i a t i o n , a s t r u s t e e , a s s u p p l e m e n t e d a n d a m e n d e d f r o m t i m e t o t i m e p u r s u a n t t o i t s
t e r m s .
" N o t e s T r u s t e e " m e a n s U . S . B a n k N a t i o n a l A s s o c i a t i o n , s u c c e s s o r b y m e r g e r t o U . S .
B a n k T r u s t N a t i o n a l A s s o c i a t i o n , a s t r u s t e e u n d e r t h e N o t e s I n d e n t u r e , a n d i t s s u c c e s s o r s a n d
a s s i g n s .
" N o t i c e P a r t i e s " m e a n s , a s a n d t o t h e e x t e n t a p p l i c a b l e , t h e C o m m i s s i o n , t h e T r u s t e e , t h e
C r e d i t P r o v i d e r , i f a n y , f o r t h e S e r i e s o f B o n d s t o w h i c h t h e n o t i c e b e i n g g i v e n r e l a t e s , t h e
O H S W e s t : 2 6 0 3 7 9 4 7 5 . 8
1 5
1 6 6
auction agent, if any, for the Series of Bonds to which the notice being given relates, the broker -
dealer, if any, for the Series of Bonds to which the notice being given relates, the Liquidity
Provider; if any, for the Series of Bonds to which the notice being given relates, and the
remarketing agent, if any, for the Series of Bonds to which the notice being given relates.
"Obligations" has the meaning given to such term in the defmition of "Debt Service:"
"One Month USD LIBOR Rate" means the rate for deposits in U.S. dollars for a one -
month maturity that appears on Reuters Screen LIBOR°I Page (or such other page as may
replace that page on that service, or such other service as may be nominated by the British
Bankers Association, for the purpose of displaying London interbank offered rates for U.S. dollar
deposits) as of 11:00 a.m., London time, on the date of determination of such rate, except that, if
such rate does not appear on such page on such date, the One Month USD LIBOR Rate means a
rate determined on the basis of the rates at which deposits in U.S. dollars for a one -month
maturity and in a principal amount of at least U.S. $1,000,000 are offered at approximately
11:00 a.m., London time, on such date, to prime banks in the London interbank market by three
major banks in the London interbank market (herein referred to as the "Reference Banks")
selected by the Trustee (provided, however, that the Trustee may appoint an agent to identify
such Reference Banks). The Trustee or its agent is to request the principal London office of each
of such Reference Banks to provide a quotation of its rate. If at least two such quotations are
provided, the One Month LIBOR Rate will be the arithmetic mean of such quotations. If fewer
than two quotations are provided, the One Month LIBOR Rate will be the arithmetic mean of the
rates quoted by three (if three quotations are not provided, two or one, as applicable) major banks
in New York City, selected by the Trustee or its agent, at approximately 11:00 a.m., New York
City time, on such date for loans in U.S. dollars to leading European banks in a principal amount
of at least U.S. $1,000,000 having a one -month maturity. If none of the banks in New York City
selected by the Trustee or its agent is then quoting rates for such loans, then the One Month
LIBOR Rate for the ensuing interest period will mean the One Month LIBOR Rate most recently
in effect.
"Opinion of Bond Counsel" means a written opinion of a law firm of national standing in
the field of public finance selected by the Commission.
"Ordinance" means the 2002 Ordinance, and any amendments or extensions thereto,
together with any future ordinance that is adopted pursuant to the Act from time to time and that
is designated as an "Ordinance" hereunder pursuant to a Supplemental Indenture, as such future
ordinance may be amended or extended pursuant to the Act from time to time.
"Outstanding," when used as of any particular time with reference to Bonds, means
(subject to the provisions of Section 11.09) all Bonds theretofore, or thereupon being,
authenticated and delivered by the Trustee under this Indenture except: (1) Bonds theretofore
canceled by the Trustee or surrendered to the Trustee for cancellation; (2) Bonds with respect to
which all liability of the Commission shall have been dischaiged in accordance with Section
10.02, including Bonds (or portions of Bonds) referred to in Section 11.10; and (3) Bonds for the
transfer or exchange of or in lieu of or in substitution for which other Bonds shall have been
authenticated and delivered by the Trustee pursuant to this Indenture; provided, however, that in
the event the principal of or interest due on any Bonds shall be paid by the Credit Provider
OHS West:260379475.8
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167
"
"
p u r s u a n t t o t h e C r e d i t E n h a n c e m e n t i s s u e d i n c o n n e c t i o n w i t h s u c h B o n d s , s u c h B o n d s s h a l l
r e m a i n O u t s t a n d i n g f o r a l l p u r p o s e s a n d s h a l l n o t b e c o n s i d e r e d d e f e a s e d o r o t h e r w i s e s a t i s f i e d
o r p a i d b y t h e C o m m i s s i o n a n d t h e p l e d g e o f R e v e n u e s a n d a l l c o v e n a n t s , a g r e e m e n t s a n d o t h e r
o b l i g a t i o n s o f t h e C o m m i s s i o n t o t h e H o l d e r s s h a l l c o n t i n u e t o e x i s t a n d s h a l l r u n t o t h e b e n e f i t
o f s u c h C r e d i t P r o v i d e r a n d s u c h C r e d i t P r o v i d e r s h a l l b e s u b r o g a t e d t o t h e r i g h t s o f s u c h
H o l d e r s .
" P a r i t y O b l i g a t i o n s " m e a n s ( i ) a n y i n d e b t e d n e s s , i n s t a l l m e n t s a l e o b l i g a t i o n , l e a s e
o b l i g a t i o n o r o t h e r o b l i g a t i o n o f t h e C o m m i s s i o n f o r b o r r o w e d m o n e y , ( i i ) a n y o b l i g a t i o n t o p a y
t h e R e b a t e R e q u i r e m e n t , o r ( i i i ) t h e I n i t i a l S w a p s o r a n y o t h e r I n t e r e s t R a t e S w a p A g r e e m e n t
( e x c l u d i n g f e e s a n d e x p e n s e s a n d t e r m i n a t i o n p a y m e n t s o n t h e I n i t i a l S w a p s o r a n y o t h e r I n t e r e s t
R a t e S w a p A g r e e m e n t s , w h i c h f e e s a n d e x p e n s e s a n d t e r m i n a t i o n p a y m e n t s s h a l l b e s e c u r e d b y a
l i e n a n d c h a r g e o n t h e S a l e s T a x R e v e n u e s s u b o r d i n a t e t o t h e l i e n a n d c h a r g e u p o n S a l e s T a x
R e v e n u e s t h a t s e c u r e s t h e B o n d s , P a r i t y O b l i g a t i o n s a n d p a y m e n t o f p r i n c i p a l o f a n d i n t e r e s t o n
S u b o r d i n a t e O b l i g a t i o n s ) e n t e r e d i n t o i n c o n n e c t i o n w i t h a S e r i e s o f B o n d s , i n e a c h c a s e ( o t h e r
t h a n i n t h e c a s e o f t h e I n i t i a l S w a p s ) i n c u r r e d i n a c c o r d a n c e w i t h S e c t i o n 3 . 0 5 ( C ) , a n d i n e a c h
c a s e h a v i n g a n e q u a l l i e n a n d c h a r g e u p o n t h e S a l e s T a x R e v e n u e s a n d t h e r e f o r e b e i n g p a y a b l e
o n a p a r i t y w i t h t h e B o n d s ( w h e t h e r o r n o t a n y B o n d s a r e O u t s t a n d i n g ) .
" P a r t i c i p a t i n g U n d e r w r i t e r " m e a n s a n y o f t h e o r i g i n a l u n d e r w r i t e r s o f a S e r i e s o f B o n d s
r e q u i r e d t o c o m p l y w i t h R u l e 1 5 c 2 - 1 2 ( b ) ( 5 ) a d o p t e d b y t h e S e c u r i t i e s a n d E x c h a n g e
C o m m i s s i o n , u n d e r t h e S e c u r i t i e s E x c h a n g e A c t o f 1 9 3 4 , a s t h e s a m e m a y b e a m e n d e d f r o m
t i m e t o t i m e .
" P e r s o n " m e a n s a n a s s o c i a t i o n , c o r p o r a t i o n , f i r m , p a r t n e r s h i p , t r u s t , o r o t h e r l e g a l e n t i t y
o r g r o u p o f e n t i t i e s , i n c l u d i n g a g o v e r n m e n t a l e n t i t y o r a n y a g e n c y o r p o l i t i c a l s u b d i v i s i o n
t h e r e o f .
" P r i n c i p a l F u n d " m e a n s t h e f u n d b y t h a t n a m e e s t a b l i s h e d p u r s u a n t t o S e c t i o n 5 . 0 2 .
" P r i n c i p a l O f f i c e " m e a n s , w i t h r e s p e c t t o t h e T r u s t e e , t h e c o r p o r a t e t r u s t o f f i c e o f t h e
T r u s t e e a t 6 3 3 W e s t F i f t h S t r e e t , 2 4 t h F l o o r , L o s A n g e l e s , C A 9 0 0 7 1 , A t t e n t i o n : C o r p o r a t e
T r u s t S e r v i c e s , o r s u c h o t h e r o r a d d i t i o n a l o f f i c e s a s m a y b e d e s i g n a t e d b y t h e T r u s t e e f r o m t i m e
t o t i m e , a n d m e a n s , w i t h r e s p e c t t o a C r e d i t P r o v i d e r . o r a L i q u i d i t y P r o v i d e r , t h e o f f i c e
d e s i g n a t e d a s s u c h i n w r i t i n g b y s u c h p a r t y i n a n o t i c e d e l i v e r e d t o t h e T r u s t e e a n d t h e A u t h o r i t y .
" P r o j e c t " m e a n s c a p i t a l o u t l a y e x p e n d i t u r e s f o r t r a n s p o r t a t i o n p u r p o s e s , i n c l u d i n g t h e
c o n s t r u c t i o n , c a p i t a l , a c q u i s i t i o n a n d m a i n t e n a n c e o f s t r e e t s , r o a d s , h i g h w a y s a n d p u b l i c t r a n s i t
s y s t e m s a n d r e l a t e d p u r p o s e s p e r m i t t e d b y t h e O r d i n a n c e , i n c l u d i n g p l a n n i n g ; e n v i r o n m e n t a l
r e v i e w s , e n g i n e e r i n g a n d d e s i g n c o s t s a n d r i g h t - o f - w a y a c q u i s i t i o n a n d a l s o i n c l u d i n g , w i t h o u t
l i m i t a t i o n , e n g i n e e r i n g , i n s p e c t i o n , l e g a l , f i s c a l a g e n t s , f i n a n c i a l c o n s u l t a n t a n d o t h e r f e e s , b o n d
a n d o t h e r r e s e r v e f u n d s , w o r k i n g c a p i t a l , b o n d o r n o t e i n t e r e s t e s t i m a t e d t o a c c r u e d u r i n g t h e
c o n s t r u c t i o n p e r i o d a n d f o r a p e r i o d o f n o t t o e x c e e d t h r e e y e a r s t h e r e a f t e r , a n d e x p e n s e s f o r a l l
p r o c e e d i n g s f o r t h e a u t h o r i z a t i o n , i s s u a n c e a n d s a l e o f B o n d s .
" P r o j e c t F u n d " m e a n s , w i t h r e s p e c t t o a n y S e r i e s o f B o n d s , a f u n d b y t h a t n a m e
e s t a b l i s h e d p u r s u a n t t o t h e p r o v i s i o n s o f a S u p p l e m e n t a l I n d e n t u r e t o h o l d t h e p r o c e e d s o f a
O H S W e s t : 2 6 0 3 7 9 4 7 5 . 8
1 7
1 6 8
Series of Bonds or a portion thereof prior to expenditure on the portion of the Project being
financed with the proceeds of such Series of Bonds.
"Proportionate Basis," when used with respect to the redemption of Bonds, means that
the amount of Bonds of each maturity to be redeemed shall be determined as nearly as
practicable by multiplying the total amount of funds available for redemption by the ratio which
the amount of Bond Obligation of Bonds of such maturity bears to the amount of all Bond
Obligation of Bonds to be redeemed, provided, however that, any Bond may only be redeemed in
an authorized denomination. For purposes of the foregoing, Term Bonds shall be deemed to
mature in the years and in the amounts of the Mandatory Sinking Account Payments, and Capital
Appreciation Bonds and Current Interest Bonds maturing or subject to Mandatory Sinking
Account Payments in the same year shall be treated as separate maturities. When used with
respect to the payment or purchase of a portion of Bonds, "Proportionate Basis" shall have the
same meaning set forth above except that "pay" or purchase" shall be substituted for "redeem" or
"redemption" and "paid" or "purchased" shall be substituted for "redeemed."
"Purchase Fund" means a fund by that name established to hold funds to be applied to
pay the purchase price of a Series of Bonds, which fund shall be established pursuant to the
Supplemental Indenture establishing the terms and provisions of such Series of Bonds.
"Rating Agency" means, as and to the extent applicable to a Series of Bonds, each of
Fitch, Moody's and Standard & Poor's then maintaining a rating on such Series of Bonds at the
request of the Commission.
"Rating Category" means: (i) with respect to any long-term rating category, all ratings
designated by a particular letter or combination of letters, without regard to any numerical
modifier, plus or minus sign or other modifier; and (ii) with respect to any short-term or
commercial paper rating category, all ratings designated by a particular letter or combination of
letters and taking into account any numerical modifier, but not any plus or minus sign or other
modifier.
"Rebate Fund" means that fund by that name established pursuant to Section 5.09.
"Rebate Instructions" means, with respect to any Series of Bonds, those calculations and
directions required to be delivered to the Trustee by the Commission pursuant to the Tax
Certificate delivered in connection with such Series of Bonds.
"Rebate Requirement" means, with respect to any Series of Bonds, the Rebate
Requirement determined in accordance with the Tax Certificate delivered in connection with
such Series of Bonds.
"Record Date," with respect to each Series of Bonds, shall have the meaning specified in
the Supplemental Indenture establishing the terms and provisions of such Series of Bonds.
"Redemption Fund" means the fund by that name established pursuant to Section 5.08.
OHS West:260379475.S
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"
"
" R e d e m p t i o n P r i c e " m e a n s , w i t h r e s p e c t t o a n y B o n d ( o r p o r t i o n t h e r e o f ) t h e B o n d
O b l i g a t i o n o f s u c h B o n d ( o r p o r t i o n t h e r e o f ) p l u s t h e a p p l i c a b l e p r e m i u m , i f a n y , p a y a b l e u p o n
r e d e m p t i o n t h e r e o f p u r s u a n t t o t h e p r o v i s i o n s o f s u c h B o n d a n d t h i s I n d e n t u r e .
" R e f u n d i n g B o n d s " m e a n s a S e r i e s o f B o n d s o r a p o r t i o n o f a S e r i e s o f B o n d s i s s u e d
p u r s u a n t t o t h e p r o v i s i o n s s e t f o r t h i n S e c t i o n 3 . 0 4 .
" R e p o s i t o r i e s " m e a n s t h e p u b l i c o r p r i v a t e e n t i t i e s d e s i g n a t e d a s R e p o s i t o r i e s i n a
C o n t i n u i n g D i s c l o s u r e A g r e e m e n t e n t e r e d i n t o i n c o n n e c t i o n w i t h a S e r i e s o f B o n d s .
" R e s e r v e F a c i l i t y " m e a n s a n y i n s u r a n c e p o l i c y , l e t t e r o f c r e d i t o r s u r e t y b o n d i s s u e d b y a
R e s e r v e F a c i l i t y P r o v i d e r , m e e t i n g t h e r e q u i r e m e n t s s e t f o r t h i n S e c t i o n 5 . 0 5 , a n d d e l i v e r e d t o
t h e T r u s t e e i n s a t i s f a c t i o n o f a l l o r a p o r t i o n o f t h e B o n d R e s e r v e R e q u i r e m e n t a p p l i c a b l e t o o n e
o r m o r e S e r i e s o f B o n d s .
" R e s e r v e F a c i l i t y P r o v i d e r " m e a n s a n y i s s u e r o f a R e s e r v e F a c i l i t y .
" R e v e n u e F u n d " m e a n s t h e R e v e n u e F u n d e s t a b l i s h e d p u r s u a n t t o S e c t i o n 5 . 0 1 .
" R e v e n u e s " m e a n s : ( i ) a l l S a l e s T a x R e v e n u e s ; a n d ( i i ) a l l S w a p R e v e n u e s . I n
a c c o r d a n c e w i t h t h e p r o v i s i o n s s e t f o r t h i n S e c t i o n 3 . 0 2 , t h e C o m m i s s i o n b y S u p p l e m e n t a l
I n d e n t u r e m a y p r o v i d e f o r a d d i t i o n a l r e v e n u e s o r a s s e t s o f t h e C o m m i s s i o n t o b e i n c l u d e d i n t h e
d e f i n i t i o n o f R e v e n u e s h e r e u n d e r .
" R u l e 1 5 c 2 - 1 2 " m e a n s S e c u r i t i e s a n d E x c h a n g e C o m m i s s i o n R u l e 1 5 c 2 - 1 2 , a s
s u p p l e m e n t e d a n d a m e n d e d f r o m t i m e t o t i m e .
" S a l e s T a x R e v e n u e s " m e a n s t h e a m o u n t s a v a i l a b l e f o r d i s t r i b u t i o n t o t h e C o m m i s s i o n o n
a n d a f t e r J u l y 1 , 2 0 0 9 o n a c c o u n t o f t h e r e t a i l t r a n s a c t i o n s a n d u s e t a x i m p o s e d i n t h e C o u n t y o f
R i v e r s i d e p u r s u a n t t o t h e A c t a n d t h e O r d i n a n c e a f t e r d e d u c t i n g a m o u n t s p a y a b l e b y t h e
C o m m i s s i o n t o t h e S t a t e B o a r d o f E q u a l i z a t i o n f o r c o s t s a n d e x p e n s e s f o r i t s s e r v i c e s i n
c o n n e c t i o n w i t h t h e r e t a i l t r a n s a c t i o n s a n d u s e t a x e s c o l l e c t e d p u r s u a n t t o t h e A c t .
" S e c u r i t i e s D e p o s i t o r y " m e a n s D T C , o r , i n a c c o r d a n c e w i t h t h e n - c u r r e n t g u i d e l i n e s o f t h e
S e c u r i t i e s a n d E x c h a n g e C o m m i s s i o n , s u c h o t h e r s e c u r i t i e s d e p o s i t o r y , o r n o s u c h d e p o s i t o r i e s ,
a s t h e C o m m i s s i o n m a y d e s i g n a t e i n a R e q u e s t o f t h e C o m m i s s i o n d e l i v e r e d t o t h e T r u s t e e .
" S e r i a l B o n d s " m e a n s B o n d s , m a t u r i n g i n s p e c i f i e d y e a r s , f o r w h i c h n o M a n d a t o r y
S i n k i n g A c c o u n t P a y m e n t s a r e p r o v i d e d .
" S e r i e s , " w h e n e v e r u s e d h e r e i n w i t h r e s p e c t t o B o n d s , m e a n s a l l o f t h e B o n d s d e s i g n a t e d
a s b e i n g o f t h e s a m e s e r i e s , a u t h e n t i c a t e d a n d d e l i v e r e d i n a s i m u l t a n e o u s t r a n s a c t i o n r e g a r d l e s s
o f v a r i a t i o n s i n m a t u r i t y , i n t e r e s t r a t e , r e d e m p t i o n a n d o t h e r p r o v i s i o n s , a n d a n y B o n d s t h e r e a f t e r
a u t h e n t i c a t e d a n d d e l i v e r e d u p o n t r a n s f e r o r e x c h a n g e o r i n l i e u o f o r i n s u b s t i t u t i o n f o r ( b u t n o t
t o r e f u n d ) s u c h B o n d s a s h e r e i n p r o v i d e d .
" S I F M A S w a p I n d e x " m e a n s , o n a n y d a t e , a r a t e d e t e r m i n e d o n t h e b a s i s o f t h e s e v e n -
d a y h i g h g r a d e m a r k e t i n d e x o f t a x - e x e m p t v a r i a b l e r a t e d e m a n d o b l i g a t i o n s , a s p r o d u c e d b y
O H S W e s t : 2 6 0 3 7 9 4 7 5 . 8
1 9
1 7 0
Municipal Market Data and published or made available by the Securities Industry & Financial
Markets Association (formerly the Bond Market Association) ("SIFMA") or by any Person
acting in cooperation with or under the sponsorship of SIFMA and acceptable to the Trustee and
effective from such date.
"Sinking Account" means an account by that name established in the Principal Fund
pursuant to Section 5.04 for the payment of Term Bonds.
"Standard & Poor's or "S&P" means Standard & Poor's, a division of The McGraw-Hill
Companies, Inc., a corporation duly organized and existing under and by virtue of the laws of the
State of New York, and its successors and assigns, except that if such corporation shall be
dissolved or liquidated or shall no longer perform the functions of a securities rating agency, then
the term "Standard & Poor's" shall be deemed to refer to any other nationally recognized
securities rating agency selected by the Commission.
"State" means the State of California.
"State Board of Equalization" means the California State Board of Equalization.
"Subordinate Obligations" means the Notes, any other obligations of the Commission that
constitute "Parity Debt" under and as defined in the Notes Indenture, and any other obligations of
the Commission issued or incurred in accordance with Section 3.05(D).
"Subordinate Obligations Fund" means the fund by that name established pursuant to
Section 5.02.
"Supplemental Indenture" means any indenture hereafter duly executed and delivered,
supplementing, modifying or amending this Indenture, but only if and to the extent that such
supplemental indenture is authorized specifically hereunder.
"Swap Revenues" means all regularly -scheduled amounts (but not termination payments)
owed or paid to the Commission by any Counterparty under any Interest Rate Swap Agreement
after offset for the regularly -scheduled amounts (but not termination payments) owed or paid by
the Commission to such Counterparty under such Interest Rate Swap Agreement.
"Tax Certificate" means each Tax Certificate delivered by the Commission at the time of
issuance and delivery of a Series of Bonds, as the same may be amended or supplemented in
accordance with its terms.
"Tax Expiration Date" means June 30, 2039, or such later date to which the levy of the
retail transactions and use tax is extended in accordance with the Act.
"Terre Bonds" means Bonds payable at or before their specified maturity date or dates
from Mandatory Sinking Account Payments established for that purpose and calculated to retire
such Bonds on or before their specified maturity date or dates.
OHS West:260379475.8
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171
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" T r u s t e e " m e a n s U . S . B a n k N a t i o n a l A s s o c i a t i o n , a n a t i o n a l b a n k i n g a s s o c i a t i o n d u l y
o r g a n i z e d a n d e x i s t i n g u n d e r a n d b y v i r t u e o f t h e l a w s o f t h e U n i t e d S t a t e s o f A m e r i c a , o r i t s
s u c c e s s o r , a s T r u s t e e a s p r o v i d e d i n S e c t i o n 8 . 0 1 .
" 2 0 0 2 O r d i n a n c e " m e a n s t h e T r a n s p o r t a t i o n E x p e n d i t u r e P l a n a n d R e t a i l T r a n s a c t i o n a n d
U s e T a x O r d i n a n c e , a d o p t e d b y t h e C o m m i s s i o n o n M a y 8 , 2 0 0 2 , a n d a p p r o v e d b y a t l e a s t t w o -
t h i r d s o f e l e c t o r s v o t i n g o n s u c h p r o p o s i t i o n i n t h e N o v e m b e r 5 , 2 0 0 2 e l e c t i o n , a s s u p p l e m e n t e d
a n d a m e n d e d .
" 2 0 0 8 B o n d s " m e a n s t h e R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n S a l e s T a x
R e v e n u e B o n d s ( L i m i t e d T a x B o n d s ) , 2 0 0 8 S e r i e s A , a u t h o r i z e d b y , a n d a t a n y t i m e O u t s t a n d i n g
p u r s u a n t t o , t h i s I n d e n t u r e .
" V a r i a b l e R a t e I n d e b t e d n e s s " m e a n s a n y i n d e b t e d n e s s , i n c l u d i n g B o n d s , P a n t y
O b l i g a t i o n s , a n d S u b o r d i n a t e O b l i g a t i o n s , t h e i n t e r e s t r a t e o n w h i c h i s n o t f i x e d a t t h e t i m e o f
i n c u r r e n c e o f s u c h i n d e b t e d n e s s , a n d h a s n o t a t s o m e s u b s e q u e n t d a t e b e e n f i x e d , a t a n u m e r i c a l
r a t e o r r a t e s f o r t h e e n t i r e t e r m o f s u c h i n d e b t e d n e s s .
S E C T I O N 1 . 0 3 C o n t e n t o f C e r t i f i c a t e s . E v e r y c e r t i f i c a t e p r o v i d e d f o r i n t h i s
I n d e n t u r e w i t h r e s p e c t t o c o m p l i a n c e w i t h a n y p r o v i s i o n h e r e o f s h a l l i n c l u d e : ( 1 ) a s t a t e m e n t
t h a t t h e p e r s o n m a k i n g o r g i v i n g s u c h c e r t i f i c a t e h a s r e a d s u c h p r o v i s i o n a n d t h e d e f i n i t i o n s
h e r e i n r e l a t i n g t h e r e t o ; ( 2 ) a b r i e f s t a t e m e n t a s t o t h e n a t u r e a n d s c o p e o f t h e e x a m i n a t i o n o r
i n v e s t i g a t i o n u p o n w h i c h t h e c e r t i f i c a t e i s b a s e d ; ( 3 ) a s t a t e m e n t t h a t , i n t h e o p i n i o n o f s u c h
p e r s o n , h e o r s h e h a s m a d e o r c a u s e d t o b e m a d e s u c h e x a m i n a t i o n o r i n v e s t i g a t i o n a s i s
n e c e s s a r y t o e n a b l e h i m t o e x p r e s s a n i n f o r m e d o p i n i o n w i t h r e s p e c t t o t h e s u b j e c t m a t t e r
r e f e r r e d t o i n t h e i n s t r u m e n t t o w h i c h h i s s i g n a t u r e i s a f f i x e d ; a n d ( 4 ) a s t a t e m e n t a s t o w h e t h e r ,
i n t h e o p i n i o n o f s u c h p e r s o n , s u c h p r o v i s i o n h a s b e e n c o m p l i e d w i t h .
A n y s u c h c e r t i f i c a t e g i v e n b y a n o f f i c e r o f t h e C o m m i s s i o n m a y b e b a s e d , i n s o f a r a s i t
r e l a t e s t o l e g a l o r a c c o u n t i n g m a t t e r s , u p o n a c e r t i f i c a t e o r o p i n i o n o f o r r e p r e s e n t a t i o n b y
c o u n s e l , a n a c c o u n t a n t , a f m a n c i a l a d v i s o r , a n i n v e s t m e n t b a n k e r o r a n i n d e p e n d e n t c o n s u l t a n t ,
u n l e s s s u c h o f f i c e r k n o w s , o r i n t h e e x e r c i s e o f r e a s o n a b l e c a r e s h o u l d h a v e k n o w n , t h a t t h e
c e r t i f i c a t e , o p i n i o n o r r e p r e s e n t a t i o n w i t h r e s p e c t t o t h e m a t t e r s u p o n w h i c h s u c h c e r t i f i c a t e o r
s t a t e m e n t m a y b e b a s e d , a s a f o r e s a i d , i s e r r o n e o u s . A n y s u c h c e r t i f i c a t e o r o p i n i o n m a d e o r
g i v e n b y c o u n s e l , a n a c c o u n t a n t , a f i n a n c i a l a d v i s o r , a n d i n v e s t m e n t b a n k e r o r a n i n d e p e n d e n t
c o n s u l t a n t m a y b e b a s e d , i n s o f a r a s i t r e l a t e s t o f a c t u a l m a t t e r s ( w i t h r e s p e c t t o w h i c h
i n f o r m a t i o n i s i n t h e p o s s e s s i o n o f t h e C o m m i s s i o n ) u p o n a c e r t i f i c a t e o r o p i n i o n o f o r
r e p r e s e n t a t i o n b y a n o f f i c e r o f t h e C o m m i s s i o n , u n l e s s s u c h c o u n s e l , a c c o u n t a n t , f i n a n c i a l
a d v i s o r , i n v e s t m e n t b a n k e r o r i n d e p e n d e n t c o n s u l t a n t k n o w s , o r i n t h e e x e r c i s e o f r e a s o n a b l e
c a r e s h o u l d h a v e k n o w n , t h a t t h e c e r t i f i c a t e o r o p i n i o n o r r e p r e s e n t a t i o n w i t h r e s p e c t t o t h e
m a t t e r s u p o n w h i c h s u c h p e r s o n ' s c e r t i f i c a t e o r o p i n i o n o r r e p r e s e n t a t i o n m a y b e b a s e d , a s
a f o r e s a i d , i s e r r o n e o u s . T h e s a m e o f f i c e r o f t h e C o m m i s s i o n , o r t h e s a m e c o u n s e l , a c c o u n t a n t ,
f i n a n c i a l a d v i s o r , i n v e s t m e n t b a n k e r o r i n d e p e n d e n t c o n s u l t a n t , a s t h e c a s e m a y b e , n e e d n o t
c e r t i f y t o a l l o f t h e m a t t e r s r e q u i r e d t o b e c e r t i f i e d u n d e r a n y p r o v i s i o n o f t h i s I n d e n t u r e , b u t
d i f f e r e n t o f f i c e r s , c o u n s e l , a c c o u n t a n t s , f i n a n c i a l a d v i s o r s , i n v e s t m e n t b a n k e r s o r i n d e p e n d e n t
c o n s u l t a n t s m a y c e r t i f y t o d i f f e r e n t m a t t e r s , r e s p e c t i v e l y .
O H S W e s t : 2 6 0 3 7 9 4 7 5 . 8
2 1
1 7 2
ARTICLE II
THE BONDS
SECTION 2.01 Authorization of Bonds. Bonds may be issued hereunder as fully
registered bonds without coupons, in book -entry form or otherwise, from time to time as the
issuance thereof is approved by the Commission. The maximum principal amount of Bonds
which may be issued hereunder is not limited; subject, however, to any limitations contained in
the Act and to the right of the Commission, which is hereby reserved, to limit the aggregate
principal amount of Bonds which may be issued or Outstanding hereunder. The Bonds are
designated generally as "Riverside County Transportation Commission Sales Tax Revenue
Bonds" and shall include in the name "Limited Tax Bonds," each Series thereof to bear such
additional designation as may be necessary or appropriate to distinguish such Series from every
other Series of Bonds. The Bonds may be issued in such Series as from time to time shall be
established and authorized by the Commission, subject to the covenants, provisions and
conditions herein contained.
SECTION 2.02 Terms of the Bonds. The Bonds of each Series shall bear interest,
if any, at such rate or rates or determined in such manner and payable at such intervals as may be
determined by the Commission at the time of issuance thereof pursuant to the Supplemental
Indenture under which issued, not to exceed the Maximum Interest Rate, and shall mature and
become payable on such date or dates and in such year or years as the Commission may
determine by the Supplemental Indenture creating such Series. Principal of and interest on such
Bonds shall be payable in such manner as may be specified in the Supplemental Indenture
creating such Series. The Bonds of each Series shall be issued in such denominations as may be
authorized by the Supplemental Indenture creating such Series.
Unless otherwise provided in the Supplemental Indenture delivered in connection with
such Series of Bonds, the Bonds of each Series shall be initially registered in the name of "Cede
& Co.," as nominee of the Securities Depository and shall be evidenced by one bond certificate
for each maturity of each Series of Bonds. Registered ownership of any Series of Bonds, or any
portion thereof, may not thereafter be transferred except as set forth in Section 2.10, or in the
event the use of the Securities Depository is discontinued, in accordance with the provisions set
forth in Section 2.05.
SECTION 2.03 Form of Bonds. The Bonds of any Series shall be in such form or
forms as may be specified in the Supplemental Indenture creating such Series.
SECTION 2.04 Execution of Bonds. The Bonds shall be executed in the name and
on behalf of the Commission by the facsimile or manual signature of the Chairperson of the
Board or any Vice Chairperson of the Board and shall be countersigned by the facsimile or
manual signature of the Auditor -Controller of the Commission, and shall have the official seal of
the Commission attached or affixed thereon in manual or facsimile form. Unless otherwise
provided in any Supplemental Indenture, the Bonds shall then be delivered to the Trustee for
authentication by the Trustee. In case any of the officers who shall have signed or attested any
of the Bonds shall cease to be such officer or officers of the Commission before the Bonds so
signed or attested shall have been authenticated or delivered by the Trustee or issued by the
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C o m m i s s i o n , s u c h B o n d s m a y n e v e r t h e l e s s b e a u t h e n t i c a t e d , d e l i v e r e d a n d i s s u e d a n d , u p o n
s u c h a u t h e n t i c a t i o n , d e l i v e r y a n d i s s u e , s h a l l b e a s b i n d i n g u p o n t h e C o m m i s s i o n a s t h o u g h t h o s e
w h o s i g n e d a n d a t t e s t e d t h e s a m e h a d c o n t i n u e d t o b e s u c h o f f i c e r s o f t h e C o m m i s s i o n , a n d a l s o
a n y B o n d m a y b e s i g n e d a n d a t t e s t e d o n b e h a l f o f t h e C o m m i s s i o n b y s u c h p e r s o n s a s a t t h e
a c t u a l d a t e o f e x e c u t i o n o f s u c h B o n d s h a l l b e t h e p r o p e r o f f i c e r s o f t h e C o m m i s s i o n a l t h o u g h a t
t h e n o m i n a l d a t e o f s u c h B o n d a n y s u c h p e r s o n s h a l l n o t h a v e b e e n s u c h o f f i c e r o f t h e
C o m m i s s i o n .
E x c e p t a s m a y b e o t h e r w i s e b e p r o v i d e d i n a S u p p l e m e n t a l I n d e n t u r e e s t a b l i s h i n g t h e
t e r m s a n d p r o v i s i o n s o f a S e r i e s o f B o n d s , o n l y s u c h o f t h e B o n d s a s s h a l l b e a r t h e r e o n a
c e r t i f i c a t e o f a u t h e n t i c a t i o n s u b s t a n t i a l l y i n t h e f o r m r e c i t e d i n t h e S u p p l e m e n t a l I n d e n t u r e
c r e a t i n g s u c h S e r i e s o f B o n d s , m a n u a l l y e x e c u t e d b y t h e T r u s t e e , s h a l l b e v a l i d o r o b l i g a t o r y f o r
a n y p u r p o s e o r e n t i t l e d t o t h e b e n e f i t s o f t h i s I n d e n t u r e , a n d s u c h c e r t i f i c a t e o f a u t h e n t i c a t i o n
w h e n m a n u a l l y e x e c u t e d b y t h e T r u s t e e s h a l l b e c o n c l u s i v e e v i d e n c e t h a t t h e B o n d s s o
a u t h e n t i c a t e d h a v e b e e n d u l y e x e c u t e d , a u t h e n t i c a t e d a n d d e l i v e r e d h e r e u n d e r a n d a r e e n t i t l e d t o
t h e b e n e f i t s o f t h i s I n d e n t u r e .
S E C T I O N 2 . 0 5 T r a n s f e r o f B o n d s . A n y B o n d m a y , i n a c c o r d a n c e w i t h i t s t e r m s ,
b e t r a n s f e r r e d , u p o n t h e r e g i s t e r r e q u i r e d t o b e k e p t p u r s u a n t t o t h e p r o v i s i o n s o f S e c t i o n 2 . 0 7 , b y
t h e p e r s o n i n w h o s e n a m e i t i s r e g i s t e r e d , i n p e r s o n o r b y h i s d u l y a u t h o r i z e d a t t o r n e y , u p o n
s u r r e n d e r o f s u c h B o n d f o r c a n c e l l a t i o n , a c c o m p a n i e d b y d e l i v e r y o f a w r i t t e n i n s t r u m e n t o f
t r a n s f e r , d u l y e x e c u t e d i n a f o r m a c c e p t a b l e t o t h e T r u s t e e .
W h e n e v e r a n y B o n d o r B o n d s s h a l l b e s u r r e n d e r e d f o r t r a n s f e r , t h e C o m m i s s i o n s h a l l
e x e c u t e a n d t h e T r u s t e e s h a l l a u t h e n t i c a t e a n d d e l i v e r a n e w B o n d o r B o n d s , o f t h e s a m e S e r i e s ,
t e n o r , m a t u r i t y a n d i n t e r e s t r a t e a n d a l i k e a g g r e g a t e p r i n c i p a l a m o u n t ; p r o v i d e d t h a t , u n l e s s
o t h e r w i s e p r o v i d e d i n a n y S u p p l e m e n t a l I n d e n t u r e , n o r e g i s t r a t i o n o f t r a n s f e r m a y o c c u r d u r i n g
t h e p e r i o d e s t a b l i s h e d b y t h e T r u s t e e f o r s e l e c t i o n o f B o n d s f o r r e d e m p t i o n , o r o f a n y B o n d o r
p o r t i o n o f a B o n d s o s e l e c t e d f o r r e d e m p t i o n . T h e T r u s t e e s h a l l r e q u i r e t h e B o n d h o l d e r
r e q u e s t i n g s u c h t r a n s f e r t o p a y a n y t a x o r o t h e r g o v e r n m e n t a l c h a r g e r e q u i r e d t o b e p a i d w i t h
r e s p e c t t o s u c h t r a n s f e r .
S E C T I O N 2 . 0 6 E x c h a n g e o f B o n d s . B o n d s m a y b e e x c h a n g e d a t t h e C o r p o r a t e
T r u s t O f f i c e o f t h e T r u s t e e f o r a l i c e a g g r e g a t e p r i n c i p a l a m o u n t o f B o n d s o f o t h e r a u t h o r i z e d
d e n o m i n a t i o n s o f t h e s a m e S e r i e s , t e n o r , m a t u r i t y a n d i n t e r e s t r a t e ; p r o v i d e d t h a t , u n l e s s
o t h e r w i s e p r o v i d e d i n a n y S u p p l e m e n t a l I n d e n t u r e , n o e x c h a n g e m a y o c c u r d u r i n g t h e p e r i o d
e s t a b l i s h e d b y t h e T r u s t e e f o r s e l e c t i o n o f B o n d s f o r r e d e m p t i o n , o r o f a n y B o n d o r p o r t i o n o f a
B o n d s o s e l e c t e d f o r r e d e m p t i o n . T h e T r u s t e e s h a l l r e q u i r e t h e B o n d h o l d e r r e q u e s t i n g s u c h
e x c h a n g e t o p a y a n y t a x o r o t h e r g o v e r n m e n t a l c h a r g e r e q u i r e d t o b e p a i d w i t h r e s p e c t t o s u c h
e x c h a n g e .
S E C T I O N 2 . 0 7 B o n d R e g i s t e r . U n l e s s o t h e r w i s e p r o v i d e d i n a S u p p l e m e n t a l
I n d e n t u r e d e l i v e r e d i n c o n n e c t i o n w i t h a S e r i e s o f B o n d s , t h e T r u s t e e w i l l k e e p o r c a u s e t o b e
k e p t , a t i t s C o r p o r a t e T r u s t O f f i c e s u f f i c i e n t b o o k s f o r t h e r e g i s t r a t i o n a n d t r a n s f e r o f e a c h S e r i e s
o f B o n d s ( t h e " B o n d R e g i s t e r " ) , w h i c h s h a l l a t a l l t i m e s b e o p e n t o i n s p e c t i o n d u r i n g n o r m a l
b u s i n e s s h o u r s b y t h e C o m m i s s i o n a n d e a c h C r e d i t P r o v i d e r u p o n r e a s o n a b l e p r i o r n o t i c e ; a n d ,
u p o n p r e s e n t a t i o n f o r s u c h p u r p o s e , t h e T r u s t e e s h a l l , u n d e r s u c h r e a s o n a b l e r e g u l a t i o n s a s i t
O H S W e s t : 2 6 0 3 7 9 4 1 5 . 8
2 3
1 7 4
may prescribe, register or transfer or cause to be registered or transferred, on such books, Bonds
as hereinbefore provided.
SECTION 2.08 Temporary Bonds. The Bonds may be issued in temporary form
exchangeable for definitive Bonds when ready for delivery. Any temporary Bond may be
printed, lithographed or typewritten, shall be of such denomination as may be determined by the
Commission, shall be in registered form and may contain such reference to any of the provisions
of this Indenture as may be appropriate. A temporary Bond may be in the form of a single Bond
payable in installments, each on the date, in the amount and at the rate of interest established for
the Bonds maturing on such date. Every temporary Bond shall be executed by the Commission
and authenticated by the Trustee upon the same conditions and in substantially the same manner
as the definitive Bonds. If the Commission issues temporary Bonds the Commission will
execute and deliver definitive Bonds as promptly thereafter as practicable, and thereupon the
temporary Bonds may be surrendered, for cancellation, in exchange therefor at the Corporate
Trust Office of the Trustee and the Trustee shall authenticate and deliver in exchange for such
temporary Bonds an equal aggregate principal amount of definitive Bonds of authorized
denominations of the same Series, tenor and maturity or maturities. Until so exchanged, the
temporary Bonds shall be entitled to the same benefits under this Indenture as definitive Bonds
authenticated and delivered hereunder.
SECTION 2.09 Bonds Mutilated; Lost; Destroyed or Stolen. If any Bond shall
become mutilated, the Commission, at the expense of the Holder of said Bond, shall execute, and
the Trustee shall thereupon authenticate and deliver, a new Bond of like Series, tenor, maturity
and interest rate in exchange and substitution for the Bond so mutilated, but only upon surrender
to the Trustee of the Bond so mutilated. Every mutilated Bond so surrendered to the Trustee
shall be canceled by the Trustee and delivered to, or upon the Order of, the Commission. If any
Bond shall be lost, destroyed or stolen, evidence of such loss, destruction or theft may be
submitted to the Commission and to the Trustee and, if such evidence be satisfactory to both and
indemnity satisfactory to both shall be given, the Commission, at the expense of the Holder, shall
execute, and the Trustee shall thereupon authenticate and deliver, a new Bond of like Series,
tenor, maturity and interest rate in lieu of and in substitution for the Bond so lost, destroyed or
stolen (or if any such Bond shall have matured or shall have been called for redemption, instead
of issuing a substitute Bond, the Trustee may pay the same without surrender thereof upon
receipt of the aforementioned indemnity). The Commission may require payment of a sum not
exceeding the actual cost of preparing each new Bond issued under this Section and of the
expenses which may be incurred by the Commission and the Trustee in the premises. Any Bond
issued under the provisions of this Section in lieu of any Bond alleged to be lost, destroyed or
stolen shall constitute an original additional contractual obligation on the part of the Commission
whether or not the Bond so alleged to be lost, destroyed or stolen be at any time enforceable by
anyone, and shall be entitled to the benefits of this Indenture with all other Bonds secured by this
Indenture. Neither the Commission nor the Trustee shall be required to treat both the original
Bond and any replacement Bond as being Outstanding for the purpose of determining the
principal amount of Bonds which may be issued hereunder or for the purpose of determining any
percentage of Bonds Outstanding hereunder, but both the original and replacement Bond shall be
treated as one and the same.
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SECTION 2.10 Use of Securities Depository. Unless otherwise provided in a
Supplemental Indenture delivered in connection with a Series of Bonds, notwithstanding any
provision of this Indenture to the contrary:
(A) The Bonds shall be delivered and registered as provided in Section 2.02.
Registered ownership of any Series of Bonds, or any portion thereof, may not thereafter. be
transferred except:
(1) To any successor of the Securities Depository or its nominee, or to any
substitute depository designated pursuant to clause (2) of this subsection (A) (each, a
"substitute depository"); provided that any successor of the Securities Depository or
substitute depository shall be qualified under any applicable laws to provide the service
proposed to be provided by it;
(2) To any substitute depository designated by the Commission upon (a) the
resignation of the Securities Depository or its successor (or any substitute depository or
its successor) from its functions as depository or (b) a determination by the Commission
that the Securities Depository or its successor (or any substitute depository or its
successor) is no longer able to carry out its functions as depository; provided that any
such substitute depository shall be qualified under any applicable laws to provide the
services proposed to be provided by it; or
(3) To any Person as provided below, upon (a) the resignation of the
Securities Depository or its successor (or substitute depository or its successor) from its
functions as depository; provided that no substitute depository can be obtained or (b) a
determination by the Commission that it is in the best interests of the Commission to
remove the Securities Depository or its successor (or any substitute depository or its
successor) from its functions as depository.
(B) In the case of any transfer pursuant to clause (1) or clause (2) of subsection (A)
above, upon receipt of the Outstanding Bonds by the Trustee, together with a Statement of the
Commission to the Trustee, a single new Bond for each maturity of each Series of Bonds then
Outstanding shall be executed and delivered in the aggregate principal amount of the Bonds of
such Series then Outstanding, registered in the name of such successor or such substitute
depository, or their nominees, as the case may be, all as specified in such Statement of the
Commission. In the case of any transfer pursuant to clause (3) of subsection (A) hereof, upon
receipt of the Outstanding Bonds by the Trustee together with the Statement of the Commission
to the Trustee, new Bonds of each Series then Outstanding shall be authorized and prepared by
the Commission and authenticated and delivered by the Trustee in such authorized
denominations and registered in the names of such Persons as are requested in such a Statement
of the Commission, numbered in such manner as the Trustee shall determine, subject to the
limitations of Section 2.02.
(C) In the case of partial redemption or an advance refunding of any Series of the
Bonds evidencing all or a portion of such amount Outstanding, the Securities Depository shall
make an appropriate notation on such Bonds indicating the date and amounts of such reduction
in principal, in form acceptable to the Trustee.
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(D) The Commission and the Trustee shall be entitled to treat the Person in whose
name any Bond is registered as the Bondholder thereof for all purposes of the Indenture and any
applicable laws, notwithstanding any notice to the contrary received by the Trustee or the
Commission; and the Commission and the Trustee shall have no responsibility for transmitting
payments to, communicating with, notifying or otherwise dealing with any Beneficial Owners of
the Bonds. Neither the Commission nor the Trustee will have any responsibility or obligations,
legal or otherwise, to the Beneficial Owners or to any other party including the Securities
Depository or its successor (or substitute depository or its successor), except for the Holder of
any Bond.
(E) So long as the Outstanding Bonds are registered in the name of Cede & Co. or its
registered assign, the Commission and the Trustee shall cooperate with Cede & Co., as sole
registered Bondholder, and its registered assigns in effecting payment of the principal of,
redemption premium, if any, purchase price and interest on the Bonds by arranging for payment
in such manner that funds for such payments are properly identified and are made immediately
available on the date they are due.
ARTICLE III
ISSUANCE OF BONDS
SECTION 3.01 Issuance of Bonds. Whenever the Commission shall determine to
issue a Series of Bonds hereunder; the Commission (i) shall authorize the execution of a
Supplemental Indenture specifying the principal amount, and prescribing the forms of Bonds of
such Series and providing the terms, conditions, distinctive designation, denominations, date,
maturity date or dates, interest rate or rates (or the manner of determining the same), redemption
provisions, tender provisions, if any, and place or places of payment of principal or Redemption
Price, if any, of and interest on such Bonds, and any other provisions respecting the Bonds of
such Series not inconsistent with the terms of this Indenture, (ii) shall execute such Supplemental
Indenture and (iii) shall deliver such Supplemental Indenture to the Trustee for execution.
SECTION 3.02 Issuance of Additional Bonds. Subsequent to the issuance of the
2008 Bonds, the Commission may by Supplemental Indenture establish one or more additional
Series of Bonds, payable from Sales Tax Revenues and secured by the pledge made under this
Indenture equally and ratably with the 2008 Bonds, and the Commission may issue, and the
Trustee may authenticate and deliver to the purchasers thereof, Bonds of any Series so
established, in such principal amount as shall be determined by the Commission, but only, with
respect to each additional Series of Bonds issued subsequent to the 2008 Bonds issued
hereunder; upon compliance by the Commission with the provisions of this Section 3.02, Section
3.03 and any additional requirements set forth in said Supplemental Indenture and subject to the
specific conditions set. forth below, each of which is hereby made a condition precedent to the
issuance of any such additional Series of Bonds.
(A) No Event of Default shall have occurred and then be continuing.
(B) Subject to the provisions of Section 5.05, in the event a Supplemental Indenture
providing for the issuance of such Series shall require either (i) the establishment of a Bond
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R e s e r v e F u n d t o p r o v i d e a d d i t i o n a l s e c u r i t y f o r s u c h S e r i e s o f B o n d s o r ( i i ) t h a t t h e b a l a n c e o n
d e p o s i t i n a n e x i s t i n g B o n d R e s e r v e F u n d b e i n c r e a s e d , f o r t h w i t h u p o n t h e r e c e i p t o f t h e
p r o c e e d s o f t h e s a l e o f s u c h S e r i e s , t o a n a m o u n t a t l e a s t e q u a l t o t h e B o n d R e s e r v e R e q u i r e m e n t
w i t h r e s p e c t t o s u c h S e r i e s o f B o n d s a n d a l l o t h e r B o n d s s e c u r e d b y s u c h B o n d R e s e r v e F u n d t o
b e c o n s i d e r e d O u t s t a n d i n g u p o n t h e i s s u a n c e o f s u c h a d d i t i o n a l S e r i e s o f B o n d s , t h e
S u p p l e m e n t a l I n d e n t u r e p r o v i d i n g f o r t h e i s s u a n c e o f s u c h a d d i t i o n a l S e r i e s o f B o n d s s h a l l
r e q u i r e d e p o s i t o f t h e a m o u n t n e c e s s a r y . S a i d d e p o s i t s h a l l b e m a d e a s p r o v i d e d i n t h e
S u p p l e m e n t a l I n d e n t u r e p r o v i d i n g f o r t h e i s s u a n c e o f s u c h a d d i t i o n a l S e r i e s o f B o n d s a n d m a y
b e m a d e f r o m t h e p r o c e e d s o f t h e s a l e o f s u c h S e r i e s o f B o n d s o r f r o m o t h e r f u n d s o f t h e
C o m m i s s i o n o r f r o m b o t h s u c h s o u r c e s o r m a y b e m a d e i n t h e f o r m o f a R e s e r v e F a c i l i t y .
( C ) T h e a g g r e g a t e p r i n c i p a l a m o u n t o f B o n d s i s s u e d h e r e u n d e r s h a l l n o t e x c e e d a n y
l i m i t a t i o n i m p o s e d b y t h e A c t o r a n y o t h e r l a w o r b y a n y S u p p l e m e n t a l I n d e n t u r e .
( D ) T h e C o m m i s s i o n s h a l l p l a c e o n f i l e w i t h t h e T r u s t e e a C e r t i f i c a t e o f t h e
C o m m i s s i o n c e r t i f y i n g t h a t t h e a m o u n t o f S a l e s T a x R e v e n u e s a n d 1 9 8 8 S a l e s T a x R e v e n u e s
c o l l e c t e d d u r i n g t h e F i s c a l Y e a r f o r w h i c h a u d i t e d f i n a n c i a l s t a t e m e n t s a r e a v a i l a b l e p r e c e d i n g
t h e d a t e o n w h i c h s u c h a d d i t i o n a l S e r i e s o f B o n d s w i l l b e c o m e O u t s t a n d i n g s h a l l h a v e b e e n a t
l e a s t e q u a l t o 1 . 5 t i m e s M a x i m u m A n n u a l D e b t S e r v i c e o n a l l S e r i e s o f B o n d s a n d P a r i t y
O b l i g a t i o n s t h e n O u t s t a n d i n g a n d t h e a d d i t i o n a l S e r i e s o f B o n d s t h e n p r o p o s e d t o b e i s s u e d ,
w h i c h C e r t i f i c a t e s h a l l a l s o s e t f o r t h t h e c o m p u t a t i o n s u p o n w h i c h s u c h C e r t i f i c a t e i s b a s e d .
( E ) P r i n c i p a l p a y m e n t s o f e a c h a d d i t i o n a l S e r i e s o f B o n d s s h a l l b e d u e o n J u n e 1 o r
D e c e m b e r 1 i n e a c h y e a r i n w h i c h p r i n c i p a l i s t o b e p a i d i f a n d t o t h e e x t e n t d e e m e d p r a c t i c a l i n
t h e r e a s o n a b l e j u d g m e n t o f t h e C o m m i s s i o n w i t h r e g a r d t o t h e t y p e o f B o n d t o b e i s s u e d , a n d , i f
t h e i n t e r e s t o n s u c h S e r i e s o f B o n d s i s t o b e p a i d s e m i a n n u a l l y , s u c h i n t e r e s t p a y m e n t s s h a l l b e
d u e o n J u n e 1 a n d D e c e m b e r 1 i n e a c h y e a r t o t h e e x t e n t d e e m e d p r a c t i c a l i n t h e r e a s o n a b l e
j u d g m e n t o f t h e C o m m i s s i o n w i t h r e g a r d t o t h e t y p e o f B o n d t o b e i s s u e d .
N o t h i n g i n t h i s S e c t i o n o r i n t h i s I n d e n t u r e c o n t a i n e d s h a l l p r e v e n t o r b e c o n s t r u e d t o
p r e v e n t t h e S u p p l e m e n t a l I n d e n t u r e p r o v i d i n g f o r t h e i s s u a n c e o f a n a d d i t i o n a l S e r i e s o f B o n d s
f r o m p l e d g i n g o r o t h e r w i s e p r o v i d i n g , i n a d d i t i o n t o t h e s e c u r i t y g i v e n o r i n t e n d e d t o b e g i v e n b y
t h i s I n d e n t u r e , a d d i t i o n a l s e c u r i t y f o r t h e b e n e f i t o f s u c h a d d i t i o n a l S e r i e s o f B o n d s o r a n y
p o r t i o n t h e r e o f .
I n t h e e v e n t a d d i t i o n a l a s s e t s o r r e v e n u e s a r e i n c l u d e d w i t h i n t h e d e f i n i t i o n o f
" R e v e n u e s " b y a S u p p l e m e n t a l I n d e n t u r e , s u c h a d d i t i o n a l a s s e t s o r r e v e n u e s s h a l l b e i n c l u d e d i n
t h e c a l c u l a t i o n s t o b e p r o v i d e d i n s u b s e c t i o n ( D ) a b o v e a s i f s u c h a d d i t i o n a l a s s e t s o r r e v e n u e s
h a d a l w a y s b e e n i n c l u d e d i n ' R e v e n u e s . "
S E C T I O N 3 . 0 3 P r o c e e d i n g s f o r I s s u a n c e o f A d d i t i o n a l B o n d s . S u b s e q u e n t t o t h e
i s s u a n c e o f t h e 2 0 0 8 B o n d s , b e f o r e a n y a d d i t i o n a l S e r i e s o f B o n d s s h a l l b e i s s u e d a n d d e l i v e r e d ,
t h e C o m m i s s i o n s h a l l f i l e e a c h o f t h e d o c u m e n t s i d e n t i f i e d b e l o w w i t h t h e T r u s t e e ( u p o n w h i c h
d o c u m e n t s t h e T r u s t e e m a y c o n c l u s i v e l y r e l y i n d e t e r m i n i n g w h e t h e r t h e c o n d i t i o n s p r e c e d e n t t o
t h e i s s u a n c e o f s u c h S e r i e s o f B o n d s h a v e b e e n s a t i s f i e d ) .
( A ) A S u p p l e m e n t a l I n d e n t u r e a u t h o r i z i n g s u c h S e r i e s e x e c u t e d b y t h e C o m m i s s i o n .
O H S W e s t : 2 6 0 3 7 9 4 7 5 . g
2 7
1 7 8
(B) A Certificate of the Commission certifying: (i) that no Event of Default has
occurred and is then continuing; and (ii) that the requirements specified in Section 3.02(B) and
Section 3.02(C) hereof have been satisfied by the Commission.
(C) A Certificate of the Commission certifying (on the basis of computations made no
later than the date of sale of such Series of Bonds) that the requirement of Section 3.02(D) is
satisfied.
(D) An Opinion of Bond Counsel to the effect that the Supplemental Indenture is
being entered into in accordance with this Indenture and that such Series of Bonds, when duly
executed by the Commission and authenticated and delivered by the Trustee, will be valid and
binding obligations of the Commission.
SECTION 3.04 Issuance of Refunding Bonds.
(A) Refunding Bonds may be authorized and issued by the Commission without
compliance with the provisions of Sections 3.02(D) or 3.03(C); provided that the Trustee shall
have been provided with a Certificate of the Commission to the effect that the Commission has
determined one of the following: (i) that Maximum Annual Debt Service on all Bonds
Outstanding and all Parity Obligations outstanding following the issuance of such Refunding
Bonds is less than or equal to Maximum Annual Debt Service on all Bonds Outstanding and all
Parity Obligations outstanding prior to the issuance of such Refunding Bonds, or (ii) that the
Commission expects a reduction in Debt Service on all Bonds Outstanding and all Parity
Obligations outstanding to result from the refunding to be effected with the proceeds of such
Refunding Bonds. Such Refunding Bonds may be issued in an aggregate principal amount
sufficient (together with any additional funds available or to become available) to provide funds
for the payment of all or a portion of the following:
(1) the principal or Redemption Price of the Outstanding Bonds or
outstanding Parity Obligations to be refunded;
(2) all expenses incident to the calling, retiring or paying of such Outstanding
Bonds or outstanding Parity Obligations and the Costs of Issuance of such Refunding
Bonds;
(3) any termination payment owed by the Commission to a Counterparty after
offset for any payments made to the Commission from such Counterparty under any
Interest Rate Swap Agreement that was entered into in connection with the Bonds or
Parity Obligations to be refunded;
(4) interest on all Outstanding Bonds or outstanding Parity Obligations to be
refunded to the date such Bonds or Parity Obligations will be called for redemption or
paid at maturity;
(5) interest on the Refunding Bonds from the date thereof to the date of
payment or redemption of the Bonds or Parity Obligations to be refunded; and
(6) funding a Bond Reserve Fund for the Refunding Bonds, if required.
OHS West:260379475.8
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179
"
"
"
( B ) B e f o r e s u c h S e r i e s o f R e f u n d i n g B o n d s s h a l l b e i s s u e d a n d d e l i v e r e d p u r s u a n t t o
t h i s S e c t i o n 3 . 0 4 , t h e C o m m i s s i o n s h a l l f i l e e a c h o f t h e d o c u m e n t s i d e n t i f i e d b e l o w w i t h t h e
T r u s t e e ( u p o n w h i c h d o c u m e n t s t h e T r u s t e e m a y c o n c l u s i v e l y r e l y i n d e t e r m i n i n g w h e t h e r t h e
c o n d i t i o n s p r e c e d e n t t o t h e i s s u a n c e o f s u c h S e r i e s o f R e f u n d i n g B o n d s h a v e b e e n s a t i s f i e d ) .
( 1 ) A S u p p l e m e n t a l I n d e n t u r e a u t h o r i z i n g s u c h S e r i e s o f R e f u n d i n g B o n d s
e x e c u t e d b y t h e C o m m i s s i o n .
( 2 ) A C e r t i f i c a t e o f t h e C o m m i s s i o n c e r t i f y i n g : ( i ) t h a t M a x i m u m A n n u a l
D e b t S e r v i c e o n a l l B o n d s a n d P a r i t y O b l i g a t i o n s w h i c h w i l l b e o u t s t a n d i n g f o l l o w i n g t h e
i s s u a n c e o f s u c h S e r i e s o f R e f u n d i n g B o n d s i s l e s s t h a n o r e q u a l t o M a x i m u m A n n u a l
D e b t S e r v i c e o n a l l B o n d s O u t s t a n d i n g a n d P a n t y O b l i g a t i o n s o u t s t a n d i n g p r i o r t o t h e
i s s u a n c e o f s u c h R e f u n d i n g B o n d s o r t h a t t h e C o m m i s s i o n e x p e c t s a r e d u c t i o n i n D e b t
S e r v i c e o n a l l B o n d s O u t s t a n d i n g a n d a l l P a r i t y O b l i g a t i o n s o u t s t a n d i n g t o r e s u l t f r o m
t h e r e f u n d i n g t o b e e f f e c t e d w i t h t h e p r o c e e d s o f s u c h R e f u n d i n g B o n d s ; a n d ( i i ) t h a t t h e
r e q u i r e m e n t s o f S e c t i o n s 3 . 0 2 ( A ) , ( B ) , a n d ( C ) h e r e o f a r e s a t i s f i e d .
( 3 ) I f a n y o f t h e B o n d s t o b e r e f u n d e d a r e t o b e r e d e e m e d p r i o r t o t h e i r s t a t e d
m a t u r i t y d a t e s , i r r e v o c a b l e i n s t r u c t i o n s t o t h e T r u s t e e t o g i v e t h e a p p l i c a b l e n o t i c e o f
r e d e m p t i o n o r a w a i v e r o f t h e n o t i c e o f r e d e m p t i o n s i g n e d b y t h e H o l d e r s o f a l l o r t h e
p o r t i o n o f t h e B o n d s o r P a n t y O b l i g a t i o n s t o b e r e d e e m e d , o r p r o o f t h a t s u c h n o t i c e h a s
b e e n g i v e n b y t h e C o m m i s s i o n ; p r o v i d e d , h o w e v e r , t h a t i n l i e u o f s u c h i n s t r u c t i o n s o r
w a i v e r o r p r o o f o f n o t i c e o f r e d e m p t i o n , t h e C o m m i s s i o n m a y c a u s e t o b e d e p o s i t e d w i t h
t h e T r u s t e e a l l o f t h e B o n d s a n d P a r i t y O b l i g a t i o n s p r o p o s e d t o b e r e d e e m e d ( w h e t h e r
c a n c e l e d o r u n c a n c e l e d ) w i t h i r r e v o c a b l e i n s t r u c t i o n s t o t h e T r u s t e e t o c a n c e l s a i d B o n d s
o r P a r i t y O b l i g a t i o n s s o t o b e r e d e e m e d u p o n t h e e x c h a n g e a n d d e l i v e r y o f s a i d
R e f u n d i n g B o n d s ; a n d p r o v i d e d f u r t h e r t h a t n o p r o v i s i o n o f t h i s I n d e n t u r e s h a l l b e
c o n s t r u e d t o r e q u i r e t h e r e d e m p t i o n o f B o n d s p r i o r t o t h e i r r e s p e c t i v e m a t u r i t y d a t e s i n
c o n n e c t i o n w i t h t h e r e f u n d i n g t h e r e o f .
( 4 ) A n O p i n i o n o f B o n d C o u n s e l t o t h e e f f e c t t h a t t h e S u p p l e m e n t a l I n d e n t u r e
i s b e i n g e n t e r e d i n t o i n a c c o r d a n c e w i t h t h i s I n d e n t u r e a n d t h a t s u c h S e r i e s o f R e f u n d i n g
B o n d s , w h e n d u l y e x e c u t e d b y t h e C o m m i s s i o n a n d a u t h e n t i c a t e d a n d d e l i v e r e d b y t h e
T r u s t e e , w i l l b e v a l i d a n d b i n d i n g o b l i g a t i o n s o f t h e C o m m i s s i o n .
( 5 ) T h e p r o c e e d s o f t h e s a l e o f t h e R e f u n d i n g B o n d s s h a l l b e a p p l i e d b y t h e
T r u s t e e a c c o r d i n g t o t h e w r i t t e n d i r e c t i o n o f t h e C o m m i s s i o n t o t h e r e t i r e m e n t o f t h e
O u t s t a n d i n g B o n d s o r P a r i t y O b l i g a t i o n s f o r t h e r e f u n d i n g o f w h i c h s a i d R e f u n d i n g
B o n d s a r e t o b e i s s u e d . A l l B o n d s o r P a r i t y O b l i g a t i o n s p u r c h a s e d , r e d e e m e d o r r e t i r e d
b y u s e o f f u n d s r e c e i v e d f r o m t h e s a l e o f R e f u n d i n g B o n d s , a n d a l l B o n d s s u r r e n d e r e d t o
t h e T r u s t e e a g a i n s t t h e i s s u a n c e o f R e f u n d i n g B o n d s , s h a l l b e f o r t h w i t h c a n c e l e d a n d
s h a l l n o t b e r e i s s u e d .
S E C T I O N 3 . 0 5 L i m i t a t i o n s o n t h e I s s u a n c e o f O b l i g a t i o n s P a y a b l e f r o m S a l e s T a x
R e v e n u e s ; P a r i t y O b l i g a t i o n s ; S u b o r d i n a t e O b l i g a t i o n s . S u b s e q u e n t t o t h e i s s u a n c e o f t h e 2 0 0 8
B o n d s , t h e C o m m i s s i o n w i l l n o t , s o l o n g a s a n y B o n d s a r e O u t s t a n d i n g , i s s u e a n y o b l i g a t i o n s o r
O H S W e s t 2 6 0 3 7 9 4 7 5 . 8
2 9
1 8 0
securities, howsoever denominated, payable in whole or in part from Sales Tax Revenues except
as set forth below.
(A) Bonds authorized pursuant to Sections 3.01 and 3.02.
(B)
Refunding Bonds authorized pursuant to Section 3.04.
(C) Parity Obligations, provided that the following conditions to the issuance or
incurrence of such Parity Obligations are satisfied:
(1) Such Parity Obligations have been duly and legally authorized by the
Commission for any lawful purpose;
(2) No Event of Default shall have occurred and then be continuing, as
evidenced by the delivery of a Certificate of the Commission to that effect, which
Certificate of the Commission shall be filed with the Trustee;
(3) Such Parity Obligations are being issued or incurred either (i) for purposes
of refunding in compliance with the requirements for the issuance of Refunding Bonds
set forth in Section 3.04 or (ii) the Commission shall have placed on file with the Trustee
a Certificate of the Commission, upon which the Trustee may conclusively rely certifying
(on the basis of calculations made no later than the date of sale or incurrence of such
Parity Obligations, as applicable) that the requirements set forth in Section 3.02(D)
relating to the issuance of an additional Series of Bonds have been satisfied with respect
to such Panty Obligations, which Certificate shall also set forth the computations upon
which such Certificate is based; and
(4) As and to the extent applicable, the Trustee shall be designated as paying
agent or trustee for such Panty Obligations and the Commission shall deliver to the
Trustee a transcript of the proceedings providing for the issuance of such Parity
Obligations (but the Trustee shall not be responsible for the validity or sufficiency of
such proceedings or such Parity Obligations).
(D) Subordinate Obligations that are payable as to principal, premium, interest and
reserve fund requirements, if any, only out of Sales Tax Revenues after the prior payment of all
amounts then required to be paid hereunder from Sales Tax Revenues for principal, premium,
interest and reserve fund requirements, if any, for all Bonds Outstanding, and all Parity
Obligations outstanding, as the same become due and payable, and at the times and in the
amounts as required in this Indenture and in the instrument or instruments pursuant to which any
Parity Obligations were issued or incurred, provided that the following conditions to issuance or
incurrence of such Subordinate Obligations are satisfied:
(1) Such Subordinate Obligations have been duly and legally authorized by
the Commission for any lawful purpose;
(2) No Event of Default shall have occurred and then be continuing, as
evidenced by the delivery to the Trustee of a Certificate of the Commission to that effect;
and
OHS West:260379475.8
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•
181
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( 3 ) A s a n d t o t h e e x t e n t a p p l i c a b l e , t h e T r u s t e e s h a l l b e d e s i g n a t e d a s p a y i n g
a g e n t o r t r u s t e e f o r s u c h S u b o r d i n a t e O b l i g a t i o n s a n d t h e C o m m i s s i o n s h a l l d e l i v e r t o t h e
T r u s t e e a t r a n s c r i p t o f t h e p r o c e e d i n g s p r o v i d i n g f o r t h e i s s u a n c e o f s u c h S u b o r d i n a t e
O b l i g a t i o n s ( b u t t h e T r u s t e e s h a l l n o t b e r e s p o n s i b l e f o r t h e v a l i d i t y o r s u f f i c i e n c y o f
s u c h p r o c e e d i n g s o r s u c h S u b o r d i n a t e O b l i g a t i o n s ) .
N o t w i t h s t a n d i n g t h e f o r e g o i n g , t h e N o t e s a n d t h e c r e d i t a g r e e m e n t s s u p p o r t i n g t h e N o t e s
m a y c o n t i n u e t o b e i s s u e d a n d o u t s t a n d i n g f r o m t i m e t o t i m e u n d e r t h e N o t e s I n d e n t u r e w i t h o u t
c o m p l y i n g w i t h t h e f o r e g o i n g p r o v i s i o n s o f ( D ) .
( E ) T e r m i n a t i o n p a y m e n t s a n d f e e s a n d e x p e n s e s o n I n t e r e s t R a t e S w a p A g r e e m e n t s ,
L i q u i d i t y P r o v i d e r o r C r e d i t P r o v i d e r f e e s a n d e x p e n s e s a n d o t h e r o b l i g a t i o n s t h a t m a y b e
s e c u r e d b y a l i e n a n d c h a r g e o n t h e S a l e s T a x R e v e n u e s s u b o r d i n a t e t o t h e l i e n a n d c h a r g e u p o n
t h e S a l e s T a x R e v e n u e s t h a t s e c u r e s t h e B o n d s , P a r i t y O b l i g a t i o n s a n d p a y m e n t o f p r i n c i p a l o f
a n d i n t e r e s t o n S u b o r d i n a t e O b l i g a t i o n s .
( F ) T h e C o m m i s s i o n a n d t h e T r u s t e e h e r e b y a c k n o w l e d g e t h a t t h e I n i t i a l S w a p s h a v e
b e e n e n t e r e d i n t o b y t h e C o m m i s s i o n a n d t h a t t h e o b l i g a t i o n o f t h e C o m m i s s i o n t o m a k e
p a y m e n t s r e q u i r e d u n d e r t h e I n i t i a l S w a p s ( e x c l u d i n g f e e s a n d e x p e n s e s a n d t e r m i n a t i o n
p a y m e n t s u n d e r t h e I n i t i a l S w a p s ) c o n s t i t u t e s a P a r i t y O b l i g a t i o n h e r e u n d e r . T h e o b l i g a t i o n o f
t h e C o m m i s s i o n t o p a y f e e s , e x p e n s e s a n d t e r m i n a t i o n p a y m e n t s u n d e r t h e I n i t i a l S w a p s i s
s e c u r e d b y a l i e n a n d c h a r g e o n t h e S a l e s T a x R e v e n u e s s u b o r d i n a t e t o t h e l i e n a n d c h a r g e u p o n
t h e S a l e s T a x R e v e n u e s t h a t s e c u r e s t h e B o n d s , P a r i t y O b l i g a t i o n s a n d p a y m e n t o f p r i n c i p a l o f
a n d i n t e r e s t o n S u b o r d i n a t e O b l i g a t i o n s .
S E C T I O N 3 . 0 6 C a l c u l a t i o n o f M a x i m u m A n n u a l D e b t S e r v i c e w i t h R e s p e c t t o
B o n d s a n d P a r i t y O b l i g a t i o n s . F o r p u r p o s e s o f t h i s A r t i c l e I I I , M a x i m u m A n n u a l D e b t S e r v i c e
w i t h r e s p e c t t o B o n d s s h a l l b e d e t e r m i n e d n o l a t e r t h a n t h e d a t e o f d e l i v e r y o f s u c h B o n d s , a n d
n o e a r l i e r t h a n t h e s i x t i e t h ( 6 0 t h ) d a y p r e c e d i n g t h e d a t e o f p r i c i n g o r s a l e o f s u c h B o n d s ,
u t i l i z i n g t h e a s s u m p t i o n s s e t f o r t h i n t h e d e f i n i t i o n o f D e b t S e r v i c e . F o r p u r p o s e s o f t h i s
A r t i c l e I I I , M a x i m u m A n n u a l D e b t S e r v i c e w i t h r e s p e c t t o P a r i t y O b l i g a t i o n s s h a l l b e
d e t e r m i n e d n o l a t e r t h a n t h e d a t e o f i n c u r r e n c e o f s u c h P a r i t y O b l i g a t i o n s u t i l i z i n g t h e
a s s u m p t i o n s s e t f o r t h i n t h e d e f i n i t i o n o f D e b t S e r v i c e ; p r o v i d e d , h o w e v e r , t h a t i f a P a r i t y
O b l i g a t i o n i s c o n t i n g e n t u p o n f u n d s b e i n g p r o v i d e d p u r s u a n t t o s u c h P a r i t y O b l i g a t i o n t o p a y
p r i n c i p a l , o r p u r c h a s e p r i c e o f , o r i n t e r e s t o n a B o n d , s u c h P a r i t y O b l i g a t i o n s s h a l l n o t b e
c o n s i d e r e d o u t s t a n d i n g u n t i l s u c h p a y m e n t i s m a d e t h e r e u n d e r .
S E C T I O N 3 . 0 7 A p p l i c a t i o n o f P r o c e e d s . P r o c e e d s o f e a c h S e r i e s o f B o n d s s h a l l
b e a p p l i e d a s s p e c i f i e d i n t h e S u p p l e m e n t a l I n d e n t u r e p u r s u a n t t o w h i c h s u c h S e r i e s o f B o n d s i s
i s s u e d .
A R T I C L E I V
R E D E M P T I O N , T E N D E R A N D P U R C H A S E O F B O N D S
S E C T I O N 4 . 0 1 T e r m s o f R e d e m p t i o n , T e n d e r a n d P u r c h a s e . E a c h S e r i e s o f B o n d s
m a y b e m a d e s u b j e c t t o r e d e m p t i o n o r m a n d a t o r y o r o p t i o n a l t e n d e r a n d p u r c h a s e p r i o r t o t h e i r
O H S W e s t 2 6 0 3 7 9 4 7 5 . 8
3 1
1 8 2
respective stated maturities, as a whole or in part, at such time or times, upon such terms and
conditions and upon such notice and with such effect as may be provided in the Supplemental
Indenture establishing the terms and provisions of such Series of Bonds.
SECTION 4.02 Notice of Redemption. Unless otherwise specified in a
Supplemental Indenture establishing the terms and provisions of a Series of Bonds, each notice
of redemption shall be mailed by the Trustee, not less than ten (10) nor more than ninety (90)
days prior to the redemption date, to each Holder and each of the Repositories. A copy of such
notice shall also be provided to each of the Notice Parties with respect to Series of Bonds to
which such notice relates. Notice of redemption to the Holders, the Repositories and the
applicable Notice Parties shall be given by first class mail. Each notice of redemption shall state
the date of such notice, the date of issue of the Series of Bonds to which such notice relates, the
redemption date, the Redemption Price, the place or places of redemption (including the name
and appropriate address or addresses of the Trustee), the CUSIP number (if any) of the maturity
or maturities, and, if less than all of any such maturity, the distinctive certificate numbers of the
Bonds of such maturity, if any, to be redeemed and, in the case of Bonds to be redeemed in part
only, the respective portions of the principal amount thereof to be redeemed. Each such notice
shall also state that on said date there will become due and payable on each of said Bonds the
Redemption Price thereof or of said specified portion of the principal amount thereof in the case
of a Bond to be redeemed in part only, together with interest accrued thereon to the date fixed for
redemption, and that from and after such redemption date interest thereon shall cease to accrue,
and shall require that such Bonds be then surrendered at the address or addresses of the Trustee
specified in the redemption notice. Neither the Commission nor the Trustee shall have any
responsibility for any defect in the CUSIP number that appears on any Bond or in any
redemption notice with respect thereto, and any such redemption notice may contain a statement
to the effect that CUSIP numbers have been assigned by an independent service for convenience
of reference and that neither the Commission nor the Trustee shall be liable for any inaccuracy in
such CUSIP numbers.
Failure by the Trustee to give notice to any Notice Party or any one or more of the
Repositories or failure of any Holder, any Notice Party or any Repository to receive notice or
any defect in any such notice shall not affect the sufficiency or validity of the proceedings for
redemption.
With respect to any notice of optional redemption of Bonds delivered pursuant to this
Section 4.02 or any provision of any Supplemental Indenture, unless, upon the giving of such
notice, such Bonds shall be deemed to have been paid within the meaning of Article X hereof,
such notice shall state that such redemption shall be conditional upon the receipt by the Trustee
on or prior to the date fixed for such redemption of amounts sufficient to pay the principal of,
and premium, if any, and interest on, such Bonds to be redeemed, and that if such amounts shall
not have been so received said notice shall be of no force and effect and the Commission shall
not be required to redeem such Bonds. In the event that such notice of redemption contains such
a condition and such amounts are not so received, the redemption shall not be made and the
Trustee shall within a reasonable time thereafter give notice to the Holders to the effect that such
amounts were not so received and such redemption was not made, such notice to be given by the
Trustee in the manner in which the notice of redemption was given.
OHS West:260379475.8
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A n y n o t i c e g i v e n p u r s u a n t t o t h i s S e c t i o n 4 . 0 2 m a y b e r e s c i n d e d b y w r i t t e n n o t i c e g i v e n
t o t h e T r u s t e e b y t h e C o n u n i s s i o n a n d t h e T r u s t e e s h a l l g i v e n o t i c e o f s u c h r e s c i s s i o n a s s o o n
t h e r e a f t e r a s p r a c t i c a b l e i n t h e s a m e m a n n e r , a n d t o t h e s a m e P e r s o n s , a s n o t i c e o f s u c h
r e d e m p t i o n w a s g i v e n p u r s u a n t t o t h i s S e c t i o n 4 . 0 2 .
S E C T I O N 4 . 0 3 P a r t i a l R e d e m p t i o n o f B o n d s . U p o n s u r r e n d e r o f a n y B o n d
r e d e e m e d i n p a r t o n l y , t h e C o m m i s s i o n s h a l l e x e c u t e ( b u t n e e d n o t p r e p a r e ) a n d t h e T r u s t e e s h a l l
a u t h e n t i c a t e a n d d e l i v e r t o t h e H o l d e r t h e r e o f , a t t h e e x p e n s e o f t h e C o m m i s s i o n , a n e w B o n d o r .
B o n d s o f a u t h o r i z e d d e n o m i n a t i o n s , a n d o f t h e s a m e S e r i e s , m a t u r i t y a n d i n t e r e s t r a t e , e q u a l i n
a g g r e g a t e p r i n c i p a l a m o u n t t o t h e u n r e d e e m e d p o r t i o n o f t h e B o n d s u r r e n d e r e d .
S E C T I O N 4 . 0 4 E f f e c t o f R e d e m p t i o n . N o t i c e o f r e d e m p t i o n h a v i n g b e e n d u l y
g i v e n a s a f o r e s a i d , a n d m o n e y s f o r p a y m e n t o f t h e R e d e m p t i o n P r i c e o f , t o g e t h e r w i t h i n t e r e s t
a c c r u e d t o t h e r e d e m p t i o n d a t e o n , t h e B o n d s ( o r p o r t i o n s t h e r e o f ) s o c a l l e d f o r r e d e m p t i o n b e i n g
h e l d b y t h e T r u s t e e , o n t h e r e d e m p t i o n d a t e d e s i g n a t e d i n s u c h n o t i c e , t h e B o n d s ( o r p o r t i o n s
t h e r e o f ) s o c a l l e d f o r r e d e m p t i o n s h a l l b e c o m e d u e a n d p a y a b l e a t t h e R e d e m p t i o n P r i c e
s p e c i f i e d i n s u c h n o t i c e t o g e t h e r w i t h i n t e r e s t a c c r u e d t h e r e o n t o t h e r e d e m p t i o n d a t e , i n t e r e s t o n
t h e B o n d s s o c a l l e d f o r r e d e m p t i o n s h a l l c e a s e t o a c c r u e , s a i d B o n d s ( o r p o r t i o n s t h e r e o f ) s h a l l
c e a s e t o b e e n t i t l e d t o a n y b e n e f i t o r s e c u r i t y u n d e r t h i s I n d e n t u r e a n d t h e H o l d e r s o f s a i d B o n d s
s h a l l h a v e n o r i g h t s i n r e s p e c t t h e r e o f e x c e p t t o r e c e i v e p a y m e n t o f s a i d R e d e m p t i o n P r i c e a n d
a c c r u e d i n t e r e s t t o t h e d a t e f i x e d f o r r e d e m p t i o n f r o m f u n d s h e l d b y t h e T r u s t e e f o r s u c h
p a y m e n t a n d s u c h f u n d s a r e h e r e b y p l e d g e d t o s u c h p a y m e n t . A l l B o n d s r e d e e m e d p u r s u a n t t o
t h e p r o v i s i o n s o f t h i s A r t i c l e s h a l l b e c a n c e l e d u p o n s u r r e n d e r t h e r e o f .
A R T I C L E V
S A L E S T A X R E V E N U E S
S E C T I O N 5 . 0 1 P l e d g e o f R e v e n u e s ; R e v e n u e F u n d .
( A ) A s s e c u r i t y f o r t h e p a y m e n t o f a l l a m o u n t s o w i n g o n t h e B o n d s a n d P a r i t y
O b l i g a t i o n s , t h e r e a r e i r r e v o c a b l y p l e d g e d t o t h e T r u s t e e : ( i ) a l l R e v e n u e s ; a n d ( i i ) a l l a m o u n t s ,
i n c l u d i n g p r o c e e d s o f t h e B o n d s , h e l d o n d e p o s i t i n t h e f u n d s a n d a c c o u n t s e s t a b l i s h e d h e r e u n d e r
( e x c e p t f o r a m o u n t s h e l d i n t h e R e b a t e F u n d , a n y L e t t e r o f C r e d i t A c c o u n t a n d a n y P u r c h a s e
F u n d ) , s u b j e c t t o t h e p r o v i s i o n o f t h i s I n d e n t u r e p e r m i t t i n g t h e a p p l i c a t i o n t h e r e o f f o r t h e
p u r p o s e s a n d o n t h e t e r m s a n d c o n d i t i o n s s e t f o r t h i n t h i s I n d e n t u r e . T h e c o l l a t e r a l i d e n t i f i e d
a b o v e s h a l l i m m e d i a t e l y b e s u b j e c t t o t h i s p l e d g e , a n d t h i s p l e d g e s h a l l c o n s t i t u t e a f i r s t l i e n o n
a n d s e c u r i t y i n t e r e s t i n s u c h c o l l a t e r a l w h i c h s h a l l i m m e d i a t e l y a t t a c h t o t h e c o l l a t e r a l a n d b e
e f f e c t i v e , b i n d i n g a n d e n f o r c e a b l e a g a i n s t t h e C o m m i s s i o n a n d a l l o t h e r s a s s e r t i n g t h e r i g h t s
t h e r e i n , t o t h e e x t e n t s e t f o r t h , a n d i n a c c o r d a n c e w i t h , t h i s I n d e n t u r e i r r e s p e c t i v e o f w h e t h e r
t h o s e p a r t i e s h a v e n o t i c e o f t h i s p l e d g e a n d w i t h o u t t h e n e e d f o r a n y p h y s i c a l d e l i v e r y ,
r e c o r d a t i o n , f i l i n g o r f u r t h e r a c t . T h e p l e d g e o f R e v e n u e s a n d a l l a m o u n t s h e l d o n d e p o s i t i n t h e
f u n d s a n d a c c o u n t s e s t a b l i s h e d h e r e u n d e r ( e x c e p t f o r a m o u n t s h e l d i n t h e R e b a t e F u n d , a n y
L e t t e r o f C r e d i t A c c o u n t a n d a n y P u r c h a s e F u n d ) h e r e i n m a d e s h a l l b e i r r e v o c a b l e u n t i l a l l o f t h e
B o n d s , a l l P a n t y O b l i g a t i o n s a n d a m o u n t s o w e d i n c o n n e c t i o n w i t h t h e B o n d s a n d P a r i t y
O b l i g a t i o n s a r e n o l o n g e r O u t s t a n d i n g .
O H S W e s t : 2 6 0 3 7 9 4 7 5 . 8
3 3
1 8 4
All Bonds and Parity Obligations shall be of equal rank without preference, priority or
distinction of any Bonds and Parity Obligations over any other Bonds and Parity Obligations.
(B) As long as any Bonds are Outstanding or any Panty Obligations remain unpaid,
the Commission hereby assigns and shall cause Sales Tax Revenues to be transmitted by the
State Board of Equalization directly to the Trustee. The Trustee shall forthwith deposit in a trust
fund, designated as the "Revenue Fund,' which fund the Trustee shall establish and maintain, all
Sales Tax Revenues, when and as received by the Trustee. The Sales Tax Revenues shall be
received and held in trust by the Trustee for the benefit of the Holders of the Bonds and the
Parity Obligations and shall be disbursed, allocated and applied solely for the uses and purposes
set forth in this Indenture. Investment income on amounts held by the Trustee hereunder (other
than amounts held in the Rebate Fund or for which particular instructions, such as with respect to
a Project Fund, a Letter of Credit Account or a Purchase Fund, are provided in a Supplemental
Indenture), shall also be deposited in the Revenue Fund. All moneys at any time held in the
Revenue Fund shall be held in trust for the benefit of the Holders of the Bonds and the holders of
Parity Obligations and shall be disbursed, allocated and applied solely for the uses and purposes
set forth in this Indenture.
(C) The Bonds are limited obligations of the Commission and are payable as to both
principal and interest, and any premium upon redemption thereof, exclusively from the Revenues
and other funds pledged hereunder.
SECTION 5.02 Allocation of Sales Tax Revenues.
(A) So long as any Bonds are Outstanding and Parity Obligations, Subordinate
Obligations, and all other amounts payable hereunder remain unpaid, the Trustee shall set aside
in each month following receipt of the Sales Tax Revenues the moneys in the Revenue Fund in
the following respective funds (each of which the Trustee shall establish, maintain and hold in
trust for the benefit of the Holders of the Bonds and, as and to the extent applicable, the holders
of Parity Obligations) in the following amounts, in the following order of priority, the
requirements of each such fund (including the making up of any deficiencies in any such fund
resulting from lack of Revenues sufficient to make any earlier required deposit) at the time of
deposit to be satisfied before any deposit is made to any fund subsequent in priority; provided
that on a parity with such deposits the Trustee may set aside or transfer amounts with respect to
any outstanding Panty Obligations as provided in the proceedings for such Parity Obligations
delivered to the Trustee pursuant to Section 3.05 (which shall be proportionate in the event such
amounts are insufficient to provide for all deposits required as of any date to be made with
respect to the Bonds and such Panty Obligations); provided further that payments on Interest
Rate Swap Agreements that are payable on a parity with the Bonds shall be payable from the
Interest Fund and the required deposits below shall be adjusted to include payments on such
Interest Rate Swap Agreements in accordance with Section 5.10:
(1) Interest Fund. Following receipt of the Sales Tax Revenues in each
month, the Trustee shall set aside in the Interest Fund as soon as practicable in such
month an amount equal to (a) one -sixth of the aggregate half -yearly amount of interest
becoming due and payable on the Outstanding Current Interest Bonds (except for Bonds
constituting Variable Rate Indebtedness which shall be governed by subparagraph (b)
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b e l o w ) d u r i n g t h e n e x t e n s u i n g s i x ( 6 ) m o n t h s ( e x c l u d i n g a n y i n t e r e s t f o r w h i c h t h e r e a r e
m o n e y s d e p o s i t e d i n t h e I n t e r e s t F u n d f r o m t h e p r o c e e d s o f a n y S e r i e s o f B o n d s o r o t h e r
s o u r c e a n d r e s e r v e d a s c a p i t a l i z e d i n t e r e s t t o p a y s u c h i n t e r e s t d u r i n g s a i d n e x t e n s u i n g
s i x ( 6 ) m o n t h s ) , u n t i l t h e r e q u i s i t e h a l f - y e a r l y a m o u n t o f i n t e r e s t o n a l l s u c h O u t s t a n d i n g
C u r r e n t I n t e r e s t B o n d s ( e x c e p t f o r B o n d s c o n s t i t u t i n g V a r i a b l e R a t e I n d e b t e d n e s s w h i c h
s h a l l b e g o v e r n e d b y s u b p a r a g r a p h ( b ) b e l o w ) i s o n d e p o s i t i n s u c h f u n d ; p r o v i d e d t h a t
f r o m t h e d a t e o f d e l i v e r y o f a S e r i e s o f C u r r e n t I n t e r e s t B o n d s u n t i l t h e f i r s t I n t e r e s t
P a y m e n t D a t e w i t h r e s p e c t t o s u c h S e r i e s o f B o n d s t h e a m o u n t s s e t a s i d e i n s u c h f u n d
w i t h r e s p e c t t o s u c h S e r i e s o f B o n d s s h a l l b e s u f f i c i e n t o n a m o n t h l y p r o r a t a b a s i s t o p a y
t h e a g g r e g a t e a m o u n t o f i n t e r e s t b e c o m i n g d u e a n d p a y a b l e o n s a i d I n t e r e s t P a y m e n t
D a t e w i t h r e s p e c t t o s u c h S e r i e s o f B o n d s , p l u s ( b ) t h e a g g r e g a t e a m o u n t o f i n t e r e s t t o
a c c r u e d u r i n g t h a t m o n t h o n O u t s t a n d i n g V a r i a b l e R a t e I n d e b t e d n e s s , c a l c u l a t e d , i f t h e
a c t u a l r a t e o f i n t e r e s t i s n o t k n o w n , a t t h e i n t e r e s t r a t e s p e c i f i e d i n w r i t i n g b y t h e
C o m m i s s i o n , o r i f t h e C o m m i s s i o n s h a l l n o t h a v e s p e c i f i e d a n i n t e r e s t r a t e i n w r i t i n g ,
c a l c u l a t e d a t t h e m a x i m u m i n t e r e s t r a t e b o r n e b y s u c h V a r i a b l e R a t e I n d e b t e d n e s s d u r i n g
t h e m o n t h p r i o r t o t h e m o n t h o f d e p o s i t p l u s o n e h u n d r e d ( 1 0 0 ) b a s i s p o i n t s ( p r o v i d e d ,
h o w e v e r , t h a t t h e a m o u n t o f s u c h d e p o s i t i n t o t h e I n t e r e s t F u n d f o r a n y m o n t h m a y b e
r e d u c e d b y t h e a m o u n t b y w h i c h t h e d e p o s i t i n t h e p r i o r m o n t h e x c e e d e d t h e a c t u a l
a m o u n t o f i n t e r e s t a c c r u e d a n d p a i d d u r i n g t h a t m o n t h o n s a i d O u t s t a n d i n g V a r i a b l e R a t e
I n d e b t e d n e s s a n d p r o v i d e d f u r t h e r t h a t t h e a m o u n t o f s u c h d e p o s i t i n t o t h e I n t e r e s t F u n d
f o r a n y m o n t h s h a l l b e i n c r e a s e d b y t h e a m o u n t b y w h i c h t h e d e p o s i t i n t h e p r i o r m o n t h
w a s l e s s t h a n t h e a c t u a l a m o u n t o f i n t e r e s t a c c r u i n g d u r i n g t h a t m o n t h o n s a i d
O u t s t a n d i n g V a r i a b l e R a t e I n d e b t e d n e s s ) . N o d e p o s i t n e e d b e m a d e i n t o t h e I n t e r e s t
F u n d i f t h e a m o u n t c o n t a i n e d t h e r e i n i s a t l e a s t e q u a l t o t h e i n t e r e s t t o b e c o m e d u e a n d
p a y a b l e o n t h e I n t e r e s t P a y m e n t D a t e s f a l l i n g w i t h i n t h e n e x t s i x ( 6 ) m o n t h s u p o n a l l o f
t h e B o n d s i s s u e d h e r e u n d e r a n d t h e n O u t s t a n d i n g , a n d o n J u n e 1 a n d D e c e m b e r 1 o f e a c h
y e a r a n y e x c e s s a m o u n t s i n t h e I n t e r e s t F u n d n o t n e e d e d t o p a y i n t e r e s t o n s u c h d a t e ( a n d
n o t h e l d t o p a y i n t e r e s t o n B o n d s h a v i n g I n t e r e s t P a y m e n t D a t e s o t h e r t h a n J u n e 1 a n d
D e c e m b e r 1 ) s h a l l b e t r a n s f e r r e d t o t h e C o m m i s s i o n ( b u t e x c l u d i n g , i n e a c h c a s e , a n y
m o n e y s o n d e p o s i t i n t h e I n t e r e s t F u n d f r o m t h e p r o c e e d s o f a n y S e r i e s o f B o n d s o r o t h e r
s o u r c e a n d r e s e r v e d a s c a p i t a l i z e d i n t e r e s t t o p a y i n t e r e s t o n a n y f u t u r e I n t e r e s t P a y m e n t
D a t e s f o l l o w i n g s u c h I n t e r e s t P a y m e n t D a t e s ) . A l l S w a p R e v e n u e s r e c e i v e d w i t h r e s p e c t
t o I n t e r e s t R a t e S w a p A g r e e m e n t s t h a t a r e P a r i t y O b l i g a t i o n s s h a l l b e d e p o s i t e d i n t h e
I n t e r e s t F u n d a n d c r e d i t e d t o t h e a b o v e r e q u i r e d d e p o s i t s .
( 2 ) P r i n c i p a l F u n d ; S i n k i n g A c c o u n t s . F o l l o w i n g r e c e i p t o f t h e S a l e s T a x
R e v e n u e s i n e a c h m o n t h , t h e T r u s t e e s h a l l d e p o s i t i n t h e P r i n c i p a l F u n d a s s o o n a s
p r a c t i c a b l e i n s u c h m o n t h a n a m o u n t e q u a l t o a t l e a s t ( a ) o n e - s i x t h o f t h e a g g r e g a t e
s e m i a n n u a l a m o u n t o f B o n d O b l i g a t i o n b e c o m i n g d u e a n d p a y a b l e o n t h e O u t s t a n d i n g
S e r i a l B o n d s o f a l l S e r i e s h a v i n g s e m i a n n u a l m a t u r i t y d a t e s w i t h i n t h e n e x t s i x ( 6 )
m o n t h s , p l u s ( b ) o n e - t w e l f t h o f t h e a g g r e g a t e y e a r l y a m o u n t o f B o n d O b l i g a t i o n
b e c o m i n g d u e a n d p a y a b l e o n t h e O u t s t a n d i n g S e r i a l B o n d s o f a l l S e r i e s h a v i n g a n n u a l
m a t u r i t y d a t e s w i t h i n t h e n e x t t w e l v e ( 1 2 ) m o n t h s , p l u s ( c ) o n e - s i x t h o f t h e a g g r e g a t e o f
t h e M a n d a t o r y S i n k i n g A c c o u n t P a y m e n t s t o b e p a i d d u r i n g t h e n e x t s i x - m o n t h p e r i o d
i n t o t h e r e s p e c t i v e S i n k i n g A c c o u n t s f o r t h e T e r m B o n d s o f a l l S e r i e s f o r w h i c h S i n k i n g
A c c o u n t s h a v e b e e n c r e a t e d a n d f o r w h i c h s e m i a n n u a l m a n d a t o r y r e d e m p t i o n i s r e q u i r e d
f r o m s a i d S i n k i n g A c c o u n t s , p l u s ( d ) o n e - t w e l f t h o f t h e a g g r e g a t e o f t h e M a n d a t o r y
O H S W e s t : 2 6 0 3 7 4 4 7 5 . 8
3 5
1 8 6
Sinking Account Payments to be paid during the next 12-month period into the respective
Sinking Accounts for the Term Bonds of all Series for which Sinking Accounts shall
have been created and for which annual mandatory redemption is required from such
Sinking Accounts; provided that if the Commission certifies to the Trustee that any
principal payments are expected to be refunded on or prior to their respective due dates or
paid from amounts on deposit in a Bond Reserve Fund that would be in excess of the
Bond Reserve Requirement applicable to such Bond Reserve Fund upon such payment,
no amounts need be set aside towards such principal to be so refunded or paid. All of the
aforesaid deposits made in connection with future Mandatory Sinking Account Payments
shall be made without priority of any payment into any one such Sinking Account over
any other such payment.
In the event that the Sales Tax Revenues shall not be sufficient to make the
required deposits so that moneys in the Principal Fund on any principal or mandatory
redemption date are equal to the amount of Bond Obligation to become due and payable
on the Outstanding Serial Bonds of all Series plus the Bond Obligation amount of and
redemption premium on the Outstanding Term Bonds required to be redeemed or paid at
maturity on such date, then such moneys shall be applied on a Proportionate Basis and in
such proportion as said Serial Bonds and said Term Bonds shall bear to each other, after
first deducting for such purposes from said Tenn Bonds any of said Tenn Bonds required
to be redeemed annually as shall have been redeemed or purchased during the preceding
12-month period and any of said Tenn Bonds required to be redeemed semiannually as
shall have been redeemed or purchased during the six-month period ending on such date
or the immediately preceding six month period. In the event that the Sales Tax Revenues
shall not be sufficient to pay in full all Mandatory Sinking Account Payments required to
be paid at any one time into all such Sinking Accounts, then payments into all such
Sinking Accounts shall be made on a Proportionate Basis, in proportion that the
respective Mandatory Sinking Account Payments required to be made into each Sinking
Account during the then current 12-month period bear to the aggregate of all of the
Mandatory Sinking Account Payments required to be made into all such Sinking
Accounts during such 12-month period.
No deposit need be made into the Principal Fund so long as there shall be in such
fund (i) moneys sufficient to pay the Bond Obligations of all Serial Bonds issued
hereunder and then Outstanding and maturing by their terms within the next twelve (12)
months plus (ii) the aggregate of all Mandatory Sinking Account Payments required to be
made in such 12-month period, but less any amounts deposited into the Principal Fund
during such 12-month period and theretofore paid from the Principal Fund to redeem or
purchase Term Bonds during such 12-month period; provided that if the Commission
certifies to the Trustee that any principal payments are expected to be refunded on or
prior to their respective due dates or paid from amounts on deposit in a Bond. Reserve
Fund that would be in excess of the Bond Reserve Requirement applicable to such Bond
Reserve Fund upon such payment, no amounts need be on deposit with respect to such
principal payments. At the beginning of each Fiscal Year and in any event not later than
June 1 of each year, the Trustee shall request from the Commission a Certificate of the
Commission setting forth the principal payments for which deposits will not be necessary
pursuant to the preceding sentence and the reason therefor. On June 1 of each year or as
OHS West:260379475.8
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soon as practicable thereafter any excess amounts in the Principal Fund not needed to pay
principal on such date (and not held to pay principal on Bonds having principal payment
dates other than June 1) shall be transferred to the Commission.
(3) Bond Reserve Fund. Upon the occurrence of any deficiency in any Bond
Reserve Fund, the Trustee shall make such deposit to such Bond Reserve Fund as is
required pursuant to Section 5.05(D), each such deposit to be made as soon as possible in
each month, until the balance therein is at least equal to the applicable Bond Reserve
Requirement.
(4) Subordinate Obligations Fund. The Trustee shall establish, maintain and
hold in trust a separate fund designated as the "Subordinate Obligations Fund." As long
as any Subordinate Obligations remain unpaid, any Revenues remaining in the Revenue
Fund after the transfers described in (1), (2) and (3) above have been made shall be
transferred on the same Business Day to the Notes Trustee. After the Notes Trustee has
made the required deposit of Revenues under the Notes Indenture, the Notes Trustee shall
transfer any remaining Revenues back to the Trustee.
(5) Fees and Expenses Fund. The Trustee shall establish, maintain and hold
in trust a separate fund designated as the "Fees and Expenses Fund." At the direction of
the Commission, after the transfers described in (1), (2), (3) and (4) above have been
made, the Trustee shall deposit as soon as practicable in each month in the Fees and
Expenses Fund (i) amounts necessary for payment of fees, expenses and similar charges
(including fees, expenses and similar charges relating to any Liquidity Facility or Credit
Enhancement for the Bonds or any Parity Obligations) owing in such month or the
following month by the Commission in connection with the Bonds or any Panty
Obligations and (ii) amounts necessary for payment of fees, expenses and similar charges
owing in such month or the following month by the Commission in connection with
Subordinate Obligations. The Commission shall inform the Trustee of such amounts, in
writing, on or prior to the fast Business Day of each month.
(B) Any Revenues remaining in the Revenue Fund after the foregoing transfers
described in (1), (2), (3), (4) and (5) of subsection (A) above, except as the Commission shall
otherwise direct in writing or as is otherwise provided in a Supplemental Indenture, shall be
transferred to the Commission on the same Business Day or as soon as practicable thereafter.
The Commission may use and apply the Revenues when received by it for any lawful purpose of
the Commission, including the redemption of Bonds upon the terms and conditions set forth in
the Supplemental Indenture relating to such Bonds and the purchase of Bonds as and when and at
such prices as it may determine.
(C) If, five (5) days prior to any principal payment date, Interest Payment Date or
mandatory redemption date, the amounts on deposit in the Revenue Fund, the Interest Fund, the
Principal Fund, including the Sinking Accounts therein, and, as and to the extent not required to
satisfy the Bond Reserve Requirement, any Bond Reserve Fund established in connection with a
Series of Bonds with respect to the payments to be made on such upcoming date are insufficient
to make such payments, the Trustee shall immediately notify the Commission, in writing, of such
deficiency and direct that the Commission transfer the amount of such deficiency to the Trustee
OHS West•260379475.8
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on or prior to such payment date. The Commission hereby covenants and agrees to transfer to
the Trustee from any Revenues in its possession the amount of such deficiency on or prior to the
principal, interest or mandatory redemption date referenced in such notice.
SECTION 5.03 Application of Interest Fund. All amounts in the Interest Fund
shall be used and withdrawn by the Trustee solely for the purposes of: (a) paying interest on the
Bonds as it shall become due and payable (including accrued interest on any Bonds purchased or
redeemed prior to maturity pursuant to this Indenture), or for reimbursing the Credit Provider for
a drawing for such purposes made on Credit Enhancement provided in the form of an
irrevocable, direct -pay letter of credit, and (b) making periodic payments on Interest Rate Swap
Agreements, as provided in Section 5.10.
SECTION 5.04 Application of Principal Fund.
(A) All amounts in the Principal Fund shall be used and withdrawn by the Trustee
solely for the purposes of paying the Bond Obligation of the Bonds when due and payable,
except that all amounts in the Sinking Accounts shall be used and withdrawn by the Trustee
solely to purchase or redeem or pay at maturity Term Bonds, as provided herein, or for
reimbursing the Credit Provider for a drawing for such purposes made on Credit Enhancement
provided in the form of an irrevocable, direct -pay letter of credit.
(B) The Trustee shall establish and maintain within the Principal Fund a separate
account for the Term Bonds of each Series and maturity, designated as the " Sinking
Account," inserting therein the Series and maturity designation of such Bonds. On or before the
Business Day prior to any date upon which a Mandatory Sinking Account Payment is due, the
Trustee shall transfer the amount of such Mandatory Sinking Account Payment (being the
principal thereof, in the case of Current Interest Bonds, and the Accreted Value, in the case of
Capital Appreciation Bonds) from the Principal Fund to the applicable Sinking Account. With
respect to each Sinking Account, on each Mandatory Sinking Account Payment date established
for such Sinking Account, the Trustee shall apply the Mandatory Sinking Account Payment
required on that date to the redemption (or payment at maturity, as the case may be) of Term
Bonds of such Series and maturity for which such Sinking Account was established, in the
manner provided in this Indenture or the Supplemental Indenture pursuant to which such Series
of Bonds was created; provided that, at any time prior to giving such notice of such redemption,
the Trustee shall, upon receipt of a Request of the Commission, apply moneys in such Sinking
Account to the purchase of Term Bonds of such Series and maturity at public or private sale, as
and when and at such prices (including brokerage and other charges, but excluding accrued
interest, which is payable from the Interest Fund) as is directed by the Commission, except that
the purchase price (excluding accrued interest, in the case of Current Interest Bonds) shall not
exceed the principal amount or Accreted Value thereof. If, during the 12-month period (or six-
month period with respect to Bonds having semi-annual Mandatory Sinking Account Payments)
immediately preceding said Mandatory Sinking Account Payment date, the Trustee has
purchased Term Bonds of such Series and maturity with moneys in such Sinking Account, or,
during said period and prior to giving said notice of redemption, the Commission has deposited
Term Bonds of such Series and maturity with the Trustee, or Term Bonds of such Series and
maturity were at any time purchased or redeemed by the Trustee from the Redemption Fund and
allocable to said Mandatory Sinking Account Payment, such Term Bonds so purchased or
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"
d e p o s i t e d o r r e d e e m e d s h a l l b e a p p l i e d , t o t h e e x t e n t o f t h e f u l l p r i n c i p a l a m o u n t t h e r e o f , t o
r e d u c e s a i d M a n d a t o r y S i n k i n g A c c o u n t P a y m e n t . A l l T e r m B o n d s p u r c h a s e d o r d e p o s i t e d
p u r s u a n t t o t h i s s u b s e c t i o n s h a l l b e c a n c e l l e d b y t h e T r u s t e e a n d d e s t r o y e d b y t h e T r u s t e e a n d a
c e r t i f i c a t e o f d e s t r u c t i o n s h a l l b e d e l i v e r e d t o t h e C o m m i s s i o n b y t h e T r u s t e e . A n y a m o u n t s
r e m a i n i n g i n a S i n k i n g A c c o u n t o n J u n e 1 o f e a c h y e a r f o l l o w i n g t h e r e d e m p t i o n a s o f s u c h d a t e
o f t h e T e r m B o n d s f o r w h i c h s u c h a c c o u n t w a s e s t a b l i s h e d s h a l l b e w i t h d r a w n b y t h e T r u s t e e
a n d t r a n s f e r r e d a s s o o n a s p r a c t i c a b l e t o t h e C o m m i s s i o n t o b e u s e d f o r a n y l a w f u l p u r p o s e . A l l
T e r m B o n d s p u r c h a s e d f r o m a S i n k i n g A c c o u n t o r d e p o s i t e d b y t h e C o m m i s s i o n w i t h t h e
T r u s t e e i n a t w e l v e m o n t h p e r i o d e n d i n g M a y 3 1 ( o r i n a s i x - m o n t h p e r i o d e n d i n g M a y 3 1 o r
S e p t e m b e r 3 0 w i t h r e s p e c t t o B o n d s h a v i n g s e m i - a n n u a l M a n d a t o r y S i n k i n g A c c o u n t P a y m e n t s )
a n d p r i o r t o t h e g i v i n g o f n o t i c e b y t h e T r u s t e e f o r r e d e m p t i o n f r o m M a n d a t o r y S i n k i n g A c c o u n t
P a y m e n t s f o r s u c h p e r i o d s h a l l b e a l l o c a t e d f i r s t t o t h e n e x t s u c c e e d i n g M a n d a t o r y S i n k i n g
A c c o u n t P a y m e n t f o r s u c h S e r i e s a n d m a t u r i t y o f T e r m B o n d s , i f a n y , o c c u r r i n g o n t h e n e x t J u n e
1 o r D e c e m b e r 1 , t h e n a s a c r e d i t a g a i n s t s u c h f u t u r e M a n d a t o r y S i n k i n g A c c o u n t P a y m e n t s f o r
s u c h S e r i e s a n d m a t u r i t y o f T e r m B o n d s a s m a y b e s p e c i f i e d i n a R e q u e s t o f t h e C o m m i s s i o n .
A l l T e r m B o n d s r e d e e m e d b y t h e T r u s t e e f r o m t h e R e d e m p t i o n F u n d s h a l l b e c r e d i t e d t o s u c h
f u t u r e M a n d a t o r y S i n k i n g A c c o u n t P a y m e n t s f o r s u c h S e r i e s a n d m a t u r i t y o f T e r m B o n d s a s
m a y b e s p e c i f i e d i n a R e q u e s t o f t h e C o m m i s s i o n .
S E C T I O N 5 . 0 5 E s t a b l i s h m e n t , F u n d i n g a n d A p p l i c a t i o n o f B o n d R e s e r v e F u n d s .
T h e C o m m i s s i o n m a y a t i t s s o l e d i s c r e t i o n a t t h e t i m e o f i s s u a n c e o f a n y S e r i e s o f B o n d s o r a t
a n y t i m e t h e r e a f t e r b y S u p p l e m e n t a l I n d e n t u r e p r o v i d e f o r t h e e s t a b l i s h m e n t o f a B o n d R e s e r v e
F u n d a s a d d i t i o n a l s e c u r i t y f o r a S e r i e s o f B o n d s . A n y B o n d R e s e r v e F u n d s o e s t a b l i s h e d b y t h e
C o m m i s s i o n s h a l l b e a v a i l a b l e t o s e c u r e o n e o r m o r e S e r i e s o f B o n d s a s t h e C o m m i s s i o n s h a l l
d e t e r m i n e a n d s h a l l s p e c i f y i n t h e S u p p l e m e n t a l I n d e n t u r e e s t a b l i s h i n g s u c h B o n d R e s e r v e F u n d .
A n y B o n d R e s e r v e F u n d e s t a b l i s h e d b y t h e C o m m i s s i o n s h a l l b e h e l d b y t h e T r u s t e e a n d s h a l l
c o m p l y w i t h t h e r e q u i r e m e n t s s e t f o r t h i n t h i s S e c t i o n 5 . 0 5 .
( A ) I n l i e u o f m a k i n g t h e B o n d R e s e r v e R e q u i r e m e n t d e p o s i t a p p l i c a b l e t o o n e o r
m o r e S e r i e s o f B o n d s i n c a s h o r i n r e p l a c e m e n t o f m o n e y s t h e n o n d e p o s i t i n a n y B o n d R e s e r v e
F u n d ( w h i c h s h a l l b e t r a n s f e r r e d b y t h e T r u s t e e t o t h e C o m m i s s i o n ) , o r i n s u b s t i t u t i o n o f a n y
R e s e r v e F a c i l i t y c o m p r i s i n g p a r t o f t h e B o n d R e s e r v e R e q u i r e m e n t r e l a t i n g t o o n e o r m o r e
S e r i e s o f B o n d s , t h e C o m m i s s i o n m a y , a t a n y t i m e a n d f r o m t i m e t o t i m e , d e l i v e r t o t h e T r u s t e e
a n i r r e v o c a b l e l e t t e r o f c r e d i t i s s u e d b y a f m a n c i a l i n s t i t u t i o n h a v i n g u n s e c u r e d d e b t o b l i g a t i o n s
r a t e d a t t h e t i m e o f d e l i v e r y o f s u c h l e t t e r o f c r e d i t i n o n e o f t h e t w o h i g h e s t R a t i n g C a t e g o r i e s o f
b o t h M o o d y ' s a n d S t a n d a r d & P o o r ' s , i n a n a m o u n t , w h i c h , t o g e t h e r w i t h c a s h , I n v e s t m e n t
S e c u r i t i e s o r o t h e r R e s e r v e F a c i l i t i e s , a s d e s c r i b e d i n S e c t i o n 5 . 0 5 ( B ) , t h e n o n d e p o s i t i n s u c h
B o n d R e s e r v e F u n d , w i l l e q u a l t h e B o n d R e s e r v e R e q u i r e m e n t r e l a t i n g t o t h e B o n d s t o w h i c h
s u c h B o n d R e s e r v e F u n d r e l a t e s . S u c h l e t t e r o f c r e d i t s h a l l h a v e a t e r m n o l e s s t h a n t h r e e ( 3 )
y e a r s o r , i f l e s s , t h e f i n a l m a t u r i t y o f t h e B o n d s i n c o n n e c t i o n w i t h w h i c h s u c h l e t t e r o f c r e d i t
w a s o b t a i n e d a n d s h a l l p r o v i d e b y i t s t e r m s t h a t i t m a y b e d r a w n u p o n a s p r o v i d e d i n t h i s S e c t i o n
5 . 0 5 . A t l e a s t o n e ( 1 ) y e a r p r i o r t o t h e s t a t e d e x p i r a t i o n o f s u c h l e t t e r o f c r e d i t , t h e C o m m i s s i o n
s h a l l e i t h e r ( i ) d e l i v e r a r e p l a c e m e n t l e t t e r o f c r e d i t , ( i i ) d e l i v e r a n e x t e n s i o n o f t h e l e t t e r o f c r e d i t
f o r a t l e a s t o n e ( 1 ) a d d i t i o n a l y e a r o r , i f l e s s , t h e f m a l m a t u r i t y o f t h e B o n d s i n c o n n e c t i o n w i t h
w h i c h s u c h l e t t e r o f c r e d i t w a s o b t a i n e d , o r ( i i i ) d e l i v e r t o t h e T r u s t e e a R e s e r v e F a c i l i t y
s a t i s f y i n g t h e r e q u i r e m e n t s o f S e c t i o n 5 . 0 5 ( B ) . U p o n d e l i v e r y o f s u c h r e p l a c e m e n t R e s e r v e
F a c i l i t y , t h e T r u s t e e s h a l l d e l i v e r t h e t h e n - e f f e c t i v e l e t t e r o f c r e d i t t o o r u p o n t h e o r d e r o f t h e
O H S w e s t 2 6 0 3 7 9 4 7 5 . e
3 9
1 9 0
Commission. If the Commission shall fail to deposit a replacement Reserve Facility with the
Trustee; the Commission shall immediately commence to make monthly deposits with the
Trustee so that an amount equal to the Bond Reserve Requirement relating to the Bonds to which
such Bond Reserve Fund relates will be on deposit in such Bond Reserve Fund no later than the
stated expiration date of the letter of credit. If an amount equal to the Bond Reserve
Requirement relating to the Bonds to which such Bond Reserve Fund relates as of the date
following the expiration of the letter of credit is not on deposit in such Bond Reserve Fund one
(1) week prior to the expiration date of the letter of credit (excluding from such determination the
letter of credit), the Trustee shall draw on the letter of credit to fund the deficiency resulting
therefrom in such Bond Reserve Fund.
(B) In lieu of making a Bond Reserve Requirement deposit in cash or in replacement
of moneys then on deposit in a Bond Reserve Fund (which shall be transferred by the Trustee to
the Commission) or in substitution of any Reserve Facility comprising part of a Bond Reserve
Requirement for any Bonds, the Commission may, at any time and from time to time, deliver to
the Trustee a surety bond or an insurance policy securing an amount which, together with
moneys, Investment Securities, or other Reserve Facilities then on deposit in a Bond Reserve
Fund, is no less than the Bond Reserve Requirement relating to the Bonds to which such Bond
Reserve Fund relates. Such surety bond or insurance policy shall be issued by an insurance
company whose unsecured debt obligations (or for which obligations secured by such insurance
company's insurance policies) are rated at the time of delivery in one of the two highest Rating
Categories of both Moody's and Standard & Poor's. Such surety bond or insurance policy shall
have a term of no less than the fmal maturity of the Bonds in connection with which such surety
bond or insurance policy is obtained. In the event that such surety bond or insurance policy for
any reason lapses or expires, the Commission shall immediately implement (i) or (iii) of the
preceding paragraph or make twelve equal monthly deposits to such Bond Reserve Fund so that
the Bond Reserve Fund is replenished to the required level after a year.
(C) Subject to Section 5.05(E), all amounts in any Bond Reserve Fund (including all
amounts which may be obtained from a Reserve Facility on deposit in such Bond Reserve Fund)
shall be used and withdrawn by the Trustee, as hereinafter provided: (i) for the purpose of
making up any deficiency in the Interest Fund or the Principal Fund relating to the Bonds of the
Series to which such Bond Reserve Fund relates; or (ii) together with any other moneys available
therefor, (x) for the payment or redemption of all Bonds then Outstanding of the Series to which
such Bond Reserve Fund relates, (y) for the defeasance or redemption of all or a portion of the
Bonds then Outstanding of the Series to which such Bond Reserve Fund relates, provided,
however, that if funds on deposit in any Bond Reserve Fund are applied to the defeasance or
redemption of a portion of the Series of Bonds to which such Bond Reserve Fund relates, the
amount on deposit in the Bond Reserve Fund immediately subsequent to such partial defeasance
or redemption shall equal the Bond Reserve Requirement applicable to all Bonds of such Series
Outstanding immediately subsequent to such partial defeasance or redemption, or (z) for the
payment of the final principal and interest payment of the Bonds . of such Series. Unless
otherwise directed in a Supplemental Indenture establishing the terms and provisions of a Series
of Bonds, the Trustee shall apply amounts held in cash or Investment Securities in any Bond
Reserve Fund prior to applying amounts held in the form of Reserve Facilities in any Bond
Reserve Fund, and if there is more than one Reserve Facility being held on deposit in any Bond
Reserve Fund, shall, on a pro rata basis with respect to the portion of a Bond Reserve Fund held
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i n t h e f o r m o f a R e s e r v e F a c i l i t y ( c a l c u l a t e d b y r e f e r e n c e t o t h e m a x i m u m a m o u n t o f s u c h
R e s e r v e F a c i l i t y ) , d r a w u n d e r e a c h R e s e r v e F a c i l i t y i s s u e d w i t h r e s p e c t t o s u c h B o n d R e s e r v e
F u n d , i n a t i m e l y m a n n e r a n d p u r s u a n t t o t h e t e r m s o f s u c h R e s e r v e F a c i l i t y t o t h e e x t e n t
n e c e s s a r y i n o r d e r t o o b t a i n s u f f i c i e n t f u n d s o n o r p r i o r t o t h e d a t e s u c h f u n d s a r e n e e d e d t o p a y
t h e B o n d O b l i g a t i o n o f , M a n d a t o r y S i n k i n g A c c o u n t P a y m e n t s w i t h r e s p e c t t o , a n d i n t e r e s t o n
t h e B o n d s o f t h e S e r i e s t o w h i c h s u c h B o n d R e s e r v e F u n d r e l a t e s w h e n d u e . I n t h e e v e n t t h a t t h e
T r u s t e e h a s n o t i c e t h a t a n y p a y m e n t o f p r i n c i p a l o f o r i n t e r e s t o n a B o n d h a s b e e n r e c o v e r e d
f r o m a H o l d e r p u r s u a n t t o t h e U n i t e d S t a t e s B a n k r u p t c y C o d e b y a t r u s t e e i n b a n k r u p t c y i n
a c c o r d a n c e w i t h t h e f i n a l , n o n a p p e a l a b l e o r d e r o f a c o u r t h a v i n g c o m p e t e n t j u r i s d i c t i o n , t h e
T r u s t e e , p u r s u a n t t o t h e t e r m s o f , a n d i f s o p r o v i d e d b y , t h e t e r n s o f t h e R e s e r v e F a c i l i t y , i f a n y ,
s e c u r i n g t h e B o n d s o f s u c h S e r i e s , s h a l l s o n o t i f y t h e i s s u e r t h e r e o f a n d d r a w o n s u c h R e s e r v e
F a c i l i t y t o t h e l e s s e r o f t h e e x t e n t r e q u i r e d o r t h e m a x i m u m a m o u n t o f s u c h R e s e r v e F a c i l i t y i n
o r d e r t o p a y t o s u c h H o l d e r s t h e p r i n c i p a l a n d i n t e r e s t s o r e c o v e r e d .
( D ) T h e T r u s t e e s h a l l n o t i f y t h e C o m m i s s i o n o f a n y d e f i c i e n c y i n a n y B o n d R e s e r v e
F u n d ( i ) d u e t o a w i t h d r a w a l f r o m s u c h B o n d R e s e r v e F u n d f o r p u r p o s e s o f m a k i n g u p a n y
d e f i c i e n c y i n t h e I n t e r e s t F u n d o r t h e P r i n c i p a l F u n d r e l a t i n g t o t h e B o n d s o f t h e S e r i e s t o w h i c h
s u c h B o n d R e s e r v e F u n d r e l a t e s o r ( i i ) r e s u l t i n g f r o m a v a l u a t i o n o f I n v e s t m e n t S e c u r i t i e s h e l d
o n d e p o s i t i n s u c h B o n d R e s e r v e F u n d p u r s u a n t t o S e c t i o n 5 . 1 1 a n d s h a l l r e q u e s t t h a t t h e
C o m m i s s i o n r e p l e n i s h s u c h d e f i c i e n c y o r r e p a y a n y a n d a l l o b l i g a t i o n s d u e a n d p a y a b l e u n d e r
t h e t e r m s o f a n y R e s e r v e F a c i l i t y c o m p r i s i n g p a r t o f a n y B o n d R e s e r v e R e q u i r e m e n t . U p o n
r e c e i p t o f s u c h n o t i f i c a t i o n f r o m t h e T r u s t e e , t h e C o m m i s s i o n s h a l l i n s t r u c t t h e T r u s t e e t o
c o m m e n c e s e t t i n g a s i d e i n e a c h m o n t h f o l l o w i n g r e c e i p t o f S a l e s T a x R e v e n u e s f o r d e p o s i t i n
t h e a p p l i c a b l e B o n d R e s e r v e F u n d a n a m o u n t e q u a l t o o n e - t w e l f t h ( 1 / 1 2 t h ) o f t h e a g g r e g a t e
a m o u n t o f e a c h u n r e p l e n i s h e d p r i o r w i t h d r a w a l f r o m s u c h B o n d R e s e r v e F u n d o r d e c r e a s e
r e s u l t i n g f r o m a v a l u a t i o n p u r s u a n t t o S e c t i o n 5 . 1 1 a n d s h a l l f u r t h e r i n s t r u c t t h e T r u s t e e t o
t r a n s f e r t o e a c h R e s e r v e F a c i l i t y P r o v i d e r p r o v i d i n g a R e s e r v e F a c i l i t y s a t i s f y i n g a p o r t i o n o f t h e
B o n d R e s e r v e R e q u i r e m e n t r e l a t i n g t o t h e B o n d s o f t h e S e r i e s t o w h i c h s u c h B o n d R e s e r v e F u n d
r e l a t e s , a n a m o u n t e q u a l t o o n e - t w e l f t h ( 1 / 1 2 t h ) o f t h e a g g r e g a t e a m o u n t o f a n y u n r e p l e n i s h e d
p r i o r w i t h d r a w a l o n s u c h R e s e r v e F a c i l i t y , s u c h a m o u n t t o b e t r a n s f e r r e d b y t h e T r u s t e e a s
p r o m p t l y a s p o s s i b l e a f t e r r e c e i p t o f t h e S a l e s T a x R e v e n u e s e a c h m o n t h , c o m m e n c i n g w i t h t h e
m o n t h f o l l o w i n g t h e C o m m i s s i o n ' s r e c e i p t o f n o t i f i c a t i o n f r o m t h e T r u s t e e o f w i t h d r a w a l o r
d e c r e a s e r e s u l t i n g f r o m a v a l u a t i o n , a s a p p l i c a b l e , u n t i l t h e b a l a n c e o n d e p o s i t i n s u c h B o n d
R e s e r v e F u n d i s a t l e a s t e q u a l t o t h e B o n d R e s e r v e R e q u i r e m e n t r e l a t i n g t o t h e B o n d s o f t h e
S e r i e s t o w h i c h s u c h B o n d R e s e r v e F u n d r e l a t e s .
( E ) U n l e s s t h e C o m m i s s i o n s h a l l o t h e r w i s e d i r e c t i n w r i t i n g , a n y a m o u n t s i n a n y
B o n d R e s e r v e F u n d i n e x c e s s o f t h e B o n d R e s e r v e R e q u i r e m e n t r e l a t i n g t o t h e B o n d s o f t h e
S e r i e s t o w h i c h s u c h B o n d R e s e r v e F u n d r e l a t e s s h a l l b e t r a n s f e r r e d b y t h e T r u s t e e t o t h e
C o m m i s s i o n o n t h e B u s i n e s s D a y f o l l o w i n g J u n e 1 o f e a c h y e a r , p r o v i d e d t h a t s u c h a m o u n t s
s h a l l b e t r a n s f e r r e d o n l y f r o m t h e p o r t i o n o f s u c h B o n d R e s e r v e F u n d h e l d i n t h e f o r m o f c a s h o r
I n v e s t m e n t S e c u r i t i e s . I n a d d i t i o n , a m o u n t s o n d e p o s i t i n a n y B o n d R e s e r v e F u n d s h a l l b e
t r a n s f e r r e d b y t h e T r u s t e e t o t h e C o m m i s s i o n u p o n t h e d e f e a s a n c e , r e t i r e m e n t o r r e f u n d i n g o f
B o n d s o f t h e S e r i e s t o w h i c h s u c h B o n d R e s e r v e F u n d r e l a t e s o r u p o n t h e r e p l a c e m e n t o f c a s h o n
d e p o s i t i n s u c h B o n d R e s e r v e F u n d w i t h o n e o r m o r e R e s e r v e F a c i l i t i e s i n a c c o r d a n c e w i t h
S e c t i o n 5 . 0 5 ( A ) o r S e c t i o n 5 . 0 5 ( B ) . T h e B o n d R e s e r v e R e q u i r e m e n t s h a l l o n l y b e c a l c u l a t e d
O H S W e s t : 2 6 0 3 7 9 4 7 5 . 8
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upon the issuance or retirement of a Series of Bonds and upon the defeasance of all or a portion
of a Series of Bonds.
SECTION 5.06 Application of Subordinate Obligations Fund. All moneys in the
Subordinate Obligations Fund shall be applied to the payment of principal of and interest on
Subordinate Obligations in.accordance with Section 5.02(A)(4).
SECTION 5.07 Application of Fees and Expenses Fund. All amounts in the Fees
and Expenses Fund shall be used and withdrawn by the Trustee solely for the purpose of paying
fees, expenses and similar charges owed by the Commission in connection with the Bonds or any
Parity Obligations or Subordinate Obligations as such amounts shall become due and payable.
SECTION 5.08 Application of Redemption Fund. The Trustee shall establish,
maintain and hold in trust a special fund designated as the "Redemption Fund." All moneys
deposited by the Commission with the Trustee for the purpose of optionally redeeming Bonds of
any Series shall, unless otherwise directed by the Commission, be deposited in the Redemption
Fund. All amounts deposited in the Redemption Fund shall be used and withdrawn by the
Trustee solely for the purpose of redeeming Bonds of such Series and maturity as shall be.
specified by the Commission in a Request to the Trustee, in the manner, at the times and upon
the terms and conditions specified in the Supplemental Indenture pursuant to which the Series of
Bonds was created; provided that, at any time prior to giving such notice of redemption, the
Trustee shall, upon receipt of a Request of the Commission, apply such amounts to the purchase
of Bonds at public or private sale, as and when and at such prices (including brokerage and other
charges, but excluding, in the case of Current Interest Bonds, accrued interest, which is payable
from the Interest Fund) as is directed by the Commission, except that the purchase price
(exclusive of any accrued interest) may not exceed the Redemption Price or Accreted Value then
applicable to such Bonds. All Term Bonds purchased or redeemed from the Redemption Fund
shall be allocated to Mandatory Sinking Account Payments applicable to such Series and
maturity of Term Bonds as may be specified in a Request of the Commission.
SECTION 5.09 Rebate Fund.
(A) Upon receipt of funds to be applied to the Rebate Requirement, the Trustee shall
establish and maintain a fund separate from any other fund established and maintained hereunder
designated as the Rebate Fund. Within the Rebate Fund, the Trustee shall maintain such
accounts as shalt be necessary in order to comply with the terms and requirements of each Tax
Certificate as directed in writing by the Commission. Subject to the transfer provisions provided
in paragraph (C) below, all money at any time deposited in the Rebate Fund shall be held by the
Trustee in trust, to the extent required to satisfy the Rebate Requirement, for payment to the
federal government of the United States of America, and neither the Trustee nor any Holder nor
any other Person shall have any rights in or claim to such money. All amounts deposited into or
on deposit in the Rebate Fund shall be governed by this Indenture and by the applicable the Tax
Certificates. The Commission hereby covenants to comply with the directions contained in each
Tax Certificate and the Trustee hereby covenants to comply with all written instructions of the
Commission delivered to the Trustee pursuant to each Tax Certificate (which instructions shall
state the actual amounts to be deposited in or withdrawn from the Rebate Fund and shall not
require the Trustee to make any calculations with respect thereto). The Trustee shall be deemed
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c o n c l u s i v e l y t o h a v e c o m p l i e d w i t h t h e p r o v i s i o n s o f t h i s S e c t i o n 5 . 0 9 ( A ) i f i t f o l l o w s s u c h
i n s t r u c t i o n s o f t h e C o m m i s s i o n , a n d t h e T r u s t e e s h a l l h a v e n o l i a b i l i t y o r r e s p o n s i b i l i t y t o
e n f o r c e c o m p l i a n c e b y t h e C o m m i s s i o n w i t h t h e t e r m s o f a n y T a x C e r t i f i c a t e n o r t o m a k e
c o m p u t a t i o n s i n c o n n e c t i o n " t h e r e w i t h .
( B ) P u r s u a n t t o e a c h T a x C e r t i f i c a t e , a n a m o u n t s h a l l b e d e p o s i t e d i n t h e R e b a t e F u n d
b y t h e C o m m i s s i o n s o t h a t t h e b a l a n c e o f t h e a m o u n t o n d e p o s i t t h e r e t o s h a l l b e e q u a l t o t h e
R e b a t e R e q u i r e m e n t a p p l i c a b l e t o t h e S e r i e s o f B o n d s t o w h i c h s u c h T a x C e r t i f i c a t e r e l a t e s .
C o m p u t a t i o n s o f e a c h R e b a t e R e q u i r e m e n t s h a l l b e f u r n i s h e d b y o r o n b e h a l f o f t h e C o m m i s s i o n
t o t h e T r u s t e e i n a c c o r d a n c e w i t h t h e a p p l i c a b l e T a x C e r t i f i c a t e .
( C ) T h e T r u s t e e s h a l l i n v e s t a l l a m o u n t s h e l d i n t h e R e b a t e F u n d , p u r s u a n t t o w r i t t e n
i n s t r u c t i o n s o f t h e C o m m i s s i o n , i n I n v e s t m e n t S e c u r i t i e s , s u b j e c t t o t h e r e s t r i c t i o n s s e t f o r t h i n
t h e a p p l i c a b l e T a x C e r t i f i c a t e . M o n e y s h a l l n o t b e t r a n s f e r r e d f r o m t h e R e b a t e F u n d e x c e p t a s
p r o v i d e d i n p a r a g r a p h ( D ) b e l o w .
( D ) U p o n r e c e i p t o f R e b a t e I n s t r u c t i o n s , t h e T r u s t e e s h a l l r e m i t p a r t o r a l l o f t h e
b a l a n c e s i n t h e R e b a t e F u n d t o t h e U n i t e d S t a t e s o f A m e r i c a , a s s o d i r e c t e d . I n a d d i t i o n , i f t h e
R e b a t e I n s t r u c t i o n s s o d i r e c t , t h e T r u s t e e w i l l d e p o s i t m o n e y s i n t o o r t r a n s f e r m o n e y s o u t o f t h e
R e b a t e F u n d f r o m o r i n t o s u c h a c c o u n t s o r f u n d s a s d i r e c t e d b y t h e R e b a t e I n s t r u c t i o n s . A n y
f u n d s r e m a i n i n g i n t h e R e b a t e F u n d a f t e r r e d e m p t i o n a n d p a y m e n t o f a l l o f a S e r i e s o f B o n d s
a n d p a y m e n t a n d s a t i s f a c t i o n o f a n y R e b a t e R e q u i r e m e n t a p p l i c a b l e t o s u c h S e r i e s o f B o n d s ,
s h a l l b e w i t h d r a w n a n d r e m i t t e d t o t h e C o m m i s s i o n i n a c c o r d a n c e w i t h a R e q u e s t o f t h e
C o m m i s s i o n .
( E ) N o t w i t h s t a n d i n g a n y o t h e r p r o v i s i o n o f t h e I n d e n t u r e , i n c l u d i n g i n p a r t i c u l a r
A r t i c l e X t h e r e o f , t h e o b l i g a t i o n t o r e m i t t h e R e b a t e R e q u i r e m e n t a p p l i c a b l e t o e a c h S e r i e s o f
B o n d s t o t h e f e d e r a l g o v e r n m e n t o f t h e U n i t e d S t a t e s o f A m e r i c a a n d t o c o m p l y w i t h a l l o t h e r
r e q u i r e m e n t s o f t h i s S e c t i o n a n d e a c h T a x C e r t i f i c a t e s h a l l s u r v i v e t h e d e f e a s a n c e o r p a y m e n t i n
f u l l o f t h e B o n d s .
S E C T I O N 5 . 1 0 P a y m e n t P r o v i s i o n s A p p l i c a b l e t o I n t e r e s t R a t e S w a p A g r e e m e n t s .
T h e C o m m i s s i o n a n d t h e T r u s t e e h e r e b y a c k n o w l e d g e t h a t t h e I n i t i a l S w a p s h a v e b e e n e n t e r e d
i n t o b y t h e C o m m i s s i o n , t h a t t h e o b l i g a t i o n o f t h e C o m m i s s i o n t o m a k e p a y m e n t s r e q u i r e d u n d e r
t h e I n i t i a l S w a p s ( e x c l u d i n g f e e s a n d e x p e n s e s a n d t e r m i n a t i o n p a y m e n t s u n d e r t h e I n i t i a l
S w a p s ) c o n s t i t u t e s a P a r i t y O b l i g a t i o n h e r e u n d e r a n d s h a l l b e p a y a b l e f r o m t h e I n t e r e s t F u n d ,
a n d t h a t t h e a m o u n t s r e c e i v e d b y t h e C o m m i s s i o n , i f a n y , p u r s u a n t t o s u c h I n t e r e s t R a t e S w a p
A g r e e m e n t s h a l l b e a p p l i e d t o t h e d e p o s i t s r e q u i r e d h e r e u n d e r . I n t h e e v e n t t h e C o m m i s s i o n
s h a l l e n t e r i n t o a n I n t e r e s t R a t e S w a p A g r e e m e n t i n c o n n e c t i o n w i t h a S e r i e s o f B o n d s o t h e r t h a n
t h e I n i t i a l S w a p s , t h e a m o u n t s r e c e i v e d b y t h e C o m m i s s i o n , i f a n y , p u r s u a n t t o s u c h I n t e r e s t R a t e
S w a p A g r e e m e n t s h a l l a l s o b e a p p l i e d t o t h e d e p o s i t s r e q u i r e d h e r e u n d e r . I f t h e C o m m i s s i o n s o
d e s i g n a t e s i n a S u p p l e m e n t a l I n d e n t u r e e s t a b l i s h i n g t h e t e r m s a n d p r o v i s i o n s o f s u c h S e r i e s o f
B o n d s ( o r i f s u c h I n t e r e s t R a t e S w a p A g r e e m e n t i s e n t e r e d i n t o s u b s e q u e n t t o t h e i s s u a n c e o f
s u c h S e r i e s o f B o n d s , i f t h e C o m m i s s i o n s o d e s i g n a t e s i n a C e r t i f i c a t e o f t h e C o m m i s s i o n
d e l i v e r e d t o t h e T r u s t e e c o n c u r r e n t l y w i t h t h e e x e c u t i o n o f s u c h I n t e r e s t R a t e S w a p A g r e e m e n t ) ,
a m o u n t s p a y a b l e u n d e r s u c h I n t e r e s t R a t e S w a p A g r e e m e n t ( e x c l u d i n g t e r m i n a t i o n p a y m e n t s
a n d p a y m e n t s o f f e e s a n d e x p e n s e s i n c u r r e d i n c o n n e c t i o n w i t h I n t e r e s t R a t e S w a p A g r e e m e n t s
O H S W e s t : 2 6 0 3 7 9 4 7 5 . S
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1 9 4
which shall in all cases be payable from, and secured by, Sales Tax Revenues on a subordinate
basis to Bonds, Parity Obligations and payment of principal of and interest on Subordinate
Obligations) shall constitute Parity Obligations under this Indenture, and, in. such event, the
Commission shall pay or cause to be paid to the Trustee for deposit in the Interest Fund, at the
times and in the manner provided by Section 5.02, the amounts to be paid pursuant to such
Interest Rate Swap Agreement, as if such amounts were additional interest due on the Series of
Bonds to which such Interest Rate Swap Agreement relates, and the Trustee shall pay to the
Counterparty to such Interest Rate Swap Agreement, to the extent required thereunder, from
amounts deposited in the Interest Fund for the payment of interest on the Series of Bonds with
respect to which such Interest Rate Swap Agreement was entered into.
SECTION 5.11 Investment in Funds and Accounts. All moneys in any of the
funds and accounts held by the Trustee and established pursuant to this Indenture shall be
invested, as directed by the Commission, solely in Investment Securities. All Investment
Securities shall, as directed by the Commission in writing or by telephone, promptly confirmed
in writing, be acquired subject to the limitations set forth in Section 6.08, the limitations as to
maturities hereinafter in this Section set forth and such additional limitations or requirements
consistent with the foregoing as may be established by Request of the Commission. If and to the
extent the Trustee does not receive investment instructions from the Commission with respect to
the moneys in the funds and accounts held by the Trustee pursuant to this Indenture, such
moneys shall be invested in Investment Securities described in clause (12) of the definition
thereof and the Trustee shall thereupon request investment instructions from the Commission for
such moneys.
Moneys in any Bond Reserve Fund shall be invested in Investment Securities available
on demand for the purpose of payment of the Bonds to which such Bond Reserve Fund relates as
provided herein. Moneys in the remaining funds and accounts shall be invested in Investment
Securities maturing or available on demand not later than the date on which it is estimated that
such moneys will be required by the Trustee.
Unless otherwise provided in a Supplemental Indenture establishing the terms and
provisions of a Series of Bonds: (i) all interest, profits and other income received from the
investment of moneys in the Interest Fund representing accrued interest or capitalized interest
shall be retained in the Interest Fund; (ii) all interest, profits and other income received from the
investment of moneys in a Bond Reserve Fund shall be retained in such Bond Reserve Fund to
the extent of any deficiency therein, and otherwise shall be transferred to the Revenue Fund;
(iii) all interest, profits and other income received from the investment of moneys in a Costs of
Issuance Fund shall be transferred to the Revenue Fund; (iv) all interest, profits and other income
received from the investment of moneys in a Project Fund shall be retained in such Project Fund,
unless the Commission shall direct that such earnings be transferred to the Rebate Fund; (v) all
interest, profits and other income received from the investment of moneys in the Rebate Fund
shall be retained in the Rebate Fund, except as otherwise provided in Section 5.09, (vi) all
interest, profits and other income received from the investment of moneys in any Purchase Fund
shall be retained in such Purchase Fund; and (vii) all interest, profits and other income received
from the investment of moneys in any other fund or account shall be transferred to the Revenue
Fund. Notwithstanding anything to the contrary contained in this paragraph, an amount of
interest received with respect to any Investment Security equal to the amount of accrued interest,
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i f a n y , p a i d a s p a r t o f t h e p u r c h a s e p r i c e o f s u c h I n v e s t m e n t S e c u r i t y s h a l l b e c r e d i t e d t o t h e f u n d
o r a c c o u n t f r o m w h i c h s u c h a c c r u e d i n t e r e s t w a s p a i d .
A l l I n v e s t m e n t S e c u r i t i e s c r e d i t e d t o a n y B o n d R e s e r v e F u n d s h a l l b e v a l u e d ( a t m a r k e t
v a l u e ) a s o f J u n e 1 a n d D e c e m b e r 1 o f e a c h y e a r ( o r t h e n e x t s u c c e e d i n g B u s i n e s s D a y i f s u c h
d a y i s n o t a B u s i n e s s D a y ) , s u c h m a r k e t v a l u e t o b e d e t e r m i n e d b y t h e T r u s t e e i n t h e m a n n e r
t h e n c u r r e n t l y e m p l o y e d b y t h e T r u s t e e o r i n a n y o t h e r m a n n e r c o n s i s t e n t w i t h c o r p o r a t e t r u s t
i n d u s t r y s t a n d a r d s . N o t w i t h s t a n d i n g a n y t h i n g t o t h e c o n t r a r y h e r e i n , i n m a k i n g a n y v a l u a t i o n s o f
i n v e s t m e n t s h e r e u n d e r , t h e T r u s t e e m a y u t i l i z e a n d r e l y o n c o m p u t e r i z e d s e c u r i t i e s p r i c i n g
s e r v i c e s t h a t m a y b e a v a i l a b l e t o i t , i n c l u d i n g t h o s e a v a i l a b l e t h r o u g h i t s r e g u l a r a c c o u n t i n g
s y s t e m .
T h e T r u s t e e m a y c o m m i n g l e a n y o f t h e f u n d s o r a c c o u n t s e s t a b l i s h e d p u r s u a n t t o t h i s
I n d e n t u r e ( e x c e p t t h e R e b a t e F u n d a n d a n y P u r c h a s e F u n d ) i n t o a s e p a r a t e f u n d o r f u n d s f o r
i n v e s t m e n t p u r p o s e s o n l y , p r o v i d e d t h a t a l l f u n d s o r a c c o u n t s h e l d b y t h e T r u s t e e h e r e u n d e r s h a l l
b e a c c o u n t e d f o r s e p a r a t e l y a s r e q u i r e d b y t h i s I n d e n t u r e . T h e T r u s t e e m a y a c t a s p r i n c i p a l o r
a g e n t i n t h e m a k i n g o r d i s p o s i n g o f a n y i n v e s t m e n t a n d , w i t h t h e p r i o r w r i t t e n c o n s e n t o f t h e
C o m m i s s i o n m a y i m p o s e i t s c u s t o m a r y c h a r g e t h e r e f o r . T h e T r u s t e e m a y s e l l a t t h e b e s t p r i c e
o b t a i n a b l e , o r p r e s e n t f o r r e d e m p t i o n , a n y I n v e s t m e n t S e c u r i t i e s s o p u r c h a s e d w h e n e v e r i t s h a l l
b e n e c e s s a r y t o p r o v i d e m o n e y s t o m e e t a n y r e q u i r e d p a y m e n t , t r a n s f e r , w i t h d r a w a l o r
d i s b u r s e m e n t f r o m t h e f u n d o r a c c o u n t t o w h i c h s u c h I n v e s t m e n t S e c u r i t y i s c r e d i t e d . T h e
T r u s t e e s h a l l n o t b e l i a b l e o r r e s p o n s i b l e f o r a n y l o s s r e s u l t i n g f r o m a n y i n v e s t m e n t m a d e i n
a c c o r d a n c e h e r e w i t h .
A R T I C L E V I
C O V E N A N T S O F T H E C O M M I S S I O N
S E C T I O N 6 . 0 1 P u n c t u a l P a y m e n t s . T h e C o m m i s s i o n w i l l p u n c t u a l l y p a y o r c a u s e
t o b e p a i d t h e p r i n c i p a l o r R e d e m p t i o n P r i c e o f a n d i n t e r e s t o n a l l t h e B o n d s , i n s t r i c t c o n f o r m i t y
w i t h t h e t e r m s o f t h e B o n d s a n d o f t h i s I n d e n t u r e , a c c o r d i n g t o t h e t r u e i n t e n t a n d m e a n i n g
t h e r e o f , a n d s h a l l p u n c t u a l l y p a y o r c a u s e t o b e p a i d a l l M a n d a t o r y S i n k i n g A c c o u n t P a y m e n t s ,
b u t i n e a c h c a s e o n l y o u t o f R e v e n u e s a s p r o v i d e d i n t h i s I n d e n t u r e .
S E C T I O N 6 . 0 2 E x t e n s i o n o f P a y m e n t o f B o n d s . T h e C o m m i s s i o n w i l l n o t d i r e c t l y
o r i n d i r e c t l y e x t e n d o r a s s e n t t o t h e e x t e n s i o n o f t h e m a t u r i t y o f a n y o f t h e B o n d s o r t h e t i m e o f
p a y m e n t o f a n y B o n d s o r c l a i m s f o r i n t e r e s t b y t h e p u r c h a s e o r f u n d i n g o f s u c h B o n d s o r c l a i m s
f o r i n t e r e s t o r b y a n y o t h e r a r r a n g e m e n t a n d i n c a s e t h e m a t u r i t y o f a n y o f t h e B o n d s o r t h e t i m e
o f p a y m e n t o f a n y s u c h c l a i m s f o r i n t e r e s t s h a l l b e e x t e n d e d , s u c h B o n d s o r c l a i m s f o r i n t e r e s t
s h a l l n o t b e e n t i t l e d , i n c a s e o f a n y d e f a u l t h e r e u n d e r , t o t h e b e n e f i t s o f t h i s I n d e n t u r e , e x c e p t
s u b j e c t t o t h e p r i o r p a y m e n t i n f u l l o f t h e p r i n c i p a l o f a l l o f t h e B o n d s t h e n O u t s t a n d i n g a n d o f
a l l c l a i m s f o r i n t e r e s t t h e r e o n w h i c h s h a l l n o t h a v e b e e n s o e x t e n d e d . N o t h i n g i n t h i s S e c t i o n
s h a l l b e d e e m e d t o l i m i t t h e r i g h t o f t h e C o m m i s s i o n t o i s s u e b o n d s f o r t h e p u r p o s e o f r e f u n d i n g
a n y O u t s t a n d i n g B o n d s , a n d s u c h i s s u a n c e s h a l l n o t b e d e e m e d t o c o n s t i t u t e a n e x t e n s i o n o f
m a t u r i t y o f B o n d s .
O H S W e s t 2 6 0 3 7 9 4 7 5 . 8
4 5
1 9 6
SECTION 6.03 Waiver of Laws. The Commission will not at any time insist upon
or plead in any manner whatsoever, or claim or take the benefit or advantage of, any stay or
extension of law now or at any time hereafter in force that may affect the covenants and
agreements contained in this Indenture or in the Bonds, and all benefit or advantage of any such
law or laws is hereby expressly waived by the Commission to the extent permitted by law.
SECTION 6.04 Further Assurances. The Commission will make, execute and
deliver any and all such instruments and assurances as may be reasonably necessary or proper to
carry out the intention or to facilitate the performance of this Indenture and for the better
assuring and confirming unto the Holders of the Bonds of the rights and benefits provided in this
Indenture.
SECTION 6.05 Against Encumbrances. The Commission will not create any
pledge, lien or charge upon any of the Sales Tax Revenues having priority over or having parity
with the lien of the Bonds except only as permitted in Section 3.05.
SECTION 6.06 Accounting Records and Financial Statements.
(A) The Commission will at all times keep, or cause to be kept, proper books of
record and account, prepared in accordance with generally accepted accounting principles, in
which complete and accurate entries shall be made of all transactions relating to the Revenues.
Such books of record and account shall be available for inspection by the Trustee at reasonable
hours and under reasonable circumstances.
(B) The Commission will furnish the Trustee, with copies to each Credit Provider and
each Liquidity Provider, within two hundred ten (210) days after the end of each Fiscal Year or
as soon thereafter as they can practically be furnished, the financial statements of the
Commission for such Fiscal Year, together with the report and opinion of an independent
certified public accountant stating that the fmancial statements have been prepared in accordance
with generally accepted accounting principles and that such accountant's examination of the
financial statements was performed in accordance with generally accepted auditing standards and
a Certificate of an Authorized Representative stating that no event which constitutes an Event of
Default or which with the giving of notice or the passage of time or both would constitute an
Event of Default has occurred and is continuing as of the end of such Fiscal Year, or specifying
the nature of such event and the actions taken and proposed to be taken by the Commission to
cure such default. Thereafter, a copy of such financial statements will be furnished to any
Holder upon written request to the Commission, which copy of the financial statements may, at
the sole discretion of the Commission, be provided by means of posting such financial
statements on an intemet site that provides access to the Holders.
SECTION 6.07 Collection of Sales Tax Revenues.
(A) The Commission covenants and agrees that it has duly levied a retail transactions
and use tax in accordance with the Act, pursuant to and in accordance with the Ordinance, duly
passed and adopted by the Commission. Said Ordinance has not and will not be amended,
modified or altered so long as any of the Bonds are Outstanding in any manner which would
reduce the amount of or timing of receipt of Sales Tax Revenues, and the Commission will
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c o n t i n u e t o l e v y a n d c o l l e c t s u c h r e t a i l t r a n s a c t i o n s a n d u s e t a x t o t h e f u l l a m o u n t p e r m i t t e d b y
l a w . T h e C o m m i s s i o n f u r t h e r c o v e n a n t s t h a t i t h a s e n t e r e d i n t o a n a g r e e m e n t w i t h t h e S t a t e
B o a r d o f E q u a l i z a t i o n u n d e r a n d p u r s u a n t t o w h i c h t h e S t a t e B o a r d o f E q u a l i z a t i o n w i l l p r o c e s s
a n d s u p e r v i s e c o l l e c t i o n o f s a i d r e t a i l t r a n s a c t i o n s a n d u s e t a x a n d w i l l t r a n s m i t S a l e s T a x
R e v e n u e s d i r e c t l y t o t h e T r u s t e e . S a i d a g r e e m e n t w i l l b e c o n t i n u e d i n e f f e c t s o l o n g a s a n y
B o n d s a r e O u t s t a n d i n g a n d s h a l l n o t b e a m e n d e d , m o d i f i e d o r a l t e r e d w i t h o u t t h e w r i t t e n c o n s e n t
o f t h e T r u s t e e s o l o n g a s a n y o f t h e B o n d s a r e O u t s t a n d i n g . T h e C o m m i s s i o n w i l l r e c e i v e a n d
h o l d i n t r u s t f o r ( a n d r e m i t i m m e d i a t e l y t o ) t h e T r u s t e e a n y S a l e s T a x R e v e n u e s p a i d t o t h e
C o m m i s s i o n b y t h e S t a t e B o a r d o f E q u a l i z a t i o n .
( B ) S a l e s T a x R e v e n u e s r e c e i v e d b y t h e T r u s t e e s h a l l b e t r a n s m i t t e d t o t h e
C o m m i s s i o n p u r s u a n t t o S e c t i o n 5 . 0 2 ; p r o v i d e d t h a t , d u r i n g t h e c o n t i n u a n c e o f a n E v e n t o f
D e f a u l t , a n y S a l e s T a x R e v e n u e s r e c e i v e d b y t h e T r u s t e e s h a l l b e a p p l i e d a s s e t f o r t h i n
S e c t i o n 7 . 0 2 .
( C ) T h e C o m m i s s i o n c o v e n a n t s a n d a g r e e s t o s e p a r a t e l y a c c o u n t f o r a l l R e v e n u e s a n d
t o p r o v i d e t o t h e T r u s t e e a c c e s s t o s u c h a c c o u n t i n g r e c o r d s a t r e a s o n a b l e h o u r s a n d u n d e r
r e a s o n a b l e c i r c u m s t a n c e s .
( D ) T h e C o m m i s s i o n c o v e n a n t s t h a t s o l o n g a s t h e B o n d s a r e O u t s t a n d i n g , i t w i l l n o t ,
t o t h e b e s t o f i t s a b i l i t y , s u f f e r o r p e r m i t a n y c h a n g e , m o d i f i c a t i o n o r a l t e r a t i o n t o b e m a d e t o t h e
A c t w h i c h w o u l d m a t e r i a l l y a n d a d v e r s e l y a f f e c t t h e r i g h t s o f B o n d h o l d e r s .
S E C T I O N 6 . 0 8 T a x C o v e n a n t s . T h e C o m m i s s i o n c o v e n a n t s t h a t i t w i l l n o t t a k e
a n y a c t i o n , o r f a i l t o t a k e a n y a c t i o n , i f a n y s u c h a c t i o n o r f a i l u r e t o t a k e a c t i o n w o u l d a d v e r s e l y
a f f e c t t h e e x c l u s i o n f r o m g r o s s i n c o m e o f t h e i n t e r e s t o n t h e B o n d s u n d e r S e c t i o n 1 0 3 o f t h e
C o d e ; p r o v i d e d t h a t , p r i o r t o t h e i s s u a n c e o f a n y S e r i e s o f B o n d s , t h e C o m m i s s i o n m a y e x c l u d e
t h e a p p l i c a t i o n o f t h e c o v e n a n t s c o n t a i n e d i n t h i s S e c t i o n 6 . 0 8 a n d S e c t i o n 5 . 0 9 t o s u c h S e r i e s o f
B o n d s . T h e C o m m i s s i o n w i l l n o t d i r e c t l y o r i n d i r e c t l y u s e o r p e r m i t t h e u s e o f a n y p r o c e e d s o f
t h e B o n d s o r a n y o t h e r f u n d s o f t h e C o m m i s s i o n , o r t a k e o r o m i t t o t a k e a n y a c t i o n t h a t w o u l d
c a u s e t h e B o n d s t o b e " a r b i t r a g e b o n d s " w i t h i n t h e m e a n i n g o f S e c t i o n 1 4 8 ( a ) o f t h e C o d e . T o
t h a t e n d , t h e C o m m i s s i o n w i l l c o m p l y w i t h a l l r e q u i r e m e n t s o f t h e T a x C e r t i f i c a t e r e l a t i n g t o
e a c h S e r i e s o f t h e B o n d s . I n t h e e v e n t t h a t a t a n y t i m e t h e C o m m i s s i o n i s o f t h e o p i n i o n t h a t f o r
p u r p o s e s o f t h i s S e c t i o n 6 . 0 8 i t i s n e c e s s a r y t o r e s t r i c t o r l i m i t t h e y i e l d o n t h e i n v e s t m e n t o f a n y
m o n e y s h e l d b y t h e T r u s t e e u n d e r t h i s I n d e n t u r e , t h e C o m m i s s i o n s h a l l s o i n s t r u c t t h e T r u s t e e i n
w r i t i n g , a n d t h e T r u s t e e s h a l l t a k e s u c h a c t i o n a s m a y b e n e c e s s a r y i n a c c o r d a n c e w i t h s u c h
i n s t r u c t i o n s .
W i t h o u t l i m i t i n g t h e g e n e r a l i t y o f t h e f o r e g o i n g , t h e C o m m i s s i o n a g r e e s t h a t t h e r e s h a l l
b e p a i d f r o m t i m e t o t i m e a l l a m o u n t s r e q u i r e d t o b e r e b a t e d t o t h e f e d e r a l g o v e r n m e n t o f t h e
U n i t e d S t a t e s o f A m e r i c a p u r s u a n t t o S e c t i o n 1 4 8 ( f ) o f t h e C o d e a n d a n y t e m p o r a r y , p r o p o s e d o r
f i n a l T r e a s u r y R e g u l a t i o n s a s m a y b e a p p l i c a b l e t o t h e B o n d s f r o m t i m e t o t i m e . T h e
C o m m i s s i o n s p e c i f i c a l l y c o v e n a n t s t o p a y o r c a u s e t o b e p a i d t o t h e f e d e r a l g o v e r n m e n t o f t h e
U n i t e d S t a t e s o f A m e r i c a t h e R e b a t e R e q u i r e m e n t w i t h r e s p e c t t o e a c h S e r i e s o f B o n d s a t t h e
t i m e s a n d i n t h e a m o u n t s d e t e r m i n e d u n d e r a n d a s d e s c r i b e d i n t h e T a x C e r t i f i c a t e e x e c u t e d a n d
d e l i v e r e d i n c o n n e c t i o n w i t h s u c h S e r i e s o f B o n d s .
O H S W e s t : 2 6 0 3 7 9 4 7 5 . 8
4 7
1 9 8
Notwithstanding any provision of this Section 6.08, Section 5.09 and any Tax Certificate,
if the Commission shall receive an Opinion of Bond Counsel to the effect that any action
required under this Section 6.08, Section 5.09 or any Tax Certificate is no longer required, or to
the effect that some further action is required, to maintain the exclusion from gross income of the
interest on the Bonds pursuant to Section 103 of the Code, the Commission and the Trustee may
rely conclusively on such opinion in complying with the provisions hereof, and the covenants
hereunder shall be deemed to be modified to that extent.
Notwithstanding any provisions of this Indenture, including particularly Article X, the
covenants and obligations set forth in this Section 6.08 shall survive the defeasance of the Bonds
or any Series thereof.
SECTION 6.09 Continuing Disclosure. Upon the issuance of any Series of Bonds
requiring an undertaking regarding continuing disclosure under Rule 15c2-12, the °Commission
hereby covenants and agrees that it will comply with and carry out all of the provisions of the
Continuing Disclosure Agreement executed and delivered in connection with such Series of
Bonds. Notwithstanding any other provision of the Indenture, failure of the Commission to
comply with the provisions of any Continuing Disclosure Agreement shall not be considered an
Event of Default; however, the Trustee shall, at the written request of any Participating
Underwriter or of the Holders of at least twenty-five (25%) aggregate principal amount of any
Series of Bonds then Outstanding (but only to the extent funds in an amount satisfactory to the
Trustee have been provided to it or it has been otherwise indemnified to its satisfaction from any
cost, liability, expense or additional charges and fees of the Trustee whatsoever, including,
without limitation, reasonable fees and expenses of its attorneys), or any Holder or beneficial
owner may, take such actions as may be necessary and appropriate, including seeking mandate or
specific performance by court order, to cause the Commission to comply with its obligations
under this Section 6.09.
SECTION 7.01
Default:
ARTICLE VII
EVENTS OF DEFAULT AND REMEDIES
Events of Default. The following events shall be Events of
(A) default in the due and punctual payment of the principal or Redemption Price of
any Bond when and as the same shall become due and payable, whether at maturity as therein
expressed, by proceedings for redemption, by declaration or otherwise, or default in the
redemption from any Sinking Account of any Bonds in the amounts and at the times provided
therefor;
(B) default in the due and punctual payment of any installment of interest on any
Bond when and as such interest installment shall become due and payable;
(C) if the Commission shall fail to observe or perform any covenant, condition,
agreement or provision in this Indenture on its part to be observed or performed, other than as
referred to in subsection (A) or (B) of this Section, for a period of sixty (60) days after written
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n o t i c e , s p e c i f y i n g s u c h f a i l u r e a n d r e q u e s t i n g t h a t i t b e r e m e d i e d , h a s b e e n g i v e n t o t h e
C o m m i s s i o n b y t h e T r u s t e e o r b y a n y C r e d i t P r o v i d e r ; e x c e p t t h a t , i f s u c h f a i l u r e c a n b e
r e m e d i e d b u t n o t w i t h i n s u c h s i x t y ( 6 0 ) d a y p e r i o d a n d i f t h e C o m m i s s i o n h a s t a k e n a l l a c t i o n
r e a s o n a b l y p o s s i b l e t o r e m e d y s u c h f a i l u r e w i t h i n s u c h s i x t y ( 6 0 ) d a y p e r i o d , s u c h f a i l u r e s h a l l
n o t b e c o m e a n E v e n t o f D e f a u l t f o r s o l o n g a s t h e C o m m i s s i o n s h a l l d i l i g e n t l y p r o c e e d t o
r e m e d y t h e s a m e i n a c c o r d a n c e w i t h a n d s u b j e c t t o a n y d i r e c t i o n s o r l i m i t a t i o n s o f t i m e
e s t a b l i s h e d b y t h e T r u s t e e ;
( D ) i f a n y p a y m e n t d e f a u l t s h a l l e x i s t u n d e r a n y a g r e e m e n t g o v e m i n g a n y P a r i t y
O b l i g a t i o n s a n d s u c h d e f a u l t s h a l l c o n t i n u e b e y o n d t h e g r a c e p e r i o d , i f a n y , p r o v i d e d f o r w i t h
r e s p e c t t o s u c h d e f a u l t ;
( E ) i f t h e C o m m i s s i o n f i l e s a p e t i t i o n i n v o l u n t a r y b a n k r u p t c y f o r t h e c o m p o s i t i o n o f
i t s a f f a i r s o r f o r i t s c o r p o r a t e r e o r g a n i z a t i o n u n d e r a n y s t a t e o r f e d e r a l b a n k r u p t c y o r i n s o l v e n c y
l a w , o r m a k e s a n a s s i g n m e n t f o r t h e b e n e f i t o f c r e d i t o r s , o r a d m i t s i n w r i t i n g t o i t s i n s o l v e n c y o r
i n a b i l i t y t o p a y d e b t s a s t h e y m a t u r e , o r c o n s e n t s i n w r i t i n g t o t h e a p p o i n t m e n t o f a t r u s t e e o r
r e c e i v e r f o r i t s e l f ;
( F ) i f a c o u r t o f c o m p e t e n t j u r i s d i c t i o n s h a l l e n t e r a n o r d e r , j u d g m e n t o r d e c r e e
d e c l a r i n g t h e C o m m i s s i o n i n s o l v e n t , o r a d j u d g i n g i t b a n k r u p t , o r a p p o i n t i n g a t r u s t e e o r r e c e i v e r
o f t h e C o m m i s s i o n , o r a p p r o v i n g a p e t i t i o n f i l e d a g a i n s t t h e C o m m i s s i o n s e e k i n g r e o r g a n i z a t i o n
o f t h e C o m m i s s i o n u n d e r a n y a p p l i c a b l e l a w o r s t a t u t e o f t h e U n i t e d S t a t e s o f A m e r i c a o r a n y
s t a t e t h e r e o f , a n d s u c h o r d e r , j u d g m e n t o r d e c r e e s h a l l n o t b e v a c a t e d o r s e t a s i d e o r s t a y e d
w i t h i n s i x t y ( 6 0 ) d a y s f r o m t h e d a t e o f t h e e n t r y t h e r e o f ;
( G ) i f , u n d e r t h e p r o v i s i o n s o f a n y o t h e r l a w f o r t h e r e l i e f o r a i d o f d e b t o r s , a n y c o u r t
o f c o m p e t e n t j u r i s d i c t i o n s h a l l a s s u m e c u s t o d y o r c o n t r o l o f t h e C o m m i s s i o n o r o f t h e R e v e n u e s ,
a n d s u c h c u s t o d y o r c o n t r o l s h a l l n o t b e t e r m i n a t e d w i t h i n s i x t y ( 6 0 ) d a y s f r o m t h e d a t e o f
a s s u m p t i o n o f s u c h c u s t o d y o r c o n t r o l ; o r
( H ) i f t h e L e g i s l a t u r e o f t h e S t a t e s h a l l r e p e a l o r a m e n d a l l o r a n y p o r t i o n o f t h e
p r o v i s i o n s o f t h e A c t r e l a t i n g t o t h e r e t a i l t r a n s a c t i o n s a n d u s e t a x , b e i n g S e c t i o n s 2 4 0 3 0 0 t o
2 4 0 3 2 3 , i n c l u s i v e , o f t h e P u b l i c U t i l i t i e s C o d e o f t h e S t a t e u n l e s s t h e C o m m i s s i o n h a s
r e a s o n a b l y d e t e r m i n e d t h a t s a i d r e p e a l o r a m e n d m e n t d o e s n o t m a t e r i a l l y a n d a d v e r s e l y a f f e c t
t h e r i g h t s o f B o n d h o l d e r s .
S E C 1 ' I O N 7 . 0 2 A p p l i c a t i o n o f t h e R e v e n u e s a n d O t h e r F u n d s A f t e r D e f a u l t ; N o
A c c e l e r a t i o n . I f a n E v e n t o f D e f a u l t s h a l l o c c u r a n d b e c o n t i n u i n g , t h e C o m m i s s i o n s h a l l
i m m e d i a t e l y t r a n s f e r t o t h e T r u s t e e a l l R e v e n u e s h e l d b y i t a n d t h e T r u s t e e s h a l l a p p l y a l l
R e v e n u e s a n d a n y o t h e r f u n d s t h e n h e l d o r t h e r e a f t e r r e c e i v e d b y t h e T m s t e e . u n d e r a n y o f t h e
p r o v i s i o n s o f t h i s I n d e n t u r e ( e x c l u d i n g t h e R e b a t e F u n d a n d a n y P u r c h a s e F u n d a n d e x c e p t a s
o t h e r w i s e p r o v i d e d i n t h i s I n d e n t u r e ) a s f o l l o w s a n d i n t h e f o l l o w i n g o r d e r :
( 1 ) t o t h e p a y m e n t o f a n y e x p e n s e s n e c e s s a r y i n t h e o p i n i o n o f t h e T r u s t e e t o p r o t e c t
t h e i n t e r e s t s o f t h e H o l d e r s o f t h e B o n d s a n d P a r i t y O b l i g a t i o n s , i n c l u d i n g t h e c o s t s a n d e x p e n s e s
o f t h e T r u s t e e a n d t h e B o n d h o l d e r s i n d e c l a r i n g s u c h E v e n t o f D e f a u l t , a n d p a y m e n t o f
r e a s o n a b l e f e e s a n d e x p e n s e s o f t h e T r u s t e e ( i n c l u d i n g r e a s o n a b l e f e e s a n d d i s b u r s e m e n t s o f i t s
O H S W e s t : 2 6 0 3 7 9 4 7 5 . 8
4 9
2 0 0
counsel and other agents) incurred in and about the performance of its powers and duties under
this Indenture;
(2) to the payment of the whole amount of Bond Obligation then due on the Bonds
and Parity Obligations (upon presentation of the Bonds and Panty Obligations to be paid, and
stamping thereon of the payment if only partially paid, or surrender thereof if fully paid) subject
to the provisions of this Indenture (including Section 9.02), with interest on such Bond
Obligation, at the rate or rates of interest borne by the respective Bonds and on Parity
Obligations, to the payment to the persons entitled thereto of all installments of interest then due
and the unpaid principal or Redemption Price of any Bonds and Panty Obligations which shall
have become due, whether at maturity, by call for redemption or otherwise, in the order of their
due dates, with interest on the overdue Bond Obligation and Parity Obligations at the rate borne
by the respective Bonds and Parity Obligations, and, if the amount available shall not be
sufficient to pay in full all the Bonds and Parity Obligations due on any date, together with such
interest, then to the payment thereof ratably, according to the amounts of principal or Accreted
Value (plus accrued interest) due on such date to the persons entitled thereto, without any
discrimination or preference;
(3) to the extent Revenues are available therefor, to be transferred to the trustee for
the Subordinate Obligations in the amount necessary for payment of Subordinate Obligations;
and
(4) to the payment of all other obligations payable hereunder.
Notwithstanding anything in this Indenture to the contrary, in no event are the Bonds
subject to acceleration if an Event of Default occurs and is continuing.
SECTION 7.03 Trustee to Represent Bondholders. The Trustee is hereby
irrevocably appointed (and the successive respective Holders of the Bonds, by taking and
holding the same, shall be conclusively deemed to have so appointed the Trustee) as trustee and
true and lawful attorney -in -fact of the Holders of the Bonds for the purpose of exercising and
prosecuting on their behalf such rights and remedies as may be available to such Holders under
the provisions of the Bonds, this Indenture, the Act and applicable provisions of any other law.
Upon the occurrence and continuance of an Event of Default or other occasion giving rise to a
right in the Trustee to represent the Bondholders, the Trustee in its discretion may, and, with
respect to any Series of Bonds for which a Credit Enhancement has been provided, upon the
written request of the Credit Provider providing such Credit Enhancement, or if such Credit
Provider is then failing to make a payment required pursuant to such Credit Enhancement, upon
the written request of the Holders of not less than a majority in aggregate amount of Bond
Obligation of the Bonds then Outstanding, and upon being indemnified to its satisfaction
therefor, shall proceed to protect or enforce its rights or the rights of such Holders by such
appropriate action, suit, mandamus or other proceedings as it shall deem most effectual to protect
and enforce any such right, at law or in equity, either for the specific performance of any
covenant or agreement contained herein, or in aid of the execution of any power herein granted,
or for the enforcement of any other appropriate legal or equitable right or remedy vested in the
Trustee or in such Holders under this Indenture, the Act or any other law; and upon instituting
such proceeding, the Trustee shall be entitled, as a matter of right, to the appointment of a
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"
"
i
r e c e i v e r o f t h e S a l e s T a x R e v e n u e s a n d o t h e r a s s e t s p l e d g e d u n d e r t h i s I n d e n t u r e , p e n d i n g s u c h
p r o c e e d i n g s ; p r o v i d e d , h o w e v e r , t h a t , w i t h r e s p e c t t o a n y S e r i e s o f B o n d s f o r w h i c h a C r e d i t
E n h a n c e m e n t h a s b e e n p r o v i d e d , t h e T r u s t e e m a y o n l y a c t w i t h t h e c o n s e n t o f t h e C r e d i t
P r o v i d e r p r o v i d i n g s u c h C r e d i t E n h a n c e m e n t . A l l r i g h t s o f a c t i o n u n d e r t h i s I n d e n t u r e o r t h e
B o n d s o r o t h e r w i s e m a y b e p r o s e c u t e d a n d e n f o r c e d b y t h e T r u s t e e w i t h o u t t h e p o s s e s s i o n o f
a n y o f t h e B o n d s o r t h e p r o d u c t i o n t h e r e o f i n a n y p r o c e e d i n g r e l a t i n g t h e r e t o , a n d a n y s u c h s u i t ,
a c t i o n o r p r o c e e d i n g i n s t i t u t e d b y t h e T r u s t e e s h a l l b e b r o u g h t i n t h e n a m e o f t h e T r u s t e e f o r t h e
b e n e f i t a n d p r o t e c t i o n o f a l l t h e H o l d e r s o f s u c h B o n d s , s u b j e c t t o t h e p r o v i s i o n s o f t h i s
I n d e n t u r e ( i n c l u d i n g S e c t i o n 7 . 0 5 ) .
S E C T I O N 7 . 0 4 B o n d h o l d e r s ' D i r e c t i o n o f P r o c e e d i n g s . A n y t h i n g i n t h i s I n d e n t u r e
t o t h e c o n t r a r y ( e x c e p t p r o v i s i o n s r e l a t i n g t o t h e r i g h t s o f a C r e d i t P r o v i d e r t o d i r e c t p r o c e e d i n g s
a s s e t f o r t h i n S e c t i o n 7 . 1 0 ) n o t w i t h s t a n d i n g , t h e H o l d e r s o f a m a j o r i t y i n a g g r e g a t e a m o u n t o f
B o n d O b l i g a t i o n o f t h e B o n d s t h e n O u t s t a n d i n g s h a l l h a v e t h e r i g h t , b y a n i n s t r u m e n t o r
c o n c u r r e n t i n s t r u m e n t s i n w r i t i n g e x e c u t e d a n d d e l i v e r e d t o t h e T r u s t e e a n d u p o n f u r n i s h i n g t h e
T r u s t e e w i t h i n d e m n i f i c a t i o n s a t i s f a c t o r y t o i t , t o d i r e c t t h e m e t h o d o f c o n d u c t i n g a l l r e m e d i a l
p r o c e e d i n g s t a k e n b y t h e T r u s t e e h e r e u n d e r , p r o v i d e d t h a t s u c h d i r e c t i o n s h a l l n o t b e o t h e r w i s e
t h a n i n a c c o r d a n c e w i t h l a w a n d t h e p r o v i s i o n s o f t h i s I n d e n t u r e , t h a t t h e T r u s t e e m a y t a k e a n y
o t h e r a c t i o n d e e m e d p r o p e r b y t h e T r u s t e e w h i c h i s n o t i n c o n s i s t e n t w i t h s u c h d i r e c t i o n , a n d t h a t
t h e T r u s t e e s h a l l h a v e t h e r i g h t t o d e c l i n e t o f o l l o w a n y s u c h d i r e c t i o n w h i c h i n t h e o p i n i o n o f
t h e T r u s t e e w o u l d b e u n j u s t l y p r e j u d i c i a l t o B o n d h o l d e r s o r h o l d e r s o f P a r i t y O b l i g a t i o n s n o t
p a r t i e s t o s u c h d i r e c t i o n .
S E C T I O N 7 . 0 5 L i m i t a t i o n o n B o n d h o l d e r s ' R i g h t t o S u e . N o H o l d e r o f a n y B o n d
s h a l l h a v e t h e r i g h t t o i n s t i t u t e a n y s u i t , a c t i o n o r p r o c e e d i n g a t l a w o r i n e q u i t y , f o r t h e
p r o t e c t i o n o r e n f o r c e m e n t o f a n y r i g h t o r r e m e d y u n d e r t h i s I n d e n t u r e , t h e A c t o r a n y o t h e r
a p p l i c a b l e l a w w i t h r e s p e c t t o s u c h B o n d , u n l e s s : ( 1 ) s u c h H o l d e r s h a l l h a v e g i v e n t o t h e T r u s t e e
w r i t t e n n o t i c e o f t h e o c c u r r e n c e o f a n E v e n t o f D e f a u l t ; ( 2 ) t h e H o l d e r s o f n o t l e s s t h a n a
m a j o r i t y i n a g g r e g a t e a m o u n t o f B o n d O b l i g a t i o n o f t h e B o n d s t h e n O u t s t a n d i n g s h a l l h a v e m a d e
w r i t t e n r e q u e s t u p o n t h e T r u s t e e t o e x e r c i s e t h e p o w e r s h e r e i n b e f o r e g r a n t e d o r t o i n s t i t u t e s u c h
s u i t , a c t i o n o r p r o c e e d i n g i n i t s o w n n a m e ; ( 3 ) s u c h H o l d e r o r s a i d H o l d e r s s h a l l h a v e t e n d e r e d t o
t h e T r u s t e e r e a s o n a b l e i n d e m n i t y a g a i n s t t h e c o s t s , e x p e n s e s a n d l i a b i l i t i e s t o b e i n c u r r e d i n
c o m p l i a n c e w i t h s u c h r e q u e s t ; a n d ( 4 ) t h e T r u s t e e s h a l l h a v e r e f u s e d o r o m i t t e d t o c o m p l y w i t h
s u c h r e q u e s t f o r a p e r i o d o f s i x t y ( 6 0 ) d a y s a f t e r s u c h w r i t t e n r e q u e s t s h a l l h a v e b e e n r e c e i v e d
b y , a n d s a i d t e n d e r o f i n d e m n i t y s h a l l h a v e b e e n m a d e t o , t h e T r u s t e e ; p r o v i d e d , h o w e v e r , t h a t
t h e w r i t t e n c o n s e n t o f a C r e d i t P r o v i d e r p r o v i d i n g a C r e d i t E n h a n c e m e n t w i t h r e s p e c t t o a S e r i e s
o f B o n d s s h a l l b e r e q u i r e d i f t h e C r e d i t E n h a n c e m e n t w i t h r e s p e c t t o s u c h S e r i e s o f B o n d s i s i n
f u l l f o r c e a n d e f f e c t a n d i f t h e C r e d i t P r o v i d e r p r o v i d i n g s u c h C r e d i t E n h a n c e m e n t i s n o t t h e n
f a i l i n g t o m a k e a p a y m e n t a s r e q u i r e d i n c o n n e c t i o n t h e r e w i t h .
S u c h n o t i f i c a t i o n , r e q u e s t , t e n d e r o f i n d e m n i t y a n d r e f u s a l o r o m i s s i o n a r e h e r e b y
d e c l a r e d , i n e v e r y c a s e , t o b e c o n d i t i o n s p r e c e d e n t t o t h e e x e r c i s e b y a n y H o l d e r o f B o n d s o f a n y
r e m e d y h e r e u n d e r o r u n d e r l a w ; i t b e i n g u n d e r s t o o d a n d i n t e n d e d t h a t n o o n e o r m o r e H o l d e r s o f
B o n d s s h a l l h a v e a n y r i g h t i n a n y m a n n e r w h a t e v e r b y h i s o r t h e i r a c t i o n t o a f f e c t , d i s t u r b o r
p r e j u d i c e t h e s e c u r i t y o f t h i s I n d e n t u r e o r t h e r i g h t s o f a n y o t h e r H o l d e r s o f B o n d s , o r t o e n f o r c e
a n y r i g h t u n d e r t h i s I n d e n t u r e , t h e A c t o r o t h e r a p p l i c a b l e l a w w i t h r e s p e c t t o t h e B o n d s , e x c e p t
i n t h e m a n n e r h e r e i n p r o v i d e d , a n d t h a t a l l p r o c e e d i n g s a t l a w o r i n e q u i t y t o e n f o r c e a n y s u c h
O H S W e s t 2 6 0 3 7 9 4 7 5 . 8
5 1
2 0 2
right shall be instituted, had and maintained in the manner herein provided and for the benefit
and protection of all Holders of the Outstanding Bonds, subject to the provisions of this
Indenture.
SECTION 7.06 Absolute Obligation of the Commission. Nothing in Section 7.05
or in any other provision of this Indenture, or in the Bonds, contained shall affect or impair the
obligation of the Commission, which is absolute and unconditional, to pay the principal or
Redemption Price of and interest on the Bonds to the respective Holders of the Bonds at their
respective dates of maturity, or upon call for redemption, as herein provided, but only out of the
Revenues and other assets herein pledged therefor, or affect or impair the right of such Holders,
which is also absolute and unconditional, to enforce such payment by virtue of the contract
embodied in the Bonds.
SECTION 7.07 Termination of Proceedings. In case any proceedings taken by the
Trustee, any Credit Provider or any one or more Bondholders on account of any Event of Default
shall have been discontinued or abandoned for any reason or shall have been determined
adversely to the Trustee, any Credit Provider or the Bondholders, then in every such case the
Commission, the Trustee, each Credit Provider and the Bondholders, subject to any
determination in such proceedings, shall be restored to their former positions and rights
hereunder, severally and respectively, and all rights, remedies, powers and duties of the
Commission, the Trustee, each Credit Provider and the Bondholders shall continue as though no
such proceedings had been taken.
SECTION 7.08 Remedies Not Exclusive. No remedy herein conferred upon or
reserved to the Trustee, to any Credit Provider or to the Holders of the Bonds is intended to be
exclusive of any other remedy or remedies, and each and every such remedy, to the extent
permitted by law, shall be cumulative and in addition to any other remedy given hereunder or
now or hereafter existing at law or in equity or otherwise.
SECTION 7.09 No Waiver of Default. No delay or omission of the Trustee, any
Credit Provider or of any Holder of the Bonds to exercise any right or power arising upon the
occurrence of any default shall impair any such right or power or shall be construed to be a
waiver of any such default or an acquiescence therein; and every power and remedy given by this
Indenture to the Trustee, to any Credit Provider or to the Holders of the Bonds may be exercised
from time to time and as often as may be deemed expedient. No waiver of any Event of Default
hereunder, whether by Trustee or by any Credit Provider or by the Bondholders, shall extend to
or shall affect any subsequent Event of Default or shall impair any rights or remedies consequent
thereon.
SECTION 7.10 Credit Provider Directs Remedies Upon Event of Default.
Anything in the Indenture to the contrary notwithstanding, upon the occurrence and continuance
of an Event of Default as defined herein, the Credit Provider then providing Credit Enhancement
for any Series of Bonds shall be entitled to control and direct the enforcement of all rights and
remedies granted to the Holders of the Bonds secured by such Credit Enhancement or granted to
the Trustee for the benefit of the Holders of the Bonds secured by such Credit Enhancement,
provided that the Credit Provider's consent shall not be required as otherwise provided herein if
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s u c h C r e d i t P r o v i d e r i s i n d e f a u l t o f a n y o f i t s p a y m e n t o b l i g a t i o n s a s s e t f o r t h i n t h e C r e d i t
E n h a n c e m e n t p r o v i d e d b y s u c h C r e d i t P r o v i d e r .
A R T I C L E V I I I
T H E T R U S T E E
S E C T I O N 8 . 0 1 A p p o i n t m e n t , D u t i e s I m m u n i t i e s a n d L i a b i l i t i e s o f T r u s t e e .
( A ) U . S . B a n k N a t i o n a l A s s o c i a t i o n i s h e r e b y a p p o i n t e d a s T r u s t e e u n d e r t h i s
I n d e n t u r e a n d h e r e b y a c c e p t s t h e t r u s t i m p o s e d u p o n i t a s T r u s t e e h e r e u n d e r a n d t o p e r f o r m a l l
t h e f u n c t i o n s a n d d u t i e s o f t h e T r u s t e e h e r e u n d e r , s u b j e c t t o t h e t e r m s a n d c o n d i t i o n s s e t f o r t h i n
t h i s I n d e n t u r e . T h e T r u s t e e s h a l l , p r i o r t o a n E v e n t o f D e f a u l t , a n d a f t e r t h e c u r i n g o f a l l E v e n t s
o f D e f a u l t w h i c h m a y h a v e o c c u r r e d , p e r f o r m s u c h d u t i e s a n d o n l y s u c h d u t i e s a s a r e s p e c i f i c a l l y
s e t f o r t h i n t h i s I n d e n t u r e a n d n o i m p l i e d c o v e n a n t s s h a l l b e r e a d i n t o t h i s I n d e n t u r e a g a i n s t t h e
T r u s t e e . T h e T r u s t e e s h a l l , d u r i n g t h e e x i s t e n c e o f a n y E v e n t o f D e f a u l t ( w h i c h h a s n o t b e e n
c u r e d ) , e x e r c i s e s u c h o f t h e r i g h t s a n d p o w e r s v e s t e d i n i t b y t h i s I n d e n t u r e , a n d u s e t h e s a m e
d e g r e e o f c a r e a n d s k i l l i n t h e i r e x e r c i s e , a s a p r u d e n t p e r s o n w o u l d e x e r c i s e o r u s e u n d e r t h e
c i r c u m s t a n c e s i n t h e c o n d u c t o f h i s o r h e r o w n a f f a i r s .
( B ) T h e C o m m i s s i o n m a y r e m o v e t h e T r u s t e e a t a n y t i m e u n l e s s a n E v e n t o f D e f a u l t
s h a l l h a v e o c c u r r e d a n d t h e n b e c o n t i n u i n g , a n d s h a l l r e m o v e t h e T r u s t e e i f a t a n y t i m e r e q u e s t e d
t o d o s o b y a n i n s t r u m e n t o r c o n c u r r e n t i n s t r u m e n t s i n w r i t i n g s i g n e d b y t h e H o l d e r s o f n o t l e s s
t h a n a m a j o r i t y i n a g g r e g a t e a m o u n t o f B o n d O b l i g a t i o n o f t h e B o n d s t h e n O u t s t a n d i n g ( o r t h e i r
a t t o r n e y s d u l y a u t h o r i z e d i n w r i t i n g ) o r i f a t a n y t i m e t h e T r u s t e e s h a l l c e a s e t o b e e l i g i b l e i n
a c c o r d a n c e w i t h s u b s e c t i o n ( E ) o f t h i s S e c t i o n , o r s h a l l b e c o m e i n c a p a b l e o f a c t i n g , o r s h a l l b e
a d j u d g e d a b a n k r u p t o r i n s o l v e n t , o r a r e c e i v e r o f t h e T r u s t e e o r i t s p r o p e r t y s h a l l b e a p p o i n t e d ,
o r a n y p u b l i c o f f i c e r s h a l l t a k e c o n t r o l o r c h a r g e o f t h e T r u s t e e o r o f i t s p r o p e r t y o r a f f a i r s f o r t h e
p u r p o s e o f r e h a b i l i t a t i o n , c o n s e r v a t i o n o r l i q u i d a t i o n , i n e a c h c a s e b y g i v i n g w r i t t e n n o t i c e o f
s u c h r e m o v a l t o t h e T r u s t e e a n d e a c h C r e d i t P r o v i d e r t h e n p r o v i d i n g a C r e d i t E n h a n c e m e n t f o r
a n y S e r i e s o f B o n d s , a n d t h e r e u p o n s h a l l a p p o i n t a s u c c e s s o r T r u s t e e b y a n i n s t r u m e n t i n
w r i t i n g .
( C ) T h e T r u s t e e m a y a t a n y t i m e r e s i g n b y g i v i n g w r i t t e n n o t i c e o f s u c h r e s i g n a t i o n t o
t h e C o m m i s s i o n a n d e a c h C r e d i t P r o v i d e r t h e n i n s u r i n g a n y S e r i e s o f B o n d s a n d b y g i v i n g t h e
B o n d h o l d e r s n o t i c e o f s u c h r e s i g n a t i o n b y m a i l a t t h e a d d r e s s e s s h o w n o n t h e r e g i s t r a t i o n b o o k s
m a i n t a i n e d b y t h e T r u s t e e . U p o n r e c e i v i n g s u c h n o t i c e o f r e s i g n a t i o n , t h e C o m m i s s i o n s h a l l
p r o m p t l y a p p o i n t a s u c c e s s o r T r u s t e e b y a n i n s t r u m e n t i n w r i t i n g .
( D ) A n y r e m o v a l o r r e s i g n a t i o n o f t h e T r u s t e e a n d a p p o i n t m e n t o f a s u c c e s s o r T r u s t e e
s h a l l b e c o m e e f f e c t i v e u p o n a c c e p t a n c e o f a p p o i n t m e n t b y t h e s u c c e s s o r T r u s t e e . I f n o
s u c c e s s o r T r u s t e e s h a l l h a v e b e e n a p p o i n t e d a n d h a v e a c c e p t e d a p p o i n t m e n t w i t h i n f o r t y - f i v e
( 4 5 ) d a y s o f g i v i n g n o t i c e o f r e m o v a l o r n o t i c e o f r e s i g n a t i o n a s a f o r e s a i d , t h e r e s i g n i n g T r u s t e e
o r a n y B o n d h o l d e r ( o n b e h a l f o f h i m s e l f a n d a l l o t h e r B o n d h o l d e r s ) m a y p e t i t i o n a n y c o u r t o f
c o m p e t e n t j u r i s d i c t i o n f o r t h e a p p o i n t m e n t o f a s u c c e s s o r T r u s t e e , a n d s u c h c o u r t m a y
t h e r e u p o n , a f t e r s u c h n o t i c e ( i f a n y ) a s i t m a y d e e m p r o p e r , a p p o i n t s u c h s u c c e s s o r T r u s t e e . A n y
s u c c e s s o r T r u s t e e a p p o i n t e d u n d e r t h i s I n d e n t u r e , s h a l l s i g n i f y i t s a c c e p t a n c e o f s u c h
O H S W e s t : 2 6 0 3 7 9 4 7 5 . 8
5 3
2 0 4
appointment by executing and delivering to the Commission, each Credit Provider then insuring
any Series of Bonds and to its predecessor Trustee a written acceptance thereof, and thereupon
such successor Trustee, without any further act, deed or conveyance, shall become vested with
all the moneys, estates, properties, rights, powers, trusts, duties and obligations of such
predecessor Trustee, with like effect as if originally named Trustee herein; but, nevertheless at
the Request of the Commission or the request of the successor Trustee, such predecessor Trustee
shall execute and deliver any and all instruments of conveyance or further assurance and do such
other things as may reasonably be required for more fully and certainly vesting in and
confirming to such successor Trustee all the right, title and interest of such predecessor Trustee
in and to any property held by it under this Indenture and shall pay over, transfer, assign and
deliver to the successor Trustee any money or other property subject to the trusts and conditions
herein set forth. Upon request of the successor Trustee, the Commission shall execute and
deliver any and all instruments as may be reasonably required for more fully and certainly
vesting in and confirming to such successor Trustee all such moneys, estates, properties, rights,
powers, trusts, duties and obligations. Upon acceptance of appointment by a successor Trustee
as provided in this subsection, the Commission shall give notice of the succession of such
Trustee to the trusts hereunder by mail to the Bondholders at the addresses shown on the
registration books maintained by the Trustee. If the Commission fails to mail such notice within
fifteen (15) days after acceptance of appointment by the successor Trustee, the successor Trustee
shall cause such notice to be mailed at the expense of the Commission.
(E) Any Trustee appointed under the provisions of this Section in succession to the
Trustee shall be a trust company or bank having the powers of a trust company having (or, if
such trust company or bank is a member of a bank holding company system, the related bank
holding company shall have) a combined capital and surplus of at least one hundred million
dollars ($100,000,000), and subject to supervision or examination by federal or state authority.
If such bank or trust company or bank holding company publishes a report of condition at least
annually, pursuant to law or to the requirements of any supervising or examining authority above
referred to, then for the purpose of this subsection the combined capital and surplus of such bank
or trust company shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. In case at any time the Trustee shall cease to be eligible
in accordance with the provisions of this subsection (E), the Trustee shall resign immediately in
the manner and with the effect specified in this Section.
SECTION 8.02 Accounting Records and Monthly Statements. The Trustee shall
keep proper books of record and accounts containing complete and correct entries of all
transactions relating to the receipt, investment, disbursement, allocation and application of the
moneys related to the Bonds, including proceeds of each Series of Bonds and moneys derived
from, pledged to, or to be used to make payments on each Series of Bonds. Such records shall
specify the account or fund to which each deposit and each investment (or portion thereof) held
by the Trustee is allocated and shall set forth, in the case of each investment security, (a) its
purchase price, (b) identifying information, including par amount, coupon rate, and payment
dates, (c) the amount received at maturity or its sale price, as the case may be, including accrued
interest, (d) the amounts and dates of any payments made with respect thereto, and (e) the dates
of acquisition and disposition or maturity. The Trustee shall furnish the Commission with a
monthly statement which shall include a summary of all deposits and all investment transactions
related to each Series of Bonds then Outstanding, such statement to be provided to the
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"
C o m m i s s i o n n o l a t e r t h a n t h e f i f t h ( 5 t h ) B u s i n e s s D a y o f t h e m o n t h f o l l o w i n g t h e m o n t h t o
w h i c h s u c h s t a t e m e n t r e l a t e s , t h e f i r s t s u c h m o n t h l y s t a t e m e n t t o b e p r o v i d e d b y t h e f i f t h ( 5 t h )
B u s i n e s s D a y o f t h e m o n t h i m m e d i a t e l y f o l l o w i n g t h e m o n t h i n w h i c h t h e 2 0 0 8 B o n d s a r e
d e l i v e r e d b y t h e T r u s t e e p u r s u a n t t o t h e p r o v i s i o n s o f t h i s I n d e n t u r e .
S E C T I O N 8 . 0 3 M e r g e r o r C o n s o l i d a t i o n . A n y c o m p a n y i n t o w h i c h t h e T r u s t e e
m a y b e m e r g e d o r c o n v e r t e d o r w i t h w h i c h i t m a y b e c o n s o l i d a t e d o r a n y c o m p a n y r e s u l t i n g
f r o m a n y m e r g e r , c o n v e r s i o n o r c o n s o l i d a t i o n t o w h i c h i t s h a l l b e a p a r t y o r a n y c o m p a n y t o
w h i c h t h e T r u s t e e m a y s e l l o r t r a n s f e r a l l o r s u b s t a n t i a l l y a l l o f i t s c o r p o r a t e t r u s t b u s i n e s s ,
p r o v i d e d s u c h c o m p a n y s h a l l b e e l i g i b l e u n d e r s u b s e c t i o n ( E ) o f S e c t i o n 8 . 0 1 , s h a l l b e t h e
s u c c e s s o r t o s u c h T r u s t e e w i t h o u t t h e e x e c u t i o n o r f i l i n g o f a n y p a p e r o r a n y f u r t h e r a c t ,
a n y t h i n g h e r e i n t o t h e c o n t r a r y n o t w i t h s t a n d i n g .
S E C T I O N 8 . 0 4 L i a b i l i t y o f T r u s t e e .
( A ) T h e r e c i t a l s o f f a c t s h e r e i n a n d i n t h e B o n d s c o n t a i n e d s h a l l b e t a k e n a s
s t a t e m e n t s o f t h e C o m m i s s i o n , a n d t h e T r u s t e e a s s u m e s n o r e s p o n s i b i l i t y f o r t h e c o r r e c t n e s s o f
t h e s a m e ( o t h e r t h a n t h e c e r t i f i c a t e o f a u t h e n t i c a t i o n o f t h e T r u s t e e o n e a c h B o n d ) , a n d m a k e s n o
r e p r e s e n t a t i o n s a s t o t h e v a l i d i t y o r s u f f i c i e n c y o f t h i s I n d e n t u r e , o r o f t h e B o n d s , a s t o t h e
s u f f i c i e n c y o f t h e R e v e n u e s o r t h e p r i o r i t y o f t h e l i e n o f t h i s I n d e n t u r e t h e r e o n , o r a s t o t h e
f i n a n c i a l o r t e c h n i c a l f e a s i b i l i t y o f a n y p o r t i o n o f t h e P r o j e c t a n d s h a l l n o t i n c u r a n y
r e s p o n s i b i l i t y i n r e s p e c t o f a n y s u c h m a t t e r , o t h e r t h a n i n c o n n e c t i o n w i t h t h e d u t i e s o r
o b l i g a t i o n s e x p r e s s l y h e r e i n o r i n t h e B o n d s a s s i g n e d t o o r i m p o s e d u p o n i t . T h e T r u s t e e s h a l l ,
h o w e v e r , b e r e s p o n s i b l e f o r i t s r e p r e s e n t a t i o n s c o n t a i n e d i n i t s c e r t i f i c a t e o f a u t h e n t i c a t i o n o n t h e
B o n d s . T h e T r u s t e e s h a l l n o t b e l i a b l e i n c o n n e c t i o n w i t h t h e p e r f o r m a n c e o f i t s d u t i e s
h e r e u n d e r , e x c e p t f o r i t s o w n n e g l i g e n c e , w i l l f u l m i s c o n d u c t o r b r e a c h o f t h e e x p r e s s t e r m s a n d
c o n d i t i o n s h e r e o f . T h e T r u s t e e a n d i t s d i r e c t o r s , o f f i c e r s , e m p l o y e e s o r a g e n t s m a y i n g o o d f a i t h
b u y , s e l l , o w n , h o l d a n d d e a l i n a n y o f t h e B o n d s a n d m a y j o i n i n a n y a c t i o n w h i c h a n y H o l d e r o f
a B o n d m a y b e e n t i t l e d t o t a k e , w i t h l i k e e f f e c t a s i f t h e T r u s t e e w a s n o t t h e T r u s t e e u n d e r t h i s
I n d e n t u r e . T h e T r u s t e e m a y i n g o o d f a i t h h o l d a n y o t h e r f o r m o f i n d e b t e d n e s s o f t h e
C o m m i s s i o n , o w n , a c c e p t o r n e g o t i a t e a n y d r a f t s , b i l l s o f e x c h a n g e , a c c e p t a n c e s o r o b l i g a t i o n s
o f t h e C o m m i s s i o n a n d m a k e d i s b u r s e m e n t s f o r t h e C o m m i s s i o n a n d e n t e r i n t o a n y c o m m e r c i a l
o r b u s i n e s s a r r a n g e m e n t t h e r e w i t h , w i t h o u t l i m i t a t i o n .
( B ) T h e T r u s t e e s h a l l n o t b e l i a b l e f o r a n y e r r o r o f j u d g m e n t m a d e i n g o o d f a i t h b y a
r e s p o n s i b l e o f f i c e r u n l e s s i t s h a l l b e p r o v e d t h a t t h e T r u s t e e w a s n e g l i g e n t i n a s c e r t a i n i n g t h e
p e r t i n e n t f a c t s . T h e T r u s t e e m a y e x e c u t e a n y o f t h e t r u s t s o r p o w e r s h e r e o f a n d p e r f o r m t h e
d u t i e s r e q u i r e d o f i t h e r e u n d e r b y o r t h r o u g h a t t o r n e y s , a g e n t s , o r r e c e i v e r s , a n d s h a l l b e e n t i t l e d
t o a d v i c e o f c o u n s e l c o n c e r n i n g a l l m a t t e r s o f t r u s t a n d i t s d u t y h e r e u n d e r .
( C ) T h e T r u s t e e s h a l l n o t b e l i a b l e w i t h r e s p e c t t o a n y a c t i o n t a k e n o r o m i t t e d t o b e
t a k e n b y i t i n g o o d f a i t h i n a c c o r d a n c e w i t h t h e d i r e c t i o n o f t h e H o l d e r s o f n o t l e s s t h a n a
m a j o r i t y i n a g g r e g a t e p r i n c i p a l a m o u n t o f t h e B o n d s a t t h e t i m e O u t s t a n d i n g r e l a t i n g t o t h e t i m e ,
m e t h o d a n d p l a c e o f c o n d u c t i n g a n y p r o c e e d i n g f o r a n y r e m e d y a v a i l a b l e t o t h e T r u s t e e , o r
e x e r c i s i n g a n y t r u s t o r p o w e r c o n f e r r e d u p o n t h e T r u s t e e u n d e r t h i s I n d e n t u r e .
O H S W e s t 2 6 0 3 7 4 4 7 5 . 8
5 5
2 0 6
(D) The Trustee shall be under no obligation to exercise any of the rights or powers.
vested in it by this Indenture at the request, order or direction of any Credit Provider or any of
the Bondholders pursuant to the provisions of this Indenture, including, without limitation, the
provisions of Article VII hereof, unless such Credit Provider or such Bondholders shall have
offered to the Trustee security or indemnity satisfactory to it against the costs, expenses and
liabilities which may be incurred therein or thereby; provided, however, that no security or
indemnity shall be requested or required for the Trustee to deliver a notice to obtain funds under
the Credit Enhancement delivered in connection with any Series of Bonds in order to pay
principal of and interest on such Series of Bonds.
(E) No provision of this Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur any financial liability in the performance or exercise of any of its duties
hereunder or in the exercise of its rights or powers.
(F) The Trustee shall not be deemed to have knowledge of, and shall not be required
to take any action with respect to, any Event of Default (other than an Event of Default described
in subsections (A) or (B) of Section 7.01) or event that would, with the giving of notice, the
passage of time or both, constitute an Event of Default, unless the Trustee shall have actual
knowledge of such event or shall have been notified of such event by the Commission, any
Credit Provider then providing a Credit Enhancement for a Series of Bonds or the Holders of
twenty-five percent (25%) of the Bond Obligation Outstanding. Without limiting the generality
of the foregoing, the Trustee shall not be required to ascertain, monitor or inquire as to the
performance or observance by the Commission of the terms, conditions, covenants or agreements
set forth in Article VI hereof (including, without limitation, the covenants of the Commission set
forth in Section 5.09 and 6.08 hereof, other than the covenants of the Commission to make
payments with respect to the Bonds when due as set forth in Section 6.01 and to file with the
Trustee when due, such reports and certifications as the Commission is required to file with the
Trustee hereunder.
(G) No permissive power, right or remedy conferred upon the Trustee hereunder shall
be construed to impose a duty to exercise such power, right or remedy.
(H) The Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, requisition, bond, debenture, coupon or other paper or document but
the Trustee, in its discretion, may make such further inquiry or investigation into such facts or
matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and premises of the Commission,
personally or by agent or attorney.
(I) The Trustee shall not be responsible for:
(1) the application or handling by the Commission of any Revenues or other
moneys transferred to or pursuant to any Requisition or Request of the Commission in
accordance with the terms and conditions hereof;
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(2) the application and handling by the Commission of any other fund or
account designated to be held by the Commission hereunder,
(3) any error or omission by the Commission in making any computation or
giving any instruction pursuant to Section 5.09 and Section 6.08 and may rely
conclusively on the Rebate Instructions and any computations or instructions furnished to
it by the Commission in connection with the requirements of Section 5.09, Section 6.08
and each Tax Certificate;
(4) the construction, operation or maintenance of any portion of the Project by
the Commission.
(J) Whether or not therein expressly so provided, every provision of this Indenture
relating to the conduct or affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Article VIII.
(K) The Trustee agrees to accept and act upon written instructions and/or directions
provided by Electronic Means pursuant hereto, provided, however, that: (i) subsequent to such
facsimile transmission of written instructions and/or directions the Trustee shall forthwith
receive the originally executed instructions and/or directions, and (ii) such originally executed
instructions and/or directions shall be signed on behalf of the Commission by an Authorized
Representative and shall be signed on behalf of any other party by a person authorized to sign for
the party delivering such instructions and/or directions, which person shall provide such
documentation as the Trustee shall request in order to evidence such authorization.
SECTION 8.05 Right of Trustee to Rely on Documents and Opinions. The Trustee
shall be protected in acting upon any notice, resolution, request, consent, order, certificate,
report, opinion, note or other paper or document believed by it to be genuine and to have been
signed or presented by the proper party or parties. The Trustee may consult with counsel,
including, without limitation, counsel of or to the Commission, and may request an opinion of
counsel, with regard to legal questions, including, without limitation, legal questions relating to
proposed modifications or amendments of this Indenture, and the opinion of such counsel shall
be full and complete authorization and protection in respect of any action taken or suffered by it
hereunder in good faith and in accordance therewith unless it shall be proved that the Trustee
was negligent in ascertaining the pertinent facts.
Whenever in the administration of the trusts imposed upon it by this Indenture the
Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking
or suffering any action hereunder, including, without limitation, matters relating to proposed
modifications or amendments of this Indenture, the Trustee may request a Certificate of the
Commission and such matter (unless other evidence in respect thereof be herein specifically
prescribed) may be deemed to be conclusively proved and established by such Certificate of the
Commission, and such Certificate shall be full warrant to the Trustee for any action taken or
suffered in good faith under the provisions of this Indenture in reliance upon such Certificate, but
in its discretion the Trustee may, in lieu thereof, accept other evidence of such matter or may
require such additional evidence as to it may seem reasonable. The Trustee may also rely
conclusively on any report, statement, requisition, facsimile transmission, electronic mail or
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certification of any certified public accountant, investment banker, financial consultant, or other
expert selected by the Commission or selected by the Trustee with due care in connection with
matters required to be proven or ascertained in connection with its administration of the trusts
created hereby.
SECTION 8.06 Compensation and Indemnification of Trustee. The Commission
covenants to pay to the Trustee from time to time, and the Trustee shall be entitled to, reasonable
compensation for all services rendered by it in the exercise and performance of any of the powers
and duties hereunder of the Trustee, and the Commission will pay or reimburse the Trustee upon
its request for all expenses, disbursements and advances incurred or made by the Trustee in
accordance with any of the provisions of this Indenture (including the reasonable compensation
and the expenses and disbursements of its counsel and of all persons not regularly in its employ)
except any such expense, disbursement or advance as may arise from its negligence, default or
willful misconduct. The Commission, to the extent permitted by law, shall indemnify, defend
and hold harmless the Trustee against any loss, damages, liability or expense incurred without
negligence or bad faith on the part of the Trustee, arising out of or in connection with the
acceptance or administration of the trusts created hereby, including costs and expenses
(including attorneys' fees) of defending itself against any claim or liability in connection with the
exercise or performance of any of its powers hereunder. The rights of the Trustee and the
obligations of the Commission under this Section 8.06 shall survive the discharge of the Bonds
and this Indenture and the resignation or removal of the Trustee.
ARTICLE IX
MODIFICATION OR AMENDMENT OF THIS INDENTURE
SECTION 9.01 Amendments Permitted.
(A) (1) This Indenture and the rights and obligations of the Commission, the
Holders of the Bonds and the Trustee may be modified or amended from time to time and at any
time by a Supplemental Indenture, which the Commission and the Trustee may enter into when
the written consent of the Holders of a majority in aggregate amount of Bond Obligation of the
Bonds (or, if such Supplemental Indenture is only applicable to a Series of Bonds, such Series of
Bonds) then Outstanding shall have been filed with the Trustee; provided that if such
modification or amendment will, by its terms, not take effect so long as any Bonds of any
particular maturity remain Outstanding, the consent of the Holders of such Bonds shall not be
required and such Bonds shall not be deemed to be Outstanding for the purpose of any
calculation of Bonds Outstanding under this Section.
(2) No such modification or amendment shall (a) extend the maturity of any
Bond, or reduce the amount of principal thereof, or extend the time of payment or reduce the
amount of any Mandatory Sinking Account Payment provided for the payment of any Bond, or
reduce the rate of interest thereon, or extend the time of payment of interest thereon, or reduce
any premium payable upon the redemption thereof, without the consent of the Holder of each
Bond so affected, or (b) reduce the aforesaid percentage of Bond Obligation the consent of the
Holders of which is required to effect any such modification or amendment, or permit the
creation of any lien on the Revenues and other assets pledged under this Indenture prior to or on
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a p a r i t y w i t h t h e l i e n c r e a t e d b y t h i s I n d e n t u r e , o r d e p r i v e t h e H o l d e r s o f t h e B o n d s o f t h e l i e n
c r e a t e d b y t h i s I n d e n t u r e o n s u c h R e v e n u e s a n d o t h e r a s s e t s ( i n e a c h c a s e , e x c e p t a s e x p r e s s l y
p r o v i d e d i n t h i s I n d e n t u r e ) , w i t h o u t t h e c o n s e n t o f t h e H o l d e r s o f a l l o f t h e B o n d s t h e n
O u t s t a n d i n g . I t s h a l l n o t b e n e c e s s a r y f o r t h e c o n s e n t o f t h e B o n d h o l d e r s t o a p p r o v e t h e
p a r t i c u l a r f o r m o f a n y S u p p l e m e n t a l I n d e n t u r e , b u t i t s h a l l b e s u f f i c i e n t i f s u c h c o n s e n t s h a l l
a p p r o v e t h e s u b s t a n c e t h e r e o f . P r o m p t l y a f t e r t h e e x e c u t i o n a n d d e l i v e r y b y t h e C o m m i s s i o n
a n d t h e T r u s t e e o f a n y S u p p l e m e n t a l I n d e n t u r e p u r s u a n t t o t h i s S e c t i o n 9 . 0 1 ( A ) , t h e T r u s t e e s h a l l
m a i l a n o t i c e , s e t t i n g f o r t h i n g e n e r a l t e r m s t h e s u b s t a n c e o f s u c h S u p p l e m e n t a l I n d e n t u r e t o t h e
H o l d e r s o f t h e B o n d s a t t h e a d d r e s s e s s h o w n o n t h e r e g i s t r a t i o n b o o k s o f t h e T r u s t e e . A n y
f a i l u r e t o g i v e s u c h n o t i c e , o r a n y d e f e c t t h e r e i n , s h a l l n o t , h o w e v e r , i n a n y w a y i m p a i r o r a f f e c t
t h e v a l i d i t y o f a n y s u c h S u p p l e m e n t a l I n d e n t u r e .
( B ) T h i s I n d e n t u r e a n d t h e r i g h t s a n d o b l i g a t i o n s o f t h e C o m m i s s i o n , o f t h e T r u s t e e
a n d o f t h e H o l d e r s o f t h e B o n d s m a y a l s o b e m o d i f i e d o r a m e n d e d f r o m t i m e t o t i m e a n d a t a n y
t i m e b y a S u p p l e m e n t a l I n d e n t u r e , w h i c h t h e C o m m i s s i o n a n d t h e T r u s t e e m a y e n t e r i n t o
w i t h o u t t h e c o n s e n t o f a n y B o n d h o l d e r s , b u t o n l y t o t h e e x t e n t p e r m i t t e d b y A c t a n d o n l y f o r a n y
o n e o r m o r e o f t h e f o l l o w i n g p u r p o s e s :
( 1 ) t o a d d t o t h e c o v e n a n t s a n d a g r e e m e n t s o f t h e C o m m i s s i o n i n t h i s
I n d e n t u r e c o n t a i n e d o t h e r c o v e n a n t s a n d a g r e e m e n t s t h e r e a f t e r t o b e o b s e r v e d , t o p l e d g e
o r a s s i g n a d d i t i o n a l s e c u r i t y f o r t h e B o n d s ( o r a n y p o r t i o n t h e r e o f ) , o r t o s u r r e n d e r a n y
r i g h t o r p o w e r h e r e i n r e s e r v e d t o o r c o n f e r r e d u p o n t h e C o m m i s s i o n ;
( 2 ) t o m a k e s u c h p r o v i s i o n s f o r t h e p u r p o s e o f c u r i n g a n y a m b i g u i t y ,
i n c o n s i s t e n c y o r o m i s s i o n , o r o f c u r i n g o r c o r r e c t i n g a n y d e f e c t i v e p r o v i s i o n , c o n t a i n e d
i n t h i s I n d e n t u r e , o r i n r e g a r d t o m a t t e r s o r q u e s t i o n s a r i s i n g u n d e r t h i s I n d e n t u r e , a s t h e
C o m m i s s i o n m a y d e e m n e c e s s a r y o r d e s i r a b l e , a n d w h i c h s h a l l n o t m a t e r i a l l y a n d
a d v e r s e l y a f f e c t t h e i n t e r e s t s o f t h e H o l d e r s o f t h e B o n d s ;
( 3 ) t o m o d i f y , a m e n d o r s u p p l e m e n t t h i s I n d e n t u r e i n s u c h m a n n e r a s t o
p e r m i t t h e q u a l i f i c a t i o n h e r e o f u n d e r t h e T r u s t I n d e n t u r e A c t o f 1 9 3 9 , a s a m e n d e d , o r a n y
s i m i l a r f e d e r a l s t a t u t e h e r e a f t e r i n e f f e c t , a n d t o a d d s u c h o t h e r t e r m s , c o n d i t i o n s a n d
p r o v i s i o n s a s m a y b e p e r m i t t e d b y s a i d a c t o r s i m i l a r f e d e r a l s t a t u t e , a n d w h i c h s h a l l n o t
m a t e r i a l l y a n d a d v e r s e l y a f f e c t t h e i n t e r e s t s o f t h e H o l d e r s o f t h e B o n d s ;
( 4 ) t o p r o v i d e f o r t h e i s s u a n c e o f a n a d d i t i o n a l S e r i e s o f B o n d s p u r s u a n t t o t h e
p r o v i s i o n s o f A r t i c l e I I I h e r e o f ;
( 5 ) t o m a k e m o d i f i c a t i o n s o r a d j u s t m e n t s n e c e s s a r y , a p p r o p r i a t e o r d e s i r a b l e
t o p r o v i d e f o r t h e i s s u a n c e o r i n c u r r e n c e , a s a p p l i c a b l e , o f C a p i t a l A p p r e c i a t i o n B o n d s ,
P a r i t y O b l i g a t i o n s , S u b o r d i n a t e O b l i g a t i o n s o r V a r i a b l e R a t e I n d e b t e d n e s s , w i t h s u c h
i n t e r e s t r a t e , p a y m e n t , m a t u r i t y a n d o t h e r t e r m s a s t h e C o m m i s s i o n m a y d e e m d e s i r a b l e ;
s u b j e c t t o t h e p r o v i s i o n s o f S e c t i o n 3 . 0 2 , S e c t i o n 3 . 0 3 a n d S e c t i o n 3 . 0 5 ;
( 6 ) t o m a k e m o d i f i c a t i o n s o r a d j u s t m e n t s n e c e s s a r y , a p p r o p r i a t e o r d e s i r a b l e
t o p r o v i d e f o r c h a n g e f r o m o n e i n t e r e s t r a t e m o d e t o a n o t h e r i n c o n n e c t i o n w i t h a n y
S e r i e s o f B o n d s ;
O H S W e s t : 2 6 0 3 7 9 4 7 5 . 8
5 9
2 1 0
(7) to make modifications or adjustments necessary, appropriate or desirable
to accommodate Credit Enhancements, Liquidity Facilities and Reserve Facilities;
(8) to make modifications or adjustments necessary, appropriate or desirable
to provide for the appointment of an auction agent, a broker -dealer, a remarketing agent,
a tender agent and/or a paying agent in connection with any Series of Bonds;
(9) to modify the auction provisions applicable to any Series of Bonds in
accordance with the terms and provisions set forth in the Supplemental Indenture
establishing the terms and provisions of such Series of Bonds;
(10) to provide for any additional covenants or agreements necessary to
maintain the tax-exempt status of interest on any Series of Bonds;
(11) if the Commission agrees in a Supplemental Indenture to maintain the
exclusion of interest on a Series of Bonds from gross income for purposes of federal
income taxation, to make such provisions as are necessary or appropriate to ensure such
exclusion;
(12) to provide for the issuance of Bonds in book -entry form or bearer form
and/or to modify or eliminate the book -entry registration system for any Series of Bonds;
(13) to modify, alter, amend or supplement this Indenture in any other respect,
including amendments that would otherwise be described in Section 9.01(A), if the
effective date of such amendments is a date on which all Bonds affected thereby are
subject to mandatory tender for purchase pursuant to the provisions of this Indenture or if
notice of the proposed amendments is given to Holders of the affected Bonds at least
thirty (30) days before the proposed effective date of such amendments and, on or before
such effective date, such Holders have the right to demand purchase of their Bonds
pursuant to the provisions of this Indenture or if all Bonds affected thereby are in an
auction mode and a successful auction is held following notice of such amendment; and
(14) for any other purpose that does not materially and adversely affect the
interests of the Holders of the Bonds.
Any Supplemental Indenture entered into pursuant to this Section shall be deemed not to
materially adversely affect the interest of the Holders so long as (i) all Bonds are secured by a
Credit Enhancement and (ii) each Credit Provider shall have given its written consent to such
Supplemental Indenture as provided in Section 9.01(A).
SECTION 9.02 Effect of Supplemental Indenture. From and after the time any
Supplemental Indenture becomes effective pursuant to this Article, this Indenture shall be
deemed to be modified and amended in accordance therewith, and the respective rights, duties
and obligations under this Indenture of the Commission, the Trustee and all Holders of Bonds
Outstanding shall thereafter be determined, exercised and enforcedhereunder subject in all
respects to such modification and amendment, and all the terms and conditions of any such
Supplemental Indenture shall be deemed to be part of the terms and conditions of this Indenture
for any and all purposes.
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SECTION 9.03 Endorsement of Bonds; Preparation of New Bonds. Bonds
delivered after any Supplemental Indenture becomes effective pursuant to this Article may, and
if the Trustee so determines shall, bear a notation by endorsement or otherwise in form approved
by the Commission and the Trustee as to any modification or amendment provided for in such
Supplemental Indenture, and, in that case, upon demand of the Holder of any Bond. Outstanding
at the time of such execution and presentation of his Bond for such purpose at the Corporate
Trust Office or at such additional offices as the Trustee may select and designate for that
purpose, a suitable notation shall be made on such Bond. If the Supplemental Indenture shall so
provide, new Bonds so modified as to conform, in the opinion of the Commission and the
Trustee, to any modification or amendment contained in such Supplemental Indenture, shall be
prepared and executed by the Commission and authenticated by the Trustee, and upon demand of
the Holders of any Bonds then Outstanding shall be exchanged at the Corporate Trust Office,
without cost to any Bondholder, for Bonds then Outstanding, upon surrender for cancellation of
such Bonds, in equal aggregate principal amounts of the same Series, tenor and maturity.
SECTION 9.04 Amendment of Particular Bonds. The provisions of this Article
shall not prevent any Bondholder from accepting any amendment as to the particular Bonds held
by him, provided that due notation thereof is made on such Bonds.
ARTICLE X
DEFEASANCE
SECTION 10.01 Discharge of Indenture. Bonds of any Series or a portion thereof
may be paid by the Commission in any of the following ways:
(A) by paying or causing to be paid the Bond Obligations of and interest on such
Outstanding Bonds, as and when they become due and payable;
(B) by depositing with the Trustee, an escrow agent or other fiduciary, in trust, at or
before maturity, money or securities in the necessary amount (as provided in Section 10.03) to
pay or redeem such Outstanding Bonds; or
(C) by delivering to the Trustee, for cancellation by it, such Outstanding Bonds.
If the Commission shall pay all Series for which any Bonds are Outstanding and also pay
or cause to be paid all other sums payable hereunder by the Commission, then and in that case, at
the election of the Commission (evidenced by a Certificate of the Commission, filed with the
Trustee, signifying the intention of the Commission to discharge all such indebtedness and this
Indenture), and notwithstanding that any Bonds shall not have been surrendered for payment,
this Indenture and the pledge of Sales Tax Revenues and other assets made under this Indenture
and all covenants, agreements and other obligations of the Commission under this Indenture shall
cease, terminate, become void and be completely discharged and satisfied. In such event, upon
Request of the Commission, the Trustee shall cause an accounting for such period or periods as
may be requested by the Commission to be prepared and filed with the Commission and shall
execute and deliver to the Commission all such instruments as may be necessary or desirable to
evidence such discharge and satisfaction, and the Trustee shall pay over, transfer, assign or
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deliver to the Commission all moneys or securities or other property held by it pursuant to this
Indenture which, as evidenced by a verification report, upon which the Trustee may conclusively
rely, from an independent certified public accountant, a firm of independent certified public
accountants or other independent consulting firm, are not required for the payment or redemption
of Bonds not theretofore surrendered for such payment or redemption.
SECTION 10.02 Discharge of Liability on Bonds. Upon the deposit with the
Trustee, escrow agent or other fiduciary, in trust, at or before maturity, of money or securities in
the necessary amount (as provided in Section 10.03) to pay or redeem any Outstanding Bond
(whether upon or prior to its maturity or the redemption date of such Bond), provided that, if
such Bond is to be redeemed prior to maturity, notice of such redemption shall have been given
as in Article IV provided or provision satisfactory to the Trustee shall have been made for the
giving of such notice, then all liability of the Commission in respect of such Bond shall cease,
terminate and be completely discharged, provided that the Holder thereof shall thereafter be
entitled to the payment of the principal of and premium, if any, and interest on the Bonds, and
the Commission shall remain liable for such payment, but only out of such money or securities
deposited with the Trustee as aforesaid for their payment.
If the Bonds being discharged are Variable Rate Indebtedness, (i) the Bonds shall be
redeemed at the first possible redemption date or purchase date applicable to such Bonds and to
the extent the rate of interest payable on such Bonds prior to such redemption or purchase date is
not known, such rate of interest shall be assumed to be the maximum rate payable thereon or (ii)
the Trustee shall receive a confirmation from the Rating Agency then rating the Bonds that the
defeasance will not result in the reduction or withdrawal of the then -current ratings on the Bonds.
The Commission may at any time surrender to the Trustee for cancellation by it any
Bonds previously issued and delivered, which the Commission may have acquired in any manner
whatsoever, and such Bonds, upon such surrender and cancellation, shall be deemed to be paid
and retired.
Notwithstanding anything in this Section 10.02 to the contrary, if the principal of or
interest on a Series of Bonds shall be paid by a Credit Provider pursuant to the Credit
Enhancement issued in connection with such Series of Bonds, the obligations of the Commission
shall not be deemed to be satisfied or considered paid by the Commission by virtue of such
payments, and the right, title and interest of the Commission herein and the obligations of the
Commission hereunder shall not be discharged and shall continue to existand to run to the
benefit of such Credit Provider, and such Credit Provider shall be subrogated to the rights of the
Holders of the Bonds of such Series.
SECTION 10.03 Deposit of Money or Securities. Whenever in this Indenture it is
provided or permitted that there be deposited with or held in trust money or securities in the
necessary amount to pay or redeem any Bonds, the money or securities so to be deposited or held
may include money or securities held by the Trustee in the funds and accounts established
pursuant to this Indenture and shall be:
(A) lawful money of the United States of America in an amount equal to the principal
amount of such Bonds and all unpaid interest thereon to maturity, except that, in the case of
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B o n d s w h i c h a r e t o b e r e d e e m e d p r i o r t o m a t u r i t y a n d i n r e s p e c t o f w h i c h n o t i c e o f s u c h
r e d e m p t i o n s h a l l h a v e b e e n g i v e n a s i n A r t i c l e I V p r o v i d e d o r p r o v i s i o n s a t i s f a c t o r y t o t h e
T r u s t e e s h a l l h a v e b e e n m a d e f o r t h e g i v i n g o f s u c h n o t i c e , t h e a m o u n t t o b e d e p o s i t e d o r h e l d
s h a l l b e t h e p r i n c i p a l a m o u n t o r R e d e m p t i o n P r i c e o f s u c h B o n d s a n d a l l u n p a i d i n t e r e s t t h e r e o n
t o t h e r e d e m p t i o n d a t e ; o r
( B ) D e f e a s a n c e S e c u r i t i e s t h e p r i n c i p a l o f a n d i n t e r e s t o n w h i c h w h e n d u e w i l l , i n t h e
o p i n i o n o f a n i n d e p e n d e n t c e r t i f i e d p u b l i c a c c o u n t a n t , a f i r m o f i n d e p e n d e n t c e r t i f i e d p u b l i c
a c c o u n t a n t s o r o t h e r i n d e p e n d e n t c o n s u l t i n g f i r m d e l i v e r e d t o t h e T r u s t e e ( a s c o n f i r m e d b y a
v e r i f i c a t i o n r e p o r t u p o n w h i c h v e r i f i c a t i o n r e p o r t t h e T r u s t e e m a y c o n c l u s i v e l y r e l y ) , p r o v i d e
m o n e y s u f f i c i e n t t o p a y t h e p r i n c i p a l o r R e d e m p t i o n P r i c e o f a n d a l l u n p a i d i n t e r e s t t o m a t u r i t y ,
o r t o t h e r e d e m p t i o n d a t e , a s t h e c a s e m a y b e , o n t h e B o n d s t o b e p a i d o r r e d e e m e d , a s s u c h
p r i n c i p a l o r R e d e m p t i o n P r i c e a n d i n t e r e s t b e c o m e d u e , p r o v i d e d t h a t , i n t h e c a s e o f B o n d s
w h i c h a r e t o b e r e d e e m e d p r i o r t o t h e m a t u r i t y t h e r e o f , n o t i c e o f s u c h r e d e m p t i o n s h a l l h a v e
b e e n g i v e n a s i n A r t i c l e I V p r o v i d e d o r p r o v i s i o n s a t i s f a c t o r y t o t h e T r u s t e e s h a l l h a v e b e e n
m a d e f o r t h e g i v i n g o f s u c h n o t i c e ; p r o v i d e d , i n e a c h c a s e , t h a t t h e T r u s t e e s h a l l h a v e b e e n
i r r e v o c a b l y i n s t r u c t e d ( b y t h e t e r m s o f t h i s I n d e n t u r e o r b y R e q u e s t o f t h e C o m m i s s i o n ) t o a p p l y
s u c h m o n e y t o t h e p a y m e n t o f s u c h p r i n c i p a l o r R e d e m p t i o n P r i c e a n d i n t e r e s t w i t h r e s p e c t t o
s u c h B o n d s .
S E C T I O N 1 0 . 0 4 P a y m e n t o f B o n d s A f t e r D i s c h a r g e o f I n d e n t u r e . A n y m o n e y s
h e l d b y t h e T r u s t e e i n t r u s t f o r t h e p a y m e n t o f t h e p r i n c i p a l , R e d e m p t i o n P r i c e , o r i n t e r e s t o n a n y
B o n d a n d r e m a i n i n g u n c l a i m e d f o r o n e ( 1 ) y e a r a f t e r s u c h p r i n c i p a l , R e d e m p t i o n P r i c e , o r
i n t e r e s t h a s b e c o m e d u e a n d p a y a b l e ( w h e t h e r a t m a t u r i t y o r u p o n c a l l f o r r e d e m p t i o n a s
p r o v i d e d i n t h i s I n d e n t u r e ) , i f s u c h m o n e y s w e r e s o h e l d a t s u c h d a t e , o r o n e ( 1 ) y e a r a f t e r t h e
d a t e o f d e p o s i t o f s u c h p r i n c i p a l , R e d e m p t i o n P r i c e o r i n t e r e s t o n a n y B o n d i f s u c h m o n e y s w e r e
d e p o s i t e d a f t e r t h e d a t e w h e n s u c h B o n d b e c a m e d u e a n d p a y a b l e , s h a l l b e r e p a i d t o t h e
C o m m i s s i o n f r e e f r o m t h e t r u s t s c r e a t e d b y t h i s I n d e n t u r e , a n d a l l l i a b i l i t y o f t h e T r u s t e e w i t h
r e s p e c t t o s u c h m o n e y s s h a l l t h e r e u p o n c e a s e ; p r o v i d e d , h o w e v e r , t h a t b e f o r e t h e r e p a y m e n t o f
s u c h m o n e y s t o t h e C o m m i s s i o n a s a f o r e s a i d , t h e T r u s t e e m a y ( a t t h e c o s t o f t h e C o m m i s s i o n )
f i r s t m a i l t o t h e H o l d e r s o f a n y B o n d s r e m a i n i n g u n p a i d a t t h e a d d r e s s e s s h o w n o n t h e
r e g i s t r a t i o n b o o k s m a i n t a i n e d b y t h e T r u s t e e a n o t i c e , i n s u c h f o r m a s m a y b e d e e m e d
a p p r o p r i a t e b y t h e T r u s t e e , w i t h r e s p e c t t o t h e B o n d s s o p a y a b l e a n d n o t p r e s e n t e d a n d w i t h
r e s p e c t t o t h e p r o v i s i o n s r e l a t i n g t o t h e r e p a y m e n t t o t h e C o m m i s s i o n o f t h e m o n e y s h e l d f o r t h e
p a y m e n t t h e r e o f . A l l m o n e y s h e l d b y o r o n b e h a l f o f t h e T r u s t e e f o r t h e p a y m e n t o f p r i n c i p a l o r
A c c r e t e d V a l u e o f o r i n t e r e s t o r p r e m i u m o n B o n d s , w h e t h e r a t r e d e m p t i o n o r m a t u r i t y , s h a l l b e
h e l d i n t r u s t f o r t h e a c c o u n t o f t h e H o l d e r s t h e r e o f a n d t h e T r u s t e e s h a l l n o t b e r e q u i r e d t o p a y
H o l d e r s a n y i n t e r e s t o n , o r b e l i a b l e t o t h e H o l d e r s o r a n y o t h e r p e r s o n ( o t h e r t h a n t h e
C o m m i s s i o n ) f o r i n t e r e s t e a r n e d o n , m o n e y s s o h e l d . A n y i n t e r e s t e a r n e d t h e r e o n s h a l l b e l o n g t o
t h e C o m m i s s i o n a n d s h a l l b e d e p o s i t e d u p o n r e c e i p t b y t h e T r u s t e e i n t o t h e R e v e n u e F u n d .
A R T I C L E X I
M I S C E L L A N E O U S
S E C T I O N 1 1 . 0 1 L i a b i l i t y o f C o m m i s s i o n L i m i t e d t o S a l e s T a x R e v e n u e s .
N o t w i t h s t a n d i n g a n y t h i n g i n t h i s I n d e n t u r e o r i n t h e B o n d s c o n t a i n e d , t h e C o m m i s s i o n s h a l l n o t
O H S W e s t : 2 6 0 3 7 9 4 7 5 . 8
6 3
2 1 4
be required to advance any moneys derived from any source other than the Sales Tax Revenues
and other assets pledged hereunder for any of the purposes in this Indenture mentioned, whether
for the payment of the principal or Redemption Price of or interest on the Bonds or for any other
purpose of this Indenture.
SECTION 11.02 Successor Is Deemed Included in All References to Predecessor.
Whenever in this Indenture either the Commission or the Trustee is named or referred to, such
reference shall be deemed to include the successors or assigns thereof, and all the covenants and
agreements in this Indenture contained by or on behalf of the Commission or the Trustee shall
bind and inure to the benefit of the respective successors and assigns thereof whether so
expressed or not.
SECTION 11.03 Limitation of Rights. Nothing in this Indenture or in the Bonds
expressed or implied is intended or shall be construed to give to any Person other than the
Commission, the Trustee, each Credit Provider, each Liquidity Provider, each Reserve Facility
Provider, the Holders of the Bonds and the holders of any Parity Obligations, including each
Counterparty, any legal or equitable right, remedy or claim under or in respect of this Indenture
or any covenant, condition or provision therein or herein contained; and all such covenants,
conditions and provisions are and shall be held to be for the sole and exclusive benefit of the
Commission, the Trustee, each Credit Provider, each Liquidity Provider, each Reserve Facility
Provider, the Holders of the Bonds and the holders of any Parity Obligations, including each
Counterparty. Each Credit Provider and each Liquidity Provider is an express third party
beneficiary of this Indenture.
SECTION 11.04 Waiver of Notice. Whenever in this Indenture the giving of notice
by mail or otherwise is required, the giving of such notice may be waived in writing by the
person entitled to receive such notice and in any such case the giving or receipt of such notice
shall not be a condition precedent to the validity of any action taken in reliance upon such
waiver.
SECTION 11.05 Destruction or Delivery of Canceled Bonds. Whenever in this
Indenture provision is made for the cancellation by the Trustee and the delivery to the
Commission of any Bonds, the Trustee may, in its sole discretion, in lieu of such cancellation
and delivery, destroy such Bonds, and deliver a certificate of such destruction to the
Commission.
SECTION 11.06 Severability of Invalid Provisions. If any one or more of the
provisions contained in this Indenture or in the Bonds shall for any reason be held to be invalid,
illegal or unenforceable in any respect, then such provisions or provisions shall be deemed
severable from the remaining provisions contained in this Indenture and such invalidity,
illegality or unenforceability shall not affect any other provision of this Indenture, and this
Indenture shall be construed as if such invalid or illegal or unenforceable provision had never
been contained herein. The Commission hereby declares that it would have adopted this
Indenture and each and every other Section, paragraph, sentence, clause or phrase hereof and
authorized the issuance of the Bonds pursuant thereto irrespective of the fact that any one or
more Sections, paragraphs, sentences, clauses or phrases of this Indenture may be held illegal,
invalid or unenforceable.
OHS West:260379475.8 64
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•
•
215
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S E C T I O N 1 1 . 0 7 N o t i c e t o C o m m i s s i o n a n d T r u s t e e . A n y n o t i c e t o o r d e m a n d m a y
b e s e r v e d o r p r e s e n t e d , a n d s u c h d e m a n d m a y b e m a d e a n d s h a l l b e d e e m e d t o h a v e b e e n
s u f f i c i e n t l y g i v e n o r s e r v e d f o r a l l p u r p o s e s b y b e i n g d e p o s i t e d , f i r s t - c l a s s m a i l p o s t a g e p r e p a i d ,
i n a p o s t o f f i c e l e t t e r b o x , a d d r e s s e d , a s t h e c a s e m a y b e , t o t h e p a r t i e s a s l i s t e d b e l o w . A n y s u c h
c o m m u n i c a t i o n m a y a l s o b e s e n t b y E l e c t r o n i c M e a n s , r e c e i p t o f w h i c h s h a l l b e c o n f i r m e d .
T r u s t e e :
C o m m i s s i o n :
U . S . B a n k N a t i o n a l A s s o c i a t i o n
6 3 3 W e s t F i f t h S t r e e t , 2 4 t h F l o o r
L o s A n g e l e s , C a l i f o r n i a 9 0 0 7 1
A t t e n t i o n : C o r p o r a t e T r u s t S e r v i c e s
T e l e p h o n e : ( 2 1 3 ) 6 1 5 - 6 0 0 2
F a x : ( 2 1 3 ) 6 1 5 - 6 1 9 9
R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n
P . O . B o x 1 2 0 0 8
R i v e r s i d e , C a l i f o r n i a 9 2 5 0 2
A t t e n t i o n : C h i e f F i n a n c i a l O f f i c e r
T e l e p h o n e : ( 9 5 1 ) 7 8 7 - 7 1 4 1
F a x : ( 9 5 1 ) 7 8 7 - 7 9 2 0
S E C T I O N 1 1 . 0 8 E v i d e n c e o f R i g h t s o f B o n d h o l d e r s . A n y r e q u e s t , c o n s e n t o r o t h e r
i n s t r u m e n t r e q u i r e d o r p e r m i t t e d b y t h i s i n d e n t u r e t o b e s i g n e d a n d e x e c u t e d b y B o n d h o l d e r s
m a y b e i n a n y n u m b e r o f c o n c u r r e n t i n s t r u m e n t s o f s u b s t a n t i a l l y s i m i l a r t e n o r a n d s h a l l b e
s i g n e d o r e x e c u t e d b y s u c h B o n d h o l d e r s i n p e r s o n o r b y a n a g e n t o r a g e n t s d u l y a p p o i n t e d i n
w r i t i n g . P r o o f o f t h e e x e c u t i o n o f a n y s u c h r e q u e s t , c o n s e n t o r o t h e r i n s t r u m e n t o r o f a w r i t i n g
a p p o i n t i n g a n y s u c h a g e n t , o r t h e h o l d i n g b y a n y P e r s o n o f B o n d s t r a n s f e r a b l e b y d e l i v e r y , s h a l l
b e s u f f i c i e n t f o r a n y p u r p o s e o f t h i s I n d e n t u r e a n d s h a l l b e c o n c l u s i v e i n f a v o r o f t h e T r u s t e e a n d
o f t h e C o m m i s s i o n i f m a d e i n t h e m a n n e r p r o v i d e d i n t h i s S e c t i o n .
T h e f a c t a n d d a t e o f t h e e x e c u t i o n b y a n y p e r s o n o f a n y s u c h r e q u e s t , c o n s e n t o r o t h e r
i n s t r u m e n t o r w r i t i n g m a y b e p r o v e d b y t h e c e r t i f i c a t e o f a n y n o t a r y p u b l i c o r o t h e r o f f i c e r o f
a n y j u r i s d i c t i o n , a u t h o r i z e d b y t h e l a w s t h e r e o f t o t a k e a c k n o w l e d g m e n t s o f d e e d s , c e r t i f y i n g
t h a t t h e p e r s o n s i g n i n g s u c h r e q u e s t , c o n s e n t o r o t h e r i n s t r u m e n t a c k n o w l e d g e d t o h i m t h e
e x e c u t i o n t h e r e o f , o r b y a n a f f i d a v i t o f a w i t n e s s o f s u c h e x e c u t i o n d u l y s w o r n t o b e f o r e s u c h
n o t a r y p u b l i c o r o t h e r o f f i c e r .
T h e o w n e r s h i p o f B o n d s s h a l l b e p r o v e d b y t h e b o n d r e g i s t r a t i o n b o o k s h e l d b y t h e
T r u s t e e . T h e T r u s t e e m a y e s t a b l i s h a r e c o r d d a t e a s o f w h i c h t o m e a s u r e c o n s e n t o f t h e H o l d e r s
i n o r d e r t o d e t e r m i n e w h e t h e r t h e r e q u i s i t e c o n s e n t s a r e r e c e i v e d .
A n y r e q u e s t , c o n s e n t , o r o t h e r i n s t r u m e n t o r w r i t i n g o f t h e H o l d e r o f a n y B o n d s h a l l b i n d
e v e r y f u t u r e H o l d e r o f t h e s a m e B o n d a n d t h e H o l d e r o f e v e r y B o n d i s s u e d i n e x c h a n g e t h e r e f o r
o r i n l i e u t h e r e o f , i n r e s p e c t o f a n y t h i n g d o n e o r s u f f e r e d t o b e d o n e b y t h e T r u s t e e o r t h e
C o m m i s s i o n i n a c c o r d a n c e t h e r e w i t h o r r e l i a n c e t h e r e o n .
S E C T I O N 1 1 . 0 9 D i s q u a l i f i e d B o n d s . I n d e t e r m i n i n g w h e t h e r t h e H o l d e r s o f t h e
r e q u i s i t e a g g r e g a t e B o n d O b l i g a t i o n o f B o n d s h a v e c o n c u r r e d i n a n y d e m a n d , r e q u e s t , d i r e c t i o n ,
O H S W e s t 2 6 0 3 7 9 4 7 5 . 6
6 5
2 1 6
consent or waiver under this Indenture, Bonds that are owned or held by or for the account of the
Commission, or by any other obligor on the Bonds, or by any person directly or indirectly
controlling or controlled by, or under direct or indirect common control with, the Commission or
any other obligor on the Bonds, shall be disregarded and deemed not to be Outstanding for the
purpose of any such determination. Bonds so owned which have been pledged in good faith may
be regarded as Outstanding for the purposes of this Section if the pledgee shall establish to the
satisfaction of the Trustee the pledgee's right to vote such Bonds and that the pledgee is not a
person directly or indirectly controlled by, or under direct or indirect common control with, the
Commission. In case of a dispute as to such right, any decision by the Trustee taken upon the
advice of counsel shall be full protection to the Trustee.
SECTION 11.10 Money Held for Particular Bonds. The money held by the Trustee
for the payment of the interest, principal, Redemption Price or purchase price due on any date
with respect to particular Bonds (or portions of Bonds in the case of registered Bonds redeemed
in part only) shall, on and after such date and pending such payment, be set aside on its books
and held in trust by it for the Holders of the Bonds entitled thereto, subject, however, to the
provisions of Section 10.04.
SECTION 11.11 Funds and Accounts. Any fund required by this Indenture to be
established and maintained by the Trustee may be established and maintained in the accounting
records of the Trustee, either as a fund or an account, and may, for the purposes or statements
with respect thereto, be treated either as a fund or as an account; but all such records with respect
to all such fimds shall at all times be maintained in accordance with customary standards of the
corporate trust industry, to the extent practicable, and with due regard for the protection of the
security of the Bonds and the rights of every holder thereof.
SECTION 11.12 Limitations on Rights of Credit Providers, Liquidity Providers,
Reserve Facility Providers. A Supplemental Indenture establishing the terms and provisions of a
Series of Bonds may provide that any Credit Provider, Liquidity Provider or Reserve Facility
Provider may exercise any right under this Indenture given to the Holders of the Bonds to which
such Credit Enhancement, Liquidity Facility or Reserve Facility relates. All provisions under
this Indenture authorizing the exercise of rights by a Credit Provider, a Liquidity Provider or a
Reserve Facility Provider with respect to consents, approvals, directions, waivers, appointments,
requests or other actions, shall be deemed not to require or permit such consents, approvals,
directions, waivers, appointments, requests or other actions and shall be read as if the Credit
Provider, Liquidity Provider or Reserve Facility Provider were not mentioned therein (i) during
any period during which there is a default by such Credit Provider, Liquidity Provider or Reserve
Facility Provider under the applicable Credit Enhancement, Liquidity Facility or Reserve Facility
or (ii) after the applicable Credit Enhancement, Liquidity Facility or Reserve Facility shall at any
time for any reason cease to be valid and binding on the provider thereof, or shall be declared to
be null and void by final, non -appealable judgment of a court of competent jurisdiction, or after
the Credit Enhancement, Liquidity Facility or Reserve Facility has been rescinded, repudiated by
the provider thereof or terminated, or after a receiver, conservator or liquidator has been
appointed for the provider thereof. All provisions relating to the rights of a Credit Provider,
Liquidity Provider or Reserve Facility Provider shall be of no further force and effect if all
amounts owing to such Credit Provider, Liquidity Provider or Reserve Facility Provider shall
have been paid pursuant to the terms of the applicable Credit Enhancement, Liquidity Facility or
OHS West:260379475.8
66
217
"
"
R e s e r v e F a c i l i t y a n d s u c h C r e d i t E n h a n c e m e n t , L i q u i d i t y F a c i l i t y o r R e s e r v e F a c i l i t y s h a l l n o
l o n g e r b e i n e f f e c t .
S E C T I O N 1 1 . 1 3 A r t i c l e a n d S e c t i o n H e a d i n g s a n d R e f e r e n c e s . T h e h e a d i n g s o r
t i t l e s o f t h e s e v e r a l A r t i c l e s a n d S e c t i o n s h e r e o f , a n d a n y t a b l e o f c o n t e n t s a p p e n d e d t o c o p i e s
h e r e o f , s h a l l b e s o l e l y f o r c o n v e n i e n c e o f r e f e r e n c e a n d s h a l l n o t a f f e c t t h e m e a n i n g , c o n s t r u c t i o n
o r e f f e c t o f t h i s I n d e n t u r e .
A l l r e f e r e n c e s h e r e i n t o " A r t i c l e s , " S e c t i o n s " a n d o t h e r s u b d i v i s i o n s a r e t o t h e
c o r r e s p o n d i n g A r t i c l e s , S e c t i o n s o r s u b d i v i s i o n s o f t h i s I n d e n t u r e ; t h e w o r d s " h e r e i n , " " h e r e o f , "
" h e r e b y , " " h e r e u n d e r " a n d o t h e r w o r d s o f s i m i l a r i m p o r t r e f e r t o t h i s I n d e n t u r e a s a w h o l e a n d
n o t t o a n y p a r t i c u l a r A r t i c l e , S e c t i o n o r s u b d i v i s i o n h e r e o f ; a n d w o r d s o f t h e m a s c u l i n e g e n d e r
s h a l l m e a n a n d i n c l u d e w o r d s o f t h e f e m i n i n e a n d n e u t e r g e n d e r s .
S E C T I O N 1 1 . 1 4 W a i v e r o f P e r s o n a l L i a b i l i t y . N o B o a r d m e m b e r , o f f i c e r , a g e n t o r
e m p l o y e e o f t h e C o m m i s s i o n o r t h e T r u s t e e s h a l l b e i n d i v i d u a l l y o r p e r s o n a l l y l i a b l e f o r t h e
p a y m e n t o f t h e p r i n c i p a l o r R e d e m p t i o n P r i c e o f o r i n t e r e s t o n t h e B o n d s o r b e s u b j e c t t o a n y
p e r s o n a l l i a b i l i t y o r a c c o u n t a b i l i t y b y r e a s o n o f t h e i s s u a n c e t h e r e o f ; b u t n o t h i n g h e r e i n
c o n t a i n e d s h a l l r e l i e v e a n y s u c h B o a r d m e m b e r , o f f i c e r , a g e n t o r e m p l o y e e o f t h e C o m m i s s i o n o r
t h e T r u s t e e f r o m t h e p e r f o r m a n c e o f a n y o f a n y o f f i c i a l d u t y p r o v i d e d b y l a w o r b y t h i s
I n d e n t u r e .
S E C T I O N 1 1 . 1 5 G o v e r n i n g L a w . T h i s I n d e n t u r e s h a l l b e c o n s t r u e d a n d g o v e r n e d
i n a c c o r d a n c e w i t h t h e l a w s o f t h e S t a t e o f C a l i f o r n i a .
S E C T I O N 1 1 . 1 6 B u s i n e s s D a y . E x c e p t a s s p e c i f i c a l l y s e t f o r t h i n t h i s I n d e n t u r e o r
a S u p p l e m e n t a l I n d e n t u r e , t r a n s f e r s w h i c h w o u l d o t h e r w i s e b e c o m e d u e o n a n y d a y w h i c h i s n o t
a B u s i n e s s D a y s h a l l b e c o m e d u e o r s h a l l b e m a d e o n t h e n e x t s u c c e e d i n g B u s i n e s s D a y w i t h t h e
s a m e e f f e c t a s i f m a d e o n s u c h p r i o r d a t e .
S E C T I O N 1 1 . 1 7 E f f e c t i v e D a t e o f I n d e n t u r e . T h i s I n d e n t u r e s h a l l t a k e e f f e c t u p o n
i t s e x e c u t i o n a n d d e l i v e r y .
S E C T I O N 1 1 . 1 8 E x e c u t i o n i n C o u n t e r p a r t s . T h i s I n d e n t u r e m a y b e e x e c u t e d i n
s e v e r a l c o u n t e r p a r t s , e a c h o f w h i c h s h a l l b e d e e m e d a n o r i g i n a l , a n d a l l o f w h i c h s h a l l c o n s t i t u t e
b u t o n e a n d t h e s a m e i n s t r u m e n t .
O H S W e s t 2 6 0 3 7 9 4 7 5 . 8
6 7
2 1 8
IN WITNESS WHEREOF, the parties hereto have executed this Indenture by their
officers thereunto duly authorized as of the day and year first written above.
(Seal)
ATTEST:
Clerk of the
Riverside County Transportation Commission
APPROVED AS TO FORM:
By:
General Counsel
OHS West:260379475.8
68
RIVERSIDE COUNTY
TRANSPORTATION COMMISSION
By:
Executive Director
U.S. BANK NATIONAL ASSOCIATION,
as Trustee
By:
Authorized Officer
219
1
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i
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ATTACHMENT 5
OH&S Draft
5/6/08
FIRST SUPPLEMENTAL INDENTURE
between
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
and
U.S. BANK NATIONAL ASSOCIATION,
as Trustee
Dated as of June 1, 2008
Relating to
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
SALES TAX REVENUE BONDS
(LIMITED TAX BONDS)
2008 SERIES A
(Supplementing the Indenture
Dated as of June 1, 2008)
OHS West:260379565.9
220
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A R T I C L E X I I
D E F I N I T I O N S
S e c t i o n 1 2 . 0 1 . D e f m i t i o n s 1
S e c t i o n 1 2 . 0 2 . R u l e s o f C o n s t r u c t i o n 7
A R T I C L E X I I I
F I N D I N G S , D E T E R M I N A T I O N S A N D D I R E C T I O N S
S e c t i o n 1 3 . 0 1 . F i n d i n g s a n d D e t e r m i n a t i o n s 7
S e c t i o n 1 3 . 0 2 . R e c i t a l i n B o n d s 7
S e c t i o n 1 3 . 0 3 . E f f e c t o f F i n d i n g s a n d R e c i t a l 8
A R T I C L E X I V
A U T H O R I Z A T I O N O F 2 0 0 8 B O N D S
S e c t i o n 1 4 . 0 1 . P r i n c i p a l A m o u n t , D e s i g n a t i o n a n d S e r i e s 8
S e c t i o n 1 4 . 0 2 . P u r p o s e a n d A p p l i c a t i o n o f P r o c e e d s 8
S e c t i o n 1 4 . 0 3 . F o r m , D e n o m i n a t i o n , N u m b e r s a n d L e t t e r s 9
S e c t i o n 1 4 . 0 4 . D a t e , M a t u r i t i e s a n d I n t e r e s t R a t e s 9
S e c t i o n 1 4 . 0 5 . I n t e r e s t R a t e s o n 2 0 0 8 B o n d s I 0
A R T I C L E X V
R E D E M P T I O N A N D P U R C H A S E O F 2 0 0 8 B O N D S
S e c t i o n 1 5 . 0 1 . O p t i o n a l R e d e m p t i o n o f 2 0 0 8 B o n d s 2 0
S e c t i o n 1 5 . 0 2 . M a n d a t o r y R e d e m p t i o n o f 2 0 0 8 B o n d s F r o m M a n d a t o r y S i n k i n g
A c c o u n t P a y m e n t s 2 2
S e c t i o n 1 5 . 0 3 . P u r c h a s e I n L i e u o f R e d e m p t i o n 2 3
S e c t i o n 1 5 . 0 4 . H o l d e r ' s O p t i o n t o T e n d e r 2 0 0 8 B o n d s f o r P u r c h a s e 2 3
S e c t i o n 1 5 . 0 5 . M a n d a t o r y T e n d e r o f 2 0 0 8 B o n d s f o r P u r c h a s e 2 4
S e c t i o n 1 5 . 0 6 . D e l i v e r y o f T e n d e r e d 2 0 0 8 B o n d s 2 5
S e c t i o n 1 5 . 0 7 . 2 0 0 8 B o n d s D e e m e d P u r c h a s e d 2 6
S e c t i o n 1 5 . 0 8 . D e p o s i t o f 2 0 0 8 B o n d s 2 6
S e c t i o n 1 5 . 0 9 . R e m a r k e t i n g o f T e n d e r e d 2 0 0 8 B o n d s 2 7
S e c t i o n 1 5 . 1 0 . D e p o s i t s i n t o A c c o u n t s i n t h e 2 0 0 8 B o n d s P u r c h a s e F u n d 2 9
S e c t i o n 1 5 . 1 1 . D i s b u r s e m e n t s f r o m t h e 2 0 0 8 B o n d s P u r c h a s e F u n d 3 0
S e c t i o n 1 5 . 1 2 . D e l i v e r y o f 2 0 0 8 B o n d s 3 1
S e c t i o n 1 5 . 1 3 . 2 0 0 8 L i q u i d i t y F a c i l i t i e s ; L i q u i d i t y F a c i l i t y B o n d s 3 2
S e c t i o n 1 5 . 1 4 . A l t e r n a t e L i q u i d i t y F a c i l i t i e s 3 4
S e c t i o n 1 5 . 1 5 . R e m a r k e t i n g A g e n t s f o r t h e 2 0 0 8 B o n d s 3 5
A R T I C L E X V I
P U R C H A S E O F 2 0 0 8 B O N D S A T D I R E C T I O N O F C O M M I S S I O N
S e c t i o n 1 6 . 0 1 . M a n d a t o r y T e n d e r f o r P u r c h a s e o f 2 0 0 8 B o n d s a t D i r e c t i o n o f
C o m m i s s i o n 3 6
S e c t i o n 1 6 . 0 2 . D e l i v e r y o f T e n d e r e d 2 0 0 8 B o n d s 3 7
S e c t i o n 1 6 . 0 3 . 2 0 0 8 B o n d s D e e m e d P u r c h a s e d 3 7
S e c t i o n 1 6 . 0 4 . D e p o s i t o f 2 0 0 8 B o n d s 3 8
S e c t i o n 1 6 . 0 5 . P a y m e n t o f O p t i o n a l P u r c h a s e P r i c e o f 2 0 0 8 B o n d s 3 8
O H S W e s t : 2 6 0 3 7 9 5 6 5 . 9
2 2 1
Section 16.06. 2008 Bonds Owned by Commission 39
ARTICLE XVII
ESTABLISHMENT OF FUNDS AND ACCOUNTS AND APPLICATION THEREOF
Section 17.01.
Section 17.02.
Section 17.03.
Section 17.04.
Section 18.01.
Section 18.02.
Section 18.03.
Section 18.04.
Section 18.05.
Section 18.06.
Section 18.07.
Section 18.08.
EXHIBIT A
EXHIBIT B
Funds and Accounts 39
2008 Costs of Issuance Fund 39'
Funding and Application of the 2008 Bonds Reserve Fund; Bond
Reserve Requirement for the 2008 Bonds 40
2008 Bonds Purchase Fund 40
ARTICLE XVIII
MISCELLANEOUS
Severability 41
Parties Interested Herein 41
Headings Not Binding 41
Notice Addresses 41
Notices to Rating Agencies 42
Indenture to Remain in Effect 42
Effective Date of First Supplemental Indenture 42
Execution in Counterparts 42
FORM OF 2008 BOND
NOTICE ADDRESSES
OHS West:260379565.9 11
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F I R S T S U P P L E M E N T A L I N D E N T U R E
T H I S F I R S T S U P P L E M E N T A L I N D E N T U R E , d a t e d a s o f J u n e 1 , 2 0 0 8 ( t h i s " F i r s t
S u p p l e m e n t a l I n d e n t u r e " ) , b e t w e e n t h e R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N
C O M M I S S I O N , a p u b l i c e n t i t y d u l y e s t a b l i s h e d a n d e x i s t i n g u n d e r t h e l a w s o f t h e S t a t e o f
C a l i f o r n i a ( t h e " C o m m i s s i o n " ) a n d U . S . B A N K N A T I O N A L A S S O C I A T I O N , a n a t i o n a l
b a n k i n g a s s o c i a t i o n d u l y o r g a n i z e d a n d e x i s t i n g u n d e r a n d b y v i r t u e o f t h e l a w s o f t h e U n i t e d
S t a t e s o f A m e r i c a , a s t r u s t e e ( t h e " T r u s t e e " ) :
W I T N E S S E T I I :
W H E R E A S , t h i s F i r s t S u p p l e m e n t a l I n d e n t u r e i s s u p p l e m e n t a l t o t h e I n d e n t u r e , d a t e d a s
o f J u n e 1 , 2 0 0 8 ( a s s u p p l e m e n t e d a n d a m e n d e d f r o m t i m e t o t i m e p u r s u a n t t o i t s t e r m s , t h e
" I n d e n t u r e " ) , b e t w e e n t h e C o m m i s s i o n a n d t h e T r u s t e e ;
W H E R E A S , t h e I n d e n t u r e p r o v i d e s t h a t t h e C o m m i s s i o n m a y i s s u e B o n d s f r o m t i m e t o
t i m e a s a u t h o r i z e d b y a S u p p l e m e n t a l I n d e n t u r e , w h i c h B o n d s a r e t o b e p a y a b l e f r o m R e v e n u e s
a n d f r o m s u c h o t h e r s o u r c e s a s m a y b e s p e c i f i e d w i t h r e s p e c t t o a p a r t i c u l a r S e r i e s o f B o n d s i n
t h e S u p p l e m e n t a l I n d e n t u r e a u t h o r i z i n g s u c h S e r i e s ; a n d
W H E R E A S , t h e C o m m i s s i o n d e s i r e s t o p r o v i d e a t t h i s t i m e f o r t h e i s s u a n c e o f B o n d s t o
b e d e s i g n a t e d " R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n S a l e s T a x R e v e n u e B o n d s
( L i m i t e d T a x B o n d s ) , 2 0 0 8 S e r i e s A " ( t h e " 2 0 0 8 B o n d s " ) f o r t h e p u r p o s e o f r e f u n d i n g
$ 1 1 0 , 0 0 5 , 0 0 0 p r i n c i p a l a m o u n t o f t h e C o m m i s s i o n ' s N o t e s a n d t o p a y a c c r u e d i n t e r e s t t h e r e o n ,
t o f u n d i n t e r e s t o n t h e 2 0 0 8 B o n d s t o D e c e m b e r 2 0 0 9 , t o f u n d a r e s e r v e f u n d a n d t o p a y c o s t s o f
i s s u a n c e , a l l a s p r o v i d e d i n t h i s F i r s t S u p p l e m e n t a l I n d e n t u r e ;
N O W , T H E R E F O R E , t h e p a r t i e s h e r e t o h e r e b y a g r e e a s f o l l o w s :
A R T I C L E X I I
D E F I N I T I O N S
S e c t i o n 1 2 . 0 1 . D e f i n i t i o n s .
( a ) D e f i n i t i o n s . U n l e s s t h e c o n t e x t o t h e r w i s e r e q u i r e s , o r a s o t h e r w i s e p r o v i d e d
i n s u b s e c t i o n ( b ) o f t h i s S e c t i o n o r i n A p p e n d i x A t o t h i s F i r s t S u p p l e m e n t a l I n d e n t u r e , a l l
t e r m s w h i c h a r e d e f i n e d i n S e c t i o n 1 . 0 2 o f t h e I n d e n t u r e s h a l l h a v e t h e s a m e m e a n i n g s i n t h i s
F i r s t S u p p l e m e n t a l I n d e n t u r e .
( b ) A d d i t i o n a l D e f m i t i o n s . U n l e s s t h e c o n t e x t o t h e r w i s e r e q u i r e s , t h e f o l l o w i n g
t e r m s s h a l l , f o r a l l p u r p o s e s o f t h i s F i r s t S u p p l e m e n t a l I n d e n t u r e , h a v e t h e f o l l o w i n g
m e a n i n g s :
" A u t h o r i z e d D e n o m i n a t i o n s " m e a n s , w i t h r e s p e c t t o t h e 2 0 0 8 B o n d s : ( i ) d u r i n g a D a i l y
R a t e P e r i o d , W e e k l y R a t e P e r i o d o r C o m m e r c i a l P a p e r R a t e P e r i o d , $ 1 0 0 , 0 0 0 a n d a n y i n t e g r a l
m u l t i p l e o f $ 5 , 0 0 0 i n e x c e s s t h e r e o f a n d ( i i ) d u r i n g a L o n g - T e r m R a t e P e r i o d o r t h e F i x e d R a t e
P e r i o d , $ 5 , 0 0 0 a n d a n y i n t e g r a l m u l t i p l e t h e r e o f ; p r o v i d e d , h o w e v e r , t h a t i f a s a r e s u l t o f a
O H S W e s t : 2 6 0 3 7 9 5 6 5 . 9
2 2 3
Conversion of the 2008 Bonds from a Long -Term Rate Period to another Interest Rate
Determination Method, it is not possible to deliver all the 2008 Bonds required or permitted to be
Outstanding in a denomination permitted above, the 2008 Bonds may be delivered, to the extent
necessary, in different denominations in any integral multiple of $5,000.
"Calendar Week" means the period of seven (7) days from and including Thursday of
any week to and including Wednesday of the next following week.
"Commercial Paper Rate" means the interest rate established from time to time
pursuant to Section 14.05(a)(iii).
"Commercial Paper Rate Period" means each period during which the 2008 Bonds
bear interest at a Commercial Paper Rate determined pursuant to Section 14.05(a)(iii).
"Commercial Paper Tender Bonds" shall have the meaning set forth in
Section 15.09(a).
"Conversion means conversion of the 2008 Bonds from one Interest Rate
Determination Method to another, which may be made from time to time in accordance with the
terms of Section 14.05(b).
"Conversion Date" means the date Conversion of the 2008 Bonds becomes effective in
accordance with Section 14.05(b) (or, with respect to notices, time periods and requirements in
connection with the proceedings for such Conversion, the day on which it is proposed that such
Conversion occur).
"Conversion Notice" shall have the meaning set forth in Section 14.05(b).
"Daily Put Bonds" shall have the meaning set forth in Section 15.09(a).
"Daily Rate" means the interest rate established from time to time pursuant to
Section 14.05(a)(i).
"Daily Rate Index" means, on any Business Day, the SIFMA Swap Index or, if the
SIFMA Swap Index is no longer published, an index or rate agreed upon by the Commission and
the Remarketing Agent; provided, however, that if the Remarketing Agent Advises the Trustee
and the Commission that the use of the SIFMA Swap Index would not result or no longer results
in a market rate of interest on the Bonds, 'Daily Rate Index" shall mean, subject to a Favorable
Opinion of Bond Counsel, an index agreed to by the Commission and the Remarketing Agent
that would result in a market rate of interest on the Bonds. The Daily Index Rate shall in no event
exceed the Maximum Interest Rate.
"Daily Rate Period" means any period during which the 2008 Bonds bear interest at the
Daily Rate.
"Expiration" (and other forms of "expire") means, when used with respect to a 2008
Credit Enhancement or 2008 Liquidity Facility, the expiration of such 2008 Credit Enhancement
or 2008 Liquidity Facility in accordance with its terms.
OHS West:260379565.9 - 2
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" F a v o r a b l e O p i n i o n o f B o n d C o u n s e l " m e a n s , w i t h r e s p e c t t o a n y a c t i o n r e q u i r i n g s u c h
a n o p i n i o n , a n O p i n i o n o f B o n d C o u n s e l t o t h e e f f e c t t h a t s u c h a c t i o n w i l l n o t , i n a n d o f i t s e l f ,
a d v e r s e l y a f f e c t t h e T a x - E x e m p t s t a t u s o f i n t e r e s t o n t h e B o n d s o r s u c h p o r t i o n t h e r e o f a s s h a l l
b e a f f e c t e d t h e r e b y .
" F i r s t S u p p l e m e n t a l I n d e n t u r e " m e a n s t h i s F i r s t S u p p l e m e n t a l I n d e n t u r e , b e t w e e n t h e
C o m m i s s i o n a n d t h e T r u s t e e , a s a m e n d e d a n d s u p p l e m e n t e d f r o m t i m e t o t i m e .
" F i x e d R a t e " m e a n s t h e f i x e d r a t e b o r n e b y t h e 2 0 0 8 B o n d s f r o m t h e F i x e d R a t e
C o n v e r s i o n D a t e , w h i c h r a t e s h a l l b e e s t a b l i s h e d i n a c c o r d a n c e w i t h S e c t i o n 1 4 . 0 5 ( a ) ( v ) .
" F i x e d R a t e C o m p u t a t i o n D a t e " m e a n s a n y B u s i n e s s D a y d u r i n g t h e p e r i o d f r o m a n d
i n c l u d i n g t h e d a t e o f r e c e i p t o f a C o n v e r s i o n N o t i c e r e l a t i n g t o a C o n v e r s i o n t o a F i x e d R a t e t o
a n d i n c l u d i n g t h e B u s i n e s s D a y n e x t p r e c e d i n g t h e p r o p o s e d F i x e d R a t e C o n v e r s i o n D a t e .
" F i x e d R a t e C o n v e r s i o n D a t e " m e a n s t h e C o n v e r s i o n D a t e o n w h i c h t h e i n t e r e s t r a t e o n
t h e 2 0 0 8 B o n d s s h a l l b e c o n v e r t e d t o a F i x e d R a t e .
" F i x e d R a t e P e r i o d " m e a n s t h e p e r i o d f r o m a n d i n c l u d i n g t h e F i x e d R a t e C o n v e r s i o n
D a t e t o a n d i n c l u d i n g t h e m a t u r i t y d a t e o r e a r l i e r d a t e o f r e d e m p t i o n o f t h e 2 0 0 8 B o n d s .
" I n t e r e s t P a y m e n t D a t e " m e a n s ( a ) w i t h r e s p e c t t o t h e 2 0 0 8 B o n d s : ( i ) i n t h e D a i l y
R a t e P e r i o d o r t h e W e e k l y R a t e P e r i o d , t h e f i r s t B u s i n e s s D a y o f e a c h c a l e n d a r m o n t h ; ( i i ) i n t h e
C o m m e r c i a l P a p e r R a t e P e r i o d , t h e d a y i m m e d i a t e l y s u c c e e d i n g t h e l a s t d a y o f e a c h C o m m e r c i a l
P a p e r R a t e P e r i o d ; ( i i i ) e a c h C o n v e r s i o n D a t e ; a n d ( i v ) i n t h e L o n g - T e r m R a t e P e r i o d o r t h e
F i x e d R a t e P e r i o d , e a c h S e m i - A n n u a l I n t e r e s t P a y m e n t D a t e ; a n d ( b ) i n a l l e v e n t s , t h e f i n a l
m a t u r i t y d a t e , r e d e m p t i o n d a t e o r O p t i o n a l P u r c h a s e D a t e o f e a c h 2 0 0 8 B o n d .
" I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d " m e a n s a n y o f t h e m e t h o d s o f d e t e r m i n i n g t h e
i n t e r e s t r a t e o n t h e 2 0 0 8 B o n d s f r o m t i m e t o t i m e a s d e s c r i b e d i n S e c t i o n 1 4 . 0 5 ( a ) .
" I s s u e D a t e " m e a n s , w i t h r e s p e c t t o t h e 2 0 0 8 B o n d s , t h e d a t e o n w h i c h t h e 2 0 0 8 B o n d s
a r e f i r s t d e l i v e r e d t o t h e p u r c h a s e r s t h e r e o f .
" L o n d o n B a n k i n g D a y " m e a n s a n y d a y o n w h i c h c o m m e r c i a l b a n k s a r e o p e n f o r
g e n e r a l b u s i n e s s ( i n c l u d i n g d e a l i n g s i n f o r e i g n e x c h a n g e a n d f o r e i g n c u r r e n c y ) i n t h e C i t y o f
L o n d o n , U n i t e d K i n g d o m .
" L o n g - T e r m R a t e " m e a n s t h e r a t e o f i n t e r e s t o n t h e 2 0 0 8 B o n d s e s t a b l i s h e d i n
a c c o r d a n c e w i t h S e c t i o n 1 4 . 0 5 ( a ) ( i v ) .
" L o n g - T e r m R a t e C o m p u t a t i o n D a t e " m e a n s a n y B u s i n e s s D a y d u r i n g t h e p e r i o d f r o m
a n d i n c l u d i n g t h e d a t e o f r e c e i p t o f a C o n v e r s i o n N o t i c e r e l a t i n g t o a C o n v e r s i o n t o a L o n g - T e r m
R a t e t o a n d i n c l u d i n g t h e B u s i n e s s D a y n e x t p r e c e d i n g t h e p r o p o s e d L o n g - T e r m R a t e
C o n v e r s i o n D a t e .
O H S W e s t : 2 6 0 3 7 9 5 6 5 . 9 3
2 2 5
"Long -Term Rate Conversion Date" means: (i) the Conversion Date on which the
interest rate on the 2008 Bonds shall be converted to a Long -Term Rate; and (ii) the date on
which a new Long -Term Rate Period and Long -Term Rate are to be established.
"Long -Term Rate Continuation Notice" shall have the meaning given such term in
Section 14.05(a)(iv)(B).
"Long -Term Rate Period" means any period during which the 2008 Bonds bear interest
at the Long -Term Rate.
"Mandatory Tender Bonds" has the meaning specified in Section 15.09(c).
"Optional Purchase Date" means each date on which the 2008 Bonds would be subject
to optional redemption and therefore are subject to purchase at the option of the Commission
pursuant to Article XVI.
"Optional Purchase Price" means, with respect to the 2008 Bonds to be purchased
pursuant to Article XVI on any Optional Purchase Date, the principal amount thereof, plus
accrued interest to such Optional Purchase Date, plus an amount equal to the premium, if any,
that would be payable upon the redemption, at the option of the Commission exercised on such
Optional Purchase Date, of such 2008 Bonds.
"Par Call Date" has the meaning assigned in Section 15.01(a)(5).
"Participant" means, with respect to a Securities Depository, each participant listed in
such Securities Depository's book -entry system as having an interest in the 2008 Bonds.
"Purchase Date" means any date on which any 2008 Bond is purchased pursuant to
Section 15.04 or Section 15.05.
"Purchase Price" means, with respect to any 2008 Bond tendered or deemed tendered to
the Trustee for purchase pursuant to Section 15.04 or Section 15.05, an amount equal to 100% of
the principal amount thereof. In addition, if the Purchase Date is not an Interest Payment Date,
the Purchase Price for each 2008 Bond tendered or deemed tendered shall be increased to include
accrued interest thereon to but not including the Purchase Date; provided, however, if such
Purchase Date occurs before an Interest Payment Date, but after the Record Date applicable to
such Interest Payment Date, then the Purchase Price shall not include accrued interest, which
shall be paid to the Holder as of the applicable Record Date.
"Rate" means, with respect to the 2008 Bonds, the interest rate applicable as provided in
this First Supplemental Indenture.
"Rate Index" means the Daily Rate Index, the Weekly Rate Index, or both, as the context
may require.
"Rate Period" means any Daily Rate Period, Weekly Rate Period, Commercial Paper
Rate Period, Long -Term Rate Period or Fixed Rate Period.
OHS West:260379565.9 4
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" R e c o r d D a t e " m e a n s ( a ) f o r a n y I n t e r e s t P a y m e n t D a t e i n r e s p e c t o f a n y D a i l y R a t e
P e r i o d , W e e k l y R a t e P e r i o d o r C o m m e r c i a l P a p e r R a t e P e r i o d , t h e B u s i n e s s D a y n e x t p r e c e d i n g
s u c h I n t e r e s t P a y m e n t D a t e ; ( b ) f o r a n y I n t e r e s t P a y m e n t D a t e i n r e s p e c t o f a n y L o n g - T e r m R a t e
P e r i o d o r F i x e d R a t e P e r i o d , t h e f i f t e e n t h ( 1 5 t h ) d a y ( w h e t h e r o r n o t a B u s i n e s s D a y ) o f t h e
m o n t h p r e c e d i n g t h e m o n t h i n w h i c h s u c h I n t e r e s t P a y m e n t D a t e o c c u r s .
" R e d e m p t i o n D a t e " m e a n s t h e d a t e f i x e d f o r r e d e m p t i o n o f a n y 2 0 0 8 B o n d s u b j e c t t o
r e d e m p t i o n i n a n y n o t i c e o f r e d e m p t i o n g i v e n i n a c c o r d a n c e w i t h t h e t e r m s o f t h e I n d e n t u r e .
" R e d e m p t i o n P r i c e " m e a n s , w i t h r e s p e c t t o a n y 2 0 0 8 B o n d o r a p o r t i o n t h e r e o f , 1 0 0 %
o f t h e p r i n c i p a l a m o u n t t h e r e o f t o b e r e d e e m e d , p l u s t h e a p p l i c a b l e p r e m i u m , i f a n y , p a y a b l e
u p o n r e d e m p t i o n t h e r e o f p u r s u a n t t o s u c h B o n d o r t h i s F i r s t S u p p l e m e n t a l I n d e n t u r e .
" R e m a r k e t i n g A g e n t " m e a n s t h e o n e o r m o r e b a n k s , t r u s t c o m p a n i e s o r m e m b e r s o f t h e
N a t i o n a l A s s o c i a t i o n o f S e c u r i t i e s D e a l e r s , I n c . m e e t i n g t h e q u a l i f i c a t i o n s s e t f o r t h i n
S e c t i o n 1 5 . 1 5 a n d a p p o i n t e d b y a n A u t h o r i z e d R e p r e s e n t a t i v e t o s e r v e a s a R e m a r k e t i n g A g e n t
f o r a n y 2 0 0 8 B o n d s .
" R e m a r k e t i n g A g r e e m e n t " m e a n s a n y a g r e e m e n t o r a g r e e m e n t s e n t e r e d i n t o b y a n d
b e t w e e n t h e C o m m i s s i o n a n d a R e m a r k e t i n g A g e n t f o r 2 0 0 8 B o n d s .
" S e m i - A n n u a l I n t e r e s t P a y m e n t D a t e " m e a n s J u n e 1 o r D e c e m b e r 1 .
" S p r e a d P r e m i u m " h a s t h e m e a n i n g s p e c i f i e d i n S e c t i o n 1 5 . 0 1 ( a ) ( 5 ) .
" T a x - E x e m p t " m e a n s , w i t h r e s p e c t t o i n t e r e s t o n a n y o b l i g a t i o n s o f a s t a t e o r l o c a l
g o v e r n m e n t , t h a t s u c h i n t e r e s t i s e x c l u d e d f r o m t h e g r o s s i n c o m e o f t h e h o l d e r s t h e r e o f ( o t h e r
t h a n a n y h o l d e r w h o i s a " s u b s t a n t i a l u s e r " o f f a c i l i t i e s f i n a n c e d w i t h s u c h o b l i g a t i o n s o r a
" r e l a t e d p e r s o n " w i t h i n t h e m e a n i n g o f S e c t i o n 1 4 7 ( a ) o f t h e C o d e ) f o r f e d e r a l i n c o m e t a x
p u r p o s e s , w h e t h e r o r n o t s u c h i n t e r e s t i s i n c l u d a b l e a s a n i t e m o f t a x p r e f e r e n c e o r o t h e r w i s e
i n c l u d a b l e d i r e c t l y o r i n d i r e c t l y f o r p u r p o s e s o f c a l c u l a t i n g o t h e r t a x l i a b i l i t i e s , i n c l u d i n g a n y
a l t e r n a t i v e m i n i m u m t a x o r e n v i r o n m e n t a l t a x u n d e r t h e C o d e .
" T a x - E x e m p t S e c u r i t i e s " m e a n s b o n d s , n o t e s o r o t h e r s e c u r i t i e s t h e i n t e r e s t o n w h i c h i s
T a x - E x e m p t .
" T e r m i n a t i o n " ( a n d o t h e r f o r m s o f " t e r m i n a t e " ) m e a n s , w h e n u s e d w i t h r e s p e c t t o a n y
2 0 0 8 C r e d i t E n h a n c e m e n t o r 2 0 0 8 L i q u i d i t y F a c i l i t y , t h e r e p l a c e m e n t , r e m o v a l , s u r r e n d e r o r
o t h e r t e r m i n a t i o n o f s u c h 2 0 0 8 C r e d i t E n h a n c e m e n t o r 2 0 0 8 L i q u i d i t y F a c i l i t y , o t h e r t h a n a n
E x p i r a t i o n o r a n e x t e n s i o n o r r e n e w a l t h e r e o f ; p r o v i d e d , h o w e v e r , t h a t T e r m i n a t i o n d o e s n o t
i n c l u d e i m m e d i a t e s u s p e n s i o n o r a u t o m a t i c t e r m i n a t i o n e v e n t s .
" T r e a s u r y R a t e " m e a n s t h e i n t e r e s t r a t e a p p l i c a b l e t o 1 3 - w e e k U n i t e d S t a t e s T r e a s u r y
b i l l s d e t e r m i n e d b y t h e R e m a r k e t i n g A g e n t o n t h e b a s i s o f t h e a v e r a g e p e r a n n u m d i s c o u n t r a t e
a t w h i c h s u c h 1 3 - w e e k T r e a s u r y b i l l s s h a l l h a v e b e e n s o l d a t t h e m o s t r e c e n t T r e a s u r y a u c t i o n .
O H S W e s t 2 6 0 3 7 9 5 6 5 . 9 5
2 2 7
"
" 2 0 0 8 B o n d s " m e a n s t h e R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n S a l e s T a x
R e v e n u e B o n d s ( L i m i t e d T a x B o n d s ) , 2 0 0 8 S e r i e s A , a u t h o r i z e d b y A r t i c l e X I V o f t h i s
I n d e n t u r e .
" 2 0 0 8 B o n d s P u r c h a s e F u n d " m e a n s t h e f u n d b y t h a t n a m e e s t a b l i s h e d p u r s u a n t t o
S e c t i o n 1 7 . 0 1 ( d ) .
" 2 0 0 8 B o n d s R e s e r v e F u n d " m e a n s t h e f u n d b y t h a t n a m e e s t a b l i s h e d p u r s u a n t t o
S e c t i o n 1 7 . 0 1 ( b ) .
" 2 0 0 8 B o n d s R e s e r v e R e q u i r e m e n t " m e a n s , a s o f a n y d a t e o f c a l c u l a t i o n , a n a m o u n t
e q u a l t o t h e l e a s t o f ( i ) t e n p e r c e n t ( 1 0 % ) o f t h e p r i n c i p a l a m o u n t o f t h e 2 0 0 8 B o n d s ( o r i f t h e
a m o u n t o f o r i g i n a l i s s u e d i s c o u n t o r o r i g i n a l i s s u e p r e m i u m a p p l i c a b l e t o t h e 2 0 0 8 B o n d s
e x c e e d s t w o p e r c e n t ( 2 % ) , t e n p e r c e n t ( 1 0 % ) o f t h e i s s u e p r i c e o f t h e 2 0 0 8 B o n d s ) , ( i i ) o n e
h u n d r e d t w e n t y - f i v e p e r c e n t ( 1 2 5 % ) o f a v e r a g e A n n u a l D e b t S e r v i c e o n t h e O u t s t a n d i n g 2 0 0 8
B o n d s , a n d ( i i i ) M a x i m u m A n n u a l D e b t S e r v i c e o n t h e O u t s t a n d i n g 2 0 0 8 B o n d s .
" 2 0 0 8 B o n d s T a x C e r t i f i c a t e " m e a n s t h e T a x C e r t i f i c a t e e x e c u t e d o n b e h a l f o f t h e
C o m m i s s i o n i n c o n n e c t i o n w i t h t h e i s s u a n c e o f t h e 2 0 0 8 B o n d s .
" 2 0 0 8 C o m m i s s i o n A c c o u n t " m e a n s t h e a c c o u n t b y t h a t n a m e w i t h i n t h e 2 0 0 8 B o n d s
P u r c h a s e F u n d e s t a b l i s h e d p u r s u a n t t o S e c t i o n 1 7 . 0 1 ( c ) .
" 2 0 0 8 C o s t s o f I s s u a n c e F u n d " m e a n s t h e f u n d b y t h a t n a m e e s t a b l i s h e d p u r s u a n t t o
S e c t i o n 1 7 . 0 1 ( a ) .
" 2 0 0 8 C r e d i t E n h a n c e m e n t " m e a n s a n y C r e d i t E n h a n c e m e n t p r o v i d e d w i t h r e s p e c t t o
t h e 2 0 0 8 B o n d s .
" 2 0 0 8 C r e d i t P r o v i d e r " m e a n s t h e C r e d i t P r o v i d e r i s s u i n g a 2 0 0 8 C r e d i t E n h a n c e m e n t .
" 2 0 0 8 L i q u i d i t y F a c i l i t y " m e a n s a n y L i q u i d i t y F a c i l i t y p r o v i d e d w i t h r e s p e c t t o t h e
2 0 0 8 B o n d s p u r s u a n t t o S e c t i o n 1 5 . 1 4 o r a n y A l t e r n a t e L i q u i d i t y F a c i l i t y p r o v i d e d w i t h r e s p e c t
t o t h e 2 0 0 8 B o n d s p u r s u a n t t o S e c t i o n 1 5 . 1 4 .
" 2 0 0 8 L i q u i d i t y F a c i l i t y B o n d s " m e a n s L i q u i d i t y F a c i l i t y B o n d s c o n s i s t i n g o f a n y 2 0 0 8
B o n d s p u r c h a s e d w i t h m o n e y s d r a w n u n d e r ( o r o t h e r w i s e o b t a i n e d p u r s u a n t t o t h e t e r m s o f ) a
2 0 0 8 L i q u i d i t y F a c i l i t y a s p r o v i d e d i n S e c t i o n 1 5 . 1 1 ( a ) , b u t e x c l u d i n g a n y B o n d s n o l o n g e r
c o n s i d e r e d t o b e 2 0 0 8 L i q u i d i t y F a c i l i t y B o n d s i n a c c o r d a n c e w i t h t h e t e r m s o f t h e a p p l i c a b l e
2 0 0 8 L i q u i d i t y F a c i l i t y a n d S e c t i o n 1 5 . 1 3 ( e ) .
" 2 0 0 8 L i q u i d i t y F a c i l i t y P u r c h a s e A c c o u n t " m e a n s t h e a c c o u n t b y t h a t n a m e w i t h i n t h e
2 0 0 8 B o n d s P u r c h a s e F u n d e s t a b l i s h e d p u r s u a n t t o S e c t i o n 1 7 . 0 1 ( c ) .
" 2 0 0 8 L i q u i d i t y P r o v i d e r " m e a n s t h e i s s u e r o f t h e 2 0 0 8 L i q u i d i t y F a c i l i t y o r a n y
s u c c e s s o r L i q u i d i t y P r o v i d e r p r o v i d i n g l i q u i d i t y f o r t h e P u r c h a s e P r i c e o f t h e 2 0 0 8 B o n d s
p u r s u a n t t o a 2 0 0 8 L i q u i d i t y F a c i l i t y .
O H S W e s t : 2 6 0 3 7 9 5 6 5 . 9 6
2 2 8
"
"
" 2 0 0 8 R e m a r k e t i n g A c c o u n t " m e a n s t h e a c c o u n t b y t h a t n a m e w i t h i n t h e 2 0 0 8 B o n d s
P u r c h a s e F u n d e s t a b l i s h e d p u r s u a n t t o S e c t i o n 1 7 . 0 1 ( c ) .
" V a r i a b l e R a t e " m e a n s a n y o f t h e D a i l y R a t e , t h e W e e k l y R a t e , t h e C o m m e r c i a l P a p e r
R a t e o r t h e L o n g - T e r m R a t e , a s a p p l i c a b l e .
" V a r i a b l e R a t e D e m a n d B o n d s " m e a n s t h e 2 0 0 8 B o n d s b e a r i n g i n t e r e s t a t a D a i l y R a t e
o r a W e e k l y R a t e .
" W e e k l y P u t B o n d s " s h a l l h a v e t h e m e a n i n g s e t f o r t h i n S e c t i o n 1 5 . 0 9 ( b ) .
" W e e k l y R a t e " m e a n s t h e v a r i a b l e i n t e r e s t r a t e o n t h e 2 0 0 8 B o n d s e s t a b l i s h e d i n
a c c o r d a n c e w i t h S e c t i o n 1 4 . 0 5 ( a ) ( i i ) .
" W e e k l y R a t e I n d e x " m e a n s , o n a n y B u s i n e s s D a y , t h e S I F M A S w a p I n d e x o r , i f t h e
S I F M A S w a p I n d e x i s n o l o n g e r p u b l i s h e d , a n i n d e x o r r a t e a g r e e d u p o n b y t h e C o m m i s s i o n a n d
t h e R e m a r k e t i n g A g e n t ; p r o v i d e d , h o w e v e r , t h a t i f t h e R e m a r k e t i n g A g e n t A d v i s e s t h e T r u s t e e
a n d t h e C o m m i s s i o n t h a t t h e u s e o f t h e S I F M A S w a p I n d e x w o u l d n o t r e s u l t o r n o l o n g e r r e s u l t s
i n a m a r k e t r a t e o f i n t e r e s t o n t h e B o n d s , " W e e k l y R a t e I n d e x " s h a l l m e a n , s u b j e c t t o a F a v o r a b l e .
O p i n i o n o f B o n d C o u n s e l , a n i n d e x a g r e e d t o b y t h e C o m m i s s i o n a n d t h e R e m a r k e t i n g A g e n t
t h a t w o u l d r e s u l t i n a m a r k e t r a t e o f i n t e r e s t o n t h e B o n d s . T h e W e e k l y R a t e I n d e x s h a l l i n n o
e v e n t e x c e e d t h e M a x i m u m I n t e r e s t R a t e .
" W e e k l y R a t e P e r i o d " m e a n s e a c h p e r i o d d u r i n g w h i c h t h e 2 0 0 8 B o n d s b e a r i n t e r e s t a t
W e e k l y R a t e s .
S e c t i o n 1 2 . 0 2 . R u l e s o f C o n s t r u c t i o n . W o r d s o f t h e m a s c u l i n e g e n d e r s h a l l b e d e e m e d
a n d c o n s t r u e d t o i n c l u d e c o r r e l a t i v e w o r d s o f t h e f e m i n i n e a n d n e u t e r g e n d e r s . U n l e s s t h e
c o n t e x t s h a l l o t h e r w i s e i n d i c a t e , w o r d s i m p o r t i n g t h e s i n g u l a r n u m b e r s h a l l i n c l u d e t h e p l u r a l
n u m b e r a n d v i c e v e r s a , a n d w o r d s i m p o r t i n g p e r s o n s s h a l l i n c l u d e c o r p o r a t i o n s a n d a s s o c i a t i o n s ,
i n c l u d i n g p u b l i c b o d i e s , a s w e l l a s n a t u r a l p e r s o n s . D e f i n e d t e r m s s h a l l i n c l u d e a n y v a r i a n t o f
t h e t e r m s s e t f o r t h i n t h i s A r t i c l e X I I .
T h e t e r m s " h e r e b y , " " h e r e o f , " " h e r e t o , " " h e r e i n , " " h e r e u n d e r , " a n d a n y s i m i l a r t e r m s , a s
u s e d i n t h i s F i r s t S u p p l e m e n t a l I n d e n t u r e , r e f e r t o t h e I n d e n t u r e .
A R T I C L E X I I I
F I N D I N G S , D E T E R M I N A T I O N S A N D D I R E C T I O N S
S e c t i o n 1 3 . 0 1 . F i n d i n g s a n d D e t e r m i n a t i o n s . T h e C o m m i s s i o n h e r e b y f i n d s a n d
d e t e r m i n e s t h a t t h e 2 0 0 8 B o n d s s h a l l b e i s s u e d p u r s u a n t t o S e c t i o n 3 . 0 1 a n d u p o n t h e i s s u a n c e o f
t h e 2 0 0 8 B o n d s , a n y a n d a l l a c t s , c o n d i t i o n s a n d t h i n g s r e q u i r e d t o e x i s t , t o h a p p e n a n d t o b e
p e r f o r m e d , p r e c e d e n t t o a n d i n t h e i s s u a n c e t h e r e o f , w i l l e x i s t , w i l l h a v e h a p p e n e d a n d w i l l h a v e
b e e n p e r f o r m e d , i n d u e t i m e , f o r m a n d m a n n e r , a s r e q u i r e d b y t h e C o n s t i t u t i o n a n d s t a t u t e s o f
t h e S t a t e .
S e c t i o n 1 3 . 0 2 . R e c i t a l i n B o n d s . T h e r e s h a l l b e i n c l u d e d i n e a c h o f t h e d e f m i t i v e 2 0 0 8
B o n d s , a n d a l s o i n e a c h o f t h e t e m p o r a r y 2 0 0 8 B o n d s , i f a n y a r e i s s u e d , a c e r t i f i c a t i o n a n d r e c i t a l
O H S W e s t : 2 6 0 3 7 9 5 6 5 . 9 7
2 2 9
that any and all acts, conditions and things required to exist, to happen and to be performed,
precedent to and in the incurring of the indebtedness evidenced by that 2008 Bond, and in the
issuing of that 2008 Bond, exist, have happened and have been performed in due time, form and
manner, as required by the Constitution and statutes of the State and the Act, and that said 2008
Bond, together with all other indebtedness of the Commission payable out of Revenues, is within
every debt and other limit prescribed by the Constitution and statutes of the State and the Act,
and that such certification and recital shall be in such form as is set forth in the form of the 2008
Bond attached hereto as Exhibit A.
Section 13.03. Effect of Findings and Recital. From and after the issuance of the 2008
Bonds, the findings and determinations herein shall be conclusive evidence of the existence of
the facts so found and determined in any action or proceeding in any court in which the validity
of the 2008 Bonds is at issue.
ARTICLE XIV
AUTHORIZATION OF 2008 BONDS
Section 14.01. Principal Amount, Designation and Series. Pursuant to the provisions
of this Indenture and the provisions of the Act, a Series of Bonds entitled to the benefit,
protection and security of such provisions is hereby authorized in the aggregate principal amount
of $ . Such Bonds shall be designated as, and shall be distinguished from the
Bonds of all other Series by the title, "Riverside County Transportation Commission Sales Tax
Revenue Bonds (Limited Tax Bonds), 2008 Series A."
At any time after the execution and delivery of this Supplemental Indenture, the
Commission may execute and, upon the order of the Commission, the Trustee shall authenticate
and deliver the 2008 Bonds in the aggregate principal amount set forth above.
Section 14.02. Purpose and Application of Proceeds. The 2008 Bonds are issued for
the purpose of refunding $110,005,000 principal amount of the Commission's Notes and to pay
accrued interest thereon. In addition, a portion of the proceeds will be applied to pay capitalized
interest on the Bonds through December 1, 2009, to fund the 2008 Bond Reserve Requirement
and to pay Costs of Issuance of the 2008 Bonds.
The net proceeds from the sale of the 2008 Bonds in the amount of $ shall be
received by the Trustee, and the Trustee shall deposit or transfer such funds as follows:
(a) $ of such proceeds shall be deposited in the 2008 Costs of Issuance
Fund;
(b) $ of such proceeds shall be deposited in the Interest Fund and used to
pay capitalized interest on the 2008 Bonds through December 1, 2009;
(c) $ of such proceeds shall be deposited in the 2008 Bonds Reserve Fund
in satisfaction of the 2008 Bonds Reserve Requirement; and
(d) $ of such proceeds shall be transferred to the Notes Trustee for
deposit upon the order of the Commission.
OHS West:260379565.9 8
230
"
S e c t i o n 1 4 . 0 3 . F o r m , D e n o m i n a t i o n , N u m b e r s a n d L e t t e r s . T h e 2 0 0 8 B o n d s s h a l l b e
i s s u e d a s f u l l y r e g i s t e r e d b o n d s w i t h o u t c o u p o n s i n b o o k - e n t r y f o r m a n d i n A u t h o r i z e d
D e n o m i n a t i o n s a n d s h a l l b e n u m b e r e d f r o m o n e u p w a r d i n c o n s e c u t i v e n u m e r i c a l o r d e r p r e c e d e d
b y t h e l e t t e r " R " p r e f i x e d t o t h e n u m b e r . E a c h 2 0 0 8 B o n d a n d t h e c e r t i f i c a t e o f a u t h e n t i c a t i o n
s h a l l b e s u b s t a n t i a l l y i n t h e f o r m a t t a c h e d h e r e t o a s E x h i b i t A , w h i c h f o r m i s h e r e b y a p p r o v e d
a n d a d o p t e d a s t h e f o r m o f t h e 2 0 0 8 B o n d s a n d a s t h e f o r m o f t h e c e r t i f i c a t e o f a u t h e n t i c a t i o n a s
s u c h f o r m s h a l l b e c o m p l e t e d b a s e d o n t h e t e r m s o f t h e 2 0 0 8 B o n d s s e t f o r t h h e r e i n .
S e c t i o n 1 4 . 0 4 . D a t e , M a t u r i t i e s a n d I n t e r e s t R a t e s . T h e 2 0 0 8 B o n d s s h a l l b e d a t e d
t h e i r I s s u e D a t e . T h e 2 0 0 8 B o n d s s h a l l b e i s s u e d i n t h e a g g r e g a t e p r i n c i p a l a m o u n t o f
$ a n d s h a l l m a t u r e a n d b e p a y a b l e o n J u n e 1 , 2 0 2 9 . T h e 2 0 0 8 B o n d s s h a l l b e
i s s u e d a s V a r i a b l e R a t e B o n d s a n d e a c h 2 0 0 8 B o n d s h a l l b e a r i n t e r e s t a t t h e r a t e o r r a t e s
d e t e r m i n e d i n a c c o r d a n c e w i t h S e c t i o n 1 4 . 0 5 . E a c h 2 0 0 8 B o n d s h a l l i n i t i a l l y b e a r i n t e r e s t a t a
L o n g - T e r m R a t e o f _ p e r c e n t ( % ) p e r a n n u m w i t h a L o n g - T e r m R a t e P e r i o d e n d i n g
D e c e m b e r I , 2 0 0 9 , a n d t h e i n i t i a l I n t e r e s t P a y m e n t D a t e s h a l l b e D e c e m b e r 1 , 2 0 0 8 . O n
D e c e m b e r 1 , 2 0 0 9 , t h e 2 0 0 8 B o n d s s h a l l b e s u b j e c t t o m a n d a t o r y p u r c h a s e a n d c o n v e r s i o n t o
a n o t h e r I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d p u r s u a n t t o S e c t i o n 1 4 . 0 5 ( b ) . P r i o r t o D e c e m b e r 1 ,
2 0 0 9 , t h e 2 0 0 8 B o n d s s h a l l n o t b e s u b j e c t t o c o n v e r s i o n t o a n o t h e r I n t e r e s t R a t e D e t e r m i n a t i o n
M e t h o d . T h e 2 0 0 8 B o n d s s h a l l n o t b e s u b j e c t t o r e d e m p t i o n u n t i l t h e e n d o f t h e i n i t i a l
L o n g - T e r m R a t e P e r i o d , D e c e m b e r 1 , 2 0 0 9 .
I n t e r e s t o n e a c h 2 0 0 8 B o n d s h a l l b e p a y a b l e o n e a c h I n t e r e s t P a y m e n t D a t e u n t i l t h e
p r i n c i p a l s u m h a s b e e n p a i d ; p r o v i d e d , h o w e v e r , t h a t i f a t t h e m a t u r i t y d a t e o f t h e 2 0 0 8 B o n d ( o r
i f t h e s a m e i s r e d e e m a b l e a n d s h a l l b e d u l y c a l l e d f o r r e d e m p t i o n , t h e n a t t h e d a t e f i x e d f o r
r e d e m p t i o n ) f u n d s a r e a v a i l a b l e f o r t h e p a y m e n t o r r e d e m p t i o n t h e r e o f , i n f u l l a c c o r d a n c e w i t h
t e r m s o f t h e I n d e n t u r e , s u c h 2 0 0 8 B o n d s h a l l t h e n c e a s e t o b e a r i n t e r e s t .
E a c h 2 0 0 8 B o n d s h a l l b e a r i n t e r e s t f r o m t h e l a t e s t o f : ( i ) i t s I s s u e D a t e ; ( i i ) t h e m o s t
r e c e n t I n t e r e s t P a y m e n t D a t e t o w h i c h i n t e r e s t h a s b e e n p a i d t h e r e o n o r d u l y p r o v i d e d f o r , o r ( i i i )
i f t h e d a t e o f a u t h e n t i c a t i o n o f s u c h B o n d i s a f t e r a R e c o r d D a t e b u t p r i o r t o t h e i m m e d i a t e l y
s u c c e e d i n g I n t e r e s t P a y m e n t D a t e , t h e I n t e r e s t P a y m e n t D a t e i m m e d i a t e l y s u c c e e d i n g s u c h d a t e
o f a u t h e n t i c a t i o n .
F a c h 2 0 0 8 B o n d s h a l l b e p a y a b l e a s p r o v i d e d i n S e c t i o n 2 . 1 0 , i n c l u d i n g S e c t i o n 2 . 1 0 ( E ) ,
o r , i n t h e e v e n t t h e u s e o f t h e S e c u r i t i e s D e p o s i t o r y i s d i s c o n t i n u e d , t h e p r i n c i p a l o f e a c h 2 0 0 8
B o n d s h a l l b e p a y a b l e i n l a w f u l m o n e y o f t h e U n i t e d S t a t e s o f A m e r i c a u p o n s u r r e n d e r t h e r e o f a t
t h e P r i n c i p a l O f f i c e o f t h e T r u s t e e , a n d t h e i n t e r e s t o n e a c h 2 0 0 8 B o n d s h a l l b e p a y a b l e i n l a w f u l
m o n e y o f t h e U n i t e d S t a t e s o f A m e r i c a b y t h e T r u s t e e t o t h e H o l d e r t h e r e o f a s o f t h e c l o s e o f
b u s i n e s s o n t h e R e c o r d D a t e , s u c h i n t e r e s t t o b e p a i d b y t h e T r u s t e e t o s u c h H o l d e r i n
i m m e d i a t e l y a v a i l a b l e f u n d s ( b y w i r e t r a n s f e r o r b y d e p o s i t t o t h e a c c o u n t o f t h e H o l d e r i f s u c h
a c c o u n t i s m a i n t a i n e d w i t h t h e T r u s t e e ) , a c c o r d i n g t o t h e i n s t r u c t i o n s g i v e n b y s u c h H o l d e r t o t h e
T r u s t e e o r , i n t h e e v e n t n o s u c h i n s t r u c t i o n s h a v e b e e n g i v e n , b y c h e c k m a i l e d b y f i r s t c l a s s m a i l
t o t h e H o l d e r a t s u c h H o l d e r ' s a d d r e s s a s i t a p p e a r s a s o f t h e R e c o r d D a t e o n t h e b o n d
r e g i s t r a t i o n b o o k s k e p t b y t h e T r u s t e e .
O H S W e s t 2 6 0 3 7 9 5 6 5 . 9 9
2 3 1
Section 14.05. Interest Rates on 2008 Bonds.
Except for 2008 Liquidity Facility Bonds, which shall bear interest at the rate or rates
(but not in excess of the Maximum Interest Rate), and be payable at the times, specified in the
applicable 2008 Liquidity Facility, the 2008 Bonds shall be Current Interest Bonds and, until
converted to a Fixed Rate, the 2008 Bonds shall constitute Variable Rate Indebtedness and shall
bear interest at a Variable Rate determined as provided in this First Supplemental Indenture.
The 2008 Bonds shall bear interest as provided herein from and including the Issue Date
to but excluding the date of payment in full of the 2008 Bonds (such interest to be computed on
the basis of a 365/366-day year and actual days elapsed during any Daily Rate Period, Weekly
Rate Period or Commercial Paper Rate Period; and to be computed on the basis of a 360-day
year of twelve (12) 30-day months during any Long -Term Rate Period). Interest shall accrue on
the 2008 Bonds from one Interest Payment Date to, but not including, the next Interest Payment
Date.
Upon Conversion of the 2008 Bonds to a Fixed Rate, the 2008 Bonds shall bear interest
from and including the Conversion Date to the date of payment in full of the 2008 Bonds
(computed on the basis of a 360-day year of twelve (12) 30-day months).
The interest rates on the 2008 Bonds shall be determined as provided in Section 14.05(a);
provided, that no Rate as so determined shall exceed the Maximum Interest Rate in effect on the
date of determination thereof.
At any one time, each 2008 Bond shall have the same Interest Rate Determination
Method and (except 2008 Bonds that are 2008 Liquidity Facility Bonds, 2008 Bonds during a
Commercial Paper Rate Period, and 2008 Bonds of different maturities bearing interest at a
Fixed Rate) shall bear interest at the same interest rate. Upon issuance, the 2008 Bonds shall
bear interest at a Long -Term Rate.
14.05(a) Interest Rate Determination Method.
14.05(a)(i) Daily Rate. Upon a successful Conversion of the 2008 Bonds to
bear interest at the Daily Rate pursuant to Section 14.05(b) and until the 2008 Bonds are
successfully converted to another Interest Rate Determination Method pursuant to said
Section 14.05(b), the 2008 Bonds shall bear interest at a Daily Rate. During each Daily Rate
Period for the 2008 Bonds, the Remarketing Agent shall set a Daily Rate for the 2008 Bonds by
9:30 a.m., New York City time, on each Business Day, which Daily Rate shall be the rate of
interest which, if borne by the 2008 Bonds in the Daily Rate Period, would, in the judgment of
the Remarketing Agent, having due regard for the prevailing fmancial market conditions for Tax -
Exempt Securities that are of the same general nature as the 2008 Bonds, or Tax -Exempt
Securities that are competitive as to credit and maturity (or period for tender) with the credit and
maturity (or period for tender) of the 2008 Bonds for which the Daily Rate is to be determined,
be the lowest interest rate that would enable such Remarketing Agent to place the 2008 Bonds at
a price equal to 100% of the aggregate principal amount of the 2008 Bonds (plus accrued
interest, if any) on such Business Day. The Daily Rate for any non -Business Day will be the rate
for the last Business Day on which a Daily Rate was set.
OHS West:260379565.9
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1 4 . 0 5 ( a ) ( i i ) W e e k l y R a t e . U p o n a s u c c e s s f u l C o n v e r s i o n o f t h e 2 0 0 8 B o n d s t o
b e a r i n t e r e s t a t t h e W e e k l y R a t e p u r s u a n t t o S e c t i o n 1 4 . 0 5 ( b ) a n d u n t i l t h e 2 0 0 8 B o n d s a r e .
s u c c e s s f u l l y c o n v e r t e d t o a n o t h e r I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d p u r s u a n t t o
S e c t i o n 1 4 . 0 5 ( b ) , t h e 2 0 0 8 B o n d s s h a l l b e a r i n t e r e s t a t a W e e k l y R a t e . D u r i n g e a c h W e e k l y R a t e
P e r i o d , t h e R e m a r k e t i n g A g e n t s h a l l s e t a W e e k l y R a t e f o r t h e 2 0 0 8 B o n d s , b y 5 : 0 0 p . m . , N e w
Y o r k C i t y t i m e , o n e a c h W e d n e s d a y ( o r t h e i m m e d i a t e l y s u c c e e d i n g B u s i n e s s D a y , i f s u c h ,
W e d n e s d a y i s n o t a B u s i n e s s D a y ) f o r t h e n e x t C a l e n d a r W e e k ; p r o v i d e d , t h a t , t h e W e e k l y R a t e
f o r t h e f i r s t C a l e n d a r W e e k ( o r p o r t i o n t h e r e o f ) f o l l o w i n g a C o n v e r s i o n D a t e r e s u l t i n g i n a
c h a n g e i n t h e I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d t o a W e e k l y R a t e s h a l l b e s e t b y s u c h
R e m a r k e t i n g A g e n t o n t h e B u s i n e s s D a y i m m e d i a t e l y p r e c e d i n g s u c h C o n v e r s i o n D a t e . E a c h
W e e k l y R a t e s h a l l b e t h e r a t e o f i n t e r e s t t h a t , i f b o r n e b y t h e 2 0 0 8 B o n d s i n t h e W e e k l y R a t e
P e r i o d , w o u l d , i n t h e j u d g m e n t o f t h e R e m a r k e t i n g A g e n t , h a v i n g d u e r e g a r d f o r t h e p r e v a i l i n g
f i n a n c i a l m a r k e t c o n d i t i o n s f o r T a x - E x e m p t S e c u r i t i e s t h a t a r e o f t h e s a m e g e n e r a l n a t u r e a s t h e
2 0 0 8 B o n d s f o r w h i c h t h e W e e k l y R a t e i s t o b e d e t e r m i n e d , o r T a x - E x e m p t S e c u r i t i e s t h a t a r e
c o m p e t i t i v e a s t o c r e d i t a n d m a t u r i t y ( o r p e r i o d f o r t e n d e r ) w i t h t h e c r e d i t a n d m a t u r i t y ( o r p e r i o d
f o r t e n d e r ) o f t h e 2 0 0 8 B o n d s f o r w h i c h t h e W e e k l y R a t e i s t o b e d e t e r m i n e d , b e t h e l o w e s t
i n t e r e s t r a t e t h a t w o u l d e n a b l e t h e R e m a r k e t i n g A g e n t t o p l a c e t h e 2 0 0 8 B o n d s a t a p r i c e e q u a l t o
1 0 0 % o f t h e a g g r e g a t e p r i n c i p a l a m o u n t o f t h e 2 0 0 8 B o n d s ( p l u s a c c r u e d i n t e r e s t , i f a n y ) o n t h e
f i r s t d a y o f s u c h W e e k l y R a t e P e r i o d .
1 4 . 0 5 ( a ) ( i i i ) C o m m e r c i a l P a p e r R a t e . U p o n a s u c c e s s f u l C o n v e r s i o n o f t h e
2 0 0 8 B o n d s t o b e a r i n t e r e s t a t t h e C o m m e r c i a l P a p e r R a t e p u r s u a n t t o S e c t i o n 1 4 . 0 5 ( b ) , a n d u n t i l .
t h e 2 0 0 8 B o n d s a r e s u c c e s s f u l l y c o n v e r t e d t o a n o t h e r I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d
p u r s u a n t t o s a i d S e c t i o n 1 4 . 0 5 ( b ) , t h e 2 0 0 8 B o n d s s h a l l b e a r i n t e r e s t a t t h e a p p l i c a b l e
C o m m e r c i a l P a p e r R a t e o r R a t e s . T h e R e m a r k e t i n g A g e n t s h a l l s e l e c t t h e C o m m e r c i a l P a p e r
R a t e P e r i o d f o r e a c h 2 0 0 8 B o n d o n a B u s i n e s s D a y s e l e c t e d b y t h e R e m a r k e t i n g A g e n t n o t m o r e
t h a n f i v e ( 5 ) B u s i n e s s D a y s p r i o r t o t h e f i r s t d a y o f s u c h C o m m e r c i a l P a p e r R a t e P e r i o d a n d n o t
l a t e r t h a n 1 2 : 3 0 p . m . , N e w Y o r k C i t y t i m e , o n t h e f i r s t d a y o f s u c h C o m m e r c i a l P a p e r R a t e
P e r i o d . E a c h C o m m e r c i a l P a p e r R a t e P e r i o d s h a l l b e a p e r i o d o f n o t l e s s t h a n o n e ( 1 ) n o r m o r e
t h a n 2 7 0 d a y s d e t e r m i n e d b y t h e R e m a r k e t i n g A g e n t w i t h t h e i n t e n t i o n o f y i e l d i n g t h e l o w e s t
o v e r a l l i n t e r e s t e x p e n s e o n t h e 2 0 0 8 B o n d s , t a k i n g i n t o a c c o u n t ( A ) a l l o t h e r C o m m e r c i a l P a p e r
R a t e P e r i o d s f o r t h e 2 0 0 8 B o n d s , ( B ) g e n e r a l e c o n o m i c a n d m a r k e t c o n d i t i o n s r e l e v a n t t o t h e
2 0 0 8 B o n d s a n d ( C ) s u c h o t h e r f a c t s , c i r c u m s t a n c e s a n d c o n d i t i o n s a s s u c h R e m a r k e t i n g A g e n t
d e t e r m i n e s t o b e r e l e v a n t . N o t w i t h s t a n d i n g t h e f o r e g o i n g , n o C o m m e r c i a l P a p e r R a t e P e r i o d f o r
a n y 2 0 0 8 B o n d s h a l l b e s e l e c t e d w i t h a l a s t d a y l a t e r t h a n t h e f i f t h ( 5 t h ) B u s i n e s s D a y p r i o r t o
t h e e x p i r a t i o n d a t e o f a n y 2 0 0 8 L i q u i d i t y F a c i l i t y t h e n i n e f f e c t w i t h r e s p e c t t o s u c h 2 0 0 8 B o n d
w h i l e b e a r i n g i n t e r e s t a t t h e C o m m e r c i a l P a p e r R a t e . T h e l a s t d a y o f e a c h C o m m e r c i a l P a p e r
R a t e P e r i o d s h a l l b e a d a y i m m e d i a t e l y p r e c e d i n g a B u s i n e s s D a y . I f t h e I n t e r e s t R a t e
D e t e r m i n a t i o n M e t h o d w i t h r e s p e c t t o t h e 2 0 0 8 B o n d s i s b e i n g c o n v e r t e d f r o m a C o m m e r c i a l
P a p e r R a t e t o a n e w I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d , a f t e r r e c e i p t o f t h e C o n v e r s i o n N o t i c e
d e l i v e r e d p u r s u a n t t o S e c t i o n 1 4 . 0 5 ( b ) , t h e R e m a r k e t i n g A g e n t s h a l l d e t e r m i n e t h e C o m m e r c i a l
P a p e r R a t e P e r i o d s w i t h r e s p e c t t o t h e 2 0 0 8 B o n d s i n s u c h m a n n e r t h a t , a s s o o n a s p o s s i b l e , a l l
C o m m e r c i a l P a p e r R a t e P e r i o d s w i t h r e s p e c t t o t h e 2 0 0 8 B o n d s s h a l l e n d o n t h e s a m e d a t e ,
w h i c h d a t e s h a l l b e t h e l a s t d a y o f t h e t h e n - c u r r e n t C o m m e r c i a l P a p e r R a t e P e r i o d s a n d , u p o n t h e
e s t a b l i s h m e n t o f s u c h C o m m e r c i a l P a p e r R a t e P e r i o d s , t h e d a y n e x t s u c c e e d i n g t h e l a s t d a y o f a l l
s u c h C o m m e r c i a l P a p e r R a t e P e r i o d s s h a l l b e t h e C o n v e r s i o n D a t e f o r t h e n e w I n t e r e s t R a t e
D e t e r m i n a t i o n M e t h o d . T h e R e m a r k e t i n g A g e n t , p r o m p t l y u p o n t h e d e t e r m i n a t i o n o f t h e l a s t
O H S W e s t : 2 6 0 3 7 9 5 6 5 . 9
1 1
2 3 3
day of such Commercial Paper Rate Periods prior to Conversion to a new Interest Rate
Determination Method, shall give written notice of such last day and such Conversion Date to
the Notice Parties.
The Remarketing Agent shall set a Commercial Paper Rate for each 2008 Bond
bearing interest at the Commercial Paper Rate not -later than 12:30 p.m., New York City time, on
the first day of each Commercial Paper Rate Period for the 2008 Bonds. The Commercial Paper
Rate applicable to each 2008 Bond bearing interest at the Commercial Paper Rate will be the rate
determined by the Remarketing Agent to be the lowest interest rate that would enable such
Remarketing Agent to place such 2008 Bond on the first day of the applicable Commercial Paper
Rate Period at a price equal to 100% of the aggregate principal amount of such Bond.
14.05(a)(iv)(A) Long -Term Rate. The 2008 Bonds are issued in a Long -
Term Rate Period with a term ending December 1, 2009, and until the establishment of a new
Long -Term Rate Period and a new Long -Term Rate for the 2008 Bonds then bearing interest at a
Long -Term Rate, or until the 2008 Bonds are successfully converted to another Interest Rate
Determination Method pursuant to Section 14.05(b) or Section 14.05(a)(iv)(F), the 2008 Bonds
shall bear interest at the Long -Tenn Rate specified in Section 14.04 for the Long -Term Rate
Period specified therein. The Commission shall select the duration of each Long -Term Rate
Period for the 2008 Bonds and shall include the duration of the Long -Term Rate Period in the
Conversion Notice given with respect to such Long -Term Rate Period pursuant to
Section 14.05(b) or the Long -Term Rate Continuation Notice given with respect to any new
Long -Term Rate and Long -Term Rate Period for the 2008 Bonds then bearing interest at a Long -
Term Rate. Each Long -Term Rate Period shall continence on the Long -Term Rate Conversion
Date and end on a Business Day selected by the Commission which is a minimum of 180 days
after the Long -Term Rate Conversion Date, but in no event later than the maturity date of the
2008 Bonds. With respect to each Long -Term Rate Period, the Remarketing Agent will set the
Long -Term Rate for the 2008 Bonds by 5:00 p.m., New York City time, on the applicable Long -
Term Rate Computation Date. Subject to the provisions of Section 14.05(a)(iv)(G), each Long -
Term Rate shall be the rate of interest that, if borne by the 2008 Bonds in such Long -Term Rate
Period, would, in the judgment of the Remarketing Agent, having due regard for the prevailing
financial market conditions for Tax -Exempt Securities that are of the same general nature as the
2008 Bonds for which the Long -Term Rate is to be determined, or Tax -Exempt Securities that
are competitive as to credit and maturity (or period for tender) with the credit and maturity (or
period for tender) of the 2008 Bonds for which the Long -Term Rate is to be determined, be the
lowest interest rate that would enable such Remarketing Agent to place the 2008 Bonds at a price
equal to 100% of the aggregate principal amount of the 2008 Bonds on the first day of such
Long -Term Rate Period.
14.05(a)(iv)(B) Long -Term Rate Continuation. As of the day following the
last day of a Long -Term Rate Period for the 2008 Bonds, unless the Commission has given a
Conversion Notice with respect to the Conversion of the 2008 Bonds to another Interest Rate
Determination Method pursuant to Section 14.05(b), the Commission may establish a new Long -
Term Rate Period and Long -Term Rate for the 2008 Bonds with such right to be exercised by
delivery of a written notice of an Authorized Representative containing the contents specified in
Section 14.05(a)(iv)(D) (a "Long -Term Rate Continuation Notice") to the Notice Parties no less
than twenty (20) days prior to the effective date of the new Long -Term Rate Period.
OHS West:260379565.9
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T h e L o n g - T e r m R a t e C o n t i n u a t i o n N o t i c e m u s t b e a c c o m p a n i e d b y a n O p i n i o n o f
B o n d C o u n s e l s t a t i n g t h a t t h e n e w L o n g - T e r m R a t e P e r i o d i s a u t h o r i z e d a n d p e r m i t t e d u n d e r t h i s
F i r s t S u p p l e m e n t a l I n d e n t u r e a n d w i l l n o t , i n a n d o f i t s e l f , a d v e r s e l y a f f e c t t h e T a x - E x e m p t
s t a t u s o f t h e i n t e r e s t o n t h e 2 0 0 8 B o n d s .
1 4 . 0 5 ( a ) ( i v ) ( C ) L i m i t a t i o n s . A n y e s t a b l i s h m e n t o f a n e w L o n g - T e r m R a t e
a n d L o n g - T e r m R a t e P e r i o d f o r t h e 2 0 0 8 B o n d s p u r s u a n t t o S e c t i o n 1 4 . 0 5 ( a ) ( i v ) ( B ) a b o v e m u s t
c o m p l y w i t h t h e f o l l o w i n g :
- t h e f i r s t d a y o f s u c h n e w L o n g - T e r m R a t e P e r i o d m u s t b e a n I n t e r e s t
P a y m e n t D a t e o n w h i c h t h e 2 0 0 8 B o n d s a r e s u b j e c t t o m a n d a t o r y t e n d e r p u r s u a n t t o t h e
a p p l i c a b l e p r o v i s i o n s o f S e c t i o n 1 5 . 0 5 ;
- t h e f i r s t d a y o f s u c h n e w L o n g - T e r m R a t e P e r i o d m u s t b e a B u s i n e s s D a y ;
a n d
- n o n e w L o n g - T e r m R a t e s h a l l b e c o m e e f f e c t i v e u n l e s s t h e O p i n i o n o f
B o n d C o u n s e l r e f e r r e d t o i n S e c t i o n 1 4 . 0 5 ( a ) ( i v ) ( B ) i s r e d e l i v e r e d o n ( a n d a s o f ) t h e f i r s t d a y o f
t h e n e w L o n g - T e r m R a t e P e r i o d a n d a l l O u t s t a n d i n g 2 0 0 8 B o n d s a r e s u c c e s s f u l l y r e m a r k e t e d i n
t h e n e w L o n g - T e r m R a t e P e r i o d a t t h e n e w L o n g - T e r m R a t e o n t h e f i r s t d a y o f t h e n e w L o n g -
T e r m R a t e P e r i o d .
1 4 . 0 5 ( a ) ( i v ) ( D ) C o n t e n t s o f L o n g - T e n n R a t e C o n t i n u a t i o n N o t i c e . T h e
C o m m i s s i o n ' s L o n g - T e r m R a t e C o n t i n u a t i o n N o t i c e m u s t s p e c i f y : ( i ) t h e p r o p o s e d L o n g - T e r m
R a t e P e r i o d ; ( i i ) w h e t h e r a n y 2 0 0 8 C r e d i t E n h a n c e m e n t o r 2 0 0 8 L i q u i d i t y F a c i l i t y t h e n i n e f f e c t
w i l l r e m a i n i n e f f e c t d u r i n g t h e p r o p o s e d L o n g - T e r m R a t e P e r i o d ; a n d ( i i i ) i f n e w 2 0 0 8 C r e d i t
E n h a n c e m e n t o r a n e w 2 0 0 8 L i q u i d i t y F a c i l i t y w i l l b e p r o v i d e d t o b e e f f e c t i v e d u r i n g t h e
p r o p o s e d L o n g - T e r m R a t e P e r i o d , t h e f o r m o f s u c h 2 0 0 8 C r e d i t E n h a n c e m e n t o r 2 0 0 8 L i q u i d i t y
F a c i l i t y a n d t h e i d e n t i t y o f t h e 2 0 0 8 C r e d i t P r o v i d e r o r 2 0 0 8 L i q u i d i t y P r o v i d e r .
1 4 . 0 5 ( a ) ( i v ) ( E ) N o t i c e t o H o l d e r s . U p o n r e c e i p t o f a L o n g - T e n n R a t e
C o n t i n u a t i o n N o t i c e f r o m a n A u t h o r i z e d R e p r e s e n t a t i v e , a s s o o n a s p o s s i b l e , b u t i n a n y e v e n t n o t
l e s s t h a n f i f t e e n ( 1 5 ) d a y s p r i o r t o t h e f i r s t d a y o f t h e p r o p o s e d L o n g - T e r m R a t e P e r i o d , t h e
T r u s t e e s h a l l g i v e n o t i c e b y f i r s t - c l a s s m a i l t o t h e H o l d e r s o f t h e 2 0 0 8 B o n d s w h i c h n o t i c e s h a l l
s t a t e i n s u b s t a n c e :
- t h a t a n e w L o n g - T e r m R a t e P e r i o d a n d L o n g - T e r m R a t e i s t o b e
e s t a b l i s h e d f o r t h e 2 0 0 8 B o n d s o n t h e a p p l i c a b l e L o n g - T e r m R a t e C o n v e r s i o n D a t e i f t h e
c o n d i t i o n s s p e c i f i e d i n t h i s F i r s t S u p p l e m e n t a l I n d e n t u r e a r e s a t i s f i e d o n o r b e f o r e s u c h d a t e ;
t h a t a l l 2 0 0 8 B o n d s a r e s u b j e c t t o m a n d a t o r y t e n d e r f o r p u r c h a s e o n t h e
f i r s t d a y o f t h e n e w L o n g - T e r m R a t e P e r i o d ( w h e t h e r o r n o t t h e p r o p o s e d n e w L o n g - T e r m R a t e
P e r i o d b e c o m e s e f f e c t i v e o n s u c h d a t e , u n l e s s t h e r e i s n o L i q u i d i t y F a c i l i t y f o r t h e e x i s t i n g
L o n g - T e r m R a t e P e r i o d a n d t h e p r o p o s e d n e w L o n g - T e r m R a t e P e r i o d d o e s n o t b e c o m e
e f f e c t i v e , i n w h i c h c a s e t h e m a n d a t o r y t e n d e r w i l l h e c a n c e l l e d ) a t t h e P u r c h a s e P r i c e , w h i c h
s h a l l b e s p e c i f i e d t h e r e i n ;
O H S W e s t : 2 6 0 3 7 9 5 6 5 . 9
t h e f i r s t d a y o f t h e n e w L o n g - T e r m R a t e P e r i o d ;
1 3
2 3 5
- that the Commission has delivered to the Trustee an Opinion of Bond
Counsel to the effect that the new Long -Term Rate Period is authorized and permitted under this
First Supplemental Indenture and will not, in and of itself, adversely affect the Tax -Exempt
status of the interest on the 2008 Bonds;
- that a new Long -Term Rate Period and Long -Term Rate for the 2008
Bonds shall not be established unless the Favorable Opinion of Bond Counsel referred to above
is redelivered to the Trustee on (and as of) the first day of the new Long -Term Rate Period and
all 2008 Bonds are successfully remarketed in the new Long -Term Rate Period and at the new
Long -Term Rate on the first day thereof;
and
- the CUSIP numbers or other identification information of the 2008 Bonds;
- that, to the extent that there shall be on deposit with the Trustee on the first
day of the new Long -Term Rate Period an amount of money sufficient to pay the Purchase Price
thereof, all 2008 Bonds not delivered to the Trustee on or prior to such date shall be deemed to
have been properly tendered for purchase and shall cease to constitute or represent a right on
behalf of the Holder thereof to the payment of principal thereof or interest thereon and shall
represent and constitute only the right to payment of the Purchase Price on deposit with the
Trustee, without interest accruing thereon after such date.
14.05(a)(iv)(F) End of Long -Term Rate. In the event the Commission has
not given a Long -Term Rate Continuation Notice or a Conversion Notice with respect to 2008
Bonds bearing interest at a Long -Term Rate at the time required by Section 14.05(a)(iv)(B) or
Section 14.05(b), as applicable, or if the conditions to the effectiveness of (i) a new Long -Term
Rate Period and new Long -Term Rate set forth in Section 14.05(a)(iv)(C) or (ii) Conversion to a
new Interest Rate Determination Method set forth in Section 14.05(b)(ii)(D), as applicable, are
not satisfied, then on the day following the last day of the current Long -Term Rate Period, a
Weekly Rate Period shall automatically commence for the 2008 Bonds; provided, however, that
the 2008 Bonds shall not be subject to optional tender and shall bear interest at a rate of eleven
percent (11%) per arum until such time as the 2008 Bonds are successfully remarketed at an
Interest Rate Determination Method in accordance with the provisions hereof, provided that
notice of Conversion may be given five (5) Business Days prior to the Conversion Date.
14.05(a)(iv)(G) Sale at Premium or Discount. Notwithstanding the
provisions of Section 14.05(a)(iv)(A) or 14.05(a)(v)(A), the Long -Term Rate or Fixed Rate, as
the case may be, shall be the rate of interest per arum determined by the Remarketing Agent to
be the interest rate which, if borne by the 2008 Bonds, would enable the Remarketing Agent to
sell such 2008 Bonds at a price (without regard to accrued interest) which will result in the
lowest net interest cost for the 2008 Bonds, after taking into account any premium or discount at
which the 2008 Bonds are sold by the Remarketing Agent, provided that:
— the Remarketing Agent certifies to the Trustee and the Commission that
the sale of the 2008 Bonds at the interest rate and premium or discount specified by the
Remarketing Agent is expected to result in the lowest net interest cost for such 2008 Bonds on
the Long -Term Rate or Fixed Rate Conversion Date;
OHS West:260379565.9
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"
- t h e C o m m i s s i o n c o n s e n t s i n w r i t i n g t o t h e s a l e o f t h e 2 0 0 8 B o n d s b y t h e
R e m a r k e t i n g A g e n t a t s u c h p r e m i u m o r d i s c o u n t ;
- i n t h e c a s e o f 2 0 0 8 B o n d s t o b e s o l d a t a d i s c o u n t , e i t h e r ( a ) a 2 0 0 8
L i q u i d i t y F a c i l i t y i s i n e f f e c t w i t h r e s p e c t t o s u c h 2 0 0 8 B o n d s a n d p r o v i d e s f o r t h e p u r c h a s e o f
s u c h 2 0 0 8 B o n d s a t s u c h d i s c o u n t , o r ( b ) t h e C o m m i s s i o n a g r e e s t o t r a n s f e r t o t h e R e m a r k e t i n g
A g e n t o n t h e C o n v e r s i o n D a t e , i n i m m e d i a t e l y a v a i l a b l e f u n d s f o r d e p o s i t i n t h e 2 0 0 8
C o m m i s s i o n A c c o u n t , a n a m o u n t e q u a l t o s u c h d i s c o u n t ;
- i n t h e c a s e o f 2 0 0 8 B o n d s t o b e s o l d a t a p r e m i u m , t h e R e m a r k e t i n g A g e n t
s h a l l t r a n s f e r t o t h e T r u s t e e a n a m o u n t e q u a l t o s u c h p r e m i u m , w h i c h a m o u n t s h a l l e i t h e r b e u s e d
t o p a y c o s t s a s s o c i a t e d w i t h t h e C o n v e r s i o n o r d e p o s i t e d i n t h e R e v e n u e F u n d a s s p e c i f i e d b y t h e
C o m m i s s i o n ; a n d
o n o r b e f o r e t h e d a t e o f t h e d e t e r m i n a t i o n o f t h e L o n g - T e r m R a t e o r F i x e d
R a t e , t h e C o m m i s s i o n d e l i v e r s t o t h e T r u s t e e a n d t h e R e m a r k e t i n g A g e n t a l e t t e r o f B o n d
C o u n s e l t o t h e e f f e c t t h a t B o n d C o u n s e l e x p e c t s t o b e a b l e t o g i v e a F a v o r a b l e O p i n i o n o f B o n d
C o u n s e l o n t h e C o n v e r s i o n D a t e ; a n d
- o n o r b e f o r e t h e C o n v e r s i o n D a t e , a F a v o r a b l e O p i n i o n o f B o n d C o u n s e l
s h a l l h a v e b e e n r e c e i v e d b y t h e T r u s t e e a n d c o n f i r m e d t o t h e C o m m i s s i o n a n d t h e R e m a r k e t i n g
A g e n t .
1 4 . 0 5 ( a ) ( v ) F i x e d R a t e .
1 4 . 0 5 ( a ) ( v ) ( A ) T h e I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d f o r t h e 2 0 0 8
B o n d s m a y b e c o n v e r t e d f r o m a n y V a r i a b l e R a t e t o a F i x e d R a t e i n a c c o r d a n c e w i t h t h e
p r o v i s i o n s o f S e c t i o n 1 4 . 0 5 ( b ) . A f t e r s u c h C o n v e r s i o n , t h e 2 0 0 8 B o n d s s h a l l b e a r i n t e r e s t a t t h e
F i x e d R a t e a n d s h a l l n o t b e s u b j e c t t o C o n v e r s i o n t o a n o t h e r I n t e r e s t R a t e D e t e r m i n a t i o n
M e t h o d . S u b j e c t t o t h e p r o v i s i o n s o f S e c t i o n 1 4 . 0 5 ( a ) ( i v ) ( G ) , t h e i n t e r e s t r a t e t o b e b o r n e b y t h e
2 0 0 8 B o n d s o f e a c h m a t u r i t y f r o m t h e F i x e d R a t e C o n v e r s i o n D a t e s h a l l b e t h e r a t e d e t e r m i n e d
b y t h e a p p l i c a b l e R e m a r k e t i n g A g e n t o n t h e F i x e d R a t e C o m p u t a t i o n D a t e t o b e t h e r a t e t h a t , i f
b o r n e b y t h e 2 0 0 8 B o n d s , w o u l d , i n t h e j u d g m e n t o f t h e R e m a r k e t i n g A g e n t h a v i n g d u e r e g a r d
f o r p r e v a i l i n g m a r k e t c o n d i t i o n s f o r T a x - E x e m p t S e c u r i t i e s t h a t a r e c o m p a r a b l e t o t h e 2 0 0 8
B o n d s , b e t h e l o w e s t i n t e r e s t r a t e t h a t w o u l d e n a b l e s u c h R e m a r k e t i n g A g e n t t o p l a c e t h e 2 0 0 8
B o n d s o f s u c h m a t u r i t y f o r w h i c h t h e F i x e d R a t e i s t o b e d e t e r m i n e d a t a p r i c e e q u a l t o 1 0 0 % o f
t h e a g g r e g a t e p r i n c i p a l a m o u n t o f s u c h 2 0 0 8 B o n d s o n t h e F i x e d R a t e C o n v e r s i o n D a t e .
1 4 . 0 5 ( a ) ( v ) ( B ) I f t h e C o m m i s s i o n o b t a i n s a F a v o r a b l e O p i n i o n o f B o n d
C o u n s e l w i t h r e s p e c t t o s u c h a c t i o n s : ( i ) i n d e t e r m i n i n g t h e F i x e d R a t e f o r a n y 2 0 0 8 B o n d , t h e
a p p l i c a b l e R e m a r k e t i n g A g e n t , s u b j e c t t o t h e a p p r o v a l o f a n A u t h o r i z e d R e p r e s e n t a t i v e , m a y
a l s o d e t e r m i n e o n o r b e f o r e t h e B u s i n e s s D a y n e x t p r e c e d i n g t h e d e t e r m i n a t i o n o f t h e F i x e d R a t e
f o r s u c h 2 0 0 8 B o n d s , r e d e m p t i o n d a t e s a n d r e d e m p t i o n p r e m i u m s , i f a n y , t o b e p a i d u p o n t h e
o p t i o n a l r e d e m p t i o n o f s u c h 2 0 0 8 B o n d s w h i c h d i f f e r f r o m s u c h r e d e m p t i o n d a t e s a n d p r e m i u m s
a s a r e s e t f o r t h i n S e c t i o n 1 5 . 0 1 ( a ) ( 4 ) , s u c h r e d e m p t i o n d a t e s a n d r e d e m p t i o n p r e m i u m s , i f a n y ,
t o b e , i n t h e b e s t j u d g m e n t o f t h e R e m a r k e t i n g A g e n t , c o n s i s t e n t w i t h t h e n - c u r r e n t m a r k e t
c o n d i t i o n s ; a n d ( i i ) t h e R e m a r k e t i n g A g e n t , s u b j e c t t o t h e a p p r o v a l o f a n A u t h o r i z e d
O H S W e s t : 2 6 0 3 7 9 5 6 5 . 9
1 5
2 3 7
Representative, may also determine, on or before the Business Day next preceding the
determination of the Fixed Rate for such 2008 Bonds, with respect to any 2008 Bond constituting
a Term Bond, a new maturity date for any portion of such 2008 Bond; provided, however, that
such new maturity date shall be a June 1 prior to the original maturity date; and provided further
that such 2008 Bond shall continue to be subject to mandatory redemption from Mandatory
Sinking Account Payments established for such 2008 Bond unless, on any Mandatory Sinking
Account Payment due date for such 2008 Bond, such Mandatory Sinking Account Payment is
applied to the payment of that portion of such 2008 Bond which now matures on such Mandatory
Sinking Account Payment due date.
14.05(a)(vi) Failure to Determine Rate for Certain Rate Periods.
14.05(a)(vi)(A) If, for any reason, the Daily Rate or the Weekly Rate on
any 2008 Bond is not established as provided herein by the Remarketing Agent pursuant to
Sections 14.05(a)(i) or (ii) or no Remarketing Agent shall be serving as such hereunder for such
2008 Bonds or any Rate so established is held to be invalid or unenforceable with respect to any
such Rate Period, then the interest rate for such Rate Period shall be 100% of the applicable Rate
Index on the date such Daily Rate or Weekly Rate was (or would have been) determined as
provided above.
14.05(a)(vi)(B) If, for any reason, the Remarketing Agent fails to set the
length of any Commercial Paper Rate Period or to establish any Commercial Paper Rate for any
2008 Bond or a court holds any Commercial Paper Rate Period or Commercial Paper Rate for
any 2008 Bond to be invalid or unenforceable, a Commercial Paper Rate Period for such 2008
Bond shall last through the next day immediately preceding a Business Day (or until the earlier
stated maturity thereof) and the interest rate applicable to such 2008 Bond shall be 100% of the
Daily Rate Index on the fast day of such Rate Period.
14.05(a)(vii) Notice of Rates. In a timely fashion following the determination of
any Rate, the Remarketing Agent establishing such Rate shall give written notice or notice by
Electronic Means thereof to the Commission and the Trustee. Such notice shall also include
details as to the principal amount of the 2008 Bonds and the Interest Rate Determination Method
at the time applicable. Promptly upon receipt of notice from a Remarketing Agent of any Fixed
Rate, the Trustee shall give the Holder of each 2008 Bond being converted to a Fixed Rate notice
of the Fixed Rate.
14.05(a)(viii) Absence of Remarketing Agent; Binding Determination. If no
Remarketing Agent shall be serving hereunder with respect to the 2008 Bonds (other than 2008
Bonds in a Fixed Rate Period), the determination of the applicable Rate Index shall be made by
the Trustee at the direction of the Commission. The determination of any Rate or Rate Index by
a Remarketing Agent or, as aforesaid, the Trustee, at the direction of the Commission, with
respect to any 2008 Bond, shall be conclusive and binding upon the Commission, the Trustee,
the Remarketing Agent, each 2008 Credit Provider, each 2008 Liquidity Provider and the Holder
of such 2008 Bond.
14.05(a)(ix) No Liability. In determining the interest rate that any 2008 Bond
shall bear as provided in this Section 14.05, neither the Remarketing Agent nor the Trustee shall
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h a v e a n y l i a b i l i t y t o t h e C o m m i s s i o n o r t h e H o l d e r o f s u c h 2 0 0 8 B o n d , e x c e p t f o r i t s n e g l i g e n c e
o r w i l l f u l m i s c o n d u c t .
1 4 . 0 5 ( b ) C o n v e r s i o n o f I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d .
1 4 . 0 5 ( b ) ( i ) R i g h t o f C o n v e r s i o n . T h e I n t e r e s t R a t e D e t e r m i n a t i o n
M e t h o d f o r t h e 2 0 0 8 B o n d s i s s u b j e c t t o C o n v e r s i o n f r o m t i m e t o t i m e b y t h e C o m m i s s i o n , w i t h
s u c h r i g h t t o b e e x e r c i s e d b y d e l i v e r y o f a w r i t t e n n o t i c e o f a n A u t h o r i z e d R e p r e s e n t a t i v e
c o n t a i n i n g t h e c o n t e n t s s p e c i f i e d i n S e c t i o n 1 4 . 0 5 ( b ) ( i i i ) ( e a c h s u c h n o t i c e b e i n g a " C o n v e r s i o n
N o t i c e " ) t o t h e N o t i c e P a r t i e s a s f o l l o w s ( e x c e p t a s o t h e r w i s e p r o v i d e d i n S e c t i o n
1 4 . 0 4 ( a ) ( i v ) ( F ) ) :
( 1 ) a t l e a s t t w o ( 2 ) B u s i n e s s D a y s p r i o r t o t h e f i f t e e n t h ( 1 5 t h ) d a y p r e c e d i n g
t h e e f f e c t i v e d a t e o f s u c h p r o p o s e d C o n v e r s i o n , i n t h e e v e n t o f a C o n v e r s i o n t o a D a i l y
R a t e P e r i o d , W e e k l y R a t e P e r i o d o r C o m m e r c i a l P a p e r R a t e P e r i o d ; a n d
( 2 ) a t l e a s t t h r e e ( 3 ) B u s i n e s s D a y s p r i o r t o t h e f i f t e e n t h ( 1 5 t h ) d a y p r e c e d i n g
t h e e f f e c t i v e d a t e o f s u c h p r o p o s e d C o n v e r s i o n , i n t h e e v e n t o f a C o n v e r s i o n t o a L o n g -
T e r m R a t e o r a F i x e d R a t e .
E a c h A u t h o r i z e d R e p r e s e n t a t i v e i s h e r e b y a u t h o r i z e d t o e x e c u t e a n d d e l i v e r a
C o n v e r s i o n N o t i c e t o c h a n g e t h e I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d a t s u c h t i m e s o r t i m e s a s
t h e o f f i c e r e x e c u t i n g t h e C o n v e r s i o n N o t i c e d e t e r m i n e s t o b e i n t h e b e s t i n t e r e s t s o f t h e
C o m m i s s i o n , s u c h d e t e r m i n a t i o n t o b e c o n c l u s i v e l y e v i d e n c e d b y s u c h e x e c u t i o n .
T h e C o n v e r s i o n N o t i c e m u s t b e a c c o m p a n i e d b y a n O p i n i o n o f B o n d C o u n s e l
s t a t i n g t h a t t h e C o n v e r s i o n i s a u t h o r i z e d a n d p e r m i t t e d u n d e r t h i s I n d e n t u r e a n d w i l l n o t , i n a n d
o f i t s e l f , a d v e r s e l y a f f e c t t h e T a x - E x e m p t s t a t u s o f t h e i n t e r e s t o n a n y o f t h e 2 0 0 8 B o n d s .
1 4 . 0 5 ( b ) ( i i ) L i m i t a t i o n s . A n y C o n v e r s i o n p u r s u a n t t o t h i s S e c t i o n 1 4 . 0 5 ( b )
m u s t c o m p l y w i t h t h e f o l l o w i n g :
1 4 . 0 5 ( b ) ( i i ) ( A ) t h e C o n v e r s i o n D a t e m u s t b e a d a t e o n w h i c h t h e 2 0 0 8
B o n d s a r e s u b j e c t t o m a n d a t o r y t e n d e r p u r s u a n t t o t h e a p p l i c a b l e p r o v i s i o n s o f S e c t i o n 1 5 . 0 5 ;
1 4 . 0 5 ( b ) ( i i ) ( B ) t h e C o n v e r s i o n D a t e m u s t b e a B u s i n e s s D a y a n d , i f t h e
C o n v e r s i o n i s f r o m t h e C o m m e r c i a l P a p e r R a t e , s h a l l b e a d a t e d e t e r m i n e d i n a c c o r d a n c e w i t h
S e c t i o n 1 4 . 0 5 ( a ) ( i i i ) ;
1 4 . 0 5 ( b ) ( i i ) ( C ) t h e 2 0 0 8 L i q u i d i t y F a c i l i t y f o r t h e 2 0 0 8 B o n d s a f t e r a
C o n v e r s i o n t o a V a r i a b l e R a t e ( o t h e r t h a n a L o n g - T e r m R a t e ) m u s t c o v e r p r i n c i p a l p l u s a c c r u e d
i n t e r e s t ( c o m p u t e d a t t h e M a x i m u m I n t e r e s t R a t e t h e n i n e f f e c t o n t h e b a s i s o f a 3 6 5 - d a y y e a r
a n d a c t u a l d a y s e l a p s e d o r a 3 6 0 d a y y e a r o f t w e l v e 3 0 - d a y m o n t h s , a s a p p l i c a b l e ) f o r t h e
m a x i m u m n u m b e r o f d a y s b e t w e e n I n t e r e s t P a y m e n t D a t e s p e r m i t t e d u n d e r t h a t I n t e r e s t R a t e
D e t e r m i n a t i o n M e t h o d , p l u s s u c h a d d i t i o n a l n u m b e r o f d a y s , i f a n y , a s s h a l l b e r e q u i r e d b y e a c h
R a t i n g A g e n c y t h e n r a t i n g t h e 2 0 0 8 B o n d s ; p r o v i d e d t h a t i f t h e n u m b e r o f d a y s o f i n t e r e s t
c o v e r a g e p r o v i d e d b y t h e a p p l i c a b l e 2 0 0 8 L i q u i d i t y F a c i l i t y i s b e i n g c h a n g e d f r o m t h e n u m b e r
O H S W e s t 2 6 0 3 7 9 5 6 5 . 9 1 7
2 3 9
of days previously in place, the Trustee shall have also received a Rating Confirmation from
each of the Rating Agencies then rating the 2008 Bonds;
14.05(b)(ii)(D) no Conversion shall become effective unless the Favorable
Opinion of Bond Counsel referred to in Section 14.05(b)(i) is redelivered on (and as of) the
Conversion Date and all Outstanding 2008 Bonds are successfully purchased or deemed
purchased and remarketed in the new Interest Rate Determination Method on the Conversion
Date; and
14.05(b)(ii)(E) upon Conversion of 2008 Bonds to a Fixed Rate Period or a
Long -Tenn Rate Period without a Liquidity Facility, an Authorized Representative may provide
in the Conversion Notice to the applicable 2008 Liquidity Provider a request for termination of
the 2008 Liquidity Facility with respect to the 2008 Bonds to be effective upon such Conversion.
14.05(b)(iii) Contents of Conversion Notice. The Conversion Notice must
specify: (A) the proposed Conversion Date; (B) the new Interest Rate Determination Method to
take effect; (C) if the Conversion is to a Long -Term Rate, the Long -Term Rate Period; (D)
whether any 2008 Credit Enhancement or 2008 Liquidity Facility then in effect will remain in
effect after the proposed Conversion; (E) if new 2008 Credit Enhancement or a new 2008
Liquidity Facility will be provided to be effective upon such Conversion, the form of such 2008
Credit Enhancement or 2008 Liquidity Facility and the identity of the 2008 Credit Provider or
2008 Liquidity Provider; and (F) if the Conversion is to a Long -Term Rate Period or Fixed Rate
Period, the redemption_ dates and redemption prices applicable to such Long -Term Rate Period or
Fixed Rate Period.
14.05(b)(iv) Notice to Holders. Upon receipt of a Conversion Notice from an
Authorized Representative, as soon as possible, but in any event not less than fifteen (15) days
prior to the proposed Conversion Date, the Trustee shall give notice by first-class mail to the
Holders of 2008 Bonds, which notice shall state in substance:
14.05(b)(iv)(A) that the Interest Rate Determination Method for the 2008
Bonds shall be converted to the specified Variable Rate or the Fixed Rate, as the case may be, on
the applicable Conversion Date if the conditions specified in this First Supplemental Indenture
are satisfied on or before such date;
14.05(b)(iv)(B) the applicable Conversion Date;
14.05(b)(iv)(C) that the Commission has delivered to the Trustee an
Opinion of Bond Counsel to the effect that the Conversion is authorized and permitted under this
Indenture and will not, in and of itself, adversely affect the Tax -Exempt status of the interest on
any of the 2008 Bonds;
14.05(b)(iv)(D) that the Interest Rate Determination Method for the 2008
Bonds shall not be converted unless the Favorable Opinion of Bond Counsel referred to above is
redelivered to the Trustee on (and as of) the Conversion Date and all 2008 Bonds are
successfully purchased and remarketed in the new Interest Rate Determination Method on the
Conversion Date;
OHS West:260379565.9
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"
1 4 . 0 5 ( b ) ( i v ) ( E ) t h e C U S I P n u m b e r s o r o t h e r i d e n t i f i c a t i o n i n f o r m a t i o n o f
s u c h 2 0 0 8 B o n d s ;
1 4 . 0 5 ( b ) ( i v ) ( F ) t h a t a l l 2 0 0 8 B o n d s a r e s u b j e c t t o m a n d a t o r y t e n d e r f o r
p u r c h a s e o n t h e C o n v e r s i o n D a t e ( w h e t h e r o r n o t t h e p r o p o s e d C o n v e r s i o n b e c o m e s e f f e c t i v e o n
s u c h d a t e , u n l e s s c o n v e r t i n g f r o m a L o n g - T e r m R a t e P e r i o d f o r w h i c h t h e r e i s n o L i q u i d i t y
F a c i l i t y a n d t h e p r o p o s e d C o n v e r s i o n d o e s n o t b e c o m e e f f e c t i v e , i n w h i c h c a s e t h e m a n d a t o r y
t e n d e r w i l l b e c a n c e l l e d ) a t t h e a p p l i c a b l e P u r c h a s e P r i c e , w h i c h P u r c h a s e P r i c e s h a l l b e
s p e c i f i e d i n t h e n o t i c e ; a n d
1 4 . 0 5 ( b ) ( i v ) ( G ) t h a t , t o t h e e x t e n t t h a t t h e r e s h a l l b e o n d e p o s i t w i t h t h e
T r u s t e e o n t h e a p p l i c a b l e C o n v e r s i o n D a t e a n a m o u n t o f m o n e y s u f f i c i e n t t o p a y t h e P u r c h a s e
P r i c e t h e r e o f , a l l 2 0 0 8 B o n d s t o b e c o n v e r t e d o n t h e C o n v e r s i o n D a t e n o t d e l i v e r e d t o t h e
T r u s t e e o n o r p r i o r t o t h e C o n v e r s i o n D a t e s h a l l b e d e e m e d t o h a v e b e e n p r o p e r l y t e n d e r e d f o r
p u r c h a s e a n d s h a l l c e a s e t o c o n s t i t u t e o r r e p r e s e n t a r i g h t o n b e h a l f o f t h e H o l d e r t h e r e o f t o t h e
p a y m e n t o f p r i n c i p a l t h e r e o f o r i n t e r e s t t h e r e o n a n d s h a l l r e p r e s e n t a n d c o n s t i t u t e o n l y t h e r i g h t
t o p a y m e n t o f t h e P u r c h a s e P r i c e o n d e p o s i t w i t h t h e T r u s t e e , w i t h o u t i n t e r e s t a c c r u i n g t h e r e o n
a f t e r t h e C o n v e r s i o n D a t e .
1 4 . 0 5 ( b ) ( v ) F a i l u r e o f C o n d i t i o n s t o b e M e t . I f t h e C o m m i s s i o n f a i l s t o d e l i v e r
t h e F a v o r a b l e O p i n i o n o f B o n d C o u n s e l r e q u i r e d b y S e c t i o n 1 4 . 0 5 ( b ) ( i i ) ( D ) t o t h e T r u s t e e o n o r
b e f o r e t h e C o n v e r s i o n D a t e o r i f t h e T r u s t e e r e c e i v e s w r i t t e n n o t i c e t o t h e e f f e c t t h a t t h e
R e m a r k e t i n g A g e n t h a s n o t s u c c e s s f u l l y r e m a r k e t e d a l l o f t h e O u t s t a n d i n g 2 0 0 8 B o n d s a t t h e
n e w I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d , t h e I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d s h a l l n o t b e
c o n v e r t e d , b u t t h e 2 0 0 8 B o n d s s h a l l b e d e e m e d t o h a v e b e e n t e n d e r e d f o r p u r c h a s e o n t h e
C o n v e r s i o n D a t e s p e c i f i e d i n t h e C o n v e r s i o n N o t i c e ( e x c e p t i f c o n v e r t i n g f r o m a L o n g - T e r m
R a t e P e r i o d f o r w h i c h t h e r e i s n o L i q u i d i t y F a c i l i t y ) a n d s h a l l b e p u r c h a s e d o n t h e C o n v e r s i o n
D a t e s p e c i f i e d i n t h e C o n v e r s i o n N o t i c e a n d , e x c e p t a s o t h e r w i s e p r o v i d e d i n
S e c t i o n 1 4 . 0 5 ( a ) ( i v ) ( F ) , t h e 2 0 0 8 B o n d s s h a l l c o n t i n u e t o b e a r i n t e r e s t a t t h e I n t e r e s t R a t e
D e t e r m i n a t i o n M e t h o d i n e f f e c t p r i o r t o t h e p r o p o s e d C o n v e r s i o n D a t e s p e c i f i e d i n t h e
C o n v e r s i o n N o t i c e ; p r o v i d e d , h o w e v e r , t h a t n o t w i t h s t a n d i n g a n y t h i n g t o t h e c o n t r a r y p r o v i d e d i n
t h i s S e c t i o n 1 4 . 0 5 , t h e r a t e o f i n t e r e s t o n t h e 2 0 0 8 B o n d s s h a l l b e d e t e r m i n e d o n t h e p r o p o s e d
C o n v e r s i o n D a t e a n d , i f s u f f i c i e n t f u n d s a r e n o t a v a i l a b l e f o r t h e p u r c h a s e o f s u c h 2 0 0 8 B o n d s ,
t h e p r o v i s i o n s o f S e c t i o n 1 5 . 1 1 ( d ) s h a l l a p p l y . I n s u c h e v e n t , t h e C o m m i s s i o n a n d t h e H o l d e r s
o f t h e 2 0 0 8 B o n d s s h a l l b e r e s t o r e d ( e x c e p t a s a f o r e s a i d w i t h r e s p e c t t o t h e p u r c h a s e o f t h e 2 0 0 8
B o n d s ) t o t h e i r f o r m e r p o s i t i o n s a n d r i g h t s h e r e u n d e r w i t h r e s p e c t t o t h e 2 0 0 8 B o n d s , a n d a l l
r i g h t s o f t h e C o m m i s s i o n h e r e u n d e r s h a l l c o n t i n u e a s i f n o s u c h p r o c e e d i n g s f o r t h e C o n v e r s i o n
o f t h e I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d o n t h e 2 0 0 8 B o n d s h a d t a k e n p l a c e .
T h e T r u s t e e s h a l l i m m e d i a t e l y n o t i f y b y E l e c t r o n i c M e a n s t h e N o t i c e P a r t i e s o f
e a c h s u c h f a i l e d C o n v e r s i o n .
1 4 . 0 5 ( b ) ( v i ) N o t i c e F a i l u r e N o B a r . F a i l u r e o f a H o l d e r o f a 2 0 0 8 B o n d t o
r e c e i v e t h e n o t i c e d e s c r i b e d i n S e c t i o n 1 4 . 0 5 ( b ) ( i v ) , o r a n y d e f e c t t h e r e i n , s h a l l n o t a f f e c t t h e
v a l i d i t y o f a n y R a t e o r a n y c o n t i n u a t i o n o f o r c h a n g e i n t h e I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d
f o r a n y o f t h e 2 0 0 8 B o n d s o r e x t e n d t h e p e r i o d f o r t e n d e r i n g a n y o f t h e 2 0 0 8 B o n d s f o r p u r c h a s e ,
O H S W e s t : 2 6 0 3 7 9 5 6 5 . 9
1 9
2 4 1
and the Trustee shall not be liable to any Holder of a 2008 Bond by reason of the failure of such
Holder to receive such notice or any defect therein.
14.05(b)(vii) No Conversion During Continuance of Event of Default. No
Conversion shall occur under this Section 14.05(b) if at the time of such Conversion an Event of
Default shall have occurred and be continuing. The Trustee and the Remarketing Agent may
conclusively rely upon a certificate of an Authorized Representative that no such default exists.
14.05(b)(viii) Notice to Remarketing Agent. The Commission may not elect a
change in the Interest Rate Determination Method for the 2008 Bonds without written notice to
the Remarketing Agent for the 2008 Bonds.
14.05(b)(ix) Rescission of Election. Notwithstanding anything herein to the
contrary, the Commission may rescind any Conversion Notice given pursuant to this
Section 14.05(b) prior to the proposed Conversion Date set forth in the Conversion Notice by
giving written notice thereof to the Notice Parties two or more Business Days prior to such
proposed Conversion Date. If the Trustee receives notice of such rescission prior to the time the
Trustee has given notice to the Holders of the 2008 Bonds pursuant to Section 14.05(b)(iv), then,
the Conversion Notice previously delivered by the Commission shall be of no force and effect.
If the Trustee receives notice from the Commission of rescission of the Conversion Notice after
the Trustee has given notice to the Holders of the 2008 Bonds pursuant to Section 14.05(b)(iv),
then the 2008 Bonds shall continue to be subject to mandatory tender for purchase on the
Conversion Date specified in the Conversion Notice (unless, prior to the proposed Conversion
Date, the 2008 Bonds were in a Long -Term Rate Period for which there was no Liquidity
Facility), and the Rate Period for the 2008 Bonds shall automatically adjust to, or continue as, a
Weekly Rate Period on the Conversion Date specified in the Conversion Notice. No Opinion of
Bond Counsel shall be required in connection with any automatic adjustment to a Weekly Rate
Period.
14.05(c) Conversion of 2008 Liquidity Facility Bonds. Notwithstanding anything
to the contrary contained in the Indenture, if all of the Outstanding 2008 Bonds are 2008
Liquidity Facility Bonds, the 2008 Bonds may be converted to a Fixed Rate on such Conversion
Date as shall be acceptable to the applicable 2008 Liquidity Provider, the Trustee, the
Remarketing Agent and the Commission, provided that on such Conversion Date the
Commission shall deliver to the Trustee an Opinion of Bond Counsel stating that the Conversion
is authorized and permitted under the Indenture and will not, in and of itself, adversely affect the
Tax -Exempt status of the interest on any 2008 Bonds.
ARTICLE XV
REDEMPTION AND PURCHASE OF 2008 BONDS
Section 15.01. Optional Redemption of 2008 Bonds.
(a) Optional Redemption of 2008 Bonds.
(1) Commercial Paper Rate Period. 2008 Bonds .bearing interest at the
Commercial Paper Rate are subject to redemption, at the option of the Commission, in whole or
OHS West260379565.9
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242
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i n p a r t , o n t h e d a y f o l l o w i n g t h e e n d o f a n y C o m m e r c i a l P a p e r R a t e P e r i o d , a t a r e d e m p t i o n p r i c e
e q u a l t o t h e p r i n c i p a l a m o u n t t h e r e o f , p l u s a c c r u e d i n t e r e s t , i f a n y , w i t h o u t p r e m i u m .
( 2 ) D a i l y R a t e P e r i o d a n d W e e k l y R a t e P e r i o d . 2 0 0 8 B o n d s b e a r i n g i n t e r e s t
a t a D a i l y R a t e o r a W e e k l y R a t e a r e s u b j e c t t o r e d e m p t i o n , a t t h e o p t i o n o f t h e C o m m i s s i o n , i n
w h o l e o r i n p a r t , i n A u t h o r i z e d D e n o m i n a t i o n s o n a n y B u s i n e s s D a y , a t a r e d e m p t i o n p r i c e e q u a l
t o t h e p r i n c i p a l a m o u n t t h e r e o f , p l u s a c c r u e d i n t e r e s t , i f a n y , w i t h o u t p r e m i u m .
( 3 ) L o n g - T e r m R a t e P e r i o d . 2 0 0 8 B o n d s b e a r i n g i n t e r e s t a t t h e L o n g - T e r m
R a t e a r e s u b j e c t t o r e d e m p t i o n , a t t h e o p t i o n o f t h e C o m m i s s i o n , i n w h o l e o r i n p a r t , i n
A u t h o r i z e d D e n o m i n a t i o n s , o n t h e d a y f o l l o w i n g t h e l a s t d a y o f a n y L o n g - T e r m R a t e P e r i o d a n d
o n s u c h o t h e r d a t e s a s s h a l l h a v e b e e n s p e c i f i e d i n t h e C o n v e r s i o n N o t i c e w i t h r e s p e c t t o t h e
L o n g - T e r m R a t e P e r i o d , d e l i v e r e d w i t h a F a v o r a b l e O p i n i o n o f B o n d C o u n s e l , a t a r e d e m p t i o n
p r i c e e q u a l t o t h e p r i n c i p a l a m o u n t t h e r e o f , p l u s a c c r u e d i n t e r e s t , i f a n y , w i t h o u t p r e m i u m .
( 4 ) F i x e d R a t e P e r i o d . U n l e s s t h e C o m m i s s i o n o b t a i n s a F a v o r a b l e O p i n i o n
o f B o n d C o u n s e l a n d c h a n g e s r e d e m p t i o n p r o v i s i o n s a s p r o v i d e d i n S e c t i o n 1 4 . 0 5 ( a ) ( v ) ( B ) , 2 0 0 8
B o n d s b e a r i n g i n t e r e s t a t a F i x e d R a t e a r e s u b j e c t t o r e d e m p t i o n i n w h o l e o r i n p a r t ( a n d i f i n
p a r t , i n s u c h o r d e r o f m a t u r i t y a n d M a n d a t o r y S i n k i n g A c c o u n t P a y m e n t d a t e s a s t h e
C o m m i s s i o n s h a l l s p e c i f y a n d w i t h i n a m a t u r i t y o r M a n d a t o r y S i n k i n g A c c o u n t P a y m e n t d a t e b y
l o t o r b y s u c h o t h e r m e t h o d a s t h e T r u s t e e d e t e r m i n e s t o b e f a i r a n d r e a s o n a b l e a n d i n
A u t h o r i z e d D e n o m i n a t i o n s ) , a t t h e o p t i o n o f t h e C o m m i s s i o n , o n a n y d a t e , a t s u c h t i m e s a n d a t
s u c h r e d e m p t i o n p r i c e s a s f o l l o w s :
( a ) I f , o n t h e F i x e d R a t e C o n v e r s i o n D a t e , t h e r e m a i n i n g t e r m o f t h e
2 0 0 8 B o n d s i s g r e a t e r t h a n e i g h t y e a r s , t h e n t h e 2 0 0 8 B o n d s w i l l n o t b e s u b j e c t t o
o p t i o n a l r e d e m p t i o n u n t i l t h e f a s t J u n e 1 o r D e c e m b e r 1 ( w h i c h e v e r i s e a r l i e r ) t o f o l l o w
t h e e i g h t h ( 8 t h ) a n n i v e r s a r y o f t h e c o n v e r s i o n t o a F i x e d R a t e . O n s u c h f i r s t J u n e 1 o r
D e c e m b e r 1 , t h e 2 0 0 8 B o n d s w i l l b e s u b j e c t t o r e d e m p t i o n a t 1 0 2 % o f t h e p r i n c i p a l
a m o u n t t h e r e o f , p l u s a c c r u e d i n t e r e s t , i f a n y , t o t h e d a t e o f r e d e m p t i o n , w h i c h r e d e m p t i o n
p r i c e w i l l d e c l i n e b y o n e p e r c e n t ( 1 % ) p e r a n n u m o n e a c h s u c c e e d i n g a n n i v e r s a r y o f s u c h
f i r s t J u n e 1 o r D e c e m b e r 1 u n t i l r e a c h i n g a r e d e m p t i o n p r i c e o f 1 0 0 % o f t h e p r i n c i p a l
a m o u n t t h e r e o f , p l u s a c c r u e d i n t e r e s t , i f a n y , t o t h e d a t e o f r e d e m p t i o n , a n d t h e r e a f t e r a t a
r e d e m p t i o n p r i c e o f 1 0 0 % o f t h e p r i n c i p a l a m o u n t t h e r e o f , p l u s a c c r u e d i n t e r e s t , i f a n y , t o
t h e d a t e o f r e d e m p t i o n .
( b ) I f , o n t h e F i x e d R a t e C o n v e r s i o n D a t e , t h e r e m a i n i n g t e r m o f t h e
2 0 0 8 B o n d s i s l e s s t h a n e i g h t y e a r s , t h e n t h e 2 0 0 8 B o n d s w i l l n o t b e s u b j e c t t o o p t i o n a l
r e d e m p t i o n f o l l o w i n g C o n v e r s i o n .
( b ) S e l e c t i o n o f B o n d s f o r O p t i o n a l R e d e m p t i o n .
( 1 ) 2 0 0 8 B o n d s . T h e C o m m i s s i o n s h a l l d e s i g n a t e w h i c h m a t u r i t i e s o f 2 0 0 8
B o n d s a r e t o b e c a l l e d f o r o p t i o n a l r e d e m p t i o n p u r s u a n t t o S e c t i o n 1 5 . 0 1 ( a ) , p r o v i d e d t h a t 2 0 0 8
L i q u i d i t y F a c i l i t y B o n d s s h a l l b e r e d e e m e d p r i o r t o a n y o t h e r 2 0 0 8 B o n d s . I f l e s s t h a n a l l 2 0 0 8
B o n d s m a t u r i n g b y t h e i r t e r m s o n a n y o n e d a t e a r e t o b e r e d e e m e d a t a n y o n e t i m e , t h e T r u s t e e
s h a l l s e l e c t t h e 2 0 0 8 B o n d s o f s u c h m a t u r i t y d a t e t o b e r e d e e m e d i n a n y m a n n e r t h a t i t d e e m s
O H S W e s t : 2 6 0 3 7 9 5 6 5 . 9
2 1
2 4 3
appropriate and fair and shall promptly notify the Commission in writing of the numbers of the
2008 Bonds so selected for redemption. For purposes of such selection, 2008 Bonds shall be
deemed to be composed of multiples of minimum Authorized Denominations and any such
multiple may be separately redeemed. In the event Term Bonds are designated for redemption,
the Commission may designate the Mandatory Sinking Account Payments under
Section 15.02(a), or portions thereof, that are to be reduced as allocated to such redemption.
(c) Sufficient Funds Required for Optional Redemption. Any optional
redemption of 2008 Bonds and notice thereof may be conditional and rescinded and
cancelled pursuant to the provisions of Section 4.02 if for any reason on the date fixed for
redemption moneys are not available in the Redemption Fund or otherwise held in trust for
such purpose in an amount sufficient to pay in full on said date the principal of, interest, and
any premium due on the 2008 Bonds called for redemption.
(d) Notice of Optional Redemption; Rescission. Any notice of optional
redemption of the 2008 Bonds shall be delivered in accordance with Section 4.02 and may
rescinded as provided in Section 4.02.
Section 15.02. Mandatory Redemption of 2008 Bonds From Mandatory Sinking
Account Payments.
(a) Mandatory Redemption of 2008 Bonds. Except as otherwise provided in
Section 14.05(a)(v)(B), 2008 Bonds are Term Bonds and are subject to mandatory redemption
from Mandatory Sinking Account Payments for such 2008 Bonds, on each date a Mandatory
Sinking Account Payment for such 2008 Bonds is due, and in the principal amount equal to the
Mandatory Sinking Account Payment due on such date at a Redemption Price equal to the
principal amount thereof, plus accrued interest to the redemption date, without premium.
Mandatory Sinking Account Payments for the 2008 Bonds that are Term Bonds
shall be due in such amounts and on such dates as follows:
Redemption Date
(June 1)
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
t Final Maturity
OHS West:260379565.9
2008
Mandatory
Sinking
Account
Payment
22
Bonds
Redemption
Date
(June 1)
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
Mandatory
Sinking
Account
Payment
•
•
244
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( b ) S e l e c t i o n o f B o n d s f o r M a n d a t o r y S i n k i n g A c c o u n t R e d e m p t i o n . I f l e s s t h a n
a l l 2 0 0 8 B o n d s m a t u r i n g b y t h e i r t e r m s o n a n y o n e d a t e a r e t o b e r e d e e m e d a t a n y o n e t i m e w i t h
M a n d a t o r y S i n k i n g A c c o u n t P a y m e n t s , t h e T r u s t e e s h a l l s e l e c t t h e 2 0 0 8 B o n d s o f s u c h m a t u r i t y
d a t e t o b e r e d e e m e d b y l o t i n a n y m a n n e r t h a t i t d e e m s a p p r o p r i a t e , p r o v i d e d t h a t 2 0 0 8 L i q u i d i t y
F a c i l i t y B o n d s s h a l l b e r e d e e m e d p r i o r t o a n y o t h e r 2 0 0 8 B o n d s , a n d t h e T r u s t e e s h a l l p r o m p t l y
n o t i f y t h e C o m m i s s i o n i n w r i t i n g o f t h e n u m b e r s o f t h e 2 0 0 8 B o n d s s o s e l e c t e d f o r r e d e m p t i o n .
F o r p u r p o s e s o f s u c h s e l e c t i o n , 2 0 0 8 B o n d s s h a l l b e d e e m e d t o b e c o m p o s e d o f m u l t i p l e s o f
m i n i m u m A u t h o r i z e d D e n o m i n a t i o n s a n d a n y s u c h m u l t i p l e m a y b e s e p a r a t e l y r e d e e m e d .
S e c t i o n 1 5 . 0 3 . P u r c h a s e I n L i e u o f R e d e m p t i o n . T h e C o m m i s s i o n r e s e r v e s t h e r i g h t a t
a l l t i m e s t o p u r c h a s e a n y o f i t s 2 0 0 8 B o n d s o n t h e o p e n m a r k e t . I n l i e u o f m a n d a t o r y
r e d e m p t i o n , t h e C o m m i s s i o n m a y s u r r e n d e r t o t h e T r u s t e e f o r c a n c e l l a t i o n 2 0 0 8 B o n d s
p u r c h a s e d o n t h e o p e n m a r k e t , a n d s u c h 2 0 0 8 B o n d s s h a l l b e c a n c e l l e d b y t h e T r u s t e e . I f a n y
2 0 0 8 B o n d s a r e s o c a n c e l l e d , t h e C o m m i s s i o n m a y d e s i g n a t e t h e M a n d a t o r y S i n k i n g A c c o u n t
P a y m e n t s o r p o r t i o n s t h e r e o f w i t h i n t h e 2 0 0 8 B o n d s s o p u r c h a s e d t h a t a r e t o b e r e d u c e d a s a
r e s u l t o f s u c h c a n c e l l a t i o n .
S e c t i o n 1 5 . 0 4 . H o l d e r ' s O p t i o n t o T e n d e r 2 0 0 8 B o n d s f o r P u r c h a s e .
( a ) D u r i n g a n y D a i l y R a t e P e r i o d , a n y 2 0 0 8 B o n d o r ( s u b j e c t t o s u b s e c t i o n ( c ) o f
t h i s S e c t i o n ) a p o r t i o n t h e r e o f , m a y b e t e n d e r e d f o r p u r c h a s e o n a n y B u s i n e s s D a y a t t h e
a p p l i c a b l e P u r c h a s e P r i c e , p a y a b l e i n i m m e d i a t e l y a v a i l a b l e f u n d s , u p o n ( A ) d e l i v e r y b y t h e
H o l d e r o r B e n e f i c i a l O w n e r o f s u c h 2 0 0 8 B o n d t o t h e R e m a r k e t i n g A g e n t a n d t o t h e T r u s t e e
a t i t s P r i n c i p a l O f f i c e o f a n i r r e v o c a b l e w r i t t e n n o t i c e o r n o t i c e b y E l e c t r o n i c M e a n s b y 1 1 : 0 0
a . m . ( N e w Y o r k C i t y t i m e ) o n t h e P u r c h a s e D a t e , w h i c h s t a t e s t h e p r i n c i p a l a m o u n t o f s u c h
2 0 0 8 B o n d t o b e t e n d e r e d f o r p u r c h a s e a n d t h e P u r c h a s e D a t e , a n d ( B ) d e l i v e r y o f s u c h 2 0 0 8
B o n d t o t h e T r u s t e e o n t h e P u r c h a s e D a t e i n a c c o r d a n c e w i t h S e c t i o n 1 5 . 0 6 . T h e T r u s t e e
s h a l l k e e p a w r i t t e n r e c o r d o f t h e n o t i c e d e s c r i b e d i n c l a u s e ( A ) o f t h i s s u b s e c t i o n ( a ) .
( b ) E x c e p t a s o t h e r w i s e p r o v i d e d i n S e c t i o n 1 4 . 0 5 ( a ) ( i v ) ( F ) , d u r i n g a n y W e e k l y
R a t e P e r i o d , a n y 2 0 0 8 B o n d o r ( s u b j e c t t o s u b s e c t i o n ( c ) o f t h i s S e c t i o n ) a p o r t i o n t h e r e o f ,
m a y b e t e n d e r e d f o r p u r c h a s e o n a n y B u s i n e s s D a y a t t h e a p p l i c a b l e P u r c h a s e P r i c e , p a y a b l e
i n a c c o r d a n c e w i t h S e c t i o n 1 5 . 1 1 i n i m m e d i a t e l y a v a i l a b l e f u n d s , u p o n ( A ) d e l i v e r y b y t h e
H o l d e r o r B e n e f i c i a l O w n e r o f s u c h 2 0 0 8 B o n d t o t h e R e m a r k e t i n g A g e n t a n d t o t h e T r u s t e e
a t i t s P r i n c i p a l O f f i c e o f a n i r r e v o c a b l e w r i t t e n n o t i c e o r n o t i c e b y E l e c t r o n i c M e a n s b y
5 : 0 0 p . m . ( N e w Y o r k C i t y t i m e ) o n a n y B u s i n e s s D a y a t l e a s t s e v e n ( 7 ) d a y s p r i o r t o t h e
P u r c h a s e D a t e , w h i c h s t a t e s t h e p r i n c i p a l a m o u n t o f s u c h 2 0 0 8 B o n d t o b e t e n d e r e d f o r
p u r c h a s e a n d t h e P u r c h a s e D a t e , a n d ( B ) d e l i v e r y o f s u c h 2 0 0 8 B o n d t o t h e T r u s t e e o n t h e
P u r c h a s e D a t e i n a c c o r d a n c e w i t h S e c t i o n 1 5 . 0 6 . T h e T r u s t e e s h a l l k e e p a w r i t t e n r e c o r d o f
t h e n o t i c e d e s c r i b e d i n c l a u s e ( A ) o f t h i s s u b s e c t i o n ( b ) .
( c ) I f a n y 2 0 0 8 B o n d i s t o b e p u r c h a s e d i n p a r t p u r s u a n t t o s u b s e c t i o n ( a ) o r
s u b s e c t i o n ( b ) o f t h i s S e c t i o n , t h e a m o u n t s o p u r c h a s e d a n d t h e a m o u n t n o t s o p u r c h a s e d
m u s t e a c h b e a n A u t h o r i z e d D e n o m i n a t i o n .
( d ) A n y i n s t r u m e n t d e l i v e r e d t o t h e T r u s t e e i n a c c o r d a n c e w i t h t h i s S e c t i o n s h a l l
b e i r r e v o c a b l e w i t h r e s p e c t t o t h e p u r c h a s e f o r w h i c h s u c h i n s t r u m e n t w a s d e l i v e r e d a n d s h a l l
O H S W e s t : 2 6 0 3 7 9 5 6 5 . 9
2 3
2 4 5
be binding upon the Securities Depository and any subsequent Holder or Beneficial Owner of
the 2008 Bond to which it relates, including any 2008 Bond issued in exchange therefor or
upon the registration of transfer thereof, and as of the date of such instrument, the Holder or
Beneficial Owner of the 2008 Bonds specified therein shall not have any right to optionally
tender for purchase such 2008 Bonds prior to the date of purchase specified in such notice.
The Commission, the Remarketing Agent and the Trustee may conclusively assume that any
person (other than a Holder) providing notice of optional tender pursuant to subsection (a) or
subsection (b) of this Section is the Beneficial Owner of the 2008 Bond to which such notice
relates, and none of the Commission, the Remarketing Agent or the Trustee shall assume any
liability in accepting such notice from any person whom it reasonably believes to be a
Beneficial Owner of 2008 Bonds.
Section 15.05. Mandatory Tender of 2008 Bonds for Purchase.
(a) The 2008 Bonds shall be subject to mandatory tender for purchase at the
applicable Purchase Price, at the following times and upon the occurrence of any of the
events stated below:
(1) on the Conversion Date for such 2008 Bonds to a new Interest Rate
Determination Method specified in a Conversion Notice (whether or not the proposed
Conversion becomes effective on such date, unless converting from a Long -Term Rate Period for
which there is no Liquidity Facility and the proposed Conversion does not occur, in which case
the mandatory tender will be cancelled);
(2) with respect to 2008 Bonds bearing interest at a Daily Rate, a Weekly Rate
or a Commercial Paper Rate: (A) on the fifth (5th) Business Day preceding (i) the scheduled
Expiration of a 2008 Liquidity Facility or (ii) the Termination of a 2008 Liquidity Facility, at the
election of the Commission as permitted by such 2008 Liquidity Facility; and (B) on the date of
the provision of an Alternate Liquidity Facility for such 2008 Bonds pursuant to Section 15.14
and the resultant Termination of the existing 2008 Liquidity Facility; provided, however, that,
notwithstanding any other provision of this Indenture to the contrary, no mandatory tender for
purchase shall be required pursuant to this subsection if a Rating Confirmation shall be delivered
by each Rating Agency then rating the 2008 Bonds on the date of the provision of the Alternate
Liquidity Facility pursuant to Section 15.14 and the resultant Termination of the existing 2008
Liquidity Facility;
(3) with respect to each 2008 Bond bearing interest at a Commercial Paper
Rate, on each Interest Payment Date immediately following each Commercial Paper Rate Period
for such 2008 Bond;
(4) with respect to each 2008 Bond bearing interest at a Long -Tenn Rate, on
the Interest Payment Date immediately following each Long -Term Rate Period for such 2008
Bond;
(5) with respect to each 2008 Bond bearing interest at a Weekly Rate or a
Daily Rate, on any Business Day; and
OHS West:260379565.9
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"
( 6 ) w i t h r e s p e c t t o 2 0 0 8 B o n d s b e a r i n g i n t e r e s t a t a D a i l y R a t e , a W e e k l y R a t e
o r a C o m m e r c i a l P a p e r R a t e , u p o n r e c e i p t b y t h e T r u s t e e o f w r i t t e n n o t i c e f r o m t h e 2 . 0 0 8
L i q u i d i t y P r o v i d e r f o r s u c h 2 0 0 8 B o n d s t h a t a n e v e n t o f d e f a u l t o r a n e v e n t o f t e r m i n a t i o n ( o t h e r
t h a n a n i m m e d i a t e t e r m i n a t i o n o r s u s p e n s i o n ) h a s o c c u r r e d u n d e r t h e 2 0 0 8 L i q u i d i t y F a c i l i t y
w i t h t h e e f f e c t t h a t t h e o b l i g a t i o n s o f s u c h 2 0 0 8 L i q u i d i t y P r o v i d e r t o p u r c h a s e s u c h 2 0 0 8 B o n d s
o r o t h e r w i s e p r o v i d e f o r t h e P u r c h a s e P r i c e o f s u c h 2 0 0 8 B o n d s u n d e r s u c h 2 0 0 8 L i q u i d i t y .
F a c i l i t y s h a l l t e r m i n a t e o n t h e d a t e s p e c i f i e d i n s u c h n o t i c e , i n w h i c h e v e n t s u c h 2 0 0 8 B o n d s
s h a l l b e s u b j e c t t o p u r c h a s e o n a B u s i n e s s D a y s e l e c t e d b y t h e T r u s t e e w h i c h d a t e s h a l l b e n o t
m o r e t h a n f i v e ( 5 ) B u s i n e s s D a y s a f t e r r e c e i p t o f s u c h n o t i c e , b u t i n n o e v e n t l a t e r t h a n t h e
B u s i n e s s D a y p r e c e d i n g t h e t e r m i n a t i o n d a t e s p e c i f i e d i n t h e n o t i c e r e c e i v e d f r o m s u c h 2 0 0 8
L i q u i d i t y P r o v i d e r ;
( b ) N o t i c e o f m a n d a t o r y t e n d e r f o r p u r c h a s e o n t h e C o n v e r s i o n D a t e s h a l l b e
g i v e n b y t h e T r u s t e e t o t h e H o l d e r s a s p r o v i d e d i n S e c t i o n 1 4 . 0 5 ( b ) ( i v ) .
( c ) T h e T r u s t e e s h a l l g i v e n o t i c e b y f i r s t c l a s s m a i l t o t h e H o l d e r s o f 2 0 0 8 B o n d s
o f e a c h T e r m i n a t i o n o f a 2 0 0 8 L i q u i d i t y F a c i l i t y a n d e a c h E x p i r a t i o n o f a 2 0 0 8 L i q u i d i t y
F a c i l i t y m a k i n g 2 0 0 8 B o n d s s u b j e c t t o m a n d a t o r y t e n d e r p u r s u a n t t o S e c t i o n 1 5 . 0 5 ( a ) ( 2 ) ,
w h i c h n o t i c e s h a l l ( i ) s t a t e t h e d a t e o f s u c h T e r m i n a t i o n , s u b s t i t u t i o n o r E x p i r a t i o n ; ( i i ) s t a t e
t h a t u n l e s s a R a t i n g C o n f i r m a t i o n i s r e c e i v e d w i t h r e s p e c t t o t h e s u b s t i t u t i o n ( i n w h i c h e v e n t
n o m a n d a t o r y t e n d e r f o r p u r c h a s e s h a l l o c c u r ) , s u c h 2 0 0 8 B o n d s s h a l l b e s u b j e c t t o
m a n d a t o r y t e n d e r f o r p u r c h a s e o n t h e s p e c i f i e d P u r c h a s e D a t e a t t h e a p p l i c a b l e P u r c h a s e
P r i c e ( w h i c h s h a l l b e s p e c i f i e d i n s u c h n o t i c e ) ; a n d ( i i i ) b e m a i l e d b y t h e T r u s t e e n o t l a t e r
t h a n t h e f i f t e e n t h ( 1 5 t h ) d a y p r i o r t o s u c h T e r m i n a t i o n , s u b s t i t u t i o n o r e x p i r a t i o n .
( d ) N o n o t i c e n e e d b e g i v e n t o t h e H o l d e r s o f a n y 2 0 0 8 B o n d b e a r i n g i n t e r e s t a t a
C o m m e r c i a l P a p e r R a t e o f t h e m a n d a t o r y t e n d e r f o r p u r c h a s e o f s u c h 2 0 0 8 B o n d o n a n
I n t e r e s t P a y m e n t D a t e f o r s u c h 2 0 0 8 B o n d .
( e ) U p o n t h e e x p i r a t i o n o f t h e t h e n c u r r e n t L o n g - T e r m R a t e P e r i o d f o r t h e 2 0 0 8
B o n d s , t h e T r u s t e e s h a l l g i v e n o t i c e b y f i r s t c l a s s m a i l t o t h e H o l d e r o f s u c h 2 0 0 8 B o n d s a t
t h e a d d r e s s s h o w n o n t h e b o n d r e g i s t r a t i o n b o o k s m a i n t a i n e d b y t h e T r u s t e e n o t l a t e r t h a n t h e
f i f t e e n t h ( 1 5 t h ) d a y p r i o r t o t h e d a t e o n w h i c h s u c h 2 0 0 8 B o n d s a r e s u b j e c t t o m a n d a t o r y
t e n d e r f o r p u r c h a s e p u r s u a n t t o S e c t i o n 1 5 . 0 5 ( a ) ( 4 ) , w h i c h n o t i c e s h a l l s t a t e t h a t s u c h 2 0 0 8
B o n d s a r e s u b j e c t t o m a n d a t o r y t e n d e r o n t h e s p e c i f i e d P u r c h a s e D a t e a t t h e a p p l i c a b l e
P u r c h a s e P r i c e ( w h i c h s h a l l b e s p e c i f i e d i n s u c h n o t i c e ) .
( f ) T h e T r u s t e e s h a l l g i v e n o t i c e b y f i r s t c l a s s m a i l w i t h i n t w o ( 2 ) B u s i n e s s D a y s
o f r e c e i p t o f a n o t i c e f r o m a 2 0 0 8 L i q u i d i t y P r o v i d e r p u r s u a n t t o S e c t i o n 1 5 . 0 5 ( a ) ( 5 ) , t o t h e
H o l d e r s o f t h e 2 0 0 8 B o n d s a t t h e i r a d d r e s s e s s h o w n o n t h e b o n d r e g i s t r a t i o n b o o k s
m a i n t a i n e d b y t h e T r u s t e e w h i c h n o t i c e s h a l l : ( 1 ) s t a t e s u c h 2 0 0 8 B o n d s a r e s u b j e c t t o
m a n d a t o r y t e n d e r f o r p u r c h a s e p u r s u a n t t o S e c t i o n 1 5 . 0 5 ( a ) ( 5 ) a t t h e a p p l i c a b l e P u r c h a s e
P r i c e ( w h i c h s h a l l b e s p e c i f i e d i n s u c h n o t i c e ) ; a n d ( 2 ) s t a t e t h e P u r c h a s e D a t e .
S e c t i o n 1 5 . 0 6 . D e l i v e r y o f T e n d e r e d 2 0 0 8 B o n d s . W i t h r e s p e c t t o a n y 2 0 0 8 B o n d t h a t
i s r e g i s t e r e d i n b o o k - e n t r y f o r m w i t h a S e c u r i t i e s D e p o s i t o r y , d e l i v e r y o f s u c h 2 0 0 8 B o n d t o t h e
T r u s t e e i n c o n n e c t i o n w i t h a n y o p t i o n a l o r m a n d a t o r y t e n d e r f o r p u r c h a s e p u r s u a n t t o
O H S W e s t : 2 6 0 3 7 9 5 6 5 . 9
2 5
2 4 7
Section 15.04 or 15.05 shall be effected by the making of, or the irrevocable authorization to
make, appropriate entries on the books of the Securities Depository for such 2008 Bond or any
Participant of such Securities Depository to reflect the transfer of the beneficial ownership
interest in such 2008 Bond to the account of the Trustee, or to the account of a Participant of
such Securities Depository acting on behalf of the Trustee. With respect to any 2008 Bond that
is not registered in book -entry form with a Securities Depository, delivery of such 2008 Bond to
the Trustee in connection with any optional or mandatory tender for purchase pursuant to
Section 15.04 or 15.05 shall be effected by physical delivery of such 2008 Bond to the Trustee at
its Principal Office, by 1:00 p.m. (New York City time) on the Purchase Date, accompanied by
an instrument of transfer thereof, in a form satisfactory to the Trustee, executed in blank by the
Holder thereof with the signature of such Holder guaranteed in accordance with the guidelines
set forth by one of the nationally recognized medallion signature programs.
Section 15.07. 2008 Bonds Deemed Purchased.
(a) If moneys sufficient to pay the Purchase Price of 2008 Bonds to be purchased
pursuant to Section 15,04 or 15.05 shall be held by the Trustee on the applicable Purchase
Date, such 2008 Bonds shall be deemed to have been purchased for all purposes of the
Indenture, irrespective of whether or not such 2008 Bonds shall have been delivered to the
Trustee or transferred on the books of a Securities Depository for such 2008 Bonds, and
neither the former Holder or Beneficial Owner of such 2008 Bonds nor any other person
shall have any claim thereon, under the Indenture or otherwise, for any amount other than the
Purchase Price thereof.
(b) In the event of non -delivery of any 2008 Bond to be purchased pursuant to
Section 15.04 or 15.05, the Trustee shall segregate and hold uninvested the moneys for the
Purchase Price of such 2008 Bond in trust, without liability for interest thereon, for the
benefit of the former Holders or Beneficial Owners of such 2008 Bond, who shall, except as
provided in the following sentence, thereafter be restricted exclusively to such moneys for
the satisfaction of any claim for the Purchase Price of such 2008 Bond. Any moneys that the
Trustee shall segregate and hold in trust for the payment of the Purchase Price of any 2008
Bond and remaining unclaimed for two (2) years after the date of purchase shall be paid
automatically to the Commission. After the payment of such unclaimed moneys to the
Commission, the former Holder or Beneficial Owner of such 2008 Bond shall look only to
the Commission for the payment thereof.
Section 15.08. Deposit of 2008 Bonds. The Trustee agrees to accept and hold all 2008
Bonds delivered to it pursuant to Section 15.04 or 15.05 in trust for the benefit of the respective
Holders or Beneficial Owners which shall have so delivered such 2008 Bonds until the Purchase
Price of such 2008 Bonds shall have been delivered to or for the account of or to the order of
such Holders or Beneficial Owners pursuant to Section 15.11. Any 2008 Bonds registered for
transfer to new purchasers and delivered to the Trustee as described in Section 15.12 shall be
held in trust by the Trustee for the benefit of such new purchasers until delivery to such new
purchasers.
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"
S e c t i o n 1 5 . 0 9 . R e m a r k e t i n g o f T e n d e r e d 2 0 0 8 B o n d s .
( a ) D a i l y P u t o r C o m m e r c i a l P a p e r T e n d e r B o n d s .
( i ) N o t l a t e r t h a n 1 1 : 1 5 a . m . ( N e w Y o r k C i t y t i m e ) o n e a c h B u s i n e s s D a y o n
w h i c h t h e T r u s t e e r e c e i v e s a n o t i c e f r o m a H o l d e r o r B e n e f i c i a l O w n e r o f a 2 0 0 8 B o n d t o b e
t e n d e r e d p u r s u a n t t o S e c t i o n 1 5 . 0 4 ( a ) ( t h e " D a i l y P u t B o n d s " ) , a n d o n e a c h d a y a n y 2 0 0 8 B o n d s
b e a r i n g i n t e r e s t a t a C o m m e r c i a l P a p e r R a t e a r e s u b j e c t t o m a n d a t o r y t e n d e r p u r s u a n t t o
S e c t i o n 1 5 . 0 5 ( a ) ( 3 ) ( t h e " C o m m e r c i a l P a p e r T e n d e r B o n d s " ) , t h e T r u s t e e s h a l l g i v e n o t i c e b y
E l e c t r o n i c M e a n s t o t h e R e m a r k e t i n g A g e n t a n d t h e C o m m i s s i o n , s p e c i f y i n g t h e p r i n c i p a l
a m o u n t o f 2 0 0 8 B o n d s f o r w h i c h i t h a s r e c e i v e d s u c h n o t i c e a n d t h e n a m e s o f t h e H o l d e r o r
H o l d e r s t h e r e o f . T h e R e m a r k e t i n g A g e n t s h a l l t h e r e u p o n o f f e r f o r s a l e a n d u s e i t s b e s t e f f o r t s t o
f i n d p u r c h a s e r s f o r s u c h D a i l y P u t B o n d s o r C o m m e r c i a l P a p e r T e n d e r B o n d s , o t h e r t h a n 2 0 0 8
L i q u i d i t y F a c i l i t y B o n d s , w h i c h s h a l l b e r e m a r k e t e d p u r s u a n t t o S e c t i o n 1 5 . 1 3 .
( i i ) N o t l a t e r t h a n 1 1 : 3 0 a . m . ( N e w Y o r k C i t y t i m e ) o n t h e P u r c h a s e D a t e
d e s c r i b e d i n s u b p a r a g r a p h ( i ) a b o v e , t h e T r u s t e e s h a l l g i v e n o t i c e b y E l e c t r o n i c M e a n s t o t h e
R e m a r k e t i n g A g e n t a n d t h e C o m m i s s i o n o f t h e a c c r u e d a m o u n t o f i n t e r e s t p a y a b l e w i t h r e s p e c t
t o t h e D a i l y P u t B o n d s o r C o m m e r c i a l P a p e r T e n d e r B o n d s , a s a p p l i c a b l e , a s o f s u c h P u r c h a s e
D a t e a n d c o n f i r m i n g t h e a g g r e g a t e p r i n c i p a l a m o u n t o f t h e D a i l y P u t B o n d s o r C o m m e r c i a l
P a p e r T e n d e r B o n d s .
( i i i ) N o t l a t e r t h a n 1 2 : 0 0 n o o n ( N e w Y o r k C i t y t i m e ) o n a n y P u r c h a s e D a t e f o r
D a i l y P u t B o n d s o r C o m m e r c i a l P a p e r T e n d e r B o n d s , t h e R e m a r k e t i n g A g e n t s h a l l g i v e n o t i c e
b y E l e c t r o n i c M e a n s t o t h e C o m m i s s i o n a n d t h e T r u s t e e o f t h e p r i n c i p a l a m o u n t o f a n y D a i l y P u t
B o n d s o r C o m m e r c i a l P a p e r T e n d e r B o n d s , a s a p p l i c a b l e , w h i c h h a v e n o t b e e n r e m a r k e t e d i n
a c c o r d a n c e w i t h t h e a p p l i c a b l e R e m a r k e t i n g A g r e e m e n t a n d i t s c o m m i t m e n t t o d e l i v e r f u n d s
f r o m t h e D a i l y P u t B o n d s o r C o m m e r c i a l P a p e r T e n d e r B o n d s t h a t h a v e b e e n r e m a r k e t e d t o t h e
T r u s t e e b y 2 : 0 0 p . m . ( N e w Y o r k C i t y t i m e ) o n s u c h d a y p u r s u a n t t o S e c t i o n 1 5 . 1 0 .
( i v ) I f a R e m a r k e t i n g A g e n t ' s n o t i c e p u r s u a n t t o s u b p a r a g r a p h ( i i i ) a b o v e
i n d i c a t e s t h a t s u c h R e m a r k e t i n g A g e n t h a s o n h a n d l e s s r e m a r k e t i n g p r o c e e d s t h a n a r e n e e d e d t o
p u r c h a s e a l l t h e D a i l y P u t B o n d s o r C o m m e r c i a l P a p e r T e n d e r B o n d s t o b e p u r c h a s e d o n a n y
P u r c h a s e D a t e , t h e T r u s t e e s h a l l d e m a n d p a y m e n t u n d e r t h e a p p l i c a b l e 2 0 0 8 L i q u i d i t y F a c i l i t y
t h e n i n e f f e c t w i t h r e s p e c t t o t h e t e n d e r e d 2 0 0 8 B o n d s i n s u f f i c i e n t t i m e ( a s s e t f o r t h b y t h e t e r m s
o f t h e 2 0 0 8 L i q u i d i t y F a c i l i t y ) s o a s t o p r o v i d e b y 2 : 3 0 p . m . ( N e w Y o r k C i t y t i m e ) o n s u c h
P u r c h a s e D a t e a n a m o u n t s u f f i c i e n t , t o g e t h e r w i t h t h e r e m a r k e t i n g p r o c e e d s t o b e a v a i l a b l e f o r
s u c h p u r c h a s e , c a l c u l a t e d s o l e l y o n t h e b a s i s o f t h e n o t i c e g i v e n b y t h e R e m a r k e t i n g A g e n t
p u r s u a n t t o s u b p a r a g r a p h ( i i i ) a b o v e , t o p a y t h e P u r c h a s e P r i c e o f t h e D a i l y P u t B o n d s o r
C o m m e r c i a l P a p e r T e n d e r B o n d s , a s a p p l i c a b l e . T h e T r u s t e e s h a l l i m m e d i a t e l y a f t e r s u c h
d e m a n d f o r p a y m e n t g i v e n o t i c e b y E l e c t r o n i c M e a n s t o t h e C o m m i s s i o n o f t h e a m o u n t , i f a n y ,
o f s u c h d e m a n d .
( b ) W e e k l y P u t B o n d s .
( i ) N o t l a t e r t h a n 1 0 : 3 0 a . m . ( N e w Y o r k C i t y t i m e ) o n e a c h B u s i n e s s D a y
s u c c e e d i n g a d a y o n w h i c h t h e T r u s t e e r e c e i v e s a n o t i c e f r o m a H o l d e r o r B e n e f i c i a l O w n e r o f
0 1 1 S W e s t : 2 6 0 3 7 9 5 6 5 . 9
2 7
2 4 9
2008 Bonds to be tendered pursuant to Section 15.04(b) (the "Weekly Put Bonds"), the Trustee
shall give notice by Electronic Means to the Remarketing Agent and the Commission, specifying
the principal amount of 2008 Bonds for which it has received such notice, the names of the
Holder or Holders thereof and the Purchase Date. The Remarketing Agent shall thereupon offer
for sale and use its best efforts to fmd purchasers for such Weekly Put Bonds, other than 2008
Liquidity Facility Bonds, which shall be remarketed pursuant to Section 15.13.
(ii) Not later than 11:00 a.m. (New York City time) on the Business Day
immediately preceding the Purchase Date described in subparagraph (i) above, the Trustee shall
give notice by Electronic Means to the Remarketing Agent and the Commission of the accrued
amount of interest payable with respect to the Weekly Put Bonds as of such Purchase Date and
confirming the aggregate principal amount of the Weekly Put Bonds.
(iii) Not later than 11:30 a.m. (New York City time) on any Purchase Date for
Weekly Put Bonds, the Remarketing Agent shall give notice by Electronic Means to the
Commission and the Trustee of the principal amount of Weekly Put Bonds that have not been
remarketed in accordance with the applicable Remarketing Agreement and its commitment to
deliver funds from the Weekly Put Bonds that have been remarketed to the Trustee by 2:00 p.m.
(New York City time) on the Purchase Date pursuant to Section 15.10.
(iv) If a Remarketing Agent's notice pursuant to subparagraph (iii) above
indicates that such Remarketing Agent has on hand less remarketing proceeds than are needed to
purchase all the Weekly Put Bonds to be purchased on any Purchase Date, the Trustee shall
demand payment under the applicable 2008 Liquidity Facility then in effect with respect to the
Weekly Put Bonds in sufficient time (as set forth by the terms of the 2008 Liquidity Facility) so
as to provide by 2:30 p.m. (New York City time) on such Purchase Date an amount sufficient,
together with the remarketing proceeds to be available for such purchase, calculated solely on the
basis of the notice given by the Remarketing Agent pursuant to subparagraph (iii) above, to pay
the Purchase Price of the Weekly Put Bonds. The Trustee shall immediately after such demand
for payment give notice by Electronic Means to the Commission of the amount, if any, of such
demand.
(c) Mandatory Tender Bonds.
(i) Not later than 9:30 a.m. (New York City time) on each Purchase Date
occurring pursuant to Section 15.05 with the exception of subsection 15.05(a)(3), the Trustee
shall give notice by EIectronic Means to the Remarketing Agent and the Commission specifying
the principal amount of all Outstanding 2008 Bonds that are subject to mandatory tender (the
"Mandatory Tender Bonds") on such Purchase Date pursuant to any subsection of Section 15.05
except subsection 15.05(a)(3) and the names of the registered Holder or Holders thereof. The
Remarketing Agent shall thereupon offer for sale and use its best efforts to find purchasers for
such Mandatory Tender Bonds (if there is still an obligation to remarket), other than 2008
Liquidity Facility Bonds, which shall be remarketed pursuant to Section 15.13.
(ii) Not later than 10:00 a.m. (New York City time) on each Purchase Date
described in subparagraph (i) above, the Trustee shall give notice by Electronic Means to the
Remarketing Agent and the Commission of the accrued amount of interest payable with respect
OHS West:260379565.9
28
•
250
"
t o t h e M a n d a t o r y T e n d e r B o n d s a s o f t h e P u r c h a s e D a t e a n d c o n f i r m i n g t h e a g g r e g a t e p r i n c i p a l
a m o u n t o f t h e M a n d a t o r y T e n d e r B o n d s .
( i i i ) N o t l a t e r t h a n 1 1 : 3 0 a . m . ( N e w Y o r k C i t y t i m e ) o n a n y P u r c h a s e D a t e
w i t h r e s p e c t t o M a n d a t o r y T e n d e r B o n d s , t h e R e m a r k e t i n g A g e n t s h a l l g i v e n o t i c e b y E l e c t r o n i c
M e a n s t o t h e T r u s t e e a n d t h e C o m m i s s i o n o f t h e p r i n c i p a l a m o u n t o f M a n d a t o r y T e n d e r B o n d s
t h a t h a v e n o t b e e n r e m a r k e t e d i n a c c o r d a n c e w i t h t h e R e m a r k e t i n g A g r e e m e n t a n d i t s w r i t t e n
c o m m i t m e n t t o d e l i v e r f u n d s f r o m t h e M a n d a t o r y T e n d e r B o n d s t h a t h a v e b e e n r e m a r k e t e d t o
t h e T r u s t e e b y 2 : 0 0 p . m . ( N e w Y o r k C i t y t i m e ) o n t h e P u r c h a s e D a t e p u r s u a n t t o S e c t i o n 1 5 . 1 0 .
( i v ) I f a R e m a r k e t i n g A g e n t ' s n o t i c e p u r s u a n t t o s u b p a r a g r a p h ( i i i ) a b o v e
i n d i c a t e s t h a t s u c h R e m a r k e t i n g A g e n t h a s o n h a n d l e s s r e m a r k e t i n g p r o c e e d s t h a n a r e n e e d e d t o
p u r c h a s e a l l t h e M a n d a t o r y T e n d e r B o n d s t o b e p u r c h a s e d o n s u c h P u r c h a s e D a t e , t h e T r u s t e e
s h a l l d e m a n d p a y m e n t u n d e r t h e a p p l i c a b l e 2 0 0 8 L i q u i d i t y F a c i l i t y t h e n i n e f f e c t w i t h r e s p e c t t o
t h e M a n d a t o r y T e n d e r B o n d s i n s u f f i c i e n t t i m e ( a s s e t f o r t h b y t h e t e r m s o f t h e 2 0 0 8 L i q u i d i t y
F a c i l i t y ) s o a s t o p r o v i d e b y 2 : 3 0 p . m . ( N e w Y o r k C i t y t i m e ) o n s u c h P u r c h a s e D a t e a n a m o u n t
s u f f i c i e n t , t o g e t h e r w i t h t h e r e m a r k e t i n g p r o c e e d s t o b e a v a i l a b l e f o r s u c h p u r c h a s e , c a l c u l a t e d
s o l e l y o n t h e b a s i s o f t h e n o t i c e g i v e n b y t h e R e m a r k e t i n g A g e n t p u r s u a n t t o s u b p a r a g r a p h ( i i i )
a b o v e , t o p a y t h e P u r c h a s e P r i c e o f t h e M a n d a t o r y T e n d e r B o n d s . T h e T r u s t e e s h a l l
i m m e d i a t e l y a f t e r s u c h d e m a n d f o r p a y m e n t g i v e n o t i c e t o t h e C o m m i s s i o n o f t h e a m o u n t , i f
a n y , o f s u c h d e m a n d .
( d ) O p t i o n a l C o m m i s s i o n D e p o s i t . I f a R e m a r k e t i n g A g e n t ' s n o t i c e p u r s u a n t t o
s u b p a r a g r a p h ( a ) ( i i i ) , ( b ) ( i i i ) o r ( c ) ( i i i ) a b o v e i n d i c a t e s t h a t s u c h R e m a r k e t i n g A g e n t h a s
r e m a r k e t e d l e s s t h a n a l l t h e D a i l y P u t B o n d s , C o m m e r c i a l P a p e r T e n d e r B o n d s , W e e k l y P u t
B o n d s , o r M a n d a t o r y T e n d e r B o n d s t o b e p u r c h a s e d o n a n y P u r c h a s e D a t e a n d t h e T r u s t e e
d o e s n o t r e c e i v e s u f f i c i e n t f u n d s f r o m , o r h a s r e c e i v e d n o t i c e f r o m a 2 0 0 8 L i q u i d i t y P r o v i d e r
t h a t i t w i l l n o t p r o v i d e s u f f i c i e n t f u n d s f r o m , d r a w s o n t h e a p p l i c a b l e 2 0 0 8 L i q u i d i t y F a c i l i t y
t o p a y t h e P u r c h a s e P r i c e o f a l l s u c h 2 0 0 8 B o n d s t h a t h a v e n o t b e e n r e m a r k e t e d b y 2 : 0 0 p . m .
( N e w Y o r k C i t y t i m e ) o n t h e P u r c h a s e D a t e , t h e T r u s t e e s h a l l i m m e d i a t e l y ( b u t i n n o e v e n t
l a t e r t h a n 2 : 3 0 p . m . ( N e w Y o r k C i t y t i m e ) ) g i v e n o t i c e b y E l e c t r o n i c M e a n s t o t h e
C o m m i s s i o n s p e c i f y i n g t h e p r i n c i p a l a m o u n t a n d t h e P u r c h a s e P r i c e o f s u c h 2 0 0 8 B o n d s f o r
w h i c h m o n e y s w i l l n o t b e a v a i l a b l e i n t h e 2 0 0 8 B o n d s P u r c h a s e F u n d a n d r e q u e s t i n g t h e
C o m m i s s i o n t o d e p o s i t w i t h t h e T r u s t e e a s s o o n a s p o s s i b l e o n s u c h P u r c h a s e D a t e ,
p r e f e r a b l y b y 3 : 0 0 p . m . ( N e w Y o r k C i t y t i m e ) , a n a m o u n t s u f f i c i e n t t o p a y t h a t p o r t i o n o f t h e
P u r c h a s e P r i c e f o r w h i c h m o n e y s w i l l n o t b e a v a i l a b l e i n t h e 2 0 0 8 B o n d s P u r c h a s e F u n d ,
s u c h n o t i c e t o b e c o n f i r m e d i m m e d i a t e l y b y E l e c t r o n i c M e a n s t o t h e C o m m i s s i o n . S u c h
d e p o s i t b y t h e C o m m i s s i o n s h a l l b e a t t h e s o l e o p t i o n o f t h e C o m m i s s i o n .
( e ) L i m i t a t i o n . I f a 2 0 0 8 L i q u i d i t y F a c i l i t y i s i n e f f e c t w i t h r e s p e c t t o t h e 2 0 0 8
B o n d s , t h e R e m a r k e t i n g A g e n t s h a l l n o t r e m a r k e t a n y t e n d e r e d 2 0 0 8 B o n d s t o t h e
C o m m i s s i o n o r a n y a f f i l i a t e o f t h e C o m m i s s i o n . E a c h R e m a r k e t i n g A g e n t s h a l l r e m a r k e t t h e
2 0 0 8 B o n d s , a s p r o v i d e d h e r e i n , a t n o t l e s s t h a n t h e P u r c h a s e P r i c e t h e r e o f , e x c e p t f o r 2 0 0 8
L i q u i d i t y F a c i l i t y B o n d s , w h i c h s h a l l b e r e m a r k e t e d p u r s u a n t t o S e c t i o n 1 5 . 1 3 .
S e c t i o n 1 5 . 1 0 . D e p o s i t s i n t o A c c o u n t s i n t h e 2 0 0 8 B o n d s P u r c h a s e F u n d .
O H S W e s t : 2 6 0 3 7 9 5 6 5 9
2 9
2 5 1
(a) The terms of any sale by a Remarketing Agent of any 2008 Bond tendered or
deemed tendered for purchase pursuant to Section 15.04 or 15.05 shall provide for the
payment of the Purchase Price for such tendered or deemed tendered 2008 Bond by such
Remarketing Agent to the Trustee for deposit in the 2008 Remarketing Account of the 2008
Bonds Purchase Fund in immediately available funds at or before 2:00 p.m. (New York City
time) on the Purchase Date. Each Remarketing Agent shall cause to be paid to the Trustee on
each Purchase Date for tendered or deemed tendered 2008 Bonds all amounts representing
proceeds of the remarketing of such 2008 Bonds, based upon the notice given by such
Remarketing Agent pursuant to Section 15.09(a)(iii), 15.09(b)(iii), 15.09(c)(iii), as the case
may be. All such amounts shall be deposited in the 2008 Remarketing Account.
(b) The Trustee shall deposit in the 2008 Liquidity Facility Purchase Account all
amounts received under a 2008 Liquidity Facility pursuant to Section 15.09(a)(iv),
15.09(b)(iv) or 15.09(c)(iv), as the case may be, and related to the 2008 Bonds.
(c) Upon receipt of any notice from the Trustee pursuant to Section 15.09(d) that
insufficient funds will be on deposit in the 2008 Bonds Purchase Fund to pay the full
Purchase Price of all 2008 Bonds to be purchased on the Purchase Date, the Commission
shall, at its sole option, deliver or cause to be delivered to the Trustee immediately available
funds in an amount equal to such deficiency prior to 3:00 p.m. (New York City time) on the
Purchase Date. All such funds shall be deposited in the 2008 Commission Account.
(d) All funds received from the Commission pursuant to Section 15.09(d) shall be
deposited in the 2008 Commission Account.
(e) The Trustee shall hold amounts in the 2008 Bonds Purchase Fund uninvested.
Section 15.11. Disbursements from the 2008 Bonds Purchase Fund.
(a) Application of Moneys. Moneys in the 2008 Bonds Purchase Fund (other
than the proceeds of any remarketing of 2008 Liquidity Facility Bonds, which shall be paid
to the 2008 Liquidity Provider on the remarketing date) shall be applied at or before
3:00 p.m. (New York City time) to the purchase of 2008 Bonds as provided herein by the
Trustee, on each Purchase Date, as follows:
First — Moneys constituting funds in the 2008 Remarketing Account shall be used
by the Trustee on any Purchase Date to purchase 2008 Bonds tendered or deemed tendered for
purchase pursuant to Section 15.04 or 15.05 at the Purchase Price thereof.
Second — In the event such moneys in the 2008 Remarketing Account on the
Purchase Date are insufficient to purchase all 2008 Bonds, moneys in the 2008 Liquidity Facility
Purchase Account on such Purchase Date shall be used by the Trustee at that time to purchase
such remaining 2008 Bonds at the Purchase Price thereof.
Thud - If the amount of money in the 2008 Remarketing Account and 2008
Liquidity Facility Purchase Account on the Purchase Date is insufficient to pay in full the
Purchase Price of all 2008 Bonds tendered or deemed tendered for purchase pursuant to
Section 15.04 or 15.05 on such Purchase Date, moneys in the 2008 Commission Account on
OHS West:260379565.9
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252
"
s u c h P u r c h a s e D a t e , i f a n y , s h a l l b e u s e d b y t h e T r u s t e e a t t h a t t i m e t o p u r c h a s e s u c h r e m a i n i n g
2 0 0 8 B o n d s a t t h e P u r c h a s e P r i c e t h e r e o f .
N o t w i t h s t a n d i n g a n y t h i n g t o t h e c o n t r a r y i n t h i s S e c t i o n , i f t h e 2 0 0 8 B o n d s t e n d e r e d o r
d e e m e d t e n d e r e d f o r p u r c h a s e p u r s u a n t t o S e c t i o n 1 5 . 0 4 o r 1 5 . 0 5 a r e r e g i s t e r e d i n b o o k - e n t r y
f o r m , p a y m e n t o f t h e P u r c h a s e P r i c e o f s u c h 2 0 0 8 B o n d s s h a l l b e m a d e i n a c c o r d a n c e w i t h t h e
r u l e s a n d p r o c e d u r e s o f t h e S e c u r i t i e s D e p o s i t o r y .
( b ) N o n d e l i v e r i e s . T h e T r u s t e e s h a l l , a s t o a n y 2 0 0 8 B o n d s t h a t a r e n o t r e g i s t e r e d
i n b o o k - e n t r y f o r m a n d t h a t h a v e n o t b e e n d e l i v e r e d t o i t a s r e q u i r e d b y S e c t i o n 1 5 . 0 6 , ( i )
n o t i f y t h e R e m a r k e t i n g A g e n t i n w r i t i n g o f s u c h n o n d e l i v e r y a n d ( i i ) p l a c e a s t o p t r a n s f e r
a g a i n s t a n a p p r o p r i a t e a m o u n t o f 2 0 0 8 B o n d s r e g i s t e r e d i n t h e n a m e o f t h e H o l d e r o f s u c h
2 0 0 8 B o n d s o n t h e b o n d r e g i s t r a t i o n b o o k s m a i n t a i n e d b y t h e T r u s t e e . T h e T r u s t e e s h a l l
p l a c e a n d m a i n t a i n s u c h s t o p t r a n s f e r c o m m e n c i n g w i t h t h e l o w e s t s e r i a l n u m b e r 2 0 0 8 B o n d
r e g i s t e r e d i n t h e n a m e o f s u c h H o l d e r u n t i l s t o p t r a n s f e r s h a v e b e e n p l a c e d a g a i n s t a n
a p p r o p r i a t e a m o u n t o f 2 0 0 8 B o n d s u n t i l t h e a p p r o p r i a t e 2 0 0 8 B o n d s a r e d e l i v e r e d t o t h e
T r u s t e e a s r e q u i r e d b y S e c t i o n 1 5 . 0 6 . U p o n s u c h d e l i v e r y , t h e T r u s t e e s h a l l m a k e a n y
n e c e s s a r y a d j u s t m e n t s t o s u c h b o n d r e g i s t r a t i o n b o o k s .
( c ) P r i o r C o m m i s s i o n P u r c h a s e . N o t w i t h s t a n d i n g a n y t h i n g c o n t a i n e d h e r e i n t o
t h e c o n t r a r y , w h i l e a n y 2 0 0 8 L i q u i d i t y F a c i l i t y i s i n e f f e c t w i t h r e s p e c t t o t h e 2 0 0 8 B o n d s ,
t h e T r u s t e e s h a l l , a t t h e r e q u e s t o f t h e C o m m i s s i o n , u s e f u n d s o n d e p o s i t i n t h e 2 0 0 8
C o m m i s s i o n A c c o u n t p r i o r t o f u n d s i n t h e 2 0 0 8 L i q u i d i t y F a c i l i t y P u r c h a s e A c c o u n t t o p a y
a n y p o r t i o n o f t h e P u r c h a s e P r i c e o f t h e t e n d e r e d 2 0 0 8 B o n d s . I n a d d i t i o n , 2 0 0 8 B o n d s
p u r c h a s e d w i t h f u n d s f r o m t h e 2 0 0 8 L i q u i d i t y F a c i l i t y P u r c h a s e A c c o u n t m a y b e p u r c h a s e d
f r o m t h e 2 0 0 8 L i q u i d i t y P r o v i d e r b y t h e C o m m i s s i o n .
( d ) I n s u f f i c i e n t F u n d s . I f s u f f i c i e n t f u n d s a r e n o t a v a i l a b l e f o r t h e p u r c h a s e o f a l l
2 0 0 8 B o n d s t e n d e r e d o r d e e m e d t e n d e r e d a n d r e q u i r e d t o b e p u r c h a s e d o n a n y P u r c h a s e
D a t e , a l l 2 0 0 8 B o n d s s h a l l ( e x c e p t i f t h e c o n d i t i o n s d e s c r i b e d i n S e c t i o n 1 4 . 0 5 ( a ) ( i v ) ( F )
a p p l y , i n w h i c h c a s e t h e 2 0 0 8 B o n d s s h a l l b e a r i n t e r e s t a t e l e v e n p e r c e n t ( 1 1 % ) p e r a n n u m a s
p r o v i d e d i n s u c h S e c t i o n ) b e a r i n t e r e s t a t t h e l e s s e r o f t h e S I F M A S w a p I n d e x p l u s t h r e e
p e r c e n t ( 3 % ) a n d t h e M a x i m u m I n t e r e s t R a t e f r o m t h e d a t e o f s u c h f a i l e d p u r c h a s e u n t i l a l l
s u c h 2 0 0 8 B o n d s a r e p u r c h a s e d a s r e q u i r e d i n a c c o r d a n c e w i t h t h i s I n d e n t u r e , a n d a l l
t e n d e r e d 2 0 0 8 B o n d s s h a l l b e r e t u r n e d t o t h e i r r e s p e c t i v e H o l d e r s . N o t w i t h s t a n d i n g a n y
o t h e r p r o v i s i o n o f t h i s I n d e n t u r e , s u c h f a i l e d p u r c h a s e a n d r e t u r n s h a l l n o t c o n s t i t u t e a n
E v e n t o f D e f a u l t . T h e r e a f t e r , t h e T r u s t e e s h a l l c o n t i n u e t o t a k e a l l s u c h a c t i o n a v a i l a b l e t o i t
t o o b t a i n r e m a r k e t i n g p r o c e e d s f r o m t h e R e m a r k e t i n g A g e n t a n d s u f f i c i e n t o t h e r f u n d s f r o m
t h e L i q u i d i t y P r o v i d e r , i f a n y , f o r s u c h 2 0 0 8 B o n d s .
S e c t i o n 1 5 . 1 2 . D e l i v e r y o f 2 0 0 8 B o n d s .
( a ) I f t h e 2 0 0 8 B o n d s a r e n o t r e g i s t e r e d i n b o o k - e n t r y f o r m , a p r i n c i p a l a m o u n t o f
2 0 0 8 B o n d s e q u a l t o t h e a m o u n t o f 2 0 0 8 B o n d s s u c c e s s f u l l y r e m a r k e t e d b y e a c h
R e m a r k e t i n g A g e n t s h a l l b e d e l i v e r e d t o t h e T r u s t e e f o r r e g i s t r a t i o n o r t r a n s f e r t o s u c h
p e r s o n s a s s h a l l b e d e s i g n a t e d b y t h e R e m a r k e t i n g A g e n t . S u c h 2 0 0 8 B o n d s s h a l l b e h e l d
a v a i l a b l e a t t h e o f f i c e o f t h e T r u s t e e a n d s h a l l b e p i c k e d u p a t a l o c a t i o n d e s i g n a t e d b y t h e
O H S W e s t : 2 6 0 3 7 9 5 6 5 . 9
3 1
2 5 3
Trustee to the applicable Remarketing Agent at or after 1:00 p.m. (New York City time) on
the Purchase Date against delivery of funds for deposit into the 2008 Remarketing Account
of the 2008 Bonds Purchase Fund equal to the Purchase Price of the 2008 Bonds that have
been remarketed. If the 2008 Bonds are registered in book -entry form, transfer of ownership
of the remarketed 2008 Bonds shall be effected in accordance with the procedures of the.
Securities Depository against delivery of funds for deposit into the 2008 Remarketing
Account of the 2008 Bonds Purchase Fund equal to the Purchase Price of the 2008 Bonds
that have been remarketed.
(b) Any 2008 Bonds purchased with funds in any 2008 Liquidity Facility
Purchase Account of the 2008 Bonds Purchase Fund shall be delivered and held in
accordance with Section 15.13. Any 2008 Bonds purchased with funds in any 2008
Commission Account of the 2008 Bonds Purchase Fund shall be delivered and held in
accordance with the instructions of the Commission furnished to the Trustee. Such 2008
Bonds shall be held available for registration of transfer and delivery by the Trustee in such
manner as may be agreed between the Trustee and the 2008 Liquidity Provider or the
Commission, as the case may be.
Section 15.13. 2008 Liquidity Facilities; Liquidity Facility Bonds.
(a) Unless all the Outstanding 2008 Bonds are 2008 Liquidity Facility Bonds or
are in a Long -Tenn Rate Period or a Fixed Rate Period, the Commission shall provide, or
cause to be provided, to the Trustee a 2008 Liquidity Facility. The Commission shall not
reduce the amount of a 2008 Liquidity Facility or permit a substitution of a 2008 Liquidity
Provider thereunder without obtaining a Rating Confirmation with respect to such action
unless such action is considered a substitution of a 2008 Liquidity Facility subjecting the
2008 Bonds affected thereby to mandatory purchase pursuant to Section 15.05(a)(2). The
Commission shall have the right at any time to provide, pursuant to Section 15.14, an
Alternate Liquidity Facility for any 2008 Liquidity Facility then in effect. if there shall have
been delivered to the Trustee (i) an Alternate Liquidity Facility meeting the requirements of
Section 15.14 and (ii) the opinions and documents required by Section 15.14, then the
Trustee shall accept such Alternate Liquidity Facility and, if so directed by the Commission,
on or after the effective date of such Alternate Liquidity Facility promptly surrender the 2008
Liquidity Facility being so substituted in accordance with the respective terms thereof for
cancellation; provided the Trustee shall not surrender any 2008 Liquidity Facility until all
draws or requests to purchase 2008 Bonds made under such 2008 Liquidity Facility have
been honored in accordance with the terms thereof, including all draws required to be made
in connection with such substitution. In the event that the Commission elects to provide an
Alternate Liquidity Facility with respect to the 2008 Bonds, the 2008 Bonds shall be subject
to the mandatory tender provisions of Section 15.05(a)(2). Notwithstanding the foregoing, if
at any time there shall cease to be 2008 Bonds Outstanding or if all the Outstanding 2008
Bonds have been converted to a Fixed Rate Period or a Long -Tenn Rate Period, or a 2008
Liquidity Facility shall be terminated pursuant to its terms, the Trustee shall promptly
surrender such 2008 Liquidity Facility in accordance with its terms for cancellation. The
Trustee shall comply with the procedures set forth in each 2008 Liquidity Facility relating to
the termination thereof.
OHS West:260379565.9
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"
( b ) I n t h e e v e n t t h a t a 2 0 0 8 L i q u i d i t y F a c i l i t y i s i n e f f e c t ; t h e T r u s t e e s h a l l m a k e a
d e m a n d f o r p a y m e n t u n d e r s u c h 2 0 0 8 L i q u i d i t y F a c i l i t y , s u b j e c t t o a n d i n a c c o r d a n c e w i t h i t s
t e r m s , i n o r d e r t o r e c e i v e p a y m e n t t h e r e u n d e r o n e a c h P u r c h a s e D a t e f o r s u c h 2 0 0 8 B o n d s a s
p r o v i d e d i n S e c t i o n 1 5 . 0 9 ( a ) ( i v ) , S e c t i o n 1 5 . 0 9 ( b ) ( i v ) o r S e c t i o n 1 5 . 0 9 ( c ) ( i v ) , a s a p p l i c a b l e .
( c ) E a c h s u c h d e m a n d f o r p a y m e n t s h a l l b e m a d e p u r s u a n t t o a n d i n a c c o r d a n c e
w i t h t h i s I n d e n t u r e : T h e T r u s t e e s h a l l g i v e n o t i c e o f e a c h s u c h d e m a n d f o r p a y m e n t t o t h e
C o m m i s s i o n a t t h e t i m e o f e a c h s u c h d e m a n d . T h e p r o c e e d s o f e a c h s u c h d e m a n d s h a l l b e
d e p o s i t e d i n t h e 2 0 0 8 L i q u i d i t y F a c i l i t y P u r c h a s e A c c o u n t w i t h i n t h e 2 0 0 8 B o n d s P u r c h a s e
F u n d a n d u s e d i n t h e o r d e r o f p r i o r i t y e s t a b l i s h e d b y S e c t i o n 1 5 . 1 1 . A t t h e t i m e o f m a k i n g
a n y d e m a n d u n d e r a 2 0 0 8 L i q u i d i t y F a c i l i t y p u r s u a n t t o S e c t i o n 1 5 . 1 3 ( b ) , t h e T r u s t e e s h a l l
d i r e c t t h e 2 0 0 8 L i q u i d i t y P r o v i d e r t o p a y t h e p r o c e e d s o f s u c h d e m a n d d i r e c t l y t o t h e T r u s t e e
f o r d e p o s i t i n t h e 2 0 0 8 L i q u i d i t y F a c i l i t y P u r c h a s e A c c o u n t . T h e T r u s t e e s h a l l c o m p l y w i t h
a l l p r o v i s i o n s o f e a c h 2 0 0 8 L i q u i d i t y F a c i l i t y i n o r d e r t o r e a l i z e u p o n a n y d e m a n d f o r
p a y m e n t t h e r e u n d e r , a n d w i l l n o t d e m a n d p a y m e n t u n d e r a n y 2 0 0 8 L i q u i d i t y F a c i l i t y o f a n y
a m o u n t s f o r p a y m e n t o f : ( i ) 2 0 0 8 L i q u i d i t y F a c i l i t y B o n d s ; o r ( i i ) 2 0 0 8 B o n d s h e l d b y t h e
C o m m i s s i o n o r a n y a f f i l i a t e o f t h e C o m m i s s i o n o r a n y n o m i n e e o f t h e C o m m i s s i o n u n l e s s
s u c h 2 0 0 8 L i q u i d i t y F a c i l i t y s p e c i f i c a l l y p e r m i t s s u c h d e m a n d .
( d ) A n y 2 0 0 8 B o n d s p u r c h a s e d w i t h p a y m e n t s m a d e u n d e r a 2 0 0 8 L i q u i d i t y
F a c i l i t y p u r s u a n t t o S e c t i o n 1 5 : 1 3 ( b ) s h a l l c o n s t i t u t e 2 0 0 8 L i q u i d i t y F a c i l i t y B o n d s a n d s h a l l
b e r e g i s t e r e d i n t h e n a m e o f , o r a s o t h e r w i s e d i r e c t e d b y , t h e a p p l i c a b l e L i q u i d i t y P r o v i d e r
a n d d e l i v e r e d t o o r u p o n t h e o r d e r o f , o r a s o t h e r w i s e d i r e c t e d b y , s u c h L i q u i d i t y P r o v i d e r . A t
t h e o p t i o n o f t h e C o m m i s s i o n , i t m a y p r o v i d e f u n d s t o t h e 2 0 0 8 L i q u i d i t y P r o v i d e r t o
p u r c h a s e 2 0 0 8 L i q u i d i t y F a c i l i t y B o n d s , i n w h i c h e v e n t s u c h 2 0 0 8 B o n d s s h a l l b e h e l d b y t h e
T r u s t e e i n a c c o r d a n c e w i t h i n s t r u c t i o n s b y t h e C o m m i s s i o n .
( e ) U n l e s s o t h e r w i s e p r o v i d e d i n a 2 0 0 8 L i q u i d i t y F a c i l i t y , 2 0 0 8 L i q u i d i t y
F a c i l i t y B o n d s s h a l l b e r e m a r k e t e d b y t h e a p p l i c a b l e R e m a r k e t i n g A g e n t p r i o r t o a n y o t h e r
2 0 0 8 B o n d s t e n d e r e d f o r p u r c h a s e p u r s u a n t t o S e c t i o n 1 5 . 0 4 o r 1 5 . 0 5 a n d s h a l l b e
r e m a r k e t e d i n a c c o r d a n c e w i t h t h e t e r m s o f t h e a p p l i c a b l e R e m a r k e t i n g A g r e e m e n t . U p o n
( i ) r e c e i p t b y t h e C o m m i s s i o n a n d t h e T r u s t e e o f w r i t t e n n o t i f i c a t i o n f r o m a 2 0 0 8 L i q u i d i t y
P r o v i d e r t h a t a 2 0 0 8 L i q u i d i t y F a c i l i t y h a s b e e n f u l l y r e i n s t a t e d w i t h r e s p e c t t o p r i n c i p a l a n d
i n t e r e s t a n d ( i i ) r e l e a s e b y t h e 2 0 0 8 L i q u i d i t y P r o v i d e r o f a n y 2 0 0 8 L i q u i d i t y F a c i l i t y B o n d s
t h a t t h e R e m a r k e t i n g A g e n t h a s r e m a r k e t e d , s u c h 2 0 0 8 B o n d s s h a l l b e m a d e a v a i l a b l e t o t h e
p u r c h a s e r s t h e r e o f a n d s h a l l n o l o n g e r c o n s t i t u t e 2 0 0 8 L i q u i d i t y F a c i l i t y B o n d s f o r p u r p o s e s
o f t h i s I n d e n t u r e . T h e p r o c e e d s o f a n y r e m a r k e t i n g o f 2 0 0 8 L i q u i d i t y F a c i l i t y B o n d s s h a l l b e
p a i d t o t h e 2 0 0 8 L i q u i d i t y P r o v i d e r b y t h e T r u s t e e o n s u c h r e m a r k e t i n g d a t e i n i m m e d i a t e l y
a v a i l a b l e f u n d s w i t h i n t e r e s t o n t h e s a l e p r i c e b e i n g c a l c u l a t e d a s i f s u c h 2 0 0 8 B o n d w e r e n o t
a 2 0 0 8 L i q u i d i t y F a c i l i t y B o n d ; p r o v i d e d , h o w e v e r , i f a l l s u c h 2 0 0 8 B o n d s a r e 2 0 0 8
L i q u i d i t y F a c i l i t y B o n d s , a t t h e p r i n c i p a l a m o u n t t h e r e o f p l u s a c c r u e d i n t e r e s t , a n d t h e
r e m a r k e t i n g d a t e w i l l b e c o n s i d e r e d a n I n t e r e s t P a y m e n t D a t e .
( f ) T h e T r u s t e e a g r e e s t h a t i t w i l l , p r o m p t l y u p o n r e c e i p t , s e n d t o t h e 2 0 0 8
L i q u i d i t y P r o v i d e r ( b y E l e c t r o n i c M e a n s ) a c o p y o f e v e r y n o t i c e r e c e i v e d b y i t h e r e u n d e r
r e l a t i n g t o a n y 2 0 0 8 L i q u i d i t y F a c i l i t y B o n d s .
O H S W e s t : 2 6 0 3 7 9 5 6 5 . 9
3 3
2 5 5
(g) Notwithstanding anything to the contrary herein or in the 2008 Bonds, all
obligations of the Commission under or in connection with .any 2008 Liquidity Facility
(including, without limitation, the payment of any reimbursement obligations to any 2008
Liquidity Provider and the payment of any 2008 Liquidity Facility Bonds) shall be governed
by the terms of the applicable 2008 Liquidity Facility.
(h) The Trustee shall provide to the Remarketing Agent and to each Rating
Agency then rating the 2008 Bonds written notice of the provision of a 2008 Liquidity
Facility or the extension of any 2008 Liquidity Facility in effect with respect to the 2008
Bonds.
(0 Whenever requested in writing by the Commission, the Trustee shall submit to
the applicable 2008 Liquidity Provider a reduction certificate or other appropriate
documentation necessary under the applicable 2008 Liquidity Facility to reduce the principal
amount of the 2008 Bonds and related interest to reflect any purchase or redemption of such
2008 Bonds by the Commission and the cancellation of such 2008 Bonds.
Section 15.14. Alternate Liquidity Facilities.
(a) So long as any 2008 Bonds bear interest at a Variable Rate (other than 2008
Bonds in a Long -Term Rate Period for which there is no Liquidity Facility or a Fixed Rate
Period), on or prior to the Expiration or termination of any existing 2008 Liquidity Facility,
including any renewals or extensions thereof (other than an Expiration of such 2008
Liquidity Facility at the final maturity of the 2008 Bonds to which such 2008 Liquidity
Facility relates), the Commission shall provide to the Trustee (with a copy to the applicable
Remarketing Agent) a renewal or extension of the term of the existing 2008 Liquidity
Facility for such 2008 Bonds or an Alternate Liquidity Facility for such 2008 Bonds meeting
the requirements set forth in subsection (b) of this Section.
(b) The Commission may at any time provide an Alternate Liquidity Facility for
the 2008 Bonds in accordance with the provisions hereof and upon delivery to the Trustee of
the items specified in subsection (c) of this Section.
Any such Alternate Liquidity Facility must meet the following conditions:
(i) The obligations of a 2008 Liquidity Provider under an Alternate Liquidity
Facility to purchase 2008 Bonds or otherwise provide for the Purchase Price of 2008 Bonds
tendered or deemed tendered pursuant to Section 15.04 or Section 15.05 shall not be subject to
suspension or termination on less than fifteen (15) days' notice to the Commission and the
Trustee; provided, however, that the obligations of a 2008 Liquidity Provider to purchase 2008
Bonds or otherwise provide for the Purchase Price of such 2008 Bonds may be immediately
suspended or terminated (A) without such notice upon the occurrence of such events as may be
provided in a 2008 Liquidity Facility and which are disclosed to the Holders of such 2008 Bonds
in connection with the provision of such 2008 Liquidity Facility or, (B) if applicable, upon the
remarketing of such 2008 Bonds upon the mandatory tender thereof as a result of provision of
such Alternate Liquidity Facility pursuant to Section 15.05(a)(2);
OHS West:260379565.9
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( i i ) s u c h A l t e r n a t e L i q u i d i t y F a c i l i t y m u s t t a k e e f f e c t o n o r b e f o r e t h e
P u r c h a s e D a t e f o r t h e 2 0 0 8 B o n d s e s t a b l i s h e d p u r s u a n t t o S e c t i o n 1 5 . 0 5 ( a ) ( 2 ) ; a n d
( i i i ) s u c h A l t e r n a t e L i q u i d i t y F a c i l i t y m u s t b e i n a n a m o u n t s u f f i c i e n t t o p a y
t h e m a x i m u m P u r c h a s e P r i c e o f t h e 2 0 0 8 B o n d s w h i c h w i l l b e a p p l i c a b l e d u r i n g t h e R a t e P e r i o d
c o m m e n c i n g o n s u c h s u b s t i t u t i o n .
( c ) P r i o r t o t h e d a t e o f t h e d e l i v e r y o f s u c h A l t e r n a t e L i q u i d i t y F a c i l i t y t o t h e
T r u s t e e p u r s u a n t t o s u b s e c t i o n ( b ) o f t h i s S e c t i o n , t h e C o m m i s s i o n s h a l l c a u s e t o b e
f u r n i s h e d t o t h e T r u s t e e ( i ) a n O p i n i o n o f B o n d C o u n s e l a d d r e s s e d t o t h e T r u s t e e t o t h e e f f e c t
t h a t t h e d e l i v e r y o f s u c h A l t e r n a t e L i q u i d i t y F a c i l i t y t o t h e T r u s t e e i s a u t h o r i z e d u n d e r t h i s
I n d e n t u r e a n d c o m p l i e s w i t h t h e t e r m s h e r e o f a n d w i l l n o t , i n a n d o f i t s e l f , a d v e r s e l y a f f e c t
t h e T a x - E x e m p t s t a t u s o f i n t e r e s t o n t h e 2 0 0 8 B o n d s a n d ( i i ) a n o p i n i o n o r o p i n i o n s o f
c o u n s e l t o t h e L i q u i d i t y P r o v i d e r f o r s u c h A l t e r n a t e L i q u i d i t y F a c i l i t y a d d r e s s e d t o t h e
T r u s t e e , t o t h e e f f e c t t h a t s u c h A l t e r n a t e L i q u i d i t y F a c i l i t y h a s b e e n d u l y a u t h o r i z e d ,
e x e c u t e d a n d d e l i v e r e d b y t h e a p p l i c a b l e L i q u i d i t y P r o v i d e r a n d c o n s t i t u t e s t h e v a l i d , l e g a l
a n d b i n d i n g o b l i g a t i o n o f s u c h L i q u i d i t y P r o v i d e r e n f o r c e a b l e a g a i n s t s u c h L i q u i d i t y
P r o v i d e r i n a c c o r d a n c e w i t h i t s t e r m s a n d ( i i i ) i f t h e 2 0 0 8 B o n d s a r e n o t s u b j e c t t o m a n d a t o r y
t e n d e r f o r p u r c h a s e , t h e R a t t i n g C o n f i r m a t i o n r e q u i r e d b y S e c t i o n 1 5 . 0 5 ( a ) ( 2 ) .
( d ) T h e T r u s t e e s h a l l g i v e n o t i c e b y f a s t c l a s s m a i l t o t h e H o l d e r s o f t h e 2 0 0 8
B o n d s o f t h e p r o p o s e d s u b s t i t u t i o n . o f a 2 0 0 8 L i q u i d i t y F a c i l i t y n o t l a t e r t h a n t h e f i f t e e n t h
( 1 5 t h ) d a y p r i o r t o t h e s u b s t i t u t i o n d a t e .
S e c t i o n 1 5 . 1 5 . R e m a r k e t i n g A g e n t s f o r t h e 2 0 0 8 B o n d s . T h e C o m m i s s i o n s h a l l
a p p o i n t a n d e m p l o y o n e o r m o r e R e m a r k e t i n g A g e n t s f o r 2 0 0 8 B o n d s i n a D a i l y R a t e P e r i o d , a
W e e k l y R a t e P e r i o d , a C o m m e r c i a l P a p e r R a t e P e r i o d a n d a L o n g - T e r m R a t e P e r i o d . T h e
C o m m i s s i o n s h a l l a p p o i n t t h e i n i t i a l R e m a r k e t i n g A g e n t f o r t h e 2 0 0 8 B o n d s o n o r b e f o r e
S e p t e m b e r 1 , 2 0 0 9 . A l l r e f e r e n c e s i n t h i s F i r s t S u p p l e m e n t a l I n d e n t u r e t o t h e t e r m " R e m a r k e t i n g
A g e n t " s h a l l m e a n t h e o n e o r m o r e b a n k s , t r u s t c o m p a n i e s o r m e m b e r s o f t h e N a t i o n a l
A s s o c i a t i o n o f S e c u r i t i e s D e a l e r s I n c . a p p o i n t e d b y t h e C o m m i s s i o n t o p e r f o r m t h e d u t i e s a n d
o b l i g a t i o n s o f t h e R e m a r k e t i n g A g e n t h e r e u n d e r w i t h r e s p e c t t o t h e 2 0 0 8 B o n d s ; p r o v i d e d t h a t
a n y s u c h b a n k , t r u s t c o m p a n y o r m e m b e r o f t h e N a t i o n a l A s s o c i a t i o n o f S e c u r i t i e s D e a l e r s , I n c .
s o a p p o i n t e d s h a l l b e o r g a n i z e d a n d d o i n g b u s i n e s s u n d e r t h e l a w s o f a n y s t a t e o f t h e U n i t e d
S t a t e s o f A m e r i c a a n d s h a l l h a v e , t o g e t h e r w i t h i t s p a r e n t , i f a n y , a c a p i t a l i z a t i o n o f a t l e a s t
f i f t e e n m i l l i o n d o l l a r s ( $ 1 5 , 0 0 0 , 0 0 0 ) a s s h o w n i n i t s o r i t s p a r e n t ' s m o s t r e c e n t l y p u b l i s h e d
a n n u a l r e p o r t . T h e C o m m i s s i o n s h a l l e x e c u t e a n d d e l i v e r t o e a c h R e m a r k e t i n g A g e n t a
R e m a r k e t i n g A g r e e m e n t , w h i c h s h a l l d e s i g n a t e t h e R e m a r k e t i n g A g e n t ' s p r i n c i p a l o f f i c e a n d i n
w h i c h s u c h R e m a r k e t i n g A g e n t s h a l l a g r e e : ( i ) t o p e r f o r m t h e d u t i e s a n d c o m p l y w i t h t h e
r e q u i r e m e n t s i m p o s e d u p o n i t b y s u c h R e m a r k e t i n g A g r e e m e n t a n d t h i s I n d e n t u r e ; a n d ( i i ) t o
k e e p s u c h b o o k s a n d r e c o r d s w i t h i e N p r x , t t o i t s a c t i v i t i e s a s R e m a r k e t i n g A g e n t a s s h a l l b e
c o n s i s t e n t w i t h p r u d e n t i n d u s t r y p r a c t i c e a n d t o m a k e s u c h b o o k s a n d r e c o r d s a v a i l a b l e f o r
i n s p e c t i o n b y e a c h o f t h e C o m m i s s i o n a n d t h e T r u s t e e a t a l l r e a s o n a b l e t i m e s u p o n r e a s o n a b l e
n o t i c e .
O H S W e s t : 2 6 0 3 7 9 5 6 5 . 9
3 5
2 5 7
ARTICLE XVI
PURCHASE OF 2008 BONDS AT DIRECTION OF COMMISSION
Section 16.01. Mandatory Tender for Purchase of 2008 Bonds at Direction of
Commission.
(a) In addition to the provisions relating to the mandatory tender for purchase of
2008 Bonds pursuant to Section 15.05, the 2008 Bonds, or any of them, shall be subject to
mandatory tender for purchase by the Commission, in whole or in part (such that the portion
that is subject to mandatory tender for purchase pursuant to this Section 16.01 and the portion
not subject to such mandatory tender shall each be in an Authorized Denomination), at the
applicable Optional Purchase Price on each Optional Purchase Date. In the event that the
Commission determines to purchase any 2008 Bonds on any Optional Purchase Date, the
Commission shall provide the Trustee with written notice of such determination at least
fifteen (15) days prior to the Optional Purchase Date, which notice shall specify the principal
amount of 2008 Bonds of each maturity that are to be purchased and the Optional Purchase
Date on which such purchase is to occur.
(b) When the Trustee shall receive notice from the Commission of its
determination to purchase 2008 Bonds pursuant to subsection (a) of this Section, the Trustee
shall give notice, in the name of the Commission, of the mandatory tender for purchase of
such 2008 Bonds, which notice shall be mailed, by first class mail, postage prepaid, not more
than ninety (90) nor less than ten (10) days before the Optional Purchase Date to the Holders
of any 2008 Bonds or portions of 2008 Bonds to be purchased at their addresses appearing in
the bond registration books maintained by the Trustee, with a copy to the Notice Parties.
Such notice shall specify the maturities of such 2008 Bonds to be purchased, the Optional
Purchase Date, the Optional Purchase Price and the place or places where the Optional
Purchase Price due upon such tender for purchase shall be payable and, if less than all of the
2008 Bonds of the same maturity are to be purchased, the letters and numbers or other
distinguishing marks of such 2008 Bonds so to be purchased, and, in the case of 2008 Bonds
to be purchased in part only, such notice shall also specify the respective portions of the
principal amount thereof to be purchased. Such notice shall further state that on such
Optional Purchase Date there shall become due and payable upon each 2008 Bond to be
purchased, the Optional Purchase Price thereof, or the Optional Purchase Price of the
specified portions of the principal amount thereof to be purchased in the case of 2008 Bonds
to be purchased in part only, and that from and after such Optional Purchase Date interest on
such 2008 Bond for the benefit of the current Holder of such 2008 Bond or the portion of
such 2008 Bond to be purchased shall cease to accrue and be payable.
Receipt of such notice of mandatory tender for purchase shall not be a
condition precedent to the mandatory tender for purchase of the 2008 Bonds and failure of
any Holder of a 2008 Bond to receive any such notice or any defect in such notice shall not
affect the validity of the proceedings for the mandatory tender for purchase of the 2008
Bonds pursuant to this Section.
(c) If at the time the Trustee sends any notice of mandatory tender for purchase of
the 2008 Bonds pursuant to this Section, the Commission has not deposited with the Trustee
OHS West:260379565.9
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"
a n a m o u n t s u f f i c i e n t t o p a y t h e f u l l O p t i o n a l P u r c h a s e P r i c e o f t h e 2 0 0 8 B o n d s , o r t h e
p o r t i o n s t h e r e o f , t o b e p u r c h a s e d , s u c h n o t i c e s h a l l s t a t e t h a t s u c h m a n d a t o r y t e n d e r f o r
p u r c h a s e i s c o n d i t i o n a l u p o n t h e r e c e i p t b y t h e T r u s t e e o n o r p r i o r t o t h e O p t i o n a l P u r c h a s e
D a t e f i x e d f o r s u c h p u r c h a s e o f m o n e y s s u f f i c i e n t t o p a y t h e O p t i o n a l P u r c h a s e P r i c e o f s u c h
2 0 0 8 B o n d s , o r t h e p o r t i o n s t h e r e o f t o b e p u r c h a s e d , a n d t h a t i f s u c h m o n e y s s h a l l n o t h a v e
b e e n s o r e c e i v e d s a i d n o t i c e s h a l l b e o f n o f o r c e a n d e f f e c t a n d t h e C o m m i s s i o n s h a l l n o t b e
r e q u i r e d t o p u r c h a s e s u c h 2 0 0 8 B o n d s . I n t h e e v e n t t h a t s u c h n o t i c e o f m a n d a t o r y t e n d e r f o r
p u r c h a s e c o n t a i n s s u c h a c o n d i t i o n a n d s u c h m o n e y s a r e n o t s o r e c e i v e d , n o p u r c h a s e o f t h e
2 0 0 8 B o n d s i d e n t i f i e d i n t h e n o t i c e o f m a n d a t o r y t e n d e r f o r p u r c h a s e s h a l l b e m a d e a n d t h e
T r u s t e e s h a l l , w i t h i n a r e a s o n a b l e t i m e t h e r e a f t e r , g i v e n o t i c e , t o t h e R e m a r k e t i n g A g e n t a n d
t o t h e p e r s o n s a n d i n t h e m a n n e r i n w h i c h t h e n o t i c e o f t e n d e r w a s g i v e n , t h a t s u c h m o n e y s
w e r e n o t s o r e c e i v e d a n d ' t h a t t h e r e w i l l b e n o p u r c h a s e o f 2 0 0 8 B o n d s p u r s u a n t t o t h e n o t i c e
o f m a n d a t o r y t e n d e r f o r p u r c h a s e .
( d ) I f l e s s t h a n a l l o f t h e O u t s t a n d i n g 2 0 0 8 B o n d s a r e t o b e c a l l e d f o r m a n d a t o r y
t e n d e r f o r p u r c h a s e p u r s u a n t t o t h i s S e c t i o n , t h e p r i n c i p a l a m o u n t a n d m a t u r i t y o f s u c h 2 0 0 8
B o n d s t o b e p u r c h a s e d s h a l l b e s e l e c t e d b y t h e C o m m i s s i o n i n i t s s o l e d i s c r e t i o n . I f l e s s t h a n
a l l o f 2 0 0 8 B o n d s o f l i k e m a t u r i t y s h a l l b e c a l l e d f o r m a n d a t o r y t e n d e r f o r p u r c h a s e p u r s u a n t
t h i s S e c t i o n , e x c e p t a s o t h e r w i s e p r o v i d e d b y t h e S e c u r i t i e s D e p o s i t o r y , t h e p a r t i c u l a r 2 0 0 8
B o n d s o r p o r t i o n s o f 2 0 0 8 B o n d s t o b e p u r c h a s e d s h a l l b e s e l e c t e d a t r a n d o m b y t h e T r u s t e e
i n s u c h m a n n e r a s t h e T r u s t e e i n i t s d i s c r e t i o n m a y d e e m f a i r a n d a p p r o p r i a t e ; p r o v i d e d ,
h o w e v e r , t h a t i n s e l e c t i n g p o r t i o n s o f 2 0 0 8 B o n d s f o r p u r c h a s e , t h e T r u s t e e s h a l l t r e a t e a c h
2 0 0 8 B o n d a s r e p r e s e n t i n g t h a t n u m b e r o f 2 0 0 8 B o n d s o f t h e m i n i m u m A u t h o r i z e d
D e n o m i n a t i o n f o r t h e 2 0 0 8 B o n d s w h i c h i s o b t a i n e d b y d i v i d i n g t h e p r i n c i p a l a m o u n t o f s u c h
2 0 0 8 B o n d b y t h e m i n i m u m A u t h o r i z e d D e n o m i n a t i o n f o r t h e 2 0 0 8 B o n d s .
S e c t i o n 1 6 . 0 2 . D e l i v e r y o f T e n d e r e d 2 0 0 8 B o n d s . W i t h r e s p e c t t o a n y 2 0 0 8 B o n d t h a t
i s r e g i s t e r e d i n b o o k - e n t r y f o r m , d e l i v e r y o f s u c h 2 0 0 8 B o n d t o t h e T r u s t e e i n c o n n e c t i o n w i t h
a n y m a n d a t o r y t e n d e r f o r p u r c h a s e p u r s u a n t t o S e c t i o n 1 6 . 0 1 s h a l l b e e f f e c t e d b y t h e m a k i n g o f ,
o r t h e i r r e v o c a b l e a u t h o r i z a t i o n t o m a k e , a p p r o p r i a t e e n t r i e s o n t h e b o o k s o f t h e S e c u r i t i e s
D e p o s i t o r y f o r s u c h 2 0 0 8 B o n d o r a n y P a r t i c i p a n t t h e r e o f t o r e f l e c t t h e t r a n s f e r o f t h e b e n e f i c i a l
o w n e r s h i p i n t e r e s t i n s u c h 2 0 0 8 B o n d t o t h e a c c o u n t o f t h e T r u s t e e , o n b e h a l f o f t h e
C o m m i s s i o n , o r t o t h e a c c o u n t o f a P a r t i c i p a n t a c t i n g o n b e h a l f o f t h e C o m m i s s i o n . W i t h r e s p e c t
t o a n y 2 0 0 8 B o n d t h a t i s n o t r e g i s t e r e d i n b o o k - e n t r y f o r m , d e l i v e r y o f s u c h 2 0 0 8 B o n d t o t h e
T r u s t e e i n c o n n e c t i o n w i t h a n y m a n d a t o r y t e n d e r f o r p u r c h a s e p u r s u a n t t o S e c t i o n 1 6 . 0 1 s h a l l b e
e f f e c t e d b y p h y s i c a l d e l i v e r y o f s u c h 2 0 0 8 B o n d t o t h e T r u s t e e a t i t s P r i n c i p a l O f f i c e , b y 1 : 0 0
p . m . ( N e w Y o r k C i t y t i m e ) o n t h e O p t i o n a l P u r c h a s e D a t e , a c c o m p a n i e d b y a n i n s t r u m e n t o f
t r a n s f e r t h e r e o f , i n a f o r m s a t i s f a c t o r y t o t h e T r u s t e e , e x e c u t e d i n b l a n k b y t h e H o l d e r t h e r e o f
w i t h t h e s i g n a t u r e o f s u c h H o l d e r g u a r a n t e e d i n a c c o r d a n c e w i t h t h e g u i d e l i n e s s e t f o r t h b y o n e
o f t h e n a t i o n a l l y r e c o g n i z e d m e d a l l i o n s i g n a t u r e p r o g r a m s .
S e c t i o n 1 6 . 0 3 . 2 0 0 8 B o n d s D e e m e d P u r c h a s e d .
( a ) I f m o n e y s s u f f i c i e n t t o p a y t h e O p t i o n a l P u r c h a s e P r i c e o f 2 0 0 8 B o n d s t o b e
p u r c h a s e d p u r s u a n t t o S e c t i o n 1 6 . 0 1 o n a n O p t i o n a l P u r c h a s e D a t e s h a l l b e h e l d b y t h e
T r u s t e e o n s u c h O p t i o n a l P u r c h a s e D a t e , s u c h 2 0 0 8 B o n d s s h a l l b e d e e m e d t o h a v e b e e n
p u r c h a s e d f o r a l l p u r p o s e s o f t h i s I n d e n t u r e , i r r e s p e c t i v e o f w h e t h e r o r n o t s u c h 2 0 0 8 B o n d s
O H S W e s t : 2 6 0 3 7 9 5 6 5 . 9
3 7
2 5 9
shall have been delivered to the Trustee or transferred on the books of the Securities
Depository for the 2008 Bonds, and neither the former Holder or former Beneficial Owner of
such 2008 Bonds nor any other person shall have any claim thereunder, under this Indenture
or otherwise, for any amount other than the Optional Purchase Price thereof
(b) In the event of non -delivery of any 2008 Bond to be purchased pursuant to
Section 16.01, the Trustee shall segregate and hold uninvested the moneys for the Optional
Purchase Price of such 2008 Bond in trust, without liability for interest thereon, for the
benefit of the former Holders or Beneficial Owners of such 2008 Bond, who shall, except as
provided in the following sentence, thereafter be restricted exclusively to such moneys for
the satisfaction of any claim for the Optional Purchase Price of such 2008 Bond. Any
moneys that the Trustee shall segregate and hold in trust for the payment of the Optional
Purchase Price of any 2008 Bond remaining unclaimed for one (1) year after the Optional
Purchase Date shall be paid automatically to the Commission. After the payment of such
unclaimed moneys to the Commission, the former Holder or former Beneficial Owner of
such 2008 Bond shall look only to the Commission for the payment thereof.
Section 16.04. Deposit of 2008 Bonds. The Trustee agrees to accept and hold all 2008
Bonds delivered to it pursuant to Section 16.01 intrust for the benefit of the respective Holders
or Beneficial Owners which shall have so delivered such 2008 Bonds until the Optional Purchase
Price of such 2008 Bonds shall have been delivered to or for the account of or to the order of
such Holders or Beneficial Owners pursuant to Section 16.05. Any 2008 Bonds purchased
pursuant to Section 16.01 and registered for transfer to the Trustee shall be held in trust by the
Trustee for the benefit of the Commission in accordance with the instructions of the
Commission.
Section 16.05. Payment of Optional Purchase Price of 2008 Bonds.
(a) Moneys held by the Trustee for the payment of the Optional Purchase Price of
2008 Bonds subject to mandatory tender for purchase pursuant to Section 16.01 shall be
applied at or before 3:00 p.m. (New York City time) to the purchase of such 2008 Bonds.
Except as otherwise provided with respect to 2008 Bonds that are registered in book -entry
from, payment of the Optional Purchase Price of 2008 Bonds tendered for purchase pursuant
to Section 16.01 shall be made only upon the surrender of such 2008 Bonds to the Trustee.
Notwithstanding anything to the contrary in this Section, if the 2008 Bonds to be tendered for
purchase pursuant to Section 16.01 are registered in book -entry form, payment of the
Optional Purchase Price for tendered 2008 Bonds shall be made in accordance with the rules
and procedures of the Securities Depository.
(b) The Trustee shall, as to any 2008 Bonds that are not registered in book -entry
form and that have not been delivered to it as required by Section 16.02, place a stop transfer
against an appropriate amount of 2008 Bonds registered in the name of the Holder of such
2008 Bonds on the bond registration books maintained by the Trustee. The Trustee shall
place and maintain such stop transfer commencing with the lowest serial number 2008 Bond
registered in the name of such Holder until stop transfers have been placed against an
appropriate amount of 2008 Bondsuntil the appropriate 2008 Bonds are delivered to the
OHS West:260379565.9
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260
"
T r u s t e e . U p o n s u c h d e l i v e r y , t h e T r u s t e e s h a l l m a k e a n y n e c e s s a r y a d j u s t m e n t s t o s u c h b o n d
r e g i s t r a t i o n b o o k s .
S e c t i o n 1 6 . 0 6 . 2 0 0 8 B o n d s O w n e d b y C o m m i s s i o n .
( a ) A n y 2 0 0 8 B o n d s p u r c h a s e d b y t h e C o m m i s s i o n p u r s u a n t t o S e c t i o n 1 6 . 0 1
s h a l l n o t b e c a n c e l l e d b y t h e T r u s t e e u n l e s s s u c h c a n c e l l a t i o n i s d i r e c t e d b y a n A u t h o r i z e d
R e p r e s e n t a t i v e b u t s h a l l r e m a i n O u t s t a n d i n g f o r a l l p u r p o s e s o f t h e I n d e n t u r e .
( b ) T h e C o m m i s s i o n c o v e n a n t s a n d a g r e e s t h a t i t s h a l l n o t t r a n s f e r o r c a u s e t h e
t r a n s f e r o f a n y 2 0 0 8 B o n d p u r c h a s e d b y t h e C o m m i s s i o n p u r s u a n t t o S e c t i o n 1 6 . 0 1 u n l e s s
t h e C o m m i s s i o n d e l i v e r s t o t h e T r u s t e e a F a v o r a b l e O p i n i o n o f B o n d C o u n s e l w i t h r e s p e c t t o
s u c h t r a n s f e r .
( c ) T h e C o m m i s s i o n c o v e n a n t s a n d a g r e e s t h a t , i n t h e e v e n t t h a t a t a n y t i m e t h e r e
a r e i n s u f f i c i e n t f u n d s i n t h e R e v e n u e F u n d , t h e P r i n c i p a l F u n d , t h e I n t e r e s t F u n d o r t h e
R e d e m p t i o n F u n d , a s a p p l i c a b l e , t o p a y t h e p r i n c i p a l o f a n d i n t e r e s t t h e n d u e o n t h e
O u t s t a n d i n g 2 0 0 8 B o n d s , i t w i l l s u r r e n d e r o r c a u s e t o b e s u r r e n d e r e d t o t h e T r u s t e e f o r
c a n c e l l a t i o n a n y 2 0 0 8 B o n d s h e l d b y o r o n b e h a l f o f t h e C o m m i s s i o n .
A R T I C L E X V I I
E S T A B L I S H M E N T O F F U N D S A N D A C C O U N T S A N D A P P L I C A T I O N T H E R E O F
S e c t i o n 1 7 . 0 1 . F u n d s a n d A c c o u n t s . T h e f o l l o w i n g f u n d s a n d a c c o u n t s a r e h e r e b y
e s t a b l i s h e d i n c o n n e c t i o n w i t h t h e 2 0 0 8 B o n d s :
( a ) T o e n s u r e t h e p r o p e r a p p l i c a t i o n o f s u c h p o r t i o n o f p r o c e e d s f r o m t h e s a l e o f
t h e 2 0 0 8 B o n d s t o b e a p p l i e d t o p a y t h e C o s t s o f I s s u a n c e o f t h e 2 0 0 8 B o n d s , t h e r e i s h e r e b y
e s t a b l i s h e d t h e 2 0 0 8 C o s t s o f I s s u a n c e F u n d , s u c h f u n d t o b e h e l d b y t h e T r u s t e e .
( b ) T o p r o v i d e f o r a r e s e r v e f u n d f o r t h e 2 0 0 8 B o n d s , t h e r e i s h e r e b y e s t a b l i s h e d
a n d m a i n t a i n e d w i t h t h e T r u s t e e a f u n d d e s i g n a t e d a s t h e " 2 0 0 8 B o n d s R e s e r v e F u n d . "
( c ) T o e n s u r e p r o p e r a p p l i c a t i o n o f f u n d s t o b e a p p l i e d t o t h e p u r c h a s e o f 2 0 0 8
B o n d s t e n d e r e d o r d e e m e d t e n d e r e d f o r p u r c h a s e p u r s u a n t t o S e c t i o n 1 5 . 0 4 o r 1 5 . 0 5 , t h e r e i s
h e r e b y e s t a b l i s h e d t h e 2 0 0 8 B o n d s P u r c h a s e F u n d , s u c h f u n d t o b e h e l d b y t h e T r u s t e e .
T h e r e s h a l l a l s o b e c r e a t e d a n d e s t a b l i s h e d t h r e e ( 3 ) s e p a r a t e a c c o u n t s i n t h e 2 0 0 8 B o n d s
P u r c h a s e F u n d d e s i g n a t e d t h e " 2 0 0 8 R e m a r k e t i n g A c c o u n t , " t h e " 2 0 0 8 L i q u i d i t y F a c i l i t y
P u r c h a s e A c c o u n t , " a n d t h e " 2 0 0 8 C o m m i s s i o n A c c o u n t . "
S e c t i o n 1 7 . 0 2 . 2 0 0 8 C o s t s o f I s s u a n c e F u n d . T h e m o n i e s s e t a s i d e a n d p l a c e d i n t h e
2 0 0 8 C o s t s o f I s s u a n c e F u n d s h a l l b e e x p e n d e d f o r t h e p u r p o s e o f p a y i n g t h e C o s t s o f I s s u a n c e
o f t h e 2 0 0 8 B o n d s . B e f o r e a n y p a y m e n t f r o m t h e 2 0 0 8 C o s t s o f I s s u a n c e F u n d s h a l l b e m a d e b y
t h e T r u s t e e , t h e C o m m i s s i o n s h a l l f i l e o r c a u s e t o b e f i l e d w i t h t h e T r u s t e e a r e q u i s i t i o n o f t h e
C o m m i s s i o n ( e a c h a " R e q u i s i t i o n " ) , s u c h R e q u i s i t i o n t o b e s i g n e d b y a n A u t h o r i z e d
R e p r e s e n t a t i v e a n d t o i n c l u d e : ( i ) t h e i t e m n u m b e r o f s u c h p a y m e n t ; ( i i ) t h e n a m e a n d a d d r e s s o f
t h e p e r s o n t o w h o m e a c h s u c h p a y m e n t i s d u e , w h i c h m a y b e t h e C o m m i s s i o n i n t h e c a s e o f
r e i m b u r s e m e n t f o r c o s t s t h e r e t o f o r e p a i d b y t h e C o m m i s s i o n ; ( i i i ) t h e r e s p e c t i v e a m o u n t s t o b e
O H S W e s t : 2 6 0 3 7 9 5 6 5 . 9
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2 6 1
paid; (iv) the purpose by general classification for which each obligation to be paid was incurred;
and (v) that obligations in the stated amounts have been incurred by the Commission and are
presently due and payable and that each item thereof is a proper charge against the 2008 Costs of
Issuance Fund and has not been previously paid from said fund. On December 1, 2008 any
remaining amounts in the 2008 Costs of Issuance Fund shall be transferred to the Revenue Fund
and the 2008 Costs of Issuance Fund shall be closed.
Section 17.03. Funding and Application of the 2008 Bonds Reserve Fund; Bond
Reserve Requirement for the 2008 Bonds. The Trustee shall hold the amount of $ , on
deposit in the 2008 Bonds Reserve Fund, which amount is equal to the 2008 Bonds Reserve
Requirement upon issuance of the 2008 Bonds. All amounts in the 2008 Bonds Reserve Fund
(including all amounts which may be obtained from any Reserve Facility on deposit in the 2008
Bonds Reserve Fund) shall be used and withdrawn by the Trustee solely: (i) for the purpose of
making up any deficiency in the Interest Fund or the Principal Fund relating to the 2008 Bonds;
or, (ii) together with any other moneys available therefor, (x) for the payment of all of the 2008
Bonds then Outstanding, (y) for the defeasance or redemption of all or a portion of the 2008
Bonds then Outstanding, provided, however, that if funds on deposit in the 2008 Bonds Reserve
Fund are applied to the defeasance or redemption of a portion of the 2008 Bonds, the amount on
deposit in the 2008 Bonds Reserve Fund immediately subsequent to a partial defeasance or
redemption shall equal the 2008 Bonds Reserve Requirement applicable to all 2008 Bonds
Outstanding immediately subsequent to such partial defeasance or redemption, or (z) for the
payment of the fmal principal and interest payment of the 2008 Bonds.
Section 17.04. 2008 Bonds Purchase Fund. Moneys in the 2008 Bonds Purchase Fund
shall be applied as provided in this Section.
(a) Remarketing Account. All moneys received by the Trustee on behalf of
purchasers of 2008 Bonds pursuant to Section 15.10(a), other than the Commission, shall be
(i) deposited in the 2008 Remarketing Account within the 2008 Bonds Purchase Fund; (ii)
held in trust in accordance with the provisions hereof and (iii) paid out in accordance with
Section 15.11.
(b) Liquidity Facility Purchase Account. All moneys received by the Trustee as
payments under any 2008 Liquidity Facility for the purchase of 2008 Bonds pursuant to
Section 15.09(a)(iv), Section 15.09(b)(iv) or Section 15.09(c)(iv) shall be (i) deposited in the
2008 Liquidity Facility Purchase Account within the 2008 Bonds Purchase Fund, (ii) held in
trust in accordance with the provisions hereof and (iii) paid out in accordance with
Section 15.11.
(c) Commission Account. All moneys received by the Trustee from the
Commission for the purchase of 2008 Bonds pursuant to Section 15.10(c) shall be
(i) deposited in the 2008 Commission Account within the 2008 Bonds Purchase Fund,
(ii) held in trust in accordance with the provisions hereof and (iii) paid out in accordance with
Section 15.11.
The moneys in the 2008 Bonds Purchase Fund shall be used solely to pay the Purchase
Price of 2008 Bonds as provided herein (or to reimburse a Liquidity Provider, if any, for
OBS West:260379565.9
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•
"
p a y m e n t s m a d e u n d e r t h e 2 0 0 8 L i q u i d i t y F a c i l i t y f o r s u c h p u r p o s e ) a n d m a y n o t b e u s e d f o r a n y
o t h e r p u r p o s e s . A l l a m o u n t s h e l d i n t h e 2 0 0 8 B o n d s P u r c h a s e F u n d , i n c l u d i n g t h e 2 0 0 8
R e m a r k e t i n g A c c o u n t , t h e 2 0 0 8 L i q u i d i t y F a c i l i t y P u r c h a s e A c c o u n t a n d 2 0 0 8 C o m m i s s i o n
A c c o u n t t h e r e i n , s h a l l b e h e l d i n t r u s t b y t h e T r u s t e e f o r t h e b e n e f i t o f t h e H o l d e r s o r B e n e f i c i a l
O w n e r s o f 2 0 0 8 B o n d s t o w h i c h s u c h a c c o u n t r e l a t e s t e n d e r e d o r d e e m e d t e n d e r e d f o r p u r c h a s e
p u r s u a n t t o S e c t i o n 1 5 . 0 4 a n d 1 5 . 0 5 ( p r o v i d e d t h a t a n y a m o u n t s h e l d i n t h e 2 0 0 8 R e m a r k e t i n g
A c c o u n t t h a t a r e d e r i v e d f r o m t h e r e m a r k e t i n g o f 2 0 0 8 L i q u i d i t y F a c i l i t y B o n d s s h a l l b e h e l d i n
t r u s t f o r t h e b e n e f i t o f t h e 2 0 0 8 L i q u i d i t y P r o v i d e r ) .
M o n e y s i n t h e 2 0 0 8 B o n d s P u r c h a s e F u n d s h a l l b e h e l d u n i n v e s t e d p e n d i n g a p p l i c a t i o n
t h e r e o f a s p r o v i d e d i n t h i s S e c t i o n 1 7 . 0 4 .
A R T I C L E X V H I
M I S C E L L A N E O U S
S e c t i o n 1 8 . 0 1 . S e v e r a b i l i t v . I f a n y c o v e n a n t , a g r e e m e n t o r p r o v i s i o n , o r a n y p o r t i o n
t h e r e o f , c o n t a i n e d i n t h i s F i r s t S u p p l e m e n t a l I n d e n t u r e , o r t h e a p p l i c a t i o n t h e r e o f t o a n y p e r s o n
o r c i r c u m s t a n c e , i s h e l d t o b e u n c o n s t i t u t i o n a l , i n v a l i d o r u n e n f o r c e a b l e , t h e r e m a i n d e r o f t h i s
F i r s t S u p p l e m e n t a l I n d e n t u r e , a n d t h e a p p l i c a t i o n o f a n y s u c h c o v e n a n t , a g r e e m e n t o r p r o v i s i o n ,
o r p o r t i o n t h e r e o f , t o o t h e r P e r s o n s o r c i r c u m s t a n c e s , s h a l l b e d e e m e d s e v e r a b l e a n d s h a l l n o t b e
a f f e c t e d t h e r e b y , a n d t h i s F i r s t S u p p l e m e n t a l I n d e n t u r e a n d t h e 2 0 0 8 B o n d s i s s u e d p u r s u a n t
h e r e t o s h a l l r e m a i n v a l i d , a n d t h e H o l d e r s o f t h e 2 0 0 8 B o n d s s h a l l r e t a i n a l l v a l i d r i g h t s a n d
b e n e f i t s a c c o r d e d t o t h e m u n d e r t h i s I n d e n t u r e , t h e A c t , a n d t h e C o n s t i t u t i o n a n d s t a t u t e s o f t h e
S t a t e .
S e c t i o n 1 8 . 0 2 . P a r t i e s I n t e r e s t e d H e r e i n . N o t h i n g i n t h i s F i r s t S u p p l e m e n t a l I n d e n t u r e
e x p r e s s e d o r i m p l i e d i s i n t e n d e d o r s h a l l b e c o n s t r u e d t o c o n f e r u p o n , o r t o g i v e t o , a n y p e r s o n o r
e n t i t y , o t h e r t h a n t h e C o m m i s s i o n , t h e T r u s t e e , e a c h 2 0 0 8 C r e d i t P r o v i d e r , e a c h 2 0 0 8 L i q u i d i t y
P r o v i d e r a n d t h e H o l d e r s o f t h e 2 0 0 8 B o n d s , a n y r i g h t , r e m e d y o r c l a i m u n d e r o r b y r e a s o n o f
t h i s F i r s t S u p p l e m e n t a l I n d e n t u r e o r a n y c o v e n a n t , c o n d i t i o n o r s t i p u l a t i o n h e r e o f ; a n d a l l t h e
c o v e n a n t s , s t i p u l a t i o n s , p r o m i s e s a n d a g r e e m e n t s i n t h i s F i r s t S u p p l e m e n t a l I n d e n t u r e c o n t a i n e d
b y a n d o n b e h a l f o f t h e C o m m i s s i o n s h a l l b e f o r t h e s o l e a n d e x c l u s i v e b e n e f i t o f t h e
C o m m i s s i o n , t h e T r u s t e e , e a c h 2 0 0 8 C r e d i t P r o v i d e r , e a c h 2 0 0 8 L i q u i d i t y P r o v i d e r a n d t h e
H o l d e r s o f t h e 2 0 0 8 B o n d s .
S e c t i o n 1 8 . 0 3 . H e a d i n g s N o t B i n d i n g . T h e h e a d i n g s i n t h i s F a s t S u p p l e m e n t a l
I n d e n t u r e a r e f o r c o n v e n i e n c e o n l y a n d i n n o w a y d e f i n e , l i m i t o r d e s c r i b e t h e s c o p e o r i n t e n t o f
a n y p r o v i s i o n s o r s e c t i o n s o f t h i s F i r s t S u p p l e m e n t a l I n d e n t u r e .
S e c t i o n 1 8 . 0 4 . N o t i c e A d d r e s s e s . E x c e p t a s o t h e r w i s e p r o v i d e d h e r e i n , i t s h a l l b e
s u f f i c i e n t s e r v i c e o r g i v i n g o f n o t i c e , r e q u e s t , c o m p l a i n t , d e m a n d o r o t h e r p a p e r i f t h e s a m e s h a l l
b e d u l y m a i l e d b y r e g i s t e r e d o r c e r t i f i e d m a i l , p o s t a g e p r e p a i d , a d d r e s s e d t o t h e N o t i c e A d d r e s s
f o r t h e a p p r o p r i a t e p a r t y o r p a r t i e s a s p r o v i d e d i n E x h i b i t B h e r e t o . A n y s u c h e n t i t y b y n o t i c e
g i v e n h e r e u n d e r m a y d e s i g n a t e a n y d i f f e r e n t a d d r e s s e s t o w h i c h s u b s e q u e n t n o t i c e s , c e r t i f i c a t e s
o r o t h e r c o m m u n i c a t i o n s s h a l l b e s e n t , b u t n o n o t i c e d i r e c t e d t o a n y o n e s u c h e n t i t y s h a l l b e
t h e r e b y r e q u i r e d t o b e s e n t t o m o r e t h a n t w o a d d r e s s e s . A n y s u c h c o m m u n i c a t i o n m a y a l s o b e
s e n t b y E l e c t r o n i c M e a n s , r e c e i p t o f w h i c h s h a l l b e c o n f i r m e d .
O H S W e s t 2 6 0 3 7 9 5 6 5 . 9
4 1
2 6 3
Section 18.05. Notices to Rating Agencies. The Trustee shall provide notice to the
Rating Agencies of the following events with respect to the 2008 Bonds:
(1) Change in Trustee or Remarketing Agent;
(2) Amendments to the Indenture;
(3) Provision, Expiration, Termination, substitution or extension of a 2008
Liquidity Facility or any 2008 Liquidity Provider thereunder;
(4) Provision, Expiration, Termination, substitution or extension of a 2008
Credit Enhancement or any 2008 Credit Provider thereunder;
(5)
(6)
(7)
Conversion of an Interest Rate Determination Method of the 2008 Bonds;
Redemption or defeasance of any 2008 Bonds; and
Any mandatory tender of any 2008 Bonds.
Section 18.06. Indenture to Remain in Effect. Save and except as amended and
supplemented by this First Supplemental Indenture, the Indenture shall remain in full force and
effect.
Section 18.07. Effective Date of First Supplemental Indenture. This First
Supplemental Indenture shall take effect upon its execution and delivery.
Section 18.08. Execution in Counterparts. This First Supplemental Indenture may be
executed in several counterparts, each of which shall be deemed an original, and all of which
shall constitute but one and the same instrument.
OHS West:260379565.9
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264
IN WITNESS WHEREOF, the parties hereto have executed this First Supplemental
Indenture by their officers thereunto duly authorized as of the day and year first written above.
RIVERSIDE COUNTY TRANSPORTATION
COMMISSION
(Seal)
ATTEST:
Clerk of the
Riverside County Transportation Commission
APPROVED AS TO FORM:
By:
General Counsel
OHS WesC260379565.9
By:
Executive Director
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:
Authorized Officer
43
265
0
"
E X H I B I T A
F O R M O F 2 0 0 8 B O N D
N o . R $
R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n
S a l e s T a x R e v e n u e B o n d
( L i m i t e d T a x B o n d )
2 0 0 8 S e r i e s A
I N T E R E S T R A T E M A T U R I T Y I S S U E D A T E
V a r i a b l e J u n e 1 , 2 0 , 2 0 0 8
C U S I P
R E G I S T E R E D O W N E R : C e d e & C o .
P R I N C I P A L A M O U N T : D o l l a r s
R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N C O M M I S S I O N , a p u b l i c e n t i t y d u l y
o r g a n i z e d a n d e x i s t i n g u n d e r t h e l a w s o f t h e S t a t e o f C a l i f o r n i a ( t h e " C o m m i s s i o n " ) , f o r v a l u e
r e c e i v e d , h e r e b y p r o m i s e s t o p a y ( b u t s o l e l y f r o m R e v e n u e s a s h e r e i n a f t e r r e f e r r e d t o ) i n l a w f u l
m o n e y o f t h e U n i t e d S t a t e s o f A m e r i c a , t o t h e r e g i s t e r e d H o l d e r o r r e g i s t e r e d a s s i g n s , o n t h e
m a t u r i t y d a t e s e t f o r t h a b o v e , u n l e s s r e d e e m e d p r i o r t h e r e t o a s h e r e i n a f t e r p r o v i d e d , t h e p r i n c i p a l
a m o u n t s p e c i f i e d a b o v e , t o g e t h e r w i t h i n t e r e s t t h e r e o n f r o m t h e I s s u e D a t e s e t f o r t h a b o v e u n t i l
t h e p r i n c i p a l h e r e o f s h a l l h a v e b e e n p a i d , a t t h e i n t e r e s t r a t e s a n d o n t h e d a t e s ( e a c h , a n " I n t e r e s t
P a y m e n t D a t e " ) d e s c r i b e d h e r e i n . T h e p r i n c i p a l o f a n d p r e m i u m , i f a n y , o n t h i s B o n d a r e
p a y a b l e t o t h e r e g i s t e r e d H o l d e r h e r e o f u p o n p r e s e n t a t i o n a n d s u r r e n d e r o f t h i s B o n d a t t h e
p r i n c i p a l o f f i c e o f U . S . B a n k N a t i o n a l A s s o c i a t i o n , a s t r u s t e e ( t o g e t h e r w i t h a n y s u c c e s s o r a s
t r u s t e e u n d e r t h e h e r e i n a f t e r d e f i n e d I n d e n t u r e , t h e " T r u s t e e " ) i n L o s A n g e l e s , C a l i f o r n i a .
I n t e r e s t o n t h i s B o n d s h a l l b e p a i d b y c h e c k d r a w n u p o n t h e T r u s t e e a n d m a i l e d o n t h e a p p l i c a b l e
I n t e r e s t P a y m e n t D a t e t o t h e r e g i s t e r e d H o l d e r h e r e o f a s o f t h e c l o s e o f b u s i n e s s o n t h e R e c o r d
D a t e a t s u c h r e g i s t e r e d H o l d e r ' s a d d r e s s a s i t a p p e a r s . o n t h e B o n d R e g i s t e r . A s u s e d h e r e i n ,
" R e c o r d D a t e " m e a n s : ( a ) f o r a n y I n t e r e s t P a y m e n t D a t e i n r e s p e c t o f a n y D a i l y R a t e P e r i o d ,
W e e k l y R a t e P e r i o d o r C o m m e r c i a l P a p e r R a t e P e r i o d , t h e B u s i n e s s D a y n e x t p r e c e d i n g s u c h
I n t e r e s t P a y m e n t D a t e ; a n d ( b ) f o r a n y I n t e r e s t P a y m e n t D a t e i n r e s p e c t o f a n y L o n g - T e r m R a t e
P e r i o d o r F i x e d R a t e P e r i o d , t h e f i f t e e n t h ( 1 5 t h ) d a y ( w h e t h e r o r n o t a B u s i n e s s D a y ) o f t h e
m o n t h p r e c e d i n g t h e m o n t h i n w h i c h s u c h I n t e r e s t P a y m e n t D a t e o c c u r s .
T h i s B o n d i s o n e o f a d u l y a u t h o r i z e d i s s u e o f b o n d s o f t h e C o n u n i s s i o n , d e s i g n a t e d a s
" R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n , S a l e s T a x R e v e n u e B o n d s ( L i m i t e d T a x
B o n d s ) " , o f t h e s e r i e s d e s i g n a t e d a b o v e ( t h e " B o n d s " ) , a l l o f w h i c h a r e b e i n g i s s u e d p u r s u a n t t o
t h e p r o v i s i o n s o f t h e R i v e r s i d e C o u n t y T r a n s p o r t a t i o n S a l e s T a x A c t , D i v i s i o n 2 5
( S e c t i o n 2 4 0 0 0 0 e t s e q . ) o f t h e P u b l i c U t i l i t i e s C o d e o f t h e S t a t e o f C a l i f o r n i a , a s n o w i n e f f e c t
a n d a s i t m a y f r o m t i m e t o t i m e h e r e a f t e r b e a m e n d e d o r s u p p l e m e n t e d ( t h e " A c t " ) , t h e
T r a n s p o r t a t i o n E x p e n d i t u r e P l a n a n d R e t a i l T r a n s a c t i o n a n d U s e T a x O r d i n a n c e , a d o p t e d b y t h e
O H S W e s t : 2 6 0 3 7 9 5 6 5 . 9
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2 6 6
Commission on May 8, 2002 and approved by at least two-thirds of electors voting on such
proposition in the November 5, 2002 election and any amendments or extensions thereto
(collectively, and together with the Act, the "Law"), and an Indenture, dated as of June 1, 2008,
as supplemented, including as supplemented by a First Supplemental Indenture, dated as of June
1, 2008 (the "First Supplemental Indenture"), each between the Commission and the Trustee,
hereinafter referred to collectively as the "Indenture." Said authorized issue of Bonds is not
limited in aggregate principal amount and consists or may consist of one or more series of
varying denominations, dates, maturities, interest rates and other provisions, as in the Indenture
provided. Capitalized terms used herein and not otherwise defined shall have the meaning given
such terms in the Indenture.
THIS BOND IS A LIMITED TAX BOND OBLIGATION OF THE COMMISSION
PAYABLE SOLELY FROM REVENUES AS DEFINED AND PROVIDED IN THE
INDENTURE AND CERTAIN OTHER FUNDS PLEDGED UNDER THE INDENTURE
AND THE COMMISSION IS NOT OBLIGATED TO PAY THIS BOND EXCEPT FROM
REVENUES AND THOSE CERTAIN OTHER FUNDS PLEDGED UNDER THE
INDENTURE. THIS BOND DOES NOT CONSTITUTE A DEBT OR LIABILITY OF
THE STATE OF CALIFORNIA (THE "STATE") OR ANY POLITICAL SUBDIVISION
OF THE STATE OTHER THAN THE COMMISSION, OR A PLEDGE OF THE FULL
FAITH AND CREDIT OF THE STATE OR OF ANY POLITICAL SUBDIVISION OF
THE STATE. THE GENERAL FUND OF THE COMMISSION IS NOT LIABLE, AND
THE CREDIT OR TAXING POWER (OTHER THAN AS DESCRIBED HEREIN) OF
THE COMMISSION IS NOT PLEDGED, FOR THE PAYMENT OF THE BONDS,
THEIR INTEREST, OR ANY PREMIUM DUE UPON REDEMPTION OF THE BONDS.
THE BONDS ARE NOT SECURED BY A LEGAL OR EQUTTABLE PLEDGE OF, OR
CHARGE, LIEN OR ENCUMBRANCE UPON, ANY OF THE PROPERTY OF THE
COMMISSION OR ANY OF ITS INCOME OR RECEIPTS, EXCEPT THE REVENUES
AND THE CERTAIN OTHER FUNDS PLEDGED UNDER THE INDENTURE.
Reference is hereby made to the Indenture and the Law fora description of the terms on
which the Bonds are issued and to be issued, the provisions with regard to the nature and extent
of the pledge of Revenues and certain other funds and the rights of the registered Holders of the
Bonds and all the terms of the Indenture are hereby incorporated herein and constitute a contract
between the Commission and the registered Holder from time to time of this Bond, and to all the
provisions thereof the registered Holder of this Bond, by its acceptance hereof, consents and
agrees. Additional Bonds may be issued and other indebtedness may be incurred on a parity
with the Series of Bonds of which this Bond is a part, but only subject to the conditions and
limitations contained in the Indenture.
This Bond is payable as to both principal and interest, and any premium upon redemption
hereof, exclusively from the Revenues and other funds pledged under the Indenture, which
consist primarily of the amounts available for distribution to the Commission on and after July 1,
2009 on account of the retail transactions and use tax imposed in the County of Riverside
pursuant to the Law, after deducting amounts payable by the Commission to the State Board of
Equalization for costs and expenses for its services in connection with the retail transactions and
use taxes collected pursuant to the Act, and all regularly -scheduled amounts (but not termination
payments) owed or paid to the Commission by any Counterparty under any Interest Rate Swap
OHS West:260379565.9
A-2
•
267
"
A g r e e m e n t a f t e r o f f s e t f o r t h e r e g u l a r l y - s c h e d u l e d a m o u n t s ( b u t n o t t e r m i n a t i o n p a y m e n t s ) o w e d
o r p a i d b y t h e C o m m i s s i o n t o s u c h C o u n t e r p a r t y u n d e r s u c h I n t e r e s t R a t e S w a p A g r e e m e n t , a n d ,
a s t o P u r c h a s e P r i c e , f r o m t h e p r o c e e d s o f r e m a r k e t i n g t h i s B o n d a n d a n y m o n e y s m a d e
a v a i l a b l e u n d e r t h e L i q u i d i t y F a c i l i t y , i f a n y , r e l a t i n g t o t h i s B o n d ; a l l a s p r o v i d e d i n t h e
I n d e n t u r e , a n d t h e C o m m i s s i o n i s n o t o b l i g a t e d t o p a y t h e p r i n c i p a l o f a n d i n t e r e s t o n t h i s B o n d
e x c e p t f r o m R e v e n u e s a n d c e r t a i n o t h e r f u n d s p l e d g e d t h e r e u n d e r .
I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d , R a t e P e r i o d s , I n t e r e s t P a y m e n t D a t e s a n d
A u t h o r i z e d D e n o m i n a t i o n s
I n t h e m a n n e r h e r e i n a f t e r p r o v i d e d a n d s u b j e c t t o t h e p r o v i s i o n s o f t h e I n d e n t u r e , t h e
t e r m o f t h i s B o n d w i l l b e d i v i d e d i n t o c o n s e c u t i v e R a t e P e r i o d s d u r i n g e a c h o f w h i c h t h i s B o n d
s h a l l b e a r i n t e r e s t a t t h e D a i l y R a t e ( t h e " D a i l y R a t e P e r i o d " ) , t h e W e e k l y R a t e ( t h e " W e e k l y
R a t e P e r i o d " ) , t h e C o m m e r c i a l P a p e r R a t e ( t h e " C o m m e r c i a l P a p e r R a t e P e r i o d " ) , t h e L o n g -
T e r m R a t e ( t h e " L o n g - T e r m R a t e P e r i o d " ) o r t h e F i x e d R a t e ( t h e " F i x e d R a t e P e r i o d " ) . T h e
i n i t i a l R a t e P e r i o d f o r t h i s B o n d s h a l l b e a L o n g - T e r m R a t e P e r i o d a n d d u r i n g s u c h i n i t i a l R a t e
P e r i o d t h i s B o n d s h a l l b e a r i n t e r e s t a t L o n g - T e r m R a t e s . T h e s u b s e q u e n t R a t e P e r i o d ( s ) a n d
i n t e r e s t r a t e ( s ) f o r t h i s B o n d s h a l l b e d e t e r m i n e d i n a c c o r d a n c e w i t h t h e p r o v i s i o n s o f t h e
I n d e n t u r e .
T h i s B o n d s h a l l b e a r i n t e r e s t f r o m t h e l a t e s t o f : ( i ) i t s I s s u e D a t e ; ( i i ) t h e m o s t r e c e n t
I n t e r e s t P a y m e n t D a t e t o w h i c h i n t e r e s t h a s b e e n p a i d o r d u l y p r o v i d e d f o r , o r ( i i i ) i f t h e d a t e o f
a u t h e n t i c a t i o n o f t h i s B o n d i s a f t e r a R e c o r d D a t e b u t p r i o r t o t h e i m m e d i a t e l y s u c c e e d i n g
I n t e r e s t P a y m e n t D a t e , t h e I n t e r e s t P a y m e n t D a t e i m m e d i a t e l y s u c c e e d i n g s u c h d a t e o f
a u t h e n t i c a t i o n . D u r i n g D a i l y R a t e P e r i o d s , W e e k l y R a t e P e r i o d s o r C o m m e r c i a l P a p e r R a t e
P e r i o d s , i n t e r e s t o n t h i s B o n d s h a l l b e c o m p u t e d o n t h e b a s i s o f a 3 6 5 - o r 3 6 6 - d a y y e a r f o r t h e
n u m b e r o f d a y s a c t u a l l y e l a p s e d . W h i l e t h i s B o n d i s i n a L o n g - T e r m R a t e P e r i o d o r t h e F i x e d
R a t e P e r i o d , i n t e r e s t o n t h i s B o n d s h a l l b e c o m p u t e d u p o n t h e b a s i s o f a 3 6 0 - d a y y e a r , c o n s i s t i n g
o f t w e l v e 3 0 - d a y m o n t h s . T h e t e r m " I n t e r e s t P a y m e n t D a t e " m e a n s : ( i ) w i t h r e s p e c t t o a n y
D a i l y o r W e e k l y R a t e P e r i o d , t h e f i r s t B u s i n e s s D a y o f e a c h c a l e n d a r m o n t h ; ( i i ) w i t h r e s p e c t t o
a n y C o m m e r c i a l P a p e r R a t e P e r i o d , t h e d a y i m m e d i a t e l y s u c c e e d i n g t h e l a s t d a y o f t h e
C o m m e r c i a l P a p e r R a t e P e r i o d a p p l i c a b l e t o t h i s B o n d ; ( i i i ) w i t h r e s p e c t t o a L o n g - T e r m R a t e
P e r i o d , e a c h J u n e I a n d D e c e m b e r 1 o c c u r r i n g d u r i n g s u c h L o n g - T e r m R a t e P e r i o d ; ( i v ) w i t h
r e s p e c t t o a F i x e d R a t e P e r i o d , e a c h J u n e I a n d D e c e m b e r I f r o m t h e F i x e d R a t e C o n v e r s i o n
D a t e t o t h e m a t u r i t y o r e a r l i e r r e d e m p t i o n o f t h i s B o n d ; a n d ( v ) a n d i n a l l e v e n t s t h e f m a l
m a t u r i t y d a t e o r r e d e m p t i o n d a t e o f t h i s B o n d , o r a n y d a t e o n w h i c h , p u r s u a n t t o t h e t e r m s o f t h e
I n d e n t u r e , t h e B o n d i s s u b j e c t t o r e d e m p t i o n a t t h e o p t i o n o f t h e C o m m i s s i o n .
P u r s u a n t t o t h e h i d e n t u r e , a t a n y o n e t i m e , e a c h B o n d s h a l l h a v e t h e s a m e I n t e r e s t R a t e
D e t e r m i n a t i o n M e t h o d a n d s h a l l b e a r i n t e r e s t a t t h e s a m e r a t e , e x c e p t f o r B o n d s d u r i n g a
C o m m e r c i a l P a p e r R a t e P e r i o d a n d B o n d s o f d i f f e r e n t m a t u r i t i e s b e a r i n g i n t e r e s t a t a F i x e d R a t e .
A t t h e t i m e s a n d s u b j e c t t o t h e c o n d i t i o n s s e t f o r t h i n t h e I n d e n t u r e , t h e C o m m i s s i o n m a y e l e c t
t h a t t h e B o n d s s h a l l b e a r i n t e r e s t b a s e d o n a n I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d a n d f o r a R a t e
P e r i o d , d i f f e r e n t f r o m t h e I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d o r R a t e P e r i o d t h e n a p p l i c a b l e .
N o t i c e o f a n y a d j u s t m e n t o f t h e I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d o r R a t e P e r i o d s h a l l b e
g i v e n b y t h e T r u s t e e t o t h e H o l d e r o f t h i s B o n d a s s e t f o r t h i n t h e I n d e n t u r e .
O H S W e s t 2 6 0 3 7 9 5 6 5 . 9
A - 3
2 6 8
During each Daily Rate Period, this Bond shall bear interest at the Daily Rate, determined
by the Remarketing Agent on each Business Day.
During each Weekly Rate Period, this Bond shall bear interest at the Weekly Rate,
determined by the Remarketing Agent by 5:00 p.m., New York City time on each Wednesday (or
the immediately succeeding Business Day, if such Wednesday is not a Business Day) for the
next Calendar Week, provided that the Weekly Rate for the first Calendar Week (or portion
thereof) following a Conversion Date resulting in a change in the Interest Rate Determination
Method to a Weekly Rate shall be set by the Remarketing Agent on the Business Day
immediately preceding such Conversion Date.
During each Commercial Paper Rate Period, this Bond shall bear interest at the
Commercial Paper Rate or rates applicable to this Bond. The Remarketing Agent shall select the
Commercial Paper Rate Period or Periods for each Bond on a Business Day selected by the
Remarketing Agent not more than five (5) Business Days prior to the first day of such
Commercial Paper Rate Period and not later than 12:30 p.m., New York City time, on the first
day of such Commercial Paper Rate Period. Each Commercial Paper Rate Period shall be a
period of not less than one nor more than 270 days.
During the Fixed Rate Period, this Bond shall bear interest at the Fixed Rate, determined
by the Remarketing Agent on the Fixed Rate Computation Date in accordance with the
provisions of the Indenture, and shall not be subject to Conversion to another Interest Rate
Determination Method.
During a Long -Term Rate Period, this Bond shall bear interest at the Long -Term Rate
determined by the Remarketing Agent by 5:00 p.m. on the Long -Term Rate Computation Date.
The Commission shall select the duration of each Long -Term Rate Period and each Long -Term
Rate Period shall end on the date selected by the Commission, which date is a minimum of 180
days after commencement of such Long -Term Rate Period, but in no event later than the
maturity date of this Bond.
This Bond shall initially bear interest at a Long -Tenn Rate of percent ( %) per
annum with a Long -Term Rate Period ending December 1, 2009, and the initial Interest Payment
Date shall be December 1, 2008. On December 1, 2009, this Bond shall be subject to mandatory
purchase and conversion to another Interest Rate Determination Method. Prior to December 1,
2009, this Bond shall not be subject to conversion to another Interest Rate Determination
Method. This Bond shall not be subject to redemption until the end of the initial Long -Term
Rate Period, December 1, 2009.
In no event shall the interest rate on this Bond be greater than the Maximum Interest
Rate.
This Bond shall be deliverable in the form of a fully registered Bond in the following
denominations: (a) during any Daily Rate Period, Weekly Rate Period or Commercial Paper
Rate Period, $100,000 and any integral multiple of $5,000 in excess thereof; and (b) during a
Long -Term Rate Period or the Fixed Rate Period, $5,000 and any multiple thereof (such
denominations being referred to herein as "Authorized Denominations").
OHS West:260379565.9
A-4
269
"
O p t i o n a l a n d M a n d a t o r y T e n d e r P r o v i s i o n s
" P u r c h a s e D a t e " m e a n s a n y d a t e o n w h i c h t h i s B o n d i s p u r c h a s e d p u r s u a n t t o t h e
p r o v i s i o n s o f t h e I n d e n t u r e .
" P u r c h a s e P r i c e " m e a n s a n a m o u n t e q u a l t o 1 0 0 % o f t h e p r i n c i p a l a m o u n t o f t h i s B o n d
( o r t h e p o r t i o n h e r e o f ) t e n d e r e d o r d e e m e d t e n d e r e d t o t h e T r u s t e e f o r p u r c h a s e p u r s u a n t t o t h e
I n d e n t u r e , p l u s i f s u c h P u r c h a s e D a t e i s n o t a n I n t e r e s t P a y m e n t D a t e , a c c r u e d i n t e r e s t t o b u t n o t
i n c l u d i n g t h e P u r c h a s e D a t e ; p r o v i d e d , h o w e v e r , i f t h e P u r c h a s e D a t e o c c u r s b e f o r e a n I n t e r e s t
P a y m e n t D a t e , b u t a f t e r t h e R e c o r d D a t e a p p l i c a b l e t o s u c h I n t e r e s t P a y m e n t D a t e , t h e n t h e
P u r c h a s e P r i c e s h a l l n o t i n c l u d e a c c r u e d i n t e r e s t , w h i c h s h a l l b e p a i d t o t h e H o l d e r o n t h e
a p p l i c a b l e R e c o r d D a t e .
T h i s B o n d s h a l l b e s u b j e c t t o m a n d a t o r y t e n d e r f o r p u r c h a s e a t t h e a p p l i c a b l e P u r c h a s e
P r i c e : ( a ) o n t h e C o n v e r s i o n D a t e f o r t h e B o n d s t o a n e w I n t e r e s t R a t e D e t e r m i n a t i o n M e t h o d
s p e c i f i e d i n a C o n v e r s i o n N o t i c e ; ( b ) i f t h i s B o n d i s b e a r i n g i n t e r e s t a t a D a i l y R a t e , a W e e k l y
R a t e o r a C o m m e r c i a l P a p e r R a t e , ( 1 ) o n t h e f i f t h ( 5 t h ) B u s i n e s s D a y p r e c e d i n g ( A ) t h e
s c h e d u l e d E x p i r a t i o n o f a 2 0 0 8 L i q u i d i t y F a c i l i t y o r ( B ) t h e T e r m i n a t i o n o f a 2 0 0 8 L i q u i d i t y
F a c i l i t y , a t t h e e l e c t i o n o f t h e C o m m i s s i o n a s p e r m i t t e d b y s u c h 2 0 0 8 L i q u i d i t y F a c i l i t y ; a n d ( 2 )
o n t h e d a t e o f t h e p r o v i s i o n o f a n A l t e r n a t e L i q u i d i t y F a c i l i t y f o r t h i s B o n d a n d t h e r e s u l t a n t
T e r m i n a t i o n o f t h e e x i s t i n g 2 0 0 8 L i q u i d i t y F a c i l i t y ; p r o v i d e d , h o w e v e r , t h a t , n o t w i t h s t a n d i n g
a n y o t h e r p r o v i s i o n o f t h e I n d e n t u r e t o t h e c o n t r a r y , n o m a n d a t o r y t e n d e r f o r p u r c h a s e s h a l l b e
r e q u i r e d a s d e s c r i b e d i n t h i s c l a u s e ( b ) ( 2 ) i f a R a t i n g C o n f i r m a t i o n s h a l l b e d e l i v e r e d b y e a c h
R a t i n g A g e n c y t h e n r a t i n g t h i s B o n d o n t h e d a t e o f t h e p r o v i s i o n o f t h e A l t e r n a t e L i q u i d i t y
F a c i l i t y a n d t h e r e s u l t a n t T e r m i n a t i o n o f t h e e x i s t i n g 2 0 0 8 L i q u i d i t y F a c i l i t y ; ( c ) i f t h i s B o n d i s
b e a r i n g i n t e r e s t a t a C o m m e r c i a l P a p e r R a t e , o n t h e I n t e r e s t P a y m e n t D a t e i m m e d i a t e l y
f o l l o w i n g e a c h C o m m e r c i a l P a p e r R a t e P e r i o d ; ( d ) i f t h i s B o n d i s b e a r i n g i n t e r e s t a t a L o n g -
T e r m R a t e , o n t h e I n t e r e s t P a y m e n t D a t e i m m e d i a t e l y f o l l o w i n g e a c h L o n g - T e r m R a t e P e r i o d ;
( e ) i f t h i s B o n d i s b e a r i n g i n t e r e s t a t a W e e k l y R a t e o r a D a i l y R a t e , o n a n y B u s i n e s s D a y ; a n d
( f ) i f t h i s B o n d i s b e a r i n g i n t e r e s t a t a D a i l y R a t e , a W e e k l y R a t e o r a C o m m e r c i a l P a p e r R a t e ,
a n d i f t h e T r u s t e e h a s r e c e i v e d w r i t t e n n o t i c e f r o m t h e 2 0 0 8 L i q u i d i t y P r o v i d e r t h a t a n e v e n t o f
d e f a u l t o r e v e n t o f T e r m i n a t i o n h a s o c c u r r e d u n d e r t h e 2 0 0 8 L i q u i d i t y F a c i l i t y w i t h t h e e f f e c t
t h a t t h e o b l i g a t i o n s o f t h e 2 0 0 8 L i q u i d i t y P r o v i d e r t o p u r c h a s e t h i s B o n d o r o t h e r w i s e p r o v i d e
f o r t h e P u r c h a s e P r i c e o f t h i s B o n d s h a l l t e r m i n a t e o n t h e d a t e s p e c i f i e d i n s u c h n o t i c e , o n a
B u s i n e s s D a y s e l e c t e d b y t h e T r u s t e e i n a c c o r d a n c e w i t h t h e I n d e n t u r e .
D u r i n g a n y D a i l y R a t e P e r i o d o r W e e k l y R a t e P e r i o d , t h i s B o n d o r a n y p o r t i o n h e r e o f
s h a l l b e s u b j e c t t o t e n d e r a t t h e o p t i o n o f t h e H o l d e r o r B e n e f i c i a l O w n e r o f t h i s B o n d , a s
s p e c i f i e d i n t h e I n d e n t u r e .
I f t h i s B o n d i s r e g i s t e r e d i n b o o k - e n t r y f o r m w i t h a S e c u r i t i e s D e p o s i t o r y , d e l i v e r y o f t h i s
B o n d t o t h e T r u s t e e i n c o n n e c t i o n w i t h a n y o p t i o n a l o r m a n d a t o r y t e n d e r f o r p u r c h a s e s h a l l b e
e f f e c t e d b y t h e m a k i n g o f , o r t h e i r r e v o c a b l e a u t h o r i z a t i o n t o m a k e , a p p r o p r i a t e e n t r i e s o n t h e
b o o k s o f t h e S e c u r i t i e s D e p o s i t o r y f o r t h i s B o n d o r a n y P a r t i c i p a n t o f s u c h S e c u r i t i e s D e p o s i t o r y
t o r e f l e c t t h e t r a n s f e r o f t h e b e n e f i c i a l o w n e r s h i p i n t e r e s t i n s u c h B o n d t o t h e a c c o u n t o f t h e
T r u s t e e , o r t o t h e a c c o u n t o f a P a r t i c i p a n t o f s u c h S e c u r i t i e s D e p o s i t o r y a c t i n g o n b e h a l f o f t h e
T r u s t e e . W i t h r e s p e c t t o a n y B o n d t h a t i s n o t r e g i s t e r e d i n b o o k - e n t r y f o r m w i t h a S e c u r i t i e s
O H S W e s t : 2 6 0 3 7 9 5 6 5 . 9
A - 5
2 7 0
Depository, delivery of such Bond to the Trustee in connection with any optional or mandatory
tender for purchase shall be effected by physical delivery of such Bond to the Trustee at its
Principal Office, by 1:00 p.m. (New York City time) on the Purchase Date, accompanied by an
instrument of transfer thereof, in a form satisfactory to the Trustee, executed in blank by the
Holder thereof with the signature of such Holder guaranteed in accordance with the guidelines
set forth by one of the nationally recognized medallion signature programs.
If moneys sufficient to pay the Purchase Price of Bonds to be purchased pursuant to an
optional or mandatory tender shall be held by the Trustee on the applicable Purchase Date, such
Bonds shall be deemed to have been purchased for all purposes of the Indenture, irrespective of
whether or not such Bonds shall have been delivered to the Trustee or transferred on the books of
a Securities Depository for such Bonds, and neither the former Holder or Beneficial Owner of
such Bonds nor any other person shall have any claim thereon, under the Indenture or otherwise,
for any amount other than the Purchase Price thereof.
Optional and Mandatory Redemption Provisions
While bearing interest at a Daily Rate or a Weekly Rate, this Bond shall be subject to
redemption prior to its stated maturity, at the option of the Commission, in whole or in part, in
Authorized Denominations, on any date, at a redemption price equal to the principal amount
thereof, plus accrued interest, if any, without premium.
While bearing interest at a Commercial Paper Rate, this Bond shall be subject to optional
redemption, at the option of the Commission, in whole or in part, on the day following the end of
any Commercial Paper Rate Period, at a redemption price equal to the principal amount thereof,
plus accrued interest, if any, without premium.
While bearing interest at a Long -Term Rate, this Bond shall be subject to redemption, at
the option of the Commission, in whole or in part, on the day following the last day of any Long -
Term Rate Period and on such other dates specified in the Conversion Notice with respect to
such Long -Term Rate Period, delivered with a Favorable Opinion of Bond Counsel, at a
redemption price equal to the principal amount thereof, plus accrued interest, if any, without
premium.
Unless the Commission obtains a Favorable Opinion of Bond Counsel and changes
redemption provisions as provided in the Indenture, any Bonds bearing interest at a Fixed Rate
are subject to redemption in whole or in part (and if in part, in such order of maturity and
Mandatory Sinking Account Payment dates as the Commission shall specify and, within a
maturity of Mandatory Sinking Account Payment date, by lot or by such other method as the
Trustee determines to be fair and reasonable and in Authorized Denominations), at the option of
the Commission, on the dates and at such redemption prices as provided in the Indenture.
Except as otherwise provided in the Indenture, the Bonds are Term Bonds and shall be
subject to mandatory redemption prior to their stated maturity, in part, from Mandatory Sinking
Account Payments required by and as specified in the Indenture, at a redemption price equal to
the principal amount thereof, plus accrued interest to the redemption date, without premium, on
[June 1, 20 and on each June 1 thereafter.
OHS West:260379565.9
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"
"
"
M a n d a t o r y T e n d e r a n d P u r c h a s e a t D i r e c t i o n o f C o m m i s s i o n
O n e a c h d a t e o n w h i c h t h i s B o n d i s s u b j e c t t o r e d e m p t i o n a t t h e o p t i o n o f t h e
C o m m i s s i o n , t h i s B o n d i s a l s o s u b j e c t t o m a n d a t o r y t e n d e r f o r p u r c h a s e b y t h e C o m m i s s i o n , i n
w h o l e o r i n p a r t , a t a p u r c h a s e p r i c e e q u a l t o t h e a m o u n t t h a t w o u l d b e p a y a b l e u p o n t h e
r e d e m p t i o n o f t h i s B o n d a t t h e o p t i o n o f t h e C o m m i s s i o n o n s u c h d a t e . N o t i c e o f s u c h
m a n d a t o r y t e n d e r f o r p u r c h a s e s h a l l b e g i v e n b y m a i l n o t m o r e t h a n 9 0 d a y s n o r l e s s t h a n 1 0
d a y s b e f o r e t h e d a t e o f p u r c h a s e ( t h e " O p t i o n a l P u r c h a s e D a t e " ) . S u c h n o t i c e m a y b e
c o n d i t i o n a l a n d i f c o n d i t i o n a l n o t i c e i s g i v e n a n d t h e T r u s t e e d o e s n o t h a v e s u f f i c i e n t f u n d s
a v a i l a b l e o n t h e O p t i o n a l P u r c h a s e D a t e t o p a y t h e p u r c h a s e p r i c e o f t h e B o n d s ( t h e " O p t i o n a l
P u r c h a s e P r i c e ' ) s u b j e c t t o m a n d a t o r y t e n d e r f o r p u r c h a s e o n s u c h O p t i o n a l P u r c h a s e D a t e , t h e n
s u c h p u r c h a s e s h a l l b e c a n c e l l e d a n d t h e C o m m i s s i o n s h a l l b e u n d e r n o o b l i g a t i o n t o p u r c h a s e
t h i s B o n d . I f m o n e y s s u f f i c i e n t t o p a y t h e O p t i o n a l P u r c h a s e P r i c e o f t h e B o n d s s u b j e c t t o
m a n d a t o r y t e n d e r f o r p u r c h a s e a r e h e l d b y t h e T r u s t e e o n t h e O p t i o n a l P u r c h a s e D a t e , a l l B o n d s
s u b j e c t t o m a n d a t o r y t e n d e r f o r p u r c h a s e o n s u c h O p t i o n a l P u r c h a s e D a t e s h a l l b e d e e m e d
p u r c h a s e d b y t h e C o m m i s s i o n a n d n e i t h e r t h e f o r m e r H o l d e r o r f o r m e r B e n e f i c i a l O w n e r o f t h i s
B o n d n o r a n y o t h e r p e r s o n s h a l l h a v e a n y c l a i m t h e r e u n d e r , u n d e r t h e I n d e n t u r e o r o t h e r w i s e , f o r
a n y a m o u n t o t h e r t h a n t h e O p t i o n a l P u r c h a s e P r i c e .
A m e n d m e n t s a n d M o d i f i c a t i o n s
T h e r i g h t s a n d o b l i g a t i o n s o f t h e C o m m i s s i o n a n d o f t h e B e n e f i c i a l O w n e r s , r e g i s t e r e d
H o l d e r s a n d r e g i s t e r e d O w n e r s o f t h e B o n d s m a y b e m o d i f i e d o r a m e n d e d a t a n y t i m e i n t h e
m a n n e r , t o t h e e x t e n t , a n d u p o n t h e t e r m s p r o v i d e d i n t h e I n d e n t u r e , w h i c h p r o v i d e , i n c e r t a i n
c i r c u m s t a n c e s , f o r m o d i f i c a t i o n s a n d a m e n d m e n t s w i t h o u t t h e c o n s e n t o f o r n o t i c e t o t h e
r e g i s t e r e d H o l d e r s o f B o n d s .
T r a n s f e r a n d E x c h a n g e P r o v i s i o n s
T h i s B o n d i s t r a n s f e r a b l e o r e x c h a n g e a b l e a s p r o v i d e d i n t h e I n d e n t u r e , o n l y u p o n t h e
b o n d r e g i s t r a t i o n b o o k s m a i n t a i n e d b y t h e T r u s t e e , b y t h e r e g i s t e r e d H o l d e r h e r e o f , o r b y h i s o r
h e r d u l y a u t h o r i z e d a t t o r n e y , u p o n s u r r e n d e r o f t h i s B o n d a t t h e P r i n c i p a l O f f i c e o f t h e T r u s t e e ,
t o g e t h e r w i t h a w r i t t e n i n s t r u m e n t o f t r a n s f e r s a t i s f a c t o r y t o t h e T r u s t e e d u l y e x e c u t e d b y t h e
r e g i s t e r e d H o l d e r o r h i s o r h e r d u l y a u t h o r i z e d a t t o r n e y , a n d t h e r e u p o n a n e w B o n d o r B o n d s o f
t h e s a m e s e r i e s , m a t u r i t y a n d i n t h e s a m e a g g r e g a t e p r i n c i p a l a m o u n t , s h a l l b e i s s u e d t o t h e
t r a n s f e r e e i n e x c h a n g e t h e r e f o r a s p r o v i d e d i n t h e I n d e n t u r e , u p o n p a y m e n t o f a n y c h a r g e s
t h e r e i n p r e s c r i b e d .
P e r s o n s D e e m e d H o l d e r s
T h e p e r s o n i n w h o s e n a m e t h i s B o n d i s r e g i s t e r e d s h a l l b e d e e m e d a n d r e g a r d e d a s t h e
a b s o l u t e H o l d e r h e r e o f f o r a l l p u r p o s e s , i n c l u d i n g r e c e i v i n g p a y m e n t o f , o r o n a c c o u n t o f , t h e
p r i n c i p a l , P u r c h a s e P r i c e o r O p t i o n a l P u r c h a s e P r i c e h e r e o f a n d a n y r e d e m p t i o n p r e m i u m a n d
i n t e r e s t d u e h e r e o n .
I t i s h e r e b y c e r t i f i e d a n d r e c i t e d t h a t a n y a n d a l l a c t s , c o n d i t i o n s a n d t h i n g s r e q u i r e d t o
e x i s t , t o h a p p e n a n d t o b e p e r f o r m e d , p r e c e d e n t t o a n d i n t h e i n c u r r i n g o f t h e i n d e b t e d n e s s
e v i d e n c e d b y t h i s B o n d , a n d i n t h e i s s u i n g o f t h i s B o n d , e x i s t , h a v e h a p p e n e d a n d h a v e b e e n
O H S W e s t : 2 6 0 3 7 9 5 6 5 . 9
A - 7
2 7 2
performed in due time, form and manner, as required by the Constitution and statutes of the State
of Califomia and the Act, and that this Bond, together with all other indebtedness of the
Commission payable out of Revenue, is within every debt and other limit prescribed by the
Constitution and statutes of the State of Califomia and the Act.
This Bond shall not be entitled to any benefit under the Indenture, or become valid or
obligatory for any purpose, until the certificate of authentication hereon endorsed shall have been
manually signed by the Trustee.
OHS West:260379565.9
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"
I N W I T N E S S W H E R E O F t h e R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n h a s c a u s e d
t h i s B o n d t o b e e x e c u t e d i n i t s n a m e a n d o n i t s b e h a l f b y t h e m a n u a l o r f a c s i m i l e s i g n a t u r e o f i t s
d u l y a u t h o r i z e d r e p r e s e n t a t i v e s a l l a s o f t h e I s s u e D a t e s e t f o r t h a b o v e .
R I V E R S I D E C O U N T Y
T R A N S P O R T A T I O N C O M M I S S I O N
B y :
C h a i r o f t h e B o a r d o f C o m m i s s i o n e r s
( S e a l )
A t t e s t :
C h i e f F i n a n c i a l O f f i c e r
[ F O R M O F C E R T I F I C A T E O F A U T H E N T I C A T I O N ]
T h i s B o n d i s o n e o f t h e 2 0 0 8 S e r i e s [ ] B o n d s d e s c r i b e d i n t h e w i t h i n m e n t i o n e d
I n d e n t u r e a n d w a s a u t h e n t i c a t e d o n t h e d a t e s e t f o r t h b e l o w .
D a t e o f A u t h e n t i c a t i o n :
O H S W e s t : 2 6 0 3 7 9 5 6 5 . 9
U . S . B A N K N A T I O N A L A S S O C I A T I O N , a s
T r u s t e e
B y :
A u t h o r i z e d O f f i c e r
A - 9
2 7 4
[DTC LEGEND]
Unless this Bond is presented by an authorized representative of The Depository Trust
Company to the issuer or its agent for registration of transfer, exchange or payment, and any
Bond issued is registered in the name of Cede & Co. or such other name as requested by an
- authorized representative of The Depository Trust Company and any payment is made to Cede &
Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL since the registered Owner hereof, Cede & Co., has
an interest herein.
[FORM OF ASSIGNMENT]
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
(Please Print or Type Name and Address of Assignee)
PLEASE INSERT SOCIAL SECURITY OR OTHER
TAX IDENTIFICATION NUMBER OF ASSIGNEE
the within bond and all rights thereunder, and hereby irrevocably constitutes and appoint
to transfer the within Bond on the books kept for registration thereof with full power of
substitution in the premises.
Dated:
Signature:
(Signature of Assignor)
Notice: The signature on this assignment must
correspond with the name of the registered Holder
as it appears upon the face of the within Bond in
every particular without alteration or enlargement or
any change whatsoever.
SIGNATURE GUARANTEED:
Notice: Signature must be guaranteed by an
eligible guarantor firm.
OHS West:260379565.9
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"
I N D E X T O E X H I B I T S
E X H I B I T B
N O T I C E A D D R E S S E S
T o t h e C o m m i s s i o n :
R i v e r s i d e C o u n t y T r a n s p o r t a t i o n
C o m m i s s i o n
P . O . B o x 1 2 0 0 8
R i v e r s i d e , C a l i f o r n i a 9 2 5 0 2
A t t e n t i o n : C h i e f F i n a n c i a l O f f i c e r
T e l e p h o n e : ( 9 5 1 ) 7 8 7 - 7 1 4 1
F a x : ( 9 5 1 ) 7 8 7 - 7 9 2 0
T o t h e T r u s t e e :
U . S . B a n k N a t i o n a l A s s o c i a t i o n
6 3 3 W e s t F i f t h S t r e e t , 2 4 t h F l o o r
L o s A n g e l e s , C a l i f o r n i a 9 0 0 7 1
A t t e n t i o n : C o r p o r a t e T r u s t D i v i s i o n
T e l e p h o n e : ( 2 1 3 ) 6 1 5 - 6 0 2 3
F a x : ( 2 1 3 ) 6 1 5 - 6 1 9 7
T o t h e R a t i n g A g e n c i e s :
S t a n d a r d & P o o r ' s R a t i n g s S e r v i c e s
5 5 W a t e r S t r e e t , 3 8 t h F l o o r
N e w Y o r k , N e w Y o r k 1 0 0 4 1
T e l e p h o n e N o . : 2 1 2 - 4 3 8 - 2 0 0 0
F a c s i m i l e N o . : 2 1 2 - 4 3 8 - 2 1 5 7
p u b f i n _ _ s t u c t u r e d @ s t a n d a r d a n d p o o r s . c o m
M o o d y ' s I n v e s t o r s S e r v i c e
M S P G S u r v e i l l a n c e
9 9 C h u r c h S t r e e t , 9 ` s F l o o r
N e w Y o r k , N e w Y o r k 1 0 0 0 7
F i t c h R a t i n g s
O n e S t a t e S t r e e t P l a z a
N e w Y o r k , N e w Y o r k 1 0 0 0 4
O H S W e c t : 2 6 0 3 7 9 5 6 5 9
B - 1
2 7 6
l
|
ATTACHMENT 6
Stradling Yocca Carlson & Rauth
Draft of 5/01/08
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
SALES TAX REVENUE BONDS
(Limited Tax Bonds)
2008 Series A
BOND PURCHASE AGREEMENT
, 2008
Riverside County Transportation Commission
P.O. Box 12008
Riverside, California 92501
Ladies and Gentlemen:
The undersigned, Lehman Brothers, as representative (the "Representative"), acting on behalf
of itself and Banc of America Securities LLC (the Representative and such other underwriter being
hereinafter referred to as the "Underwriters") offer to enter into this Purchase Agreement (the
"Purchase Agreement") with the Riverside County Transportation Commission (the "Commission"),
for the purchase by the Underwriters of the Sales Tax Revenue Bonds (Limited Tax Bonds), 2008
Series A (the "Bonds") to be issued by the Commission and authenticated by U.S. Bank National
Association, a national banking association, Los Angeles, California, as trustee (the "Trustee") under
that certain Indenture dated as of June 1, 2008 between the Commission and the Trustee (the
"Original Indenture"), as supplemented by the First Supplemental Indenture dated June 1, 2008
between the Commission and the Trustee (the "First Supplemental Indenture"). The Original
Indenture and the First Supplemental Indenture are collectively referred to herein as the "Indenture."
The offer made hereby is subject to its written acceptance by the Commission, and delivery of an
executed counterpart of this Purchase Agreement to us at or before 11:59 p.m., Pacific Daylight
Savings Time, on the date hereof, and, if not so accepted, will be subject to withdrawal by the
Underwriters upon notice from the Representative delivered to the Commission's Executive Director
at any time before acceptance. Upon acceptance, this Purchase Agreement shall be in full force and
effect in accordance with its terms and shall be binding upon the Commission and the Underwriters.
All capitalized terms used herein and not otherwise defined shall have the meanings given to such
terms in the Indenture.
The proceeds of the Bonds will be used (i) to refinance all or a portion of the Commission's
outstanding Commercial Paper Notes (Limited Tax Bonds) Series A and Series B, (ii) to fund
capitalized interest on the Bonds, (iii) to fund a reserve fund for the Bonds, and (iv) to pay cost of the
issuance of the Bonds.
The Commission will undertake, pursuant to the Indenture and a Continuing Disclosure
Agreement with the Trustee dated as of the Closing Date (the "Continuing Disclosure Agreement"),
to provide certain annual financial information and notices of the occurrence of certain events, if
material. There has been no material default by the Commission in compliance with the
requirements of any prior continuing disclosure undertaking. A description of this undertaking is set
forth in the Preliminary Official Statement and will also be set forth in the Final Official Statement.
1
DOC SOC/ 1274212v4/022584-00I 5
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1. On the basis of the representations, warranties and covenants and upon the terms and
conditions set forth in this Purchase Agreement the Underwriters hereby agree, jointly and severally,
to purchase and the Commission hereby agrees to issue and cause the Trustee to authenticate and
deliver to the Underwriters all (but not less than all) of the Bonds in the aggregate principal amount
of $ . The Bonds shall be dated , 2008, shall initially be in a Long -Term
Rate Period at a rate of _% per annum with such Long -Term Rate Period ending on December 1,
2009 and shall mature June 1, 2029. The Underwriters agree to purchase the Bonds at the aggregate
purchase .price of $ (consisting of the aggregate principal amount of the Bonds of
less Underwriters' discount and plus $ original issue premium).
The Bonds shall be substantially in the form described herein, and shall be issued and secured under
the provisions of and shall be payable and subject to redemption as provided in the Indenture.
The Bonds shall be special limited obligations of the Commission payable from Revenues.
The Sales Tax Revenues of the Commission are pledged to the payment of the principal of, interest
and premium, if any, on the Bonds as provided in the Indenture.
2. The Underwriters have heretofore designated the undersigned as their representative.
The undersigned represents that it has been duly authorized by the Underwriters to execute this
Purchase Agreement. The Underwriters agree to make an initial public offering of all of the Bonds,
at prices not in excess of the initial public offering yields or prices set forth on the cover page of the
Official Statement. Subsequentto the initial public offering, the Underwriters reserve the right to
change the public offering prices (or yields) as they deem necessary in connection with the marketing
of the Bonds, provided that the Underwriters shall not change the initial interest rate on the Bonds.
The Bonds may be offered and sold to certain dealers at prices lower than such initial public offering
prices.
3. The Commission has delivered or caused to be delivered to the Underwriters prior to
the execution of this Purchase Agreement, copies of the Preliminary Official Statement dated.
, 2008 relating to the Bonds (the "Preliminary Official Statement"). The Commission
ratifies, confirms and approves the use and distribution by the Underwriters of the Preliminary
Official Statement, in connection with the sale of the Bonds. The Commission deems such
Preliminary Official Statement final as of its date for purposes of Rule 15c2-12 under the Securities
Exchange Act of 1934 ("Rule 15c2-12") except for information allowed to be omitted by
Rule 15c2-12. Within seven (7) business days from the date hereof and in any event not less than
three days prior to the date of Closing (as defined below), the Commission shall deliver to the
Underwriters a final Official Statement, executed on behalf of the Commission by an authorized
representative of the Commission and dated the date hereof, which shall include information
permitted to be omitted by paragraph (b)(1) of Rule 15c2-12 and with such other amendments or
supplements as shall have been approved by the Commission and the Underwriters and such
additional conformed copies thereof as the Underwriters may reasonably request in sufficient
quantities to comply with Rule 15c2-12 and to meet potential customer requests for copies of the
Official Statement. The Official Statement, including the cover page, the appendices thereto and all
information incorporated therein by reference is hereinafter referred collectively to as the "Official
Statement."
The Representative agrees to (1) provide the Commission with fmal pricing information on
the Bonds on a timely basis, (2) disseminate to the Underwriters copies of the final Official
Statement, including any supplements prepared by the Commission, (3) promptly file a copy of the
final Official Statement, including any supplements prepared by the Commission, with a nationally
2
DOCSOC/ 1274212v4/02 2584-0015
278
"
r e c o g n i z e d m u n i c i p a l s e c u r i t i e s i n f o r m a t i o n r e p o s i t o r y , a n d ( 4 ) t a k e a n y a n d a l l o t h e r a c t i o n s
n e c e s s a r y t o c o m p l y w i t h a p p l i c a b l e S e c u r i t i e s a n d E x c h a n g e C o m m i s s i o n r u l e s a n d M u n i c i p a l
S e c u r i t i e s R u l e m a k i n g B o a r d r u l e s g o v e r n i n g t h e o f f e r i n g , s a l e a n d d e l i v e r y o f t h e B o n d s t o t h e
u l t i m a t e p u r c h a s e r s t h e r e o f .
4 . T h e C l o s i n g . A t 8 : 0 0 o ' c l o c k a . m . , C a l i f o r n i a t i m e , o n , 2 0 0 8 , o r a t s u c h
o t h e r t i m e o r o n s u c h o t h e r d a t e a s t h e C o m m i s s i o n a n d t h e R e p r e s e n t a t i v e m a y a g r e e ( t h e " C l o s i n g
D a t e " ) , t h e C o m m i s s i o n s h a l l d e l i v e r o r c a u s e d t o b e d e l i v e r e d B o n d s i n b o o k - e n t r y f o r m t h r o u g h t h e
f a c i l i t i e s o f D T C ( d e l i v e r e d t h r o u g h t h e T r u s t e e v i a t h e F : A . S . T . d e l i v e r y b o o k - e n t r y s y s t e m o f D T C )
o n b e h a l f o f t h e U n d e r w r i t e r s . C o n c u r r e n t l y w i t h t h e d e l i v e r y o f t h e B o n d s t o t h e U n d e r w r i t e r s , t h e
C o m m i s s i o n w i l l d e l i v e r t h e d o c u m e n t s h e r e i n a f t e r m e n t i o n e d a t t h e o f f i c e s o f O r r i c k , H e r r i n g t o n &
S u t c l i f f e L L P , L o s A n g e l e s , C a l i f o r n i a ( " B o n d C o u n s e l " ) o r a n o t h e r p l a c e t o b e m u t u a l l y a g r e e d
u p o n b y t h e C o m m i s s i o n a n d t h e R e p r e s e n t a t i v e . T h e R e p r e s e n t a t i v e , a c t i n g o n b e h a l f o f t h e
U n d e r w r i t e r s , w i l l a c c e p t s u c h d e l i v e r y a n d p a y t h e a g g r e g a t e p u r c h a s e p r i c e s e t f o r t h i n p a r a g r a p h 1
h e r e o f , i n i m m e d i a t e l y a v a i l a b l e f u n d s t o o r o n t h e o r d e r o f t h e C o m m i s s i o n . T h i s p a y m e n t f o r a n d
d e l i v e r y o f t h e B o n d s , t o g e t h e r w i t h t h e d e l i v e r y o f t h e a f o r e m e n t i o n e d d o c u m e n t s , i s h e r e i n c a l l e d
t h e " C l o s i n g " .
T h e C o m m i s s i o n r e p r e s e n t s , w a r r a n t s a n d c o v e n a n t s t o t h e U n d e r w r i t e r s ( a n d i t s h a l l b e a
c o n d i t i o n o f t h e o b l i g a t i o n o f t h e U n d e r w r i t e r s t o p u r c h a s e a n d a c c e p t d e l i v e r y o f t h e B o n d s ) t h a t t h e
r e p r e s e n t a t i o n s a n d w a r r a n t i e s c o n t a i n e d h e r e i n s h a l l b e t r u e a n d c o r r e c t o n t h e d a t e h e r e o f a n d a t t h e
C l o s i n g D a t e , a s i f m a d e o n a n d a t t h e C l o s i n g . T h e C o m m i s s i o n s o r e p r e s e n t s a n d w a r r a n t s t h a t :
( a ) t h e C o m m i s s i o n i s , a n d w i l l b e o n t h e d a t e o f C l o s i n g , a c o u n t y t r a n s p o r t a t i o n
c o m m i s s i o n o r g a n i z e d a n d e x i s t i n g u n d e r t h e l a w s o f t h e S t a t e , w i t h f u l l l e g a l r i g h t , p o w e r
a n d a u t h o r i t y t o c a u s e t h e e x e c u t i o n , s a l e a n d d e l i v e r y o f t h e B o n d s , t o e x e c u t e , d e l i v e r a n d
p e r f o r m i t s o b l i g a t i o n s u n d e r t h i s P u r c h a s e A g r e e m e n t , t h e C o n t i n u i n g D i s c l o s u r e
A g r e e m e n t a n d t h e I n d e n t u r e ( c o l l e c t i v e l y , t h e " C o m m i s s i o n ' s D o c u m e n t s " ) a n d t o c a r r y o u t
a n d c o n s u m m a t e a l l o t h e r t r a n s a c t i o n s c o n t e m p l a t e d b y e a c h o f t h e a f o r e s a i d a n d t o e x e c u t e
a n d d e l i v e r t h e O f f i c i a l S t a t e m e n t ;
( b ) B y a l l n e c e s s a r y o f f i c i a l a c t i o n , t h e C o m m i s s i o n h a s d u l y a d o p t e d O r d i n a n c e
0 2 - 0 0 1 , i m p o s i n g o f t h e S a l e s T a x , w h i c h w a s a p p r o v e d b y a t l e a s t t w o - t h i r d s o f t h e e l e c t o r s
i n t h e C o u n t y v o t i n g o n t h e S a l e s T a x o n N o v e m b e r 5 , 2 0 0 2 ( t h e " O r d i n a n c e " ) ;
( c ) t h e O f f i c i a l S t a t e m e n t ( e x c l u d i n g t h e r e f r o m t h e i n f o r m a t i o n u n d e r t h e c a p t i o n
" U n d e r w r i t i n g " a n d a l l i n f o r m a t i o n c o n c e r n i n g t h e b o o k - e n t r y s y s t e m s e t f o r t h u n d e r t h e
c a p t i o n " T h e S e r i e s 2 0 0 8 B o n d s , " a n d t h e i n f o r m a t i o n i n A p p e n d i c e s B t h r o u g h F , a s t o
w h i c h n o r e p r e s e n t a t i o n s o r w a r r a n t i e s a r e m a d e ) , i n t h e f o r m d e l i v e r e d t o t h e U n d e r w r i t e r ,
d o e s n o t , a s o f t h e d a t e d e l i v e r e d t o t h e U n d e r w r i t e r s , a n d w i l l n o t a t t h e t i m e o f C l o s i n g ( i f
s u p p l e m e n t e d o r a m e n d e d p r i o r t o t h e C l o s i n g , t h e n a s s o s u p p l e m e n t e d o r a m e n d e d ) , c o n t a i n
a n y u n t r u e s t a t e m e n t o f a m a t e r i a l f a c t , o r o m i t t o s t a t e a m a t e r i a l f a c t n e c e s s a r y i n o r d e r t o
m a k e t h e s t a t e m e n t s m a d e t h e r e i n , i n l i g h t o f t h e c i r c u m s t a n c e s u n d e r w h i c h t h e y w e r e m a d e ,
n o t m i s l e a d i n g ;
( d ) w h e n d e l i v e r e d t o a n d p a i d f o r b y t h e U n d e r w r i t e r s o n t h e C l o s i n g D a t e i n
a c c o r d a n c e w i t h t h e p r o v i s i o n s o f t h i s P u r c h a s e A g r e e m e n t , t h e B o n d s w i l l h a v e b e e n d u l y
a u t h o r i z e d , e x e c u t e d a n d d e l i v e r e d a n d w i l l c o n s t i t u t e v a l i d a n d b i n d i n g l i m i t e d o b l i g a t i o n s
D O C S O C / 1 2 7 4 2 1 2 v 4 / 0 2 2 5 8 4 - 0 0 1 5
3
2 7 9
of the Commission in conformity with and entitled to the benefit and security of the
Indenture;
(e) the Commission, by all necessary official action prior to or concurrently with
the acceptance hereof, has duly authorized the execution and delivery of the Commission's
Documents and the Official Statement, and the Commission's Documents, when executed
and delivered, assuming due authorization, execution and delivery by the other parties
thereto, will constitute the legally valid and binding obligations of the Commission
enforceable in accordance with their terms, except as enforcement may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable principles
relating to or affecting creditors' rights generally, the exercise of judicial discretion and the
limitations on legal remedies against public entities in the State
(0 the Commission is not in breach or default under any applicable law or
administrative regulation of the State or the United States of America or any applicable
judgment or decree to which the Commission is a party or is otherwise subject the breach of
which would materially affect its ability to perform its obligations under the Commission's
Documents, and the execution and delivery of the Commission's Documents and compliance
with the provisions thereof will not in any material respect conflict with or constitute a
material breach of or default under any applicable law, regulation, decree, writ, order or
injunction or any agreement, resolution, contract or other instrument to which the
Commission is subject and which is material to the Commission's ability to perform its
obligations under the Commission's Documents, nor will such execution, delivery and
compliance result in the creation or imposition of any lien, charge or other security interest or
encumbrance of any nature whatsoever upon any of the properties or assets of the
Commission under the terms of any such law, administrative regulation, judgment, decree,
loan agreement, indenture, bond, note, resolution, agreement or other instrument, except as
provided in the Indenture;
(g) at the Closing, the Commission will be in compliance in all respects with the
covenants and agreements contained in the Commission's Documents, and no event of
default and no event which, with the lapse of time or giving of notice, or both, would
constitute an event of default thereunder shall have occurred and be continuing;
(h) As of the date hereof, no action, suit, proceeding, inquiry or investigation at
law or in equity before or by any court, government agency, public board or body, is pending
or, to the best of the Commission's knowledge, threatened against the Commission: (i) in
any way affecting the existence of the Commission or in any way challenging the respective
powers of the several offices or the titles of the officials of the Commission to such offices;
or (ii) affecting or seeking to prohibit, restrain or enjoin the issuance, sale or delivery of any
of the Bonds, the application of the proceeds of the sale of the Bonds, the proceedings
authorizing and approving the Sales Tax, the levy or collection of the Sales Tax, or in any
way contesting or affecting, as to the Commission, the validity or enforceability of the Act,
the proceedings authorizing the Sales Tax, Resolution No. 08-010 of the Commission
adopted on [May 141, 2008 (the "Bond Resolution") the Bonds or the Commission's
Documents or contesting the powers of the Commission or its authority with respect to
issuance or delivery of the Bonds or the execution and delivery of the . Commission's
Documents or contesting the power or authority to levy the Sales Tax or contesting the
completeness or accuracy of the Official Statement, or in any way contesting or challenging
DOCS OC/ 1274212v4/022584-0015
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t h e c o n s u m m a t i o n o f t h e t r a n s a c t i o n s c o n t e m p l a t e d h e r e b y o r t h e r e b y o r w h i c h m i g h t
m a t e r i a l l y a d v e r s e l y a f f e c t t h e a b i l i t y o f t h e C o m m i s s i o n t o p e r f o r m a n d s a t i s f y i t s
o b l i g a t i o n s u n d e r t h e C o m m i s s i o n ' s D o c u m e n t s o r t h e B o n d s ; n o r t o t h e b e s t o f t h e
C o m m i s s i o n ' s k n o w l e d g e i s t h e r e a n y b a s i s f o r a n y s u c h a c t i o n , s u i t , p r o c e e d i n g , i n q u i r y o r
i n v e s t i g a t i o n , w h e r e i n a n u n f a v o r a b l e d e c i s i o n , r u l i n g o r f i n d i n g w o u l d m a t e r i a l l y a d v e r s e l y
a f f e c t t h e A c t , t h e p r o c e e d i n g s a u t h o r i z i n g t h e S a l e s T a x o r t h e C o m m i s s i o n ' s D o c u m e n t s o r
t h e p e r f o r m a n c e b y t h e C o m m i s s i o n o f i t s o b l i g a t i o n s t h e r e u n d e r , o r t h e a u t h o r i z a t i o n ,
e x e c u t i o n , d e l i v e r y o r p e r f o r m a n c e b y t h e C o m m i s s i o n o f t h e B o n d s o r t h e C o m m i s s i o n ' s
D o c u m e n t s .
( i ) t h e C o m m i s s i o n w i l l f u r n i s h s u c h i n f o r m a t i o n , e x e c u t e s u c h i n s t r u m e n t s a n d
t a k e s u c h o t h e r a c t i o n n o t i n c o n s i s t e n t w i t h l a w i n c o o p e r a t i o n w i t h t h e U n d e r w r i t e r s w h i c h
t h e U n d e r w r i t e r s m a y r e a s o n a b l y r e q u e s t i n o r d e r ( i ) t o q u a l i f y t h e B o n d s f o r o f f e r a n d s a l e
u n d e r t h e B l u e S k y o r o t h e r s e c u r i t i e s l a w s a n d r e g u l a t i o n s o f s u c h s t a t e s a n d o t h e r
j u r i s d i c t i o n s o f t h e U n i t e d S t a t e s a s t h e U n d e r w r i t e r s m a y d e s i g n a t e ; a n d ( i i ) t o d e t e r m i n e t h e
e l i g i b i l i t y o f t h e B o n d s f o r i n v e s t m e n t u n d e r t h e l a w s o f s u c h s t a t e s a n d o t h e r j u r i s d i c t i o n s ,
a n d w i l l c o n t i n u e t o t a k e s u c h a c t i o n s o l o n g a s r e q u i r e d f o r d i s t r i b u t i o n o f t h e B o n d s ;
p r o v i d e d , h o w e v e r , t h a t i n n o e v e n t s h a l l t h e C o m m i s s i o n b e r e q u i r e d t o t a k e a n y a c t i o n
w h i c h w o u l d s u b j e c t i t t o s e r v i c e o f p r o c e s s i n a n y j u r i s d i c t i o n i n w h i c h i t i s n o t n o w s o
s u b j e c t o r b e r e q u i r e d t o r e g i s t e r a s a d e a l e r o r b r o k e r o r q u a l i f y t o d o b u s i n e s s a s a f o r e i g n
c o r p o r a t i o n o r b e s u b j e c t t o a n y o t h e r s i m i l a r r e q u i r e m e n t s d e e m e d b y t h e C o m m i s s i o n t o b e
u n d u l y b u r d e n s o m e ;
( j ) a l l a p p r o v a l s , c o n s e n t s a n d o r d e r s o f a n y g o v e r n m e n t a l a u t h o r i t y o r a g e n c y
h a v i n g j u r i s d i c t i o n i n t h e m a t t e r s w h i c h w o u l d c o n s t i t u t e a c o n d i t i o n p r e c e d e n t t o t h e d u e
p e r f o r m a n c e b y t h e C o m m i s s i o n o f i t s o b l i g a t i o n s u n d e r t h e C o m m i s s i o n ' s D o c u m e n t s h a v e
b e e n d u l y o b t a i n e d o r m a d e , a n d a r e , a n d w i l l b e o n t h e d a t e o f C l o s i n g , i n f u l l f o r c e a n d
e f f e c t ;
( k ) i f , s u b s e q u e n t t o t h e d a t e h e r e o f , a n d p r i o r t o t h e C l o s i n g , a n e v e n t o c c u r s
a f f e c t i n g t h e C o m m i s s i o n w h i c h i s m a t e r i a l l y a d v e r s e f o r t h e p u r p o s e f o r w h i c h t h e O f f i c i a l
S t a t e m e n t , a s t h e n s u p p l e m e n t e d o r a m e n d e d i s t o b e u s e d a n d s u c h e v e n t i s n o t d i s c l o s e d i n
t h e O f f i c i a l S t a t e m e n t , t h e C o m m i s s i o n s h a l l n o t i f y t h e R e p r e s e n t a t i v e t h e r e o f , a n d i f i n t h e
m u t u a l o p i n i o n o f t h e C o m m i s s i o n a n d t h e R e p r e s e n t a t i v e s u c h e v e n t r e q u i r e s a s u p p l e m e n t
o r a m e n d m e n t t o t h e O f f i c i a l S t a t e m e n t , t h e C o m m i s s i o n w i l l s u p p l e m e n t o r a m e n d t h e
O f f i c i a l S t a t e m e n t i n a f o r m a n d m a n n e r a p p r o v e d b y t h e R e p r e s e n t a t i v e ;
( 0 a s o f t h e d a t e t h e r e o f , t h e P r e l i m i n a r y O f f i c i a l S t a t e m e n t ( e x c l u d i n g
t h e r e f r o m t h e i n f o r m a t i o n u n d e r t h e c a p t i o n " U n d e r w r i t i n g " a n d a l l i n f o r m a t i o n c o n c e r n i n g
t h e b o o k - e n t r y s y s t e m s e t f o r t h u n d e r t h e c a p t i o n " T h e S e r i e s 2 0 0 8 B o n d s , " a n d t h e
i n f o r m a t i o n i n A p p e n d i c e s B t h r o u g h F , a s t o w h i c h n o r e p r e s e n t a t i o n s o r w a r r a n t i e s a r e
m a d e ) d i d n o t , e x c e p t a s r e v i s e d b y t h e O f f i c i a l S t a t e m e n t , c o n t a i n a n y u n t r u e s t a t e m e n t o f a
m a t e r i a l f a c t o r o m i t t o s t a t e a m a t e r i a l f a c t n e c e s s a r y t o m a k e t h e s t a t e m e n t s t h e r e i n , i n l i g h t
o f t h e c i r c u m s t a n c e s u n d e r w h i c h t h e y w e r e m a d e , n o t m i s l e a d i n g i n a n y m a t e r i a l r e s p e c t .
( m ) s o l o n g a s t h e U n d e r w r i t e r s a r e r e q u i r e d u n d e r R u l e 1 5 c 2 - 1 2 o r a n y
a m e n d m e n t o r s u c c e s s o r t h e r e t o t o s e n d a n y p o t e n t i a l c u s t o m e r , o n r e q u e s t , a c o p y o f t h e
O f f i c i a l S t a t e m e n t ( t h e " D e l i v e r y P e r i o d " ) , i f a n e v e n t o c c u r s w h i c h m i g h t o r w o u l d c a u s e
t h e O f f i c i a l S t a t e m e n t ( e x c l u d i n g t h e r e f r o m t h e i n f o r m a t i o n u n d e r t h e c a p t i o n
D O C S O C / 1 2 7 4 2 1 2 v 4 / 0 2 2 5 8 4 - 0 0 1 5
5
2 8 1
"Underwriting" and all information concerning the book -entry system set forth under the
caption "The Series 2008 Bonds," and the information in Appendices B through F, as to
which no representations or warranties are made), as then supplemented or amended, to
contain any untrue statement of a material fact, or omit to state any material fact necessary to
make the statements therein, in the light of the circumstances under which they were made,
not misleading, the Commission shall promptly notify the Representative thereof and if, in
the opinion of the Representative, such event requires the preparation and publication of a
supplement or amendment to the Official Statement, the Commission shall prepare and
deliver to the Underwriters (at the Commission's expense) for 25 days from the date of the
Closing, as many copies of an amendment or supplement which will correct such statement
or omission as the Underwriters may reasonably request. During the Delivery Period, the
Commission shall furnish such information as the Representative may from time to time
reasonably request;
(n) if the Official Statement is amended or supplemented pursuant to paragraph
4(k) hereof, at the time of each supplement or amendment thereto and (unless subsequently
again supplemented or amended pursuant to such paragraph) at all times subsequent thereto
up to and including the Closing Date, the Official Statement as so supplemented or amended
(excluding therefrom the information under the caption "Underwriting" and all information
concerning the book -entry system set forth under the caption "The Series 2008 Bonds," and
the information in Appendices B through F, as to which no representations or warranties are
made) will not contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements therein, in the light of the circumstances under which they
were made, not misleading;
(o) after the Closing, the Commission will not participate in the issuance of any
amendment of or supplement to the Official Statement, to which, after being furnished with a
copy, the Representative shall reasonably object in writing and which shall be disapproved by
the law offices of Stradling Yocca Carlson & Rauth, a Professional Corporation
("Underwriters' Counsel") or Bond;
(p) between the date of this Purchase Agreement and the date of Closing, the
Commission will not, without the prior written consent of the Representative, except as
disclosed in the Official Statement and except in the course of normal business operations of
the Commission, offer or issue any bonds, notes or other obligations for borrowed money, or
incur any material liabilities, direct or contingent; and
5. To .the extent permitted by law, the Commission agrees to indemnify and hold
harmless the Underwriters and each person, if any, who controls (within the meaning of Section 15
of the Securities Act of 1933, as amended, or of Section 20 of the Securities Exchange Act of 1934,
as amended) the Underwriters and the officers, agents and employees of the Underwriters (each such
person, an "Indemnified Party") against any and all losses, claims, damages, liabilities and expenses
arising out of any untrue statement of a material fact contained in the Preliminary Official Statement
or in the Official Statement under the captions "The Series 2008 Bonds," "Plan of Finance,"
"Application of Series 2008 Bond Proceeds," "Security and Sources of Payment for the Series 2008
Bonds," "The Sales Tax," "Riverside County Transportation Commission," "The Transportation
Expenditure Plan" and "Litigation" and, relating to the Commission necessary to make the
statements therein relating to the Commission in light of the circumstances under which they were
made not misleading provided, however, that in no event shall this indemnification agreement inure
6
DOCSOC/ 1274212v4/022584-0015
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t o t h e b e n e f i t o f a n I n d e m n i f i e d P a r t y o n a c c o u n t o f a n y l o s s e s , c l a i m s , d a m a g e s , l i a b i l i t i e s o r a c t i o n s
a r i s i n g o u t o f , o r b a s e d u p o n , a n u n t r u e s t a t e m e n t o r o m i s s i o n i n t h e P r e l i m i n a r y O f f i c i a l S t a t e m e n t i f
t h e O f f i c i a l S t a t e m e n t s h a l l c o r r e c t s u c h u n t r u e s t a t e m e n t o r o m i s s i o n a n d a c o p y o f t h e O f f i c i a l
S t a t e m e n t h a d n o t b e e n s e n t o r g i v e n t o s u c h p e r s o n a t o r p r i o r t o c o n f i r m a t i o n o f s u c h s a l e t o h i m o r
h e r . T h e C o m m i s s i o n s h a l l n o t b e l i a b l e f o r a n y s e t t l e m e n t o f a n y s u c h a c t i o n e f f e c t e d w i t h o u t i t s
c o n s e n t b y a n y I n d e m n i f i e d P a r t y , w h i c h c o n s e n t s h a l l n o t b e u n r e a s o n a b l y w i t h h e l d , b u t i f s e t t l e d
w i t h t h e c o n s e n t o f t h e C o m m i s s i o n o r i f t h e r e b e a f i n a l j u d g m e n t f o r t h e p l a i n t i f f i n a n y s u c h a c t i o n
a g a i n s t t h e C o m m i s s i o n o r a n y I n d e m n i f i e d P a r t y , t h e C o m m i s s i o n a g r e e s t o i n d e m n i f y a n d h o l d
h a r m l e s s s u c h I n d e m n i f i e d P a r t y t o t h e e x t e n t p r o v i d e d h e r e i n .
I n c a s e a n y c l a i m s h a l l b e m a d e o r a c t i o n b r o u g h t a g a i n s t a n I n d e m n i f i e d P a r t y , f o r w h i c h
i n d e m n i t y m a y b e s o u g h t a g a i n s t t h e C o m m i s s i o n , a s p r o v i d e d a b o v e , t h e U n d e r w r i t e r s s h a l l
p r o m p t l y n o t i f y t h e C o m m i s s i o n i n w r i t i n g s e t t i n g f o r t h t h e p a r t i c u l a r s o f s u c h c l a i m o r a c t i o n a n d
t h e C o m m i s s i o n s h a l l a s s u m e t h e d e f e n s e t h e r e o f , i n c l u d i n g a t i t s o p t i o n t h e r e t a i n i n g o f c o u n s e l
a c c e p t a b l e t o t h e U n d e r w r i t e r s a n d i n c l u d i n g t h e p a y m e n t o f a l l e x p e n s e s . T h e I n d e m n i f i e d P a r t y
s h a l l n o t h a v e t h e r i g h t t o r e t a i n s e p a r a t e c o u n s e l u n l e s s ( i ) t h e C o m m i s s i o n s h a l l h a v e s p e c i f i c a l l y
a u t h o r i z e d t h e r e t a i n i n g o f s u c h c o u n s e l o r ( i i ) t h e p a r t i e s t o s u c h s u i t i n c l u d e t h e U n d e r w r i t e r s . o r
s u c h c o n t r o l l i n g p e r s o n o r p e r s o n s , a n d t h e C o m m i s s i o n a n d t h e I n d e m n i f i e d P a r t y a n d o n e o r m o r e
l e g a l d e f e n s e s m a y b e a v a i l a b l e t o i t w h i c h m a y n o t b e a v a i l a b l e t o t h e C o m m i s s i o n , i n w h i c h c a s e
t h e C o m m i s s i o n s h a l l n o t b e e n t i t l e d t o a s s u m e t h e d e f e n s e o f t h e s u i t b u t t h e U n d e r w r i t e r s s h a l l b e a r
t h e f e e s a n d e x p e n s e s o f s u c h c o u n s e l .
E a c h U n d e r w r i t e r a g r e e s , s e v e r a l l y a n d n o t j o i n t l y , t o i n d e m n i f y a n d h o l d h a r m l e s s t h e
C o m m i s s i o n , i t s e m p l o y e e s a n d i t s o f f i c e r s , b u t o n l y w i t h r e f e r e n c e t o l i a b i l i t y i n c o n n e c t i o n w i t h
f a l s e s t a t e m e n t s a n d i n f o r m a t i o n i n t h e P r e l i m i n a r y O f f i c i a l S t a t e m e n t o r t h e O f f i c i a l S t a t e m e n t
f u r n i s h e d t o t h e C o m m i s s i o n i n w r i t i n g b y s u c h U n d e r w r i t e r f o r i n c l u s i o n i n t h e P r e l i m i n a r y O f f i c i a l
S t a t e m e n t o r t h e O f f i c i a l S t a t e m e n t .
( a ) T h e C o m m i s s i o n h a s n o t b e e n n o t i f i e d o f a n y l i s t i n g o r p r o p o s e d l i s t i n g b y
t h e I n t e r n a l R e v e n u e S e r v i c e t o t h e e f f e c t t h a t t h e C o m m i s s i o n i s a b o n d i s s u e r w h o s e
a r b i t r a g e c e r t i f i c a t e s m a y n o t b e r e l i e d u p o n .
6 . T h e R e p r e s e n t a t i v e o n b e h a l f o f i t s e l f a n d t h e U n d e r w r i t e r s , h e r e b y e n t e r s i n t o t h i s
P u r c h a s e A g r e e m e n t i n r e l i a n c e u p o n t h e r e p r e s e n t a t i o n s a n d w a r r a n t i e s o f t h e C o m m i s s i o n
c o n t a i n e d h e r e i n a n d t h e r e p r e s e n t a t i o n s a n d w a r r a n t i e s t o b e c o n t a i n e d i n t h e d o c u m e n t s a n d
i n s t r u m e n t s t o b e d e l i v e r e d a t t h e C l o s i n g a n d u p o n t h e p e r f o r m a n c e b y t h e C o m m i s s i o n o f i t s
o b l i g a t i o n s b o t h o n a n d a s o f t h e d a t e h e r e o f a n d a s o f t h e C l o s i n g D a t e . A c c o r d i n g l y , t h e
U n d e r w r i t e r s ' o b l i g a t i o n s u n d e r t h i s P u r c h a s e A g r e e m e n t t o p u r c h a s e , t o a c c e p t d e l i v e r y o f a n d t o
p a y f o r t h e B o n d s s h a l l b e s u b j e c t , a t t h e s o l e o p t i o n o f t h e R e p r e s e n t a t i v e , t o t h e a c c u r a c y i n a l l
m a t e r i a l r e s p e c t s o f t h e r e p r e s e n t a t i o n s a n d w a r r a n t i e s o f t h e C o m m i s s i o n c o n t a i n e d h e r e i n a s o f t h e
d a t e h e r e o f a n d a s o f t h e C l o s i n g D a t e , t o t h e a c c u r a c y i n a l l m a t e r i a l r e s p e c t s o f t h e s t a t e m e n t s o f
t h e o f f i c e r s a n d o t h e r o f f i c i a l s o f t h e C o m m i s s i o n m a d e i n a n y c e r t i f i c a t e o r o t h e r d o c u m e n t
f u r n i s h e d p u r s u a n t t o t h e p r o v i s i o n s h e r e o f , t o t h e p e r f o r m a n c e b y t h e C o m m i s s i o n o f i t s o b l i g a t i o n s
t o b e p e r f o r m e d h e r e u n d e r a n d u n d e r s u c h d o c u m e n t s a n d i n s t r u m e n t s a t o r p r i o r t o t h e C l o s i n g D a t e ,
a n d t o t h e f o l l o w i n g a d d i t i o n a l c o n d i t i o n s :
( a ) P r i o r t o t h e C l o s i n g , t h e C o m m i s s i o n ' s D o c u m e n t s s h a l l h a v e b e e n d u l y
a u t h o r i z e d , e x e c u t e d a n d d e l i v e r e d a n d n o n e o f s u c h d o c u m e n t s s h a l l h a v e b e e n a m e n d e d ,
D O C S O C / 1 2 7 4 2 1 2 v 4 / 0 2 2 5 8 4 - 0 0 1 5
7
2 8 3
modified or repealed, except to the extent to which the Representative has given its written
consent;
(b) At the time of Closing all official action of the Commission related to the
Commission's Documents, and the sale of the Bonds, shall be in full force and effect and
shall not have been amended, modified, supplemented or repealed in any material respect;
(c) At the time of Closing the Commission shall have made timely payment of
principal and/or interest when due on all of its respective outstanding bonds, notes or other
obligations;
(d) As of the date hereof and at Closing, trading in any securities of the
Commission shall not have been suspended on any national securities exchange; nor shall
any proceeding be pending or threatened by the Securities Exchange Commission against the
Commission;
(e) Subsequent to the date hereof, up to and including the Closing, there shall not
have occurred any change in or particularly affecting the Commission, the Act, the
Ordinance, the Sales Tax, the Sales Tax Revenues, the Bonds or the Commission's
Documents as the foregoing matters are described in the Official Statement, which in the
reasonable professional judgment of the Underwriters materially impairs the investment
quality of the Bonds.
(f) Subsequent to the date hereof, up to and including the Closing, the California
State Board of Equalization shall not have suspended or advised the Commission of
suspension of the collection of the Sales Tax or the escrow of any proceeds thereof, and
counsel to the Commission shall not have been advised of the suspension of the collection of
the Sales Tax or the escrow of any proceeds thereof or have any question as to the validity of
the Sales Tax
7. The Underwriters shall have the right to cancel their obligation hereunder to purchase
the Bonds (and such cancellation shall not constitute a default hereunder by the Underwriters) by the
Representative notifying you in writing or by telegram of its election so to do between the date
hereof and the Closing, if at any time hereafter and prior to the Closing:
(i) any event occurring, or information becoming known that, in the
reasonable judgment of the Representative, makes untrue in any material respect any
statement or information contained in the Official Statement or results in an omission of a
material fact required to be stated therein or necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading; or
(ii) an amendment to the Constitution of the United States of America or
by any legislation in or by the Congress of the United States of America or by the State of
California, or the amendment of legislation pending as of the date of this Purchase
Agreement in the Congress of the United States of America, or the recommendation to
Congress or endorsement for passage (by press release, other form of notice or otherwise) of
legislation by the President of the United States of America, the Treasury Department of the
United States of America, the Internal Revenue Service or the Chairman or ranking minority
member of the Committee on Finance of the United States Senate or the Committee on Ways
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"
a n d M e a n s o f t h e U n i t e d S t a t e s H o u s e o f R e p r e s e n t a t i v e s , o r t h e p r o p o s a l f o r c o n s i d e r a t i o n
o f l e g i s l a t i o n b y e i t h e r s u c h C o m m i t t e e o r b y a n y m e m b e r t h e r e o f , o r t h e p r e s e n t m e n t o f
l e g i s l a t i o n f o r c o n s i d e r a t i o n a s a n o p t i o n b y e i t h e r s u c h C o m m i t t e e , o r b y t h e s t a f f o f t h e
J o i n t C o m m i t t e e o n T a x a t i o n o f t h e C o n g r e s s o f t h e U n i t e d S t a t e s o f A m e r i c a , o r t h e
f a v o r a b l e r e p o r t i n g f o r p a s s a g e o f l e g i s l a t i o n t o e i t h e r H o u s e o f t h e C o n g r e s s o f t h e U n i t e d
S t a t e s o f A m e r i c a b y a C o m m i t t e e o f s u c h H o u s e t o w h i c h s u c h l e g i s l a t i o n h a s b e e n r e f e r r e d
f o r c o n s i d e r a t i o n , o r a n y d e c i s i o n o f a n y f e d e r a l o r S t a t e o f C a l i f o r n i a c o u r t o r a n y r u l i n g o r
r e g u l a t i o n ( f i n a l , t e m p o r a r y o r p r o p o s e d ) o r o f f i c i a l s t a t e m e n t o n b e h a l f o f t h e U n i t e d S t a t e s
T r e a s u r y D e p a r t m e n t , t h e I n t e r n a l R e v e n u e S e r v i c e o r o t h e r f e d e r a l o r S t a t e o f C a l i f o r n i a
a u t h o r i t y m a t e r i a l l y a d v e r s e l y a f f e c t i n g , i n t h e r e a s o n a b l e j u d g m e n t o f t h e R e p r e s e n t a t i v e ,
t h e f e d e r a l o r S t a t e o f C a l i f o r n i a t a x s t a t u s o f t h e C o m m i s s i o n , o r t h e s t a t u s o f t h e i n t e r e s t o n
b o n d s o r n o t e s o r o b l i g a t i o n s o f t h e g e n e r a l c h a r a c t e r o f t h e B o n d s ; o r
( i i i ) a n y l e g i s l a t i o n , o r d i n a n c e , r u l e o r r e g u l a t i o n s h a l l b e i n t r o d u c e d i n , o r
b e e n a c t e d b y a n y g o v e r n m e n t a l b o d y , d e p a r t m e n t o r a g e n c y o f t h e S t a t e o f C a l i f o r n i a , o r a
d e c i s i o n b y a n y c o u r t o f c o m p e t e n t j u r i s d i c t i o n w i t h i n t h e S t a t e o f C a l i f o r n i a o r a n y c o u r t o f
t h e U n i t e d S t a t e s o f A m e r i c a s h a l l b e r e n d e r e d w h i c h , i n t h e r e a s o n a b l e o p i n i o n o f t h e
R e p r e s e n t a t i v e , m a t e r i a l l y a d v e r s e l y a f f e c t s t h e m a r k e t p r i c e o f t h e B o n d s ; o r
( i v ) l e g i s l a t i o n s h a l l b e e n a c t e d b y t h e C o n g r e s s o f t h e U n i t e d S t a t e s o f
A m e r i c a , o r a d e c i s i o n b y a c o u r t o f t h e U n i t e d S t a t e s o f A m e r i c a s h a l l b e r e n d e r e d , o r a s t o p
o r d e r , r u l i n g , r e g u l a t i o n o r o f f i c i a l s t a t e m e n t b y , o r o n b e h a l f o f , t h e S e c u r i t i e s a n d E x c h a n g e
C o m m i s s i o n o r a n y o t h e r g o v e r n m e n t a l a g e n c y h a v i n g j u r i s d i c t i o n o f t h e s u b j e c t m a t t e r s h a l l
b e i s s u e d o r m a d e t o t h e e f f e c t t h a t t h e e x e c u t i o n , d e l i v e r y , o f f e r i n g o r s a l e o f o b l i g a t i o n s o f
t h e g e n e r a l c h a r a c t e r o f t h e B o n d s , o r t h e e x e c u t i o n , d e l i v e r y , o f f e r i n g o r s a t e o f t h e B o n d s ,
i n c l u d i n g a l l u n d e r l y i n g o b l i g a t i o n s , a s c o n t e m p l a t e d h e r e b y o r b y t h e O f f i c i a l S t a t e m e n t , i s
i n v i o l a t i o n o r w o u l d b e i n v i o l a t i o n o f , o r t h a t o b l i g a t i o n s o f t h e g e n e r a l c h a r a c t e r o f t h e
B o n d s , o r t h e B o n d s , a r e n o t e x e m p t f r o m r e g i s t r a t i o n u n d e r , a n y p r o v i s i o n o f t h e f e d e r a l
s e c u r i t i e s l a w s , i n c l u d i n g t h e S e c u r i t i e s A c t o f 1 9 3 3 , a s a m e n d e d a n d a s t h e n i n e f f e c t , o r t h a t
t h e I n d e n t u r e n e e d s t o b e q u a l i f i e d u n d e r t h e T r u s t I n d e n t u r e A c t o f 1 9 3 9 , a s a m e n d e d a n d a s
t h e n i n e f f e c t ; o r
( v ) t h e i m p o s i t i o n b y t h e N e w Y o r k S t o c k E x c h a n g e o r o t h e r n a t i o n a l
s e c u r i t i e s e x c h a n g e o r a n y g o v e r n m e n t a l a u t h o r i t y o f a n y m a t e r i a l r e s t r i c t i o n s n o t n o w i n
f o r c e w i t h r e s p e c t t o t h e B o n d s o r o b l i g a t i o n s o f t h e g e n e r a l c h a r a c t e r o f t h e B o n d s o r
s e c u r i t i e s g e n e r a l l y o r t h e m a t e r i a l i n c r e a s e o f a n y s u c h r e s t r i c t i o n s n o w i n f o r c e , i n c l u d i n g
t h o s e r e l a t i n g t o t h e e x t e n s i o n o f c r e d i t b y o r t h e c h a r g e t o t h e n e t c a p i t a l r e q u i r e m e n t s o f , t h e
U n d e r w r i t e r s , w h i c h , i n t h e r e a s o n a b l e o p i n i o n o f t h e R e p r e s e n t a t i v e , m a t e r i a l l y a d v e r s e l y
a f f e c t s t h e m a r k e t p r i c e o f t h e B o n d s ; o r
( v i ) t h e d e c l a r a t i o n o f a g e n e r a l b a n k i n g m o r a t o r i u m b y f e d e r a l , N e w
Y o r k o r C a l i f o r n i a a u t h o r i t i e s o r a m a j o r f i n a n c i a l c r i s i s o r a m a t e r i a l d i s r u p t i o n i n
c o m m e r c i a l b a n k i n g o r s e c u r i t i e s s e t t l e m e n t o r c l e a r a n c e s s e r v i c e s s h a l l h a v e o c c u r r e d , o r t h e
g e n e r a l s u s p e n s i o n o f t r a d i n g o r m i n i m u m o r m a x i m u m p r i c e s f o r t r a d i n g s h a l l h a v e b e e n
f i x e d a n d b e i n f o r c e o r m a x i m u m r a n g e s o r p r i c e s f o r s e c u r i t i e s s h a l l h a v e b e e n r e q u i r e d a n d
b e i n f o r c e o n t h e N e w Y o r k S t o c k E x c h a n g e o n a n y n a t i o n a l s e c u r i t i e s e x c h a n g e b y a
d e t e r m i n a t i o n b y t h a t e x c h a n g e o r b y o r d e r o f t h e S e c u r i t i e s a n d E x c h a n g e C o m m i s s i o n o r
a n y o t h e r g o v e r n m e n t a l a g e n c y h a v i n g j u r i s d i c t i o n , w h i c h , i n t h e r e a s o n a b l e o p i n i o n o f t h e
R e p r e s e n t a t i v e , m a t e r i a l l y a d v e r s e l y a f f e c t s t h e m a r k e t p r i c e o f t h e B o n d s ;
D O C S O C / 1 2 7 4 2 1 2 v 4 / 0 2 2 5 8 4 - 0 0 1 5
9
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(vii) any new outbreak or escalation of hostilities, declaration by the
United States of America of a national emergency or war or other calamity or crisis affecting
the financial markets , which, in the reasonable opinion of the Representative, materially
adversely affects the market price of the Bonds; or
(viii) any rating of securities. of the Commission payable from or secured
by Revenues reflecting the creditworthiness of the Commission shall have been withdrawn or
reduced, which, in the Representative's reasonable opinion, materially adversely affects the
marketability or market price of the Bonds; or
(ix) the commencement of any action, suit or proceeding described in
Section 4(h) hereof which, in the reasonable judgment of the Representative, materially
adversely affects the market price of the Bonds; or
(x) there shall be in force a general suspension of trading on the New
York Stock Exchange.
(b) The Commission shall perform, or have performed at or prior to the time of
the Closing, all of its obligations required under or specified in the Commission's
Documents, as amended to the date of Closing, to be performed at or prior to the Closing;
(c) At or prior to the Closing, the Underwriters shall receive, among other items,
the following, in each case reasonably satisfactory in form and substance to the
Representative and Underwriters' Counsel:
(i)
Executed copies of each of the Commission's Documents;
(ii) The approving opinion of Bond Counsel, substantially in the -form
attached to the Official Statement as Appendix E;
(iii) A supplemental opinion of Bond Counsel, addressed to the
Commission and the Underwriters, stating the Underwriters may rely upon the opinion
referred to in subparagraph (ii) hereof as though addressed to them and to the following
effect:
(A) The information contained in the Official Statement in the
sections entitled "INTRODUCTION," "THE SERIES 2008 BONDS" (other than the
information concerning DTC and the book -entry system) "SECURITY AND SOURCE OF
PAYMENT FOR THE SERIES 2008 BONDS," "TAX EXEMPTION," "APPENDIX C —
SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE " and "APPENDIX E -
PROPOSED FORM OF BOND COUNSEL OPINION" insofar as such information purports
to summarize certain provisions of the Bonds (except information with respect to the pricing,
as to which no opinion need be given), the Indenture and such counsel's opinion relating to
the tax exemption of interest on the Bonds, are accurate in all material respects; and
(B) The Bonds are exempt from registration pursuant to the
Securities Act of 1933, as amended, and the Indenture is exempt from qualification pursuant
to the Trust Indenture Act of 1939, as amended;
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"
"
"
( i v ) T h e o p i n i o n o f N o s s a m a n G u t h n e r K n o x & E l l i o t t L L P ( " D i s c l o s u r e
C o u n s e l " ) a d d r e s s e d t o t h e U n d e r w r i t e r s , t o t h e e f f e c t t h a t w h i l e t h e y h a v e n o t i n d e p e n d e n t l y
v e r i f i e d t h e f a i r n e s s , c o r r e c t n e s s a n d c o m p l e t e n e s s o f t h e s t a t e m e n t s a n d r e p r e s e n t a t i o n s s e t
f o r t h i n t h e O f f i c i a l S t a t e m e n t o r r e f e r r e d t o t h e r e i n o r t h e f i n a n c i a l s t a t e m e n t s a n d o t h e r
a p p e n d i c e s t h e r e t o , a s a r e s u l t o f t h e i r p a r t i c i p a t i o n i n t h e p r e p a r a t i o n o f t h e O f f i c i a l
S t a t e m e n t a n d t h e i r r e v i e w o f c e r t a i n d o c u m e n t s r e f e r r e d t o t h e r e i n , n o t h i n g h a s c o m e t o t h e i r
a t t e n t i o n w h i c h g i v e s t h e m r e a s o n t o b e l i e v e t h a t t h e O f f i c i a l S t a t e m e n t o r a n y a m e n d m e n t o r
s u p p l e m e n t t h e r e t o a s o f t h e i r r e s p e c t i v e i s s u e d a t e s , c o n t a i n s a n y u n t r u e s t a t e m e n t o f a
m a t e r i a l f a c t o r o m i t s t o s t a t e a n y m a t e r i a l f a c t n e c e s s a r y i n o r d e r t o m a k e t h e s t a t e m e n t s
c o n t a i n e d t h e r e i n , i n l i g h t o f t h e c i r c u m s t a n c e s u n d e r w h i c h t h e y w e r e m a d e , n o t m i s l e a d i n g
( e x c e p t f o r t h e f i n a n c i a l s t a t e m e n t s a n d o t h e r f i n a n c i a l a n d s t a t i s t i c a l d a t a i n c l u d e d t h e r e i n ,
i n c l u d i n g t h e A p p e n d i c e s t h e r e t o , a s t o w h i c h n o v i e w n e e d t o b e e x p r e s s e d ) ; a n d
( v ) A n o p i n i o n , d a t e d t h e d a t e o f t h e C l o s i n g a n d a d d r e s s e d t o t h e
U n d e r w r i t e r s , o f B e s t , B e s t & K r i e g e r L L P , G e n e r a l C o u n s e l t o t h e C o m m i s s i o n , t o t h e e f f e c t
t h a t : ( i ) t h e C o m m i s s i o n i s a c o u n t y t r a n s p o r t a t i o n c o m m i s s i o n d u l y o r g a n i z e d u n d e r t h e l a w s
o f t h e S t a t e ; ( i i ) t h e r e s o l u t i o n o r r e s o l u t i o n s o f t h e C o m m i s s i o n a p p r o v i n g a n d a u t h o r i z i n g
t h e e x e c u t i o n a n d d e l i v e r y o f t h e C o m m i s s i o n ' s D o c u m e n t s b y t h e C o m m i s s i o n ( t h e
" R e s o l u t i o n s " ) w e r e d u l y a d o p t e d a t m e e t i n g s o f t h e C o m m i s s i o n , w h i c h w e r e c a l l e d a n d
h e l d p u r s u a n t t o l a w a n d w i t h a l l p u b l i c n o t i c e r e q u i r e d b y l a w a n d a t w h i c h a q u o r u m w a s
p r e s e n t a n d a c t i n g a t t h e t i m e o f a d o p t i o n ; ( i i i ) t o t h e b e s t k n o w l e d g e o f s u c h c o u n s e l , t h e r e i s
n o a c t i o n , s u i t , p r o c e e d i n g o r i n v e s t i g a t i o n a t l a w o r i n e q u i t y b e f o r e o r b y a n y c o u r t , p u b l i c
b o a r d o r b o d y , p e n d i n g o r t h r e a t e n e d a g a i n s t o r a f f e c t i n g t h e C o m m i s s i o n , t o r e s t r a i n o r
e n j o i n i n g t h e e n f o r c e m e n t o f t h e C o m m i s s i o n ' s D o c u m e n t s o r i n a n y w a y c o n t e s t i n g o r
a f f e c t i n g t h e v a l i d i t y o f t h e C o m m i s s i o n ' s D o c u m e n t s ; ( i v ) t h e e x e c u t i o n a n d d e l i v e r y o f t h e
C o m m i s s i o n ' s D o c u m e n t s b y t h e C o m m i s s i o n , t h e a d o p t i o n o f t h e R e s o l u t i o n s , a n d
c o m p l i a n c e b y t h e C o m m i s s i o n w i t h t h e p r o v i s i o n s o f t h e f o r e g o i n g , a s a p p r o p r i a t e , u n d e r
t h e c i r c u m s t a n c e s c o n t e m p l a t e d t h e r e b y , d o e s n o t a n d w i l l n o t i n a n y m a t e r i a l r e s p e c t c o n f l i c t
w i t h o r c o n s t i t u t e o n t h e p a r t o f t h e C o m m i s s i o n a b r e a c h o r d e f a u l t u n d e r a n y a g r e e m e n t o r
o t h e r i n s t r u m e n t t o w h i c h t h e C o m m i s s i o n i s a p a r t y o r b y w h i c h i t i s b o u n d ( a n d o f w h i c h
s u c h c o u n s e l i s r e a s o n a b l y a w a r e ) o r a n y e x i s t i n g l a w , r e g u l a t i o n , c o u r t o r d e r o r c o n s e n t
d e c r e e t o w h i c h t h e C o m m i s s i o n i s s u b j e c t ; ( v ) t h e C o m m i s s i o n ' s D o c u m e n t s h a v e b e e n d u l y
a u t h o r i z e d , e x e c u t e d a n d d e l i v e r e d , b y t h e C o m m i s s i o n a n d , a s s u m i n g d u e a u t h o r i z a t i o n ,
e x e c u t i o n a n d d e l i v e r y b y t h e o t h e r p a r t i e s t h e r e t o , t h e C o m m i s s i o n ' s D o c u m e n t s c o n s t i t u t e
l e g a l , v a l i d a n d b i n d i n g a g r e e m e n t s o f t h e C o m m i s s i o n , e n f o r c e a b l e i n a c c o r d a n c e w i t h t h e i r
r e s p e c t i v e t e r m s , s u b j e c t i n e a c h c a s e t o l a w s r e l a t i n g t o b a n l a v p t c y , i n s o l v e n c y o r o t h e r l a w s
a f f e c t i n g t h e e n f o r c e m e n t o f c r e d i t o r s ' r i g h t s g e n e r a l l y a n d t h e a p p l i c a t i o n o f e q u i t a b l e
p r i n c i p l e s i f e q u i t a b l e r e m e d i e s a r e s o u g h t ; ( v i ) e x c e p t a s d e s c r i b e d i n t h e O f f i c i a l S t a t e m e n t ,
n o a u t h o r i z a t i o n , a p p r o v a l , c o n s e n t , o r o t h e r o r d e r o f t h e S t a t e o r a n y o t h e r g o v e r n m e n t a l
a u t h o r i t y o r a g e n c y w i t h i n t h e S t a t e h a v i n g j u r i s d i c t i o n o v e r t h e C o m m i s s i o n i s r e q u i r e d f o r
t h e v a l i d a u t h o r i z a t i o n , e x e c u t i o n , d e l i v e r y a n d p e r f o r m a n c e b y t h e C o m m i s s i o n o f t h e
C o m m i s s i o n ' s D o c u m e n t s w h i c h h a s n o t b e e n o b t a i n e d ; a n d ( v i i ) w i t h o u t h a v i n g u n d e r t a k e n
t o d e t e r m i n e i n d e p e n d e n t l y t h e a c c u r a c y , c o m p l e t e n e s s o r f a i r n e s s o f t h e s t a t e m e n t s
c o n t a i n e d i n t h e O f f i c i a l S t a t e m e n t a n d b a s e d u p o n t h e i n f o r m a t i o n m a d e a v a i l a b l e t o s u c h
c o u n s e l i n t h e c o u r s e o f i t s p a r t i c i p a t i o n i n t h e p r e p a r a t i o n o f t h e O f f i c i a l S t a t e m e n t a s
c o u n s e l f o r t h e C o m m i s s i o n , n o t h i n g h a s c o m e t o s u c h c o u n s e l ' s a t t e n t i o n w h i c h w o u l d
c a u s e t h e m t o b e l i e v e t h a t t h e O f f i c i a l S t a t e m e n t ( e x c l u d i n g t h e r e f r o m t h e f i n a n c i a l
s t a t e m e n t s a n d t h e s t a t i s t i c a l d a t a i n c l u d e d i n t h e O f f i c i a l S t a t e m e n t , a s t o w h i c h n o o p i n i o n
n e e d b e e x p r e s s e d ) , a s o f t h e d a t e t h e r e o f a n d a s o f t h e C l o s i n g D a t e , c o n t a i n e d a n u n t r u e
D O C S O C / 1 2 7 4 2 1 2 v 4 / 0 2 2 5 8 4 - 0 0 1 5
1 1
2 8 7
statement of a material fact or omitted to state a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under which they were
made, not misleading;
(vi) a certificate or certificates, dated the Closing Date, signed by a duly
authorized official of the Commission to the effect that, to the best of such official's
knowledge, (i) the representations and warranties of the Commission contained in this
Purchase Agreement are true and correct in all material respects on and as of the Closing
Date with the same effect as if made on the Closing Date; (ii) no event affecting the
Commission has occurred since the date of the Official Statement which has the effect of
causing the Official Statement (excluding the information under the caption "Underwriting"
and all information concerning the book -entry system set forth under the caption "The Series
2008 Bonds," and the information in Appendices B through F) to contain any untrue
statement of a material fact or to omit to state a material fact necessary in order to make the
statements and information therein, in light of the circumstances under which they were made
not misleading; (iii) the Commission is duty organized and existing under the provisions of
the Act; (iv) the Commission has, and at the time of the Closing will have, full legal right,
power and authority (A) to execute and enter into the Commission's Documents, (B) to adopt
the Bond Resolution, (C) to sell and deliver the Bonds to the Underwriters pursuant to the
Constitution and laws of the State, (D) to issue the Bonds, (E) to cause the Sales Tax to be
levied and collected, (F) to pledge the Sales Tax Revenues to the payment of the Bonds and
(G) to carry out and to consummate the transactions contemplated by, and to perform all of
its obligations under, the Bond Resolution, the Commission's Documents, the Bonds and the
Official Statement; (v) the Commission has (A) duly authorized and approved the Official
Statement, (B) duly authorized and approved the execution and delivery of, and performance
by the Commission of its obligations under, the Bonds and the Commission's Documents,
(C) duly adopted the Bond Resolution and (D) duly authorized and approved the use of the
proceeds of the sale of the Bonds, as contemplated by the Official Statement; (vi) at or prior
to the time and date the Closing, the Bonds will have been duly executed and delivered by the
Commission, and each of them and the Bond Resolution and the Commission's Documents
will constitute legal, valid and binding obligations of the Commission enforceable against the
Commission in accordance with their respective terms, except to the extent that the
enforceability may be limited by bankruptcy, insolvency, arrangement, moratorium or other
laws affecting the rights of creditors generally, equitable remedies, judicial discretion and the
limitations on legal remedies against local transportation authorities in the State; (vii) the
Bond Resolution, the Commission's Documents and the Bonds conform in all material
respects to the descriptions thereof in the Official Statement; (viii) the financial data relating
to the Commission and the financial statements of the Commission contained in the Official
Statement present fairly the financial condition and results of the operation of the
Commission at the dates and for the periods therein specified and such financial data relating
to the Commission and the financial statements of the Commission contained in the Official
Statement are presented in conformity with generally accepted accounting principles applied
on a basis substantially consistent with that of the audited financial statements of the
Commission except as otherwise specifically noted in the Official Statement; (ix) no
litigation of any nature is now pending or, to the best of the Commission's knowledge,
threatened in any court or before any governmental agency: (A) restraining or enjoining, or
seeking to restrain or enjoin, the issuance, sale, execution or delivery of the Bonds; or (B) in
any way contesting or affecting (1) the validity or enforceability of the Bonds, or (2) any
proceedings of or on behalf of the Commission taken with respect to the issuance or sale of
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the Bonds, or (3) adoption of the Bond Resolution or the execution and delivery of the
Commission's Document, or (4) the levy and collection of the Sales Tax, or (5) the pledge of
Sales Tax Revenues effected by the Indenture, as described in the Official Statement, or (6)
the proceedings authorizing and approving the Sales Tax or the levy or collection of the Sales
Tax, or (7) the existence or powers of the Commission; or (C) in any manner questioning (1)
the proceedings or authority for the issuance of the Bonds, or (2) any provision made or
authorized for the payment of the Bonds, or (3) the existence or operations of the
Commission, or (4) the power of the Commission to issue the Bonds, or (5) the power of the
Commission to undertake any other transactions necessary in connection with this proposed
financing; or (D) which would have a material adverse effect upon the operations of the
Commission relating to the Bonds or to the contemplated use of the proceeds thereof; (x)
none of the Commission's proceedings or authority for the issuance, sale, execution and
delivery of the Bonds, or the execution and delivery of the Commission's Documents, or the
adoption of the Bond Resolution as described in the Official Statement has been repealed,
modified, amended, revoked or rescinded; (xi) no approval, permit, consent or authorization
of any governmental or public agency, authority or person having jurisdiction over the
Commission not already obtained and no proceedings not already had are required in
connection with (A) the issuance and sale of the Bonds, (B) the execution and delivery by the
Commission of, or the performance by it of its obligations under, the Bonds, the
Commission's Documents and the Bond Resolution or (C) except as contemplated by the
Official Statement, the issuance and sale of the Bonds or the application of the proceeds of
the sale thereof; (xii) there is no material adverse change in the condition or affairs of the
Commission that would make it unreasonable for the Underwriters or other purchasers of the
Bonds to rely upon the Official Statement in connection with the resale of the Bonds, and the
Underwriters are hereby authorized to distribute copies of the Official Statement in
connection with the resale of the Bonds; and (xiii) the Commission has complied with all the
agreements and satisfied all the conditions on its part to be performed or satisfied at or prior
to the date of issuance of the Bonds with respect to the issuance of the Bonds;
(vii) A certificate, dated the Closing Date, signed by a duly authorized
official of the Trustee (hereinafter in this paragraph referred to as the "Bank);
(A) the Bank is a national banking association organized and
existing under and by virtue of the laws of the United States of America, having the full
power and being qualified to enter into and perform its duties under the Indenture and the
Continuing Disclosure Certificate;
(B) the Bank is duly authorized to enter into the Indenture and the
Continuing Disclosure Agreement (hereinafter collectively referenced as the "Bank
Documents") and Bank has duly executed and delivered the Bank Documents;
(C) the execution and delivery of the Bank Documents and
compliance with the provisions on Bank's part contained therein, will not conflict with or
constitute a breach of or default under any law, administrative regulation, judgment, decree,
loan agreement, indenture, bond, note, resolution, agreement or other instrument to which
Bank is a party or is otherwise subject (except that no representation, warranty or agreement
is made with respect to any federal or state securities or blue sky laws or regulations), nor
will any such execution, delivery, adoption or compliance result in the creation or imposition
of any lien, charge or other security interest or encumbrance of any nature whatsoever upon
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any of the properties or assets held by Bank pursuant to the Indenture under the terms of any
such law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note,
resolution, agreement or other instrument, except as provided by the Indenture;
(D) to the best of the knowledge of Bank, it has not been served
with any action, suit, proceeding, inquiry or investigation, at law or in equity, before or by
any court, governmental agency, public board or body, nor is any such action or other
proceeding threatened against Bank, as such but not in its individual capacity, affecting the
existence of Bank, or the titles of its officers to their respective offices or seeking to prohibit,
restrain or enjoin the collection of Sales Tax Revenues to be applied to pay the principal,
premium, if any, and interest on the Bonds, or the pledge thereof, or in any way contesting or
affecting the validity or enforceability of the Bank Documents, or contesting the powers of
Bank or its authority to enter into, adopt or perform its obligations under any of the
foregoing, wherein an unfavorable decision, ruling or finding would materially adversely
affect the validity or enforceability of the Bank Documents;
(E) the Bank will apply the proceeds from the Bonds as provided
in the Indenture.
(viii) an opinion of counsel to the Trustee, addressed to the Underwriters, in
form and substance satisfactory to the Representative, to the effect that the Trustee is a
national banking association with due power and authority to execute the Original Indenture
and the First Supplemental Indenture, and that the Indenture is in effect and is valid and
binding upon the Trustee;
(ix) a copy of the Official Statement, executed on behalf of the
Commission by a person duly authorized to sign on behalf of the Commission;
(x) a certified copy of the general resolution or resolutions of the Trustee
authorizing the execution and delivery of the Indenture and the Bonds;
(xi) certified copies of the resolution or resolutions of the Commission
authorizing the execution and delivery of the Commission's Documents;
(xii) a copy of the Preliminary Blue Sky Memorandum with respect to the
Bonds, prepared by Underwriters' Counsel;
(xiii) 8038-G. Evidence that the federal tax information form 8038-G
relating to the Bonds has been prepared for filing;
(xiv) Tax Certificate. A tax certificate relating to the Bonds in form
satisfactory to Bond Counsel and the Underwriters
(xv) CDIAC Statements. A copy of the Notices of Sale required to be
delivered to the California Debt Investment and Advisory Commission pursuant to Sections
8855(g) and 53583 of the California Government Code;
(xvi) Ratings. Evidence that any ratings on the Bonds described in the
Official Statement are in full force and effect as of the date of the Closing; and
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"
( x v i i ) A C e r t i f i c a t e , d a t e d t h e C l o s i n g D a t e , s i g n e d b y a n a u t h o r i z e d
r e p r e s e n t a t i v e o f F i e l d m a n R o l a p p & A s s o c i a t e s , F i n a n c i a l A d v i s o r t o t h e C o m m i s s i o n , t o
t h e e f f e c t t h a t n o i n f o r m a t i o n c a m e t o s u c h r e p r e s e n t a t i v e ' s a t t e n t i o n w h i c h g i v e s s u c h
r e p r e s e n t a t i v e r e a s o n t o b e l i e v e t h a t t h e s t a t e m e n t s a n d i n f o r m a t i o n i n t h e O f f i c i a l S t a t e m e n t
u n d e r t h e c a p t i o n " P L A N O F F I N A N C E " c o n t a i n a n y u n t r u e s t a t e m e n t o f a m a t e r i a l f a c t o r
o m i t t o s t a t e a m a t e r i a l f a c t n e c e s s a r y i n o r d e r t o m a k e t h e s t a t e m e n t s m a d e t h e r e i n , i n l i g h t
o f t h e c i r c u m s t a n c e s u n d e r w h i c h t h e y w e r e m a d e , n o t m i s l e a d i n g ;
( x v i i i ) A c e r t i f i e d c o p y o f t h e p r o c e e d i n g s r e l a t i n g t o a u t h o r i z a t i o n a n d
a p p r o v a l o f t h e S a l e s T a x , i n c l u d i n g : ( i ) a c e r t i f i e d c o p y o f t h e O r d i n a n c e ; a n d ( i i ) a
c e r t i f i c a t i o n f r o m t h e R e g i s t r a r o f V o t e r s i n t h e C o u n t y o f R i v e r s i d e c o n c e r n i n g r e s u l t s o f t h e
N o v e m b e r 8 , 1 9 8 8 e l e c t i o n a n d ( i i i ) a c e r t i f i c a t i o n f r o m t h e R e g i s t r a r o f V o t e r ; i n t h e C o u n t y
o f R i v e r s i d e c o n c e r n i n g r e s u l t s o f t h e N o v e m b e r 5 , 2 0 0 2 e l e c t i o n ;
( x i x ) A c o p y o f t h e e x e c u t e d A g r e e m e n t f o r S t a t e A d m i n i s t r a t i o n o f
T r a n s a c t i o n s a n d U s e T a x , b e t w e e n t h e C o m m i s s i o n a n d t h e C a l i f o r n i a S t a t e B o a r d o f
E q u a l i z a t i o n , i n c l u d i n g a l l a m e n d m e n t s t h e r e t o ;
( x x ) A c o p y o f t h e B l a n k e t L e t t e r o f R e p r e s e n t a t i o n t o D T C r e l a t i n g t o t h e
B o n d s s i g n e d b y D T C a n d t h e C o m m i s s i o n ;
( x x i ) s u c h a d d i t i o n a l c e r t i f i c a t e s , l e g a l o p i n i o n s o f B o n d C o u n s e l ,
D i s c l o s u r e C o u n s e l o r o t h e r c o u n s e l a n d s u c h o t h e r i n s t r u m e n t s o r d o c u m e n t s a s t h e
U n d e r w r i t e r s ' C o u n s e l , D i s c l o s u r e C o u n s e l o r B o n d C o u n s e l r e a s o n a b l y r e q u e s t t o e v i d e n c e
t h e t r u t h a n d a c c u r a c y a s o f t h e d a t e h e r e o f a n d a s o f t h e C l o s i n g D a t e o f i n f o r m a t i o n
c o n t a i n e d i n t h e O f f i c i a l S t a t e m e n t a n d t h e r e p r e s e n t a t i o n s a n d w a r r a n t i e s c o n t a i n e d h e r e i n
a n d i n t h e O f f i c i a l S t a t e m e n t a n d t h e d u e s a t i s f a c t i o n a s o r p r i o r t o t h e C l o s i n g D a t e o f a l l
c o n d i t i o n s t h e n t o b e s a t i s f i e d i n c o n n e c t i o n w i t h t h e t r a n s a c t i o n c o n t e m p l a t e d h e r e b y .
8 . T h e U n d e r w r i t e r s s h a l l b e u n d e r n o o b l i g a t i o n t o p a y a n d t h e C o m m i s s i o n s h a l l p a y
o r c a u s e t o b e p a i d f r o m t h e p r o c e e d s o f t h e B o n d s o r o t h e r f u n d s a v a i l a b l e t o i t t h e e x p e n s e s i n c i d e n t
t o t h e p e r f o r m a n c e o f t h e o b l i g a t i o n s o f t h e C o m m i s s i o n h e r e u n d e r , i n c l u d i n g b u t n o t l i m i t e d t o ( a )
t h e c o s t o f p r i n t i n g o r e n g r a v i n g , a n d m a i l i n g o r d e l i v e r i n g t h e d e f i n i t i v e B o n d s , t h e P r e l i m i n a r y
O f f i c i a l S t a t e m e n t a n d t h e f i n a l O f f i c i a l S t a t e m e n t s i n r e a s o n a b l e q u a n t i t i e s a n d a l l o t h e r d o c u m e n t s
o r t h e c o s t o f r e c o r d i n g a n d f i l i n g s u c h d o c u m e n t s ( o t h e r t h a n a s s e t f o r t h i n t h e n e x t s u c c e e d i n g
p a r a g r a p h ) p r e p a r e d i n c o n n e c t i o n w i t h t h e t r a n s a c t i o n s c o n t e m p l a t e d h e r e b y ; ( b ) t h e f e e s a n d
d i s b u r s e m e n t s o f t h e T r u s t e e , i n c o n n e c t i o n w i t h t h e e x e c u t i o n , s a l e a n d d e l i v e r y o f t h e B o n d s ; ( c )
t h e f e e s a n d d i s b u r s e m e n t s o f t h e B o n d C o u n s e l , D i s c l o s u r e C o u n s e l , G e n e r a l C o u n s e l , a n d a n y o t h e r
e x p e r t s o r c o n s u l t a n t s r e t a i n e d b y t h e C o m m i s s i o n i n c o n n e c t i o n w i t h t h e t r a n s a c t i o n s c o n t e m p l a t e d
h e r e b y ; ( d ) t h e c o s t s r e l a t e d t o o b t a i n i n g r a t i n g s o n t h e B o n d s ; a n d ( e ) C U S I P n u m b e r c o s t .
T h e U n d e r w r i t e r s s h a l l p a y ( a ) C a l i f o r n i a D e b t a n d I n v e s t m e n t A d v i s o r y C o m m i s s i o n f e e s ;
( b ) t h e c o s t o f p r e p a r a t i o n a n d p r i n t i n g o f a n y B l u e S k y M e m o r a n d u m t o b e u s e d b y t h e m ; ( c ) a l l
a d v e r t i s i n g e x p e n s e s i n c o n n e c t i o n w i t h t h e p u b l i c o f f e r i n g o f t h e B o n d s ; a n d ( d ) t h e f e e s a n d
e x p e n s e s o f U n d e r w r i t e r s ' C o u n s e l .
9 . N o c o v e n a n t o r a g r e e m e n t c o n t a i n e d i n t h i s P u r c h a s e A g r e e m e n t s h a l l b e d e e m e d t o
b e a c o v e n a n t o r a g r e e m e n t o f a n y m e m b e r , o f f i c e r , a g e n t o r e m p l o y e e o f t h e C o m m i s s i o n n o r s h a l l
s u c h p e r s o n s b e l i a b l e p e r s o n a l l y u n d e r t h i s P u r c h a s e A g r e e m e n t o r b e s u b j e c t t o a n y p e r s o n a l
D O C S O C / 1 2 7 4 2 1 2 v 4 / 0 2 2 5 8 4 - 0 0 1 5
1 5
2 9 1
liability or accountability solely by reason of the execution of this Purchase Agreement or solely by
reason of the breach or attempted alleged breach hereof by the Commission.
10. Any notice to be given to the Commission under this Purchase Agreement may be
given by delivering the same to the office thereof c/o Riverside County Transportation Commission,
P.O. Box 12008, Riverside, California 92502, and any such notice to be given to the Representative
or the Underwriters may be given by delivering the same to Lehman Brothers, 555 California Street,
30th Floor, San Francisco, California 94104.
11. The Commission hereby authorizes the Official Statement and the information therein
contained to be used by the Underwriters in connection with the public sale of the Bonds. The
Commission consents to the use by the Underwriters prior to the date hereof of the Preliminary
Official Statement in connection with the public offering of the Bonds.
12. This Purchase Agreement shall be governed by, and construed in accordance with,
the laws of the State of California.
13. The representations and warranties of the Commission set forth in or made pursuant
to this Purchase Agreement shall not be deemed to have been discharged, satisfied or otherwise
rendered void by reason of the Closing or termination of this Purchase Agreement and regardless of
any investigations or statements as to the results thereof made by or on behalf of the Underwriters
and regardless of delivery of and payment for the Bonds.
14. This Purchase Agreement, when accepted by the Commission, shall constitute the
entire agreement between the Commission and the Underwriters and is made solely for the benefit of
the Commission and the Underwriters (including the successors of the Underwriters). No other
person shall acquire or have any right hereunder by virtue hereof, except as provided herein.
15. This Purchase Agreement is made solely for the benefit of the Commission and the
Underwriters (including the successors thereof), and no other person, partnership or association shall
acquire or have any right hereunder or by virtue hereof. All representations and agreements by the
Commission in this Purchase Agreement shall remain operative and in full force and effect except as
otherwise provided herein, regardless of any investigations made by or on behalf of the Underwriters
and shall survive the issuance of and payment of the Bonds.
16. This Purchase Agreement may be executed simultaneously in several counterparts
each of which shall be an original and all of which shall constitute but one and the same instrument.
17. The Representative, in its sole discretion, may waive any condition or requirement
imposed upon the Commission as set forth in this Purchase Agreement.
18. This Purchase Agreement shall become effective upon the execution of the
acceptance hereby by the Commission, and shall be valid and binding and enforceable as of the time
of such acceptance.
19. The rights and obligations created by this Purchase Agreement shall not be subject to
assignment by the Underwriters or the Commission without the prior written consent of the other
parties hereto.
16
DOCSOC/ 1274212v4/022584-0015 .
•
292
"
2 0 . I n c a s e a n y o n e o r m o r e o f t h e p r o v i s i o n s , c o n t a i n e d h e r e i n s h a l l f o r a n y r e a s o n t o b e
h e l d i n v a l i d , i l l e g a l o r u n e n f o r c e a b l e i n a n y r e s p e c t , s u c h i n v a l i d i t y , i l l e g a l i t y o r u n e n f o r c e a b i l i t y
s h a l l n o t e f f e c t a n y o t h e r p r o v i s i o n s h e r e o f
2 1 . T h e v a l i d i t y , i n t e r p r e t a t i o n , a n d p e r f o r m a n c e o f t h i s P u r c h a s e A g r e e m e n t s h a l l b e
g o v e r n e d b y t h e l a w s o f t h e S t a t e o f C a l i f o r n i a .
L E H M A N B R O T H E R S , o n b e h a l f o f i t s e l f a n d a s
r e p r e s e n t a t i v e o f t h e U n d e r w r i t e r s
B y :
T h e f o r e g o i n g i s h e r e b y a g r e e d t o a n d
a c c e p t e d a s o f t h e d a t e f i r s t a b o v e w r i t t e n :
R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N C O M M I S S I O N
B y :
D O C S O C / 1 2 7 4 2 1 2 v 4 / 0 2 2 5 8 4 - 0 0 1 5
1 7
2 9 3
0
AGENDA ITEM 10
1
•
i
"
"
"
R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N C O M M I S S I O N
D A T E :
M a y 1 4 , 2 0 0 8
T O :
R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n
F R O M :
P l a n s a n d P r o g r a m s C o m m i t t e e
T a n y a L o v e , P r o g r a m M a n a g e r
T H R O U G H :
A n n e M a y e r , E x e c u t i v e D i r e c t o r
S U B J E C T :
T r a d e C o r r i d o r s I m p r o v e m e n t F u n d P r o g r a m o f P r o j e c t s a n d N e x t
S t e p s R e p o r t
P L A N S A N D P R O G R A M S C O M M I T T E E A N D S T A F F R E C O M M E N D A T I O N :
T h i s i t e m i s f o r t h e C o m m i s s i o n t o r e c e i v e a n u p d a t e o n t h e T r a d e C o r r i d o r s
I m p r o v e m e n t F u n d ( T C I F ) a p p r o v e d p r o g r a m o f p r o j e c t s a n d N e x t S t e p s r e p o r t .
B A C K G R O U N D I N F O R M A T I O N
I n N o v e m b e r 2 0 0 6 , t h e v o t e r s p a s s e d P r o p o s i t i o n 1 B , w h i c h p r o v i d e d $ 2 b i l l i o n i n
f u n d i n g f o r g o o d s m o v e m e n t . T h a t p o t s u b s e q u e n t l y " g r e w " t o a p p r o x i m a t e l y
$ 3 b i l l i o n t h r o u g h t h e u s e o f S t a t e H i g h w a y O p e r a t i o n a n d P r o t e c t i o n P r o g r a m
( S H O P P ) d o l l a r s a n d u n s p e c i f i e d a d d i t i o n a l f u n d i n g e . g . c o n g r e s s i o n a l f u n d i n g
a n d / o r c o n t a i n e r f e e s . F o r t h e p a s t s e v e r a l m o n t h s , C o m m i s s i o n s t a f f h a s b e e n
w o r k i n g c l o s e l y w i t h s t a f f f r o m t h e c i t i e s o f B a n n i n g , C o r o n a , a n d R i v e r s i d e a s w e l l
a s t h e c o u n t y o f R i v e r s i d e a n d t h e C o a c h e l l a V a l l e y A s s o c i a t i o n o f G o v e r n m e n t s
( s p o n s o r i n g a g e n c i e s ) t o d e v e l o p p r o j e c t a p p l i c a t i o n s a s p a r t o f t h e T C I F f u n d i n g
o p p o r t u n i t y .
A s s h o w n o n t h e a t t a c h m e n t , t h e C o m m i s s i o n , o n b e h a l f o f t h e s p o n s o r i n g
a g e n c i e s , s u b m i t t e d a p p l i c a t i o n s f o r 1 3 f i r s t t i e r p r o j e c t s t o t a l i n g $ 5 9 6 . 1 m i l l i o n ; o f
t h a t a m o u n t $ 1 6 9 m i l l i o n w a s r e q u e s t e d i n T C I F f u n d i n g . T h e s e c o n d t i e r
a p p l i c a t i o n s i d e n t i f i e d t h r e e p r o j e c t s f o r a t o t a l c o s t o f $ 2 0 1 . 7 m i l l i o n ; a T C I F
m a t c h o f $ 5 0 . 7 m i l l i o n w a s r e q u e s t e d . T h e p r o j e c t s u b m i t t a l s w e r e b a s e d o n t h e
e c o n o m i c c o n t r i b u t i o n s , c o n g e s t i o n r e l i e f , a n d h e a l t h i m p a c t s t o R i v e r s i d e C o u n t y
r e s i d e n t s .
I n J a n u a r y 2 0 0 8 , t h e C a l i f o r n i a T r a n s p o r t a t i o n C o m m i s s i o n ( C T C ) r e c e i v e d
8 4 n o m i n a t i o n s c o n s i s t i n g o f 1 0 7 i n d i v i d u a l p r o j e c t s , t o t a l i n g $ 4 . 1 b i l l i o n o f T C I F
f u n d i n g r e q u e s t s . R e q u e s t f o r T C I F f u n d i n g e x c e e d e d t h e C T C T r a d e C o r r i d o r
t a r g e t s a n d a s a r e s u l t , o n l y t i e r 1 p r o j e c t s w e r e f u n d e d . A t i t s A p r i l 2 0 0 8
A g e n d a I t e m 1 0
2 9 4
meeting, the CTC approved projects totaling $3.088 billion for 79 projects; of that
amount, $162.7 million' in funding was approved for the following Riverside
County projects:
Sponsoring Agency
City of Banning
City of Corona
City of Riverside
County of Riverside
Next Steps in TCIF Process
Project
Sunset Avenue
Auto Center Drive
3rd Street
Columbia Avenue
Iowa Avenue
Magnolia Avenue (UP)
Riverside Avenue
Streeter Avenue
Avenue 56
Avenue 66
Clay Street
Magnolia Avenue (BNSF)
March Inland Cargo
Airport, 1-215 Van Buren
Ground Access Improvement
TCIF
Amount
(in millions)
$10.0
$16.0
$17.5
$ 6.0
$13.0
$ 20.0
$ 8.5
$15.5
$10.0
$10.0
$12.5
$13.7
$10.0
CTC Approved Funding: $162.7
The CTC staff identified several critical issues that will need to be further
developed as part of the next steps in the TCIF process:
• Budget appropriation and allocation will occur through legislative process;
• Deliverability: Projects must commence construction by December 31,
2013. CTC staff has expressed concern that several projects may not be
able to achieve environmental clearance in time for the remaining
pre -construction project development activities to take place by the
December 2013 date. It is anticipated that in Spring 2010, CTC staff will
review the program status; any project that does not have environmental
clearance at that time is in risk of being dropped from the program. CTC
staff will work with the sponsoring agencies during the development of
baseline agreements to further address this issue.
$169 million was requested; however, due to funding requests exceeding revenue, transportation
commissions were requested to reduce project funding requests. As a result, the requested funding
for Magnolia (BNSF) grade separation was reduced from $20 million to $13.7 million.
Agenda Item 10
295
"
P r o j e c t s i n R i v e r s i d e C o u n t y t h a t a r e p o t e n t i a l l y a t r i s k i n c l u d e g r a d e
s e p a r a t i o n s a t A v e n u e 5 6 ( e n v i r o n m e n t a l c l e a r a n c e p r o j e c t e d f o r J u n e
2 0 1 0 ) a n d A v e n u e 6 6 ( e n v i r o n m e n t a l c l e a r a n c e p r o j e c t e d f o r
S e p t e m b e r 2 0 1 0 ) .
" D e v e l o p m e n t o f . b a s e l i n e a g r e e m e n t s w i l l b e i n i t i a t e d u p o n a d o p t i o n o f t h e
p r o g r a m a n d w i l l b e c o m e t h e b a s i s f o r d e t e r m i n i n g a c c o u n t a b i l i t y . T h e
a g r e e m e n t s w i l l s e t f o r t h t h e p r o p o s e d s c o p e , e x p e c t e d b e n e f i t s , d e l i v e r y
s c h e d u l e a n d p r o j e c t c o s t a n d f u n d i n g p l a n . O n c e c o m p l e t e d , a n y
a m e n d m e n t s t o t h e s c o p e , p r o j e c t b e n e f i t s , s c h e d u l e a n d / o r c o s t w i l l r e q u i r e
C T C a p p r o v a l . F o l l o w i n g i s t h e s c h e d u l e f o r c o m p l e t i o n o f t h e b a s e l i n e
a g r e e m e n t s :
J u l y 2 0 0 8 : A g r e e m e n t s w i l l b e p r e s e n t e d t o t h e C T C f o r h i g h w a y
p r o j e c t s ; a n d
S e p t e m b e r 2 0 0 8 : A g r e e m e n t s w i l l b e p r e s e n t e d t o t h e C T C f o r g r a d e
s e p a r a t i o n a n d m a i n l i n e r a i l p r o j e c t s .
- �� N o t e : I f a g r e e m e n t s a r e n o t e x e c u t e d b y t h e s p e c i f i e d d a t e , t h e
p r o j e c t w i l l b e e l i m i n a t e d f r o m t h e p r o g r a m .
" S u p p l e m e n t a l F u n d i n g a n d t h e 1 : 1 M a t c h : S e v e r a l p r o j e c t f u n d i n g p l a n s
i n c l u d e d r e f e r e n c e s t o u n s e c u r e d o r f u t u r e r e v e n u e s o u r c e s ( e . g . f u t u r e
c o n t a i n e r f e e s , f u t u r e t o l l a u t h o r i t y , r a i l r o a d c o n t r i b u t i o n s , P u b l i c U t i l i t i e s
C o m m i s s i o n ( P U C ) 1 9 0 f u n d s , e t c . ) . A s p a r t o f t h e b a s e l i n e a g r e e m e n t s , t h e
C T C r e q u i r e s t h a t f u n d i n g p l a n s m u s t b e i d e n t i f i e d a n d c o m m i t t e d t h r o u g h
t h e f o r m o f r e g i o n a l b o a r d o r l o c a l c o m m i s s i o n a c t i o n s o r r e s o l u t i o n s .
S p o n s o r i n g a g e n c i e s w i l l h a v e t h e a b i l i t y t o s u b s t i t u t e c o m m i t t e d l o c a l ,
f e d e r a l o r p r i v a t e f u n d s w i t h n e w l y g e n e r a t e d l o c a l f u n d s w h e n t h o s e f u n d s
b e c o m e a v a i l a b l e . P r o j e c t s i n R i v e r s i d e C o u n t y t h a t a r e p o t e n t i a l l y a t r i s k
i n c l u d e :
A u t o C e n t e r D r i v e , C o l u m b i a A v e n u e , I o w a A v e n u e , M a g n o l i a A v e n u e
( U P l i n e ) , a n d S u n s e t A v e n u e d u e t o t h e i d e n t i f i c a t i o n o f P U C
S e c t i o n 1 9 0 f u n d s ;
P r o j e c t s p o t e n t i a l l y a t r i s k d u e t o P U C S e c t i o n 1 9 0 f u n d s a s w e l l a s
c o n t a i n e r f e e s i n c l u d e : 3 r d S t r e e t , C l a y S t r e e t , M a g n o l i a A v e n u e
( B N S F L i n e ) , R i v e r s i d e A v e n u e , a n d S t r e e t e r A v e n u e ;
T h e g r a d e s e p a r a t i o n p r o j e c t f o r A v e n u e 6 6 i d e n t i f i e d P U C S e c t i o n
1 9 0 m a t c h f u n d s t h a t m a y b e a v a i l a b l e t h r o u g h t h e C o m m i s s i o n ;
h o w e v e r , t h e p r o j e c t i s n o t o n t h e P U C S e c t i o n 1 9 0 l i s t a n d a s a
r e s u l t , w o u l d n o t b e e l i g i b l e f o r t h e c o m m i s s i o n ' s m a t c h i n g f u n d s . A s
a r e s u l t , t h i s p r o j e c t i s a l s o a t r i s k ; a n d
A g e n d a I t e m 1 0
2 9 6
The March Inland Cargo Airport — 1-215 Van Buren ground access
improvement project may be at risk as it identified a 87 million
contribution in right-of-way costs and $39 million in the Commission's
Regional Arterial Measure A funds.
Air Quality and Emission Reduction: Screening at the regional level is
complete; however, CTC staff is currently reviewing projects to identify
which projects could have a potential impact at the local level. Those
projects that are identified as such will be flagged for conditional language
that will be included in the project's baseline agreement. CTC staff will
monitor the progress of the environmental process and will require that the
sponsoring agency demonstrate concurrence to recommended mitigation
strategies;
3 Note: The commission is the lead agency on an environmental
justice and community outreach study. It is recommended that
staff from the sponsoring agencies participate on the
Environmental Justice Technical Advisory Committee as the
focus will be on developing a guidebook on mitigation strategies
related to goods movement.
• Overprogramming: The TCIF program is over subscribed by approximately
$650 million. The approved TCIF project funding is based on the availability
of future revenue sources (e.g. additional federal funding, user fees, tolls,
etc.). Should that level of funding not materialize, the projects will have to
be re -calibrated to fit within available funding levels;
• Public -Private Benefits and Memorandum of Understanding (MOU): As part
of the baseline agreement process, MOUs will need to be developed and
negotiated with respect to public and private benefits related to projects that
involve investments in rail facilities; and
• Grade Separation Projects: A master agreement or MOU for grade
separation projects will be required to accompany the baseline agreement.
Coordination with railroad agencies is extremely critical as this may have a
detrimental effect on the proposed scope, the cost to construct temporary
facilities for the railroad, or the level of financial commitments expected from
the railroad agency, as well as the delivery schedule.
In preparation for the baseline agreements related to grade separation projects, the
commission is working with the Southern California Consensus Group and the CTC
to convene an initial joint meeting to discuss the potential impacts to the railroads.
As stated in the CTC staff report:
Agenda Item 10
•
297
"
" M a n y o f t h e p r o p o s e d g r a d e s e p a r a t i o n s a r e l o c a t e d a l o n g c o r r i d o r s t h a t
e i t h e r U P o r B N S F , o r b o t h , o w n a n d o p e r a t e . M a n y o f t h e g r a d e s e p a r a t i o n s
p r o p o s e a l t e r n a t i v e s t h a t w o u l d r e q u i r e t h e t e m p o r a r y r e l o c a t i o n o f r a i l r o a d
t r a c k s t o c o n s t r u c t a v e h i c u l a r r o a d w a y b e l o w t r a c k s t h a t m u s t r e m a i n i n f u l l
o p e r a t i o n d u r i n g c o n s t r u c t i o n . C o o r d i n a t i o n w i t h r a i l r o a d a g e n c i e s i s
e x t r e m e l y c r i t i c a l "
T h e i n t e n t o f t h e j o i n t m e e t i n g i s t o e n s u r e t h a t u n i f o r m a n d c o m p r e h e n s i v e d a t a
f o r a l l 2 9 T C I F g r a d e s e p a r a t i o n p r o j e c t s c a n b e p r e s e n t e d t o g e t h e r w i t h a m a p o f
t h e p r o j e c t l o c a t i o n s . I t i s a n t i c i p a t e d t h a t t h e d a t a a n d m a p w i l l a s s i s t s t a f f i n
e v a l u a t i n g w h e t h e r t h e c o m b i n e d e f f e c t o f t h e p r o j e c t s c r e a t e a p r o b l e m f o r t h e
r a i l r o a d s a s w e l l a s p o t e n t i a l i m p a c t s t o p r o j e c t d e l i v e r y .
K e y t o s u c c e s s i n t h e n e x t s t e p s c a t e g o r y w i l l b e t h e f i n a l i z a t i o n o f t h e b a s e l i n e
a g r e e m e n t s a n d p r o j e c t d e l i v e r a b i l i t y b y t h e l e a d a g e n c i e s .
A t t a c h m e n t : P r o j e c t L i s t
A g e n d a I t e m 1 0
2 9 8
"
R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n
P r o j e c t L i s t
T r a d e C o r r i d o r I m p r o v e m e n t F u n d
J a n u a r y 1 7 , 2 0 0 8
P r o j e c t N a m e
T o t a l
P r o j e c t
C o s t
T C I F R e q u e s t
( i n M i l l i o n s )
T i e r 1
A C E : C o l u m b i a A v e n u e G r a d e S e p a r a t i o n ( B N S F & U P )
$ 2 9 . 1
$ 6 . 0
A C E : A u t o C e n t e r D r i v e G r a d e S e p a r a t i o n ( B N S F )
$ 3 2 . 0
$ 1 6 . 0
A C E : M a g n o l i a A v e n u e G r a d e S e p a r a t i o n ( U P )
$ 5 1 . 2
$ 2 0 . 0
A C E : I o w a A v e n u e G r a d e S e p a r a t i o n ( B N S F & U P )
$ 3 2 . 0
$ 1 3 . 0
A C E : S u n s e t A v e n u e G r a d e S e p a r a t i o n ( U P )
$ 3 6 . 5
$ 1 0 . 0
A C E : S t r e e t e r A v e n u e G r a d e S e p a r a t i o n ( U P )
$ 3 6 . 8
$ 1 5 . 5
A C E : A v e n u e 5 6 G r a d e S e p a r a t i o n ( U P )
$ 6 0 . 0
$ 1 0 . 0
A C E : A v e n u e 6 6 G r a d e S e p a r a t i o n ( U P )
$ 3 3 . 5
$ 1 0 . 0
A C E : C l a y S t r e e t G r a d e S e p a r a t i o n ( U P )
$ 3 7 . 0
$ 1 2 . 5
A C E : R i v e r s i d e A v e n u e G r a d e S e p a r a t i o n ( U P )
$ 3 0 . 3
$ 8 . 5
A C E : 3 ` d S t r e e t G r a d e S e p a r a t i o n ( B N S F & U P )
$ 4 0 . 2
$ 1 7 . 5
A C E : M a g n o l i a A v e n u e G r a d e S e p a r a t i o n ( B N S F )
$ 8 0 . 0
$ 2 0 . 0
M a r c h I n l a n d C a r g o P o r t A i r p o r t - 1 - 2 1 5 V a n B u r e n
G r o u n d A c c e s s I m p r o v e m e n t P r o j e c t
$ 9 7 . 5
$ 1 0 . 0
T o t a l T i e r 1
$ 5 9 6 . 1
$ 1 6 9 . 0
T i e r 2
A C E : M a r y S t r e e t G r a d e S e p a r a t i o n ( U P )
$ 3 8 . 0
$ 1 7 . 7
A C E : J u r u p a R o a d G r a d e S e p a r a t i o n ( U P )
$ 1 0 8 . 4
$ 1 0 . 0
1 - 1 0 / S R 6 0 T r u c k C l i m b i n g L a n e
$ 5 5 . 3
$ 2 3 . 0
T o t a l T i e r 2
$ 2 0 1 . 7
$ 5 0 . 7
2 9 9
AGENDA ITEM 11
-fir
"
R I V E R S I D E
C O U N T Y T R A N S P O R T A T I O N C O M M I S S I O N
D A T E :
M a y 1 4 , 2 0 0 8
T O :
R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n
F R O M :
S a n J a c i n t o B r a n c h L i n e A d H o c C o m m i t t e e
S t e p h a n i e W i g g i n s , R e g i o n a l P r o g r a m s D i r e c t o r
T H R O U G H :
A n n e M a y e r , E x e c u t i v e D i r e c t o r
S U B J E C T :
P e r r i s V a l l e y L i n e F r e i g h t S t u d y
S A N J A C I N T O B R A N C H L I N E A D H O C C O M M I T T E E A N D S T A F F
R E C O M M E N D A T I O N :
T h i s i t e m i s f o r t h e C o m m i s s i o n t o r e c e i v e a n d f i l e a p r e s e n t a t i o n o n t h e f i n d i n g s o f
t h e d r a f t P e r r i s V a l l e y L i n e ( P V L ) F r e i g h t S t u d y .
B A C K G R O U N D I N F O R M A T I O N :
S a n J a c i n t o B r a n c h L i n e A d H o c C o m m i t t e e m e m b e r s r e q u e s t e d a n a n a l y s i s o f t h e
i m p a c t s t o f r e i g h t t r a f f i c o n c e t h e i m p r o v e m e n t o f t h e t r a c k s f o r t h e P V L a r e
c o m p l e t e d . W i l b u r S m i t h a n d A s s o c i a t e s c o n d u c t e d a s t u d y t o :
" D o c u m e n t t h e c u r r e n t f r e i g h t r a i l s h i p p e r s , t h e i r f r e i g h t c a r l o a d v o l u m e s , a n d
a n y v o l u m e t r e n d s ; a n d
" D e t e r m i n e i f i m p r o v e m e n t s p l a n n e d f o r t h e P e r r i s V a l l e y L i n e c o m m u t e r r a i l
s e r v i c e w i l l f a c i l i t a t e a n y e x p a n s i o n o f s h i p p e r v o l u m e s .
S t u d y F i n d i n g s
T h e s t u d y i d e n t i f i e d e i g h t s h i p p e r s o n t h e S a n J a c i n t o B r a n c h L i n e :
P e r r i s V a l l e y L i n e S h i p p e r V o l u m e s
S h i p p e r
C i t y
C o m m o d i t y R e c e i v e d
W e e k l y
C a r l o a d s
Q u e b e c o r
R i v e r s i d e
R o l l e d p a p e r s t o c k
1 9 . 2 5
A O C R e s i n s
P e r r i s
C h e m i c a l s f o r r e s i n
6 . 5 0
C a l T r u s s
P e r r i s
L u m b e r
2 . 5 0
M W D
P e r r i s
C h l o r i n e
0 . 2 5
M c A n a l l y E n t e r p r i s e s
P e r r i s
C o m a n d s o y m e a l
1 6 . 5 0
J M E a g l e
P e r r i s
R e s i n
9 . 0 0
S t a r M i l l i n g C o .
P e r r i s
G r a i n s
2 0 . 0 0
T e a m T r a c k
P e r r i s
V a r i o u s
2 . 0 0
G r o v e L u m b e r
R o m o l a n d
L u m b e r / W o o d
4 0 . 0 0
T o t a l
1 1 6 . 0 0
A g e n d a I t e m 1 1
3 0 0
"
I m p r o v e m e n t s i n t h e l i n e t o s u p p o r t c o m m u t e r r a i l s e r v i c e m a y e n a b l e B u r l i n g t o n
N o r t h e r n S a n t a F e ( B N S F ) r a i l r o a d t o o p e r a t e a t h i g h e r s p e e d s t h a n i t d o e s n o w .
F r e i g h t t r a i n s a r e l i m i t e d t o 2 0 m p h n o r t h o f P e r r i s , a n d 1 0 m p h t h r o u g h P e r r i s t o
R o m o l a n d . F a s t e r s p e e d s m a y t h e o r e t i c a l l y r e s u l t i n a s m a l l s a v i n g s i n l a b o r c o s t
t o B N S F , b u t s i n c e m o s t o f t h e t i m e i n v o l v e d i s d e v o t e d t o l o c a l s w i t c h i n g a c t i v i t y ,
a n y b e n e f i t t o B N S F w o u l d b e i n c o n s e q u e n t i a l i n , t h e o v e r a l l c o s t o f d e l i v e r i n g
l o a d e d c a r s a n d r e t u r n i n g w i t h e m p t y c a r s . F u r t h e r m o r e , t h e i n b o u n d t r a i n s w i t h
h e a v y c a r l o a d s w o u l d s t i l l h a v e t o c l i m b a g r a d e t h r o u g h B o x S p r i n g s C a n y o n f r o m
R i v e r s i d e a t a l o w s p e e d . G i v e n t h e c u r r e n t a n d f o r e c a s t c a r l o a d v o l u m e s , t h e
i m p r o v e m e n t s p l a n n e d f o r t h e P e r r i s V a l l e y L i n e c o m m u t e r r a i l s e r v i c e w i l l n o t
f a c i l i t a t e a n y e x p a n s i o n o f s h i p p e r v o l u m e s .
J u s t i n F o x o f W i l b u r S m i t h & A s s o c i a t e s w i l l p r e s e n t t h e f i n d i n g s o f t h e F r e i g h t .
S t u d y a t t h e C o m m i s s i o n m e e t i n g .
A t t a c h m e n t : D r a f t R e p o r t - P e r r i s V a l l e y L i n e F r e i g h t S t u d y , W i l b u r S m i t h &
A s s o c i a t e s
P e r a r a i l r o a d t i m e t a b l e .
A g e n d a I t e m 1 1 3 0 1
"
"
"
F i n a l R e p o r t
P E R R I S V A L L E Y L I N E F R E I G H T S T U D Y
S t u d y P u r p o s e
T h e P e r r i s V a l l e y L i n e ( P V L ) F r e i g h t S t u d y i s p r e p a r e d f o r t h e S a n J a c i n t o B r a n c h L i n e A d H o c C o m m i t t e e
o f t h e R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n ( R C T C ) . T h e p u r p o s e o f t h i s s t u d y i s t w o f o l d . F i r s t ,
t h e S t u d y d o c u m e n t s t h e c u r r e n t f r e i g h t r a i l s h i p p e r s o n t h e S a n J a c i n t o B r a n c h L i n e ( w h e r e t h e P V L w i l l
o p e r a t e ) , t h e i r f r e i g h t c a r l o a d v o l u m e s , a n d a n y v o l u m e t r e n d s . S e c o n d , t h e S t u d y s e e k s t o d e t e r m i n e i f
i m p r o v e m e n t s p l a n n e d f o r n e w c o m m u t e r r a i l s e r v i c e o n t h e l i n e w o u l d f a c i l i t a t e a n y e x p a n s i o n o f s h i p p e r
v o l u m e s .
T h e S a n J a c i n t o B r a n c h L i n e i s o w n e d b y t h e R O T C . R C T C p u r c h a s e d t h e l i n e f r o m t h e . f o r m e r A t c h i s o n
T o p e k a a n d S a n t a F e R a i l w a y ( A T S F ) i n 1 9 9 2 . A s a c o n d i t i o n o f t h e s a l e , A T S F r e t a i n e d a n e x c l u s i v e r i g h t t o
s e r v e s h i p p e r s o n t h e l i n e . A T S F ' s s u c c e s s o r r a i l r o a d , t h e B u r l i n g t o n N o r t h e r n a n d S a n t a F e R a i l w a y
( B N S F ) , o p e r a t e s t h e f r e i g h t s e r v i c e o n t h e l i n e t o d a y . T h e r e a p p e a r t o b e u p t o t w o r o u n d t r i p s o r f o u r
t r a i n s p e r d a y o n t h e l i n e .
T h e l i n e r u n s 3 8 m i l e s f r o m H i g h g r o v e a n d a c o n n e c t i o n t o t h e B N S F T r a n s c o n m a i n l i n e i n t h e n o r t h t o S a n
J a c i n t o t o t h e s o u t h e a s t . F o r c o m m u t e r r a i l s e r v i c e , R C T C i s p l a n n i n g t o b u i l d a c o n n e c t i o n u s i n g e x i s t i n g
a n d n e w t r a c k a g e b e t w e e n t h e M e t r o l i n k R i v e r s i d e s t a t i o n a n d t h e n o r t h e r n e n d o f t h e P e r r i s V a l l e y L i n e .
F u t u r e 9 1 L i n e t r a i n s w i l l r u n o n t h e l i n e , b e g i n n i n g t h e i r d a i l y j o u r n e y s f r o m S o u t h P e r r i s .
T h e s t u d y t e a m s o l i c i t e d i n f o r m a t i o n f r o m B N S F w i t h r e g a r d s t o i t s c u r r e n t o p e r a t i o n s o n t h e l i n e . B N S F
d e c l i n e d t o o f f e r c o m m e n t .
O n M a r c h 6 , t h e t e a m v i s i t e d a l l a c t i v e s h i p p e r s o n t h e l i n e w i t h r a i l s p u r s t r a c k s l e a d i n g t o s h i p p e r f a c i l i t i e s
f r o m t h e l i n e i t s e l f . S h i p p e r s w e r e a s k e d a s e r i e s o f q u e s t i o n s a i m e d a t q u a n t i f y i n g r a i l c a r l o a d v o l u m e s a n d
w h e t h e r o r n o t t h e v o l u m e s a r e e x p e c t e d t o g r o w w i t h o r w i t h o u t f u t u r e i m p r o v e m e n t s i n s t a l l e d f o r
c o m m u t e r r a i l o p e r a t i o n s w h i c h w o u l d f a c i l i t a t e f a s t e r f r e i g h t t r a i n s p e e d s . T h e t e a m p o s e d f o l l o w - u p
q u e s t i o n s t o s o m e s h i p p e r s d u r i n g t h e f o l l o w i n g w e e k . A s a c o n s e q u e n c e o f t h e s h i p p e r r e s p o n s e s , t h e t e a m
l e a r n e d b r o a d l y h o w B N S F o p e r a t e s o n t h e l i n e .
F r e i g h t V o l u m e s o n t h e P e r r i s V a l l e y L i n e
T h e r e a r e 8 s h i p p e r s w i t h r a i l s p u r s o f f o f t h e P e r r i s V a l l e y L i n e b e t w e e n R i v e r s i d e s o u t h o f E a s t r i d g e
A v e n u e a n d R o m o l a n d . T h e r e i s a l s o a p u b l i c l o a d i n g a n d u n l o a d i n g f a c i l i t y i n P e r r i s , k n o w n a s a t e a m t r a c k ,
w h o s e u s e r s a r e l i k e l y s m a l l . B a s e d o n c o n v e r s a t i o n s w i t h o f f i c i a l s k n o w l e d g e a b l e o f r a i l s h i p m e n t s a t e a c h
s i t e , t h i s s t u d y e s t i m a t e s t h a t t h e l i n e h a n d l e s a b o u t 1 1 6 c a r l o a d s p e r w e e k , o r a y e a r l y v o l u m e o f j u s t o v e r
6 , 0 0 0 c a r l o a d s . T h e s h i p p e r s a n d t h e i r w e e k l y v o l u m e s a r e c i t e d i n T a b l e 1 . T h e s p e c i f i c s o f t h e i r r a i l s e r v i c e
a r e d i s c u s s e d i n t h e s u b s e q u e n t s e c t i o n . T h e l o c a t i o n s o f t h e s h i p p e r s a n d t h e P e r r i s t e a m t r a c k a p p e a r i n
F i g u r e 1 .
1 0 2 4 2 4
P E R R I S V A L L E Y L I N E F R E I G H T S T U D Y W I L B U R S A U D I A S S O C I A T E S
P a g e 1
3 0 2
"
"
"
F i g u r e 1
P e r r i s V a l l e y L i n e S h i p p e r L o c a t i o n s
1 0 2 4 2 4
P E R R I S V A L L E Y U N E F R E I G H T S T U D Y
P a g e 2
W I f B U R S M I T H A S S O C I A T E S
3 0 3
"
"
"
T a b l e 1
P e r r i s V a l l e y L i n e S h i p p e r V o l u m e s
S h i p p e r
C i t y
C o m m o d i t y R e c e i v e d
W e e k l y
C a r l o a d s
Q u e b e c o r
R i v e r s i d e
R o l l e d p a p e r s t o c k
1 9 . 2 5
A O C R e s i n s
P e r r i s
C h e m i c a l s f o r r e s i n
6 . 5 0
C a l T r u s s
P e r r i s
L u m b e r
2 . 5 0
M W D
P e r r i s
C h l o r i n e
0 . 2 5
M c A n a l l y E n t e r p r i s e s
P e r r i s
C o r n a n d s o y m e a l
1 6 . 5 0
J M E a g l e
P e r r i s
R e s i n
9 . 0 0
S t a r M i l l i n g C o .
P e r r i s
G r a i n s
2 0 . 0 0
T e a m T r a c k
P e r r i s
V a r i o u s
2 . 0 0
G r o v e L u m b e r
R o m o l a n d
L u m b e r / W o o d
4 0 . 0 0
T o t a l
1 1 6 . 0 0
T h e c a r l o a d v o l u m e e s t i m a t e s a b o v e a r e b a s e d o n s h i p p e r c o m m e n t s . I f s h i p p e r s t a t e d a r a n g e i n w e e k l y
c a r l o a d s , t h e t a b l e s h o w s t h e a v e r a g e . Q u e b e c o t ' s v o l u m e w a s d e r i v e d f r o m a y e a r l y c a r l o a d t o t a l T h e t e a m
t r a c k f i g u r e i s a W S A e s t i m a t e , b a s e d o n i t s o b s e r v a t i o n .
T h e s h i p p e r i n t e r v i e w s r e v e a l e d t h a t B N S F p r o v i d e s d a i l y s e r v i c e ( i n c l u d i n g w e e k e n d s ) o n t h e P e r r i s V a l l e y
L i n e . B N S F d e l i v e r s l o a d e d c a r s a n d p i c k s u p e m p t y c a r s b o t h d u r i n g t h e d a y a n d a t n i g h t , d e p e n d i n g o n
s h i p p e r p r e f e r e n c e . T h e l i n e a n d m o s t o f t h e s h i p p e r s c a n h a n d l e t h e h e a v i e s t l o a d e d c a r w e i g h t s o f 2 8 6 , 0 0 0
p o u n d s .
I m p a c t o f C o m m u t e r R a i l I m p r o v e m e n t s
I m p l e m e n t a t i o n o f c o m m u t e r r a i l s e r v i c e o n t h e P e r r i s V a l l e y L i n e w i l l c h a n g e t h e o p e r a t i n g e n v i r o n m e n t o n
t h e l i n e . T h e l i n e w i l l b e i m p r o v e d : t r a c k w i l l b e u p g r a d e d a n d p a s s i n g s i d i n g s , p r o v i d i n g m o r e c a p a c i t y t o
a c c o m m o d a t e b o t h f r e i g h t a n d p a s s e n g e r s e r v i c e s , w i l l b e i n s t a l l e d . T h e i m p r o v e m e n t s m a y e n a b l e B N S F t o
o p e r a t e a t h i g h e r s p e e d s t h a n i t d o e s n o w . F r e i g h t t r a i n s a r e l i m i t e d t o 2 0 m p h n o r t h o f P e r r i s , a n d 1 0
r n p h t h r o u g h P e r r i s t o R o m o l a n d . F a s t e r s p e e d s m i g h t t h e o r e t i c a l l y r e s u l t i n a s m a l l s a v i n g s i n l a b o r c o s t
t o B N S F , b u t s i n c e m o s t o f t h e t i m e i n v o l v e d i s d e v o t e d t o l o c a l s w i t c h i n g a c t i v i t y , a n y b e n e f i t t o B N S F
w o u l d b e i n c o n s e q u e n t i a l i n t h e o v e r a l l c o s t o f d e l i v e r i n g l o a d e d c a r s a n d r e t u r n i n g w i t h e m p t y c a r s .
F u r t h e r m o r e , t h e i n b o u n d t r a i n s w i t h h e a v y c a r l o a d s w o u l d s t i l l h a v e t o c l i m b a g r a d e t h r o u g h B o x S p r i n g s
C a n y o n f r o m R i v e r s i d e a t a l o w s p e e d .
I t i s u n l i k e l y a l s o t h a t t h e i m p r o v e m e n t s w i l l b e n e f i t P e r r i s V a l l e y L i n e s h i p p e r s i n a n y m a t e r i a l w a y .
G e n e r a l l y , t h e s h i p p e r s i n t e r v i e w e d a p p e a r e d s a t i s f i e d w i t h B N S F s e r v i c e : t h e y a r e g e t t i n g t h e l e v e l o f s e r v i c e
t h e y w a n t . N o s h i p p e r s i n d i c a t e d t h a t t h e i m p r o v e m e n t s w o u l d h e l p t h e m i n c r e a s e t h e i r r a i l s h i p m e n t s . I t i s
i m p o r t a n t t o n o t e t h a t m o s t o f t h e s e s h i p m e n t s t r a v e l h u n d r e d s i f n o t t h o u s a n d s o f m i l e s a n d s p e n d s e v e r a l
d a y s i n t r a n s i t b e f o r e t h e y g e t t o t h e P e r r i s V a l l e y L i n e . T h u s , a n y m i n o r i m p r o v e m e n t i n f r e i g h t t r a i n s p e e d s
o n t h e l i n e w o u l d b e n e g l i g i b l e i n t h e c o n t e x t o f t o t a l t r a v e l t i m e .
T h e l a r g e s t s h i p p e r o n t h e l i n e , G r o v e L u m b e r , i s l o c a t e d i n R o m o l a n d , w h i c h i s b e y o n d S o u t h P e r r i s , t h e
s o u t h e r n l i m i t o f t h e p l a n n e d i m p r o v e m e n t s f o r t h e P e r r i s V a l l e y L i n e W i t h i t s m a r k e t b e i n g l o c a l h o m e
c o n s t r u c t i o n , t h i s s h i p p e r h a s t h e l a r g e s t p o t e n t i a l f o r r a i l c a r v o l u m e i n c r e a s e s , a l b e i t o n l y w h e n t h e h o u s i n g
m a r k e t r e c o v e r s f r o m i t s c u r r e n t s l u m p . I n d e e d , G r o v e L u m b e r i n t e n d s t o b u i l d a n e w r a i l - s e r v e d f a c i l i t y i n
P e r a r a i l r o a d t i m e t a b l e .
1 0 2 4 2 4
P E R R I S V A L L E Y L I N E F R E I G H T S T U D Y W I L B U R S M I T H A S S O C I A T E S
P a g e 3
3 0 4
Ramoland. Clearly, current conditions on the line to Perris are no constraint for this shipper's expansion
plans.
Line Shippers
Quebecor World
6688 Box Springs Blvd.
Riverside, CA 92507
Contact: Paul Cleveland, Transportation
This facility receives box cars of paper stock which it uses for printing. The paper comes from central and
western Canada, Washington, Oregon, and in some cases from overseas via the Port of Los Angeles. The
facility receives on the low side about 1,000 carloads per year, or almost 20 carloads per week. This volume
should increase about 10 percent over the next year and a half. BNSF serves the plant 6 to 7 days a week.
Cars are spotted (delivered) and picked up both day and night The facility can handle the biggest cars with a
total loaded weight of 286,000 pounds.
AOC Resins California
Oleander and Havrill Avenues
Perris, CA, 92570
Contact: Mitch Bell, Operations Supervisor
This facility receives tank car loads of chemicals for the production of polyester resins. The chemicals are
unloaded into tanker trucks at this facility. The carloads originate in Tennessee. The facility receives about 6
or 7 carloads per week. This volume is expected to grow with the domestic economy or at about 2 or 3
percent per year. Shipments are received on Tuesdays and Thursdays during the day. The facility can receive
maximum car weights of 286,000 pounds, but rarely does so, as smaller cats are more economical.
California Truss Company, Inc. (Cal Truss)
23665 Cajalco Road
Perris, CA 92570
Contact: Dean Turner, Production Manager
This facility receives carloads of lumber for the manufacture of trusses used in construction. Ninety percent
of the lumber comes from Washington, and the remainder from other western states and Canada. The
facility typically receives about 10 carloads per month, or about 2 to 3 carloads per week. This volume is
expected to increase, but by how much and when is unknown. In the past, rail shipments have been two and
a half times what they are today. The facility can receive deliveries day and night Whether or not it can
handle 286,000 pound cars is also unknown.
Metropolitan Water District (MWD)
Chlorine Unloading Facility (CUF)
19765 Patterson Avenue
Perris, CA 92570
Contact: Sergio Ochoa, Facility Manager
102429
PERRIS VALLEY LINE FREIGHT STUDY W►LBUR SMITH ASSOCIATES
Page 4
305
"
T h i s f a c i l i t y r e c e i v e s t a n k c a r s f u l l o f c h l o r i n e . T h e c h l o r i n e c o m e s f r o m H e n d e r s o n , N e v a d a , a n d i s u s e d a s
a w a t e r d i s i n f e c t a n t . T h e c h l o r i n e i s u n l o a d e d f r o m t h e t a n k c a r s i n t o t a n k e r t r u c k s . L a s t y e a r , t h e f a c i l i t y
r e c e i v e d j u s t f o u r t a n k c a r s . B e f o r e t h a t , t h e f a c i l i t y h a d b e e n d o r m a n t . T h e v o l u m e s h o u l d e x p a n d i n t h e
n e a r f u t u r e t o a b o u t a t a n k c a r p e r m o n t h . B N S F d e l i v e r s t h e c a r s d u r i n g t h e d a y . C u r r e n t n e t l o a d s a m o u n t
t o 1 8 0 , 0 0 0 p o u n d s , w i t h t o t a l c a r w e i g h t s a b o u t 2 4 0 , 0 0 0 p o u n d s . M W D r e l a t e d t h a t b e i n g a b l e t o r e c e i v e
h e a v i e r c a r l o a d s w o u l d n o t b e i m p o r t a n t .
M c A n a l l y E n t e r p r i s e s , F e e d D i v i s i o n
2 3 8 4 0 R i d e r S t r e e t
P e r r i s , C A 9 2 5 7 0
C o n t a c t : M a r k J a c o b s , M i l l M a n a g e r
T h i s f a c i l i t y r e c e i v e s h o p p e r c a r s o f s o y b e a n m e a l a n d c o r n , w h i c h i t p r o c e s s e s i n t o f i n i s h e d c h i c k e n f e e d .
T h e f e e d i s t h e n l o a d e d t o t r u c k s f o r d e l i v e r y t o M c A n a l l y ' s a r e a p o u l t t y f a r m s , w h o s e e g g s a r e d i s t r i b u t e d
l o c a l l y . T h e s o y b e a n m e a l c o m e s f r o m K a n s a s , a n d c o r n c o m e s f r o m S o u t h D a k o t a , N e b r a s k a , a n d I o w a .
T h e f a c i l i t y t y p i c a l l y r e c e i v e s b e t w e e n 1 6 a n d 1 7 c a r l o a d s p e r w e e k . T h i s v o l u m e i s l i k e l y t o h o l d s t e a d y f o r
t h e n e x t y e a r o r t w o , a n d t h e n g r o w w i t h t h e l o c a l p o p u l a t i o n . T h e B N S F d e l i v e r s t h e r a i l c a r s M o n d a y
t h r o u g h F r i d a y , d u r i n g t h e d a y . T h e f a c i l i t y c a n h a n d l e m a x i m u m c a r w e i g h t s o f 2 8 6 , 0 0 0 p o u n d s .
J M E a g l e
2 3 7 1 1 R i d e r S t r e e t
P e r r i s , C A 9 2 5 7 0
C o n t a c t : J o e S e a n z , M a t e r i a l s S u p e r v i s o r
T h i s f a c i l i t y r e c e i v e s h o p p e r s o f P V C r e s i n f o r p i p e m a k i n g . T h e P V C c o m e s f r o m p l a n t s i n T e x a s . T h e
f a c i l i t y r e c e i v e s 9 c a r s p e r w e e k o n a v e r a g e . T h e v o l u m e i s a n t i c i p a t e d t o g r o w w i t h t h e e c o n o m y , o r a b o u t 2
t o 3 p e r c e n t p e r y e a r . B N S F s e r v e s t h e p l a n t o n M o n d a y s , W e d n e s d a y s , a n d F r i d a y s . T h e f a c i l i t y c a n r e c e i v e
2 8 6 , 0 0 0 p o u n d c a r s .
S t a r M i l l i n g C o .
2 4 0 6 7 W a t e r S t r e e t
P e r r i s , C A 9 2 5 7 0
C o n t a c t : G a r r i t V a n L e e u w e n , P u r c h a s i n g M a n a g e r
T h i s f a c i l i t y r e c e i v e s h o p p e r c a r s o f g r a i n p r o d u c t s , t h e m a j o r i t y o f w h i c h i s c o r n , o r i g i n a t i n g i n t h e M i d W e s t .
T h e c o r n i s p r o c e s s e d i n t o c h i c k e n f e e d . T h e f a c i l i t y r e c e i v e s a b o u t 2 0 c a r l o a d s a w e e k , a v o l u m e w h i c h i s
l i k e l y t o r e m a i n s t e a d y i n d e f m i t e l y . B N S F s e r v e s t h e f a c i l i t y M o n d a y s t h r o u g h F r i d a y s d u r i n g t h e d a y . T h e
f a c i l i t y c a n h a n d l e m a x i m u m c a r w e i g h t s o f 2 0 5 , 0 0 0 p o u n d s . B e i n g a b l e t o h a n d l e h e a v i e r c a r s w o u l d b e
b e n e f i c i a l t o t h e b u s i n e s s , b y l o w e r i n g t r a n s p o r t a t i o n c o s t s p e r p o u n d o f c o m m o d i t y r e c e i v e d . S t a r M i l l i n g
h a s a n o t h e r f a c i l i t y o n O l e a n d e r S t r e e t , n e a r A O C R e s i n s , w h i c h i s u s e d o n l y f o r c o m c a r s t o r a g e .
1 0 2 9 2 4
P E R R I S V A L L E Y L I N E F R E I G H T S T U D Y W I L B U R S M I T H A S S O C I A T E S
P a g e 5
3 0 6
Team Track
Orange Avenue, Perris
A team track is a facility open'to the public where shippers can load and unload rail cars. The shippers taking
advantage of a team track typically are small shippers, lacking spurs of their own. Such a facility exists just
south of Star Milling, accessible via Orange Avenue. Other than easy access, the chief requirement for a team
track is a siding or spur, where cars can be delivered and picked up after unloading, leaving the branch line
itself clear for trains. The study team spotted rail cars being worked at the team track during its early March
tour of the Perris Valley Line.
Grove Lumber
27126 Watson Road
Romoland, CA 92585
Ron Hillman, Purchasing Manager
This facility receives carloads of lumber and wood products used in housing construction. The origins of the
carloads include Canada, Louisiana, Minnesota, and the Pacific Northwest. The facility receives typically 40
carloads per week, which is down from a high of 70 carloads a week during periods of strong house
construction. The 70-car figure is the facility's current maximum car handling capacity. Even the lower
figure can drop significantly. No major growth is volume is expected to occur this year. The facility receives
cars three days a week and can handle maximum car weights of 286,000 pounds.
Grove Lumber does not expect a stronger market to return until perhaps 2010. The firm is planning on the
development of a new lumber transload facility about one mile southeast of the Watson Road facility along
the portion of the Perris Valley Line that is now out of service. When operational in 2010, that facility will
have the capacity to handle 10 rail cars per day.
102424
PERRIS VALLEY LINE FREIGHT STUDY WILBUR SMITH ASSOCIATES
Page 6
307
Perms Valley Line Freigh-t Study -
Study purpose
Inventory the shippe
Determine if iri provemen
• Methodology .
• Prepared questions
• Contacted BNS
• Visited sh p'pe.rs;o.
•- Made follow=u
anston of shipper:yolumes-
Perms Valley Line
Line runs: 38 miles from BNSF Transcon in; Highgrove,to San Jacinto
Northern portion cli'mbs'a
• RCTC owns •the`line
• BNSF runs daily frei
• 2 to 4 trains-p0(.
• Carib -ads. are inboun
Trains are limite
BNSF appears to'store
4
Line is out of serer
• RCTC is plannin
distant future.
Box Springs; Canyon
n the not too
Perris Valley Line Shiper Locations
SOriiys ',ark
legend
Park n
villeyA us_m d J 6vciI alkrFri_
River:la
f; SNaticnal
-�'Cem�rte
Pe ii,s Vall YUne, ' _
a -Lake Perris Stall
e'rRetr abonal kr
lake. Perris _..
-Perris y-a:10y Li`ne Shipper Specifics
8 shippers with .rail spurs between Riverside and Romoland
• Perris team track'availa
• Shippers receive,
• Shippers are}:gettn
Largest shipper
Perris Valley Li e- Carloads
Shipper
CirtyQy;
aCommo, Received
Weekly
Carloads
Quebecor.
R1 r'si,,
Rolled,lpaper stoclr
19.25
AOC Resins ' ,
..��..
'Perris�'`4 {Chemcals
_ .
afor resin .
6.5
Cal Truss
t
Peris�,;'Lumber,
dra.,, v ri _.,'+.;.E ? .,. �
r ``
-.a.�A..€h3n5+i"H.HKiy ": e.,,,-
2.5
MWD•`}PerrrscY�w$;,.lonne�r
a
a -.
0.25
.
McAnally Enterprises
�iit M.`.`F�.A T yyK
Peres ,
l kL �K1Nz rN' I
o rand s�oV meal z
16.5
JM Eagle
'Perri;s
�"�, �1J?t.:.. �.n.4�'v )._x.Ab� \
es°i aKf}�`
'� R�' Nk .-4s�£ ..r � � .r
9
1 L
Star Milling Co :,r
Pre ns� h'��Grains�
p C
ink f. 5. w. Sh:-'i V S A -'.':"'law.
1�M ✓ V "+
r F'
'+'SJ+Yaa ] SJ. Ni�4 t.
20
Team Track _ s �' ,.e
�" 'yy •Rr Yt" Li'G'' `"XuSS"'rN3 .h`'.7
Perrrs?$�Vangous�,}
t rxt Ei x o- £id t £'i
to r
.%.fia Sw"".y°^.._5tau:a-
2
s
Grove Lumber ts4z
R®moland,yL�i
_A3L",5_ .. y3'IL11YCx5'1 �� ..1
bee/�W.1ood
Wtdni�'!S'L'2aa"�.�,b V }., .3'i'�3:.�. Y.a � _.. _ .__
» .
_ -40
Total Y 3
-
.1;�
ry .'� ='ti t1 ➢1
y y x �P ,
M
--
vTy3 '`m x. fi f 1""
116
"
. P a s s e n g e r T r a i n , I n p r o v e m e n t s t o C h a n g e
o p e r a t i n g E n v r o r ��n n e n t
S e v e r a l m o r e t r a i n s ` w i l l u s e
T r a c k a n d c a p a c i t y u p 0 a
M a x i m u m a l l o w a
Small benefits :for Rail Freight
• BNSF's savings from increase
• Trains will still -have dim
• Once in Perris Valley
• .
m expand their volumes
URGENCY ITEM
RIVERS/DE COUNTY TRANSPORTATION COMM/SS/ON
DATE:
May 14, 2008
TO:
Riverside County Transportation Commission
FROM:
Aaron Hake, Government Relations Manager
THROUGH:
Anne Mayer, Executive Director
SUBJECT:
Resolutions Regarding State Reimbursement for
Commission -Sponsored Legislation
Costs
of
STAFF RECOMMENDATION:
This item is for the Commission to:
1) Adopt Resolution 08-014 "Resolution of the Riverside County Transportation
Commission Certifying that Upon Enactment of Senate Bill 1316, the
Commission Shall Not Seek Reimbursement from the State of California for
Any Costs Associated with Senate Bill 1316 or Any of the Activities
Authorized or Mandated Therein;"
2) Adopt Resolution 08-015 "Resolution of the Riverside County Transportation
Commission Certifying that Upon Enactment of Assembly Bill 1954, the
Commission Shall Not Seek Reimbursement from the State of California for
Any costs Associated with Assembly Bill 1954 or Any of the Activities
Authorized or Mandated Therein;" and
3) Forward to the California State Legislature.
BACKGROUND INFORMATION:
Two days ago, the Senate Appropriations Committee referred Commission -
sponsored Senate Bill 1316 (Correa) to the "suspense" file. This action was in
response to analysis by Senate staff that identified upwards of $100,000 of state -
mandated costs imposed upon the Commission contained in the bill. These costs
are associated with the requirement for a reconstituted State Route 91 Advisory
Committee to oversee the operation of the toll facilities on each side of the
Riverside -Orange County line, and also for an annual audit of toll revenue and
expenditures. These "mandates" have been voluntarily sought by the Commission;
however, the Commission could potentially seek reimbursement from the State for
the costs in incurs as a result of the advisory committee and the annual audit. The
role of the Appropriations Committee is to screen legislation for fiscal impacts to
the state; given California's budget deficit, there is a low threshold for bills that
have the potential to impose new costs on the state.
Senate Appropriations Committee staff has recommended the Commission and
Orange County Transportation Authority (OCTA) adopt resolutions declaring their
intent to not seek reimbursement from the state related to costs imposed by
SB 1316. The OCTA Board of Directors already adopted a similar resolution this
week. Additionally, Appropriations Committee staff recommends SB 1316 be
amended with standard language that prohibits the Commission or OCTA from
being reimbursed with state funds for any costs related to the bill.
The Commission's other sponsored legislation, AB 1954 (Jeffries) for Interstate 15
high occupancy toll (HOT) lanes, is in the Assembly Appropriations Committee
"suspense" file. However, that bill does not contain any potential reimbursable
state mandates at this time. In anticipation of the possibility that AB 1954 may be
amended in the future with a similar framework as SB 1316, staff is recommending
that the Commission proactively adopt a similar resolution for AB 1954 that
declares the Commission's intent to not seek state reimbursement related to the
legislation.
The urgency of this item is related to the legislative deadline that Appropriations
committees in the Senate and Assembly report all of their bills to the floor by
May 23. The need for the resolutions developed Monday, and this Commission
meeting provides the last opportunity for the Commission to declare its intent to
the legislature with regard to this aspect of these bills. SB 1316 can be removed
from the suspense file and heard on the Senate floor if state -mandated
reimbursable cost concerns are addressed within the legislative deadlines.
Attachments:
1) Resolution 08-014
2) Resolution 08-015
RESOLUTION 08-014
RESOLUTION OF THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION
CERTIFYING THAT UPON ENACTMENT OF SENATE BILL 1316, THE COMMISSION
SHALL NOT SEEK REIMBURSEMENT FROM THE STATE OF CALIFORNIA FOR ANY
COSTS ASSOCIATED WITH SENATE BILL 1316
OR ANY OF THE ACTIVITIES AUTHORIZED OR MANDATED THEREIN
WHEREAS, the Riverside County Transportation Commission (RCTC) has requested
Senator Lou Correa to introduce Senate Bill 1316;
WHEREAS, Senate Bill 1316 would allow the Commission to implement an extension
of the SR-91 Express Lanes, consistent with Commission policy, in addition to capital
improvements promised to Riverside County voters in Measure A;
WHEREAS, the SR-91 Express Lanes extension will be operated in cooperation with the
Orange County Transportation Authority (OCTA);
WHEREAS, the Commission currently participates in the SR-91 Advisory Committee
mandated by state law;
WHEREAS, Senate Bill 1316 requires a reconstituted advisory committee;
WHEREAS, the Commission has not sought reimbursement from the State of California
for costs associated with the current advisory committee;
WHEREAS, the estimated annual cost to the Commission of operating the SR-91
Advisory Committee is less than $7,000;
WHEREAS, Per Senate Bill 1316 the Commission's toll revenues and expenditures be
audited on an annual basis;
NOW THEREFORE, BE IT RESOLVED, upon enactment of Senate Bill 1316, the
Commission shall not seek reimbursement from the State of California for costs
associated with Senate Bill 1316 or any of the activities authorized or mandated
therein.
APPROVED AND ADOPTED by the Riverside County Transportation Commission at its
meeting on Wednesday, May 14, 2008.
ATTEST:
BY:
By:
Jeff Stone, Chair
Riverside County Transportation Commission
Jennifer Harmon
Clerk of the Board
RESOLUTION 08-015
RESOLUTION OF THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION
CERTIFYING THAT UPON ENACTMENT OF ASSEMBLY BILL 1954, THE COMMISSION
SHALL NOT SEEK REIMBURSEMENT FROM THE STATE OF CALIFORNIA FOR
ANY COSTS ASSOCIATED WITH ASSEMBLY BILL 1954
OR ANY OF THE ACTIVITIES AUTHORIZED OR MANDATED THEREIN
WHEREAS, the Riverside County Transportation Commission (RCTC) has requested
that Assemblyman Kevin Jeffries introduce Assembly Bill 1954;
WHEREAS, Assembly Bill 1954 would allow the Commission to implement high -
occupancy toll (HOT) lanes in the median of Interstate 15, consistent with Commission
policy, in addition to capital improvements promised to Riverside County voters in
Measure "A";
WHEREAS, the Interstate 15 HOT lanes will be operated in cooperation with the
California Department of Transportation ("Ca!trans") and the California Highway Patrol
(CHP);
WHEREAS, prior to enactment of the bill, the California Legislature might amend
Assembly Bill 1954 to mandate the Commission carry out certain activities that would
create a reimbursable state mandate;
WHEREAS, the Commission has not sought reimbursement from the State of California
for costs associated with current state mandates regarding toll lanes;
NOW THEREFORE, BE IT RESOLVED, upon enactment of Assembly Bill 1954, the
Commission shall not seek reimbursement from the State of California for costs
associated with Assembly Bill 1954 or any of the activities authorized or mandated
therein.
APPROVED AND ADOPTED by the Riverside County Transportation Commission at its
meeting on Wednesday, May 14, 2008.
ATTEST:
BY:
By:
Jeff Stone, Chair
Riverside County Transportation Commission
Jennifer Harmon
Clerk of the Board